PART III

Sec. III-1. Transfer from Other Special Revenue Funds to unappropriated surplus of General Fund. Notwithstanding any other provision of law, the State Controller shall transfer $42,500,000 in fiscal year 2005-06 from Other Special Revenue Funds to the unappropriated surplus of the General Fund no later than June 30, 2006. On July 1, 2006, the State Controller shall transfer $42,500,000 from the General Fund unappropriated surplus along with interest to Other Special Revenue Funds as repayment. This transfer is considered an inter-fund advance to be repaid with interest compounded annually at the earnings rate within the Treasurer of State's cash pool on the date of the advance.

PART JJJ

Sec. JJJ-1. 22 MRSA §3174-II is enacted to read:

§3174-II.__MaineCare Stabilization Fund

1.__Fund established.__The MaineCare Stabilization Fund, referred to in this section as "the fund," is established as an Other Special Revenue Funds account for the purposes specified in this section.

2.__Nonlapsing.__Any unexpended balances in the fund may not lapse but must be carried forward.

3.__Fund purposes.__Allocations from the fund must prevent any loss of services or increased cost of services to a MaineCare member or a person receiving benefits under the elderly low-cost drug program under section 254 that would otherwise result from insufficient General Fund appropriations, insufficient federal matching funds or any other shortage of funds, changes in federal or state law, rule or policy or the implementation of the federal Medicare Prescription Drug, Improvement, and Modernization Act of 2003.

4.__Report by State Controller.__The State Controller shall report at least annually on the fund on or before the 2nd Friday in November to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature having jurisdiction over health and human services matters.__The report must summarize the status of and activity in the fund.