§ 368-e. Reimbursement to counties for pre-school children with
handicapping conditions. 1. The department of health shall review claims
for expenditures made by counties and the city of New York for medical
care, services and supplies which are furnished to preschool children
with handicapping conditions or such preschool children suspected of
having handicapping conditions, as such children are defined in the
education law. If approved by the department, payment for such medical
care, services and supplies which would otherwise qualify for
reimbursement under this title and which are furnished in accordance
with this title and the regulations of the department to such children,
shall be made in accordance with the department's approved medical
assistance fee schedules by payment to such county or city which
furnished the care, services or supplies either directly or by contract.
Notwithstanding any provisions of law, rule or regulation to the
contrary, any clinic or diagnostic and treatment center licensed under
article twenty-eight of the public health law, which as determined by
the state education department, in conjunction with the department of
health, has a less than arms length relationship with the provider
approved under section forty-four hundred ten of the education law
shall, subject to the approval of the department and based on standards
developed by the department, be authorized to directly submit such
claims for medical assistance, services or supplies so furnished for any
period beginning on or after July first, nineteen hundred ninety-seven.
The actual full cost of the individualized education program (IEP)
related services incurred by the clinic shall be reported on the New
York State Consolidated Fiscal Report in the education law section
forty-four hundred ten program cost center in which the student is
placed and the associated medical assistance revenue shall be reported
in the same manner.

2. Claims for payment under this section shall be made in such form
and manner, at such times, and for such periods as the department may
require.

3. The commissioner of health is authorized to contract with one or
more entities to conduct a study to determine actual direct and indirect
costs incurred by counties for medical care, services and supplies,
including related special education services and special transportation,
furnished to pre-school children with handicapping conditions.

4. Notwithstanding any inconsistent provision of sections one hundred
twelve and one hundred sixty-three of the state finance law, or section
one hundred forty-two of the economic development law, or any other law,
the commissioner of health is authorized to enter into a contract or
contracts under subdivision three of this section without a competitive
bid or request for proposal process, provided, however, that:

(a) The department of health shall post on its website, for a period
of no less than thirty days:

(i) A description of the proposed services to be provided pursuant to
the contract or contracts;

(ii) The criteria for selection of a contractor or contractors;

(iii) The period of time during which a prospective contractor may
seek selection, which shall be no less than thirty days after such
information is first posted on the website; and

(iv) The manner by which a prospective contractor may seek such
selection, which may include submission by electronic means;

(b) All reasonable and responsive submissions that are received from
prospective contractors in timely fashion shall be reviewed by the
commissioner of health; and

(c) The commissioner of health shall select such contractor or
contractors that, in his or her discretion, are best suited to serve the
purposes of this section.

(d) Upon selection of a contractor or contractors, the department of
health shall provide written notification of such selection and a
summary of the criteria employed in such selection to the chair of the
senate finance committee and the chair of the assembly ways and means
committee.

5. The commissioner shall evaluate the results of the study conducted
pursuant to subdivision three of this section to determine, after
identification of actual direct and indirect costs incurred by counties
for medical care, services, and supplies furnished to pre-school
children with handicapping conditions, whether it is advisable to claim
federal reimbursement for expenditures under this section as certified
public expenditures. In the event such claims are submitted, if federal
reimbursement received for certified public expenditures on behalf of
medical assistance recipients whose assistance and care are the
responsibility of a social services district, results in a decrease in
the state share of annual expenditures pursuant to this section for such
recipients, then to the extent that the amount of any such decrease when
combined with any decrease in the state share of annual expenditures
described in subdivision six of section three hundred sixty-eight-d of
this title exceeds one hundred fifty million dollars for the period
April 1, 2011 through March 31, 2013, or exceeds one hundred million
dollars in state fiscal years 2013-14 and 2014-15, the excess amount
shall be transferred to such counties in amounts proportional to their
percentage contribution to the statewide savings; an amount equal to
thirteen and five hundredths percent of any decrease in the state share
of annual expenditures pursuant to this section for such recipients in
state fiscal year 2015-16 and any fiscal year thereafter shall be
transferred to such counties in amounts proportional to their percentage
contribution to the statewide savings. Any amount transferred pursuant
to this section shall not be considered a revenue received by such
social services district in determining the district's actual medical
assistance expenditures for purposes of paragraph (b) of section one of
part C of chapter fifty-eight of the laws of two thousand five.

The provisions of this section shall be of no force and effect unless
all necessary approvals under federal law and regulation have been
obtained to receive federal financial participation in the costs of
health care services provided pursuant to this section.