7.__Reimbursement increases.__The rules of reimbursement for residential care facilities must:

A.__Recognize and reimburse as fixed costs all necessary and proper costs of liability, malpractice and other insurance;

B.__Reflect a statewide increase in reimbursement for direct care costs in an amount that represents an increase relative to reimbursement in effect on June 30, 2002 of not less than the difference between $1,000,000 and the aggregate statewide increase provided in section 1708, subsection 3-A, paragraph A; and

C.__Upon request of a facility and a showing that there have been unusual increases in particular elements in the fixed cost component, require an adjustment in that facility's interim payments.__This paragraph applies to fixed cost component elements, including without limitation liability insurance.

Notwithstanding any other provisions of this section, rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 3. 36 MRSA §2871, sub-§2, as enacted by PL 2001, c. 714, Pt. CC, §3 and affected by §8, is amended to read:

2. Annual net operating revenue. "Annual net operating revenue" means gross charges less any amounts allowable recorded as bad debts, charity care or payer discounts.

Sec. 4. 36 MRSA §2871, sub-§3, as enacted by PL 2001, c. 714, Pt. CC, §3 and affected by §8, is repealed.

Sec. 5. 36 MRSA §2871, sub-§3-A is enacted to read:

3-A.__Facility fiscal year.__"Facility fiscal year" means the fiscal year actually used by a person subject to this chapter in keeping that person's books and records.

Sec. 6. 36 MRSA §2871, sub-§6-A is enacted to read:

6-A.__State fiscal year.__"State fiscal year" means the uniform fiscal year established pursuant to Title 5, section 1501 for all financing and reporting of state government expenditures.