CONTRACT ADJUSTMENTS UNDER PROCUREMENT CODE

HB 119 requires state agencies to adjust contracts and reimbursement rates when state laws change employee compensation or benefits for certain contractors. It directly affects state contractors (Section 1) and Medicaid/Medicare healthcare providers (Sections 2-3), allowing them to request contract amendments or federal reimbursement adjustments within 45 days of relevant state law changes. The bill mandates that state agencies formally request these rate changes from federal authorities to cover increased provider costs. This creates a procedural mechanism for healthcare providers and contractors to seek fair reimbursement without requiring new state funding.