Senate Bill No. 1547 aims to establish annual inflationary increases for rates paid to nonprofit human services providers that contract with the state. The bill defines a "nonprofit human services provider" as organizations that offer services for individuals with physical, intellectual, or developmental disabilities, including autism spectrum disorder, as well as behavioral health services. It mandates that state agencies increase salary or payment rates for employees of these providers by July 1 each year, based on the percentage increase in the consumer price index (CPI) for urban wage earners and clerical workers from the previous calendar year. Additionally, the Commissioner of Social Services is required to adjust Medicaid rates for these providers in accordance with the same CPI increase, unless restricted by federal law.

Furthermore, the bill requires the Secretary of the Office of Policy and Management to file a report every two years, starting January 1, 2026, detailing the appropriations needed to ensure that future contracts include the mandated increases. The fiscal impact of the bill is significant, with estimated costs of approximately $60 million in FY 26 and FY 27, alongside a corresponding federal revenue increase of about $17.2 million. The bill is effective upon passage and includes new legal language regarding the CPI adjustments and reporting requirements, while no deletions from current law are specified.