This bill establishes a direct care ratio requirement for providers licensed by the State, specifically those offering services to adults or children with intellectual or developmental disabilities. It mandates that at least 70 percent of a provider's aggregate revenue from State and federal sources in a given fiscal year must be allocated to the direct care of residents. To ensure compliance, providers are required to report their total revenues and expenditures to the Department of Human Services by October 31 each year. The Commissioner of Human Services will analyze this data to determine the direct care ratio and, if a provider fails to meet the requirement, they must issue a credit to the State to rectify the shortfall.

Additionally, the bill empowers the Commissioner or a designated entity to conduct audits of the reported information to verify accuracy and compliance with the direct care ratio requirement. The Commissioner is also tasked with coordinating with relevant State entities to implement these provisions effectively. The bill aims to ensure that sufficient funding is directed towards the essential direct care of individuals with intellectual or developmental disabilities, addressing concerns that some providers may not be allocating adequate resources for this purpose.