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 spent on the direct care of residents. Providers are required to report their total revenues and expenditures related to direct care to the Department of Human Services by October 31 each year. If a provider fails to meet the direct care ratio requirement, they must issue a credit to the State to ensure compliance, with all credits to be fully issued by June 30 of the following fiscal year.

Additionally, the bill allows the Commissioner of Human Services or a designated entity to audit 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 allocated for the direct care of individuals with intellectual or developmental disabilities, addressing concerns that some providers may not be dedicating adequate financial resources to this essential service.