The Fair Funding for Vulnerable Residents Act establishes a requirement for providers of services to adults or children with intellectual or developmental disabilities to allocate at least 70 percent of their aggregate revenue from State and federal sources towards the direct care of residents. This legislation aims to ensure that sufficient funding is dedicated to direct care, addressing concerns that some providers may not be adequately allocating resources for essential services. Providers are mandated to report their total revenues and expenditures related to direct care to the Department of Human Services (DHS) annually by October 31, with these reports made publicly available on the DHS and the Office of the Ombudsman for Individuals with Intellectual or Developmental Disabilities and Their Families' websites.

In cases where a provider fails to meet the direct care ratio requirement, they must issue a credit to the State to rectify the shortfall, ensuring that at least 70 percent of their revenue is ultimately spent on direct care. The bill also empowers the Commissioner of Human Services to conduct audits of the reported information to verify compliance and recover any necessary credits. Additionally, the commissioner is tasked with coordinating with relevant State entities to implement the provisions of the act effectively. The bill is designed to enhance accountability and transparency in the funding of services for vulnerable residents, ensuring that their care needs are prioritized.