Authority: Title 30, Chapters 7 and 8, Code of Virginia.

A. Out of the amounts for Performance Audits and Evaluation shall be paid the annual salary of the Director, Joint Legislative Audit and Review Commission (JLARC), $138,358 from July 1, 2004, to November 24, 2004, $142,509 from November 25, 2004, to November 24, 2005, and $148,779 from November 25, 2005, to June 30, 2006.

B. JLARC, upon request of the Department of Planning and Budget and approval of the Chairman, shall review and provide comments to the Department on its use of performance measures in the State budget process. The Commission staff shall review the methodology and proposed uses of such performance measures and provide periodic status reports to the Commission.

C. Expenses associated with the oversight responsibility of the Virginia Retirement System by JLARC and the House Appropriations and Senate Finance Committees shall be reimbursed by the Virginia Retirement System upon documentation by the Director of JLARC of the expenses incurred.

D. Out of this appropriation, funds are provided to expand the technical support staff of the Joint Legislative Audit and Review Commission, in order to assist with legislative fiscal impact analysis when an impact statement is referred from the Chairman of a standing committee of the House or Senate, and to conduct oversight of the expenditure forecasting process. Pursuant to existing statutory authority, all agencies of the Commonwealth shall provide access to information necessary to accomplish these duties.

E. The Joint Legislative Audit and Review Commission (JLARC) shall report on the adequacy of Virginia's Medicaid reimbursement rates to health care providers. The review shall include an examination of the impact of reimbursement levels on access to care for the Medicaid recipient population. This review shall cover home and community-based care providers. The Department of Medical Assistance Services shall cooperate fully as requested by JLARC and its staff. JLARC shall report its findings and recommendations by November 1, 2005.

F. The Joint Legislative Audit and Review Commission (JLARC) shall report on the impact of new assisted living regulations on the cost of providing services, residents' access to providers and other services, including Medicaid-funded mental health and other services, and tangible improvements in the quality of care delivered. The Department of Social Services, the Department of Mental Health, Mental Retardation, and Substance Abuse Services, and the Department of Medical Assistance Services shall cooperate fully as requested by JLARC and its staff. JLARC shall submit an interim report by November 1, 2005 and a final report by June 30, 2006.