40-8-3. Eligibility requirements.

(i) Is a resident of this state; and

(ii) Is not receiving public assistance under the provisions of § 40-5.1-9(b) [repealed] or §

1 40-6-27; and

(iii) Is not an inmate of a public institution other than as a patient in a medical institution;

and

(iv) Is not a patient in an institution for tuberculosis or mental disease, unless the person

has attained the age of sixty-five (65) years; provided, however, that this clause shall become void

and of no effect if and when legislation enacted by the Congress of the United States shall become

effective providing for payments for medical care on behalf of persons who have not attained the

age of sixty-five (65) years who are patients in an institution for tuberculosis or mental disease; and

(v) Has insufficient income and resources. The department shall establish income and

resource rules, regulations, and limits in accordance with Title XIX of the federal Social Security

Act, 42 U.S.C. § 1396 et seq., as applicable to the medically needy only applicants and recipients.

The income limits established by the department must be more than the AFDC standard in effect

on July 16, 1996, under the Rhode Island state plan approved under part A of Title IV of the federal

Social Security Act, 42 U.S.C. § 601 et seq., but shall not be more than one hundred thirty-three

and one-third percent (133⅓%) of the AFDC standard in effect on July 16, 1996, under the Rhode

Island state plan approved under part A of Title IV of the federal Social Security Act; provided,

however, that subject to the maximum percentage increase allowable under § 1931(b)(2)(B), the

department shall increase the income limits on July 1, 1999, by six and six-tenths percent (6.6%),

and on January 1, of each year commencing in the year 2000 by a percentage equal to the annual

federal adjustment percentage as determined under the provisions of Title XVI of the federal Social

Security Act, 42 U.S.C. § 1381 et seq. The department shall establish resource limits equal to two

thousand dollars ($2,000) eight thousand dollars ($8,000) for an individual and three thousand

dollars ($3,000) twelve thousand dollars ($12,000) for a family. Provided, however, the department

shall apply to the United States Department of Health and Human Services for a waiver relating to

application of the reduced resource limit, and subject to the granting of the waiver by the Secretary

of the United States Department of Health and Human Services, the resource limit shall be applied

to all applicants who: (A) Become eligible for benefits under this chapter on or after the effective

date of this amendment and (B) Who were not receiving benefits under this chapter prior to July 1,

1993. In the event the secretary does not approve the waiver request, the current department

regulations relating to resource limits shall remain in effect for all eligible beneficiaries.

For the purposes of this subsection, a vehicle necessary to transport a family member with

a disability, where the vehicle is specially equipped to meet the specific needs of the person with a

disability or if the vehicle is a special type of vehicle that makes it possible to transport the person

with the disability, shall not be counted as resources of the applicants and recipients.

SECTION 3. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled

"Uncompensated Care" are hereby amended to read as follows: