Senate Bill sb1698c1

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    Florida Senate - 2004                           CS for SB 1698

    By the Committee on Banking and Insurance; and Senator Lynn





    311-2244-04

  1                      A bill to be entitled

  2         An act relating to foster care services;

  3         amending s. 20.19, F.S.; prohibiting certain

  4         members of a community alliance from receiving

  5         funds from the Department of Children and

  6         Family Services or a community-based lead

  7         agency; amending s. 409.1671, F.S.; revising

  8         requirements for the department's quality

  9         assurance program for privatized services;

10         requiring the Department of Children and Family

11         Services to develop a proposal for the use of a

12         risk pool for community-based providers that

13         provide foster care and related services under

14         contract with the department; specifying

15         proposal requirements; extending a proposal

16         submission deadline; requiring the department

17         to submit a detailed operational plan prior to

18         the release of funds; removing limitations on

19         the distribution program; providing an

20         exemption from state travel policies for

21         community-based providers and subcontractors;

22         providing effective dates.

23  

24  Be It Enacted by the Legislature of the State of Florida:

25  

26         Section 1.  Subsection (6) of section 20.19, Florida

27  Statutes, is amended to read:

28         20.19  Department of Children and Family

29  Services.--There is created a Department of Children and

30  Family Services.

31         (6)  COMMUNITY ALLIANCES.--

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    Florida Senate - 2004                           CS for SB 1698
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 1         (a)  The department shall, in consultation with local

 2  communities, establish a community alliance of the

 3  stakeholders, community leaders, client representatives and

 4  funders of human services in each county to provide a focal

 5  point for community participation and governance of

 6  community-based services.  An alliance may cover more than one

 7  county when such arrangement is determined to provide for more

 8  effective representation.  The community alliance shall

 9  represent the diversity of the community.

10         (b)  The duties of the community alliance shall

11  include, but not necessarily be limited to:

12         1.  Joint planning for resource utilization in the

13  community, including resources appropriated to the department

14  and any funds that local funding sources choose to provide.

15         2.  Needs assessment and establishment of community

16  priorities for service delivery.

17         3.  Determining community outcome goals to supplement

18  state-required outcomes.

19         4.  Serving as a catalyst for community resource

20  development.

21         5.  Providing for community education and advocacy on

22  issues related to delivery of services.

23         6.  Promoting prevention and early intervention

24  services.

25         (c)  The department shall ensure, to the greatest

26  extent possible, that the formation of each community alliance

27  builds on the strengths of the existing community human

28  services infrastructure.

29         (d)  The initial membership of the community alliance

30  in a county shall be composed of the following:

31         1.  The district administrator.

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    Florida Senate - 2004                           CS for SB 1698
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 1         2.  A representative from county government.

 2         3.  A representative from the school district.

 3         4.  A representative from the county United Way.

 4         5.  A representative from the county sheriff's office.

 5         6.  A representative from the circuit court

 6  corresponding to the county.

 7         7.  A representative from the county children's board,

 8  if one exists.

 9         (e)  At any time after the initial meeting of the

10  community alliance, the community alliance shall adopt bylaws

11  and may increase the membership of the alliance to include the

12  state attorney for the judicial circuit in which the community

13  alliance is located, or his or her designee, the public

14  defender for the judicial circuit in which the community

15  alliance is located, or his or her designee, and other

16  individuals and organizations who represent funding

17  organizations, are community leaders, have knowledge of

18  community-based service issues, or otherwise represent

19  perspectives that will enable them to accomplish the duties

20  listed in paragraph (b), if, in the judgment of the alliance,

21  such change is necessary to adequately represent the diversity

22  of the population within the community alliance service

23  districts.

24         (f)  A member of the community alliance, other than a

25  member specified in paragraph (d), may not receive payment for

26  contractual services from the department or a community-based

27  care lead agency.

28         (g)(f)  Members of the community alliances shall serve

29  without compensation, but are entitled to receive

30  reimbursement for per diem and travel expenses, as provided in

31  s. 112.061. Payment may also be authorized for preapproved

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    Florida Senate - 2004                           CS for SB 1698
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 1  child care expenses or lost wages for members who are

 2  consumers of the department's services and for preapproved

 3  child care expenses for other members who demonstrate

 4  hardship.

 5         (h)(g)  Members of a community alliance are subject to

 6  the provisions of part III of chapter 112, the Code of Ethics

 7  for Public Officers and Employees.

 8         (i)(h)  Actions taken by a community alliance must be

 9  consistent with department policy and state and federal laws,

10  rules, and regulations.

11         (j)(i)  Alliance members shall annually submit a

12  disclosure statement of services interests to the department's

13  inspector general. Any member who has an interest in a matter

14  under consideration by the alliance must abstain from voting

15  on that matter.

16         (k)(j)  All alliance meetings are open to the public

17  pursuant to s. 286.011 and the public records provision of s.

18  119.07(1).

19         Section 2.  Subsections (4), (7), and (8) of section

20  409.1671, Florida Statutes, as amended by section 27 of

21  chapter 2003-399, Laws of Florida, are amended, and subsection

22  (10) is added to that section, to read:

23         409.1671  Foster care and related services;

24  privatization.--

25         (4)(a)  The department, in consultation with the

26  community-based agencies that are undertaking the privatized

27  projects, shall establish a quality assurance program for

28  privatized services. The quality assurance program shall be

29  based on standards established by the Adoption and Safe

30  Families Act as well as by a national accrediting organization

31  such as the Council on Accreditation of Services for Families

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    Florida Senate - 2004                           CS for SB 1698
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 1  and Children, Inc. (COA) or CARF--the Rehabilitation

 2  Accreditation Commission. The department may develop a request

 3  for proposal for such oversight. This program must be

 4  developed and administered at a statewide level. The

 5  Legislature intends that the department be permitted to have

 6  limited flexibility to use funds for improving quality

 7  assurance. To this end, the department may transfer up to

 8  0.125 percent of the total funds from categories used to pay

 9  for these contractually provided services, but the total

10  amount of such transferred funds may not exceed $300,000 in

11  any fiscal year. When necessary, the department may establish,

12  in accordance with s. 216.177, additional positions that will

13  be exclusively devoted to these functions. Any positions

14  required under this paragraph may be established,

15  notwithstanding ss. 216.262(1)(a) and 216.351. The department,

16  in consultation with the community-based agencies that are

17  undertaking the privatized projects, shall establish minimum

18  thresholds for each component of service, consistent with

19  standards established by the Legislature and the Federal

20  Government. Each program operated under contract with a

21  community-based agency must be evaluated annually by the

22  department. The department shall, to the extent possible, use

23  independent financial audits provided by the community-based

24  care agency to eliminate or reduce the ongoing contract and

25  administrative reviews conducted by the department. The

26  department may suggest additional items to be included in such

27  independent financial audits to meet the department's needs.

28  Should the department determine that such independent

29  financial audits are inadequate, then other audits, as

30  necessary, may be conducted by the department. Nothing herein

31  shall abrogate the requirements of s. 215.97. The department

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    Florida Senate - 2004                           CS for SB 1698
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 1  shall submit an annual report regarding quality performance,

 2  outcome measure attainment, and cost efficiency to the

 3  President of the Senate, the Speaker of the House of

 4  Representatives, the minority leader of each house of the

 5  Legislature, and the Governor no later than January 31 of each

 6  year for each project in operation during the preceding fiscal

 7  year.

 8         (b)  The department shall use these findings in making

 9  recommendations to the Governor and the Legislature for future

10  program and funding priorities in the child welfare system.

11         (7)  The department, in consultation with existing lead

12  agencies, shall develop a proposal regarding the long-term use

13  and structure of a statewide community-based care risk pool

14  for the protection of shared earnings program which addresses

15  the financial risk to eligible lead community-based providers

16  that contract directly with the department for the delivery of

17  foster care and related services resulting from unanticipated

18  caseload growth or from significant changes in client mixes or

19  services eligible for federal reimbursement. The

20  recommendations in the statewide proposal must also be

21  available to entities of the department until the conversion

22  to community-based care takes place. At a minimum, the

23  proposal must allow for use of federal earnings received from

24  child welfare programs, which earnings are determined by the

25  department to be in excess of the amount appropriated in the

26  General Appropriations Act, to be used for specific purposes.

27  The proposal must specify the necessary steps to ensure the

28  financial integrity of the risk program and the continued

29  availability of funding from federal, state, and local

30  sources. The proposal must also include recommendations that

31  permit the program to be available to entities of the

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    Florida Senate - 2004                           CS for SB 1698
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 1  department providing child welfare services until full

 2  conversion to community-based care takes place. The final

 3  proposal shall be submitted to the Legislative Budget

 4  Commission for formal adoption before October 1, 2004. If the

 5  Legislative Budget Commission refuses to concur with the

 6  adoption of the proposal, the department shall present its

 7  proposal in the form of recommended legislation to the

 8  President of the Senate and the Speaker of the House of

 9  Representatives before the commencement of the next

10  legislative session.

11         (a)  The These purposes for which the risk pool shall

12  be used include, but are not limited to:

13         1.(a)  Significant changes in the number or composition

14  of clients eligible to receive services.

15         2.(b)  Significant changes in the services that are

16  eligible for reimbursement.

17         3.(c)  Significant changes in the availability of

18  federal funds.

19         4.(d)  Shortfalls in state funds available for eligible

20  or ineligible services.

21         5.(e)  Significant changes in the mix of available

22  funds.

23         6.(f)  Scheduled or unanticipated, but necessary,

24  advances to providers or other cash-flow issues.

25         7.(g)  Proposals to participate in optional Medicaid

26  services or other federal grant opportunities.

27         8.(h)  Appropriate incentive structures.

28         9.(i)  Continuity of care in the event of lead agency

29  failure, discontinuance of service, or financial misconduct.

30  

31  

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    Florida Senate - 2004                           CS for SB 1698
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 1         10.  Payment for time-limited technical assistance and

 2  consultation to lead agencies in the event of serious

 3  performance or management problems.

 4  

 5  The department shall further specify the necessary steps to

 6  ensure the financial integrity of these dollars and their

 7  continued availability on an ongoing basis. The final proposal

 8  shall be submitted to the Legislative Budget Commission for

 9  formal adoption before December 31, 2002. If the Legislative

10  Budget Commission refuses to concur with the adoption of the

11  proposal, the department shall present its proposal in the

12  form of recommended legislation to the President of the Senate

13  and the Speaker of the House of Representatives before the

14  commencement of the next legislative session.

15         (b)  For fiscal year 2004-2005 2003-2004 and annually

16  thereafter, the Department of Children and Family Services may

17  also request in its annual legislative budget request, and the

18  Governor may recommend, that the funding necessary to carry

19  out paragraph (a) be (i) from excess federal earnings. The

20  General Appropriations Act shall include any funds

21  appropriated to the department. Prior to the release of such

22  funds, the department shall submit a detailed operational

23  plan, which must identify the sources of specific funds to be

24  used and the reasons justifying their use. The release of

25  these funds shall be subject to the notice and review

26  provisions of s. 216.177, but shall not require the approval

27  of the Legislative Budget Commission.

28         1.  Such for this purpose in a lump sum in the

29  Administered Funds Program, which funds shall constitute

30  partial security for lead agency contract performance and

31  shall be used. The department shall use this appropriation to

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    Florida Senate - 2004                           CS for SB 1698
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 1  offset the need for a performance bond for that year after a

 2  comparison of risk to the funds available. In no event shall

 3  this performance bond exceed 2.5 percent of the annual

 4  contract value.

 5         2.  The department may separately require a bond to

 6  mitigate the financial consequences of potential acts of

 7  malfeasance, misfeasance, or criminal violations by the

 8  provider. Prior to the release of any funds in the lump sum,

 9  the department shall submit a detailed operational plan, which

10  must identify the sources of specific trust funds to be used.

11  The release of the trust fund shall be subject to the notice

12  and review provisions of s. 216.177. However, the release

13  shall not require approval of the Legislative Budget

14  Commission.

15         (8)  Notwithstanding the provisions of s. 215.425, all

16  documented federal funds earned for the current fiscal year by

17  the department and community-based agencies which exceed the

18  amount appropriated by the Legislature shall be distributed to

19  all entities that contributed to the excess earnings based on

20  a schedule and methodology developed by the department and

21  approved by the Executive Office of the Governor. Distribution

22  shall be pro rata based on total earnings and shall be made

23  only to those entities that contributed to excess earnings.

24  Excess earnings of community-based agencies shall be used only

25  in the service district in which they were earned. Additional

26  state funds appropriated by the Legislature for

27  community-based agencies or made available pursuant to the

28  budgetary amendment process described in s. 216.177 shall be

29  transferred to the community-based agencies. The department

30  shall amend a community-based agency's contract to permit

31  expenditure of the funds. The distribution program applies

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    Florida Senate - 2004                           CS for SB 1698
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 1  only to entities that were under privatization contracts as of

 2  July 1, 2002.

 3         (10)  The lead community-based providers and their

 4  subcontractors shall be exempt from state travel policies as

 5  set forth in s. 112.061(3)(a) for their travel expenses

 6  incurred in order to comply with the requirements of this

 7  section.

 8         Section 3.  This act shall take effect July 1, 2004.

 9  

10          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
11                         Senate Bill 1698

12                                 

13  Adds a purpose for the use of funds from the risk pool to
    include payment for time-limited technical assistance and
14  consultation to lead agencies in the event of serious
    performance or management problems.
15  
    Provides that lead community-based providers and their
16  subcontractors are exempt from the requirements of s.
    112.061(3)(a), F.S., that all travel must be authorized and
17  approved by the agency.

18  Amends s. 20.19, F.S., to provide that members of a community
    alliance, other than the statutorily mandated members, may not
19  receive funds for contractual services from either the
    Department of Children and Family Services (DCF)  or a
20  community-based care lead agency.

21  Deletes the provision of current law that allows only those
    entities that were under privatization contracts as of July 1,
22  2002, from being eligible to receive any additional state
    funds.
23  
    Deletes legislative intent that the DCF be permitted to have
24  limited flexibility to use funds for improving quality
    assurance and provisions which limit the percentage and dollar
25  amount of total funds that may be transferred from categories
    used to pay for these contractually provided services.
26  

27  

28  

29  

30  

31  

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