HB 0723 2004
1	A bill to be entitled
2	An act relating to foster care services; amending s.
3	409.1671, F.S.; revising provisions requiring the
4	Department of Children and Family Services to develop a
5	proposal for the use of community-based providers to
6	include foster care and related services; specifying
7	proposal requirements; extending a proposal submission
8	deadline; requiring the department to submit a detailed
9	operational plan prior to the release of funds;
10	authorizing use of a letter of credit in lieu of a bond
11	requirement; providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1. Subsection (7) of section 409.1671, Florida
16	Statutes, is amended to read:
17	409.1671 Foster care and related services; privatization.-
18	-
19	(7) The department, in consultation with existing lead
20	agencies, shall develop a proposal regarding the long-term use
21	and structure of a statewide shared earnings program which
22	addresses the financial risk program for the protection of to
23	eligible lead community-based providers who contract directly
24	with the department for the delivery of foster care and related
25	services resulting from unanticipated caseload growth or from
26	significant changes in client mixes or services eligible for
27	federal reimbursement. The recommendations in the statewide
28	proposal must also be available to entities of the department
29	until the conversion to community-based care takes place. At a
30	minimum, the proposal must allow for use of federal earnings
31	received from child welfare programs, which earnings are
32	determined by the department to be in excess of the amount
33	appropriated in the General Appropriations Act, to be used for
34	specific purposes. The proposal must specify the necessary steps
35	to ensure the financial integrity of the risk program and the
36	continued availability of funding from federal, state, and local
37	sources. The proposal must also include recommendations that
38	permit the program to be available to entities of the department
39	providing child welfare services until full conversion to
40	community-based care takes place. The final proposal shall be
41	submitted to the Legislative Budget Commission for formal
42	adoption before October 1, 2004. If the Legislative Budget
43	Commission refuses to concur with the adoption of the proposal,
44	the department shall present its proposal in the form of
45	recommended legislation to the President of the Senate and the
46	Speaker of the House of Representatives before the commencement
47	of the next legislative session.
48	(a) The These purposes for which the risk program shall be
49	used include, but are not limited to:
50	1.(a)Significant changes in the number or composition of
51	clients eligible to receive services.
52	2.(b)Significant changes in the services that are
53	eligible for reimbursement.
54	3.(c)Significant changes in the availability of federal
55	funds.
56	4.(d)Shortfalls in state funds available for eligible or
57	ineligible services.
58	5.(e)Significant changes in the mix of available funds.
59	6.(f)Scheduled or unanticipated, but necessary, advances
60	to providers or other cash-flow issues.
61	7.(g)Proposals to participate in optional Medicaid
62	services or other federal grant opportunities.
63	8.(h)Appropriate incentive structures.
64	9.(i)Continuity of care in the event of lead agency
65	failure, discontinuance of service, or financial misconduct.
66
67	The department shall further specify the necessary steps to
68	ensure the financial integrity of these dollars and their
69	continued availability on an ongoing basis. The final proposal
70	shall be submitted to the Legislative Budget Commission for
71	formal adoption before December 31, 2002. If the Legislative
72	Budget Commission refuses to concur with the adoption of the
73	proposal, the department shall present its proposal in the form
74	of recommended legislation to the President of the Senate and
75	the Speaker of the House of Representatives before the
76	commencement of the next legislative session.
77	(b) For fiscal year 2004-2005 2003-2004and annually
78	thereafter, the department may also request in its annual
79	legislative budget request, and the Governor may recommend, that
80	the funding necessary to carry out paragraph (a) be (i) from
81	excess federal earnings. The General Appropriations Act shall
82	include any funds appropriated to for this purpose in a lump sum
83	in the department. Prior to the release of such funds, the
84	department shall submit a detailed operational plan, which must
85	identify the sources of specific funds to be used and the
86	reasons justifying their use. The release of these funds shall
87	be subject to the notice and review provisions of s. 216.177 but
88	shall not require the approval of the Legislative Budget
89	Commission.
90	1. Such , which funds shallconstitute partial security
91	for lead agency contract performance and shall be used. The
92	department shall use this appropriationto offset the need for a
93	performance bond for that year after a comparison of risk to the
94	funds available. If it is determined that available funds will
95	be insufficient and a bond will be required, in no event shall
96	the thisperformance bond exceed 2.5 percent of the annual
97	contract value. An irrevocable letter of credit may substitute
98	for the required bond.
99	2.The department may separately require a bond to
100	mitigate the financial consequences of potential acts of
101	malfeasance, misfeasance, or criminal violations by the
102	provider. Prior to the release of any funds in the lump sum, the
103	department shall submit a detailed operational plan, which must
104	identify the sources of specific trust funds to be used. The
105	release of the trust fund shall be subject to the notice and
106	review provisions of s. 216.177. However, the release shall not
107	require approval of the Legislative Budget Commission.
108	Section 2. This act shall take effect upon becoming a law.