Florida Senate - 2006            PROPOSED COMMITTEE SUBSTITUTE
    Bill No. SB 398
                        Barcode 124068   Comm: RCS  04/25/2006 02:23 PM       
    603-1845-06
    Proposed Committee Substitute by the Committee on Health and
    Human Services Appropriations
 1                      A bill to be entitled
 2         An act relating to funding for social services;
 3         amending s. 394.457, F.S.; deleting provisions
 4         authorizing a reimbursement rate of 100 percent
 5         by the Department of Children and Family
 6         Services for certain services provided under
 7         the Baker Act; amending s. 394.908, F.S.;
 8         revising the methodology for distributing funds
 9         for certain substance abuse and mental health
10         services; repealing s. 402.33(10), F.S.,
11         relating to provisions authorizing the use of
12         certain excess funds for nonrecurring
13         expenditures incurred in providing direct
14         client services and for certain administrative
15         costs; amending s. 409.1671, F.S.; revising
16         provisions requiring that a statewide risk pool
17         be established for community-based providers,
18         their subcontractors, and providers of other
19         social services who contract with the
20         Department of Children and Family Services;
21         requiring that the department develop a plan,
22         in consultation with the Florida Coalition for
23         Children, Inc., regarding the long-term use and
24         structure of the risk pool; deleting certain
25         restrictions governing payments for insolvency;
26         authorizing the department to issue an
27         interest-free loan to the Florida Coalition for
28         Children, Inc.; providing an effective date.
29  
30  Be It Enacted by the Legislature of the State of Florida:
31  
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    8:12 AM   03/14/06                             s0398p-ha00-t01

Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 Section 1. Subsection (3) of section 394.457, Florida 2 Statutes, is amended to read: 3 394.457 Operation and administration.-- 4 (3) POWER TO CONTRACT.--The department may contract to 5 provide, and be provided with, services and facilities in 6 order to carry out its responsibilities under this part with 7 the following agencies: public and private hospitals; 8 receiving and treatment facilities; clinics; laboratories; 9 departments, divisions, and other units of state government; 10 the state colleges and universities; the community colleges; 11 private colleges and universities; counties, municipalities, 12 and any other governmental unit, including facilities of the 13 United States Government; and any other public or private 14 entity which provides or needs facilities or services. Baker 15 Act funds for community inpatient, crisis stabilization, 16 short-term residential treatment, and screening services must 17 be allocated to each county pursuant to the department's 18 funding allocation methodology. Notwithstanding the provisions 19 of s. 287.057(5)(f), contracts for community-based Baker Act 20 services for inpatient, crisis stabilization, short-term 21 residential treatment, and screening provided under this part, 22 other than those with other units of government, to be 23 provided for the department must be awarded using competitive 24 sealed bids when the county commission of the county receiving 25 the services makes a request to the department's district 26 office by January 15 of the contracting year. The district 27 shall not enter into a competitively bid contract under this 28 provision if such action will result in increases of state or 29 local expenditures for Baker Act services within the district. 30 Contracts for these Baker Act services using competitive 31 sealed bids will be effective for 3 years. Services contracted 2 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 for by the department may be reimbursed by the state at a rate 2 up to 100 percent. The department shall adopt rules 3 establishing minimum standards for such contracted services 4 and facilities and shall make periodic audits and inspections 5 to assure that the contracted services are provided and meet 6 the standards of the department. 7 Section 2. Section 394.908, Florida Statutes, is 8 amended to read: 9 394.908 Substance abuse and mental health funding 10 equity; distribution of appropriations.--In recognition of the 11 historical inequity among service districts of the former 12 Department of Health and Rehabilitative Services in the 13 funding of substance abuse and mental health services for the 14 districts and region, and in order to rectify this inequity 15 and provide for equitable funding in the future throughout the 16 state, the following funding process shall be used adhered to: 17 (1) Funding thresholds for substance abuse and mental 18 health services in each of the current districts, statewide, 19 shall be established based on the current number of persons in 20 need per district of substance abuse and mental health 21 services, respectively. 22 (2) "Persons in need" means those persons who fit the 23 profile of the respective target populations and require 24 mental health or substance abuse services. 25 (3) Seventy-five percent of Any additional funding 26 beyond the 2005-2006 1996-1997 fiscal year base appropriation 27 for alcohol, drug abuse, and mental health services shall be 28 allocated to districts for substance abuse and mental health 29 services based on: 30 (a) Epidemiological estimates of disabilities that 31 which apply to the respective target populations. 3 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 (b) A pro rata share distribution that ensures 2 districts below the statewide average funding level per person 3 in each target population of "persons in need" receive funding 4 necessary to achieve equity. 5 (4) The remaining 25 percent shall be allocated based 6 on the number of persons in need of substance abuse and mental 7 health services per district without regard to current funding 8 levels. 9 (4)(5) Target populations for persons in need shall be 10 displayed for each district and distributed concurrently with 11 the approved operating budget. The display by target 12 population shall show: The annual number of persons served 13 based on prior year actual numbers, the annual cost per person 14 served, the number of persons served by service cost center, 15 and the estimated number of the total target population for 16 persons in need. 17 (5)(6) The annual cost per person served shall be 18 defined as the total actual funding for each target population 19 divided by the number of persons served in the target 20 population for that year. 21 (7) Commencing on July 1, 1998, all additional funding 22 pursuant to this section shall be performance-based. 23 (8) For fiscal year 2004-2005 only, and 24 notwithstanding the provisions of this section, all new funds 25 received in excess of fiscal year 2003-2004 recurring 26 appropriations shall be allocated in accordance with the 27 provisions of the General Appropriations Act; however, no 28 district shall receive an allocation of recurring funds less 29 than its initial approved operating budget, plus any 30 distributions of lump sum appropriations or reductions in 31 unfunded budget, for fiscal year 2003-2004. This subsection 4 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 expires July 1, 2005. 2 Section 3. Subsection (10) of section 402.33, Florida 3 Statutes, is repealed. 4 Section 4. Subsection (7) of section 409.1671, Florida 5 Statutes, is amended to read: 6 409.1671 Foster care and related services; 7 outsourcing.-- 8 (7) The Florida Coalition for Children, Inc., in 9 consultation with The department, shall develop a plan, in 10 consultation with the Florida Coalition for Children, Inc., 11 based on an independent actuarial study regarding the 12 long-term use and structure of a statewide community-based 13 care risk pool for the protection of eligible lead 14 community-based providers, their subcontractors, and providers 15 of other social services who contract directly with the 16 department. The plan must also outline strategies to maximize 17 federal earnings as they relate to the community-based care 18 risk pool. At a minimum, the plan must allow for the use of 19 federal earnings received from child welfare programs to be 20 allocated to the community-based care risk pool by the 21 department, which earnings are determined by the department to 22 be in excess of the amount appropriated in the General 23 Appropriations Act. The plan must specify the necessary steps 24 to ensure the financial integrity and industry-standard risk 25 management practices of the community-based care risk pool and 26 the continued availability of funding from federal, state, and 27 local sources. The plan must also include recommendations that 28 permit the program to be available to entities of the 29 department providing child welfare services until full 30 conversion to community-based care takes place. The final plan 31 shall be submitted to the department and then to the Executive 5 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 Office of the Governor and the Legislative Budget Commission 2 for formal adoption before January 1, 2005. Upon approval of 3 the plan, the department may expend funds from the risk pool 4 pursuant to the provisions of the plan. by all parties, the 5 department shall issue an interest-free loan that is secured 6 by the cumulative contractual revenue of the community-based 7 care risk pool membership, and the amount of the loan shall 8 equal the amount appropriated by the Legislature for this 9 purpose. The plan shall provide for a governance structure 10 that assures the department the ability to oversee the 11 operation of the community-based care risk pool at least until 12 this loan is repaid in full. 13 (a) The purposes for which the community-based care 14 risk pool shall be used include, but are not limited to: 15 1. Significant changes in the number or composition of 16 clients eligible to receive services. 17 2. Significant changes in the services that are 18 eligible for reimbursement. 19 3. Scheduled or unanticipated, but necessary, advances 20 to providers or other cash-flow issues. 21 4. Proposals to participate in optional Medicaid 22 services or other federal grant opportunities. 23 5. Appropriate incentive structures. 24 6. Continuity of care in the event of failure, 25 discontinuance of service, or financial misconduct by a lead 26 agency. 27 7. Payment for time-limited technical assistance and 28 consultation to lead agencies in the event of serious 29 performance or management problems. 30 8. Payment for meeting all traditional and 31 nontraditional insurance needs of eligible members. 6 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 9. Significant changes in the mix of available funds. 2 (b) After approval of the plan in the 2004-2005 fiscal 3 year and annually thereafter, the department may also request 4 in its annual legislative budget request, and the Governor may 5 recommend, that the funding necessary to carry out paragraph 6 (a) be appropriated to the department. Subsequent funding of 7 the community-based care risk pool shall be supported by 8 premiums assessed to members of the community-based care risk 9 pool on a recurring basis. The community-based care risk pool 10 may invest and retain interest earned on these funds. In 11 addition, the department may transfer funds to the 12 community-based care risk pool as available in order to ensure 13 an adequate funding level if the fund is declared to be 14 insolvent and approval is granted by the Legislative Budget 15 Commission. Such payments for insolvency shall be made only 16 after a determination is made by the department or its actuary 17 that all participants in the community-based care risk pool 18 are current in their payments of premiums and that assessments 19 have been made at an actuarially sound level. Such payments by 20 participants in the community-based care risk pool may not 21 exceed reasonable industry standards, as determined by the 22 actuary. Money from this fund may be used to match available 23 federal dollars. Dividends or other payments, with the 24 exception of legitimate claims, may not be paid to members of 25 the community-based care risk pool until the loan issued by 26 the department is repaid in full. Dividends or other payments, 27 with the exception of legitimate claims and other purposes 28 contained in the approved plan, may not be paid to members of 29 the community-based care risk pool unless, at the time of 30 distribution, the community-based care risk pool is deemed 31 actuarially sound and solvent. Solvency shall be determined by 7 8:12 AM 03/14/06 s0398p-ha00-t01
Florida Senate - 2006 PROPOSED COMMITTEE SUBSTITUTE Bill No. SB 398 Barcode 124068 603-1845-06 1 an independent actuary contracted by the department. The plan 2 shall be developed in consultation with the Office of 3 Insurance Regulation. 4 1. Such funds shall constitute partial security for 5 contract performance by lead agencies and shall be used to 6 offset the need for a performance bond. Subject to the 7 approval of the plan, the community-based care risk pool shall 8 be managed by the Florida Coalition for Children, Inc., or the 9 designated contractors of the Florida Coalition for Children, 10 Inc. Nonmembers of the community-based care risk pool may 11 continue to contract with the department but must provide a 12 letter of credit equal to one-twelfth of the annual contract 13 amount in lieu of membership in the community-based care risk 14 pool. 15 2. The department may separately require a bond to 16 mitigate the financial consequences of potential acts of 17 malfeasance, misfeasance, or criminal violations by the 18 provider. 19 (c) The department may issue an interest-free loan to 20 the Florida Coalition for Children, Inc., for the purpose of 21 creating a self-insurance program. Such loan shall be secured 22 by the cumulative contractual revenue of the community-based 23 care lead agencies participating in the self-insurance 24 program. The amount of the loan shall be in an amount equal to 25 the amount appropriated by the Legislature for this purpose. 26 Section 5. This act shall take effect July 1, 2006. 27 28 29 30 31 8 8:12 AM 03/14/06 s0398p-ha00-t01