Florida Senate - 2006                        SENATOR AMENDMENT
    Bill No. HB 5009
                        Barcode 251560
                            CHAMBER ACTION
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       04/19/2006 10:41 AM         .                    
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11  Senator Saunders moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         Delete everything after the enacting clause
15  
16  and insert:  
17         Section 1.  Subsection (3) of section 394.457, Florida
18  Statutes, is amended to read:
19         394.457  Operation and administration.--
20         (3)  POWER TO CONTRACT.--The department may contract to
21  provide, and be provided with, services and facilities in
22  order to carry out its responsibilities under this part with
23  the following agencies: public and private hospitals;
24  receiving and treatment facilities; clinics; laboratories;
25  departments, divisions, and other units of state government;
26  the state colleges and universities; the community colleges;
27  private colleges and universities; counties, municipalities,
28  and any other governmental unit, including facilities of the
29  United States Government; and any other public or private
30  entity which provides or needs facilities or services. Baker
31  Act funds for community inpatient, crisis stabilization,
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    8:35 PM   04/17/06                             h500900c-37-j03

Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 short-term residential treatment, and screening services must 2 be allocated to each county pursuant to the department's 3 funding allocation methodology. Notwithstanding the provisions 4 of s. 287.057(5)(f), contracts for community-based Baker Act 5 services for inpatient, crisis stabilization, short-term 6 residential treatment, and screening provided under this part, 7 other than those with other units of government, to be 8 provided for the department must be awarded using competitive 9 sealed bids when the county commission of the county receiving 10 the services makes a request to the department's district 11 office by January 15 of the contracting year. The district 12 shall not enter into a competitively bid contract under this 13 provision if such action will result in increases of state or 14 local expenditures for Baker Act services within the district. 15 Contracts for these Baker Act services using competitive 16 sealed bids will be effective for 3 years. Services contracted 17 for by the department may be reimbursed by the state at a rate 18 up to 100 percent. The department shall adopt rules 19 establishing minimum standards for such contracted services 20 and facilities and shall make periodic audits and inspections 21 to assure that the contracted services are provided and meet 22 the standards of the department. 23 Section 2. Section 394.908, Florida Statutes, is 24 amended to read: 25 394.908 Substance abuse and mental health funding 26 equity; distribution of appropriations.--In recognition of the 27 historical inequity among service districts of the former 28 Department of Health and Rehabilitative Services in the 29 funding of substance abuse and mental health services for the 30 districts and region, and in order to rectify this inequity 31 and provide for equitable funding in the future throughout the 2 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 state, the following funding process shall be used adhered to: 2 (1) Funding thresholds for substance abuse and mental 3 health services in each of the current districts, statewide, 4 shall be established based on the current number of persons in 5 need per district of substance abuse and mental health 6 services, respectively. 7 (2) "Persons in need" means those persons who fit the 8 profile of the respective target populations and require 9 mental health or substance abuse services. 10 (3) Seventy-five percent of Any additional funding 11 beyond the 2005-2006 1996-1997 fiscal year base appropriation 12 for alcohol, drug abuse, and mental health services shall be 13 allocated to districts for substance abuse and mental health 14 services based on: 15 (a) Epidemiological estimates of disabilities that 16 which apply to the respective target populations. 17 (b) A pro rata share distribution that ensures 18 districts below the statewide average funding level per person 19 in each target population of "persons in need" receive funding 20 necessary to achieve equity. 21 (4) The remaining 25 percent shall be allocated based 22 on the number of persons in need of substance abuse and mental 23 health services per district without regard to current funding 24 levels. 25 (4)(5) Target populations for persons in need shall be 26 displayed for each district and distributed concurrently with 27 the approved operating budget. The display by target 28 population shall show: The annual number of persons served 29 based on prior year actual numbers, the annual cost per person 30 served, the number of persons served by service cost center, 31 and the estimated number of the total target population for 3 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 persons in need. 2 (5)(6) The annual cost per person served shall be 3 defined as the total actual funding for each target population 4 divided by the number of persons served in the target 5 population for that year. 6 (7) Commencing on July 1, 1998, all additional funding 7 pursuant to this section shall be performance-based. 8 (8) For fiscal year 2004-2005 only, and 9 notwithstanding the provisions of this section, all new funds 10 received in excess of fiscal year 2003-2004 recurring 11 appropriations shall be allocated in accordance with the 12 provisions of the General Appropriations Act; however, no 13 district shall receive an allocation of recurring funds less 14 than its initial approved operating budget, plus any 15 distributions of lump sum appropriations or reductions in 16 unfunded budget, for fiscal year 2003-2004. This subsection 17 expires July 1, 2005. 18 Section 3. Subsection (10) of section 402.33, Florida 19 Statutes, is repealed. 20 Section 4. Subsection (7) of section 409.1671, Florida 21 Statutes, is amended to read: 22 409.1671 Foster care and related services; 23 outsourcing.-- 24 (7) The Florida Coalition for Children, Inc., in 25 consultation with The department, shall develop a plan, in 26 consultation with the Florida Coalition for Children, Inc., 27 based on an independent actuarial study regarding the 28 long-term use and structure of a statewide community-based 29 care risk pool for the protection of eligible lead 30 community-based providers, their subcontractors, and providers 31 of other social services who contract directly with the 4 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 department. The plan must also outline strategies to maximize 2 federal earnings as they relate to the community-based care 3 risk pool. At a minimum, the plan must allow for the use of 4 federal earnings received from child welfare programs to be 5 allocated to the community-based care risk pool by the 6 department, which earnings are determined by the department to 7 be in excess of the amount appropriated in the General 8 Appropriations Act. The plan must specify the necessary steps 9 to ensure the financial integrity and industry-standard risk 10 management practices of the community-based care risk pool and 11 the continued availability of funding from federal, state, and 12 local sources. The plan must also include recommendations that 13 permit the program to be available to entities of the 14 department providing child welfare services until full 15 conversion to community-based care takes place. The final plan 16 shall be submitted to the department and then to the Executive 17 Office of the Governor and the Legislative Budget Commission 18 for formal adoption before January 1, 2005. Upon approval of 19 the plan, the department may expend funds from the risk pool 20 pursuant to the provisions of the plan. by all parties, the 21 department shall issue an interest-free loan that is secured 22 by the cumulative contractual revenue of the community-based 23 care risk pool membership, and the amount of the loan shall 24 equal the amount appropriated by the Legislature for this 25 purpose. The plan shall provide for a governance structure 26 that assures the department the ability to oversee the 27 operation of the community-based care risk pool at least until 28 this loan is repaid in full. 29 (a) The purposes for which the community-based care 30 risk pool shall be used include, but are not limited to: 31 1. Significant changes in the number or composition of 5 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 clients eligible to receive services. 2 2. Significant changes in the services that are 3 eligible for reimbursement. 4 3. Scheduled or unanticipated, but necessary, advances 5 to providers or other cash-flow issues. 6 4. Proposals to participate in optional Medicaid 7 services or other federal grant opportunities. 8 5. Appropriate incentive structures. 9 6. Continuity of care in the event of failure, 10 discontinuance of service, or financial misconduct by a lead 11 agency. 12 7. Payment for time-limited technical assistance and 13 consultation to lead agencies in the event of serious 14 performance or management problems. 15 8. Payment for meeting all traditional and 16 nontraditional insurance needs of eligible members. 17 9. Significant changes in the mix of available funds. 18 (b) After approval of the plan in the 2004-2005 fiscal 19 year and annually thereafter, the department may also request 20 in its annual legislative budget request, and the Governor may 21 recommend, that the funding necessary to carry out paragraph 22 (a) be appropriated to the department. Subsequent funding of 23 the community-based care risk pool shall be supported by 24 premiums assessed to members of the community-based care risk 25 pool on a recurring basis. The community-based care risk pool 26 may invest and retain interest earned on these funds. In 27 addition, the department may transfer funds to the 28 community-based care risk pool as available in order to ensure 29 an adequate funding level if the fund is declared to be 30 insolvent and approval is granted by the Legislative Budget 31 Commission. Such payments for insolvency shall be made only 6 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 after a determination is made by the department or its actuary 2 that all participants in the community-based care risk pool 3 are current in their payments of premiums and that assessments 4 have been made at an actuarially sound level. Such payments by 5 participants in the community-based care risk pool may not 6 exceed reasonable industry standards, as determined by the 7 actuary. Money from this fund may be used to match available 8 federal dollars. Dividends or other payments, with the 9 exception of legitimate claims, may not be paid to members of 10 the community-based care risk pool until the loan issued by 11 the department is repaid in full. Dividends or other payments, 12 with the exception of legitimate claims and other purposes 13 contained in the approved plan, may not be paid to members of 14 the community-based care risk pool unless, at the time of 15 distribution, the community-based care risk pool is deemed 16 actuarially sound and solvent. Solvency shall be determined by 17 an independent actuary contracted by the department. The plan 18 shall be developed in consultation with the Office of 19 Insurance Regulation. 20 1. Such funds shall constitute partial security for 21 contract performance by lead agencies and shall be used to 22 offset the need for a performance bond. Subject to the 23 approval of the plan, the community-based care risk pool shall 24 be managed by the Florida Coalition for Children, Inc., or the 25 designated contractors of the Florida Coalition for Children, 26 Inc. Nonmembers of the community-based care risk pool may 27 continue to contract with the department but must provide a 28 letter of credit equal to one-twelfth of the annual contract 29 amount in lieu of membership in the community-based care risk 30 pool. 31 2. The department may separately require a bond to 7 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 mitigate the financial consequences of potential acts of 2 malfeasance, misfeasance, or criminal violations by the 3 provider. 4 (c) The department may issue an interest-free loan to 5 the Florida Coalition for Children, Inc., for the purpose of 6 creating a self-insurance program. Such loan shall be secured 7 by the cumulative contractual revenue of the community-based 8 care lead agencies participating in the self-insurance 9 program. The amount of the loan shall be in an amount equal to 10 the amount appropriated by the Legislature for this purpose. 11 Section 5. This act shall take effect July 1, 2006. 12 13 14 ================ T I T L E A M E N D M E N T =============== 15 And the title is amended as follows: 16 Delete everything before the enacting clause 17 18 and insert: 19 A bill to be entitled 20 An act relating to funding for social services; 21 amending s. 394.457, F.S.; deleting provisions 22 authorizing a reimbursement rate of 100 percent 23 by the Department of Children and Family 24 Services for certain services provided under 25 the Baker Act; amending s. 394.908, F.S.; 26 revising the methodology for distributing funds 27 for certain substance abuse and mental health 28 services; repealing s. 402.33(10), F.S., 29 relating to provisions authorizing the use of 30 certain excess funds for nonrecurring 31 expenditures incurred in providing direct 8 8:35 PM 04/17/06 h500900c-37-j03
Florida Senate - 2006 SENATOR AMENDMENT Bill No. HB 5009 Barcode 251560 1 client services and for certain administrative 2 costs; amending s. 409.1671, F.S.; revising 3 provisions requiring that a statewide risk pool 4 be established for community-based providers, 5 their subcontractors, and providers of other 6 social services who contract with the 7 Department of Children and Family Services; 8 requiring that the department develop a plan, 9 in consultation with the Florida Coalition for 10 Children, Inc., regarding the long-term use and 11 structure of the risk pool; deleting certain 12 restrictions governing payments for insolvency; 13 authorizing the department to issue an 14 interest-free loan to the Florida Coalition for 15 Children, Inc.; providing an effective date. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 9 8:35 PM 04/17/06 h500900c-37-j03