HB 5011

1	A bill to be entitled
2	An act relating to foster care and related services;
3	amending s. 409.1671, F.S.; requiring the Department of
4	Children and Family Services to develop a statewide plan
5	for outsourcing foster care and related services; removing
6	certain plan requirements; removing an obsolete date;
7	authorizing the expenditure of certain funds; removing a
8	requirement to issue certain loans; removing certain
9	provisions relative to the sources of future funding;
10	making conforming changes; removing authority of the
11	Florida Coalition for Children, Inc., or its
12	subcontractors to manage certain risk pool funds;
13	authorizing the department to issue an interest-free loan
14	to the Florida Coalition for Children, Inc., to establish
15	a self-insurance program based on certain appropriations;
16	providing an effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1.  Subsection (7) of section 409.1671, Florida
21	Statutes, is amended to read:
22	409.1671  Foster care and related services; outsourcing.--
23	(7)  The Florida Coalition for Children, Inc., in
24	consultation with the department, shall develop a plan, in
25	consultation with the Florida Coalition for Children, Inc.,
26	based on an independent actuarial study regarding the long-term
27	use and structure of a statewide community-based care risk pool
28	for the protection of eligible lead community-based providers,
29	their subcontractors, and providers of other social services who
30	contract directly with the department. The plan must also
31	outline strategies to maximize federal earnings as they relate
32	to the community-based care risk pool. At a minimum, the plan
33	must allow for the use of federal earnings received from child
34	welfare programs to be allocated to the community-based care
35	risk pool by the department, which earnings are determined by
36	the department to be in excess of the amount appropriated in the
37	General Appropriations Act. The plan must specify the necessary
38	steps to ensure the financial integrity and industry-standard
39	risk management practices of the community-based care risk pool
40	and the continued availability of funding from federal, state,
41	and local sources. The plan must also include recommendations
42	that permit the program to be available to entities of the
43	department providing child welfare services until full
44	conversion to community-based care takes place. The final plan
45	shall be submitted to the department and then to the Executive
46	Office of the Governor and the Legislative Budget Commission for
47	formal adoption before January 1, 2005. Upon approval of the
48	plan by all parties, the department is authorized to expend
49	funds from the community-based care risk pool pursuant to the
50	provisions of the plan shall issue an interest-free loan that is
51	secured by the cumulative contractual revenue of the community-
52	based care risk pool membership, and the amount of the loan
53	shall equal the amount appropriated by the Legislature for this
54	purpose. The plan shall provide for a governance structure that
55	assures the department the ability to oversee the operation of
56	the community-based care risk pool at least until this loan is
57	repaid in full.
58	(a)  The purposes for which the community-based care risk
59	pool shall be used include, but are not limited to:
60	1.  Significant changes in the number or composition of
61	clients eligible to receive services.
62	2.  Significant changes in the services that are eligible
63	for reimbursement.
64	3.  Scheduled or unanticipated, but necessary, advances to
65	providers or other cash-flow issues.
66	4.  Proposals to participate in optional Medicaid services
67	or other federal grant opportunities.
68	5.  Appropriate incentive structures.
69	6.  Continuity of care in the event of failure,
70	discontinuance of service, or financial misconduct by a lead
71	agency.
72	7.  Payment for time-limited technical assistance and
73	consultation to lead agencies in the event of serious
74	performance or management problems.
75	8.  Payment for meeting all traditional and nontraditional
76	insurance needs of eligible members.
77	9.  Significant changes in the mix of available funds.
78	(b)  After approval of the plan in the 2004-2005 fiscal
79	year and annually thereafter, the department may also request in
80	its annual legislative budget request, and the Governor may
81	recommend, that the funding necessary to carry out paragraph (a)
82	be appropriated to the department. Subsequent funding of the
83	community-based care risk pool shall be supported by premiums
84	assessed to members of the community-based care risk pool on a
85	recurring basis. The community-based care risk pool may invest
86	and retain interest earned on these funds. In addition, the
87	department may transfer funds to the community-based care risk
88	pool as available in order to ensure an adequate funding level
89	if the fund is declared to be insolvent and approval is granted
90	by the Legislative Budget Commission. Such payments for
91	insolvency shall be made only after a determination is made by
92	the department or its actuary that all participants in the
93	community-based care risk pool are current in their payments of
94	premiums and that assessments have been made at an actuarially
95	sound level. Such payments by participants in the community-
96	based care risk pool may not exceed reasonable industry
97	standards, as determined by the actuary. Money from this fund
98	may be used to match available federal dollars. Dividends or
99	other payments, with the exception of legitimate claims, may not
100	be paid to members of the community-based care risk pool until
101	the loan issued by the department is repaid in full. Dividends
102	or other payments, with the exception of legitimate claims and
103	other purposes contained in the approved plan, may not be paid
104	to members of the community-based care risk pool unless, at the
105	time of distribution, the community-based care risk pool is
106	deemed actuarially sound and solvent. Solvency shall be
107	determined by an independent actuary contracted by the
108	department. The plan shall be developed in consultation with the
109	Office of Insurance Regulation.
110	1.  Such funds shall constitute partial security for
111	contract performance by lead agencies and shall be used to
112	offset the need for a performance bond. Subject to the approval
113	of the plan, the community-based care risk pool shall be managed
114	by the Florida Coalition for Children, Inc., or the designated
115	contractors of the Florida Coalition for Children, Inc.
116	Nonmembers of the community-based care risk pool may continue to
117	contract with the department but must provide a letter of credit
118	equal to one-twelfth of the annual contract amount in lieu of
119	membership in the community-based care risk pool.
120	2.  The department may separately require a bond to
121	mitigate the financial consequences of potential acts of
122	malfeasance, misfeasance, or criminal violations by the
123	provider.
124	(c)  The department may issue an interest-free loan to the
125	Florida Coalition for Children, Inc., for the purpose of
126	creating a self-insurance program. The loan shall be secured by
127	the cumulative contractual revenue of the community-based care
128	lead agencies participating in the self-insurance program. The
129	amount of the loan shall be in an amount equal to the amount
130	appropriated by the Legislature for this purpose.
131	Section 2.  This act shall take effect July 1, 2006.

CODING: Words stricken are deletions; words underlined are additions.