Senate Bill sb1698
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Florida Senate - 2004 SB 1698
By Senator Lynn
7-1215-04
1 A bill to be entitled
2 An act relating to community-based care;
3 amending s. 409.1671, F.S.; directing the
4 Department of Children and Family Services and
5 lead community-based providers to develop a
6 proposal for a statewide shared financial risk
7 program to protect the community-based lead
8 agencies that contract with the department to
9 deliver foster care and related services;
10 requiring the department to submit the proposal
11 for the financial risk program to the
12 Legislative Budget Commission for formal
13 adoption before October 1, 2004; requiring the
14 department to present the proposal in the form
15 of recommended legislation if the commission
16 refuses to adopt the department's proposal;
17 specifying the purposes for which the financial
18 risk program may be used; authorizing the
19 department to request appropriations to fund
20 the program; requiring the department to submit
21 a detailed operational plan that identifies the
22 sources of the funds to be used and the reasons
23 justifying their use before appropriated funds
24 may be released; clarifying conditions for the
25 need of a performance bond; limiting the value
26 of any performance bond required; providing for
27 an irrevocable letter of credit to substitute
28 for a performance bond; providing an effective
29 date.
30
31 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2004 SB 1698
7-1215-04
1 Section 1. Subsection (7) of section 409.1671, Florida
2 Statutes, as amended by section 27 of chapter 2003-399, Laws
3 of Florida, is amended to read:
4 409.1671 Foster care and related services;
5 privatization.--
6 (7) The department, in consultation with existing lead
7 agencies, shall develop a proposal regarding the long-term use
8 and structure of a statewide shared earnings program which
9 addresses the financial risk program for the protection of to
10 eligible lead community-based providers that contract directly
11 with the department for the delivery of foster care and
12 related services resulting from unanticipated caseload growth
13 or from significant changes in client mixes or services
14 eligible for federal reimbursement. The recommendations in the
15 statewide proposal must also be available to entities of the
16 department until the conversion to community-based care takes
17 place. At a minimum, the proposal must allow for use of
18 federal earnings received from child welfare programs, which
19 earnings are determined by the department to be in excess of
20 the amount appropriated in the General Appropriations Act, to
21 be used for specific purposes. The proposal must specify the
22 necessary steps to ensure the financial integrity of the risk
23 program and the continued availability of funding on an
24 ongoing basis from federal, state, and local sources. The
25 proposal must also include recommendations that permit the
26 program to be available to entities of the department
27 providing child welfare services until full conversion to
28 community-based care takes place. The final proposal shall be
29 submitted to the Legislative Budget Commission for formal
30 adoption before October 1, 2004. If the Legislative Budget
31 Commission refuses to concur with the adoption of the
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Florida Senate - 2004 SB 1698
7-1215-04
1 proposal, the department shall present its proposal in the
2 form of recommended legislation to the President of the Senate
3 and the Speaker of the House of Representatives before
4 commencement of the 2005 legislative session.
5 (a) The These purposes for which the risk program may
6 be used include, but are not limited to:
7 1.(a) Significant changes in the number or composition
8 of clients eligible to receive services.
9 2.(b) Significant changes in the services that are
10 eligible for reimbursement.
11 3.(c) Significant changes in the availability of
12 federal funds.
13 4.(d) Shortfalls in state funds available for eligible
14 or ineligible services.
15 5.(e) Significant changes in the mix of available
16 funds.
17 6.(f) Scheduled or unanticipated, but necessary,
18 advances to providers or other cash-flow issues.
19 7.(g) Proposals to participate in optional Medicaid
20 services or other federal grant opportunities.
21 8.(h) Appropriate incentive structures.
22 9.(i) Continuity of care in the event of lead agency
23 failure, discontinuance of service, or financial misconduct.
24
25 The department shall further specify the necessary steps to
26 ensure the financial integrity of these dollars and their
27 continued availability on an ongoing basis. The final proposal
28 shall be submitted to the Legislative Budget Commission for
29 formal adoption before December 31, 2002. If the Legislative
30 Budget Commission refuses to concur with the adoption of the
31 proposal, the department shall present its proposal in the
3
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Florida Senate - 2004 SB 1698
7-1215-04
1 form of recommended legislation to the President of the Senate
2 and the Speaker of the House of Representatives before the
3 commencement of the next legislative session.
4 (b) For the 2004-2005 fiscal year 2003-2004 and
5 annually thereafter, the department of Children and Family
6 Services may request in its annual legislative budget request,
7 and the Governor may recommend, that the funding necessary to
8 carry out paragraph (a) (i) be from excess federal earnings.
9 The General Appropriations Act shall include any funds
10 appropriated to the department. Prior to the release of the
11 funds, the department shall submit a detailed operational
12 plan, that must identify the sources of the specific funds to
13 be used and the reasons justifying their use. The release of
14 these funds is subject to the notice and review provisions of
15 s. 216.77 but does not require the approval of the Legislative
16 Budget Commission. for this purpose in a lump sum in the
17 Administered Funds Program, which
18 1. The funds shall constitute partial security for
19 lead agency contract performance and shall be used. The
20 department shall use this appropriation to offset the need for
21 a performance bond for that year after a comparison of risk to
22 the funds available. If it is determined that available funds
23 will be insufficient and a bond required, the In no event
24 shall this performance bond may not exceed 2.5 percent of the
25 annual contract value. An irrevocable letter of credit may
26 substitute for the required bond.
27 2. The department may separately require a bond to
28 mitigate the financial consequences of potential acts of
29 malfeasance, misfeasance, or criminal violations by the
30 provider. Prior to the release of any funds in the lump sum,
31 the department shall submit a detailed operational plan, which
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Florida Senate - 2004 SB 1698
7-1215-04
1 must identify the sources of specific trust funds to be used.
2 The release of the trust fund shall be subject to the notice
3 and review provisions of s. 216.177. However, the release
4 shall not require approval of the Legislative Budget
5 Commission.
6 Section 2. This act shall take effect July 1, 2004.
7
8 *****************************************
9 SENATE SUMMARY
10 Directs the Department of Children and Family Services
and lead community-based providers to develop a proposal
11 for a statewide shared financial risk program to protect
the community-based lead agencies that contract with the
12 department to deliver foster care and related services.
Requires the department to submit the proposal to the
13 Legislative Budget Commission for formal adoption before
October 1, 2004. Requires the department to present the
14 proposal in the form of recommended legislation if the
commission refuses to adopt the department's proposal.
15 Specifies the purposes for which the financial risk
program may be used. Authorizes the department to request
16 appropriations to fund the program. Requires the
department to submit a detailed operational plan that
17 identifies the sources of the funds to be used and the
reasons justifying their use before appropriated funds
18 may be released. Clarifies the conditions for the need of
a performance bond. Limits the value of any performance
19 bond required to 2.5 percent of the annual contract
value. Permits an irrevocable letter of credit to
20 substitute for a performance bond.
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