103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4010

 

Introduced 3/8/2023, by Rep. Terra Costa Howard

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 505/5a  from Ch. 23, par. 5005a

    Amends the Children and Family Services Act. In provisions concerning reimbursable services for which the Department of Children and Family Services shall pay 100% of the reasonable cost pursuant to a written contract negotiated between the Department and the agency furnishing the services, adds the following services to the list of reimbursable services: (i) pass-through payments to foster parents; (ii) technology infrastructure, including computers, equipment, software and security services; and (iii) records, including electronic medical records. Removes telegram services from the list of reimbursable services. Provides that the Department shall not establish or enforce any rule, procedure, or contract term that reduces, limits or restricts reimbursement to less than 100% of the reasonable cost for any object expenses, service activities, or administrative costs described in the amendatory Act. Provides that to ensure provider agencies have access to cash reserves for operations in the face of rising costs and increased expenses, provider agencies shall be allowed to retain all moneys received in excess of actual reimbursable costs so long as the provider agency invests the excess revenue in, and uses the excess revenue for: (1) direct service, (2) object expenses, (3) and other states purposes. Provides that the use of excess revenue shall be subject to review and audit consistent with the Department's certified audits, cost reports, and desk review procedures in the usual course.


LRB103 31176 KTG 57994 b

 

 

A BILL FOR

 

HB4010LRB103 31176 KTG 57994 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Children and Family Services Act is amended
5by changing Sections 5a, 5b, and 5c as follows:
 
6    (20 ILCS 505/5a)  (from Ch. 23, par. 5005a)
7    (Text of Section before amendment by P.A. 102-926)
8    Sec. 5a. Reimbursable services for which the Department of
9Children and Family Services shall pay 100% of the reasonable
10cost pursuant to a written contract negotiated between the
11Department and the agency furnishing the services (which shall
12include but not be limited to the determination of reasonable
13cost, the services being purchased and the duration of the
14agreement) include, but are not limited to:
 
15SERVICE ACTIVITIES
16    Adjunctive Therapy;
17    Child Care Service, including day care;
18    Clinical Therapy;
19    Custodial Service;
20    Field Work Students;
21    Food Service;
22    Normal Education;

 

 

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1    In-Service Training;
2    Intake or Evaluation, or both;
3    Medical Services;
4    Pass-through payments to foster parents;
5    Recreation;
6    Social Work or Counselling, or both;
7    Supportive Staff;
8    Volunteers.
 
9OBJECT EXPENSES
10    Professional Fees and Contract Service Payments;
11    Supplies;
12    Technology infrastructure, including computers,
13    equipment, software, and security services;
14    Records, including electronic medical records;
15    Telephone and Telegram;
16    Occupancy;
17    Local Transportation;
18    Equipment and Other Fixed Assets, including amortization
19        of same;
20    Miscellaneous.
 
21ADMINISTRATIVE COSTS
22    Program Administration;
23    Supervision and Consultation;
24    Inspection and Monitoring for purposes of issuing

 

 

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1        licenses;
2    Determination of Children who are eligible
3    for federal or other reimbursement;
4    Postage and Shipping;
5    Outside Printing, Artwork, etc.;
6    Subscriptions and Reference Publications;
7    Management and General Expense.
8    The Department shall not establish or enforce any rule,
9procedure, or contract term that reduces, limits, or restricts
10reimbursement to less than 100% of the reasonable cost for any
11object expenses, service activities, or administrative costs
12described in this Section.
13    To ensure provider agencies have access to cash reserves
14for operations in the face of rising costs and increased
15expenses, provider agencies shall be allowed to retain all
16moneys received in excess of actual reimbursable costs so long
17as the provider agency invests the excess revenue in, and uses
18the excess revenue for any of the following: (i) direct
19service, (ii) object expenses, (iii) service activities, (iv)
20administrative costs, or (v) increasing positive cash flow, up
21to 3-months cash on hand, to ensure available funds for
22operations during the current and next fiscal year. The use of
23excess revenue shall be subject to review and audit consistent
24with the Department's certified audits, cost reports, and desk
25review procedures in the usual course. Reimbursement of
26administrative costs other than inspection and monitoring for

 

 

HB4010- 4 -LRB103 31176 KTG 57994 b

1purposes of issuing licenses may not exceed 20% of the costs
2for other services.
3    The Department may offer services to any child or family
4with respect to whom a report of suspected child abuse or
5neglect has been called in to the hotline after completion of a
6family assessment as provided under subsection (a-5) of
7Section 7.4 of the Abused and Neglected Child Reporting Act
8and the Department has determined that services are needed to
9address the safety of the child and other family members and
10the risk of subsequent maltreatment. Acceptance of such
11services shall be voluntary.
12    All Object Expenses, Service Activities and Administrative
13Costs are allowable.
14    If a survey instrument is used in the rate setting
15process:
16        (a) with respect to any day care centers, it shall be
17    limited to those agencies which receive reimbursement from
18    the State;
19        (b) the cost survey instrument shall be promulgated by
20    rule;
21        (c) any requirements of the respondents shall be
22    promulgated by rule;
23        (d) all screens, limits or other tests of
24    reasonableness, allowability and reimbursability shall be
25    promulgated by rule;
26        (e) adjustments may be made by the Department to rates

 

 

HB4010- 5 -LRB103 31176 KTG 57994 b

1    when it determines that reported wage and salary levels
2    are insufficient to attract capable caregivers in
3    sufficient numbers.
4    The Department of Children and Family Services may pay
5100% of the reasonable costs of research and valuation focused
6exclusively on services to youth in care. Such research
7projects must be approved, in advance, by the Director of the
8Department.
9    In addition to reimbursements otherwise provided for in
10this Section, the Department of Human Services shall, in
11accordance with annual written agreements, make advance
12quarterly disbursements to local public agencies for child day
13care services with funds appropriated from the Local Effort
14Day Care Fund.
15    Neither the Department of Children and Family Services nor
16the Department of Human Services shall pay or approve
17reimbursement for day care in a facility which is operating
18without a valid license or permit, except in the case of day
19care homes or day care centers which are exempt from the
20licensing requirements of the "Child Care Act of 1969".
21(Source: P.A. 100-159, eff. 8-18-17.)
 
22    (Text of Section after amendment by P.A. 102-926)
23    Sec. 5a. Reimbursable services for which the Department of
24Children and Family Services shall pay 100% of the reasonable
25cost pursuant to a written contract negotiated between the

 

 

HB4010- 6 -LRB103 31176 KTG 57994 b

1Department and the agency furnishing the services (which shall
2include but not be limited to the determination of reasonable
3cost, the services being purchased and the duration of the
4agreement) include, but are not limited to:
 
5SERVICE ACTIVITIES
6    Adjunctive Therapy;
7    Child Care Service, including day care;
8    Clinical Therapy;
9    Custodial Service;
10    Field Work Students;
11    Food Service;
12    Normal Education;
13    In-Service Training;
14    Intake or Evaluation, or both;
15    Medical Services;
16    Pass-through payments to foster parents;
17    Recreation;
18    Social Work or Counselling, or both;
19    Supportive Staff;
20    Volunteers.
 
21OBJECT EXPENSES
22    Professional Fees and Contract Service Payments;
23    Supplies;
24    Technology infrastructure, including computers,

 

 

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1    equipment, software, and security services;
2    Records, including electronic medical records;
3    Telephone and Telegram;
4    Occupancy;
5    Local Transportation;
6    Equipment and Other Fixed Assets, including amortization
7        of same;
8    Miscellaneous.
 
9ADMINISTRATIVE COSTS
10    Program Administration;
11    Supervision and Consultation;
12    Inspection and Monitoring for purposes of issuing
13        licenses;
14    Determination of Children who are eligible
15    for federal or other reimbursement;
16    Postage and Shipping;
17    Outside Printing, Artwork, etc.;
18    Subscriptions and Reference Publications;
19    Management and General Expense.
20    The Department shall not establish or enforce any rule,
21procedure, or contract term that reduces, limits, or restricts
22reimbursement to less than 100% of the reasonable cost for any
23object expenses, service activities, or administrative costs
24described in this Act.
25    To ensure provider agencies have access to cash reserves

 

 

HB4010- 8 -LRB103 31176 KTG 57994 b

1for operations in the face of rising costs and increased
2expenses, provider agencies shall be allowed to retain all
3moneys received in excess of actual reimbursable costs so long
4as the provider agency invests the excess revenue in, and uses
5the excess revenue for any of the following: (i) direct
6service, (ii) object expenses, (iii) service activities, (iv)
7administrative costs, or (v) increasing positive cash flow, up
8to 3-months cash on hand, to ensure available funds for
9operations during the current and next fiscal year. The use of
10excess revenue shall be subject to review and audit consistent
11with the Department's certified audits, cost reports, and desk
12review procedures in the usual course.
13Reimbursement of administrative costs other than inspection
14and monitoring for purposes of issuing licenses may not exceed
1520% of the costs for other services.
16    The Department may offer services to any child or family
17with respect to whom a report of suspected child abuse or
18neglect has been called in to the hotline after completion of a
19family assessment as provided under subsection (a-5) of
20Section 7.4 of the Abused and Neglected Child Reporting Act
21and the Department has determined that services are needed to
22address the safety of the child and other family members and
23the risk of subsequent maltreatment. Acceptance of such
24services shall be voluntary.
25    All Object Expenses, Service Activities and Administrative
26Costs are allowable.

 

 

HB4010- 9 -LRB103 31176 KTG 57994 b

1    If a survey instrument is used in the rate setting
2process:
3        (a) with respect to any day care centers, it shall be
4    limited to those agencies which receive reimbursement from
5    the State;
6        (b) the cost survey instrument shall be promulgated by
7    rule;
8        (c) any requirements of the respondents shall be
9    promulgated by rule;
10        (d) all screens, limits or other tests of
11    reasonableness, allowability and reimbursability shall be
12    promulgated by rule;
13        (e) adjustments may be made by the Department to rates
14    when it determines that reported wage and salary levels
15    are insufficient to attract capable caregivers in
16    sufficient numbers.
17    The Department of Children and Family Services may pay
18100% of the reasonable costs of research and valuation focused
19exclusively on services to youth in care. Such research
20projects must be approved, in advance, by the Director of the
21Department.
22    In addition to reimbursements otherwise provided for in
23this Section, the Department of Human Services shall, in
24accordance with annual written agreements, make advance
25quarterly disbursements to local public agencies for child day
26care services with funds appropriated from the Local Effort

 

 

HB4010- 10 -LRB103 31176 KTG 57994 b

1Day Care Fund.
2    Neither the Department of Children and Family Services nor
3the Department of Human Services shall pay or approve
4reimbursement for day care in a facility which is operating
5without a valid license or permit, except in the case of day
6care homes or day care centers which are exempt from the
7licensing requirements of the "Child Care Act of 1969".
8    The rates paid to day care providers by the Department of
9Children and Family Services shall match the rates paid to
10child care providers by the Department of Human Services under
11the child care assistance program, including base rates and
12any relevant rate enhancements.
13(Source: P.A. 102-926, eff. 7-1-23.)
 
14    Section 95. No acceleration or delay. Where this Act makes
15changes in a statute that is represented in this Act by text
16that is not yet or no longer in effect (for example, a Section
17represented by multiple versions), the use of that text does
18not accelerate or delay the taking effect of (i) the changes
19made by this Act or (ii) provisions derived from any other
20Public Act.