HB4010 103RD GENERAL ASSEMBLY

LRB103 31176 KTG 57994 b

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.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Children and Family Services Act is amended by changing Sections 5a, 5b, and 5c as follows:

(20 ILCS 505/5a) (from Ch. 23, par. 5005a)

(Text of Section before amendment by P.A. 102-926)

Sec. 5a. 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 (which shall include but not be limited to the determination of reasonable cost, the services being purchased and the duration of the agreement) include, but are not limited to:

SERVICE ACTIVITIES

Adjunctive Therapy;

Child Care Service, including day care;

Clinical Therapy;

Custodial Service;

Field Work Students;

Food Service;

Normal Education;

In-Service Training;

Intake or Evaluation, or both;

Medical Services;

Pass-through payments to foster parents;

Recreation;

Social Work or Counselling, or both;

Supportive Staff;

Volunteers.

OBJECT EXPENSES

Professional Fees and Contract Service Payments;

Supplies;

Technology infrastructure, including computers,

equipment, software, and security services;

Records, including electronic medical records;

Telephone and Telegram;

Occupancy;

Local Transportation;

Equipment and Other Fixed Assets, including amortization

of same;

Miscellaneous.

ADMINISTRATIVE COSTS

Program Administration;

Supervision and Consultation;

Inspection and Monitoring for purposes of issuing

licenses;

Determination of Children who are eligible

for federal or other reimbursement;

Postage and Shipping;

Outside Printing, Artwork, etc.;

Subscriptions and Reference Publications;

Management and General Expense.

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 this Section.

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 any of the following: (i) direct service, (ii) object expenses, (iii) service activities, (iv) administrative costs, or (v) increasing positive cash flow, up to 3-months cash on hand, to ensure available funds for operations during the current and next fiscal year. 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. Reimbursement of administrative costs other than inspection and monitoring for purposes of issuing licenses may not exceed 20% of the costs for other services.

The Department may offer services to any child or family with respect to whom a report of suspected child abuse or neglect has been called in to the hotline after completion of a family assessment as provided under subsection (a-5) of Section 7.4 of the Abused and Neglected Child Reporting Act and the Department has determined that services are needed to address the safety of the child and other family members and the risk of subsequent maltreatment. Acceptance of such services shall be voluntary.

All Object Expenses, Service Activities and Administrative Costs are allowable.

If a survey instrument is used in the rate setting process:

(a) with respect to any day care centers, it shall be limited to those agencies which receive reimbursement from the State;

(b) the cost survey instrument shall be promulgated by rule;

(c) any requirements of the respondents shall be promulgated by rule;

(d) all screens, limits or other tests of reasonableness, allowability and reimbursability shall be promulgated by rule;

(e) adjustments may be made by the Department to rates when it determines that reported wage and salary levels are insufficient to attract capable caregivers in sufficient numbers.

The Department of Children and Family Services may pay 100% of the reasonable costs of research and valuation focused exclusively on services to youth in care. Such research projects must be approved, in advance, by the Director of the Department.

In addition to reimbursements otherwise provided for in this Section, the Department of Human Services shall, in accordance with annual written agreements, make advance quarterly disbursements to local public agencies for child day care services with funds appropriated from the Local Effort Day Care Fund.

Neither the Department of Children and Family Services nor the Department of Human Services shall pay or approve reimbursement for day care in a facility which is operating without a valid license or permit, except in the case of day care homes or day care centers which are exempt from the licensing requirements of the "Child Care Act of 1969".

(Source: P.A. 100-159, eff. 8-18-17.)

(Text of Section after amendment by P.A. 102-926)

Sec. 5a. 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 (which shall include but not be limited to the determination of reasonable cost, the services being purchased and the duration of the agreement) include, but are not limited to:

SERVICE ACTIVITIES

Adjunctive Therapy;

Child Care Service, including day care;

Clinical Therapy;

Custodial Service;

Field Work Students;

Food Service;

Normal Education;

In-Service Training;

Intake or Evaluation, or both;

Medical Services;

Pass-through payments to foster parents;

Recreation;

Social Work or Counselling, or both;

Supportive Staff;

Volunteers.

OBJECT EXPENSES

Professional Fees and Contract Service Payments;

Supplies;

Technology infrastructure, including computers,

equipment, software, and security services;

Records, including electronic medical records;

Telephone and Telegram;

Occupancy;

Local Transportation;

Equipment and Other Fixed Assets, including amortization

of same;

Miscellaneous.

ADMINISTRATIVE COSTS

Program Administration;

Supervision and Consultation;

Inspection and Monitoring for purposes of issuing

licenses;

Determination of Children who are eligible

for federal or other reimbursement;

Postage and Shipping;

Outside Printing, Artwork, etc.;

Subscriptions and Reference Publications;

Management and General Expense.

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 this Act.

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 any of the following: (i) direct service, (ii) object expenses, (iii) service activities, (iv) administrative costs, or (v) increasing positive cash flow, up to 3-months cash on hand, to ensure available funds for operations during the current and next fiscal year. 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. Reimbursement of administrative costs other than inspection and monitoring for purposes of issuing licenses may not exceed 20% of the costs for other services.

The Department may offer services to any child or family with respect to whom a report of suspected child abuse or neglect has been called in to the hotline after completion of a family assessment as provided under subsection (a-5) of Section 7.4 of the Abused and Neglected Child Reporting Act and the Department has determined that services are needed to address the safety of the child and other family members and the risk of subsequent maltreatment. Acceptance of such services shall be voluntary.

All Object Expenses, Service Activities and Administrative Costs are allowable.

If a survey instrument is used in the rate setting process:

(a) with respect to any day care centers, it shall be limited to those agencies which receive reimbursement from the State;

(b) the cost survey instrument shall be promulgated by rule;

(c) any requirements of the respondents shall be promulgated by rule;

(d) all screens, limits or other tests of reasonableness, allowability and reimbursability shall be promulgated by rule;

(e) adjustments may be made by the Department to rates when it determines that reported wage and salary levels are insufficient to attract capable caregivers in sufficient numbers.

The Department of Children and Family Services may pay 100% of the reasonable costs of research and valuation focused exclusively on services to youth in care. Such research projects must be approved, in advance, by the Director of the Department.

In addition to reimbursements otherwise provided for in this Section, the Department of Human Services shall, in accordance with annual written agreements, make advance quarterly disbursements to local public agencies for child day care services with funds appropriated from the Local Effort Day Care Fund.

Neither the Department of Children and Family Services nor the Department of Human Services shall pay or approve reimbursement for day care in a facility which is operating without a valid license or permit, except in the case of day care homes or day care centers which are exempt from the licensing requirements of the "Child Care Act of 1969".

The rates paid to day care providers by the Department of Children and Family Services shall match the rates paid to child care providers by the Department of Human Services under the child care assistance program, including base rates and any relevant rate enhancements.

(Source: P.A. 102-926, eff. 7-1-23.)

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.