Full Text of HB3380 95th General Assembly
HB3380 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB3380
Introduced 2/26/2007, by Rep. Lisa M. Dugan SYNOPSIS AS INTRODUCED: |
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405 ILCS 30/4 |
from Ch. 91 1/2, par. 904 |
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Amends the Community Services Act. Provides that if a new governmental mandate effective on or after July 1, 2007 (i) is imposed upon a private service provider, corporation, local government entity, or voluntary association providing services to persons with mental illness, persons with a developmental disability, or persons with an alcohol or drug dependency living in the community and (ii) has or will have a material adverse financial impact on the private service provider or other entity, the Department of Human Services shall negotiate a contract amendment with the private service provider or other entity to increase the maximum obligation amount or unit price to offset the material adverse financial impact of the new governmental mandate, provided that the private service provider or other entity furnishes substantial evidence to the Department of such material adverse financial impact along with a request to renegotiate based on a new governmental mandate. Provides for an appeal process. Effective July 1, 2007.
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A BILL FOR
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HB3380 |
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LRB095 08723 DRJ 28906 b |
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| AN ACT concerning health.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Community Services Act is amended by | 5 |
| changing Section 4 as follows:
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| (405 ILCS 30/4) (from Ch. 91 1/2, par. 904)
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| Sec. 4. Financing for Community Services. | 8 |
| (a) The Department of Human Services
is authorized to
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| provide financial assistance to eligible private service | 10 |
| providers,
corporations, local government entities or | 11 |
| voluntary associations for the
provision of services to persons | 12 |
| with mental illness, persons with a
developmental disability | 13 |
| and alcohol and drug dependent persons living in the
community | 14 |
| for the purpose of achieving the goals of this Act.
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| The Department shall utilize the following funding | 16 |
| mechanisms for community
services:
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| (1) Purchase of Care Contracts: services purchased on a | 18 |
| predetermined fee
per unit of service basis from private | 19 |
| providers or governmental entities. Fee
per service rates | 20 |
| are set by an established formula which covers some portion
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| of personnel, supplies, and other allowable costs, and | 22 |
| which makes some
allowance for geographic variations in | 23 |
| costs as well as for additional program
components.
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HB3380 |
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LRB095 08723 DRJ 28906 b |
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| (2) Grants: sums of money which the Department grants | 2 |
| to private providers or
governmental
entities pursuant to | 3 |
| the grant recipient's agreement to provide certain
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| services, as defined by departmental grant guidelines, to | 5 |
| an
approximate number of service
recipients. Grant levels | 6 |
| are set through consideration of personnel, supply and
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| other allowable costs, as well as other funds available to | 8 |
| the program.
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| (3) Other Funding Arrangements: funding mechanisms may | 10 |
| be established
on a pilot basis in order to examine the | 11 |
| feasibility of alternative financing
arrangements for the | 12 |
| provision of community services.
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| The Department shall strive to establish and maintain an | 14 |
| equitable system of
payment
which encourages providers to | 15 |
| improve their clients' capabilities for
independence and | 16 |
| reduces their reliance on community or State-operated
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| services. In accepting Department funds, providers shall | 18 |
| recognize
their responsibility to be
accountable to the | 19 |
| Department and the State for the delivery of services
which are | 20 |
| consistent
with the philosophies and goals of this Act and the | 21 |
| rules and regulations
promulgated under it.
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| (b) If a new governmental mandate effective on or after | 23 |
| July 1, 2007 (i) is imposed upon a private service provider, | 24 |
| corporation, local government entity, or voluntary association | 25 |
| providing services to persons with mental illness, persons with | 26 |
| a developmental disability, or persons with an alcohol or drug |
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HB3380 |
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LRB095 08723 DRJ 28906 b |
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| dependency living in the community and (ii) has or will have a | 2 |
| material adverse financial impact on the private service | 3 |
| provider, corporation, local government entity, or voluntary | 4 |
| association, the Department shall negotiate a contract | 5 |
| amendment with the private service provider, corporation, | 6 |
| local government entity, or voluntary association to increase | 7 |
| the maximum obligation amount or unit price to offset the | 8 |
| material adverse financial impact of the new governmental | 9 |
| mandate, provided that the private service provider, | 10 |
| corporation, local government entity, or voluntary association | 11 |
| furnishes substantial evidence to the Department of such | 12 |
| material adverse financial impact along with a request to | 13 |
| renegotiate based on a new governmental mandate. | 14 |
| Any private service provider, corporation, local | 15 |
| government entity, or voluntary association aggrieved by a | 16 |
| decision of the Department denying or failing to negotiate a | 17 |
| contract amendment to remedy a material adverse impact of a new | 18 |
| governmental mandate pursuant to this subsection may appeal | 19 |
| such decision by requesting an administrative hearing before an | 20 |
| administrative law judge. A private service provider, | 21 |
| corporation, local government entity, or voluntary | 22 |
| association's request for a contract amendment shall, for | 23 |
| purposes of appeal, be deemed to have been denied if a | 24 |
| determination is not received from the Department within 30 | 25 |
| days after the Department's receipt of the request. A private | 26 |
| service provider, corporation, local government entity, or |
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LRB095 08723 DRJ 28906 b |
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| voluntary association may appeal an adverse final | 2 |
| administrative decision of the Department pursuant to the | 3 |
| Administrative Review Law. | 4 |
| For the purposes of this subsection: | 5 |
| "New governmental mandate" means a statutory requirement, | 6 |
| administrative rule, regulation, assessment, executive order, | 7 |
| judicial order, or other governmental requirement that (i) was | 8 |
| not in effect when a contract was originally entered into by | 9 |
| the Department and a private service provider, corporation, | 10 |
| local government entity, or voluntary association and (ii) | 11 |
| directly or indirectly imposes an obligation upon the private | 12 |
| service provider, corporation, local government entity, or | 13 |
| voluntary association to take any action or to refrain from | 14 |
| taking any action in order to fulfill its contractual duties. | 15 |
| "Material adverse financial impact" means: (1) an increase | 16 |
| in the reasonable costs to the private service provider, | 17 |
| corporation, local government entity, or voluntary association | 18 |
| in performing a contract with the Department of the lesser of | 19 |
| (i) 3% percent of the maximum obligation amount or unit price | 20 |
| of the contract or (ii) $5,000 in the aggregate as a result of | 21 |
| all such mandates in effect during the contract year; or (2) an | 22 |
| action that affects the core purpose and primary intent of the | 23 |
| contract.
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| (Source: P.A. 88-380; 89-507, eff. 7-1-97.)
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| Section 99. Effective date. This Act takes effect July 1, | 26 |
| 2007.
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