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90_HB0925
405 ILCS 30/4 from Ch. 91 1/2, par. 904
Amends the Community Services Act in provisions regarding
financing community service providers. Provides that
providers of community service shall, at a minimum,
compensate employees at the same rate used by the Department
of Mental Health and Developmental Disabilities, or its
successor agency, the Department of Human Services, for
personnel costs in the formula used by the Department for
funding the providers. Those providers who compensate
employees at some percentage less than the rate for personnel
costs in the State formula shall have their funding reduced
by that same percentage. Providers shall report to the
Department actual compensation levels for employee categories
used in the Department's formula, including salary and
benefit costs. Effective immediately.
LRB9003680SMdvA
LRB9003680SMdvA
1 AN ACT to amend the Community Services Act by changing
2 Section 4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Community Services Act is amended by
6 changing Section 4 as follows:
7 (405 ILCS 30/4) (from Ch. 91 1/2, par. 904)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 4. Financing for Community Services. The Department
10 of Mental Health and Developmental Disabilities and the
11 Illinois Department of Alcoholism and Substance Abuse in
12 their respective areas of jurisdiction are authorized to
13 provide financial assistance to eligible private service
14 providers, corporations, local government entities or
15 voluntary associations for the provision of services to
16 persons with mental illness, persons with a developmental
17 disability and alcohol and drug dependent persons living in
18 the community for the purpose of achieving the goals of this
19 Act.
20 The Department and the Illinois Department of Alcoholism
21 and Substance Abuse shall utilize the following funding
22 mechanisms for community services:
23 (1) Purchase of Care Contracts: services purchased
24 on a predetermined fee per unit of service basis from
25 private providers or governmental entities. Fee per
26 service rates are set by an established formula which
27 covers some portion of personnel, supplies, and other
28 allowable costs, and which makes some allowance for
29 geographic variations in costs as well as for additional
30 program components.
31 (2) Grants: sums of money which the Department or
-2- LRB9003680SMdvA
1 the Illinois Department of Alcoholism and Substance Abuse
2 grants to private providers or governmental entities
3 pursuant to the grant recipient's agreement to provide
4 certain services, as defined by Departmental or the
5 Illinois Department of Alcoholism and Substance Abuse
6 grant guidelines, to an approximate number of service
7 recipients. Grant levels are set through consideration of
8 personnel, supply and other allowable costs, as well as
9 other funds available to the program.
10 (3) Other Funding Arrangements: funding mechanisms
11 may be established on a pilot basis in order to examine
12 the feasibility of alternative financing arrangements for
13 the provision of community services.
14 The Department shall establish an average compensation
15 rate or rates for direct care employees to be used in
16 calculating its reimbursement formulas for private agency
17 providers. This rate shall include all compensable benefit
18 costs. The Department shall inform providers of this rate
19 within 30 days of the effective date of this amendatory Act
20 of 1997 and on July 1 of each year thereafter. Providers
21 shall assure that the average compensation for all direct
22 care employees shall be, at a minimum, equal to the rate or
23 rates used in the Department's formula for financing
24 community services. Any provider of community services that
25 compensates its employees on average less than the
26 compensation rate used in the State formula shall have its
27 financing reduced by a percentage equal to that percentage by
28 which the State financing rate exceeds the compensation paid
29 to employees.
30 Providers shall report to the Department actual
31 compensation levels for employee categories used in the
32 Department's formula for financing community services.
33 Compensation rates shall include salary and benefit costs.
34 The Department and the Illinois Department of Alcoholism
-3- LRB9003680SMdvA
1 and Substance Abuse shall strive to establish and maintain an
2 equitable system of payment which encourages providers to
3 improve their clients' capabilities for independence and
4 reduces their reliance on community or State-operated
5 services. In accepting Department or the Illinois Department
6 of Alcoholism and Substance Abuse funds, providers shall
7 recognize their responsibility to be accountable to the
8 Department or the Illinois Department of Alcoholism and
9 Substance Abuse and the State for the delivery of services
10 which are consistent with the philosophies and goals of this
11 Act and the rules and regulations promulgated under it.
12 (Source: P.A. 88-380.)
13 (Text of Section after amendment by P.A. 89-507)
14 Sec. 4. Financing for Community Services. The Department
15 of Human Services is authorized to provide financial
16 assistance to eligible private service providers,
17 corporations, local government entities or voluntary
18 associations for the provision of services to persons with
19 mental illness, persons with a developmental disability and
20 alcohol and drug dependent persons living in the community
21 for the purpose of achieving the goals of this Act.
22 The Department shall utilize the following funding
23 mechanisms for community services:
24 (1) Purchase of Care Contracts: services purchased
25 on a predetermined fee per unit of service basis from
26 private providers or governmental entities. Fee per
27 service rates are set by an established formula which
28 covers some portion of personnel, supplies, and other
29 allowable costs, and which makes some allowance for
30 geographic variations in costs as well as for additional
31 program components.
32 (2) Grants: sums of money which the Department
33 grants to private providers or governmental entities
34 pursuant to the grant recipient's agreement to provide
-4- LRB9003680SMdvA
1 certain services, as defined by departmental grant
2 guidelines, to an approximate number of service
3 recipients. Grant levels are set through consideration of
4 personnel, supply and other allowable costs, as well as
5 other funds available to the program.
6 (3) Other Funding Arrangements: funding mechanisms
7 may be established on a pilot basis in order to examine
8 the feasibility of alternative financing arrangements for
9 the provision of community services.
10 The Department shall establish an average compensation
11 rate or rates for direct care employees to be used in
12 calculating its reimbursement formulas for private agency
13 providers. This rate shall include all compensable benefit
14 costs. The Department shall inform providers of this rate
15 within 30 days of the effective date of this amendatory Act
16 of 1997 and on July 1 of each year thereafter. Providers
17 shall assure that the average compensation for all direct
18 care employees shall be, at a minimum, equal to the rate or
19 rates used in the Department's formula for financing
20 community services. Any provider of community services that
21 compensates its employees on average less than the
22 compensation rate used in the State formula shall have its
23 financing reduced by a percentage equal to that percentage by
24 which the State financing rate exceeds the compensation paid
25 to employees.
26 Providers shall report to the Department actual
27 compensation levels for employee categories used in the
28 Department's formula for financing community services.
29 Compensation rates shall include salary and benefit costs.
30 The Department shall strive to establish and maintain an
31 equitable system of payment which encourages providers to
32 improve their clients' capabilities for independence and
33 reduces their reliance on community or State-operated
34 services. In accepting Department funds, providers shall
-5- LRB9003680SMdvA
1 recognize their responsibility to be accountable to the
2 Department and the State for the delivery of services which
3 are consistent with the philosophies and goals of this Act
4 and the rules and regulations promulgated under it.
5 (Source: P.A. 88-380; 89-507, eff. 7-1-97.)
6 Section 95. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.