103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4010 Introduced , 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 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4010 Introduced , by Rep. Terra Costa Howard SYNOPSIS AS INTRODUCED: 20 ILCS 505/5a from Ch. 23, par. 5005a 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 LRB103 31176 KTG 57994 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4010 Introduced , by Rep. Terra Costa Howard SYNOPSIS AS INTRODUCED: 20 ILCS 505/5a from Ch. 23, par. 5005a 20 ILCS 505/5a from Ch. 23, par. 5005a 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 LRB103 31176 KTG 57994 b LRB103 31176 KTG 57994 b A BILL FOR HB4010LRB103 31176 KTG 57994 b HB4010 LRB103 31176 KTG 57994 b HB4010 LRB103 31176 KTG 57994 b 1 AN ACT concerning State government. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Children and Family Services Act is amended 5 by 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 9 Children and Family Services shall pay 100% of the reasonable 10 cost pursuant to a written contract negotiated between the 11 Department and the agency furnishing the services (which shall 12 include but not be limited to the determination of reasonable 13 cost, the services being purchased and the duration of the 14 agreement) include, but are not limited to: 15 SERVICE 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; 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4010 Introduced , by Rep. Terra Costa Howard SYNOPSIS AS INTRODUCED: 20 ILCS 505/5a from Ch. 23, par. 5005a 20 ILCS 505/5a from Ch. 23, par. 5005a 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 LRB103 31176 KTG 57994 b LRB103 31176 KTG 57994 b A BILL FOR 20 ILCS 505/5a from Ch. 23, par. 5005a LRB103 31176 KTG 57994 b HB4010 LRB103 31176 KTG 57994 b HB4010- 2 -LRB103 31176 KTG 57994 b HB4010 - 2 - LRB103 31176 KTG 57994 b HB4010 - 2 - LRB103 31176 KTG 57994 b 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. 9 OBJECT 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. 21 ADMINISTRATIVE COSTS 22 Program Administration; 23 Supervision and Consultation; 24 Inspection and Monitoring for purposes of issuing HB4010 - 2 - LRB103 31176 KTG 57994 b HB4010- 3 -LRB103 31176 KTG 57994 b HB4010 - 3 - LRB103 31176 KTG 57994 b HB4010 - 3 - LRB103 31176 KTG 57994 b 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, 9 procedure, or contract term that reduces, limits, or restricts 10 reimbursement to less than 100% of the reasonable cost for any 11 object expenses, service activities, or administrative costs 12 described in this Section. 13 To ensure provider agencies have access to cash reserves 14 for operations in the face of rising costs and increased 15 expenses, provider agencies shall be allowed to retain all 16 moneys received in excess of actual reimbursable costs so long 17 as the provider agency invests the excess revenue in, and uses 18 the excess revenue for any of the following: (i) direct 19 service, (ii) object expenses, (iii) service activities, (iv) 20 administrative costs, or (v) increasing positive cash flow, up 21 to 3-months cash on hand, to ensure available funds for 22 operations during the current and next fiscal year. The use of 23 excess revenue shall be subject to review and audit consistent 24 with the Department's certified audits, cost reports, and desk 25 review procedures in the usual course. Reimbursement of 26 administrative costs other than inspection and monitoring for HB4010 - 3 - LRB103 31176 KTG 57994 b HB4010- 4 -LRB103 31176 KTG 57994 b HB4010 - 4 - LRB103 31176 KTG 57994 b HB4010 - 4 - LRB103 31176 KTG 57994 b 1 purposes of issuing licenses may not exceed 20% of the costs 2 for other services. 3 The Department may offer services to any child or family 4 with respect to whom a report of suspected child abuse or 5 neglect has been called in to the hotline after completion of a 6 family assessment as provided under subsection (a-5) of 7 Section 7.4 of the Abused and Neglected Child Reporting Act 8 and the Department has determined that services are needed to 9 address the safety of the child and other family members and 10 the risk of subsequent maltreatment. Acceptance of such 11 services shall be voluntary. 12 All Object Expenses, Service Activities and Administrative 13 Costs are allowable. 14 If a survey instrument is used in the rate setting 15 process: 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 - 4 - LRB103 31176 KTG 57994 b HB4010- 5 -LRB103 31176 KTG 57994 b HB4010 - 5 - LRB103 31176 KTG 57994 b 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 5 100% of the reasonable costs of research and valuation focused 6 exclusively on services to youth in care. Such research 7 projects must be approved, in advance, by the Director of the 8 Department. 9 In addition to reimbursements otherwise provided for in 10 this Section, the Department of Human Services shall, in 11 accordance with annual written agreements, make advance 12 quarterly disbursements to local public agencies for child day 13 care services with funds appropriated from the Local Effort 14 Day Care Fund. 15 Neither the Department of Children and Family Services nor 16 the Department of Human Services shall pay or approve 17 reimbursement for day care in a facility which is operating 18 without a valid license or permit, except in the case of day 19 care homes or day care centers which are exempt from the 20 licensing 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 24 Children and Family Services shall pay 100% of the reasonable 25 cost pursuant to a written contract negotiated between the HB4010 - 5 - LRB103 31176 KTG 57994 b HB4010- 6 -LRB103 31176 KTG 57994 b HB4010 - 6 - LRB103 31176 KTG 57994 b HB4010 - 6 - LRB103 31176 KTG 57994 b 1 Department and the agency furnishing the services (which shall 2 include but not be limited to the determination of reasonable 3 cost, the services being purchased and the duration of the 4 agreement) include, but are not limited to: 5 SERVICE 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. 21 OBJECT EXPENSES 22 Professional Fees and Contract Service Payments; 23 Supplies; 24 Technology infrastructure, including computers, HB4010 - 6 - LRB103 31176 KTG 57994 b HB4010- 7 -LRB103 31176 KTG 57994 b HB4010 - 7 - LRB103 31176 KTG 57994 b HB4010 - 7 - LRB103 31176 KTG 57994 b 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. 9 ADMINISTRATIVE 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, 21 procedure, or contract term that reduces, limits, or restricts 22 reimbursement to less than 100% of the reasonable cost for any 23 object expenses, service activities, or administrative costs 24 described in this Act. 25 To ensure provider agencies have access to cash reserves HB4010 - 7 - LRB103 31176 KTG 57994 b HB4010- 8 -LRB103 31176 KTG 57994 b HB4010 - 8 - LRB103 31176 KTG 57994 b HB4010 - 8 - LRB103 31176 KTG 57994 b 1 for operations in the face of rising costs and increased 2 expenses, provider agencies shall be allowed to retain all 3 moneys received in excess of actual reimbursable costs so long 4 as the provider agency invests the excess revenue in, and uses 5 the excess revenue for any of the following: (i) direct 6 service, (ii) object expenses, (iii) service activities, (iv) 7 administrative costs, or (v) increasing positive cash flow, up 8 to 3-months cash on hand, to ensure available funds for 9 operations during the current and next fiscal year. The use of 10 excess revenue shall be subject to review and audit consistent 11 with the Department's certified audits, cost reports, and desk 12 review procedures in the usual course. 13 Reimbursement of administrative costs other than inspection 14 and monitoring for purposes of issuing licenses may not exceed 15 20% of the costs for other services. 16 The Department may offer services to any child or family 17 with respect to whom a report of suspected child abuse or 18 neglect has been called in to the hotline after completion of a 19 family assessment as provided under subsection (a-5) of 20 Section 7.4 of the Abused and Neglected Child Reporting Act 21 and the Department has determined that services are needed to 22 address the safety of the child and other family members and 23 the risk of subsequent maltreatment. Acceptance of such 24 services shall be voluntary. 25 All Object Expenses, Service Activities and Administrative 26 Costs are allowable. HB4010 - 8 - LRB103 31176 KTG 57994 b HB4010- 9 -LRB103 31176 KTG 57994 b HB4010 - 9 - LRB103 31176 KTG 57994 b HB4010 - 9 - LRB103 31176 KTG 57994 b 1 If a survey instrument is used in the rate setting 2 process: 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 18 100% of the reasonable costs of research and valuation focused 19 exclusively on services to youth in care. Such research 20 projects must be approved, in advance, by the Director of the 21 Department. 22 In addition to reimbursements otherwise provided for in 23 this Section, the Department of Human Services shall, in 24 accordance with annual written agreements, make advance 25 quarterly disbursements to local public agencies for child day 26 care services with funds appropriated from the Local Effort HB4010 - 9 - LRB103 31176 KTG 57994 b HB4010- 10 -LRB103 31176 KTG 57994 b HB4010 - 10 - LRB103 31176 KTG 57994 b HB4010 - 10 - LRB103 31176 KTG 57994 b 1 Day Care Fund. 2 Neither the Department of Children and Family Services nor 3 the Department of Human Services shall pay or approve 4 reimbursement for day care in a facility which is operating 5 without a valid license or permit, except in the case of day 6 care homes or day care centers which are exempt from the 7 licensing requirements of the "Child Care Act of 1969". 8 The rates paid to day care providers by the Department of 9 Children and Family Services shall match the rates paid to 10 child care providers by the Department of Human Services under 11 the child care assistance program, including base rates and 12 any relevant rate enhancements. 13 (Source: P.A. 102-926, eff. 7-1-23.) 14 Section 95. No acceleration or delay. Where this Act makes 15 changes in a statute that is represented in this Act by text 16 that is not yet or no longer in effect (for example, a Section 17 represented by multiple versions), the use of that text does 18 not accelerate or delay the taking effect of (i) the changes 19 made by this Act or (ii) provisions derived from any other 20 Public Act. HB4010 - 10 - LRB103 31176 KTG 57994 b