Req. No. 5236 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) HOUSE BILL 1034 By: Lawson AS INTRODUCED An Act relating to children; amending 10A O.S. 2021, Section 2-7-306, which relates to Youth Services Agencies; providing which office ma y ask for certain funds; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA: SECTION 1. AMENDATORY 10A O.S. 2021, Section 2 -7-306, is amended to read as follows: Section 2-7-306. A. Funds specifically appropriated to the Office of Juvenile Affairs for designated Youth Services Agency programs for both the Office of Juvenile Affairs and the Department of Human Services or funds allocated by the Department of Human Services for designated Youth Services programs and provided to the Office of Juvenile Affairs by interagency agreement shall be made available through contracts negotiated by the Office of Juvenile Affairs to organizations designated by the Board of Juvenile Af fairs as "Youth Services Agencies ". All core community -based programs and Req. No. 5236 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 services to be performed by a Youth Services Ag ency during a contract period shall be included in one contract or contract extension for that period. Designations of Youth Services Agencies by the Board shall be granted based on community needs, as indicated in the State Plan for Youth Services Agenci es which shall be adopted by rule by the Board. The State Plan for Youth Services Agencies shall be adopted in accordance with criter ia approved by the Board of Juvenile Affairs after full consideration of any recommendations of the Department of Human Se rvices and the Oklahoma Association of Youth Services. The criteria and plan adopted by the Board shall designate community-based Youth Services Agency Service Areas that will serve as the primary catchment area for each Youth Services Agency. Until the criteria is established by the Board, the criteria established by the Commission for Human Services shall remain in effect. The crite ria for designation of Youth Services Agencies shall include but shall not be limited to: 1. Capability to deliver all or part of the compensable services enumerated in Section 2 -7-303 of this title, if the Youth Services Agency is to provide such service s; 2. Capability to deliver all or part of the compensable children's services that the Department of Human Services is authorized to provide for by contract with a private agency, if the Youth Services Agency is to provide such services; Req. No. 5236 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3. Adequate and qualified staff who are available as needed, within a reasonable time after being contacted for services in each county served by the agency; 4. Adequate services in the Youth Services Agency Area served by the agency; 5. Financial viability; 6. A documented need for the local services to be offered as determined by a local needs assessment for the Youth Services Agency Service Area that shall be reviewed and approved or modified by the Board and included in the State Plan for Youth Services Agencies; and 7. Any negative impact on the ability to provide services or the financial viability of an existing Youth Services Age ncy. As used in this section, "financial viability" means the ability of a Youth Services Agency to continue to achieve its operating objectives and fulfill its mission over the long term. When determining the financial viability of a Youth Services Agenc y, the Office of Juvenile Affairs shall develop an analysis that takes into consideration the three (3) previous fiscal years ' financial audits, if available; the previous fiscal year program audits, if available; the current fiscal year financial position ; and one-year future revenue and expenditure projection. B. The criteria for designation of Youth Services Agencies also may include: Req. No. 5236 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Successful completion of an initial peer review by the Oklahoma Association of Youth Services or another Oklahoma no nprofit corporation whose membership consists solely of Youth Services Agencies and of whom at least a majority of Youth Services Agen cies are members; and 2. Such other criteria as the Board of Juvenile Affairs determines appropriate. C. Each Youth Services Agency receiving, by grant or contract from the Department of Human Services on June 30, 1995, state funds specifically appropria ted for community-based youth services programs, is hereby automatically designated a "Youth Services Agency". D. The Board of Juvenile Affairs, on recommendation of the Office of Juvenile Affairs, may terminate the designation of a Youth Services Agency that: 1. Is seriously deficient in the administration of its program; 2. Loses financial viability; or 3. Fails to successfully complete the annual peer review process by the Oklahoma Association of Youth Services or another Oklahoma nonprofit corporati on whose membership consists solely of Youth Services Agencies and of whom at least a majority of Youth Services Agencies are members. Before the Board of Juvenile Affairs terminates the designation of a Youth Services Agency, the Office of Juvenile Affair s shall Req. No. 5236 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 complete a report documenting its reasons for the termination. The report shall be submitted to the Board for rev iew. The report shall contain an analysis of the program administration, financial viability and most recent peer review report of th e Youth Services Agency. The Office of Juvenile Affairs shall also develop a plan to ensure that services provided by the Youth Services Agency whose designation is being terminated shall continue to be provided by another Youth Services Agency or agencie s. In developing the plan, the Office of Juvenile Affairs shall give full consideration to any recommendations of the Okl ahoma Association of Youth Services. The plan shall be submitted to the Board as part of the report documenting the reasons for termi nation of the Youth Services Agency by the Office of Juvenile Affairs. Any applicant organization denied designation as a Youth Services Agency or any Youth Services Agency whose designation as a Youth Services Agency is being terminated, is entitled to an individual proceeding as provided in Article II of the Administrative Procedures Act. E. No Youth Services Agency shall be eligible to receive funding until the beginning of the fiscal year after it receives its designation as a Youth Services Agency unl ess it is replacing a Youth Services Agency whose designation has been terminated. No Youth Services Agency shall receive funding for the first time if Req. No. 5236 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 such funding will result in lowering the contract amount from the previous fiscal year for any existing Youth Services Agency. F. The Office of Juvenile Affairs shall be the sole administrator of Youth Services Agency contra cts. Any contracting procedure shall include a procedure for converting all contracts to a system of payment which will be structured in a manner that will allow for the receipt of all available federal funds. Provided, the Office of Juvenile Affairs sha ll make no requirement that would require a juvenile to be inappropriately diagnosed for the purpose of receiving federal reimbursemen t for services. G. The Office of Juvenile Affairs and the Department of Human Services shall enter into a cooperative agr eement that establishes procedures to ensure the continuation of services provided for in paragraph 2 of subsection A of this section by Youth Services Agencies. The Office of Juvenile Affairs shall consult with the Department of Human Services when asses sing the capability of a Youth Services Agency to deliver services pursuant to paragraph 2 of subsection A of this section. H. Funds for the support of Youth Services Agencies shall be authorized by the Office of Juvenile Affairs only on the basis of cost reimbursement performance contracts or fee -for-service contracts as requested by the youth services agency . If a Youth Services Agency provides some services on a fee -for-services basis and some services on a cost reimbursement basis, no cost which has Req. No. 5236 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 been included as part of the rate for services provided on a fee- for-service basis shall be reimbursable under the cost reimbursement portion of the contract. Fees charged for annual peer reviews shall be reimbursable. I. The Board may establish a fixed a nd uniform rate for any community-based prevention service, including services to individuals, groups, and community relations directe d toward the larger community, so long as the segment of the larger community or target audience of persons to benefit is identified and the specific prevention activities to be per formed are described in the rate. J. Contracts for the support of, or for services by, Youth Services Agencies shall be negotiated in the following manner: 1. The local board of the Youth Service s Agency, based upon its knowledge and assessment of the ne eds of the community, shall prepare and present to the Office of Juvenile A ffairs a proposal to provide community-based services to juveniles and families in the youth services service area in whic h it is located. The proposal shall be specific in terms o f its program objectives and goals and the services the Youth Services Agen cy proposes to render; 2. Upon receipt of the proposal of the Youth Services Agency, the Office of Juvenile Affairs shall determine if the proposal meets the criteria adopted by th e Board of Juvenile Affairs in the State Plan for Youth Services Agencies a nd, within the resources available, meets the need for community -based services in the youth Req. No. 5236 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 services service area. If no State Plan for Youth Services exists, the proposal shall b e deemed to meet the need for community -based services in the youth service s area; 3. Contracts shall require performance of a specific service or services to be performed. Where the services can not be broken down into units, specifically measurable and reviewable services shall be stated. Contracts may contain requirements of performance based upon measurable quality outcome indicators. Documentation required for monitoring and evaluation of th e contract shall be consistent with the terms of the contra ct, shall be in accordance with generally accepted governmental accounting practices, and so far as possible, sufficient for the Office of Juvenile Affairs to monitor the performance of the contrac t without being overly burdensome to the Youth Services Age ncy. The documentation to be required is the proper subject of negotiation as part of the contracts, and the parties may rely on the Office of Management and Enterprise Services for assistance if they are unable to reach agreement; 4. The Office of Juven ile Affairs and the Youth Services Agency shall negotiate the final terms a nd enter into the contract. Youth Services Agencies may authorize the Oklahoma Association of Youth Services or another O klahoma nonprofit corporation, whose membership consists solely of Youth Services Agencies and of whom at least a majority of Youth Se rvices Agencies are members, to negotiate on their behalf; and Req. No. 5236 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. The Office of Juvenile Affairs and a Youth Services Age ncy may agree to extend their fiscal year 2006 contracts fo r a period not to exceed one (1) year in order to implement the provisions of this subsection. The amount of money in the contracts may be amended to reflect any change in the money appropriated f or fiscal year 2007 for community -based service agencies. K. Contracts with Youth Services Agencies for community -based services shall be for a period of twelve (12) months, beginning at the first of each fiscal year, and renewable on an annual basis. Contracts shall be considered during the third and fourth qua rter of the fiscal year for contracting the following year. Consideration for renewal shall include a review of the performance of the current contract including the annual peer review. If the Of fice of Juvenile Affairs determines the contractual relatio nship shall be renewed, it shall be in a new contract for the upcoming fisc al year and may or may not contain the same terms, conditions, form and format as the previous contract. Any change from the contract of the previous year that is proposed by the Y outh Services Agency or the Office of Juvenile Affairs shall be the subject of negotiation at the request of either party. L. The Oklahoma Association of Youth Services, or another Oklahoma nonprofit corporation whose membership consists solely of Youth Services Agencies and of whom at least a majority of Youth Services Agencies are members may provide technical assistance to Req. No. 5236 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the Youth Services Agencies in the preparation and presentation of their proposals or negotiations as requested by a Youth Services Agency. M. The Office of Juvenile Affairs is authorized to contract with the Oklahoma Association of Youth Services or another Oklahoma nonprofit corporation whose membership consists solely of Yo uth Services Agencies and of whom at least a majority of Yo uth Services Agencies are members for evaluation, training and program mate rials and for statewide office support, including rental of office space and general technical assistance for Youth Servic es Agencies with which the Office of Juvenile Affairs has c ontracts. SECTION 2. This act shall become effective November 1, 2023. 59-1-5236 CMA 12/28/22