State of Illinois
90th General Assembly
Legislation

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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.

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