AB327: Bill Text

AB327,7,2 a. Requiring that contracts for rate-based services under this subsection allow a provider to retain from any surplus revenue up to 5 percent of the total revenue received under the contract, or a different percentage rate determined by the department. The percentage rate established under this subdivision shall apply uniformly to all rate-based service contracts under this subsection.

AB327,7,4 b. Establishing a procedure for reviewing rate-based service contracts to determine whether a contract complies with the provisions of this subsection.

AB327,14 Section 14. 49.34 (5m) (em) of the statutes is amended to read:

AB327,7,12 49.34 (5m) (em) Notwithstanding par. (b) 1. and 2., a county department under s. 46.215, 51.42, or 51.437 providing client services in a county having a population of 750,000 or more or a nonstock, nonprofit corporation providing client services in such a county may not retain a surplus generated by a rate-based service or accumulate funds from more than one contract period for a rate-based service from revenues that are used to meet the maintenance-of-effort requirement under the federal temporary assistance for needy families program under 42 USC 601 to 619.

AB327,15 Section 15. 49.343 (5) (c) of the statutes is amended to read:

AB327,7,15 49.343 (5) (c) The identification of the measurements specified in sub. (6) (a) and the development of the payment levels specified in sub. (6) (a).

AB327,16 Section 16. 49.343 (6) (a) (intro.) and 1. of the statutes are consolidated, renumbered 49.343 (6) (a) and amended to read:

AB327,7,23 49.343 (6) (a) For purposes of implementing a performance-based contracting system, the department, in cooperation with the advisory committee created under sub. (5), shall do all of the following: 1. Identify identify measurements by which to evaluate the performance of providers in meeting both the goals for the children placed in their care and the goals for the out-of-home care system in this state and adjust, as needed, those measurements.

AB327,17 Section 17. 49.343 (6) (a) 2. of the statutes is repealed.

AB327,18 Section 18. 49.343 (6) (b) of the statutes is repealed.

AB327,19 Section 19. 49.343 (6) (c) and (d) of the statutes are amended to read:

AB327,8,6 49.343 (6) (c) Beginning on January 1, 2011, the department shall select a representative sample of providers and evaluate the performance of those providers in attaining the measurements identified under par. (a) 1 . Based on that evaluation, the department, in consultation with the advisory committee created under sub. (5), shall adjust, as needed, those measurements by December 31, 2011.

AB327,8,12 (d) Beginning on January 1, 2013, the department shall evaluate the performance of all providers in this state in attaining the measurements identified under par. (a) 1 . Based on that evaluation, the department, in consultation with the advisory committee created under sub. (5), shall adjust, as needed, those measurements by December 31, 2013, and in subsequent years as determined necessary by the department.

AB327,20 Section 20. 301.08 (2) (e) of the statutes is amended to read:

AB327,8,16 301.08 (2) (e) The Except as provided in par. (em), the purchaser shall recover from provider agencies money paid in excess of the conditions of the contract from subsequent payments made to the provider.

AB327,21 Section 21. 301.08 (2) (em) of the statutes is created to read:

AB327,8,18 301.08 (2) (em) 1. In this paragraph:

AB327,8,24 a. “Provider" means a nonstock corporation organized under ch. 181 that is a nonprofit corporation, as defined in s. 181.0103 (17), and that contracts under this section to provide client services on the basis of a unit rate per client service or a county department under s. 46.215, 46.22, 46.23, 51.42, or 51.437 that contracts under this section to provide client services on the basis of a unit rate per client service.

AB327,9,5 b. “Rate-based service" means a service or a group of services, as determined by the department, that is reimbursed through a prospectively set rate and that is distinguishable from other services or groups of services by the purpose for which funds are provided for that service or group of services and by the source of funding for that service or group of services.

AB327,9,11 2. If revenue under a contract for the provision of a rate-based service exceeds allowable costs incurred in the contract period, the contract shall allow the provider to retain from the surplus up to 5 percent of the revenue received under the contract unless a uniform rate is established by rule under subd. 7., in which case the contract shall allow the provider to retain the uniform percentage rate established by the rule. The retained surplus is the property of the provider.

AB327,9,22 3. If on December 31 of any year the provider's accumulated surplus from all contract periods ending during that year for a rate-based service exceeds the allowable retention rate under subd. 2., the provider shall provide written notice of that excess to all purchasers of the rate-based service. Upon the written request of such a purchaser received no later than 6 months after the date of the notice, the provider shall refund the purchaser's proportional share of that excess. If the department determines based on an audit or fiscal review that the amount of the excess identified by the provider was incorrect, the department may seek to recover funds after the 6-month period has expired. The department shall commence any audit or fiscal review under this subdivision within 6 years after the end of the contract period.

AB327,9,25 5. Notwithstanding subd. 2., a county department under s. 46.215 providing client services in a county having a population of 750,000 or more or a nonstock, nonprofit corporation providing client services in such a county may not retain a surplus generated by a rate-based service or accumulate funds from more than one contract period for a rate-based service from revenues that are used to meet the maintenance-of-effort requirement under the federal temporary assistance for needy families program under 42 USC 601 to 619.

AB327,10,12 6. All providers that are subject to this paragraph shall comply with any financial reporting and auditing requirements that the department may prescribe. Those requirements shall include a requirement that a provider provide to any purchaser and the department any information that the department needs to claim federal reimbursement for the cost of any services purchased from the provider and a requirement that a provider provide audit reports to any purchaser and the department according to standards specified in the provider's contract and any other standards that the department may prescribe.

AB327,22 Section 22. 301.08 (2) (em) 7. of the statutes is created to read:

AB327,10,16 301.08 (2) (em) 7. The department, in consultation with the department of health services and the department of children and families, shall promulgate rules to implement this paragraph including all of the following:

AB327,10,21 a. Requiring that contracts for rate-based services under this subsection allow a provider to retain from any surplus revenue up to 5 percent of the total revenue received under the contract, or a different percentage rate determined by the department. The percentage rate established under this subdivision shall apply uniformly to all rate-based service contracts under this paragraph.

AB327,10,23 b. Establishing a procedure for reviewing rate-based service contracts to determine whether a contract complies with the provisions of this paragraph.

AB327,23 Section 23. Nonstatutory provisions.

AB327,11,17 (1) Rate-based service contracts. If on the effective date of this subsection, the amount accumulated by a provider, as defined in sections 46.036 (5m) (a) 1., 49.34 (5m) (a) 1., and 301.08 (2) (em) 1. a. of the statutes, from all contract periods ending before that date for all rate-based services, as defined in sections 46.036 (5m) (a) 2., 49.34 (5m) (a) 2., and 301.08 (2) (em) 1. b. of the statutes, provided by the provider exceeds 10 percent of the provider's total contract amount for all rate-based services in the year before the effective date of this subsection, the provider shall provide written notice of that excess to all purchasers of that rate-based service and, upon the written request of such a purchaser received no later than 6 months after the date of the notice, shall return to the purchaser the purchaser's proportional share of that excess. If the department of health services under section 46.036 (5m) of the statutes, the department of children and families under section 49.34 (5m) of the statutes, or the department of corrections under section 301.08 (2) (em) of the statutes determines based on an audit or fiscal review that the amount of the excess identified by the provider was incorrect, the department may seek to recover funds after the 6-month period has expired. The department shall commence any audit or fiscal review under this subsection within 6 years after the end of the contract period.

AB327,24 Section 24. Initial applicability.

AB327,11,20 (1) Rate-based service contracts. This act first applies to a contract under which a provider commences performance on the effective date of this subsection.

AB327,25 Section 25. Effective date.

AB327,11,23 (1) Rate-based service contracts. This act takes effect on the January 1 after publication.

AB327,11,24 (End)