HB 0555

AN ACT relative to the billing of counties for certain expenses by the department of health and human services and relative to costs of certain juvenile placements.

SPONSORS: Rep. Alger, Graf 9; Rep. N. Kaen, Straf 7; Rep. Cobb, Graf 5; Rep. Gilmore, Straf 11; Sen. Gordon, Dist 2; Sen. Johnson, Dist 3; Sen Roberge, Dist 9

This bill declares that the department of health and human services shall not bill a county for expenses unless the department submits an invoice to such county within 18 months of the date of incurring such expense.

This bill changes the date monthly payments are due from the counties to the state for certain services from 30 days to 45 days of notice such payments are due.

This bill also requires a memorandum of understanding to be negotiated among the department of youth development services, the juvenile justice unit of the department of health and human services, and the counties relative to costs associated with certain juvenile placements.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to the billing of counties for certain expenses by the department of health and human services and relative to costs of certain juvenile placements.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Payment of Expenses; Counties. Amend RSA 126-A:3 by inserting after paragraph II the following new paragraph:

II-a. Notwithstanding any provision of law to the contrary, the department shall not require payment and counties shall have no obligation to pay and no cause of action for payment shall be maintained against the counties, for payment for any product or service sold, furnished, or leased to the department or any other person on behalf of the department, unless an invoice for such product or service has been submitted to the counties for payment within 18 months of the date of delivery or provision of the product or service.

2 Reimbursement of Funds for Persons Eligible to Receive Nursing Home Services; Monthly Payments. Amend RSA 167:18-b, I to read as follows:

I. All expenditures in carrying out the purposes of this chapter or RSA 161 relative to old age assistance or aid to the permanently and totally disabled recipients who are in nursing homes shall be made in the first instance from the public assistance fund hereby created, but each county shall make monthly payments to the state for the amounts due under this section within [30] 45 days from notice thereof and shall reimburse said fund for all assistance granted to persons for which such county is liable, to the extent of 50 percent of the non-federal share, except that no charges shall be made for the non-federal share for recipients in state institutions and intermediate care facilities for the mentally retarded (ICF-MR) serving developmentally impaired persons approved by the department of health and human services.

170-G:5-a County Reimbursement. County payments due under RSA 169-B:40, 169-C:27 and 169-D:29 shall be paid to the department of health and human services on a monthly basis within [30] 45 days' notice of the amount due to the state. Delinquent payments due under these chapters, with interest at the rate of 12 percent per annum, may be recovered by action in a court of competent jurisdiction against the political subdivision liable therefor or may, at the request of the state agency, be deducted from any other moneys payable to such subdivision by any department or agency of the state.

4 Memorandum of Understanding. County governments need timely and accurate information to enable effective budget planning for their portion of the costs of placements of juveniles at the youth development center (YDC), youth detention services unit (YDSU), and, when applicable, the Tobey School. County governments should also have the opportunity to address and help resolve those factors that influence the costs of operation of these juvenile facilities. Therefore, after the state receives payment of arrearages owed by the counties to the state for their portion of costs of placements of juveniles at the YDC, YDSU, and the Tobey School for fiscal years 1999, 2000, and 2001, the state agency having administrative direction and control of these juvenile facilities shall enter into a memorandum of understanding with the designated representatives of the New Hampshire Association of Counties to provide for the flow of the necessary financial information to the counties relating to the costs of operation of the facilities. The memorandum of understanding shall be entered into and made effective no later than 60 days after the effective date of this section and shall include, at a minimum, the following:

(a) The form and schedule for the provision to the counties of information on daily census and the established and proposed per diem rates for the facilities, including information on fixed and variable costs incurred in the operation of the facilities upon which the per diem rates are based and the methodology used to calculate the rates.

(b) A process for allowing the counties, on a regular basis, to address and help resolve issues relating to the costs of operation and, accordingly, the per diem rates for the facilities.

5 New Paragraph; Delinquent Children; Limitation on Liability for Expenses. Amend RSA 169-B:40 by inserting after paragraph VIII the following new paragraph:

IX. Notwithstanding any provision of law to the contrary, no county government shall be charged per diem rates for its portion of costs of placement of juveniles at the youth development center, the youth detention services unit, and, when applicable, the Tobey School, which are based upon an annual average daily census at each unit which is less than 80 percent of the unit's capacity.

6 New Paragraph; Child Protection Act; Limitation on Liability for Expenses. Amend RSA 169-C:27 by inserting after paragraph VIII the following new paragraph:

7 New Paragraph; Children in Need of Services; Limitation on Liability for Expenses. Amend RSA 169-D:29 by inserting after paragraph VIII the following new paragraph:

8 Contingency. Sections 4-7 of this act shall be effective upon receipt by the state of all arrearages, excluding arrearages attributable to fiscal year 1998 and excluding all interest, for fiscal years 1999, 2000, and 2001 owed by the counties to the state for their portion of costs of placements of juveniles at the YDC, YDSU, and the Tobey School, as certified by the commissioner of administrative services to the secretary of state and the director of legislative services.

I. Sections 4-7 of this act shall take effect as provided in section 8 of this act.

AN ACT relative to the billing of counties for certain expenses by the department of health and human services.

The Department of Health and Human Services indicates this bill will decrease state revenues by $180,000 in FY 2002 and each year thereafter. County revenue will increase by $180,000 in FY 2002 and in each year thereafter. The NH Association of Counties indicates this bill will increase county revenue by $140,280 and decrease state revenue by $140,280 in FY 2002 and each year thereafter. There will be no fiscal impact on state, county and local expenditures or local revenues.

The Department of Health and Human Services computed 15 days of interest on a monthly balance of approximately $6,000,000 and estimated the state would earn $180,000 less interest each year.

The NH Association of Counties computed 15 days of interest based on an average monthly balance of $5,000,000 and estimated the counties would earn an additional $140,280.