1Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
2act to consolidate, editorially revise, and codify the public
3welfare laws of the Commonwealth," in children and youth,
4providing for purpose and for county purchase of services.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. The act of June 13, 1967 (P.L.31, No.21), known
8as the Public Welfare Code, is amended by adding a section to
9read:

10Section 701.1. Purpose.--(a) The purpose of this article
11is:

12(1) To protect children from abuse and neglect.

13(2) To provide for the care, protection, safety and
14wholesome mental and physical development of children coming
15within the provisions of 42 Pa.C.S. Ch. 63 (relating to juvenile
16matters) for children who are receiving services enumerated in
17this article.

18(3) To preserve the unity of the family whenever possible or
19to provide an alternative permanent family as soon as possible

1when the unity of the family cannot be maintained.

2(4) Consistent with the protection of the public interest,
3to provide for children committing delinquent acts, programs of
4supervision, care and rehabilitation which provide balanced
5attention to the protection of the community, the imposition of
6accountability for offenses committed and the development of
7competencies to enable children to become responsible and
8productive members of the community.

9(5) To achieve these purposes in a family environment
10whenever possible, separating the child from parents only when
11necessary for the child's welfare, safety or health or in the
12interests of public safety.

13(b) In accordance with the purposes and the mandate of 42
14Pa.C.S. Ch. 63 that the court, upon finding a child to be a
15dependent child, shall enter an order of disposition that is
16best suited to the safety, protection and physical, mental and
17moral welfare of the child, the department shall seek to
18accomplish the following objectives with respect to dependent
19children:

20(1) To increase the use of nonplacement services designed to
21prevent child abuse and neglect and to strengthen families so
22that children's safety is increased and the risk to children is
23minimized.

24(2) When placement is necessary, to use kinship care as the
25first priority. If kinship care is not available or appropriate,
26to use family foster care as an alternative.

27(3) To reduce the use of congregate-living and institutional
28placements.

29(4) To improve permanency for children and to reduce the
30duration of out-of-home placement.

1(c) In accordance with the purposes enumerated in subsection
2(a), and the mandate of 42 Pa.C.S. Ch. 63 that the court, upon
3finding a child to be a delinquent child, shall enter an order
4of disposition that is determined to be consistent with the
5protection of the public interest and best suited to the child's
6treatment, supervision, rehabilitation and welfare, and which
7provides balanced attention to the protection of the community,
8the imposition of accountability for offenses committed and the
9development of competencies to enable the child to become a
10responsible and productive member of the community, the
11department shall seek to accomplish the following objectives
12with respect to delinquent children:

13(1) To increase the use of in-home services when consistent
14with the protection of the public and the rehabilitation needs
15of delinquent children.

16(2) With respect to the placement of delinquent children:

17(i) To encourage use of the least restrictive placements
18that are consistent with the protection of the public and the
19treatment, supervision and rehabilitation needs of delinquent
20children.

21(ii) To operate and encourage the development of placement
22resources that provide for a duration of placement that is
23consistent with the protection of the public and the treatment,
24supervision and rehabilitation needs of delinquent children.

25(iii) To encourage use of community-based residential
26resources as alternatives to institutional placements when
27consistent with the protection of the public and the treatment,
28supervision and rehabilitation needs of delinquent children.

29(iv) To encourage the development of services and
30programming to facilitate the successful transition of

1delinquent children to their communities from periods of
2residential placement.

3Section 2. Section 704.1(a)(2) of the act, amended August 5,
41991 (P.L.315, No.30), is amended to read:

5Section 704.1. Payments to Counties for Services to
6Children.--(a) The department shall reimburse county
7institution districts or their successors for expenditures
8incurred by them in the performance of their obligation pursuant
9to this act and the act of December 6, 1972 (P.L.1464, No.333),
10known as the "Juvenile Act," in the following percentages:

11* * *

12(2) No less than seventy-five percent and no more than
13ninety percent of the reasonable cost including staff costs of
14child welfare services, informal adjustment services provided
15pursuant to section 8 of the act of December 6, 1972 (P.L.1464,
16No.333), known as the "Juvenile Act," and such services approved
17by the department, including but not limited to, foster home
18care, group home care, shelter care, community residential care,
19youth service bureaus, day treatment centers and service to
20children in their own home and any other alternative treatment
21programs approved by the department, including nonbasic 
22education programs providing intensified educational 
23opportunities and services to dependent and delinquent youth who 
24are under the care of the juvenile court, and who participate in 
25programs intended to enable youth to catch up to expected grade 
26level or provide career and technical training opportunities not 
27otherwise available to dependent and delinquent youth through 
28basic education programs. Educational programs and services of 
29this nature shall be eligible for reimbursement of expenses 
30under law.

1* * *

2Section 3. The act is amended by adding sections to read:

3Section 710. County Purchase of Services.--(a) To comply
4with the statutory responsibility to provide an array of
5services, county children and youth offices may elect to
6purchase services from private providers. When a county elects
7to purchase prevention, in home, foster family care, group home
8or residential or institution services from a private agency
9through purchase of service, per diem or program-funded
10agreements, the following shall apply:

11(1) Contracted rates for purchased services shall cover the
12cost incurred in delivery of the services, provided that these
13costs are deemed reasonable based on provider documentation.

14(2) Purchase-of-service contracts shall include contract
15extension language to provide for continuation of service
16provision and related payments at the last contracted rate until
17a new contract agreement is signed. The new contracted rate
18shall be retroactive to the beginning of the contracting period.

19(3) Purchase-of-service contracts shall include a timely
20payment provision that requires counties to make payment to
21private service providers within thirty days of receipt on an
22accurate invoice for services rendered.

23(b) The department shall convene a time-defined rate
24methodology task force comprised of:

25(1) The Deputy Secretary for the Office of Children, Youth
26and Families or a designee of the Deputy Secretary.

27(2) One representative from each of the Program and Fiscal
28Bureaus of the Office of Children, Youth and Families.

29(3) Two representatives from County Children and Youth
30offices.

1(4) Two representatives from County Juvenile Probation
2offices.

3(5) One representative from the County Commissioners
4Association or a county commissioner or executive.

5(6) No fewer than five private service provider agencies
6representing the diversity of purchased services.

7(7) One representative from the Pennsylvania Council of
8Children, Youth and Family Services.

9(8) One representative from the Juvenile Court Judges'
10Commission.

11(c) The task force established by subsection (b) shall
12develop guidelines for a process to determine calculation of the
13actual cost of services purchased. The task force shall be
14convened within sixty days after the effective date of this
15section and shall provide their recommendations to determine
16calculation of cost for services purchased to the General
17Assembly within nine months of being convened.

18(d) County needs-based plan and implementation budget
19requests shall reflect the actual and reasonable projected costs
20of purchased services in submissions for requested funding.

21Section 4. This act shall take effect in 60 days.