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," further providing for
4services by county children and youth offices.

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 704.3. Purchase of Service Contracts.--To comply
11with statutory responsibility to provide an array of services,
12county children and youth offices may elect to purchase services
13from private providers. When counties elect to purchase
14prevention, in-home, foster family care, group-home or
15residential or institution services from private agencies
16through purchase of service, per diem or program-funded
17agreements, the following provisions apply:

18(1) Contracted rates for purchased services shall cover the
19cost incurred in delivery of such services, providing that these

1costs are deemed reasonable based on provider documentation.

2(2) Purchase-of-service contracts shall include contract
3extension language to provide for continuation of service
4provisions and related payments at the last contracted rate
5until a new contract agreement is signed. The new contracted
6rate is to be retroactive to the beginning of the contracting
7period.

8(3) Purchase-of-service contracts shall include a "timely
9payment" provision, obligating counties to make payment to
10private service providers within ninety days of receipt on an
11accurate invoice for services rendered. Counties failing to make
12timely payment, within ninety days of billing, for private
13agency-delivered, nondisputed services shall be required to pay
14an additional amount of one percent of the outstanding balance
15due to the service provider for each month or portion of each
16month during which an outstanding balance remains due.

17(4) A cost task force shall be appointed by the General
18Assembly to include representatives from the Department of
19Public Welfare, county children and youth and juvenile probation
20offices, private service providers and other stakeholders and
21shall be charged to develop a protocol to determine calculation
22of cost for services purchased.

23(5) County needs-based plan and implementation budget
24requests may reflect the actual costs of purchased services in
25submissions for requested funding.

26Section 2. This act shall take effect in 60 days.