AN ACT ESTABLISHING A COMMUNITY PROVIDER RESCUE FUND ACCOUNT, A COMMUNITY-BASED SERVICES COMMISSION AND A GRANT PROGRAM FOR NONPROFIT ORGANIZATIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2009) There is established an account to be known as the "community provider rescue fund" which shall be a separate, nonlapsing account within the General Fund. The State Treasurer shall administer the account. The Secretary of the Office of Policy and Management shall make funds available in the account to other state agencies, including the Department of Developmental Services, the Department of Children and Families, the Department of Mental Health and Addiction Services, the Judicial Department, the Department of Social Services, the Department of Correction, the Department of Public Health and the Children's Trust Fund, for grants to community providers under purchase of service contracts. Such grants may be used to: (1) Provide an immediate remedy to budget shortfalls for community providers under purchase of service contracts; (2) establish a stable funding system for such community providers; and (3) establish a consistent cost-of-service adjustment to avoid budget shortfalls in the future. The secretary may receive private donations to said account and any such donation shall be deposited in the account. As used in this section, "purchase of service contract" means a contract between a state agency and a private provider organization for the purchase of ongoing direct health and human services for agency clients.

Sec. 2. (Effective from passage) (a) There is established a commission on community-based services. The commission shall consist of (1) the Secretary of the Office of Policy and Management, or the secretary's designee, the Commissioners of Developmental Services, Mental Health and Addiction Services, Children and Families, Social Services, Higher Education and Economic and Community Development and the Labor Commissioner or the commissioners' designees; (2) the cochairpersons of each of the joint standing committees of the General Assembly having cognizance of matters relating to appropriations, finance, human services, public health, government administration and elections and labor, or the cochairpersons' designees; (3) two members appointed by the Governor, one of whom is a provider of social services for children or adults with disabilities, and one of whom is a parent of a child or adult with disabilities; (4) one member appointed by the speaker of the House of Representatives who has knowledge in the area of social services for individuals with disabilities; (5) one member appointed by the president pro tempore of the Senate who has knowledge of the labor market; (6) one member appointed by the majority leader of the House of Representatives who has knowledge of economics; (7) one member appointed by the majority leader of the Senate who has knowledge of Medicaid policy; (8) one member appointed by the minority leader of the House of Representatives who has knowledge of bonding; (9) one member appointed by the minority leader of the Senate who has knowledge of purchase of service agreements or education; (10) two members appointed by the chief executive officer of the Connecticut Community Providers Association; (11) two members appointed by the executive director of the Connecticut Association of Nonprofits; and (12) two members appointed by the executive director of The Arc of Connecticut.

(b) All appointments to the commission shall be made no later than June 1, 2009. Any vacancy shall be filled by the appointing authority. The speaker of the House of Representatives and the president pro tempore of the Senate shall select the chairpersons of the commission from among the members of the commission. Such chairpersons shall schedule the first meeting of the commission, which shall be held no later than July 1, 2009. The commission may, within available appropriations, contract consultants with expertise in the areas of economics, the labor market, higher education or accounting to assist in carrying out its duties. The commission may receive funds from any public or private sources to carry out its activities.

(c) (1) The purpose of the commission shall be to study and make recommendations pursuant to subsection (d) of this section concerning a long-term funding solution for community providers under purchase of service contracts. The commission shall make recommendations concerning: (A) The development of a state-wide strategic plan for the funding of services under purchase of service contracts that includes (i) consistent funding for the provision of such services; and (ii) cost-of-living and other fiscal adjustments in payments to community providers of such services using an indexing option such as the consumer price index, the medical consumer price index, the home health market basket administered by the federal Centers for Medicare and Medicaid Services, or any other indexing option used in this state or other states; (B) a budget to implement the indexing option pursuant to subparagraph (A) of this subdivision; and (C) a budget and plan for stabilizing the service delivery system until indexed payments are allocated.

(2) The commission shall conduct studies, research and analyses and make reports and recommendations pursuant to subsection (d) of this section to address the problem of the funding of services provided by community providers under purchase of service contracts. Such research shall include (A) an analysis of the comparative cost of providing such services in the private and public sectors, including an analysis of the wages and benefits of private sector unionized and nonunionized employees and public sector employees in the human services field; (B) the impact of standard wage legislation in the state; (C) a comparison of the compounded Medical Consumer Price Index to the cost-of-living allocations made to providers of services over a twenty-year period; (D) an analysis of the percentage increase in the cost of health insurance, workers' compensation insurance, property casualty insurance and energy costs since 2000, and a projection of the percentage increase of such costs to 2013; (E) projected labor market trends to 2013; (F) a calculation of the projected savings that could be generated by serving individuals in communities rather than in institutions; (G) a review of financial mechanisms for establishing an ongoing source of revenue such as a dedicated fund; and (H) any other study, research and analysis the commission deems necessary to accomplish the purpose of the commission. As used in this subsection, "purchase of service contract" means a contract between a state agency and a private provider organization for the purchase of ongoing direct health and human services for agency clients.

(d) Not later than October 1, 2009, the commission shall submit a report on proposed budget recommendations and policy and statutory changes to the Governor and to the General Assembly, in accordance with the provisions of section 11-4a of the general statutes.

Sec. 3. (Effective July 1, 2009) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate sixty-five million dollars. All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

(b) The proceeds of the sale of said bonds, to the extent hereinafter stated, shall be used, subject to the provisions of subsection (c) of this section, for capital improvement projects for community providers under purchase of service contracts as hereinafter stated: (1) For the Department of Developmental Services for grants-in-aid, not exceeding twenty-nine million two hundred fifteen thousand eight hundred twenty-nine dollars; (2) for the Department of Children and Families for grants-in-aid, not exceeding thirteen million nine hundred twelve thousand nine hundred thirty-eight dollars; (3) for the Department of Mental Health and Addiction Services for grants-in-aid, not exceeding nine million five hundred fifty-three thousand three hundred five dollars; (4) for the Judicial Department for grants-in-aid, not exceeding four million fifty-eight thousand five hundred ninety-two dollars; (5) for the Department of Social Services for grants-in-aid, not exceeding four million four hundred fifteen thousand seven hundred ninety-four dollars; (6) for the Department of Correction for grants-in-aid, not exceeding one million six hundred eighty thousand eight hundred eighty-six dollars; (7) for the Department of Public Health for grants-in-aid, not exceeding one million four hundred eighty-five thousand nine hundred ninety-five dollars; and (8) for the Children's Trust Fund, not exceeding six hundred seventy-six thousand six hundred sixty dollars.

(c) Grants-in-aid authorized under subsection (b) of this section shall be made available to community providers through a request for proposal process by each department for improvements or expansion of treatment and service facilities, administrative office locations, fire and code compliance and upgrades, physical plant maintenance and upgrades, energy and conservation upgrades, replacement of heating and cooling systems, generators, communication systems, billing software, accounting software, quality assurance software, medical records, HIPAA compliance, hardware systems and other technology improvements. Any grant-in-aid shall be in an amount not in excess of the cost of the project for which the grant is made. As used in this section "purchase of service contract" means a contract between a state agency and a private provider organization for the purchase of ongoing direct health and human services for agency clients.

Sec. 4. (NEW) (Effective July 1, 2009) (a) The Office of Policy and Management shall, within available appropriations, establish a grant program to assist nonprofit organizations that receive state funding in consolidating the organizations' programs and services. Grants awarded pursuant to this subsection to such nonprofit organizations may be used for: (1) Facility purchases and improvements; (2) refinancing facility loans; (3) equipment purchases; (4) program administration; (5) energy conservation projects; (6) transportation; and (7) technology.

(b) Not later than October 1, 2009, the Secretary of the Office of Policy and Management, in collaboration with the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and representatives of nonprofit organizations that receive state funding, shall develop guidelines for the administration and distribution of grants pursuant to this section.

(c) The secretary shall publish a notice of grant availability and solicit competitive proposals under the program for the fiscal year ending June 30, 2010, and each fiscal year thereafter. Eligible nonprofit agencies may file a grant application with the Office of Policy and Management on such forms and at such times as the secretary prescribes.

(d) The secretary shall review all grant applications received under the program and determine which grant applications shall be funded and at what funding levels. Criteria for such determinations established by the secretary, in collaboration with the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and representatives of nonprofit organizations that receive state funding pursuant to subsection (b) of this section, shall be included in the notice of grant availability.