First Regular Session

Sixty-first General Assembly

LLS NO. 97­0629.01 DFH SENATE BILL 97­160

STATE OF COLORADO

BY SENATOR Rizzuto

HEALTH, ENVIRONMENT,

WELFARE & INSTITUTIONS

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING HUMAN SERVICES PROGRAMS, AND MAKING APPROPRIATIONS THEREFOR.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Changes the funding of human services programs in the following ways:

! Changes the ratio between the state and county shares of the costs of providing assistance payments, food stamps, and social services activities from the current 80/20% share to a 90/10% share over a 3­year period.

! Extends through the counties' calendar fiscal year 2000 the limitations on county appropriation increases for a county's share of costs of providing assistance payments, food stamps, and social services activities (the "cap").

! Increases the amount of the advance for a county shortfall out of the county contingency fund from 50% to 75%.

Enacts the following measures to increase the efficiency of services provided by the counties:

1) Allows a county to transfer employees of the county department of social services out of the state merit system into the county's own merit system if such merit system complies with the federal requirements regarding personnel administration for such social services employees. Authorizes the state board of human services to promulgate rules governing minimum qualifications, limits on state reimbursement of salaries, and a salary survey for employees covered by a county merit system.

2) Directs the state department of human services to develop a system of centralized purchasing.

3) Directs the state department of human services to consolidate and restructure its procedures for conducting audits of county departments.

4) Requires the state department of human services to consolidate, streamline, or eliminate unnecessary monitoring functions conducted by the state or county departments.

5) Requires that a county redetermine eligibility for persons receiving assistance payments, social services programs, and medicaid any time it is aware of a change in circumstances; except that the regularly scheduled redetermination of eligibility shall be conducted no more frequently than the maximum time frame allowed in federal regulation.

Requires the state department of human services to annually report on the effectiveness of and progress in implementing several of the measures in the act.

Makes conforming amendments.

Makes appropriations for the implementation of the act.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  26­1­122, Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­1­122.  County appropriations and expenditures ­ advancements ­ procedures. (1) (a) (I)  Except as provided in section 26­1­122.5, the board of county commissioners in each county of this state shall annually appropriate as provided by law such funds as shall be necessary to defray the county department's twenty percent share, AS DETERMINED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH (a), of the overall cost of providing the assistance payments, food stamps (except the value of food stamp coupons), and social services activities delivered in the county, including the costs allocated to the administration of each, and shall include in the tax levy for such county the sums appropriated for that purpose. Such appropriation shall be based upon the county social services budget prepared by the county department pursuant to section 26­1­124, after taking into account state advancements provided for in this section.

(II)  FOR PURPOSES OF THIS SECTION, THE COUNTY DEPARTMENT'S SHARE SHALL BE DETERMINED AS FOLLOWS:

(A)  FOR FISCAL YEAR 1996­97, AND THE FIRST THREE MONTHS OF FISCAL YEAR 1997­98, THE COUNTY DEPARTMENT'S SHARE SHALL BE TWENTY PERCENT;

(B)  FOR THE LAST NINE MONTHS OF FISCAL YEAR 1997­98, COMMENCING OCTOBER 1, 1997, THE COUNTY DEPARTMENT'S SHARE SHALL BE SIXTEEN PERCENT;

(C)  FOR FISCAL YEAR 1998­99, THE COUNTY DEPARTMENT'S SHARE SHALL BE TWELVE PERCENT;

(D)  FOR FISCAL YEAR 1999­2000 AND EACH FISCAL YEAR THEREAFTER, THE COUNTY DEPARTMENT'S SHARE SHALL BE TEN PERCENT.

(b)  In the case of a district department, each county forming a part of said district shall appropriate the funds necessary to defray its proportionate share of the costs of assistance payments, food stamps (except the value of food stamp coupons), and social services activities of such individual county based on the ratio set out in SUBPARAGRAPH (II) OF paragraph (a) of this subsection (1).

(c)  Additional funds shall be made available by the board of county commissioners if the county funds so appropriated prove insufficient to defray the county department's twenty percent APPLICABLE share of actual costs for assistance payments, food stamps (except the value of food stamp coupons), and social services activities, including the administrative costs of each.

(d)  Under no circumstances shall any county expend county funds in an amount to exceed its twenty percent APPLICABLE share of actual costs for assistance payments, food stamps (except the value of food stamp coupons), and social services activities, including the administrative costs of each, except as provided in paragraph (i) of subsection (4) of this section.

(2) (a)  The county boards, in accordance with the rules and regulations of the state department, shall file requests with the state department for advancement of funds for the program costs of assistance payments, food stamps (except the value of food stamp coupons), and social services and for the administrative costs of each. The state department shall determine the requirements of each county for such program costs and administrative costs, taking into consideration available funds and all pertinent facts and circumstances, and shall certify by voucher to the controller the amounts to be paid to each county. The amounts so certified shall be paid from the state treasury upon voucher of the state department and warrant of the controller and shall be credited by the county treasurer to the county social services fund in accordance with the law and rules of the state department.

(b)  For purposes of operating the electronic benefits transfer service as authorized in section 26­2­104 once the service has been fully developed and implemented in any county, the state department shall determine the program costs and administrative costs related to assistance payments and food stamps for each county. Upon implementation of the electronic benefits transfer service in any county, the county share of the program and administrative costs shall either be billed to the county or deducted from appropriate advances to the county. The cost of administering the electronic benefits transfer service shall not exceed the proportional cost per client that would have been paid by counties to issue benefits through the nonelectronic benefits system for the same fiscal year. Any savings that result from the use of the electronic benefits transfer service shall be shared among the state and local governments in proportion to such entities' contribution to the electronic benefits transfer service.

(3) (a)  County departments shall keep such records and accounts in relation to the costs of administering assistance payments, the costs of administering food stamps, and the costs of administering social services as the state department shall prescribe by rules and regulations. All administrative costs shall be allocated, under rules of the state department, to either the performance of assistance payments functions, the performance of food stamp functions, or the performance of social services functions.

(b) (I)  Except as provided in section 26­1­122.5, if the county departments are administered in accordance with the policies and rules of the state department for the administration of county departments, eighty percent THE STATE'S SHARE AS DETERMINED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH (b) of the costs of administering assistance payments, food stamps, and social services in the county departments shall be advanced to the county by the state treasurer from funds appropriated or made available for such purpose, upon authorization of the state department, but in no event shall the state department authorize expenditures greater than the annual appropriation by the general assembly for the state's share of such administrative costs of the county departments. As funds are advanced, adjustment shall be made from subsequent monthly payments for those purposes.

(II)  FOR PURPOSES OF THIS SECTION, THE STATE'S SHARE SHALL BE DETERMINED AS FOLLOWS:

(A)  FOR FISCAL YEAR 1996­97, AND THE FIRST THREE MONTHS OF FISCAL YEAR 1997­98, THE STATE'S SHARE SHALL BE EIGHTY PERCENT;

(B)  FOR THE LAST NINE MONTHS OF FISCAL YEAR 1997­98, COMMENCING OCTOBER 1, 1997, THE STATE'S SHARE SHALL BE EIGHTY­FOUR PERCENT;

(C)  FOR FISCAL YEAR 1998­99, THE STATE'S SHARE SHALL BE EIGHTY­EIGHT PERCENT;

(D)  FOR FISCAL YEAR 1999­2000 AND EACH FISCAL YEAR THEREAFTER, THE STATE'S SHARE SHALL BE NINETY PERCENT.

(c)  For purposes of this article, under rules of the state department, administrative costs shall include: Salaries of the county director and employees of the county department staff engaged in the performance of assistance payments, food stamps, and social services activities; the county's payments on behalf of such employees for old age and survivors' insurance or pursuant to a county officers' and employees' retirement plan and for any health insurance plan, if approved by the state department; the necessary travel expenses of the county board and the administrative staff of the county department in the performance of their duties; necessary telephone and telegraph; necessary equipment and supplies; necessary payments for postage and printing, including the printing and preparation of county warrants required for the administration of the county department; and such other administrative costs as may be approved by the state department; but advancements for office space, utilities, and fixtures may be made from state funds only if federal matching funds are available.

(4) (a)  County departments shall keep such records and accounts in relation to assistance payments program costs and social services program costs as the state department shall prescribe by rules and regulations. All program costs shall be allocated, under rules of the state department, to either assistance payments or social services.

(b)  Except as provided in paragraph (d) of this subsection (4), eighty percent THE STATE'S SHARE AS DETERMINED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (b) OF SUBSECTION (3) OF THIS SECTION of the amount expended for assistance payments program costs and social services program costs or the amount equal to the state's share of the amount expended as determined pursuant to section 26­1­122.5 shall be advanced to the county by the state treasurer from funds appropriated or made available for such purpose upon authorization of the state department pursuant to the provisions of this title. As funds are advanced, adjustment shall be made from subsequent monthly payments for those purposes.

(c)  For purposes of this article, under rules of the state department, program costs shall include: Amounts expended for assistance payments and social services (except for items enumerated in subsection (3) (c) of this section) under programs for aid to families with dependent children OR ITS SUCCESSOR PROGRAM, aid to the needy disabled, aid to the blind, child welfare services, expenses of treatment to prevent blindness or restore eyesight as defined in section 26­2­121, funeral and burial expenses as defined in section 26­2­129, and state supplementation under part 2 of article 2 of this title.

(d)  Whenever any county, by reason of an emergency or other temporary condition, shall be unable to meet its necessary financial obligations for other public assistance purposes, and at the same time meet its requirements for assistance payments and social services under the program for aid to the needy disabled or the program for aid to families with dependent children OR ITS SUCCESSOR PROGRAM, the state department may in its discretion, upon consideration of the conditions and requirements of this title, reimburse such county in excess of eighty percent THE STATE'S SHARE AS DETERMINED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (b) OF SUBSECTION (3) OF THIS SECTION of the amount expended for assistance payments and social services under such program. The state department shall determine the amount of such excess reimbursement and the period of time during which such excess reimbursement shall be made. For such purpose, the state department may use not to exceed five percent of the total amount allocated to it by the state for administrative and program costs for assistance payments and social services under the program for which the excess reimbursement is provided.

(e)  When a county department provides or purchases certain specialized social services for public assistance applicants, recipients, or others to accomplish self­support, self­care, or better family life, including but not limited to day care, homemaker services, foster care, and services to mentally retarded persons, in accordance with applicable rules, the state may advance funds to such county department at a rate in excess of eighty percent THE APPLICABLE STATE SHARE, within available appropriations, but not to exceed the amount expended by the county department for such services. The county department contribution shall be for the period from January 1, 1981, through June 30, 1981, ten percent, and beginning July 1, 1981, five percent for the aid to the needy disabled home care program, the special needs of the disabled program, aid to the blind home care program, the special needs of the blind program, the adult foster care program, and other programs providing public assistance in the form of social services required by the federal "Social Security Act", as amended, for the purpose of establishing services which THAT promote self­sufficiency for adult clients. As funds are advanced, adjustment shall be made from subsequent monthly payments for those purposes. The expenses of training personnel to provide these services as determined and approved by the state department shall be paid from whatever state and federal funds are available for such training purposes.

(f)  County departments shall provide or contract to provide a central information and referral service for all available services in the county which may prevent or reduce inappropriate institutional care through the use of community­based or home­based care.

(g)  The state department is authorized to provide not more than ten additional homemaker positions to be located in Adams, Larimer, Garfield, Otero, and Morgan counties. Reimbursement to each county for one hundred percent homemaker costs shall be based on a minimum case load of ten clients per reimbursed position, which clients are currently in or would be admitted to skilled or intermediate care facilities or hospitals and who would not otherwise be served by current county staffing. Reports shall be provided monthly to the joint budget committee.

(h)  Notwithstanding any other provision of this article, the county department may spend in excess of twenty percent THE APPLICABLE COUNTY DEPARTMENT SHARE of actual costs AS DETERMINED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (a) OF SUBSECTION (1) OF THIS SECTION for the purpose of matching federal funds for the administration of the child support enforcement program or for the administrative costs of activities involving food stamp, public assistance, or medical assistance fraud investigations or prosecutions.

(i)  Notwithstanding any other provision of this article, the county department may receive and spend federal funds to which it is entitled by reason of the county's expenditures in excess of the twenty percent COUNTY DEPARTMENT'S SHARE required by subsection (1) of this section for any social services activity that has been approved by the STATE department as an activity that is eligible for reimbursement under any federal program. Acceptance and expenditure of such federal funds shall in no way affect the state's share of and contribution to such payments, and the county shall be solely responsible for the provision of the nonfederal share that is in excess of the twenty percent COUNTY DEPARTMENT'S SHARE.

(5)  If in any fiscal year the annual appropriation by the general assembly for the state's share, together with any available federal funds for any income maintenance or social services program, or the administration of either, is not sufficient to advance to the counties the full eighty percent APPLICABLE STATE share of costs, said program or the administration thereof shall be temporarily reduced by the state board so that all available state and federal funds shall continue to constitute eighty percent THE STATE'S SHARE of the costs AS DETERMINED PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (b) OF SUBSECTION (3) OF THIS SECTION.

SECTION 2.  26­1­122.5 (1), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended, and the said 26­1­122.5 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

26­1­122.5.  County appropriation increases ­ limitations. (1)  Beginning in calendar fiscal year 1994 and for each calendar fiscal year thereafter to and including calendar fiscal year 1997 2000, the board of county commissioners in each county of this state shall annually appropriate funds for the county share of the administrative costs and program costs of public assistance AND THE ADMINISTRATIVE COSTS OF medical assistance and food stamps in the county in an amount equal to the actual county share for the previous fiscal year adjusted by an amount equal to the actual county share for the previous fiscal year multiplied by the percentage of change in property tax revenue.

(8)  THE AMOUNT OF THE COUNTY SHARE OF THE ADMINISTRATIVE COSTS AND PROGRAM COSTS OF PUBLIC ASSISTANCE AND THE ADMINISTRATIVE COSTS OF MEDICAL ASSISTANCE AND FOOD STAMPS IN THE COUNTY SHALL NOT BE LESS THAN TEN PERCENT AFTER THE PAYMENT OF ANY COUNTY CONTINGENCY CONTRIBUTION PURSUANT TO SECTION 26­1­126 AND THE ADJUSTMENT IN THE COUNTY APPROPRIATION AS AUTHORIZED IN THIS SECTION AND SHALL NOT BE MORE THAN THE PERCENTAGE OF THE COUNTY SHARE STATED FOR THAT PARTICULAR FISCAL YEAR IN SECTION 26­1­122 (1) (a) (II).

SECTION 3.  26­1­126, Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­1­126.  County contingency fund ­ creation. (1)  There is hereby created a county contingency fund which shall be expended to supplement county expenditures for public assistance as provided in this section.

(2)  Notwithstanding the provisions of section 26­1­125 (1), and subject to available appropriations, the state department of human services or the state department of health care policy and financing shall make an advancement, in addition to that provided in section 26­1­122, out of the county contingency fund to any county if moneys equivalent to those raised by a levy as determined pursuant to subsection (2.1) of this section on the property valued for assessment in the county are less than twenty percent THE SPECIFIED COUNTY DEPARTMENT'S SHARE AS DETERMINED PURSUANT TO SECTION 26­1­122 (1) (a) (II) of the amount expended for administrative costs and program costs of public assistance AND THE ADMINISTRATIVE COSTS OF medical assistance and food stamps.

(2.1) (a)  If the total valuation for assessment of property in a county changes as of January 1, 1987, commencing on January 1, 1988, the mill levy used to determine eligibility for an advancement from the county contingency fund shall be changed from three mills to the number of mills determined by the following formula: Divide the total valuation for assessment for the calendar year two years preceding of those counties which THAT were entitled to advancements from the county contingency fund for the fiscal year ending June 30 of the preceding year by the total valuation for assessment of those same counties for the preceding calendar year, multiply by three mills, and round the resulting figure to the nearest one­hundredth of a mill.

(b)  For the calendar year beginning January 1, 1989, and for each calendar year thereafter, the mill levy used to determine eligibility for an advancement from the county contingency fund during such calendar year shall be changed to the number of mills determined by the following formula: Divide the total valuation for assessment for the calendar year two years preceding such calendar year of those counties which THAT were entitled to advancements from the county contingency fund during all or part of said second preceding calendar year by the total valuation for assessment of those same counties for the first calendar year preceding such calendar year, multiply the quotient by the number of mills used to determine eligibility for the preceding calendar year, and round the resulting figure to the nearest one­hundredth of a mill.

(3)  Subject to available appropriations, the amount of the additional advancement for each county for each month commencing on or after July 1, 1975, AND UNTIL OCTOBER 1, 1997, shall be fifty percent of the difference between the following:

(a)  Twenty percent of the monthly amount expended for the purposes named in subsection (2) of this section, minus;

(b)  The moneys equivalent to those raised by a levy of the number of mills determined pursuant to paragraph (b) of subsection (2.1) of this section on the property valued for assessment in the county divided by twelve.

(3.5)  SUBJECT TO AVAILABLE APPROPRIATIONS, THE AMOUNT OF THE ADDITIONAL ADVANCEMENT FOR EACH COUNTY FOR EACH MONTH COMMENCING ON OR AFTER OCTOBER 1, 1997, SHALL BE SEVENTY­FIVE PERCENT OF THE DIFFERENCE BETWEEN THE FOLLOWING:

(a)  THE SPECIFIED COUNTY DEPARTMENT'S SHARE AS DETERMINED PURSUANT TO SECTION 26­1­122 (1) (a) (II) OF THE MONTHLY AMOUNT EXPENDED FOR THE PURPOSES NAMED IN SUBSECTION (2) OF THIS SECTION, MINUS;

(b)  THE MONEYS EQUIVALENT TO THOSE RAISED BY A LEVY OF THE NUMBER OF MILLS DETERMINED PURSUANT TO PARAGRAPH (b) OF SUBSECTION (2.1) OF THIS SECTION ON THE PROPERTY VALUED FOR ASSESSMENT IN THE COUNTY DIVIDED BY TWELVE.

(4)  In the event appropriations are insufficient to cover advancements provided for in this section, all advancements shall be prorated on the basis of total claims submitted in proportion to funds available. As funds are advanced, any adjustments shall be made from subsequent monthly payments for this purpose.

(5)  Each county eligible for county contingency funds pursuant to this section shall only be responsible for an amount equal to the county's pro rata share of the general assembly's appropriation to the county contingency fund. If state and county appropriations are insufficient to meet the administrative and program costs of public assistance and the administrative costs of medical assistance and food stamps, then the executive director of the department of human services, the executive director of the department of health care policy and financing, and the state board of human services shall act pursuant to sections 26­1­121 (1) (c) and 26­1­122 (5) to reduce the rate of expenditure so that it matches the available funds.

SECTION 4.  26­1­119, Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­1­119.  County staff. (1)  The county director, with the approval of the county board, shall appoint such staff as may be necessary as determined by the appropriate state department rules to administer public assistance and welfare, medical assistance, and child welfare activities within his THE county. Such staff shall be appointed and shall serve in accordance with the merit system established and maintained by the appropriate state department for the selection, retention, and promotion of county department employees pursuant to section 26­1­120, OR SUCH STAFF SHALL BE APPOINTED AND SHALL SERVE IN ACCORDANCE WITH THE POLICIES OF THE COUNTY'S MERIT SYSTEM IF SUCH SYSTEM MEETS THE CONDITIONS SET FORTH IN SUBSECTION (2) OF THIS SECTION. The salaries of the members of such COUNTY staff THAT ARE PART OF THE MERIT SYSTEM PURSUANT TO SECTION 26­1­120 shall be fixed in accordance with the rules and salary schedules prescribed by the appropriate state department. THE SALARIES OF THE MEMBERS OF COUNTY STAFF THAT ARE PART OF THE COUNTY'S MERIT SYSTEM PURSUANT TO SUBSECTION (2) OF THIS SECTION SHALL BE FIXED IN ACCORDANCE WITH THE POLICIES OF THE COUNTY'S MERIT SYSTEM AND ANY RULES REGARDING SALARY SURVEYS PROMULGATED BY THE STATE BOARD PURSUANT TO PARAGRAPH (c) OF SUBSECTION (2) OF THIS SECTION.

(2) (a)  THE BOARD OF COUNTY COMMISSIONERS FOR A COUNTY MAY ELECT TO TRANSFER THE STAFF EMPLOYED IN THE COUNTY DEPARTMENT FROM THE MERIT SYSTEM ESTABLISHED PURSUANT TO SECTION 26­1­120 TO THE COUNTY'S MERIT SYSTEM AND TO INCLUDE ANY NEWLY HIRED COUNTY STAFF FOR SUCH DEPARTMENT IN THE COUNTY'S MERIT SYSTEM IF THE COUNTY'S MERIT SYSTEM MEETS THE FEDERAL CRITERIA REQUIRED FOR EMPLOYEES ENGAGED IN GRANT­AIDED PROGRAMS AS SPECIFIED IN PARAGRAPH (b) OF THIS SUBSECTION (2) AS A CONDITION OF RECEIPT OF FEDERAL FUNDS.

(b)  THE COUNTY'S MERIT SYSTEM SHALL MEET THE FOLLOWING FEDERAL CRITERIA:

(I)  THE RECRUITMENT, SELECTION, AND ADVANCEMENT OF EMPLOYEES MUST BE ON THE BASIS OF RELATIVE ABILITIES, KNOWLEDGE, AND SKILLS, INCLUDING OPEN CONSIDERATION OF QUALIFIED APPLICANTS FOR INITIAL APPOINTMENT.

(II)  THE SYSTEM SHALL PROVIDE EQUITABLE AND ADEQUATE COMPENSATION.

(III)  THE EMPLOYEES SHALL BE TRAINED AS NEEDED TO ASSURE HIGH QUALITY OF PERFORMANCE.

(IV)  THE SYSTEM SHALL PROVIDE FOR RETAINING EMPLOYEES ON THE BASIS OF THE ADEQUACY OF THEIR PERFORMANCE, CORRECTING INADEQUATE PERFORMANCE, AND SEPARATING EMPLOYEES WHOSE INADEQUATE PERFORMANCE CANNOT BE CORRECTED.

(V)  THE SYSTEM SHALL ASSURE FAIR TREATMENT OF APPLICANTS AND EMPLOYEES IN ALL ASPECTS OF PERSONNEL ADMINISTRATION WITHOUT REGARD TO POLITICAL AFFILIATION, RACE, COLOR, NATIONAL ORIGIN, SEX, RELIGIOUS CREED, AGE, OR DISABILITY AND WITH PROPER REGARD FOR THE PRIVACY AND CONSTITUTIONAL RIGHTS OF SUCH PERSONS AS CITIZENS. THIS FAIR TREATMENT PRINCIPLE SHALL INCLUDE COMPLIANCE WITH ALL FEDERAL EQUAL OPPORTUNITY AND NONDISCRIMINATION LAWS.

(VI)  THE SYSTEM SHALL ASSURE THAT EMPLOYEES ARE PROTECTED AGAINST COERCION FOR PARTISAN POLITICAL PURPOSES AND ARE PROHIBITED FROM USING THEIR OFFICIAL AUTHORITY FOR THE PURPOSE OF INTERFERING WITH OR AFFECTING THE RESULTS OF AN ELECTION OR A NOMINATION FOR OFFICE.

(c)  THE STATE BOARD SHALL PROMULGATE RULES THAT APPLY TO EMPLOYEES WHO ARE PERFORMING DUTIES SPECIFIC TO SOCIAL SERVICES FUNCTIONS AND ARE EMPLOYEES OF COUNTY DEPARTMENTS WHO ARE SUBJECT TO A COUNTY'S MERIT SYSTEM PURSUANT TO THE PROVISIONS OF THIS SUBSECTION (2). SUCH RULES SHALL GOVERN:

(I)  THE ESTABLISHMENT OF MINIMUM QUALIFICATIONS FOR EMPLOYEES WHO PERFORM DUTIES SPECIFIC TO SOCIAL SERVICES FUNCTIONS;

(II)  THE REQUIREMENT OF A SALARY SURVEY BASED UPON RELEVANT PREVAILING WAGES FOR SUCH EMPLOYEES PERFORMING DUTIES SPECIFIC TO SOCIAL SERVICES FUNCTIONS;

(III)  THE LIMITS ON STATE REIMBURSEMENT OF SALARIES.

(3)  IF THERE IS A FINDING OF NONCOMPLIANCE BY A COUNTY DEPARTMENT BASED UPON A VIOLATION OF ANY OF THE REQUIREMENTS SET FORTH IN SUBPARAGRAPHS (I) TO (VI) OF PARAGRAPH (b) OF SUBSECTION (2) OF THIS SECTION, THE COUNTY SHALL BE RESPONSIBLE FOR ANY SANCTIONS OR FINES FOR SUCH VIOLATION.

SECTION 5.  26­1­120 (1), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­1­120.  Merit system. (1)  The state department shall establish and maintain a merit system for the selection, retention, and promotion of employees of the county departments, except those positions exempted in sections 26­1­117 (1) and 26­1­120.5 AND EXCEPT THOSE EMPLOYEES OF COUNTY DEPARTMENTS WHO ARE INCLUDED IN THE COUNTY'S OWN MERIT SYSTEM PURSUANT TO SECTION 26­1­119 (2), and shall establish such rules and regulations as are necessary for the efficient administration and operation of the merit system.

SECTION 6.  26­1­107 (10), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­1­107.  State board of human services. (10)  The state board shall fix minimum standards and qualifications for county department personnel IN THE STATE MERIT SYSTEM based upon training and experience deemed necessary to fulfill the requirements and responsibilities for each position and establish salary schedules based upon prevailing wages for comparable work within each county or district or region where such data is available and is collected and compiled in a manner approved by the state personnel director. The rules and regulations issued by the state board shall be binding upon the several county departments WHOSE EMPLOYEES ARE IN THE STATE MERIT SYSTEM CREATED IN SECTION 26­1­120. At any public hearing relating to a proposed rule making, interested persons shall have the right to present their data, views, or arguments orally. Proposed rules of the state board shall be subject to the provisions of section 24­4­103, C.R.S.

SECTION 7.  Part 1 of article 1 of title 26, Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended BY THE ADDITION OF THE FOLLOWING NEW SECTIONS to read:

26­1­130.  Centralized purchasing. THE STATE DEPARTMENT AND COUNTY DEPARTMENTS SHALL WORK COOPERATIVELY TO DEVELOP METHODS TO CENTRALIZE PURCHASING, INCLUDING THE DISTRIBUTION OF INFORMATION AND PURCHASING PROCEDURES TO ALL COUNTY DEPARTMENTS. THE COUNTY DEPARTMENTS SHALL COOPERATE WITH THE STATE DEPARTMENT IN IDENTIFYING AND WORKING WITH COUNTY OFFICIALS TO ELIMINATE, WHERE POSSIBLE, LOCAL RESTRICTIONS THAT REQUIRE THE USE OF LOCAL VENDORS WHO MAY NOT BE ON STATE BID LISTS.

26­1­131.  Consolidate and improve audits. THE STATE DEPARTMENT SHALL COORDINATE WITH THE COUNTY DEPARTMENTS TO REVIEW, ASSESS, AND STREAMLINE THE AUDIT PROCEDURES USED BY THE STATE DEPARTMENT IN MONITORING THE PROVISION OF SERVICES BY THE COUNTY DEPARTMENTS. THE STATE DEPARTMENT SHALL IMPLEMENT NEW AUDIT PROCEDURES THAT WOULD CONSOLIDATE AND IMPROVE THE AUDITING OF SUCH COUNTY DEPARTMENTS.

26­1­132.  Consolidation of monitoring requirements. THE STATE DEPARTMENT SHALL WORK WITH THE COUNTY DEPARTMENTS TO IDENTIFY METHODS TO CONSOLIDATE OR ELIMINATE THE STATE DEPARTMENT'S FUNCTIONS IN MONITORING THE PROVISION OF SERVICES BY THE COUNTY DEPARTMENTS. SUCH METHODS MAY INCLUDE SUCH MEASURES AS USING METHODS OTHER THAN SITE VISITS TO MONITOR COUNTIES, SUCH AS SELF­ASSESSMENT INSTRUMENTS, USE OF CRITICAL INDICATORS TO TARGET PROBLEM AREAS, AND COORDINATION OF SCHEDULING OF MONITORING ACTIVITIES.

26­1­133.  Accounting systems. THE STATE DEPARTMENT SHALL WORK WITH COUNTY DEPARTMENTS AND WITH FINANCIAL OFFICIALS FROM COUNTIES TO CREATE MORE EFFICIENT ACCOUNTING AND FINANCIAL SYSTEMS FOR THE REPORTING OF DATA REQUIRED TO BE REPORTED TO THE STATE AND FEDERAL GOVERNMENTS BY COUNTY DEPARTMENTS. THE STATE DEPARTMENT SHALL EXAMINE THE USE OF AND FEASIBILITY OF A STANDARDIZED GENERAL LEDGER SYSTEM OR CENTRALIZED ACCOUNTING SYSTEM.

26­1­134.  Report on effectiveness and progress regarding efficiency measures. (1)  THE STATE DEPARTMENT SHALL REPORT TO THE JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY ON DECEMBER 1, 1997, AND EVERY DECEMBER 1 THEREAFTER ON THE EFFECTIVENESS OF AND THE PROGRESS OF THE STATE DEPARTMENT IN IMPLEMENTING THE FOLLOWING EFFICIENCY MEASURES:

(a)  THE DECREASE IN THE PERCENTAGE OF THE COUNTY SHARE AS SET FORTH IN SECTION 26­1­122 (1) (a) (II);

(b)  THE INCREASE IN THE AMOUNT OF ADVANCEMENT TO A COUNTY OUT OF THE COUNTY CONTINGENCY FUND AS SET FORTH IN SECTION 26­1­126 (3.5);

(c)  THE AUTHORIZATION FOR A COUNTY TO TRANSFER CURRENT EMPLOYEES AND ANY NEWLY HIRED EMPLOYEES WHO PERFORM SOCIAL SERVICES FUNCTIONS INTO THE COUNTY'S OWN MERIT SYSTEM RATHER THAN INCLUDING SUCH EMPLOYEES UNDER THE STATE MERIT SYSTEM AS SET FORTH IN SECTIONS 26­1­119 AND 26­1­120;

(d)  THE IMPLEMENTATION OF CENTRALIZED PURCHASING AS SET FORTH IN SECTION 26­1­130;

(e)  THE IMPLEMENTATION OF METHODS TO CONSOLIDATE AND IMPROVE AUDITS AS SET FORTH IN SECTION 26­1­131;

(f)  THE CONSOLIDATION OF MONITORING REQUIREMENTS AS SET FORTH IN SECTION 26­1­132;

(g)  THE IMPLEMENTATION OF CHANGES IN ACCOUNTING SYSTEMS AS SET FORTH IN SECTION 26­1­133;

(h)  THE CHANGES REGARDING THE FREQUENCY OF REDETERMINATION OF ELIGIBILITY FOR ASSISTANCE PAYMENTS AND SOCIAL SERVICES AS PROVIDED IN SECTION 26­2­124 AND REDETERMINATION OF ELIGIBILITY FOR MEDICAL BENEFITS AS PROVIDED IN SECTION 26­4­106.

(2)  IN THE ANNUAL REPORT REQUIRED PURSUANT TO SUBSECTION (1) OF THIS SECTION, THE STATE DEPARTMENT SHALL REPORT ON THE ANNUAL COSTS OF EACH OF THE MEASURES THAT HAVE BEEN IMPLEMENTED BY THE STATE DEPARTMENT.

SECTION 8.  26­2­124 (1), Colorado Revised Statutes, 1989 Repl. Vol., is amended to read:

26­2­124.  Reconsideration and changes. (1)  All assistance payments and social services provided under this article shall be reconsidered as frequently as and in the manner required by rules and regulations of the state department. THE COUNTY DEPARTMENT SHALL REDETERMINE ELIGIBILITY FOR ASSISTANCE PAYMENTS AND SOCIAL SERVICES PROVIDED UNDER THIS ARTICLE ANY TIME IT IS AWARE OF A CHANGE IN CIRCUMSTANCES; EXCEPT THAT THE REGULARLY SCHEDULED REDETERMINATION OF ELIGIBILITY SHALL BE CONDUCTED NO MORE FREQUENTLY THAN THE MAXIMUM TIME FRAME ALLOWED IN FEDERAL REGULATION. After such further verification and record as the county department may deem necessary or the rules and regulations of the state department may require, the amount of assistance payments or the social services provided may be changed, or public assistance may be terminated, if the state department or the county department finds that the recipient's circumstances have altered sufficiently to warrant such action or if changes in state or federal law have been made which would warrant such action.

SECTION 9.  26­4­106 (1), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­4­106.  Application ­ verification of eligibility. (1)  Determination of eligibility for medical benefits shall be made by the county department in which the applicant resides. Local social security offices also determine eligibility for medicaid benefits at the same time they determine eligibility for supplemental security income. Any person who is determined to be eligible pursuant to the requirements of this article shall be eligible for benefits until such person is determined to be ineligible. Upon determination that any person is ineligible for medical benefits, the county department shall notify the applicant in writing of its decision and the reason therefor. THE COUNTY DEPARTMENT SHALL REDETERMINE ELIGIBILITY FOR MEDICAL BENEFITS ANY TIME IT IS AWARE OF A CHANGE OF CIRCUMSTANCES; EXCEPT THAT THE REGULARLY SCHEDULED REDETERMINATION OF ELIGIBILITY SHALL BE CONDUCTED NO MORE FREQUENTLY THAN THE MAXIMUM TIME FRAME ALLOWED IN FEDERAL REGULATION. Separate determination of eligibility and formal application for benefits under this article for persons eligible as provided in sections 26­4­201 and 26­4­301 shall be made in accordance with the rules and regulations of the state department.

SECTION 10.  26­1­117 (1), Colorado Revised Statutes, 1989 Repl. Vol., is amended to read:

26­1­117.  County director ­ district director. (1)  It is the duty of the county board to appoint a county director, who shall be charged with the executive and administrative duties and responsibilities of the county department, subject to the policies, rules, and regulations of the state department, and who shall serve as secretary to the county board, unless a secretary is otherwise appointed by the board. The county director shall be exempt from the merit system established and maintained pursuant to section 26­1­120. The salary of the county director shall be established by the board of county commissioners of the county. The state department shall only reimburse eighty percent THE SPECIFIED STATE SHARE AS DETERMINED PURSUANT TO SECTION 26­1­122 of the salary established in the compensation plan pursuant to section 26­1­120 (5) (i). or eighty percent of the actual salary, whichever is less.

SECTION 11.  26­4­527 (3), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­4­527.  Residential child health care ­ waiver ­ program. (3)  The department of health care policy and financing, in cooperation with the department of human services, shall promulgate rules as necessary for the implementation of the program, including, but not limited to, rules regarding program services that may include rehabilitative services as appropriate to residential child health care when referred by a physician licensed pursuant to article 36 of title 12, C.R.S., a psychologist licensed pursuant to part 3 of article 43 of title 12, C.R.S., a registered professional nurse as defined in section 12­38­103 (11), C.R.S., who, by reason of postgraduate education and additional nursing preparation, has gained knowledge, judgment, and skill in psychiatric or mental health nursing, a clinical social worker licensed pursuant to part 4 of article 43 of title 12, C.R.S., a marriage and family therapist licensed pursuant to part 5 of article 43 of title 12, C.R.S., or a professional counselor licensed pursuant to part 6 of article 43 of title 12, C.R.S.; the number of recipients participating; eligibility criteria including financial eligibility criteria; reimbursement of providers; and such other rules as are necessary for the implementation and administration of the program. The twenty percent county contribution established in section 26­1­122 for residential child care facilities may be used by the state to obtain federal financial participation under Title XIX of the social security act for any residential child health care program established pursuant to this section. The twenty percent COUNTY contribution shall not be increased due to any federal financial participation received as a result of any programs established pursuant to this section. Nothing in this section shall be construed to prohibit an adjustment in the county contribution due to caseload or service cost increases. Nothing in this section shall be construed to create a county obligation to directly participate in the financing of any program established pursuant to the "Colorado Medical Assistance Act" as set forth in this article.

SECTION 12.  26­5­104 (1), Colorado Revised Statutes, 1989 Repl. Vol., as amended, is amended to read:

26­5­104.  Reimbursement to counties. (1)  The state department shall, within the limits of available appropriations, reimburse the county departments eighty percent THE SPECIFIED STATE SHARE AS DETERMINED PURSUANT TO SECTION 26­1­122 of amounts expended by county departments for child welfare services, as authorized by this article.

SECTION 13.  19­1­116 (2) (e), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is amended to read:

19­1­116.  Funding ­ alternatives to placement out of the home. (2) (e)  Upon approval by the state board of human services of the plan submitted pursuant to paragraph (b) of this subsection (2), the department of human services shall reimburse county departments, as described in section 26­1­122, C.R.S., for eighty percent THE SPECIFIED STATE SHARE of the expenditures made in conformance with the plan.

SECTION 14.  Appropriations. (1)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of human services, for the fiscal year beginning July 1, 1997, the sum of ______ dollars ($ ), or so much thereof as may be necessary, for the state's share of the costs of providing assistance payments, food stamps, and social services activities and for the additional cost of payments made to counties pursuant to section 26­1­122, Colorado Revised Statutes.

(2)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of human services, for the fiscal year beginning July 1, 1997, the sum of ____ dollars ($ ), or so much thereof as may be necessary, for the state and county fiscal systems study pursuant to section 26­1­133, Colorado Revised Statutes.

SECTION 15.  Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.