Department of Juvenile Justice: County Billing Process

1. Department of Juvenile Justice:County Billing Process September 23, 2014

2. Overview State and Counties share costs of juvenile detention: • F.S. 985.686 and accompanying rules • County of residence • County costs limited to “predisposition” period Rules related to the cost-sharing system have been revised.

3. Juvenile Arrest Adjudication Hearing (Trial) Disposition Hearing (Sentencing) Committed Probation Detention Court Appearance JAC Max 24 hours Max 21 days Predisposition days Max 15 days

4. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

5. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

6. Billing Process Estimating County Shared Cost State-wide predisposition detention cost (Total) County days used State-wide days used • Estimated annual amount is divided into 12 equal monthly payments • Final costs are reconciled at the end of state fiscal year • May result in a credit or debit • Opportunity to dispute

7. Billing Process Orange County DJJ shared costs Estimate County’s Fiscal Year

8. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

9. Legal Challenges Pre-Disposition vs. Post-Disposition • DJJ significantly changed its methodology for county billing in 2009 • Post-disposition disappeared, became commitment days • Result: Counties picked up more days • Orange County challenged final annual reconciliation in FY 08/09, 09/10, 10/11, 11/12

10. Legal Challenges Okaloosa, et al. v. DJJ • Department’s definition of “predisposition” invalidated • Cost-share was being based on budgeted amount, not actual costs • Counties systematically over billed by DJJ • State-wide estimate of county over-payment: $126 Million (FY 09/10 – 11/12)

11. Legal Challenges County Impact: Overbilling

12. DJJ Billing Process Orange County DJJ shared costs Overbilled = $15.8 M County’s Fiscal Year

13. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

14. 2014 Legislative Outcome GOVERNOR SENATE HOUSE Proposed Budget Rulemaking SB 1532 Billing Process 50/50 No Payback HB 5305 Billing Process 50/50 25-Year Payback

15. 2014 Legislative Outcome DJJ Rulemaking Following session, DJJ began a rulemaking process. The department published its Notice of Change this month. • Probation, Violations • 2-day rule (?) • 57 percent

16. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

17. Options Moving Forward

18. Options Moving Forward PAY HYBRID CREDIT Miami Duval St. Lucie Broward Hillsborough Brevard Volusia Okaloosa Palm Beach Charlotte Sarasota

19. Presentation Overview • Billing Process • Legal Challenges • 2014 Legislative Outcome • Options Moving Forward • Board Direction

20. Board Direction Options for FY14/15: • Pay • Hybrid (partial payment) Staff recommendation: Apply credit in lieu of payment for 50% of the invoiced amount • Apply Credits (withhold payment)

21. Board Action Action Requested: • Approval to apply credits up to 50% of the invoiced amount in lieu of full payment for the Department of Juvenile Justice cost-share program stipulated in F.S. 985.686 beginning fiscal year 2014/2015. • Approval to take any and every action to preserve the County’s rights, including filing applications for refunds, commencing a lawsuit, commencing administrative proceedings or appeals and all other remedies.

22. Department of Juvenile Justice:County Billing Process September 23, 2014