LRB-5290/1
GMM:skg&mkd:nb
1995 - 1996 LEGISLATURE
March 5, 1996 - Introduced by Senator Huelsman, cosponsored by Representatives
Krug and Ladwig. Referred to Committee on Judiciary.
SB601,3,2 1An Act to repeal 619.01 (1) (c) 4m., 619.01 (9m) and 895.485 (1) (c); to renumber
248.368; to renumber and amend 48.427 (3) (intro.) and 48.428 (2); to amend
320.410 (3) (ho), 20.410 (3) (o), 20.410 (3) (oo), 20.435 (3) (cf) (title), 20.435 (3)
4(dd), 20.435 (3) (pd), 20.435 (7) (b), 20.445 (3) (d), 46.03 (7m), 46.036 (1), 46.10
5(14) (a), 46.10 (14) (b), 46.16 (2), 46.21 (2) (j), 46.48 (3) (a), 46.48 (15) (a) 1., 46.48
6(15) (a) 2., 46.48 (15) (a) 3., 46.495 (1) (d), 46.51 (4), 46.56 (8) (L), 46.98 (1) (c),
746.985 (1) (f), 48.01 (1) (gg), 48.02 (6), 48.023 (intro.), 48.09 (5), 48.14 (2) (b),
848.185 (1), 48.185 (2), 48.207 (1) (c), 48.207 (1) (f), 48.207 (3), 48.235 (1) (c),
948.299 (4) (a), 48.299 (4) (b), 48.33 (4) (intro.), 48.33 (5), 48.345 (3) (c), 48.355
10(2) (b) 2., 48.357 (1), 48.375 (4) (a) 1., 48.375 (4) (b) 1m., 48.375 (4) (b) 3., 48.375
11(7) (f), 48.38 (2) (intro.), 48.38 (4) (f) (intro.), 48.38 (5) (b), 48.38 (5) (c) 2., 48.38
12(5) (e), 48.42 (2) (d), 48.425 (1) (f), 48.425 (1) (g), 48.428 (4), 48.43 (1) (a), 48.43
13(4), 48.43 (5) (b), 48.43 (5) (c), 48.43 (5m), 48.48 (9), 48.52 (1) (b), 48.57 (1) (c),
1448.57 (1) (i), 48.57 (3) (a) 4., 48.60 (2) (e), 48.61 (3), 48.61 (7), 48.615 (1) (b),
15subchapter XIV (title) of chapter 48 [precedes 48.62], 48.62 (title), 48.62 (1) (a),
1648.62 (2), 48.62 (4), 48.625 (3), 48.627 (title), 48.627 (2) (a), 48.627 (2c), 48.627
17(2m), 48.627 (2s) (a), 48.627 (2s) (b), 48.627 (3) (b), 48.627 (3) (d), 48.627 (3) (e),

148.627 (3) (f), 48.627 (3) (h), 48.627 (4), 48.627 (5), 48.63 (1), 48.63 (4), 48.64
2(title), 48.64 (1), 48.64 (1m), 48.64 (2), 48.64 (4) (a), 48.64 (4) (c), subchapter XVI
3(title) of chapter 48 [precedes 48.66], 48.66 (1), 48.67, 48.675 (1), 48.675 (2),
448.675 (3) (intro.), 48.675 (3) (a), 48.70 (2), 48.73, 48.75 (title), 48.75 (1), 48.75
5(2), 48.831 (title), 48.831 (1), 48.833, 48.837 (1), 48.975 (3) (a), 48.98 (1), 48.98
6(2) (a), 48.981 (3) (d) 1., 48.981 (7) (a) 4., 49.19 (1) (a) 2. b., 49.19 (4e) (a), 49.19
7(10) (a), 49.19 (10) (c), 49.19 (10) (d), 49.19 (10) (e), 49.20 (2) (d), 49.32 (9) (a),
849.45 (3) (e) 7., 49.46 (1) (a) 5., 49.46 (1) (d) 1., 50.01 (1) (a) 1., 50.01 (1) (a) 2.,
959.97 (15) (intro.), 59.97 (15) (bm), 60.63 (intro.), 60.63 (3), 62.23 (7) (i) (intro.),
1062.23 (7) (i) 2m., 103.10 (1) (a) (intro.), 103.10 (1) (f), 106.11 (2) (a) 1. d., 121.79
11(1) (d) (intro.), 121.79 (1) (d) 1., 121.79 (1) (d) 2., 146.0255 (2), 167.10 (7), 301.26
12(4) (d) 3m., 301.26 (4) (d) 4., 301.26 (4) (e), 301.26 (4) (ed), 343.15 (4) (a) 3., 619.01
13(1) (a), 619.01 (1) (c) 1., 619.01 (9), 767.24 (3) (c), 786.37, 809.105 (13), 895.485
14(title), 895.485 (2) (a), 895.485 (2) (b), 895.485 (3), 895.485 (4) (intro.), 895.485
15(4) (a), 938.02 (6), 938.207 (1) (c) and (f), 938.33 (4) (intro.), 938.33 (5), 938.34
16(3) (c), 938.355 (2) (b) 2., 938.357 (1), 938.38 (2) (intro.), 938.38 (4) (f) (intro.),
17938.38 (5) (b) and (e), 938.48 (4), 938.52 (1) (b), 938.538 (3) (a) 1p., 938.57 (1) (c),
18938.57 (3) (a) 4., 940.203 (1) (a), 940.205 (1), 940.207 (1), 943.013 (1) (a), 943.015
19(1), 948.01 (3) and 949.06 (1m) (a); and to create 48.02 (5j), 48.02 (22), 48.065
20(3) (g), 48.235 (4) (a) 7g., 48.368 (2), 48.427 (3p), 48.428 (2) (b), 48.62 (1) (c),
2148.977, 808.075 (4) (a) 10., 808.075 (4) (a) 11., 938.02 (5j), 938.02 (22) and
22938.235 (4) (a) 7g. of the statutes; relating to: licensing of certain foster homes

1as village foster homes, guardianship for certain children adjudged to be in
2need of protection or services and making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, any person who receives, with or without transfer of legal
custody, 4 or fewer children, or more than 4 children if all of the children are siblings,
to provide care and maintenance for those children must obtain a license to operate
a foster home from the department of health and social services (DHSS) (to be
renamed the department of health and family services (DHFS) effective on July 1,
1996), a county department of human services or social services (county department)
or a licensed child welfare agency. Currently, any person who receives, with or
without transfer of legal custody, 4 or fewer children to provide care and maintenance
and structured, professional treatment for those children must obtain a license to
operate a treatment foster home from DHSS, a county department or a licensed child
welfare agency.
This bill creates a new category of foster home known as a village foster home,
which is defined in the bill as a facility that is operated by a person required to obtain
a license to operate a village foster home, that provides care and maintenance for no
more than 6 children, that is clustered in a village setting with other village foster
homes, that has as its goal the provision of a stable, long-term placement for those
children and that employs individuals on a long-term basis to provide that care and
maintenance.
Under current law, the court assigned to exercise jurisdiction under the
children's code (juvenile court) has exclusive jurisdiction over the appointment and
removal of the guardian of a child under the general guardianship law and also of
a child who is the subject of a termination of parental rights (TPR) order; a child
without a living parent for whom a finding as to the adoptability of the child is
sought; a child whose guardian's license to accept guardianship has been revoked;
a child whose guardian has been appointed by a foreign jurisdiction but whose
guardian has not filed a TPR or adoption petition in this state; and a child who has
been adjudged to be in need of protection or services because the child is without a
parent or guardian.
This bill grants to the juvenile court exclusive jurisdiction over the
appointment and removal of a relative or a village foster parent as the guardian of
certain children in need of protection or services under certain circumstances.
Specifically, the juvenile court may appoint a relative or a village foster parent as the
guardian of a child if the juvenile court finds all of the following:
1. That the child has been adjudged to be in need of protection or services
because the child is without a living parent or guardian; has been abandoned; has
been the victim of sexual or physical abuse; is at substantial risk of sexual or physical
abuse based on the sexual or physical abuse of another child in the home; has a
parent who has signed a petition stating that the parent is unable to care for the
child; has been placed for adoption in violation of the law; is receiving inadequate

care during the time that a parent is missing, incarcerated, hospitalized or
institutionalized; is at least 12 years old and attests that he or she is in need of special
treatment or care which the parent is unwilling to provide; has a parent who
neglects, refuses or is unable for reasons other than poverty to provide necessary care
so as to seriously endanger the physical health of the child; has a parent who is at
substantial risk of neglecting the child based on the neglect of another child in the
home; is suffering emotional damage for which the parent is neglecting, refusing or
unable to provide treatment; or is suffering from a severe alcohol or other drug abuse
impairment for which the parent is neglecting, refusing or unable to provide
treatment.
2. That the child has been placed outside of his or her home under a juvenile
court order for a cumulative period of one year or more.
3. That the child has been placed with the relative or village foster parent who
has been nominated as the guardian and it is likely that the child will continue to
be placed with the relative or village foster parent for an extended period of time or
until the child attains the age of 18 years.
4. That the relative or village foster parent is likely to be willing and able to
serve as the child's guardian for an extended period of time or until the child attains
the age of 18 years.
5. That it is not in the best interests of the child that a TPR petition be filed with
respect to the child.
6. That the child's parents are neglecting, refusing or unable to carry out the
duties of a guardian of the child.
7. That the agency primarily responsible for providing services for the child
under a juvenile court order has made reasonable efforts to make it possible for the
child to be returned to his or her home, but reunification of the child with his or her
parents and further reunification efforts are unlikely or contrary to the bests interest
of the child.
Under current law, a dispositional order for a child in need of protection or
services terminates at the end of one year, unless the juvenile court specifies a
shorter period of time. Accordingly, to retain jurisdiction over a child in need of
protection or services, the juvenile court must annually extend its order before it
expires. Under this bill, if a relative or village foster parent is appointed as the
guardian of a child and the home of the relative or village foster parent is designated
by the juvenile court as the child' permanent foster home, the child's dispositional
order remains in effect until the guardianship order terminates, the juvenile court
enters a change in placement order, the juvenile court terminates the dispositional
order or the child attains 18 years of age, whichever occurs first. The juvenile court
may terminate the guardianship order by removing the guardian for cause,
accepting the guardian's resignation or terminating the guardianship on the request
of the child's parent if the parent shows that there has been a substantial change in
circumstances, that the parent is willing and able to carry out the duties of a
guardian and that termination of the guardianship would be in the child's best
interests.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB601, s. 1 1Section 1. 20.410 (3) (ho) of the statutes, as affected by 1995 Wisconsin Act 77,
2is amended to read:
SB601,5,153 20.410 (3) (ho) Juvenile residential aftercare. The amounts in the schedule for
4providing foster care, treatment foster care, group home care and institutional child
5care to delinquent children under ss. 49.19 (10) (d), 938.48 (4) and (14) and 938.52.
6All moneys transferred under s. 301.26 (4) (cm) and all moneys received in payment
7for providing foster care, treatment foster care, group home care and institutional
8child care to delinquent children under ss. 49.19 (10) (d), 938.48 (4) and (14) and
9938.52 as specified in s. 301.26 (4) (e) shall be credited to this appropriation. If
10moneys generated by the monthly rate exceed actual fiscal year foster care,
11treatment foster care, group home care and institutional child care costs by 2% or
12more, all moneys in excess of 2% shall be remitted to the counties during the
13subsequent calendar year. Each county shall receive a proportionate share of the
14remittance depending on the total number of days of placement in foster care,
15treatment foster care, group home care or institutional child care.
SB601, s. 2 16Section 2. 20.410 (3) (o) of the statutes, as affected by 1995 Wisconsin Act 77,
17is amended to read:
SB601,6,218 20.410 (3) (o) (title) Federal aid; foster care and treatment foster care. All
19federal moneys received for meeting the costs of providing foster care, treatment
20foster care
and institutional child care to delinquent children under ss. 938.48 (4) and
21(14) and 938.52, and for the cost of care for children under s. 49.19 (10) (d). All moneys

1received under this paragraph shall be deposited in the general fund as a
2nonappropriated receipt.
SB601, s. 3 3Section 3. 20.410 (3) (oo) of the statutes, as created by 1995 Wisconsin Act 27,
4is amended to read:
SB601,6,95 20.410 (3) (oo) Federal aid; community youth and family aids. All federal
6moneys received as child welfare funds under 42 USC 620 to 626 as limited under
7s. 48.985 and all federal moneys received relating to providing care in foster homes,
8treatment foster homes, group homes or child caring institutions for the purposes of
9s. 301.26, and all other federal moneys received for meeting costs under s. 301.26.
SB601, s. 4 10Section 4. 20.435 (3) (cf) (title) of the statutes, as affected by 1995 Wisconsin
11Act 27
, is amended to read:
SB601,6,1312 20.435 (3) (cf) (title) Foster, treatment foster and family-operated group home
13parent insurance and liability.
SB601, s. 5 14Section 5. 20.435 (3) (dd) of the statutes, as affected by 1995 Wisconsin Act 27,
15is amended to read:
SB601,6,1916 20.435 (3) (dd) State foster care and adoption services. The amounts in the
17schedule for foster care, treatment foster care, institutional child care and subsidized
18adoptions under ss. 48.48 (12) and 48.52, for the cost of care for children under s.
1949.19 (10) (d) and for the cost of the foster care monitoring system.
SB601, s. 6 20Section 6. 20.435 (3) (pd) of the statutes, as affected by 1995 Wisconsin Act 27,
21is amended to read:
SB601,7,222 20.435 (3) (pd) Federal aid; state foster care and adoption services. All federal
23moneys received for meeting the costs of providing foster care, treatment foster care
24and institutional child care under s. 48.52, and for the cost of care for children under

1s. 49.19 (10) (d). Disbursements for foster care under s. 46.03 (20) and for the
2purposes described under s. 48.627 may be made from this appropriation.
SB601, s. 7 3Section 7. 20.435 (7) (b) of the statutes, as affected by 1995 Wisconsin Act 77,
4is amended to read:
SB601,7,215 20.435 (7) (b) Community aids. The amounts in the schedule for human
6services under s. 46.40, for reimbursement to counties having a population of less
7than 500,000 for the cost of court attached intake services under s. 48.06 (4), for
8shelter care under ss. 48.58 and 938.22 and for foster care and treatment foster care
9under s. 49.19 (10). Social services disbursements under s. 46.03 (20) (b) may be
10made from this appropriation. Refunds received relating to payments made under
11s. 46.03 (20) (b) for the provision of services for which moneys are appropriated under
12this paragraph shall be returned to this appropriation. Notwithstanding ss. 20.001
13(3) (a) and 20.002 (1), the department of health and family services may transfer
14funds between fiscal years under this paragraph. The department shall deposit into
15this appropriation funds it recovers under ss. 46.495 (2) (b) and 51.423 (15) from prior
16year audit adjustments including those resulting from audits of services under s.
1746.26, 1993 stats., or s. 46.27. Except for amounts authorized to be carried forward
18under s. 46.45, all funds recovered under ss. 46.495 (2) (b) and 51.423 (15) and all
19funds allocated under s. 46.40 and not spent or encumbered by December 31 of each
20year shall lapse to the general fund on the succeeding January 1 unless carried
21forward to the next calendar year by the joint committee on finance.
SB601, s. 8 22Section 8. 20.445 (3) (d) of the statutes, as affected by 1995 Wisconsin Act 27,
23is amended to read:
SB601,8,1324 20.445 (3) (d) Income maintenance payments to individuals and counties. A
25sum sufficient to provide state aid for county administered public assistance

1programs for which reimbursement is provided under s. 49.33 (9) and to provide
2reimbursement to counties for the cost of foster care and treatment foster care
3provided by nonlegally responsible relatives under state or county administered
4programs, if the relatives are licensed to operate foster homes or treatment foster
5homes
under s. 48.62. Total payments under this paragraph to a county for the
6reimbursement of nonlegally responsible relative foster care costs incurred in a
7calendar year may not exceed the amount for which the county was reimbursed
8under this paragraph for nonlegally responsible relative foster care costs incurred
9in 1994. Disbursements for public assistance may be made directly from this
10appropriation including the state and county share under s. 46.03 (20) (a). Refunds
11received relating to payments made under s. 46.03 (20) (a) shall be returned to this
12appropriation. The receipt of the counties' payments for their share under s. 46.03
13(20) shall be returned to this appropriation.
SB601, s. 9 14Section 9. 46.03 (7m) of the statutes, as affected by 1995 Wisconsin Act 27, is
15amended to read:
SB601,8,2016 46.03 (7m) Foster care. In each federal fiscal year, ensure that there are no
17more than 2,200 children in foster care and treatment foster care placements for
18more than 24 months, consistent with the best interests of each child. Services
19provided in connection with this requirement shall comply with the requirements
20under P.L. 96-272.
SB601, s. 10 21Section 10. 46.036 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
22section 2051, is amended to read:
SB601,9,723 46.036 (1) All care and services purchased by the department or by a county
24department under s. 46.215, 46.22, 46.23, 51.42 or 51.437, except as provided under
25subch. III of ch. 49 and s. 301.08 (2), shall be authorized and contracted for under the

1standards established under this section. The department may require the county
2departments to submit the contracts to the department for review and approval. For
3purchases of $10,000 or less the requirement for a written contract may be waived
4by the department. No contract is required for care provided by foster homes or
5treatment foster homes
that are required to be licensed under s. 48.62. When the
6department directly contracts for services, it shall follow the procedures in this
7section in addition to meeting purchasing requirements established in s. 16.75.
SB601, s. 11 8Section 11. 46.10 (14) (a) of the statutes is amended to read:
SB601,9,229 46.10 (14) (a) Except as provided in pars. (b) and (c), liability of a person
10specified in sub. (2) or s. 46.03 (18) for inpatient care and maintenance of persons
11under 18 years of age at community mental health centers, a county mental health
12complex under s. 51.08, the centers for the developmentally disabled, Mendota
13mental health institute and Winnebago mental health institute or care and
14maintenance of persons under 18 years of age in residential, nonmedical facilities
15such as group homes, foster homes, treatment foster homes, child caring institutions
16and juvenile correctional institutions is determined in accordance with the
17cost-based fee established under s. 46.03 (18). The department shall bill the liable
18person up to any amount of liability not paid by an insurer under s. 632.89 (2) or (2m)
19or by other 3rd party benefits, subject to rules which include formulas governing
20ability to pay promulgated by the department under s. 46.03 (18). Any liability of the
21patient not payable by any other person terminates when the patient reaches age 18,
22unless the liable person has prevented payment by any act or omission.
SB601, s. 12 23Section 12. 46.10 (14) (b) of the statutes, as affected by 1995 Wisconsin Act 77,
24is amended to read:
SB601,10,9
146.10 (14) (b) Except as provided in par. (c) and subject to par. (cm), liability
2of a parent specified in sub. (2) or s. 46.03 (18) for the care and maintenance of the
3parent's minor child who has been placed by a court order under s. 48.355, 48.357,
4938.183 (2), 938.355 or 938.357 in a residential, nonmedical facility such as a group
5home, foster home, treatment foster home, child caring institution or juvenile
6correctional institution shall be determined by the court by using the percentage
7standard established by the department under s. 46.25 (9) (a) and by applying the
8percentage standard in the manner established by the department under s. 46.25 (9)
9(b).
SB601, s. 13 10Section 13. 46.16 (2) of the statutes is amended to read:
SB601,10,1911 46.16 (2) (title) Child welfare agencies; foster homes; treatment foster
12homes;
child care centers; day nurseries; nursery schools. It may license and
13revoke licenses of and exercise supervision over all child welfare agencies and the
14placement of children in foster homes and treatment foster homes, and grant permits
15to foster homes, treatment foster homes, child care centers, day nurseries and
16nursery schools. In the discharge of this duty it may inspect the records of child
17welfare agencies, child care centers, day nurseries, nursery schools and visit all
18institutions conducted by them and all foster homes and treatment foster homes in
19which children are placed.
SB601, s. 14 20Section 14. 46.21 (2) (j) of the statutes, as affected by 1995 Wisconsin Act 27,
21is amended to read:
SB601,11,522 46.21 (2) (j) May exercise approval or disapproval power over contracts and
23purchases of the director that are for $50,000 or more, except that the county board
24of supervisors may not exercise approval or disapproval power over any personal
25service contract or over any contract or purchase of the director which relates to

1community living arrangements, adult family homes, or foster homes or treatment
2foster homes
and which was entered into pursuant to a contract under s. 46.031 (2g)
3or 301.031 (2g), regardless of whether the contract mentions the provider, except as
4provided in par. (m). This paragraph does not preclude the county board of
5supervisors from creating a central purchasing department for all county purchases.
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