In reviewing a proposed rate, DCF must consider certain factors, including: 1) changes in the consumer price index; 2) changes in allowable costs based on current actual cost data or documented projections of costs; 3) changes in program utilization that affect the per client rate or per client administrative rate; 4) changes in DCF's expectations relating to service delivery; 5) changes in service delivery proposed by the residential care center, group home, or child welfare agency and agreed to by DCF; 6) the loss of any source of revenue that had been used to pay expenses; 7) changes in any state or federal laws, rules, or regulations that result in any change in the cost of providing services, including any changes in the minimum wage; 8) competitive factors; 9) the availability of funding to pay for the services to be provided under the proposed rate; and 10) any other factor relevant to the setting of a rate that DCF may determine by rule promulgated under the bill.
If DCF determines that a proposed rate is appropriate, DCF must approve the proposed rate. If DCF does not approve a proposed rate, DCF must negotiate with the residential care center, group home, or child welfare agency to determine an agreed to rate. If after negotiations a rate is not agreed to, the parties must engage in mediation to arrive at an agreed to rate. If after mediation a rate is not agreed to, the residential care center, group home, or child welfare agency may not provide the service for which the rate was proposed.
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:
SECTION 1. 49.343 (title) of the statutes is amended to read:
49.343 (title) Rates for residential care centers and, group homes, and child welfare agencies.
SECTION 2. 49.343 (1) of the statutes is renumbered 49.343 (1g) and amended to read:
49.343 (1g) ESTABLISHMENT OF RATES. Subject to sub. (1m), each residential care center for children and youth, as defined in s. 48.02 (15d), and each group home, as defined in s. 48.02 (7), that is incorporated under ch. 180, 181, 185, or 193 shall establish a per client rate for its services and each child welfare agency shall establish a per client administrative rate for the administrative portion of its treatment foster care services. A residential care center for children and youth and a group home shall charge all purchasers the same rate for the same services and a child welfare agency shall charge all purchasers the same administrative rate for the same treatment foster care services.
SECTION 3. 49.343 (1d) of the statutes is created to read:
49.343 (1d) DEFINITIONS. In this section:
(a) "Administrative rate" means the difference between the rate charged by a child welfare agency to a purchaser of treatment foster care services and the rate paid by the child welfare agency to a treatment foster parent for the care and maintenance of a child.
(b) "Child welfare agency" means a child welfare agency that is authorized under s. 48.61 (7) to license treatment foster homes.
(c) "Group home" has the meaning given in s. 48.02 (7).
(d) "Residential care center for children and youth" has the meaning given in s. 48.02 (15d).
SECTION 4. 49.343 (1g) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
49.343 (1g) ESTABLISHMENT OF RATES. For services provided beginning on January 1, 2011, the department shall establish the per client rate that a residential care center for children and youth or a group home may charge for its services, and the per client administrative rate that a child welfare agency may charge for the administrative portion of its treatment foster care services, as provided in this section. In establishing rates for a placement specified in s. 938.357 (4) (c) 1. or 2., the department shall consult with the department of corrections. A residential care center for children and youth and a group home shall charge all purchasers the same rate for the same services and a child welfare agency shall charge all purchasers the same administrative rate for the same treatment foster care services.
SECTION 5. 49.343 (1m) of the statutes is amended to read:
49.343 (1m) NEGOTIATION OF RATES. Notwithstanding sub. (1) (1g), the department, a county department under s. 46.215, 46.22, 46.23, 51.42, or 51.437, a group of those county departments, or the department and one or more of those county departments, and a residential care center for children and youth or group home, as described in sub. (1), may negotiate a per client rate for the services of that residential care center for children and youth or group home, and the department, a county department under s. 46.215, 46.22, 46.23, 51.42, or 51.437, a group of those county departments, or the department and one or more of those county departments, and a child welfare agency may negotiate a per client administrative rate for the administrative portion of the treatment foster care services of that child welfare agency, if the department, that county department, the county departments in that group of county departments, or the department and one or more of those county departments, agree to place 75% or more of the residents of that residential care center for children and youth or group home or of the treatment foster homes operated by that child welfare agency during the period for which that rate is effective. A residential care center for children and youth or group home that negotiates a per client rate under this subsection shall charge that rate to all purchasers of its services the same rate for the same services and a child welfare agency that negotiates a per client administrative rate under this subsection shall charge all purchasers of its treatment foster care services the same administrative rate for the same treatment foster care services.
SECTION 6. 49.343 (1m) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed.
SECTION 7. 49.343 (2) (title) of the statutes is created to read:
49.343 (2) (title) DETERMINATION OF RATES.
SECTION 8. 49.343 (2) of the statutes is renumbered 49.343 (2) (a) and amended to read:
49.343 (2) (a) A By October 1, 2010, and annually after that, a residential care center for children and youth or a group home, as described in sub. (1) or (1m), shall submit to the department the rate it charges and any change in that rate before a charge is made to any purchaser per client rate that it proposes to charge for services provided in the next year and a child welfare agency shall submit to the department the proposed per client administrative rate that it proposes to charge for treatment foster care services provided in the next year. The department shall provide forms and instructions for the submission of rates and changes in proposed rates under this subsection paragraph and a residential care center for children and youth or a , group home, or child welfare agency that is required to submit a rate or a change in a proposed rate under this subsection paragraph shall submit that rate or change in a proposed rate using those forms and instructions.
SECTION 9. 49.343 (2) (a) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is repealed and recreated to read:
49.343 (2) (a) By October 1 annually, a residential care center for children and youth or a group home shall submit to the department the per client rate that it proposes to charge for services provided in the next year and a child welfare agency shall submit to the department the proposed per client administrative rate that it proposes to charge for treatment foster care services provided in the next year. The department shall provide forms and instructions for the submission of proposed rates under this paragraph and a residential care center for children and youth, group home, or child welfare agency that is required to submit a proposed rate under this paragraph shall submit that proposed rate using those forms and instructions.
SECTION 10. 49.343 (2) (b) of the statutes is created to read:
49.343 (2) (b) The department shall review a proposed rate submitted under par. (a) and audit the residential care center for children and youth, group home, or child welfare agency submitting the proposed rate to determine whether the proposed rate is appropriate to the level of services to be provided, the qualifications of the residential care center for children and youth, group home, or child welfare agency to provide those services, and the reasonable and necessary costs of providing those services. In reviewing a proposed rate, the department shall consider all of the following factors:
1. Changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.
2. Changes in the allowable costs of the residential care center for children and youth, group home, or child welfare agency based on current actual cost data or documented projections of costs.
3. Changes in program utilization that affect the per client rate or per client administrative rate.
4. Changes in the department's expectations relating to service delivery.
5. Changes in service delivery proposed by the residential care center for children and youth, group home, or child welfare agency and agreed to by the department.
6. The loss of any source of revenue that had been used to pay expenses, resulting in a lower per client rate or per client administrative rate for services.
7. Changes in any state or federal laws, rules, or regulations that result in any change in the cost of providing services, including any changes in the minimum wage, as defined in s. 49.141 (1) (g).
8. Competitive factors.
9. The availability of funding to pay for the services to be provided under the proposed rate.
10. Any other factor relevant to the setting of a rate that the department may determine by rule promulgated under sub. (4).
SECTION 11. 49.343 (2) (c) of the statutes is created to read:
49.343 (2) (c) If the department determines under par. (b) that a proposed rate submitted under par. (a) is appropriate, the department shall approve the proposed rate. If the department does not approve a proposed rate, the department shall negotiate with the residential care center for children and youth, group home, or child welfare agency to determine an agreed to rate. If after negotiations a rate is not agreed to, the department and residential care center for children and youth, group home, or child welfare agency shall engage in mediation under the rate resolution procedure promulgated by rule under sub. (4) to arrive at an agreed to rate. If after mediation a rate is not agreed to, the residential care center for children and youth, group home, or child welfare agency may not provide the service for which the rate was proposed.
SECTION 12. 49.343 (3) of the statutes is amended to read:
49.343 (3) AUDIT. The department may require an audit of any residential care center for children and youth or, group home, as described in sub. (1) or (1m), or child welfare agency for the purpose of collecting federal funds.
SECTION 13. 49.343 (4) of the statutes is created to read:
49.343 (4) RULES. The department shall promulgate rules to implement this section. Those rules shall include rules providing for all of the following:
(a) Standards for determining whether a proposed rate is appropriate to the level of services to be provided, the qualifications of a residential care center for children and youth, group home, or child welfare agency to provide those services, and the reasonable and necessary costs of providing those services.
(b) Factors for the department to consider in reviewing a proposed rate.
(c) Procedures for reviewing proposed rates, including rate resolution procedures for mediating an agreed to rate when negotiations fail to produce an agreed to rate.
SECTION 14. 938.357 (4) (c) 1. of the statutes is amended to read:
938.357 (4) (c) 1. If a juvenile is placed in a Type 2 juvenile correctional facility operated by a child welfare agency under par. (a) and it appears that a less restrictive placement would be appropriate for the juvenile, the department, after consulting with the child welfare agency that is operating the Type 2 juvenile correctional facility, may place the juvenile in a less restrictive placement, and may return the juvenile to the Type 2 juvenile correctional facility without a hearing under sub. (1) (am) 2. The child welfare agency shall establish a rate for each type of placement shall be established by the department of children and families, in consultation with the department, in the manner provided in s. 49.343.
SECTION 15. 938.357 (4) (c) 2. of the statutes is amended to read:
938.357 (4) (c) 2. If a juvenile is placed in a Type 2 residential care center for children and youth under s. 938.34 (4d) and it appears that a less restrictive placement would be appropriate for the juvenile, the child welfare agency operating the Type 2 residential care center for children and youth shall notify the county department that has supervision over the juvenile and, if the county department agrees to a change in placement under this subdivision, the child welfare agency may place the juvenile in a less restrictive placement. A child welfare agency may also, with the agreement of the county department that has supervision over a juvenile who is placed in a less restrictive placement under this subdivision, return the juvenile to the Type 2 residential care center for children and youth without a hearing under sub. (1) (am) 2. The child welfare agency shall establish a rate for each type of placement shall be established by the department of children and families, in consultation with the department, in the manner provided in s. 49.343.
SECTION 9108. Nonstatutory provisions; Children and Families.
(1) CHILD WELFARE PROVIDER RATE REGULATION.
(a) Transition. Notwithstanding section 49.343 (1g) and (1m) of the statutes, as affected by this act, for services provided beginning on January 1, 2010, and ending on December 31, 2010, a residential care center for children and youth, as defined in section 49.343 (1d) (d) of the statutes, as created by this act, and a group home, as defined in section 49.343 (1d) (c) of the statutes, as created by this act, shall charge the same per client rate for its services as it charged for services provided on December 31, 2009, and a child welfare agency, as defined in section 49.343 (1d) (b) of the statutes, as created by this act, shall charge the same per client administrative rate, as defined in section 49.343 (1d) (a) of the statutes, as created by this act, for the administrative portion of its treatment foster care services as it charged for the administrative portion of those services on December 31, 2009.
(b) Rules.
1. 'Permanent rules.' The department of children and families shall submit in proposed form the rules required under section 49.343 (4) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 7th month beginning after the effective date of this subdivision.
2. 'Emergency rules.' Using the procedure under section 227.24 of the statutes, the department of children and families may promulgate the rules required under section 49.343 (4) of the statues, as created by this act, for the period before the effective date of the rules submitted under subdivision 1., but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a), (2) (b), and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this subdivision as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subdivision.
SECTION 9308. Initial applicability; Children and Families.
(1) CHILD WELFARE PROVIDER RATE REGULATION.
(a) SECTION 9108 (1) (a) of this act first applies to a contract for the provision of services that is in effect on December 31, 2009, and that contains provisions that are inconsistent with that treatment on the day on which the contract expires or is extended, modified, or renewed, whichever occurs first.
(b) The repeal and recreation of section 49.343 (1g) of the statutes first applies to a contract for the provision of services that is in effect on December 31, 2010, and that contains provisions that are inconsistent with that treatment on the day on which the contract expires or is extended, modified, or renewed, whichever occurs first.
SECTION 9408. Effective dates; Children and Families.
(1) CHILD WELFARE PROVIDER RATE REGULATION. The treatment of section 938.357 (4) (c) 1. and 2. of the statutes, the repeal of section 49.343 (1m) of the statutes, and the repeal and recreation of section 49.343 (1g) and (2) (a) of the statutes take effect on January 1, 2011.
(End)
LRB-0884LRB-0884/4
GMM:bjk:jf
2009 - 2010 LEGISLATURE
DOA:......Stinebrink, BB0230 - Graduated foster care licensing system
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
health and human services
Children
Under current law, any person who receives four or fewer children or, under certain circumstances, more than four children to provide care and maintenance for those children must obtain a license to operate a foster home and any person who receives four 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. A foster parent is reimbursed for basic maintenance according to age-related rates specified in the statutes and may receive supplemental payments for special needs, exceptional circumstances, and initial clothing allowances according to rates promulgated by DCF by rule. In addition, a treatment foster parent receives supplemental payments for providing treatment foster care. A relative who provides care and maintenance for a child is not required to obtain a foster home or treatment foster home license, but may, if he or she meets certain conditions, receive kinship care payments of $215 per month or, if he or she has been appointed guardian of the child, long-term kinship care payments in that amount.
This bill eliminates kinship care and long-term kinship care payments and treatment foster homes as a separate licensing category effective on January 1, 2010. Instead, the bill requires DCF to promulgate rules regulating foster care as follows:
1. Rules providing levels of care that a foster home is licensed to provide. Those levels of care must be based on the level of knowledge, skill, training, experience, and other qualifications that are required of the licensee, the level of responsibilities that are expected of the licensee, the needs of the children who are placed with the licensee, and any other requirements relating to the ability of the licensee to provide for those needs that DCF may promulgate by rule.
2. Rules establishing a standardized assessment tool to assess the needs of a child placed outside the home, to determine the level of care that is required to meet those needs, and to place the child in a placement that meets those needs. A foster home that is licensed to provide a given level of care may provide foster care for any child whose needs are assessed to be at or below the level of care that the foster home is licensed to provide.
3. Rules providing monthly rates of reimbursement for foster care that are commensurate with the level of care that the foster home is licensed to provide and the needs of the child who is placed in the foster home. Those rates are in addition to the basic maintenance rates for foster care and must include rates for supplemental payments for special needs, exceptional circumstances, and initial clothing allowances for children placed in a foster home.
4. Rules providing a monthly retainer fee for a foster home that agrees to maintain openings for emergency placements.
A person who is licensed to operate a treatment foster home on December 31, 2009, is considered to be licensed to operate a foster home beginning on January 1, 2010, and must be reimbursed for foster care at the appropriate rate determined under the rules promulgated by DCF under the bill. A person who is receiving kinship or long-term kinship care payments, on December 31, 2009, is considered to be licensed to operate a foster home beginning on January 1, 2010, and must be reimbursed for foster care at that appropriate rate if the person passes the criminal history and child abuse background investigation required of foster parents.
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:
SECTION 1. 20.410 (3) (ho) of the statutes, as affected by 2009 Wisconsin Act .... (this act), section *, is amended to read:
20.410 (3) (ho) Juvenile residential aftercare. The amounts in the schedule for providing foster care, treatment foster care, group home care, and institutional child care to delinquent juveniles under ss. 49.19 (10) (d), 938.48 (4) and (14), and 938.52. All moneys transferred under s. 301.26 (4) (cm) and all moneys received in payment for providing foster care, treatment foster care, group home care, and institutional child care to delinquent juveniles under ss. 49.19 (10) (d), 938.48 (4) and (14), and 938.52 as specified in s. 301.26 (4) (e) and (ed) shall be credited to this appropriation account. If moneys generated by the daily rate exceed actual fiscal year foster care, treatment foster care, group home care, and institutional child care costs, that excess shall be transferred to the appropriation account under par. (hm) as provided in 2009 Wisconsin Act .... (this act), section 9211 (1), except that if those moneys generated exceed those costs by 2% or more, all moneys in excess of 2% shall be remitted to the counties during the subsequent calendar year or transferred to the appropriation account under par. (kx) during the subsequent fiscal year. Each county and the department shall receive a proportionate share of the remittance and transfer depending on the total number of days of placement in foster care, treatment foster care, group home care, or institutional child care. Counties shall use the funds for purposes specified in s. 301.26. The department shall deposit in the general fund the amounts transferred under this paragraph to the appropriation account under par. (kx).
****NOTE: This is reconciled s. 20.410 (3) (ho). This SECTION has been affected by drafts with the following LRB numbers: LRB-0884/2 and LRB-1494/1.
SECTION 2. 20.437 (1) (b) of the statutes is amended to read:
20.437 (1) (b) Children and family aids payments. The amounts in the schedule for services for children and families under s. 48.563, for reimbursement to counties having a population of less than 500,000 for the cost of court attached intake services under s. 48.06 (4), for shelter care under ss. 48.58 and 938.22, and for foster care, treatment foster care, and subsidized guardianship care under ss. 48.645 and 49.19 (10). Social services disbursements under s. 49.32 (2) (b) may be made from this appropriation. Refunds received relating to payments made under s. 48.47 (20) 49.32 (2) (b) for the provision of services for which moneys are appropriated under this paragraph shall be returned to this appropriation. Notwithstanding ss. 20.001 (3) (a) and 20.002 (1), the department of children and families may transfer funds between fiscal years under this paragraph. The department shall deposit into this appropriation funds it recovers under s. 48.569 (2) (b), from prior fiscal year audit adjustments. Except for amounts authorized to be carried forward under s. 48.565, all funds recovered under s. 48.569 (2) (b) and all funds allocated under s. 48.563 and not spent or encumbered by December 31 of each year shall lapse to the general fund on the succeeding January 1 unless carried forward to the next calendar year by the joint committee on finance.
SECTION 3. 20.437 (1) (cf) of the statutes is amended to read:
20.437 (1) (cf) Foster, treatment foster and family-operated group home parent insurance and liability. The amounts in the schedule to purchase insurance or pay claims as provided under s. 48.627.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 4. 20.437 (1) (dd) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is amended to read:
20.437 (1) (dd) State foster care, guardianship, and adoption services. The amounts in the schedule for foster care, treatment foster care, institutional child care, and subsidized adoptions under ss. 48.48 (12) and 48.52, for the cost of care for children under s. 49.19 (10) (d), for the cost of subsidized guardianship payments under s. 48.62 (5), for the cost of the foster care monitoring system, for the cost of providing, or contracting with private adoption agencies to assist the department in providing, services to children with special needs who are under the guardianship of the department to prepare those children for adoption, and for the cost of providing postadoption services to children with special needs who have been adopted.
****NOTE: This is reconciled s. 20.437 (1) (dd). This SECTION has been affected by drafts with the following LRB numbers: LRB-0292/1 and LRB-0884/2.
SECTION 5. 20.437 (1) (pd) of the statutes, as affected by 2009 Wisconsin Act .... (this act), is amended to read:
