HB-6089, As Passed House, November 13, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6089

A bill to establish the foster care trust fund in the

department of management and budget; to establish the state foster

care advisory board; to prescribe the powers and duties of the

state foster care advisory board; to provide for the distribution

of the money from the fund; to prescribe the powers and duties of

certain agencies and officials; and to provide for appropriations.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"foster care trust fund act".

Sec. 2. As used in this act:

(a) "Advisory board" means the state foster care advisory

board created in section 3.

(b) "Children's ombudsman office" means the children's

ombudsman office created in section 3 of the children's ombudsman

act, 1994 PA 204, MCL 722.923.

budget.

(d) "Foster care programs" means public or private programs

that provide 24-hour substitute care for a child who is placed out

of his or her parental or legal guardian's home and under the

supervision of the department of human services as a temporary or

permanent ward of the court or public ward placed in a supervising

agency's care under chapter XIIA of the probate code of 1939, 1939

PA 288, MCL 712A.1 to 712A.32, and includes children who cannot

remain at home because their families are unable to provide minimal

care and supervision.

(e) "Fund" means the foster care trust fund created in section

(f) "Juvenile justice program" means a public or private

program where a child is placed out of his or her parental or legal

guardian's home and under the supervision of the department of

human services as a temporary ward of the court under chapter XIIA

of the probate code of 1939, 1939 PA 288, MCL 712A.1 to 712A.32, or

a temporary public ward under the youth rehabilitation services

act, 1974 PA 150, MCL 803.301 to 803.309.

(g) "Local councils" means a public or private community

collaborative that sets the agenda for local collaborative

activities for children in, or aging out of, foster care programs

and juvenile justice programs, that works within the community to

focus resources on common needs and outcomes of children in foster

care, and that acts as the common community voice with state

agencies on issues of strengthening responses to these youths'

needs.

(h) "Public ward" means either of the following:

(i) That term as defined under section 2 of the youth

rehabilitation services act, 1974 PA 150, MCL 803.302.

(ii) A youth whose parents' parental rights have been

terminated and who is legally free for adoption.

Sec. 3. (1) The state foster care advisory board is created

within the department. The advisory board shall exercise its powers

and duties independently of the department except that budget,

procurement, and related management functions shall be performed by

the director of the department.

(2) The advisory board shall appoint the executive director of

the advisory board. The executive director shall be a member of the

state classified civil service. The executive director shall hire

all staff required to exercise the powers and carry out the duties

of the advisory board. The advisory board shall approve the number

of staff members hired and their job descriptions.

(3) The advisory board shall consist of 13 voting members as

follows:

(a) The director of human services, the director of community

health, the chief justice of the Michigan supreme court, and the

director of the children's ombudsman office, or designees

authorized to speak on their behalf.

(b) Nine public members appointed by the governor with the

advice and consent of the senate. As a group, the public members

shall do all of the following:

(i) Demonstrate knowledge in the area of foster care.

(ii) Be representative of the demographic composition of this

state.

(iii) To the extent practicable, be representative of all of the

following categories: birth and foster parents, former foster care

children, the business community, the religious community, the

legal community, higher education providers, professional providers

of foster care services, and volunteers in foster care services.

(4) The term of each public member shall be 3 years, except

that of the public members first appointed, 3 shall serve for 3

years, 3 for 2 years, and 4 for 1 year. A public member shall not

serve more than 2 consecutive terms whether partial or full. A

vacancy shall be filled for the balance of the unexpired term in

the same manner as the original appointment.

(5) The governor shall designate a chairperson of the advisory

board from among the public members. The chairperson shall serve in

that position at the pleasure of the governor. The advisory board

may elect other officers and committees as it considers

appropriate.

(6) Subject to section 10, the actual and necessary per diem

compensation and the schedule for reimbursement of expenses for the

public members of the advisory board shall be the same as is

established annually by the legislature for similar boards that are

reimbursed from the general fund. Subject to section 10, the

compensation and reimbursement, executive director and staff

salaries, and all actual and necessary operating expenses of the

advisory board shall be paid from the fund, according to an

authorization as provided in section 7.

(7) The business that the advisory board performs shall be

conducted at a public meeting of the state board held in compliance

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

Public notice of the time, date, and place of the meeting shall be

given in the manner required by the open meetings act, 1976 PA 267,

MCL 15.261 to 15.275.

(8) The advisory board shall seek input from the general

public and all of the following individuals or groups that have an

interest in or provide services to the foster care industry:

(a) The Michigan federation for children and families or its

successor organization.

(b) The Michigan network for youth and families or its

successor organization.

organizations.

(d) The presidents council of the state universities of

Michigan or its successor organization.

(e) The Michigan community college association or its

successor organization.

(f) Michigan's children or its successor organization.

(g) Michigan league for human services or its successor

organization.

(h) The superintendent of public instruction.

(i) The director of the department of labor and economic

growth.

(j) The director of the department of corrections.

(k) A representative of Michigan court appointed special

advocates.

(l) The association of accredited child and family agencies or

its successor organization.

(m) A representative of the children's trust fund.

(9) A writing prepared, owned, used, in the possession of, or

retained by the state board in the performance of an official

function shall be made available to the public in compliance with

the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

(10) The advisory board shall serve as a collaborative body

that works with existing pubic and private foster care programs and

provides financial assistance and resources to do all of the

following:

(a) Work to identify and address the many issues facing foster

care children in this state.

(b) Work with the foster care community to solve the problems

facing current foster care children and those children who have

been in the foster care system or who will soon age out of the

foster care system.

foster care youth who age out of the system. The support network

should include, but is not limited to, personal counseling,

financial planning, health care options, and college or career

training programs.

(d) Provide for the coordination and exchange of information

on the establishment and maintenance of foster care programs.

(e) Provide statewide educational and public informational

seminars for the purpose of developing appropriate public awareness

regarding foster care; encourage professional persons and groups to

recognize and deal with foster care; make information about foster

care available to the public and organizations and agencies that

deal with problems of foster care; and encourage the development of

community foster care assistance programs.

(f) Educate the public on the various opportunities to serve

within the foster care community, including, but not limited to,

foster parenting, volunteering, mentoring, and foster child

adoption.

(11) In addition to the duties under subsection (10), the

advisory board shall do all of the following:

(a) Meet not less than twice annually at the call of the

chairperson.

(b) One year after the original appointment of the advisory

board, and biennially thereafter, develop a state plan for the

distribution of funds from the fund. In developing the plan, the

advisory board shall review already existing foster care programs.

The plan shall assure that an equal opportunity exists for

establishment of foster care programs and receipt of trust fund

money among all geographic areas in this state. The plan shall be

transmitted to the clerk of the house of representatives and to the

secretary of the senate. The advisory board shall notify the

governor and the members of the legislature that the plan is

available.

fund money by eligible local councils and eligible foster care

programs.

(d) Review, approve, and monitor the expenditure of trust fund

money by foster care programs.

(e) Establish a procedure for an annual, internal evaluation

of the functions, responsibilities, and performance of the advisory

board. In a year in which the biennial state plan is prepared, the

evaluation shall be coordinated with the preparation of the state

plan.

(12) The advisory board shall enter into contracts with public

or private agencies to fulfill the requirements of subsection

(10)(e) and may contract to fulfill the other requirements of

subsection (10). The advisory board shall utilize existing state

resources and staff of participating departments whenever

practicable.

(13) The advisory board may recommend to the governor and the

legislature changes in state programs, statutes, policies, budgets,

and standards that will reduce the problems facing foster care

children, improve coordination among public and private agencies

that provide foster care services, and improve the condition of

children and parents or guardians who are in need of support or

assistance dealing with foster care issues.

(14) The advisory board may do any of the following:

(a) Accept federal money granted by congress or executive

order for the purposes of this act as well as gifts, grants,

bequests, and donations from individuals, private organizations, or

foundations. The acceptance and use of federal money does not

commit state money and does not place an obligation upon the

House Bill No. 6089 (H-1) as amended November 13, 2008

legislature to continue the purposes for which the federal money is

made available.

(b) Plan, manage, or conduct a campaign to solicit gifts,

bequests, grants, or donations of money or property, or pledges of

gifts, bequests, grants, or donations.

(15) Money received in the manner described in subsection (14)

shall be transmitted to the state treasurer for deposit in the

trust fund and, subject to section 10, shall be made available for

expenditure as appropriated by the legislature.

(16) The advisory board may authorize the disbursement of

available money from the trust fund, upon legislative

appropriations, as provided in section 7.

Sec. 5. (1) The foster care trust fund is created in the

department as a charitable and educational endowment fund. The

advisory board shall be the administrator of the trust fund for

auditing purposes and all powers, purposes, and duties of the fund

shall be exercised by the advisory board.

(2) The state treasurer shall credit to the trust fund all

amounts appropriated for this purpose under section 435 of the

income tax act of 1967, 1967 PA 281, MCL 206.435, and money from

any other source for deposit into the trust fund.

(3) [The state treasurer

] shall direct the investment of the trust fund. The trust

fund shall consist of the money credited to the trust fund pursuant

to section 435 of the income tax act of 1967, 1967 PA 281, MCL

206.435, any interest and earnings accruing from the saving and

investment of that money, and money from any other source.

(4) Money in the trust fund at the close of the year shall

remain in the trust fund and shall not lapse to the general fund.

Sec. 7. (1) Subject to the criteria established under

subsections (2) and (3), the money, interest, and earnings of the

trust fund shall be expended, upon appropriation, as follows:

(a) Not more than 1/2 of the money contributed to the trust

fund each year, plus the interest and earnings, excluding

unrealized gains and losses, credited to the trust fund during the

previous fiscal year, shall be available for disbursement upon the

authorization of the advisory board as provided in section 3.

(b) Money granted or received as gifts or donations to the

trust fund shall be available for disbursement upon appropriation

and funds authorized for expenditure shall not be considered assets

of the trust fund for the purposes of subdivision (a).

development or operation of a foster care program if the

organization demonstrates an ability to match, through money or in-

kind services, 50% of the amount of any fund money received. The

amount and types of in-kind services are subject to the approval of

the advisory board and the organization demonstrates a willingness

and ability to provide program models and consultation to

organizations and communities regarding program development and

maintenance.

(d) To fund the advisory board created in section 3 for the

actual and necessary operating expenses that the board incurs in

performing its duties.

(2) No money shall be expended from the fund until the date

that the deposits credited into the fund from amounts appropriated

by the legislature as provided under this section equal or exceed

$800,000.00.

(3) Before expending any money from the fund, the advisory

board shall establish qualifying criteria for expending such funds

or awarding any grants and may specify any conditions for each

expenditure or grant.

(4) Authorizations for disbursement of fund money under

subsection (1)(d) shall be kept at a minimum in furtherance of the

primary purpose of the fund, which is to disburse money under

subsection (1)(a), (b), and (c) to encourage the direct provision

of services to foster care.

(5) The advisory board shall annually prepare an accounting of

revenues and expenditures from the trust fund. This accounting

shall specifically identify the interest and earnings of the trust

fund, shall describe how the amount of interest and earnings has

been affected by the investment options provided for in section

5(3), and shall identify how the increased interest and earnings,

if any, have been expended. This accounting shall be provided to

the senate and house of representatives appropriations committees.

(6) To the extent practical, the advisory board shall annually

prepare an accounting of revenues and expenditures from the trust

fund for persons who have donated to the fund. This accounting does

not need to be as detailed as the accounting required under

subsection (5), but shall include enough general information about

the amount of revenue raised, the types of expenditures made, and

what the expenditures were made for.

House Bill No. 6089 (H-1) as amended November 13, 2008

Sec. 9. Except as otherwise provided under sections 7(2) and

10, the money in the trust fund that is available for distribution

shall be appropriated each year. Except as otherwise provided under

sections 7(2) and 10, money granted or received as a gift or

donation to the trust fund is available for distribution upon

appropriation.

Sec. 10. (1) No compensation, reimbursement, or any other

actual and necessary operating expenses of the advisory board shall

be authorized and appropriated until the date that the deposits

credited into the fund from amounts appropriated by the legislature

as provided under section 5 equal or exceed $800,000.00.

(2) No appropriations shall be made from the fund until the

date that the deposits credited into the fund from amounts

appropriated by the legislature as provided under section 5 equal

or exceed $800,000.00.

[(3) All expenses authorized under this act or necessary to implement this act shall only be funded by the fund created in section 5.]

Enacting section 1. This act does not take effect unless House

Bill No. 6090 of the 94th Legislature is enacted into law.