HB-6089, As Passed Senate, December 18, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6089

A bill to establish the foster care trust fund in the

department of human services; to establish the state foster care

board; to prescribe the powers and duties of the state foster care

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) "Board" means the state foster care trust fund board

created in section 4.

(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.

(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 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) "Trust fund" or "fund" means the foster care trust fund

created in section 3.

(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 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 foster care trust fund is created in the state

treasury as a charitable and educational endowment fund. Money in

the fund shall be expended only as provided in this section. The

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 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, any amounts

received under section 9 of this act, and interest and earnings

accrued from the saving and investment of that money.

(3) The state treasurer shall direct the investment of the

trust fund.

(4) Not more than 1/2 of the balance 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 board as provided in section 10.

(5) Money in the trust fund shall be available for

disbursement upon appropriation.

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

that the deposits credited into the trust from all sources as

provided under this section equal or exceed $800,000.00.

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

date that the deposits credited into the fund from all sources

equal or exceed $800,000.00.

(8) All expenses authorized under this act or necessary to

implement this act shall only be funded by the trust fund created

in this section.

(9) 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. 4. (1) The state foster care trust fund board is created

within the department. The 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 board shall appoint the executive director of the

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 board. The board shall approve the number of staff members

hired and their job descriptions.

Sec. 5. (1) The board shall consist of 13 voting members as

follows:

(a) The director of the department, the director of community

health, the children's ombudsman, or designees authorized to speak

on their behalf.

(b) Ten 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.

(2) 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.

(3) The governor shall designate a chairperson of the board

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

position at the pleasure of the governor. The board may elect other

officers and committees as it considers appropriate.

(4) Members of the board shall serve without compensation.

Members of the board may receive reimbursement for necessary travel

and expenses consistent with relevant statutes and the rules and

procedures of the civil service commission and department of

management and budget.

Sec. 6. (1) The business that the 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.

(2) 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.

Sec. 7. (1) The 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 energy, 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.

(n) The state supreme court.

(o) The state foster care review board.

(p) The Michigan association of counties or its successor

organization.

(2) The 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.

(3) The 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 fund balance reaches $800,000.00, and

subject to section 3(6) and (7), and biennially thereafter, develop

a state plan for the distribution of funds from the fund. In

developing the plan, the 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 board shall notify the

governor and the members of the legislature that the plan is

available.

subject to section 3(6) and (7), develop and publicize criteria for

the receipt of trust 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) One year after the fund balance reaches $800,000.00,

subject to section 3(6) and (7), establish a procedure for an

annual, internal evaluation of the functions, responsibilities, and

performance of the board. In a year in which the biennial state

plan is prepared, the evaluation shall be coordinated with the

preparation of the state plan.

(4) The board may enter into contracts with public or private

agencies to fulfill the requirements of this act.

Sec. 8. The 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.

Sec. 9. (1) The 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

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.

(2) Money received in the manner described in subsection (1)

shall be transmitted to the state treasurer for deposit in the

trust fund.

Sec. 10. The board may authorize the disbursement of available

money from the trust fund, upon legislative appropriations, as

provided in section 3, for the following purposes:

(a) To fund a private nonprofit or public organization in the

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 and the

organization demonstrates a willingness and ability to provide

program models and consultation to organizations and communities

regarding program development and maintenance. The amount and types

of in-kind services are subject to the approval of the board.

Before expending any money from the fund, the board shall establish

qualifying criteria for expending those funds or awarding any

grants and may specify any conditions for each expenditure or

grant.

(b) To fund the board created in section 4 for the actual and

necessary operating expenses that the board incurs in performing

its duties. Authorizations for disbursement of fund money under

this subsection shall be kept at a minimum in furtherance of the

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

encourage the direct provision of services to foster care.

Sec. 11. (1) The board shall annually prepare an accounting of

revenues and expenditures from the trust fund. This accounting

shall be prepared using generally accepted accounting principles

and in a manner that will provide detailed and itemized information

regarding the revenues and expenditures of the trust fund. This

accounting shall be provided to the senate and house of

representatives appropriations committees.

(2) To the extent practical, the 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 (1),

but shall include general information about the amount of revenue

raised, the types of expenditures made, and what the expenditures

were made for.

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

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