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SB-0511, As Passed House, November 6, 2007

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 511

A bill to make, supplement, and adjust appropriations for

various state departments and agencies for the fiscal year ending

September 30, 2008; to provide for the expenditure of the

appropriations; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

PART 1

LINE-ITEM APPROPRIATIONS

Sec. 101. There is appropriated for the various state

departments and agencies to supplement appropriations for the

fiscal year ending September 30, 2008, from the following funds:

DEPARTMENT OF HUMAN SERVICES

APPROPRIATION SUMMARY:

GROSS APPROPRIATION.................................... $ 0

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental

transfers............................................ 0

ADUSTED GROSS APPROPRIATION............................ $ 0

Total federal revenues................................. 0

Total local revenues................................... 0

Total private revenues................................. 0

Total other state restricted revenues.................. 0

State general fund/general purpose..................... $ 0

Sec. 102. CHILDREN'S SERVICES

Adoption support services.............................. $ (166,500)

GROSS APPROPRIATION.................................... $ (166,500)

Appropriated from:

State general fund/general purpose..................... $ (166,500)

Sec. 103. LOCAL OFFICE STAFF AND OPERATIONS

Field staff, salaries and wages........................ $ 166,500

GROSS APPROPRIATION.................................... $ 166,500

Appropriated from:

State general fund/general purpose..................... $ 166,500

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

GENERAL SECTIONS

Sec. 201. In accordance with the provisions of section 30 of

article IX of the state constitution of 1963, total state spending

from state resources in this appropriation act for the fiscal year

ending September 30, 2008 is $0 and state appropriations paid to

local units of government are $0.

Sec. 202. The appropriations made and expenditures authorized

under this act and the departments, commissions, boards, offices,

and programs for which appropriations are made under this act are

subject to the management and budget act, 1984 PA 431, MCL 18.1101

to 18.1594.

DEPARTMENT OF HUMAN SERVICES

Sec. 401. (1) Subject to subsection (3), beginning October 1,

2007, preference shall be given in the provision of direct foster

care services to public and private agencies that are nationally

accredited.

(2) Contracts with licensed child placing agencies shall

include specific performance and incentive measures with a focus on

achieving permanency placement for children in foster care.

(3) Beginning October 1, 2007, the department shall not enter

into or maintain a contract with a for-profit child placing agency

or a nonprofit child placing agency that uses a for-profit

management group or contracts with a for-profit organization for

its management to provide direct foster care services unless the

for-profit child placing agency, management group, or organization

was licensed on or before August 1, 2007.

Sec. 402. From the money appropriated in part 1 for adoption

support services, $1,049,400.00 is allocated to support new

adoption contracts focusing on long-term permanent wards who have

been wards for more than 1 year after termination of parental

rights. Private agencies shall receive $16,000.00 for each

finalized placement under the new program.

Sec. 403. (1) From the money appropriated in part 1 for foster

care payments, $2,500,000.00 is allocated to support new contracts

with private nonprofit child placing agencies to facilitate the

licensure of relative caregivers as foster parents. Agencies shall

receive $2,300.00 for each facilitated licensure. The private

nonprofit agency facilitating the licensure would retain the

placement and continue to provide case management services for at

least 50% of the newly licensed cases for which the placement was

appropriate to the agency. Up to 50% of the newly licensed cases

would have direct foster care services provided by the department.

(2) From the money appropriated for foster care payments,

$375,000.00 is allocated to support family incentive grants to

private and community-based foster care service providers to assist

with home improvements needed by foster families to accommodate

foster children.

Sec. 404. (1) Beginning October 1, 2007, from the funds

appropriated in part 1, the department shall reimburse a private

child placing agency for an adoption placement or finalization at

the following unit rate, as applicable, depending on the category

into which the placement falls under subsection (2):

(a) For basic and standard, $2,594.00 for a placement,

$1,733.00 for a finalization.

(b) For enhanced, $4,068.00 for a placement, $2,712.00 for a

finalization.

(d) For residential, $6,240.00 for a placement, $4,160.00 for

a finalization.

(e) For I-MARE, $4,368.00 for a placement, $2,912.00 for a

finalization.

(f) For MARE, $5,819.00 for a placement, $3,879.00 for a

finalization.

(g) For preplacement, $1,352.00 for basic or standard,

$2,704.00 for enhanced.

(2) The following categories shall be used to determine which

unit rate is applicable under subsection (1):

(a) The residential category shall be used for a placement

that involves a child who was being cared for in a residential

child caring institution.

(b) The MARE category shall be used for a placement other than

an interagency placement in which the private agency used the

Michigan adoption resource exchange photo-listing system.

placement in which the private agency used the Michigan adoption

resource exchange photo-listing system.

(d) A placement to which subdivisions (a) to (c) do not apply

shall be reimbursed based on the length of time between the

termination of parental rights or case referral and the placement

as follows:

(i) The premium category shall be used if the placement is

achieved less than 6 months after the termination of parental

rights, or after the case referral to the agency if the case was

referred 3 months or more after termination.

(ii) The enhanced category shall be used if the placement is

achieved 6 months or more but less than 9 months after the

termination of parental rights, or after the case referral to the

agency if the case was referred 3 months or more after termination.

(iii) The basic and standard category shall be used if the

placement is achieved 9 months or more after the termination of

parental rights, or after the case referral to the agency if the

case was referred 3 months or more after termination.

(3) The department shall not establish a payment category or

unit rate other than those in this section and shall not expend

funds appropriated in part 1 for a payment that does not fall

within a payment category or unit rate structure established in

this section.

Sec. 410. (1) The goal of high security juvenile services

funded in part 1 shall be to protect the general public from

dangerous juvenile offenders while providing rehabilitation

services to those offenders to safely prepare them for entry into

society.

(2) The department shall take into consideration the

recommendations on a methodology for measuring goals, objectives,

and performance standards developed in conjunction with private

providers of juvenile justice residential programs required in

section 705 of 2004 PA 344.

(3) The department shall allocate money to public and private

providers of high security juvenile services based on their ability

to demonstrate results in all of the following:

(a) Lower recidivism rates.

(b) Higher school completion rates or GED completion rates.

(d) Lower average actual cost per resident.

(e) Availability of appropriate services to residents.

(4) The department shall comply with section 115o of the

social welfare act, 1939 PA 280, MCL 400.115o, regarding placement

of juvenile offenders, and shall refer to that statutory

requirement in making referral recommendations to courts for secure

residential programs.

(5) The department shall require, if possible and practical,

that aftercare services for a juvenile offender be provided by the

same organization or provider that provided residential care for

that juvenile.

Sec. 411. (1) The goal of medium security juvenile services

shall be effective treatment of juvenile offenders to safely

prepare them for entry into society.

(2) The department shall allocate money to public and private

providers of medium security juvenile services based on their

ability to demonstrate results in all of the following:

(a) Reduced rates of recidivism.

(b) Higher rates of high school or GED completion.

(d) Availability of appropriate services to residents.

(e) Lower average actual cost per resident.

(3) The department shall comply with section 115o of the

social welfare act, 1939 PA 280, MCL 400.115o, regarding the

placement of juvenile offenders, and shall refer to that statutory

requirement in making referral recommendations to courts for

residential treatment programs.

(4) The department shall require, if possible and practical,

that aftercare services for a juvenile offender be provided by the

same program or provider that provided treatment for the juvenile

in residential care.

(5) The department shall provide for the transfer of medium

security services equivalent to 80 beds at the W. J. Maxey boys

training school, and shall provide for the placement of juvenile

offenders who need those services in community-based or privately

operated facilities. The transfer and placements shall be completed

by May 1, 2008 if community based or privately operated facilities

have capacity for the new placements by that date.

Sec. 412. (1) The goal of community juvenile justice centers

shall be the effective treatment and rehabilitation of juvenile

offenders in appropriate community settings.

(2) The department shall allocate money to public providers of

juvenile justice day programs based on their ability to demonstrate

results in all of the following:

(a) Reduced rates of recidivism.

(b) Higher rates of high school or GED completion.

(d) Lower average actual cost per resident.

(e) Shorter average stays in a residential facility.

Sec. 413. A private provider of juvenile services may receive

funding for services of different security levels if the provider

has appropriate services for each security level and adequate

measures to physically separate residents of each security level.

Sec. 414. (1) Beginning October 1, 2007, from the money

appropriated in part 1 for foster care payments, Wayne County

foster care payments, and child care fund, the department shall not

enter into or maintain a contract with a for-profit provider of

residential services or a nonprofit provider of residential

services that uses a for-profit management group or contracts with

a for-profit organization for its management for juvenile justice

and abused or neglected youth unless the for-profit residential

provider or the for-profit management group or organization was

licensed on or before August 1, 2007.

(2) Beginning October 1, 2007, from the money appropriated in

part 1 for foster care payments, Wayne County foster care payments,

and child care fund, the department shall pay a provider of

residential services for juvenile justice and abused or neglected

youth at daily rates that are 4.0% above the levels the provider

received during the fiscal year 2006-2007. A provider shall not

receive a daily rate below $130.00.

REPEALERS

Sec. 800. Sections 566, 573, 574, 720, 721, 722, 723, 724, and

726 of 2007 PA 131 are repealed.