BillCam

SB-0530, As Passed Senate, October 11, 2017

SUBSTITUTE FOR

SENATE BILL NO. 530

A bill to amend 1939 PA 280, entitled

"The social welfare act,"

by amending section 117a (MCL 400.117a), as amended by 2017 PA 104.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 117a. (1) As used in this section and sections 117b to

117g:

(a) "County juvenile agency" means that term as defined in

section 2 of the county juvenile agency act, 1998 PA 518, MCL

45.622.

(b) "County juvenile agency services" means all juvenile

justice services for a juvenile who is within the court's

jurisdiction under section 2(a) or (d) of chapter XIIA of the

probate code of 1939, 1939 PA 288, MCL 712A.2, or within the

jurisdiction of the court of general jurisdiction under section 606

of the revised judicature act of 1961, 1961 PA 236, MCL 600.606, if

that court commits the juvenile to a county or court juvenile

facility under section 27a of chapter IV of the code of criminal

procedure, 1927 PA 175, MCL 764.27a. If a juvenile who comes within

the court's jurisdiction under section 2(a) or (d) of chapter XIIA

of the probate code of 1939, 1939 PA 288, MCL 712A.2, is at that

time subject to a court order in connection with a proceeding for

which the court acquired jurisdiction under section 2(b) or (c) of

chapter XIIA of the probate code of 1939, 1939 PA 288, MCL 712A.2,

juvenile justice services provided to the juvenile before the court

enters an order in the subsequent proceeding are not county

juvenile agency services, except for juvenile justice services

related to detention.

the county child care fund for services for child welfare or

delinquency matters, including juvenile justice services.

(d) "Donor" means the entity, person, or persons providing the

donated funds.

(e) "Gross expenditure" means the total adjusted expenditures

included in a county's monthly expenditure report and submitted to

the department.

(f) "In-home care" means expenditure of child care fund money

for services and items listed in this section to be an alternative

to out-of-home care or to provide an early return home for a child

placed out of his or her home.

(g) "Juvenile detention facility" means a county-operated or

court-operated juvenile facility licensed or approved as a child

caring institution that houses and provides group care, shelter

care, or detention administered and staffed by county or court

employees.

(h) (c) "Juvenile justice service" means a service, exclusive

of judicial functions, provided by a county for juveniles who are

within or likely to come within the court's jurisdiction under

section 2 of chapter XIIA of the probate code of 1939, 1939 PA 288,

MCL 712A.2, or within the jurisdiction of the court of general

criminal jurisdiction under section 606 of the revised judicature

act of 1961, 1961 PA 236, MCL 600.606, if that court commits the

juvenile to a county or court juvenile facility under section 27a

of chapter IV of the code of criminal procedure, 1927 PA 175, MCL

764.27a. A service includes intake, detention, detention

alternatives, probation, foster care, diagnostic evaluation and

treatment, shelter care, or any other service approved by the

office or county juvenile agency, as applicable, including

preventive, diversionary, or protective care services. A juvenile

justice service approved by the office or county juvenile agency

must meet all applicable state and local government licensing

standards.

(i) "Out-of-home care" means placement outside of the

residence of the child's parent, legal guardian, or, except as

provided in this subdivision, relative where the child is found,

from which the child was removed by the authority of the court, or

in which the child will be placed on a permanent basis.

(2) A juvenile justice funding system for counties that are

not county juvenile agencies, including a child care fund, is

established and shall be administered under the department's

superintending control.

(3) The department shall promulgate rules under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, to monitor juvenile justice services money and to prescribe

child care fund accounting, reporting, and authorization controls

and procedures and child care fund expenditure classifications. For

counties required to have a child care fund, the department shall

fund services that conform to the child care rules promulgated

under this act.

(4) The department shall provide for the distribution of

distribute money appropriated by the legislature to counties for

the cost of juvenile justice services as follows:

(a) Payment for expenditures for children placed with the

department for care, supervision, or placement, including children

who are within the court's jurisdiction under section 2(a) and (b)

of chapter XIIA of the probate code of 1939, 1939 PA 288, MCL

712A.2, shall be paid by the department and reimbursed by the

county for all undisputed charges. Implementation of this

subdivision takes effect on October 1 of the fiscal year following

the appropriation to support new payment processes and the

implementation of technological changes to the statewide automated

child welfare information system.

(b) Payment for expenditures for children not placed with the

department for care, supervision, or placement, including children

who are within the court's jurisdiction under section 2(a) and (b)

of chapter XIIA of the probate code of 1939, 1939 PA 288, MCL

712A.2, shall be paid by a county and be reimbursed by the

department for all undisputed charges. Expenditures described in

this subdivision include the following:

(i) Direct expenditures for out-of-home care, including all of

the following:

(A) Salaries of county- or court-operated detention center,

shelter care, or group care facility specific employees, including,

but not limited to, all of the following:

(I) Management staff of a facility.

(II) Direct service staff of a facility.

(III) Mental health staff of a facility.

(IV) Support staff including clerical staff of a facility.

(V) Janitorial, maintenance, or ground staff of a facility, or

any combination of these.

(VI) Kitchen staff of a facility.

(VII) Security staff of a facility.

(VIII) Circuit court employees who support the child care fund

county- or court-operated detention center, shelter care, or group

care facility.

(B) Fringe benefits, including payroll taxes, medical, vision

and dental insurance, group life insurance, disability insurance,

accident insurance, health savings accounts, retirement

contributions, worker's compensation, and accrued severance

benefits of county- or court-operated detention center, shelter

care, or group care facility specific employees and circuit court

administration who administrate and support the child care fund

county- or court-operated detention center, shelter care, or group

care facility.

(D) Food for children.

(E) Meals furnished to staff who are on duty at a county- or

court-operated detention center, shelter care, or group care

facility and assigned responsibilities for the supervision and care

of the youth during facility mealtime.

(F) Hygiene supplies for children, including shampoo, soap, or

toothpaste.

(G) Education costs for children who are temporary residents

in a county- or court-operated detention center, shelter care, or

group care facility and for whom attendance in a public school

system or local education agency is not an option.

(H) Utilities of a county- or court-operated detention center,

shelter care, or group care facility, including water, gas,

electric, trash, and sewer.

(I) Janitorial supplies of a county- or court-operated

detention center, shelter care, or group care facility.

(J) Kitchen supplies of a county- or court-operated detention

center, shelter care, or group care facility.

(K) Laundry supplies or service of a county- or court-operated

detention center, shelter care, or group care facility.

(L) Linen supplies or service of a county- or court-operated

detention center, shelter care, or group care facility, including

towels and bedding.

(M) Office supplies that are dedicated solely to the county-

or court-operated detention center, shelter care, or group care

facility.

(N) Cellular telephones, landline telephones, and 2-way radios

used for communication that are dedicated solely to the county- or

court-operated detention center, shelter care, or group care

facility.

(O) Copy machine charges that are dedicated to the county- or

court-operated detention center, shelter care, or group care

facility.

(P) Mattress, box spring, or bed frame used in a county- or

court-operated detention center, shelter care, or group care

facility.

(Q) Medical, dental, psychological, and psychiatric services,

including medication, for children who are not covered by another

source which services are not to determine competency.

(R) Periodicals and books of a county- or court-operated

detention center, shelter care, or group care facility.

(S) Recreational supplies, programs, and television in a

county- or court-operated detention center, shelter care, or group

care facility.

(T) Training for child care fund-funded staff and in-service

education directly related to the out-of-home program, excluding

tuition grants or scholarships for college credit.

(U) Mileage reimbursement rate costs for transporting children

of a county- or court-operated detention center, shelter care, or

group care facility. Mileage reimbursement rates used must adhere

to the county or tribe published rates. Mileage reimbursement rates

cover all costs of operating a vehicle, including maintenance,

repairs, taxes, gas, insurance, and registration fees.

(V) Drug testing for children.

(W) Birth certificates for children.

(X) Incentives for youth.

(Y) Interpreter fees for nonjudicial processes.

(Z) Printing, binding, and postage for materials relating to

the education or correspondence relating to children in the county-

or court-operated detention center, shelter care, or group care

facility.

(AA) Membership dues or fees for professional credential

maintenance of staff who provide or support a service to children

under the child care fund, or professional staff for whom

professional licensure is required in their respective job

description.

(BB) Contracted personnel, programming, or services, or any

combination of these.

(CC) Nonscheduled payments.

(DD) New services that the department may agree with counties

and tribes to include that are not identified in this section that

support eligible children and families.

(ii) Administrative or indirect expenditures for out-of-home

care. An administrative or indirect cost payment equal to 10% of a

county's total monthly gross expenditures will automatically be

distributed to the county on a monthly basis. A county is not

required to submit documentation to the department for any of the

expenditures that are covered under the 10% payment.

(iii) Direct expenditures for in-home care, including the

following:

(A) Salaries of circuit court employees who support the child

care fund in-home care program.

(B) Fringe benefits, including payroll taxes, medical and

dental insurance, group life insurance, disability insurance,

accident insurance, health savings accounts, retirement

contributions, and accrued severance benefits of circuit court

employees who support the child care fund in-home care program. For

a county that receives the juvenile court officer grant and the

appointed juvenile court officer works within an approved program,

the proportional fringe benefits for the juvenile court officer may

be reimbursable.

care fund in-home care program. Mileage reimbursement rates used

must adhere to the county or tribe published rates. Mileage

reimbursement rates cover all costs of operating a vehicle,

including maintenance, repairs, taxes, gas, insurance, and

registration fees.

(D) Program supplies and materials, including, but not limited

to, all of the following:

(I) Program-specific supplies, including risk or needs

assessments, recognition plaques, and educational or program

licenses.

(II) Office supplies related to program activities and pro-

social activities.

(III) Food related to program activities and pro-social

activities.

(IV) Drug test kits.

(V) Tethers and other forms of electronic monitoring.

(E) Other costs, including all of the following:

(I) Cellular telephones and other safety tracking technology

for child care fund-funded staff.

(II) Training for child care fund-funded staff and in-service

education related to the in-home care component, excluding tuition

grants or scholarships for college credit.

(III) Education costs for children who are prohibited from

school attendance in a public school system or the local education

agency or have severe educational issues and have been court

ordered into a child care fund-funded educational program.

(IV) Printing, binding, or postage for materials relating to

the education or correspondence on behalf of children in the in-

home care program.

(V) Membership dues or fees professional credential

maintenance of staff who provide or support a service to children

under the child care fund or professional staff for whom

professional licensure is required in their respective job

descriptions.

(VI) Business cards.

(F) Other program-specific activities costs, including

entrance fees for programs.

(G) Conference travel costs for other non-child-care-fund-

related training, including evidence-based and promising practices

training.

(H) Contracted personnel, programming, or services, or any

combination of these.

(I) Unit cost contracts, including all of the following:

(I) Contracted - drug testing lab (per "drug test" basis).

(II) Contracted - counselor fees (per "hour" basis).

(III) Contracted - group session dollar per session (per

"session" basis). Group roster documentation required.

(IV) Contracted - psychological evaluations, excluding

competency examinations (per "evaluation" basis).

(V) Contracted - service providers (per "service" basis).

(J) Closed-end contracts. Closed-end contracts include, but

are not limited to, all of the following:

(I) University contracts, including "program evaluation".

(II) Private agency services contracts.

(III) Educational services contracts.

(IV) Court appointed special advocate (CASA) and wraparound

contracts.

(V) Other contracts identifiable to the program.

(K) Nonscheduled payments or case services payments. A

nonscheduled payment is a payment to an individual or organization

for items specified and defined in the child care fund handbook

that are not included in the state-established per diem rate. A

nonscheduled payment may include the following list:

(I) Emergency costs, including immediate food, clothing,

medical, or dental needs that are not covered by another source.

(II) Gymnasium or other pro-social activity requiring a

membership per child related to program activities.

(III) Rewards or incentive pay for youth related to program

activities.

(IV) Bus tokens or gas cards related to program activities.

(V) Mentor costs - meals, mileage, movies, or social costs

related to program activities.

(VI) Noncontracted service provider related to program

activities.

(VII) Noncontracted group session related to program

activities.

(VIII) Noncontracted psychological evaluations, excluding

competency examinations.

(IX) Family assessment or evaluations.

(X) Noncontracted counselor fees.

(XI) Noncontracted drug testing labs.

(XII) Camps or field trips.

(XIII) Birth certificates for children.

(L) New services that the department may agree with counties

and tribes to include that are not identified in this section that

support eligible children and families.

(iv) Administrative or indirect expenditures for in-home care.

An administrative or indirect cost payment equal to 10% of a

county's total monthly gross expenditures will automatically be

distributed to the county on a monthly basis. A county is not

required to submit documentation to the department for any of the

expenditures that are covered under the 10% payment.

The county amount distributed shall equal 50% of the annual

expenditures from the child care fund of the county established

under section 117c, except that expenditures under section 117c(3)

and expenditures that exceed the amount of a budget approved under

section 117c shall not be included. A distribution under this

subdivision shall not be made to a county that does not comply with

the requirements of this act. The Subject to a county's approval,

the department may reduce the amount distributed to a county by the

amount owed to the state for care received in a state operated

facility or for care received under 1935 PA 220, MCL 400.201 to

400.214, or under the youth rehabilitation services act, 1974 PA

150, MCL 803.301 to 803.309. The distribution may be reduced by the

amount of uncontested liability.

(d) (b) For a county that is a county juvenile agency, the a

county's block grant amount as determined under section 117g in

equal distributions on October 1, January 1, April 1, and July 1 of

each state fiscal year.

(e) (c) Notwithstanding the provisions in subdivision (a),

subject to appropriations, until September 30, 2018, the department

shall pay 100% of the costs of the $9.20 increase to the

administrative rate for providers of foster care services provided

in the annual appropriation for the department budget. For the

purposes of this subdivision only, "foster care" means 24-hour

substitute care for children placed away from their parents or

guardians, as a result of a court order under section 2(b) of

chapter XIIA of the probate code of 1939, 1939 PA 288, MCL 712A.2,

in placements supervised by the department or a private child

placing agency under contract with the department for foster care

services. Foster care services include supervision of placements in

foster family homes, foster family group homes, and preadoptive

placements.

(f) (d) Notwithstanding the provisions of subdivision (a),

(c), until September 30, 2018, the department shall pay 100% of the

administrative rate for providers of treatment foster care services

and foster care services provided in the annual appropriation for

the department budget. For the purposes of this subdivision only,

"foster care" means 24-hour substitute care for children placed

away from their parents or guardians, as a result of a court order

under section 2(b) of chapter XIIA of the probate code of 1939,

1939 PA 288, MCL 712A.2, in placements supervised by the department

or a private child placing agency under contract with the

department for foster care services. Foster care services include

supervision of placements in foster family homes, foster family

group homes, treatment foster care, preadoptive placements, and

supervision of children reunified with the parent with whom the

child lived at the time of removal.

(g) (e) Notwithstanding the provisions in subdivision (a),

(c), until September 30, 2018, the department shall pay 100% of the

costs of any rate increase to the providers of residential foster

care services under contract with the department, as provided in

the annual appropriation for the department budget.

(h) (f) Notwithstanding the provisions in subdivision (a) (c)

and subject to appropriations, in a county with a population of not

less than 575,000 or more than 650,000, for the purpose of this

subdivision only for cases transferred by the department to a child

placing agency, the department shall pay 100% of the administrative

rate to providers responsible for foster care case management

services to families of children who are court-ordered into foster

care due to child abuse or child neglect and placed in the care and

supervision of the department, regardless of placement setting

until the prospective payment system described in subdivision (g)

(i) is implemented. This subdivision does not apply after May 1,

2018.2019.

(i) (g) Notwithstanding the provisions in subdivision (a) (c)

and subject to appropriations, the department shall implement a

prospective payment system as part of a state-administered

performance-based child welfare system in a county with a

population of not less than 575,000 or more than 650,000, for

foster care case management in accordance with section 503 of

article X of 2014 PA 252. The county is only required to contribute

to foster care services payments in an amount that does not exceed

the average of the annual net contribution made by the county for

cases received under section 2(b) of chapter XIIA of the probate

code of 1939, 1939 PA 288, MCL 712A.2, in the 5 previous fiscal

years before October 1, 2015. The prospective payment system as

part of the state-administered performance-based child welfare

system shall be implemented as described in this subdivision but

shall not include in-home care service funding. This subdivision

does not apply after May 1, 2018.2019.

(j) (h) Subdivisions (f) (h) and (g) (i) only impact child

abuse and child neglect services and not juvenile justice program

funding. This subdivision does not apply after May 1, 2018.2019.

(5) The purposes for which funding under this section shall be

distributed as provided under subsection (4) may be allowed unless

otherwise accessible and available by other public assistance

programs necessary to achieve the goals and outcomes for in-home

care or out-of-home care. Reimbursement shall not be made for costs

associated with an otherwise eligible child or family, or both, if

the reason for the unavailability of public assistance is due to

intentional program violations and disqualification of any public

assistance.

(6) All service providers shall submit a request for payment

within 1 calendar year of the date of service. A request for

payment submitted after 1 calendar year from the date of service

requires the provider to submit an exception request to the county

or the department for approval or denial.

(7) The county or the department is not subject to an offset,

chargeback, or reimbursement liability when a child care fund cost

is approved by the county or the department for payment after 1

year from the date of service.

(8) The county is not subject to an offset, chargeback, or

reimbursement liability for prior expenditures resulting from an

error in foster care fund source determinations.

(9) (5) The department is liable for the costs of all juvenile

justice services in a county that is a county juvenile agency other

than county juvenile agency services.

(10) (6) The department shall establish guidelines for the

development of county juvenile justice service plans in counties

that are not county juvenile agencies.

(11) (7) A county that is not a county juvenile agency and

receives state funds for in-home or out-of-home care of children

shall submit reports to the department at least quarterly or as the

department otherwise requires. The reports shall be submitted on

forms provided by the executive director and shall include the

number of children receiving foster care services and the number of

days of care provided.

(12) (8) The department shall maintain a reporting system

providing that reimbursement under subsection (4)(a) (4)(c) shall

be made only on submission of billings based on care given to a

specific, individual child.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

Enacting section 2. This amendatory act does not take effect

unless Senate Bill No. 529 of the 99th Legislature is enacted into

law.