03/27/2003 01:37 PM House FIN

HOUSE BILL NO. 166                                                                                                            
                                                                                                                                
     "An Act relating to adoptions that include a subsidy                                                                       
     payment by the state; eliminating annual review of the                                                                     
     subsidy paid by the state after adoption of a hard-to-                                                                     
     place child has occurred; and providing for an                                                                             
     effective date."                                                                                                           
                                                                                                                                
JOANNE  GIBBENS,  DIVISION  OF  FAMILY  AND  YOUTH  SERVICES,                                                                   
DEPARTMENT OF  HEALTH AND  SOCIAL SERVICES (DHSS),  testified                                                                   
in support  of the bill.   She explained that the  bill would                                                                   
repeal a current statute requiring  DHSS to conduct an annual                                                                   
review of  subsidy amounts being  paid to subsidize  adoption                                                                   
and  guardianship.   She noted  that the  payments were  both                                                                   
federally  and statutorily  required and  designed to  assist                                                                   
parents who adopt or become legal  guardians of children with                                                                   
special needs.                                                                                                                  
                                                                                                                                
Ms. Gibbens  noted that  the original  intent of the  statute                                                                   
was to provide  cost containment.  She noted  that the annual                                                                   
review  did not  generally result  in  cost containment,  but                                                                   
rather in  increases in the  amount of subsidies  awarded, as                                                                   
well  as  department  staff  time.   She  proposed  that  the                                                                   
elimination of  the annual review process created  savings by                                                                   
providing cost  containment to existing subsidy  amounts, and                                                                   
by  eliminating  staff time  to  process annual  reviews  and                                                                   
unnecessary  follow ups  for subsidy  inquiry requests.   She                                                                   
noted that the projected annual  savings was $185 thousand of                                                                   
general funds.   She emphasized  that the elimination  of the                                                                   
annual  review  process  did   not  eliminate  the  right  of                                                                   
adoptive parents  or guardians to  request a review  of their                                                                   
subsidy.                                                                                                                        
                                                                                                                                
Representative Stoltze  asked if the savings  occurred in the                                                                   
cost of reviews  or of the actual  payments.  He asked  for a                                                                   
differentiation of these savings at the next hearing.                                                                           
                                                                                                                                
Co-Chair Harris asked if these adoptive parents would be                                                                        
notified that it would now be their responsibility to                                                                           
request a review of their payments.                                                                                             
                                                                                                                                
Ms. Gibbens responded that families currently communicated                                                                      
regularly with the division about their financial needs.                                                                        
                                                                                                                                
HB 166 was HEARD AND HELD.