Legislature(2003 - 2004)
03/31/2003 10:01 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE BILL NO. 123
"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."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this bill would eliminate the annual
review required in current statute regarding the monthly subsidy
paid to those individuals who adopt or become legal guardians of
hard-to-place children in State custody.
JOANNE GIBBONS, Program Administrator, Division of Family & Youth
Services, Department of Health and Social Services confirmed that
this legislation "would eliminate the requirement for the annual
evaluation process for subsidized adoptions or guardianships." She
explained that, originally, the annual review was intended to be a
cost containment measure; however, she revealed, that no savings
have resulted from the process. She explained that federal
guidelines governing the guardianship program specify that the
parents must inform the State of "any changes in their
circumstances that might affect their adoption assistance payment."
Additionally, she noted, the State is not allowed to reduce the
subsidy without the consent of the family. She announced that,
rather than reducing the subsidy amount, the Department has found
that the annual review often results in an increase of the subsidy
payments to parents. Therefore, she continued, the Department has
determined that the elimination of the annual review would specify
that parents are responsible for notifying the State of any changes
in their circumstances and that the elimination of the review would
result in cost savings as indicated in the fiscal note.
Co-chair Wilken asked how Medicaid eligibility would be affected by
the removal of the annual review.
Ms. Gibbons responded that, while Medicaid is required to conduct
an annual review of its recipients, it would be sufficient for the
Department to provide the Division of Medical Assistance with a
list of the eligible children in the program who are receiving
Medicaid.
Co-Chair Wilken clarified that the families would be responsible
for contacting the State were a change in circumstances to occur.
Ms. Gibbons stated that, should this bill become law, the
Department would correspond with all participating adoptive parents
and guardians to inform them of the elimination of the annual
review and that, were their circumstances to change, they would be
required to notify the Department and request a subsidy review.
Senator Taylor asked whether a family's subsidy could be reduced or
eliminated without notification.
Ms. Gibbons replied no.
Senator Hoffman asked how the review process is addressed in other
states.
Ms. Gibbons responded that, "it varies from state to state" in that
some do "an exhaustive" review while others do nothing. She
asserted that the federal government does not require nor support
an annual review being conducted.
Senator Hoffman asked whether the Department has received any cost
containment benefits from the review.
Ms. Gibbons responded that the Department has not.
Co-Chair Wilken asked the difference in the federal verses State
adoption subsidies, and he asked whether the guardianship program
is subsidized.
Ms. Gibbons that the difference between a federal and State
adoption subsidy "is that the children whose needs are funded
through a State adoption subsidy are not eligible for Title 4E"
which is a "federal program that funds services for children in
State custody." She clarified that the backup material reflects the
amount the State pays for those children who do not meet the
federal eligibility requirements for the Title 4E program. She
informed that the federal government does not reimburse the State
for guardianships.
Co-Chair Wilken understood that the guardianship program receives
State general funds and that the adoption program is funded by
Title 4E and general fund money.
Ms. Gibbons responded that is correct.
Co-Chair Wilken asked the definition of a hard-to-place child.
Ms. Gibbons responded that a hard-to-place child is one for whom it
is difficult to find a permanent family placement due to special
needs such as severe mental illness or a physical condition. She
stated that federal criteria also includes children who are part of
a sibling group as single children are easier to place. She noted
that the Department could supply the Committee with a complete
list.
Co-Chair Wilken asked the percent of children in State custody who
are considered hard-to-place.
Ms. Gibbons responded that approximately 90 percent of the children
in the Division of Family and Youth Services' custody are
classified as hard-to-place. She stated that the Department does
not have information on the percent of hard-to-place children in
private adoption scenarios.
Co-chair Wilken and other Committee members voiced surprise at the
number of hard-to-place children in State custody.
Co-Chair Wilken asked how frequently the subsidy rate table is
reviewed.
TOM CHERIAN, Acting Director, Division of Family and Youth
Services, Department of Health and Social Services replied that the
foster care subsidy rate table is reviewed only when the
Legislature authorizes a change in the foster care base rate.
Co-Chair Green offered a motion to REPORT the bill from Committee
with individual recommendations and accompanying fiscal note.
There being no objection, SB 123 MOVED OUT OF COMMITTEE with
previous negative $270,000 fiscal note #1, dated February 27, 2003
from the Department of Health and Social Services.
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