SB 123-ELIMINATE REVIEW OF ADOPTION SUBSIDIES  CHAIR DYSON announced SB 123 to be up for consideration. MR. LINDSTROM said SB 123 is an act relating to adoptions that include a subsidy paid by the state after adoption of a hard-to- place child has occurred. He explained that under current law the department is required to annually review the subsidy payment amounts for each person who has an adoption or a guardianship. SB 123 repeals that requirement and instead, individuals would retain the ability to petition the department at any time for a subsidy review and the department would do so. This is an efficiency measure and would save a fair amount of staff time. The adoption assistance cost- saving proposal language is also in HB 166. Annual reviews are not an effective strategy to reduce or contain the costs of the program. CHAIR DYSON asked what percentage of them got changed as a result of the annual review. MR. LINDSTROM replied that a significant number of subsidies were changed as a result of the reviews. MS. JOANNE GIBBENS, Program Administrator, Division of Family and Youth Services, responded that she didn't have an exact number, but could get it for him. She said there are times when subsidies are decreased, but the majority of them are increased by virtue of the annual review. CHAIR DYSON declared a conflict of interest as his youngest daughter is a legal guardian of two children who are subsidized. One of those children was a danger to her infant children and he is taking care of that child and receiving the subsidy. SENATOR GREEN noted that any parent can still request the review. SENATOR DAVIS said there are more increases than decreases and asked if there was anything in the suggested language that would prevent a requested review from taking place in a timely manner. MS. GIBBENS replied no. CHAIR DYSON commented that the department could do a review if they thought they were being taken advantage of. MS. GIBBENS replied that they could do a review at anytime, but a subsidy may not be decreased without the concurrence of the adoptive parents or the legal guardian according to federal law. SENATOR GUESS asked if the administration was working with the federal government to change that federal policy. MR. LINDSTROM replied that this was not an item. SENATOR GUESS asked if the process of requesting a review at any time is in statute or regulation. MS. GIBBENS replied that she thought it was in DHSS's policy and procedure. SENATOR GUESS suggested if it's in policy and procedures and they are deleting a particular clause, they should insert language stating that the parents have a right to request a review. She pointed out, "It seems that's an important right to have, especially if you are adopting a young child whose needs may change over time." SENATOR GUESS then asked what she thought the impact would be on finding enough people to go through the adoption process versus being a foster parent, because the adoption process is really better for the child and better for the community. MS. GIBBENS said she didn't think it would have much of an impact. DHSS will make it clear to all perspective adoptive parents that the parents have a right to request an increase in their subsidy if the needs of the child change over time. SENATOR GUESS asked what the timeline is for a review. MS. GIBBENS replied that the formal review process is done once a year in the fourth quarter. SENATOR GUESS asked how long the process takes. MS. GIBBENS replied that it would be about a one-month process, depending on the circumstances. CHAIR DYSON announced an at-ease so that Ms. Gibbens could locate the language that states that the parents can request a review. SENATOR GREEN pointed out that the original reason for the review was cost containment and that is not occurring. It was a cost saving measure for the state, not a vehicle for parents to raise their subsidy. SENATOR DAVIS said she thought the state had to abide by federal laws and asked if that language should be in state law also. MR. LINDSTROM responded that the department would be bound by the federal provision to the extent that the assistance is provided by federal 4(e) dollars. Of the 1,530 adoption subsidies, 1,277 are federal and 253 are state. TAPE 03-9, SIDE B    CHAIR DYSON announced an at-ease from 2:27-2:30 p.m.   MS. GIBBENS confirmed that the right to review language is in the department's policy and procedures. CHAIR DYSON requested a copy of the federal and department language for the committee. He wondered if any parent groups had been contacted on this issue or have provided any feedback. SENATOR GREEN moved to pass SB 123 and the fiscal notes out of committee with individual recommendations. There were no objections and it was so ordered.