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Senate File 2442

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  1  1    Section 1.  FAMILY INVESTMENT PROGRAM.  There is
  1  2 appropriated from the general fund of the state to the
  1  3 department of human services for the fiscal year beginning
  1  4 July 1, 1996, and ending June 30, 1997, the following amount,
  1  5 or so much thereof as is necessary, to be used for the purpose
  1  6 designated:
  1  7    For assistance under the family investment program under
  1  8 chapter 239:  
  1  9 .................................................. $ 34,787,255
  1 10    1.  The department shall continue the special needs program
  1 11 under the family investment program.
  1 12    2.  The department may adopt administrative rules for the
  1 13 family investment, food stamp, and medical assistance programs
  1 14 to change or delete welfare reform initiatives that threaten
  1 15 the integrity or continuation of the program or that are not
  1 16 cost-effective.  Prior to the adoption of rules, the
  1 17 department shall consult with the welfare reform council,
  1 18 members of the public involved in development of the policy
  1 19 established in the 1993 session of the Seventy-fifth General
  1 20 Assembly, and the chairpersons and ranking members of the
  1 21 human resources committees of the senate and the house of
  1 22 representatives.
  1 23    Sec. 2.  EMERGENCY ASSISTANCE.  There is appropriated from
  1 24 the general fund of the state to the department of human
  1 25 services for the fiscal year beginning July 1, 1996, and
  1 26 ending June 30, 1997, the following amount, or so much thereof
  1 27 as is necessary, to be used for the purpose designated:
  1 28    For emergency assistance to families with dependent
  1 29 children for homeless prevention programs:  
  1 30 .................................................. $  1,967,500
  1 31    1.  The emergency assistance provided for in this section
  1 32 shall be available beginning October 1 of the fiscal year and
  1 33 shall be provided only if all other publicly funded resources
  1 34 have been exhausted.  Specifically, emergency assistance is
  1 35 the program of last resort and shall not supplant assistance
  2  1 provided by the low-income home energy assistance program
  2  2 (LIHEAP), county general relief, and veterans affairs
  2  3 programs.  The department shall establish a $500 maximum
  2  4 payment, per family, in a twelve-month period.  The emergency
  2  5 assistance includes, but is not limited to, assisting people
  2  6 who face eviction, potential eviction, or foreclosure, utility
  2  7 shutoff or fuel shortage, loss of heating energy supply or
  2  8 equipment, homelessness, utility or rental deposits, or other
  2  9 specified crisis which threatens family or living
  2 10 arrangements.  The emergency assistance shall be available to
  2 11 migrant families who would otherwise meet eligibility
  2 12 criteria.  The department may contract for the administration
  2 13 and delivery of the program.  The program shall be terminated
  2 14 when funds are exhausted.
  2 15    2.  For the fiscal year beginning July 1, 1996, the
  2 16 department shall continue the process for the state to receive
  2 17 refunds of rent deposits for emergency assistance recipients
  2 18 which were paid by persons other than the state.  The refunds
  2 19 received by the department under this subsection shall be
  2 20 deposited with the moneys of the appropriation made in this
  2 21 section and used as additional funds for the emergency
  2 22 assistance program.  Notwithstanding section 8.33, moneys
  2 23 received by the department under this subsection which remain
  2 24 after the emergency assistance program is terminated and state
  2 25 moneys in the emergency assistance account which remain
  2 26 unobligated or unexpended at the close of the fiscal year
  2 27 shall not revert to the general fund of the state but shall
  2 28 remain available for expenditure when the program resumes
  2 29 operation on October 1 in the succeeding fiscal year.
  2 30    3.  Of the funds appropriated in this section, $10,000 is
  2 31 allocated to the community voice mail program to continue the
  2 32 existing program.  The funds shall be made available beginning
  2 33 July 1, 1996.
  2 34    Sec. 3.  MEDICAL ASSISTANCE.  There is appropriated from
  2 35 the general fund of the state to the department of human
  3  1 services for the fiscal year beginning July 1, 1996, and
  3  2 ending June 30, 1997, the following amount, or so much thereof
  3  3 as is necessary, to be used for the purpose designated:
  3  4    For medical assistance, including reimbursement for
  3  5 abortion services, which shall be available under the medical
  3  6 assistance program only for those abortions which are
  3  7 medically necessary:  
  3  8 .................................................. $366,687,988
  3  9    1.  Medically necessary abortions are those performed under
  3 10 any of the following conditions:
  3 11    a.  The attending physician certifies that continuing the
  3 12 pregnancy would endanger the life of the pregnant woman.
  3 13    b.  The attending physician certifies that the fetus is
  3 14 physically deformed, mentally deficient, or afflicted with a
  3 15 congenital illness.
  3 16    c.  The pregnancy is the result of a rape which is reported
  3 17 within 45 days of the incident to a law enforcement agency or
  3 18 public or private health agency which may include a family
  3 19 physician.
  3 20    d.  The pregnancy is the result of incest which is reported
  3 21 within 150 days of the incident to a law enforcement agency or
  3 22 public or private health agency which may include a family
  3 23 physician.
  3 24    e.  Any spontaneous abortion, commonly known as a
  3 25 miscarriage, if not all of the products of conception are
  3 26 expelled.
  3 27    2.  Notwithstanding section 8.39, the department may
  3 28 transfer funds appropriated in this section to a separate
  3 29 account established in the department's case management unit
  3 30 for expenditures required to provide case management services
  3 31 for mental health, mental retardation, and developmental
  3 32 disabilities services under medical assistance which are
  3 33 jointly funded by the state and county, pending final
  3 34 settlement of the expenditures.  Funds received by the case
  3 35 management unit in settlement of the expenditures shall be
  4  1 used to replace the transferred funds and are available for
  4  2 the purposes for which the funds were appropriated in this
  4  3 section.
  4  4    3.  If a medical assistance recipient is more than 17 years
  4  5 of age and is receiving care which is reimbursed under a
  4  6 federally approved home and community-based services waiver
  4  7 but would otherwise be approved for care in an intermediate
  4  8 care facility for the mentally retarded, the recipient's
  4  9 county of legal settlement shall reimburse the department on a
  4 10 monthly basis for the portion of the recipient's cost of care
  4 11 which is not paid from federal funds.
  4 12    4.  a.  The county of legal settlement shall be billed for
  4 13 50 percent of the nonfederal share of the cost of case
  4 14 management provided for adults, day treatment, and partial
  4 15 hospitalization in accordance with sections 249A.26 and
  4 16 249A.27, and 100 percent of the nonfederal share of the cost
  4 17 of care for adults which is reimbursed under a federally
  4 18 approved home and community-based waiver that would otherwise
  4 19 be approved for provision in an intermediate care facility for
  4 20 the mentally retarded, provided under the medical assistance
  4 21 program.  The state shall have responsibility for the
  4 22 remaining 50 percent of the nonfederal share of the cost of
  4 23 case management provided for adults, day treatment, and
  4 24 partial hospitalization.  For persons without a county of
  4 25 legal settlement, the state shall have responsibility for 100
  4 26 percent of the nonfederal share of the costs of case
  4 27 management provided for adults, day treatment, partial
  4 28 hospitalization, and the home and community-based waiver
  4 29 services.  The case management services specified in this
  4 30 subsection shall be billed to a county only if the services
  4 31 are provided outside of a managed care contract.
  4 32    b.  The state shall pay the entire nonfederal share of the
  4 33 costs for case management services provided to persons 17
  4 34 years of age and younger who are served in a medical
  4 35 assistance home and community-based waiver program for persons
  5  1 with mental retardation.
  5  2    c.  Medical assistance funding for case management services
  5  3 for eligible persons 17 years of age and younger shall also be
  5  4 provided to persons residing in counties with child welfare
  5  5 decategorization projects implemented in accordance with
  5  6 section 232.188, provided these projects have included these
  5  7 persons in their service plan and the decategorization project
  5  8 county is willing to provide the nonfederal share of costs.
  5  9    d.  When paying the necessary and legal expenses of
  5 10 intermediate care facilities for the mentally retarded
  5 11 (ICFMR), the cost payment requirements of section 222.60 shall
  5 12 be considered fulfilled when payment is made in accordance
  5 13 with the medical assistance payment rates established for
  5 14 ICFMRs by the department and the state or a county of legal
  5 15 settlement is not obligated for any amount in excess of the
  5 16 rates.
  5 17    5.  The department may adopt and implement administrative
  5 18 rules regarding a prepaid mental health services plan for
  5 19 medical assistance patients.  The rules shall include but not
  5 20 be limited to service provider standards, service
  5 21 reimbursement, and funding mechanisms.  Notwithstanding the
  5 22 provisions of subsection 4, paragraph "a", of this section and
  5 23 section 249A.26, requiring counties to pay all or part of the
  5 24 nonfederal share of certain services provided to persons with
  5 25 disabilities under the medical assistance program, the state
  5 26 shall pay 100 percent of the nonfederal share of any services
  5 27 included in the plan implemented pursuant to this subsection.
  5 28    6.  The department shall utilize not more than $60,000 of
  5 29 the funds appropriated in this section to continue the
  5 30 AIDS/HIV health insurance premium payment program as
  5 31 established in 1992 Iowa Acts, Second Extraordinary Session,
  5 32 Chapter 1001, section 409, subsection 6.  Of the funds
  5 33 allocated in this subsection, not more than $5,000 may be
  5 34 expended for administrative purposes.
  5 35    7.  Of the funds appropriated to the Iowa department of
  6  1 health for substance abuse grants, $950,000 for the fiscal
  6  2 year beginning July 1, 1996, shall be transferred to the
  6  3 department of human services for an integrated substance abuse
  6  4 managed care system.
  6  5    8.  The department shall implement a new medical assistance
  6  6 home and community-based waiver for persons with physical
  6  7 disabilities as a means to further develop the personal
  6  8 assistance services program under section 225C.46.  The waiver
  6  9 shall not be implemented in a manner which would require
  6 10 additional county or state funding for assistance provided to
  6 11 an individual served under the waiver.
  6 12    9.  The department may expand the drug prior authorization
  6 13 program to include the therapeutic class of gastrointestinal
  6 14 drugs known as proton pump inhibitors.  The department shall
  6 15 not expand the requirement of drug prior authorization without
  6 16 prior approval of the general assembly except to require prior
  6 17 authorization of an equivalent of a prescription drug which is
  6 18 subject to prior authorization as of June 30, 1996.  The
  6 19 department shall adopt administrative rules to implement this
  6 20 provision.
  6 21    10.  The department of human services shall expand the
  6 22 program to administratively pursue reimbursements for pharmacy
  6 23 services to include all pharmacy claims for which a recipient
  6 24 of medical assistance also has third-party coverage.
  6 25    11.  The department of human services, in consultation with
  6 26 the Iowa department of public health and the department of
  6 27 education, shall develop and implement a proposal to utilize
  6 28 the early and periodic screening, diagnosis, and treatment
  6 29 (EPSDT) funding under medical assistance, to the extent
  6 30 possible, to implement the screening component of the EPSDT
  6 31 program through the school system.  The department may enter
  6 32 into contracts to utilize maternal and child health centers,
  6 33 the public health nursing program, or school nurses in
  6 34 implementing this provision.
  6 35    12.  The department shall implement the case study for
  7  1 outcome-based performance standards for programs serving
  7  2 persons with mental retardation or other developmental
  7  3 disabilities proposed pursuant to 1994 Iowa Acts, chapter
  7  4 1170, section 56.  The department shall adopt rules applicable
  7  5 to the programs included in the case study, request a waiver
  7  6 of applicable federal requirements, and take other actions
  7  7 deemed necessary by the department to implement the case
  7  8 study.
  7  9    13.  The department of human services shall submit a report
  7 10 to the general assembly on or before January 1, 1997,
  7 11 regarding reimbursement for teleconsultive services provided
  7 12 by health care providers to recipients of medical assistance.
  7 13 The report shall include but is not limited to recommendations
  7 14 regarding the feasibility of implementation of a pilot
  7 15 program, including the adoption and utilization of an
  7 16 alternative reimbursement methodology, to determine the effect
  7 17 of teleconsultive services on health care quality, access, and
  7 18 cost.
  7 19    14.  A member of the joint appropriations subcommittee on
  7 20 human services participating during the 1996 legislative
  7 21 interim in a planning process for long-term care provided in
  7 22 nursing facilities and through alternative types of care
  7 23 involving a national foundation held by the department in the
  7 24 state, is entitled to per diem and expenses payable as a joint
  7 25 expense under section 2.12.
  7 26    Sec. 4.  MEDICAL CONTRACTS.  There is appropriated from the
  7 27 general fund of the state to the department of human services
  7 28 for the fiscal year beginning July 1, 1996, and ending June
  7 29 30, 1997, the following amount, or so much thereof as is
  7 30 necessary, to be used for the purpose designated:
  7 31    For medical contracts:  
  7 32 .................................................. $  6,811,400
  7 33    1.  The department shall continue to contract for drug
  7 34 utilization review under the medical assistance program.
  7 35    2.  The department shall negotiate with the department's
  8  1 contractor for mental health managed care under the medical
  8  2 assistance program to establish performance standards for
  8  3 successful outcomes for persons receiving services under the
  8  4 contract.  The performance standards shall be incorporated
  8  5 into the contract or shall be made an addendum to the contract
  8  6 which is in effect as of the effective date of this
  8  7 subsection.  The contractor's attainment of these performance
  8  8 standards shall be a factor in the department's decision to
  8  9 extend the contract in effect for managed mental health care
  8 10 or to initiate a new procurement process.  Any future contract
  8 11 shall contain sanctions for failure to attain the performance
  8 12 standards.  The provisions of section 228.5 as amended in this
  8 13 Act are applicable to the requirements of this subsection.
  8 14    3.  Any future contract entered into by the department for
  8 15 mental health managed care or for other services under the
  8 16 medical assistance program shall include a provision which
  8 17 requires the contractor to make public information the amount
  8 18 of profit realized by the contractor and the amount of funds
  8 19 expended by the contractor for administrative purposes under
  8 20 the contract.
  8 21    Sec. 5.  STATE SUPPLEMENTARY ASSISTANCE.  There is
  8 22 appropriated from the general fund of the state to the
  8 23 department of human services for the fiscal year beginning
  8 24 July 1, 1996, and ending June 30, 1997, the following amount,
  8 25 or so much thereof as is necessary, to be used for the purpose
  8 26 designated:
  8 27    For state supplementary assistance, funeral assistance, and
  8 28 the mental retardation waiver rent subsidy program:  
  8 29 .................................................. $ 19,190,000
  8 30    1.  The department shall increase the personal needs
  8 31 allowance for residents of residential care facilities by the
  8 32 same percentage and at the same time as federal supplemental
  8 33 security income and federal social security benefits are
  8 34 increased due to a recognized increase in the cost of living.
  8 35 The department may adopt emergency rules to implement this
  9  1 subsection.
  9  2    2.  a.  If during the fiscal year beginning July 1, 1996,
  9  3 the department projects that state supplementary assistance
  9  4 expenditures for a calendar year will not meet the federal
  9  5 pass-along requirement specified in Title XVI of the federal
  9  6 Social Security Act, section 1618, as codified in 42 U.S.C. }
  9  7 1382g, the department may take actions including but not
  9  8 limited to increasing the personal needs allowance for
  9  9 residential care facility residents and making programmatic
  9 10 adjustments or upward adjustments of the residential care
  9 11 facility or in-home health-related care reimbursement rates
  9 12 prescribed in this Act to ensure that federal requirements are
  9 13 met.  The department may adopt emergency rules to implement
  9 14 the provisions of this subsection.
  9 15    b.  If during the fiscal year beginning July 1, 1996, the
  9 16 department projects that state supplementary assistance
  9 17 expenditures will exceed the amount appropriated, the
  9 18 department may transfer funds appropriated in this Act for
  9 19 medical assistance for the purposes of the state supplementary
  9 20 assistance program.  However, funds shall only be transferred
  9 21 from the medical assistance appropriation if the funds
  9 22 transferred are projected to be in excess of the funds
  9 23 necessary for the medical assistance program.
  9 24    3.  The department may use up to $75,000 of the funds
  9 25 appropriated in this section for a rent subsidy program for
  9 26 adult persons to whom all of the following apply:
  9 27    a.  Are receiving assistance under the medical assistance
  9 28 home and community-based services for persons with mental
  9 29 retardation (HCBS/MR) program.
  9 30    b.  Were discharged from an intermediate care facility for
  9 31 the mentally retarded (ICFMR) immediately prior to receiving
  9 32 HCBS/MR services.
  9 33    The goal of the subsidy program shall be to encourage and
  9 34 assist in enabling persons who currently reside in an ICFMR to
  9 35 move to a community living arrangement.  An eligible person
 10  1 may receive assistance in meeting their rental expense and, in
 10  2 the initial two months of eligibility, in purchasing necessary
 10  3 household furnishings and supplies.  The program shall be
 10  4 implemented so that it does not meet the federal definition of
 10  5 state supplementary assistance and will not impact the federal
 10  6 pass-along requirement specified in Title XVI of the federal
 10  7 Social Security Act, section 1618, as codified in 42 U.S.C. }
 10  8 1382g.
 10  9    Sec. 6.  CHILD DAY CARE ASSISTANCE.  There is appropriated
 10 10 from the general fund of the state to the department of human
 10 11 services for the fiscal year beginning July 1, 1996, and
 10 12 ending June 30, 1997, the following amount, or so much thereof
 10 13 as is necessary, to be used for the purposes designated:
 10 14    For protective child day care assistance and state child
 10 15 care assistance:  
 10 16 .................................................. $ 12,547,100
 10 17    1.  Of the funds appropriated in this section, $2,496,286
 10 18 shall be used for protective child day care assistance.
 10 19    2.  Of the funds appropriated in this section, $8,180,889
 10 20 shall be used for state child care assistance.
 10 21    3.  For the purposes of this subsection, the term "poverty
 10 22 level" means the poverty level defined by the poverty income
 10 23 guidelines published by the United States department of health
 10 24 and human services.  Based upon the availability of the
 10 25 funding provided in subsection 2 the department shall
 10 26 establish waiting lists for state child care assistance in
 10 27 descending order of prioritization as follows:
 10 28    a.  Families with an income at or below 100 percent of the
 10 29 federal poverty level whose members are employed at least 30
 10 30 hours per week, and parents with a family income at or below
 10 31 100 percent of the federal poverty level who are under the age
 10 32 of 21 and are participating in an educational program leading
 10 33 to a high school diploma or equivalent.
 10 34    b.  Parents with a family income at or below 100 percent of
 10 35 the federal poverty level who are under the age of 21 and are
 11  1 participating, at a satisfactory level, in an approved
 11  2 training program or in an educational program.
 11  3    c.  Families with an income of more than 100 percent but
 11  4 not more than 110 percent of the federal poverty level whose
 11  5 members are employed at least 30 hours per week.  Assistance
 11  6 provided to families pursuant to this paragraph shall be
 11  7 provided in accordance with a sliding fee scale developed by
 11  8 the department.  If, pursuant to an evaluation of expenditures
 11  9 for state child care assistance it is determined that
 11 10 sufficient funding is available, the department shall
 11 11 implement the provisions of this paragraph on or before
 11 12 January 2, 1997.
 11 13    d.  Families with an income at or below 155 percent of the
 11 14 federal poverty level with a special needs child as a member
 11 15 of the family.
 11 16    e.  Families with an income at or below 100 percent of the
 11 17 federal poverty level whose members are employed part-time at
 11 18 least 20 hours per week.
 11 19    The department may adopt emergency rules to implement the
 11 20 provisions of this subsection.
 11 21    4.  a.  Migrant seasonal farm worker families whose family
 11 22 income is equal to or less than 100 percent of the United
 11 23 States office of management and budget poverty guidelines are
 11 24 eligible for state child care assistance.  The monthly family
 11 25 income shall be determined by calculating the total amount of
 11 26 family income earned during the 12-month period preceding the
 11 27 date of application for the assistance and dividing the total
 11 28 amount by 12.
 11 29    b.  Nothing in this section shall be construed or is
 11 30 intended as, or shall imply, a grant of entitlement for
 11 31 services to persons who are eligible for assistance due to an
 11 32 income level consistent with the requirements of this section.
 11 33 Any state obligation to provide services pursuant to this
 11 34 section is limited to the extent of the funds appropriated in
 11 35 this section.
 12  1    5.  If the department projects that funding for state child
 12  2 care assistance is reasonably adequate to fund the provisions
 12  3 of subsection 3, paragraphs "a", "b", and "c", the department
 12  4 may transfer not more than $200,000 of the funding
 12  5 appropriated in this section to the appropriation in this Act
 12  6 for child and family services to provide additional funding
 12  7 for family-centered services.
 12  8    6.  Of the funds appropriated in this section, $636,641 is
 12  9 allocated for the statewide program for child day care
 12 10 resource and referral services under section 237A.26.
 12 11    7.  The department may use any of the funds appropriated in
 12 12 this section as a match to obtain federal funds for use in
 12 13 expanding child day care assistance and related programs.
 12 14    8.  Of the funds appropriated in this section, $1,178,284
 12 15 is allocated for transitional child care assistance.
 12 16    9.  During the 1996-1997 fiscal year, the department shall
 12 17 utilize the moneys deposited in the child day care credit fund
 12 18 created in section 237A.28 for state child care assistance, in
 12 19 addition to the moneys allocated for that purpose in this
 12 20 section.
 12 21    10.  Of the funds appropriated in this section, the
 12 22 department shall expend not more than $20,000 to develop a
 12 23 system in cooperation with child day care resource and
 12 24 referral services under section 237A.26, in which volunteer
 12 25 evaluation teams are utilized to review and inspect registered
 12 26 family day care homes on behalf of the department.  The
 12 27 department shall also review requirements for payment of
 12 28 publicly funded child day care, including but not limited to
 12 29 the effects on providers and the state budget of paying for
 12 30 child day care on a daily basis, block-of-hours basis, or
 12 31 hourly basis.  The department shall review the policy
 12 32 implications of encouraging family day care home registration
 12 33 by providing an enhanced reimbursement for family day care
 12 34 homes that are registered.  In addition, the department shall
 12 35 develop a proposal for a disproportionate share reimbursement
 13  1 adjustment for the child day care providers for which 75
 13  2 percent or more of the children provided care receive public
 13  3 funding for the cost of their care.  The department shall
 13  4 submit a report to the general assembly on or before January
 13  5 15, 1997, which includes recommendations concerning the issues
 13  6 required by this subsection.
 13  7    11.  Of the funds appropriated in this section, $35,000 is
 13  8 allocated for use by the united Mexican-American center in Des
 13  9 Moines for the center's child day care program.
 13 10    12.  A family who was eligible for and received state child
 13 11 care assistance during the fiscal year beginning July 1, 1995,
 13 12 shall continue to receive the assistance in the succeeding
 13 13 fiscal year for as long as the family continues to meet the
 13 14 eligibility requirements in effect for the fiscal year
 13 15 beginning July 1, 1995.
 13 16    13.  Notwithstanding section 8.33, moneys appropriated to
 13 17 the department of human services for state child care
 13 18 assistance in 1996 Iowa Acts, House File 2114, section 2,
 13 19 which remain unexpended or unobligated at the close of the
 13 20 fiscal year shall not revert to the general fund of the state
 13 21 but shall remain available for expenditure in the succeeding
 13 22 fiscal year.
 13 23    Sec. 7.  JOBS PROGRAM.  There is appropriated from the
 13 24 general fund of the state to the department of human services
 13 25 for the fiscal year beginning July 1, 1996, and ending June
 13 26 30, 1997, the following amount, or so much thereof as is
 13 27 necessary, to be used for the purposes designated:
 13 28    For the federal-state job opportunities and basic skills
 13 29 (JOBS) program, food stamp employment and training program,
 13 30 family development and self-sufficiency grants,
 13 31 entrepreneurial training, and implementing family investment
 13 32 agreements, in accordance with this section:  
 13 33 .................................................. $ 12,601,592
 13 34    1.  Of the funds appropriated in this section, $11,692,292
 13 35 is allocated for the JOBS program.  For family investment
 14  1 agreements developed in the fiscal year beginning July 1,
 14  2 1996, the maximum time period for postsecondary education is
 14  3 limited to two years.
 14  4    2.  The department shall continue to contract for services
 14  5 in developing, delivering, and monitoring an entrepreneurial
 14  6 training waiver program to provide technical assistance in
 14  7 self-employment training to families which receive assistance
 14  8 under the family investment program, contingent upon federal
 14  9 approval of waiver renewal requests.
 14 10    3.  Of the funds appropriated in this section, $129,985 is
 14 11 allocated for the food stamp employment and training program.
 14 12    4.  Of the funds appropriated in this section, $779,315 is
 14 13 allocated to the family development and self-sufficiency grant
 14 14 program as provided under section 217.12.
 14 15    a.  Not more than 5 percent of the funds allocated in this
 14 16 subsection shall be used for the administration of the grant
 14 17 program.
 14 18    b.  Federal funding matched by state, county, or other
 14 19 funding which is not appropriated in this section shall be
 14 20 deposited in the department's JOBS account.  If the match
 14 21 funding is generated by a family development and self-
 14 22 sufficiency grantee, the federal funding received shall be
 14 23 used to expand the family development and self-sufficiency
 14 24 grant program.  If the match funding is generated by another
 14 25 source, the federal funding received shall be used to expand
 14 26 the grant program or the JOBS program.  The department may
 14 27 adopt rules to implement the provisions of this paragraph.
 14 28    c.  Based upon the annual evaluation report concerning each
 14 29 grantee funded by this allocation, the family development and
 14 30 self-sufficiency council may use funds allocated to renew
 14 31 grants.
 14 32    Sec. 8.  CHILD SUPPORT RECOVERY.  There is appropriated
 14 33 from the general fund of the state to the department of human
 14 34 services for the fiscal year beginning July 1, 1996, and
 14 35 ending June 30, 1997, the following amount, or so much thereof
 15  1 as is necessary, to be used for the purposes designated:
 15  2    For child support recovery, including salaries, support,
 15  3 maintenance, and miscellaneous purposes and for not more than
 15  4 the following full-time equivalent positions:  
 15  5 ................................................. $  6,517,000
 15  6 ............................................... FTEs     226.22
 15  7    1.  The director of human services, within the limitations
 15  8 of the funds appropriated in this section, or funds
 15  9 transferred from the family investment program appropriation
 15 10 for this purpose, shall establish new positions and add
 15 11 employees to the child support recovery unit if the director
 15 12 determines that both the current and additional employees
 15 13 together can reasonably be expected to maintain or increase
 15 14 net state revenue at or beyond the budgeted level.  If the
 15 15 director adds employees, the department shall demonstrate the
 15 16 cost-effectiveness of the current and additional employees by
 15 17 reporting to the joint appropriations subcommittee on human
 15 18 services the ratio of the total amount of administrative costs
 15 19 for child support recoveries to the total amount of the child
 15 20 support recovered.
 15 21    2.  Nonpublic assistance application fees and federal tax
 15 22 refund offsets received by the child support recovery unit are
 15 23 appropriated and shall be used for the purposes of the child
 15 24 support recovery program.  The director of human services may
 15 25 add positions within the limitations of the amount
 15 26 appropriated for salaries and support for the positions.  The
 15 27 director shall report any positions added pursuant to this
 15 28 subsection to the chairpersons and ranking members of the
 15 29 joint appropriations subcommittee on human services and the
 15 30 legislative fiscal bureau.
 15 31    3.  The director of human services, in consultation with
 15 32 the department of management and the legislative fiscal
 15 33 committee, is authorized to receive and deposit state child
 15 34 support incentive earnings in the manner specified under
 15 35 applicable federal requirements.
 16  1    4.  The director of human services may establish new
 16  2 positions and add state employees to the child support
 16  3 recovery unit if the director determines the employees are
 16  4 necessary to replace county-funded positions eliminated due to
 16  5 termination, reduction, or nonrenewal of a chapter 28E
 16  6 contract.  However, the director must also determine that the
 16  7 resulting increase in the state share of child support
 16  8 recovery incentives exceeds the cost of the positions, the
 16  9 positions are necessary to ensure continued federal funding of
 16 10 the program, or the new positions can reasonably be expected
 16 11 to recover at least twice the amount of money necessary to pay
 16 12 the salaries and support for the new positions.
 16 13    5.  The child support recovery unit shall continue to work
 16 14 with the judicial department to determine the feasibility of a
 16 15 pilot project utilizing a court-appointed referee for judicial
 16 16 determinations on child support matters.  The extent and
 16 17 location of any pilot project shall be jointly developed by
 16 18 the judicial department and the child support recovery unit.
 16 19    6.  The department shall expend up to $50,000, including
 16 20 federal financial participation, for the fiscal year beginning
 16 21 July 1, 1996, for a child support public awareness campaign.
 16 22 The department shall cooperate with the office of the attorney
 16 23 general in continuation of the campaign.  The public awareness
 16 24 campaign shall emphasize, through a variety of media
 16 25 activities and through continuation of the publication of
 16 26 names of persons who are delinquent in payment of child
 16 27 support obligations, the importance of maximum involvement of
 16 28 both parents in the lives of their children as well as the
 16 29 importance of payment of child support obligations.
 16 30    7.  The department shall continue the pilot program option
 16 31 to provide and supervise a community service pilot project for
 16 32 absent parents who are ordered by the court to perform
 16 33 community service for failure to pay child support pursuant to
 16 34 section 598.23A.
 16 35    8.  The director of human services may enter a contract
 17  1 with private collection agencies to collect support payments
 17  2 for cases which have been identified by the department as
 17  3 difficult collection cases if the department determines that
 17  4 this form of collection is more cost effective than
 17  5 departmental collection methods.  The director may use a
 17  6 portion of the state share of funds collected through this
 17  7 means to pay the costs of any contracts authorized under this
 17  8 subsection.
 17  9    9.  The department shall employ on or before July 2, 1996,
 17 10 at least 1.00 FTE to respond to telephone inquiries during all
 17 11 weekly business hours.
 17 12    10.  The department shall develop guidelines to be used in
 17 13 lieu of the child support guidelines prescribed under section
 17 14 598.21, subsection 4, for establishing a support obligation
 17 15 and the amount of the support debt accrued and accruing
 17 16 pursuant to section 234.39 for the costs of foster care
 17 17 services.  The proposed guidelines shall reflect the public
 17 18 purpose of establishing a support obligation without causing a
 17 19 serious disruption of the family of the obligor.  The
 17 20 department shall submit the proposed guidelines to the general
 17 21 assembly on or before January 15, 1997.
 17 22    Sec. 9.  JUVENILE INSTITUTIONS.  There is appropriated from
 17 23 the general fund of the state to the department of human
 17 24 services for the fiscal year beginning July 1, 1996, and
 17 25 ending June 30, 1997, the following amount, or so much thereof
 17 26 as is necessary, to be used for the purposes designated:
 17 27    For the operation of the state training school and the Iowa
 17 28 juvenile home, including salaries, support, maintenance, and
 17 29 miscellaneous purposes and for not more than the following
 17 30 full-time equivalent positions:
 17 31    For the state juvenile institutions:  
 17 32 .................................................. $ 13,769,809
 17 33 ............................................... FTEs     320.77
 17 34    1.  The following amounts of the funds appropriated and
 17 35 full-time equivalent positions authorized in this section are
 18  1 allocated for the Iowa juvenile home at Toledo:  
 18  2 .................................................. $  5,130,863
 18  3 ............................................... FTEs     118.54
 18  4    2.  The following amounts of the funds appropriated and
 18  5 full-time equivalent positions authorized in this section are
 18  6 allocated for the state training school at Eldora:  
 18  7 .................................................. $  8,638,946
 18  8 ............................................... FTEs     202.23
 18  9    3.  During the fiscal year beginning July 1, 1996, the
 18 10 population levels at the state juvenile institutions shall not
 18 11 exceed the population guidelines established under 1990 Iowa
 18 12 Acts, chapter 1239, section 21.
 18 13    4.  Of the funds appropriated in this section, $10,000
 18 14 shall be used by the state training school and $8,000 by the
 18 15 Iowa juvenile home for grants for adolescent pregnancy
 18 16 prevention activities at the institutions in the fiscal year
 18 17 beginning July 1, 1996.
 18 18    5.  Within the funds appropriated in this section, the
 18 19 department may reallocate funds as necessary to best fulfill
 18 20 the needs of the institutions provided for in the
 18 21 appropriation.
 18 22    Sec. 10.  CHILD AND FAMILY SERVICES.  There is appropriated
 18 23 from the general fund of the state to the department of human
 18 24 services for the fiscal year beginning July 1, 1996, and
 18 25 ending June 30, 1997, the following amount, or so much thereof
 18 26 as is necessary, to be used for the purpose designated:
 18 27    For child and family services:  
 18 28 ................................................. $ 85,460,607
 18 29    1.  The department may transfer moneys appropriated in this
 18 30 section as necessary to pay the nonfederal costs of services
 18 31 reimbursed under medical assistance or the family investment
 18 32 program which are provided to children who would otherwise
 18 33 receive services paid under the appropriation in this section.
 18 34 The department may transfer funds appropriated in this section
 18 35 to the appropriations in this Act for general administration
 19  1 and for field operations for resources necessary to implement
 19  2 and operate the services funded in this section.
 19  3    2.  a.  Of the funds appropriated in this section, up to
 19  4 $24,601,280 is allocated as the statewide expenditure target
 19  5 under section 232.143 for group foster care maintenance and
 19  6 services.
 19  7    b.  The department shall report quarterly to the
 19  8 legislative fiscal bureau concerning the status of each
 19  9 region's efforts to contain expenditures for group foster care
 19 10 placements in accordance with the regional plan established
 19 11 pursuant to section 232.143.
 19 12    c.  The department shall not certify any additional
 19 13 enhanced residential treatment beds, unless the director of
 19 14 human services approves the beds as necessary, based on the
 19 15 type of children to be served and the location of the enhanced
 19 16 residential treatment beds.
 19 17    d.  (1)  Of the funds appropriated in this section, not
 19 18 more than $6,538,215 is allocated as the state match funding
 19 19 for psychiatric medical institutions for children.
 19 20    (2)  The department may transfer all or a portion of the
 19 21 funds appropriated in this section for psychiatric medical
 19 22 institutions for children (PMICs) to the appropriation in this
 19 23 Act for medical assistance and may amend the managed mental
 19 24 health care contract to include PMICs.
 19 25    e.  Of the funds allocated in this subsection, not more
 19 26 than $1,077,995 is allocated as the state match funding for 50
 19 27 highly structured juvenile program beds.
 19 28    3.  The department shall establish a goal that not more
 19 29 than 15 percent of the children placed in foster care funded
 19 30 under the federal Social Security Act, Title IV-E, may be
 19 31 placed in foster care for a period of more than 24 months.
 19 32    4.  In accordance with the provisions of section 232.188,
 19 33 the department shall continue the program to decategorize
 19 34 child welfare services in additional counties or clusters of
 19 35 counties.
 20  1    5.  Of the funds appropriated in this section, up to
 20  2 $96,512 is allocated for continued foster care services to a
 20  3 child who is 18 years of age or older in accordance with the
 20  4 provisions of section 234.35, subsection 3, paragraph "c".
 20  5 However, if funding in this appropriation would remain
 20  6 unobligated at the end of the fiscal year, the allocation in
 20  7 this subsection may be exceeded to the extent necessary to
 20  8 provide the continued foster care services.  The department
 20  9 shall distribute the moneys allocated in this subsection to
 20 10 the department's regions based on each region's proportion of
 20 11 the total number of children placed in foster care on March 31
 20 12 preceding the beginning of the fiscal year, who, during the
 20 13 fiscal year would no longer be eligible for foster care due to
 20 14 age.
 20 15    6.  Notwithstanding section 232.142, subsection 3, the
 20 16 financial aid paid by the state for the establishment,
 20 17 improvements, operation, and maintenance of county or
 20 18 multicounty juvenile detention homes in the fiscal year
 20 19 beginning July 1, 1996, shall be limited to $872,500.  Funds
 20 20 allocated in this subsection shall be prorated among eligible
 20 21 detention homes.
 20 22    7.  The amount of the appropriation made in this section
 20 23 available for foster care is based upon expansion of the
 20 24 number of children in foster care who are eligible for federal
 20 25 supplemental security income (SSI).  The department may use up
 20 26 to $300,000 of those funds to enter into a performance-based
 20 27 contract to secure SSI benefits for children placed in foster
 20 28 care.  The contract shall include provisions for training of
 20 29 department of human services and juvenile court staff,
 20 30 completion of applications, tracking of application results,
 20 31 and representation during the appeals process whenever an
 20 32 appeal is necessary to secure SSI benefits.  Notwithstanding
 20 33 section 217.30 and section 232.2, subsection 11, and any other
 20 34 provision of law to the contrary, the director or the
 20 35 director's designee on behalf of a child in foster care may
 21  1 release medical, mental health, substance abuse, or any other
 21  2 information necessary only to determine the child's
 21  3 eligibility for SSI benefits, and may sign releases for the
 21  4 information.  In any release of information made pursuant to
 21  5 this subsection, confidentiality shall be maintained to the
 21  6 maximum extent possible.
 21  7    8.  A portion of the funds appropriated in this section may
 21  8 be used for emergency family assistance to provide other
 21  9 resources required for a family participating in a family
 21 10 preservation or reunification project to stay together or to
 21 11 be reunified.
 21 12    9.  Notwithstanding section 234.35, subsection 1, for the
 21 13 fiscal year beginning July 1, 1996, state funding for shelter
 21 14 care paid pursuant to section 234.35, subsection 1, paragraph
 21 15 "h", shall be limited to $3,223,732.  The department shall
 21 16 develop a formula in consultation with the shelter care
 21 17 committee created by the department to allocate shelter care
 21 18 funds to the department's regions.  The formula shall be based
 21 19 on the region's proportion of the state population of children
 21 20 and historical usage.  The department may adopt emergency
 21 21 rules to implement the provisions of this subsection.
 21 22    10.  Of the funds appropriated in this section, not more
 21 23 than $527,137 may be used to develop and maintain the state's
 21 24 implementation of the national adoption and foster care
 21 25 information system pursuant to the requirements of Pub. L. No.
 21 26 99-509.  The department may transfer funds as necessary from
 21 27 the appropriations in this Act for field operations and
 21 28 general administration to implement this subsection.  Moneys
 21 29 allocated in accordance with this subsection shall be
 21 30 considered encumbered for the purposes of section 8.33.
 21 31    11.  Of the funds appropriated in this section, up to
 21 32 $619,433 may be used as determined by the department for any
 21 33 of the following purposes:
 21 34    a.  For general administration of the department to improve
 21 35 staff training efforts.
 22  1    b.  For oversight of termination of parental rights and
 22  2 permanency planning efforts on a statewide basis.
 22  3    c.  For personnel, assigned by the attorney general, to
 22  4 provide additional services relating to termination of
 22  5 parental rights and child in need of assistance cases.
 22  6    d.  For specialized permanency planning field operations
 22  7 staff.
 22  8    12.  The department may adopt administrative rules
 22  9 following consultation with child welfare services providers
 22 10 to implement outcome-based child welfare services pilot
 22 11 projects.  The rules may include, but are not limited to, the
 22 12 development of program descriptions, provider licensing and
 22 13 certification standards, reimbursement and payment amounts,
 22 14 contract requirements, assessment and service necessity
 22 15 requirements, eligibility criteria, claims submission
 22 16 procedures, and accountability standards.
 22 17    13.  Of the funds appropriated in this section, up to
 22 18 $125,340 may be used to develop, in cooperation with providers
 22 19 of children and family services, a performance-based
 22 20 monitoring program to evaluate and improve outcomes for
 22 21 children and families.  The department may adopt
 22 22 administrative rules to implement this subsection.
 22 23    14.  The department may develop, within the funds
 22 24 available, a pilot kinship care project to enhance family
 22 25 involvement in the development of the permanency plan required
 22 26 under chapter 232 for children who are removed from their
 22 27 homes.  The project components may include family involvement
 22 28 before and after removal of the child and shall stress safety
 22 29 for the child.
 22 30    15.  Within the funds appropriated in this section, the
 22 31 department may develop a subsidized guardianship program to
 22 32 provide financial assistance to guardians of children who have
 22 33 a permanency order under section 232.104, subsection 2,
 22 34 paragraph "d", subparagraph (1), in cases in which all of the
 22 35 following conditions exist:
 23  1    a.  The option of reunification has been eliminated and
 23  2 termination of parental rights is not appropriate.
 23  3    b.  The child has lived with the potential guardian for at
 23  4 least six months.
 23  5    c.  The child is either 14 years of age or older or, if
 23  6 under 14 years of age, is part of a sibling group and cannot
 23  7 be made available for adoption.
 23  8    d.  The placement does not require departmental
 23  9 supervision.
 23 10    The financial assistance provided shall be in the same
 23 11 amount as provided for family foster care.  For purposes of
 23 12 medical assistance and child support recovery, these payments
 23 13 shall be considered foster care payments.
 23 14    16.  The department shall continue to make adoption
 23 15 presubsidy and adoption subsidy payments to adoptive parents
 23 16 at the beginning of the month for the current month.
 23 17    17.  If Title XIX of the federal Social Security Act is
 23 18 repealed prior to January 17, 1997, and the state is otherwise
 23 19 authorized to establish requirements for providing health and
 23 20 rehabilitative services to persons who would be eligible for
 23 21 medical assistance under chapter 249A, the department shall
 23 22 eliminate the clinical assessment and consultation teams
 23 23 operating as part of the medical assistance children's
 23 24 rehabilitative services initiative.  The provisions of this
 23 25 subsection shall apply through January 16, 1997.
 23 26    18.  Federal funds received by the state during the fiscal
 23 27 years beginning July 1, 1995, and July 1, 1996, as the result
 23 28 of the expenditure of state funds appropriated during a
 23 29 previous state fiscal year for a service or activity funded
 23 30 under this section shall be used as additional funding for
 23 31 services provided under this section.  Moneys received by the
 23 32 department in accordance with the provisions of this section
 23 33 shall remain available for the purposes designated until June
 23 34 30, 1998.
 23 35    19.  The department may adopt emergency rules to revise
 24  1 administrative rules relating to rehabilitative treatment
 24  2 services under the child welfare program as necessary to
 24  3 comply with federal requirements to maintain nonstate funding.
 24  4    20.  The department in cooperation with the department of
 24  5 education shall collect data to determine the number of
 24  6 children for whom sheltered workshops and supported employment
 24  7 will be required during the period beginning July 1, 1997,
 24  8 through June 30, 2002.  The department shall report the
 24  9 findings of the study to the general assembly by January 2,
 24 10 1997.
 24 11    21.  Of the funds appropriated in this section, up to
 24 12 $150,000 shall be transferred to the Iowa healthy kids trust
 24 13 fund for use by the division of insurance of the department of
 24 14 commerce for planning, administration, and implementation of
 24 15 the Iowa healthy kids program as established in chapter 514I
 24 16 as enacted in this Act.
 24 17    Sec. 11.  COMMUNITY-BASED PROGRAMS – ADOLESCENT PREGNANCY
 24 18 PREVENTION.  There is appropriated from the general fund of
 24 19 the state to the department of human services for the fiscal
 24 20 year beginning July 1, 1996, and ending June 30, 1997, the
 24 21 following amount, or so much thereof as is necessary, to be
 24 22 used for the purpose designated:
 24 23    For community-based programs, on the condition that family
 24 24 planning services are funded, including salaries, support,
 24 25 maintenance, and miscellaneous purposes and for not more than
 24 26 the following full-time equivalent positions:  
 24 27 .................................................. $  2,635,146
 24 28 ............................................... FTEs       1.00
 24 29    1.  Of the funds appropriated in this section, $736,146
 24 30 shall be used for adolescent pregnancy prevention grants,
 24 31 including not more than $156,048 for programs to prevent
 24 32 pregnancies during the adolescent years and to provide support
 24 33 services for pregnant or parenting adolescents.  It is the
 24 34 intent of the general assembly that by July 1, 1998, grants
 24 35 awarded under this subsection be required to meet the criteria
 25  1 under subsection 2 including the provision of community-wide
 25  2 services within the proximity of the community or region.
 25  3    2.  Of the funds appropriated in this section, $298,000
 25  4 shall be used for grants to community or regional groups which
 25  5 demonstrate broad-based representation from community
 25  6 representatives including but not limited to schools,
 25  7 churches, human service-related organizations, and businesses.
 25  8 Priority in the awarding of grants shall be given to groups
 25  9 which provide services to both urban and rural areas within
 25 10 the proximity of the community or region and which provide
 25 11 age-appropriate programs adapted for both male and female
 25 12 youth at the elementary, middle, and high school levels.  A
 25 13 program shall focus on the prevention of initial pregnancies
 25 14 during the adolescent years by emphasizing sexual abstinence
 25 15 as the only completely safe and effective means of avoiding
 25 16 pregnancy and sexually transmitted diseases and by providing
 25 17 information regarding the comparative failure rates of
 25 18 contraceptives, and by emphasizing responsible decision making
 25 19 in relationships, managing of peer and social pressures,
 25 20 development of self-esteem, the costs and responsibilities of
 25 21 parenting, and information regarding the alternative of
 25 22 adoption for placement of a child.  The program shall also
 25 23 include an evaluation and assessment component which includes
 25 24 evaluation of and recommendations for improvement of the
 25 25 program by the youth and parents involved.  Evaluation and
 25 26 assessment reports shall be provided to the department of
 25 27 human services, at a time determined by the department in the
 25 28 grant award.  Community or regional groups interested in
 25 29 applying for a grant under this subsection may be issued a
 25 30 planning grant or may utilize grant moneys for the costs of
 25 31 technical assistance to analyze community needs, match service
 25 32 providers to needs, negotiate service provision strategies, or
 25 33 other assistance to focus grant services provided under this
 25 34 subsection.  The technical assistance may be provided by
 25 35 organizations affiliated with institutions under the authority
 26  1 of the state board of regents or other organizations
 26  2 experienced in providing technical assistance concerning
 26  3 similar services.
 26  4    3.  The department of human services, in cooperation with
 26  5 the Iowa department of public health, shall determine the
 26  6 criteria to be used in measuring the results of all pregnancy
 26  7 prevention programs for which funds are allocated in this
 26  8 section.  The criteria to be used shall be made available to
 26  9 the interim committee established in subsection 4.
 26 10    4.  The legislative council is requested to established a
 26 11 legislative interim committee during the 1996 interim of the
 26 12 general assembly to evaluate the effectiveness of current and
 26 13 proposed adolescent pregnancy prevention programs.
 26 14    5.  Of the funds appropriated in this section, $846,014
 26 15 shall be used by the department for child abuse prevention
 26 16 grants.  Of the funds allocated in this subsection, $115,000
 26 17 shall be transferred to the Iowa department of public health
 26 18 for the Iowa healthy family program under section 135.106, to
 26 19 be expended in accordance with the provisions relating to this
 26 20 program in 1996 Iowa Acts, Senate File 2448.
 26 21    Sec. 12.  COURT-ORDERED SERVICES PROVIDED TO JUVENILES.
 26 22 There is appropriated from the general fund of the state to
 26 23 the department of human services for the fiscal year beginning
 26 24 July 1, 1996, and ending June 30, 1997, the following amount,
 26 25 or so much thereof as is necessary, to be used for the purpose
 26 26 designated:
 26 27    Payment of the expenses of court-ordered services provided
 26 28 to juveniles which are a charge upon the state pursuant to
 26 29 section 232.141, subsection 4:  
 26 30 .................................................. $  3,090,000
 26 31    1.  Notwithstanding section 232.141 or any other provision
 26 32 of law, the funds appropriated in this section shall be
 26 33 allocated to the judicial districts as determined by the state
 26 34 court administrator.  The state court administrator shall make
 26 35 the determination on the allocations on or before June 15.
 27  1    2.  a.  Each judicial district shall continue the planning
 27  2 group for the court-ordered services for juveniles provided in
 27  3 that district which was established pursuant to 1991 Iowa
 27  4 Acts, chapter 267, section 119.  A planning group shall
 27  5 continue to perform its duties as specified in that law.
 27  6 Reimbursement rates for providers of court-ordered evaluation
 27  7 and treatment services paid under section 232.141, subsection
 27  8 4, shall be negotiated with providers by each judicial
 27  9 district's planning group.
 27 10    b.  Each district planning group shall submit an annual
 27 11 report in January to the state court administrator and the
 27 12 department of human services.  The report shall cover the
 27 13 preceding fiscal year and shall include a preliminary report
 27 14 on the current fiscal year.  The administrator and the
 27 15 department shall compile these reports and submit the reports
 27 16 to the chairpersons and ranking members of the joint
 27 17 appropriations subcommittee on human services and the
 27 18 legislative fiscal bureau.
 27 19    3.  The department of human services shall develop policies
 27 20 and procedures to ensure that the funds appropriated in this
 27 21 section are spent only after all other reasonable actions have
 27 22 been taken to utilize other funding sources and community-
 27 23 based services.  The policies and procedures shall be designed
 27 24 to achieve the following objectives relating to services
 27 25 provided under chapter 232:
 27 26    a.  Maximize the utilization of funds which may be
 27 27 available from the medical assistance program including usage
 27 28 of the early and periodic screening, diagnosis, and treatment
 27 29 (EPSDT) program.
 27 30    b.  Recover payments from any third-party insurance carrier
 27 31 which is liable for coverage of the services, including health
 27 32 insurance coverage.
 27 33    c.  Pursue development of agreements with regularly
 27 34 utilized out-of-state service providers which are intended to
 27 35 reduce per diem costs paid to those providers.
 28  1    4.  The department of human services, in consultation with
 28  2 the state court administrator and the judicial district
 28  3 planning groups, shall compile a monthly report describing
 28  4 spending in the districts for court-ordered services for
 28  5 juveniles, including the utilization of the medical assistance
 28  6 program.  The reports shall be submitted on or before the
 28  7 twentieth day of each month to the chairpersons and ranking
 28  8 members of the joint appropriations subcommittee on human
 28  9 services and the legislative fiscal bureau.
 28 10    5.  Notwithstanding chapter 232 or any other provision of
 28 11 law, a district or juvenile court in a department of human
 28 12 services district shall not order any service which is a
 28 13 charge upon the state pursuant to section 232.141 if there are
 28 14 insufficient court-ordered services funds available in the
 28 15 district allocation to pay for the service.  The chief
 28 16 juvenile court officer shall work with the judicial district
 28 17 planning group to encourage use of the funds appropriated in
 28 18 this section such that there are sufficient funds to pay for
 28 19 all court-related services during the entire year.  The eight
 28 20 chief juvenile court officers shall attempt to anticipate
 28 21 potential surpluses and shortfalls in the allocations and
 28 22 shall cooperatively request the state court administrator to
 28 23 transfer funds between the districts' allocations as prudent.
 28 24    6.  Notwithstanding any provision of law to the contrary, a
 28 25 district or juvenile court shall not order a county to pay for
 28 26 any service provided to a juvenile pursuant to an order
 28 27 entered under chapter 232 which is a charge upon the state
 28 28 under section 232.141, subsection 4.
 28 29    7.  Of the funds appropriated in this section, not more
 28 30 than $100,000 may be used by the judicial department for
 28 31 administration of the requirements under this section and for
 28 32 travel associated with court-ordered placements which are a
 28 33 charge upon the state pursuant to section 232.141, subsection
 28 34 4.
 28 35    8.  Of the funds appropriated in this section, not more
 29  1 than $400,000 may be transferred to the appropriation in this
 29  2 Act for child and family services and used to provide school-
 29  3 based supervision of children adjudicated under chapter 232.
 29  4    Sec. 13.  MENTAL HEALTH INSTITUTES.  There is appropriated
 29  5 from the general fund of the state to the department of human
 29  6 services for the fiscal year beginning July 1, 1996, and
 29  7 ending June 30, 1997, the following amount, or so much thereof
 29  8 as is necessary, to be used for the purposes designated:
 29  9    For the state mental health institutes for salaries,
 29 10 support, maintenance, and miscellaneous purposes and for not
 29 11 more than the following full-time equivalent positions:  
 29 12 .................................................. $ 41,537,333
 29 13 ............................................... FTEs     927.16
 29 14    1.  The funds appropriated and full-time equivalent
 29 15 positions authorized in this section are allocated as follows:
 29 16    a.  State mental health institute at Cherokee:  
 29 17 .................................................. $ 13,581,308
 29 18 ............................................... FTEs     306.04
 29 19    b.  State mental health institute at Clarinda:  
 29 20 .................................................. $  6,172,607
 29 21 ............................................... FTEs     136.82
 29 22    c.  State mental health institute at Independence:  
 29 23 .................................................. $ 16,946,094
 29 24 ............................................... FTEs     401.82
 29 25    d.  State mental health institute at Mount Pleasant:  
 29 26 .................................................. $  4,837,324
 29 27 ............................................... FTEs      82.48
 29 28    2.  Within the funds appropriated in this section, the
 29 29 department may reallocate funds as necessary to best fulfill
 29 30 the needs of the institutions provided for in the
 29 31 appropriation.
 29 32    3.  As part of the discharge planning process at the state
 29 33 mental health institutes, the department shall provide
 29 34 assistance in obtaining eligibility for federal supplemental
 29 35 security income (SSI) to those individuals whose care at a
 30  1 state mental health institute is the financial responsibility
 30  2 of the state.
 30  3    Sec. 14.  HOSPITAL-SCHOOLS.  There is appropriated from the
 30  4 general fund of the state to the department of human services
 30  5 for the fiscal year beginning July 1, 1996, and ending June
 30  6 30, 1997, the following amount, or so much thereof as is
 30  7 necessary, to be used for the purposes designated:
 30  8    For the state hospital-schools, for salaries, support,
 30  9 maintenance, and miscellaneous purposes and for not more than
 30 10 the following full-time equivalent positions:  
 30 11 .................................................. $ 62,029,824
 30 12 ............................................... FTEs   1,516.00
 30 13    1.  The funds appropriated and full-time equivalent
 30 14 positions authorized in this section are allocated as follows:
 30 15    a.  State hospital-school at Glenwood:  
 30 16 .................................................. $ 35,070,700
 30 17 ............................................... FTEs     872.50
 30 18    b.  State hospital-school at Woodward:  
 30 19 .................................................. $ 26,959,124
 30 20 ............................................... FTEs     643.50
 30 21    2.  Within the funds appropriated in this section, the
 30 22 department may reallocate funds as necessary to best fulfill
 30 23 the needs of the institutions provided for in the
 30 24 appropriation.
 30 25    Sec. 15.  MENTAL ILLNESS SPECIAL SERVICES.  There is
 30 26 appropriated from the general fund of the state to the
 30 27 department of human services for the fiscal year beginning
 30 28 July 1, 1996, and ending June 30, 1997, the following amount,
 30 29 or so much thereof as is necessary, to be used for the purpose
 30 30 designated:
 30 31    For mental illness special services:  
 30 32 .................................................. $    121,220
 30 33    1.  The department and the Iowa finance authority shall
 30 34 develop methods to implement the financing for existing
 30 35 community-based facilities and to implement financing for the
 31  1 development of affordable community-based housing facilities.
 31  2 The department shall assure that clients are referred to the
 31  3 housing as it is developed.
 31  4    2.  The funds appropriated in this section are to provide
 31  5 funds for construction and start-up costs to develop community
 31  6 living arrangements to provide for persons with mental illness
 31  7 who are homeless.  These funds may be used to match federal
 31  8 Stewart B. McKinney Homeless Assistance Act grant funds.
 31  9    Sec. 16.  FAMILY SUPPORT SUBSIDY PROGRAM.  There is
 31 10 appropriated from the general fund of the state to the
 31 11 department of human services for the fiscal year beginning
 31 12 July 1, 1996, and ending June 30, 1997, the following amount,
 31 13 or so much thereof as is necessary, to be used by the division
 31 14 of children and family services for the purpose designated:
 31 15    For the family support subsidy program:  
 31 16 .................................................. $  1,344,000
 31 17    The division of children and family services shall utilize
 31 18 not more than $200,000 of the funds appropriated in this
 31 19 section to implement a pilot project of the children-at-home
 31 20 component under the comprehensive family support program in at
 31 21 least one rural and one urban county.  Not more than $50,000
 31 22 of the funds allocated in this paragraph shall be used for
 31 23 administrative costs.  
 31 24    Sec. 17.  SPECIAL NEEDS GRANTS.  There is appropriated from
 31 25 the general fund of the state to the department of human
 31 26 services for the fiscal year beginning July 1, 1996, and
 31 27 ending June 30, 1997, the following amount, or so much thereof
 31 28 as is necessary, to be used for the purpose designated:
 31 29    To provide special needs grants to families with a family
 31 30 member at home who has a developmental disability or to a
 31 31 person with a developmental disability:  
 31 32 .................................................. $     53,212
 31 33    Grants must be used by a family to defray special costs of
 31 34 caring for the family member to prevent out-of-home placement
 31 35 of the family member or to provide for independent living
 32  1 costs.  The grants may be administered by a private nonprofit
 32  2 agency which serves people statewide provided that no
 32  3 administrative costs are received by the agency.  Regular
 32  4 reports regarding the special needs grants with the family
 32  5 support subsidy program and an annual report concerning the
 32  6 characteristics of the grantees shall be provided to the
 32  7 legislative fiscal bureau.
 32  8    Sec. 18.  MI/MR/DD STATE CASES.  There is appropriated from
 32  9 the general fund of the state to the department of human
 32 10 services for the fiscal year beginning July 1, 1996, and
 32 11 ending June 30, 1997, the following amount, or so much thereof
 32 12 as is necessary, to be used for the purposes designated:
 32 13    For purchase of local services for persons with mental
 32 14 illness, mental retardation, and developmental disabilities
 32 15 where the client has no established county of legal
 32 16 settlement:  
 32 17 .................................................. $  5,454,000
 32 18    If a county has a county management plan which is approved
 32 19 by the director of human services pursuant to section 331.439,
 32 20 the services paid for under this section are exempt from the
 32 21 department's purchase of service system requirements.  The
 32 22 department shall adopt rules to implement the provisions of
 32 23 this paragraph.
 32 24    Sec. 19.  MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES –
 32 25 COMMUNITY SERVICES FUND.  There is appropriated from the
 32 26 general fund of the state to the mental health and
 32 27 developmental disabilities community services fund created in
 32 28 section 225C.7 for the fiscal year beginning July 1, 1996, and
 32 29 ending June 30, 1997, the following amount, or so much thereof
 32 30 as is necessary, to be used for the purpose designated:
 32 31    For mental health and developmental disabilities community
 32 32 services in accordance with this Act:  
 32 33 .................................................. $ 16,230,000
 32 34    1.  Of the funds appropriated in this section, $15,951,138
 32 35 shall be allocated to counties for funding of community-based
 33  1 mental health and developmental disabilities services.  The
 33  2 moneys shall be allocated to a county as follows:
 33  3    a.  Fifty percent based upon the county's proportion of the
 33  4 state's population of persons with an annual income which is
 33  5 equal to or less than the poverty guideline established by the
 33  6 federal office of management and budget.
 33  7    b.  Fifty percent based upon the county's proportion of the
 33  8 state's general population.
 33  9    2.  a.  A county shall utilize the funding the county
 33 10 receives pursuant to subsection 1 for services provided to
 33 11 persons with a disability, as defined in section 225C.2.
 33 12 However, no more than 50 percent of the funding shall be used
 33 13 for services provided to any one of the service populations.
 33 14    b.  A county shall use at least 50 percent of the funding
 33 15 the county receives under subsection 1 for contemporary
 33 16 services provided to persons with a disability, as described
 33 17 in rules adopted by the department.
 33 18    3.  Of the funds appropriated in this section, $30,000
 33 19 shall be used to support the Iowa compass program providing
 33 20 computerized information and referral services for Iowans with
 33 21 disabilities and their families.
 33 22    4.  The department shall submit an annual report concerning
 33 23 each population served and each service funded in this section
 33 24 to the chairpersons and ranking members of the joint
 33 25 appropriations subcommittee on human services and the
 33 26 legislative fiscal bureau.
 33 27    5.  Of the funds appropriated in this section, not more
 33 28 than $248,862 shall be provided to those counties having
 33 29 supplemental per diem contracts in effect on June 30, 1994,
 33 30 which were originally initiated under 1993 Iowa Acts, chapter
 33 31 172, section 16, subsection 2.  The amount provided to each
 33 32 county shall be equal to the amount the county would be
 33 33 eligible to receive under the supplemental per diem contracts
 33 34 in effect on June 30, 1994, if the contracts were continued in
 33 35 effect for the entire fiscal year beginning July 1, 1996.
 34  1    6.  a.  Funding from the federal social services block
 34  2 grant in the amount of $13,038,763 is allocated for
 34  3 distribution to counties for local purchase of services for
 34  4 persons with mental illness or mental retardation or other
 34  5 developmental disability.
 34  6    b.  The funds allocated in this subsection shall be
 34  7 expended by counties in accordance with eligibility guidelines
 34  8 established in the department's rules outlining general
 34  9 provisions for service administration.  Services eligible for
 34 10 payment with funds allocated in this subsection are limited to
 34 11 any of the following which are provided in accordance with the
 34 12 department's administrative rules for the services:  adult
 34 13 support, adult day care, administrative support for
 34 14 volunteers, community supervised apartment living
 34 15 arrangements, residential services for adults, sheltered work,
 34 16 supported employment, supported work training, transportation,
 34 17 and work activity.
 34 18    c.  In purchasing services with funds allocated in this
 34 19 subsection, a county shall designate a person to provide for
 34 20 eligibility determination and development of a case plan for
 34 21 individuals for whom the services are purchased.  The
 34 22 designated person shall be a medical assistance case manager
 34 23 serving the person's county of residence.  If an individual
 34 24 does not have a case manager, the individual's eligibility
 34 25 shall be determined by a social services caseworker of the
 34 26 department serving the individual's county of residence.  The
 34 27 case plan shall be developed in accordance with the
 34 28 department's rules outlining general provisions for service
 34 29 administration.
 34 30    d.  Services purchased with funds allocated in this
 34 31 subsection must be the result of a referral by the person who
 34 32 identified the services in developing the individual's case
 34 33 plan.
 34 34    e.  Services purchased with funds allocated in this
 34 35 subsection must be under a purchase of service contract
 35  1 established in accordance with the department's administrative
 35  2 rules for purchase of service.
 35  3    f.  The funds provided by this subsection shall be
 35  4 allocated to each county as follows:
 35  5    (1)  Fifty percent based upon the county's proportion of
 35  6 the state's population of persons with an annual income which
 35  7 is equal to or less than the poverty guideline established by
 35  8 the federal office of management and budget.
 35  9    (2)  Fifty percent based upon the amount provided to the
 35 10 county for local purchase of services in the preceding fiscal
 35 11 year.
 35 12    g.  Each county shall submit to the department a plan for
 35 13 funding of the services eligible for payment under this
 35 14 subsection.  The plan may provide for allocation of the funds
 35 15 for one or more of the eligible services.  The plan shall
 35 16 identify the funding amount the county allocates for each
 35 17 service and the time period for which the funding will be
 35 18 available.  Only those services which have funding allocated
 35 19 in the plan are eligible for payment with funds provided in
 35 20 this subsection.
 35 21    h.  A county shall provide advance notice to the individual
 35 22 receiving services, the service provider, and the person
 35 23 responsible for developing the case plan of the date the
 35 24 county determines that funding will no longer be available for
 35 25 a service.
 35 26    i.  The moneys provided under this subsection do not
 35 27 establish an entitlement to the services funded under this
 35 28 subsection.
 35 29    7.  If a county has a county management plan which is
 35 30 approved by the director of human services pursuant to section
 35 31 331.439, the county shall be considered to have met the
 35 32 requirements of subsection 2, and subsection 6, paragraphs
 35 33 "b", "c", "d", "e", and "g".  The department shall adopt rules
 35 34 to implement the provisions of this subsection.
 35 35    Sec. 20.  PERSONAL ASSISTANCE – FAMILY SUPPORT.  There is
 36  1 appropriated from the general fund of the state to the
 36  2 department of human services for the fiscal year beginning
 36  3 July 1, 1996, and ending June 30, 1997, the following amount
 36  4 or so much thereof as is necessary, to be used for the purpose
 36  5 designated:
 36  6    For continuation of a pilot project for the personal
 36  7 assistance services program in accordance with this section:  
 36  8 .................................................. $    364,000
 36  9    The funds appropriated in this section shall be used by the
 36 10 division of children and family services to continue the pilot
 36 11 project for the personal assistance services program under
 36 12 section 225C.46 in an urban and a rural area.  A portion of
 36 13 the funds may be used for costs to develop a federal home and
 36 14 community-based waiver under the medical assistance program
 36 15 for persons with physical disabilities or other expenditures
 36 16 necessary to develop the personal assistance program in the
 36 17 most appropriate and cost-effective manner.  However, not more
 36 18 than $50,000 shall be used for administrative costs.  The
 36 19 pilot project and the waiver shall not be implemented in a
 36 20 manner that would require additional county or state costs for
 36 21 assistance provided to an individual served under the pilot
 36 22 project or the waiver.
 36 23    Sec. 21.  FIELD OPERATIONS.  There is appropriated from the
 36 24 general fund of the state to the department of human services
 36 25 for the fiscal year beginning July 1, 1996, and ending June
 36 26 30, 1997, the following amount, or so much thereof as is
 36 27 necessary, to be used for the purpose designated:
 36 28    For field operations, including salaries, support,
 36 29 maintenance, and miscellaneous purposes and for not more than
 36 30 the following full-time equivalent positions:  
 36 31 .................................................  $ 38,483,998
 36 32 ............................................... FTEs   2,019.00
 36 33    Sec. 22.  GENERAL ADMINISTRATION.  There is appropriated
 36 34 from the general fund of the state to the department of human
 36 35 services for the fiscal year beginning July 1, 1996, and
 37  1 ending June 30, 1997, the following amount, or so much thereof
 37  2 as is necessary, to be used for the purpose designated:
 37  3    For general administration, including salaries, support,
 37  4 maintenance, and miscellaneous purposes and for not more than
 37  5 the following full-time equivalent positions:  
 37  6 .................................................. $ 11,917,316
 37  7 ............................................... FTEs     401.00
 37  8    1.  Of the funds appropriated in this section, $57,090 is
 37  9 allocated for the prevention of disabilities policy council
 37 10 established in section 225B.3.
 37 11    2.  a.  Except as provided under this subsection and under
 37 12 the appropriation in this Act to the legislative council, the
 37 13 department shall not implement the options for service system
 37 14 modification developed by the department's modification teams
 37 15 in response to proposed federal action and shall not implement
 37 16 other actions in response to enacted federal changes affecting
 37 17 the programs administered by the department unless the
 37 18 department is implementing a policy or action authorized in
 37 19 law by the Seventy-sixth General Assembly, 1996 Session, or by
 37 20 the Seventy-seventh General Assembly.
 37 21    b.  The department may make changes to the requirements for
 37 22 periodic reporting by participants under the family investment
 37 23 program, food stamp program, or medical assistance program if
 37 24 the changes would result in a reduction in paperwork for the
 37 25 participants and for department staff.  If a federal waiver is
 37 26 necessary to implement a change, the department may submit the
 37 27 waiver request to the United States departments of health and
 37 28 human services and agriculture, as applicable.  If the
 37 29 department elects to submit a waiver request or to adopt rules
 37 30 to implement a change under this paragraph, the department
 37 31 shall first consult with a group similar to the work group
 37 32 that considered the state human investment policy proposal or
 37 33 with a successor interagency task force which makes
 37 34 recommendations concerning the family investment program, and
 37 35 shall share the proposals with the chairpersons and ranking
 38  1 members of the committees on human resources of the senate and
 38  2 house of representatives.
 38  3    c.  If implementation of the request would result in
 38  4 increased federal funding and would permit greater flexibility
 38  5 in service funding, the department may submit a waiver request
 38  6 to the United States department of health and human services
 38  7 for Title IV-E funding to be provided to the state in a fixed
 38  8 amount.  Prior to submission of the request, the department
 38  9 shall consult with representatives of the juvenile court and
 38 10 service providers.
 38 11    Sec. 23.  DEPARTMENT OF HUMAN SERVICES RESTRUCTURING TASK
 38 12 FORCE ON THE FUTURE OF HUMAN SERVICES.  There is appropriated
 38 13 from the general fund of the state to the legislative council
 38 14 for the fiscal period beginning July 1, 1996, and ending June
 38 15 30, 1998, the following amount, or so much thereof as is
 38 16 necessary, to be used for the purpose designated:
 38 17    For expenses associated with the activities of the task
 38 18 force for assessing the structure and function of the
 38 19 department of human services and human services programs in
 38 20 accordance with this section:  
 38 21 .................................................. $     75,000
 38 22    1.  The legislative council shall establish a task force to
 38 23 develop a comprehensive proposal for changing the role and
 38 24 function of the department of human services and its programs.
 38 25 The purpose of the changes is to improve services to Iowans
 38 26 through the creation of new federal, state, and local
 38 27 partnerships.  The task force shall make recommendations
 38 28 regarding restructuring the department of human services in
 38 29 order to achieve better human services results, to improve the
 38 30 quality of service delivery, and to increase the quality of
 38 31 the department's interaction with the public.  The task force
 38 32 may also assess program duplication and linkages with other
 38 33 federal, state, or local programs or funding streams.
 38 34    2.  The task force shall be composed of not more than 21
 38 35 members appointed by the legislative council and shall include
 39  1 not more than five individuals recommended by the governor and
 39  2 legislators who are members of the joint appropriations
 39  3 subcommittee on human services and other knowledgeable
 39  4 legislators designated by the legislative council.  The task
 39  5 force may use moneys appropriated in this section for
 39  6 technical assistance.  The task force shall consult with
 39  7 service consumers, experts who are representative of
 39  8 organizations such as nonprofit service organizations, health
 39  9 insurers, and human services-oriented community organizations,
 39 10 representatives of local governments, representatives of state
 39 11 agencies, federal officials with expertise or responsibilities
 39 12 regarding human services in Iowa, and others, as determined by
 39 13 the task force.  An interim report shall be completed prior to
 39 14 the convening of the Seventy-seventh General Assembly.
 39 15    The task force shall provide for public input concerning
 39 16 the four modification proposals developed by the department in
 39 17 response to proposed federal actions submitted to the joint
 39 18 appropriations subcommittee on human services in February
 39 19 1996.
 39 20    The task force may establish work groups to assist in the
 39 21 task force's consideration of the modification proposals which
 39 22 may include the following:
 39 23    a.  A review of the child welfare modification proposal
 39 24 which may include input from representatives of the juvenile
 39 25 court, service providers, families receiving services, the
 39 26 attorney general, representatives of local governments,
 39 27 representatives of state agencies, and other citizens and
 39 28 officials.
 39 29    b.  A review of the mental health and developmental
 39 30 disabilities proposal which shall incorporate issues
 39 31 associated with implementation of the funding reform enacted
 39 32 in 1995 Iowa Acts, chapter 206; usage of service providers
 39 33 such as intermediate care facilities for the mentally
 39 34 retarded, state institutions, and other services for persons
 39 35 with disabilities; distribution of services throughout the
 40  1 state; and other issues.  In addition, the review shall
 40  2 consider a proposal to replace the single contract for managed
 40  3 care under medical assistance with not more than four regional
 40  4 plans utilizing collaborations between community mental health
 40  5 centers as umbrella agencies.
 40  6    c.  A review of the family investment program proposal
 40  7 which may include input from the work group which considered
 40  8 the state human investment policy proposal or a successor
 40  9 interagency task force which makes recommendations to the
 40 10 department concerning the family investment program.
 40 11 Consideration of issues associated with the proposal may
 40 12 include review of the emergency assistance program, the family
 40 13 development and self-sufficiency (FaDSS) program, and child
 40 14 day care programs, and an assessment of the feasibility of
 40 15 transferring all or part of the functions of the child support
 40 16 recovery unit to other agencies of state government.
 40 17    d.  A review of the medical assistance proposal which may
 40 18 include input from representatives of the medical assistance
 40 19 advisory council, the long-term care resident's advocate, and
 40 20 consumer groups such as the Iowa affiliate of the American
 40 21 association of retired persons, Iowa citizens' action network,
 40 22 the governor's DD council which was formerly referred to as
 40 23 the governor's planning council for developmental
 40 24 disabilities, and representatives of maternal and child health
 40 25 centers.
 40 26    3.  If federal law requires the state to make changes in
 40 27 the programs and services directed to the populations
 40 28 addressed by the modification proposals and authorizes the
 40 29 changes to be made without state legislation, the department
 40 30 shall adopt rules to implement the changes.  The rules shall
 40 31 be submitted to the task force for review and recommendation
 40 32 prior to their submission to the administrative rules review
 40 33 committee.  
 40 34    Sec. 24.  VOLUNTEERS.  There is appropriated from the
 40 35 general fund of the state to the department of human services
 41  1 for the fiscal year beginning July 1, 1996, and ending June
 41  2 30, 1997, the following amount, or so much thereof as is
 41  3 necessary, to be used for the purpose designated:
 41  4    For development and coordination of volunteer services:  
 41  5 .................................................. $     98,900
 41  6    Sec. 25.  MEDICAL ASSISTANCE, STATE SUPPLEMENTARY
 41  7 ASSISTANCE, AND SOCIAL SERVICE PROVIDERS REIMBURSED UNDER THE
 41  8 DEPARTMENT OF HUMAN SERVICES.
 41  9    1.  a.  The department of human services may allocate
 41 10 increases among items and procedures for durable medical
 41 11 products and supplies as deemed appropriate in cooperation
 41 12 with durable medical equipment and supply dealers,
 41 13 audiologists, and hearing aid dealers.
 41 14    b.  For the fiscal year beginning July 1, 1996, skilled
 41 15 nursing facilities shall remain at the rates in effect on June
 41 16 30, 1996.
 41 17    c.  The dispensing fee for pharmacists shall remain at the
 41 18 rate in effect on June 30, 1996.  The reimbursement policy for
 41 19 drug product costs shall be in accordance with federal
 41 20 requirements.
 41 21    d.  Reimbursement rates for inpatient and outpatient
 41 22 hospital services shall remain at the rates in effect on June
 41 23 30, 1996.  The department shall continue the outpatient
 41 24 hospital reimbursement system based upon ambulatory patient
 41 25 groups implemented pursuant to 1994 Iowa Acts, chapter 1186,
 41 26 section 25, subsection 1, paragraph "f".  Reimbursements made
 41 27 between July 1, 1996, and June 30, 1997, under the outpatient
 41 28 hospital reimbursement system implemented pursuant to 1994
 41 29 Iowa Acts, chapter 1186, section 25, subsection 1, paragraph
 41 30 "f", shall be retrospectively adjusted so that the
 41 31 reimbursement made is within a ten percent deviation of the
 41 32 lower of the cost or the charges for the services provided
 41 33 during the fiscal year ending June 30, 1996.  In addition, the
 41 34 department shall continue the revised medical assistance
 41 35 payment policy implemented pursuant to that paragraph to
 42  1 provide reimbursement for costs of screening and treatment
 42  2 provided in the hospital emergency room if made pursuant to
 42  3 the prospective payment methodology developed by the
 42  4 department for the payment of outpatient services provided
 42  5 under the medical assistance program.
 42  6    e.  Reimbursement rates for rural health clinics shall be
 42  7 increased in accordance with increases under the federal
 42  8 Medicare program.
 42  9    f.  Home health agencies certified for the federal Medicare
 42 10 program, hospice services, and acute care mental hospitals
 42 11 shall be reimbursed for their current federal Medicare audited
 42 12 costs.
 42 13    g.  The basis for establishing the maximum medical
 42 14 assistance reimbursement rate for nursing facilities shall be
 42 15 the 70th percentile of facility costs as calculated from the
 42 16 June 30, 1996, unaudited compilation of cost and statistical
 42 17 data.  However, to the extent funds are available within the
 42 18 amount projected for reimbursement of nursing facilities
 42 19 within the appropriation for medical assistance in this Act,
 42 20 and within the appropriation for medical assistance as a
 42 21 whole, the department shall adjust the maximum medical
 42 22 assistance reimbursement for nursing facilities to the 70th
 42 23 percentile, as calculated on December 31, 1996, unaudited
 42 24 compilation of cost and statistical data and the adjustment
 42 25 shall take effect January 1, 1997.
 42 26    h.  The department may modify the reimbursement methodology
 42 27 for skilled nursing facilities which participated in the
 42 28 medical assistance program on or before May 31, 1993, and
 42 29 which met the departmental disproportionate share payment
 42 30 provisions as of May 31, 1993, if it is possible to
 42 31 demonstrate that the modification would result in a cost
 42 32 savings to the medical assistance program.
 42 33    i.  The department may revise the fee schedule used for
 42 34 physician reimbursement.
 42 35    j.  Federally qualified health centers shall be reimbursed
 43  1 at 100 percent of reasonable costs as determined by the
 43  2 department in accordance with federal requirements.
 43  3    k.  The department may allocate increases among items and
 43  4 procedures for dental procedures as deemed appropriate in
 43  5 cooperation with dentists.
 43  6    2.  For the fiscal year beginning July 1, 1996, the maximum
 43  7 cost reimbursement rate for residential care facilities
 43  8 reimbursed by the department shall be $21.54 per day.  The
 43  9 flat reimbursement rate for facilities electing not to file
 43 10 semiannual cost reports shall be $15.41 per day.  For the
 43 11 fiscal year beginning July 1, 1996, the maximum reimbursement
 43 12 rate for providers reimbursed under the in-home health-related
 43 13 care program shall be $414.11 per month.
 43 14    3.  Unless otherwise directed in this section, when the
 43 15 department's reimbursement methodology for any provider
 43 16 reimbursed in accordance with this section includes an
 43 17 inflation factor, this factor shall not exceed the amount by
 43 18 which the consumer price index for all urban consumers
 43 19 increased during the calendar year ending December 31, 1995.
 43 20    4.  Notwithstanding section 234.38, in the fiscal year
 43 21 beginning July 1, 1996, the foster family basic daily
 43 22 maintenance rate and the maximum adoption subsidy rate for
 43 23 children ages 0 through 5 years shall be $12.34, the rate for
 43 24 children ages 6 through 11 years shall be $13.06, the rate for
 43 25 children ages 12 through 15 years shall be $14.23, and the
 43 26 rate for children ages 16 and older shall be $15.12.
 43 27    5.  For the fiscal year beginning July 1, 1996, the maximum
 43 28 reimbursement rates for social service providers shall be the
 43 29 same as the rates in effect on June 30, 1996, except under any
 43 30 of the following circumstances:
 43 31    a.  If a new service was added after June 30, 1996, the
 43 32 initial reimbursement rate for the service shall be based upon
 43 33 actual and allowable costs.
 43 34    b.  If a social service provider loses a source of income
 43 35 used to determine the reimbursement rate for the provider, the
 44  1 provider's reimbursement rate may be adjusted to reflect the
 44  2 loss of income, provided that the lost income was used to
 44  3 support actual and allowable costs of a service purchased
 44  4 under a purchase of service contract.
 44  5    c.  The department revises the reimbursement rates as part
 44  6 of the changes in the mental health and developmental
 44  7 disabilities services system initiated pursuant to 1995 Iowa
 44  8 Acts, chapter 206 (Senate File 69), and associated
 44  9 legislation.
 44 10    d.  The reimbursement rate revision is necessary to
 44 11 implement the change required by the appropriation in this Act
 44 12 for an increase in the reimbursement for residential care
 44 13 facilities.
 44 14    6.  The group foster care reimbursement rates paid for
 44 15 placement of children out-of-state shall be calculated
 44 16 according to the same rate-setting principles as those used
 44 17 for in-state providers unless the director determines that
 44 18 appropriate care cannot be provided within the state.  The
 44 19 payment of the daily rate shall be based on the number of days
 44 20 in the calendar month in which service is provided.
 44 21    7.  For the fiscal year beginning July 1, 1996, the
 44 22 combined service and maintenance components of the
 44 23 reimbursement rate paid to a shelter care provider shall be
 44 24 based on the cost report submitted to the department.  The
 44 25 maximum reimbursement rate shall be $76.61 per day.  If the
 44 26 department would reimburse the provider at less than the
 44 27 maximum rate but the provider's cost report justifies a rate
 44 28 of at least $76.61, the department shall readjust the
 44 29 provider's reimbursement rate to the maximum reimbursement
 44 30 rate.  In January 1997, the department shall review the usage
 44 31 of shelter care and the funding allocated for shelter care, if
 44 32 the usage is less than anticipated and the existing contracts
 44 33 for provision of shelter care do not obligate the total amount
 44 34 of the funds allocated, the department may utilize moneys in
 44 35 the allocation, which would otherwise be unexpended, for wrap-
 45  1 around services or support to enable group foster care
 45  2 placement to be prevented or the length of stay reduced.
 45  3    8.  The department, through the drug utilization review
 45  4 commission, shall propose a pilot project for an alternative
 45  5 payment system, recommended in the study completed by the drug
 45  6 utilization review commission, for compensation of pharmacists
 45  7 for pharmaceutical care services under medical assistance at
 45  8 no cost to the state.  The department shall submit the
 45  9 proposal to the members of the joint appropriations
 45 10 subcommittee on human services on or before November 30, 1996.
 45 11    9.  For the fiscal year beginning July 1, 1996, the
 45 12 department shall calculate reimbursement rates for
 45 13 intermediate care facilities for the mentally retarded at the
 45 14 80th percentile.  The department shall address any other
 45 15 proposals for containment of intermediate care facilities for
 45 16 the mentally retarded costs with the work group for
 45 17 restructuring of the department of human services created
 45 18 pursuant to this Act.
 45 19    10.  The department of human services shall adopt rules
 45 20 applicable to agencies providing services under the
 45 21 department's rehabilitative treatment program for children and
 45 22 their families to eliminate reimbursement rate limits on
 45 23 service components which are within a category of cost which
 45 24 itself has a reimbursement rate limit.  The change required by
 45 25 this subsection shall be implemented in a manner which is cost
 45 26 neutral.
 45 27    11.  The department shall negotiate with providers of
 45 28 services under the department's medical assistance
 45 29 rehabilitative treatment program for children and families, to
 45 30 revise the department's rules providing reimbursement rates
 45 31 under the program, including a review of cost principles.  The
 45 32 goals for the revision are to simplify the reimbursement
 45 33 process, reduce paperwork for providers, and provide full
 45 34 payment for necessary services provided under contract with
 45 35 the department.  Prior to adoption of the rules and no later
 46  1 than October 1, 1996, the department shall provide a
 46  2 description of the agreement to the chairpersons and ranking
 46  3 members of the joint appropriations subcommittee on human
 46  4 services.  The provisions of this subsection shall be separate
 46  5 from the provisions of subsection 10.
 46  6    12.  The department of human services, in consultation with
 46  7 representatives of nursing facilities, consumers, legislators,
 46  8 a representative of the department of management or the
 46  9 governor's designee, and other interested entities, shall do
 46 10 all of the following with the goals of improving the quality
 46 11 of care and improving the recruitment and retention of
 46 12 qualified direct health care providers in nursing facilities:
 46 13    a.  Establish definitions for the direct health care,
 46 14 administrative, room and board, and property cost categories
 46 15 for reimbursement of nursing facilities under the medical
 46 16 assistance program.
 46 17    b.  Analyze and make recommendations for the distribution
 46 18 of costs among the cost categories which may include
 46 19 elimination or replacement of the cost categories.
 46 20    c.  Analyze and make recommendations to eliminate
 46 21 reimbursement rate limits on components which are within a
 46 22 category of cost which itself has a reimbursement rate limit.
 46 23    d.  Conduct a cost-benefit analysis of incentive payments,
 46 24 evaluate their impact on quality of care and patient well-
 46 25 being, and make recommendations based upon the analysis and
 46 26 evaluation.
 46 27    e.  Analyze and make recommendations for clarification and
 46 28 simplification of the cost report format, which may include
 46 29 standardization with the county charts of accounts.
 46 30    f.  Analyze and make recommendations regarding the use of a
 46 31 reimbursement allowance for those nursing facilities serving a
 46 32 disproportionate share of medical assistance patients.
 46 33    g.  Analyze and make recommendations regarding effective
 46 34 ways to mediate disputes between a nursing facility and the
 46 35 department of inspections and appeals concerning significant
 47  1 violations, prior to a formal appeal.
 47  2    h.  Submit a report of the definitions, analysis, and
 47  3 recommendations to the general assembly on or before December
 47  4 16, 1996.
 47  5    13.  The department may adopt emergency rules to implement
 47  6 the provisions of this section.
 47  7    Sec. 26.  RESIDENTIAL SERVICES – PURCHASE OF SERVICES –
 47  8 REIMBURSEMENT RATE INCREASE.  There is appropriated from the
 47  9 general fund of the state to the department of human services
 47 10 for the fiscal year beginning July 1, 1996, and ending June
 47 11 30, 1997, the following amount, or so much thereof as is
 47 12 necessary, to be used for the purpose designated:
 47 13    For an increase in the purchase of service reimbursement
 47 14 rate for adult residential services provided to persons
 47 15 residing in any category of licensed residential care
 47 16 facility.  Beginning July 1, 1996, provider service rates for
 47 17 adult residential services shall be increased up to the amount
 47 18 of actual and allowable costs plus inflation, based upon the
 47 19 cost reports on which rates have been established as of April
 47 20 1, 1996.  However, a provider service rate shall not be
 47 21 increased by more than $4.36 per day.  If a provider service
 47 22 rate in effect prior to July 1, 1996, is greater than the
 47 23 actual and allowable costs plus inflation, based upon the cost
 47 24 report, or if the difference between the provider service rate
 47 25 and the actual and allowable costs is less than $.44 per day,
 47 26 the provider service rate shall be increased by $.44 per day:  
 47 27 .................................................. $  1,300,000
 47 28    1.  Funding appropriated in this section shall be allocated
 47 29 to counties in accordance with the distribution guidelines for
 47 30 local purchase of services in accordance with the
 47 31 appropriation in this Act for the mental health and
 47 32 developmental disabilities community services fund.  Use of
 47 33 the funding is restricted to reimbursement of a licensed
 47 34 residential care facility provider of adult residential
 47 35 services which had a purchase of service contract for those
 48  1 services in effect on June 30, 1996, and for which the rate
 48  2 negotiated for fiscal year 1996-1997 is greater than the rate
 48  3 paid in fiscal year 1995-1996.
 48  4    2.  Of the moneys appropriated in this section, $130,000
 48  5 shall be transferred to the appropriation in this Act for
 48  6 MI/MR/DD state cases and shall be used for payment of the
 48  7 increased reimbursement rate to residential care facilities
 48  8 providing services through local purchase of services for
 48  9 persons under the state cases program, and in accordance with
 48 10 the guidelines in this Act for local purchase of services.
 48 11    Sec. 27.  APPROPRIATIONS REDUCTIONS.  The following
 48 12 appropriations in this Act for the fiscal year beginning July
 48 13 1, 1996, and ending June 30, 1997, are reduced by a total of
 48 14 $1,560,000: child support recovery, juvenile institutions,
 48 15 community-based programs, mental health institutes, state
 48 16 hospital-schools, field operations, and general
 48 17 administration.  The department shall use the following
 48 18 guidelines in achieving these reductions:
 48 19    1.  As the highest priority, avoid disruptions of direct
 48 20 client services.
 48 21    2.  To the extent possible, use attrition to reduce the
 48 22 number of positions filled.
 48 23    3.  To the extent possible, not disproportionately affect a
 48 24 single job classification.
 48 25    4.  Not include in the reduction, the elimination of the
 48 26 3.00 FTEs for managed care specialists in the medical services
 48 27 division.
 48 28    5.  Consider reductions in administration, overhead, and
 48 29 program duplication.
 48 30    The department shall submit the department's plan for
 48 31 accomplishing the reductions to the chairpersons and ranking
 48 32 members of the joint appropriations subcommittee on human
 48 33 services, the department of management, and the legislative
 48 34 fiscal bureau on or before June 15, 1996.
 48 35    Sec. 28.  STATE INSTITUTIONS – CLOSINGS, REDUCTIONS, AND
 49  1 BILLING PRACTICES.
 49  2    1.  If a state institution administered by the department
 49  3 of human services is to be closed or reduced in size, prior to
 49  4 the closing or reduction the department shall initiate and
 49  5 coordinate efforts in cooperation with the Iowa department of
 49  6 economic development to develop new jobs in the area in which
 49  7 the state institution is located.  In addition, the department
 49  8 may take other actions to utilize any closed unit or other
 49  9 facilities and services of an institution, including but not
 49 10 limited to assisting public or private organizations in
 49 11 utilizing the services and facilities.  The actions may also
 49 12 include assisting an organization with remodeling and lease
 49 13 costs by forgiving future rental or lease payments to the
 49 14 extent necessary for a period not to exceed five years.  The
 49 15 department of human services and the department of economic
 49 16 development shall submit a joint report to the chairpersons
 49 17 and ranking members of the joint appropriations subcommittee
 49 18 on human services on or before January 2, 1997, regarding any
 49 19 efforts made pursuant to this subsection.
 49 20    2.  For purposes of this section, "state institution" means
 49 21 a state mental health institute, a state hospital-school, the
 49 22 state training school, and the Iowa juvenile home under the
 49 23 authority of the department of human services listed in
 49 24 section 218.1.  If excess capacity exists at a state
 49 25 institution beyond the capacity required for placements at the
 49 26 institution under law, the department of human services may
 49 27 enter into a contract with a managed care provider or an
 49 28 organized delivery system for health care, to provide services
 49 29 during the fiscal year beginning July 1, 1996, at the
 49 30 institution for the plan or system.
 49 31    3.  The department shall work with administrators of state
 49 32 institutions and the department of management and the
 49 33 legislative fiscal bureau in reviewing revenues and
 49 34 expenditures attributable to state institutions, applicable
 49 35 fiscal procedures, and other information as necessary to
 50  1 develop a proposal to revise the manner of making
 50  2 appropriations to these state institutions and of accounting
 50  3 for reimbursements and expenditures so that in future fiscal
 50  4 years the amounts appropriated reflect the net amount of state
 50  5 funds needed.  The proposal shall be submitted to the general
 50  6 assembly on or before December 16, 1996.  If deemed feasible
 50  7 by those performing the review, the department of human
 50  8 services and the department of management shall incorporate
 50  9 the proposed revisions in the budget documents for the fiscal
 50 10 year beginning July 1, 1997.
 50 11    4.  The superintendents of the state hospital-schools shall
 50 12 work with the department's administrative staff in studying
 50 13 the manner in which services and costs are combined for
 50 14 purposes of billing for medical assistance reimbursement at
 50 15 the state hospital-schools.  Following the study, the
 50 16 superintendents shall submit a report which may include a
 50 17 proposal for revising the state hospital-schools' manner of
 50 18 billing for medical assistance reimbursement to be more
 50 19 comparable to other intermediate care facilities for the
 50 20 mentally retarded.  The report shall be submitted to the
 50 21 general assembly on or before December 16, 1996.
 50 22    5.  The superintendent of the state hospital-schools shall
 50 23 work with the department's administrative staff in developing
 50 24 methodologies to bill services, consultation, and other
 50 25 assistance provided by the state hospital-schools in support
 50 26 of community-based services.  The department may implement the
 50 27 methodologies in the fiscal year beginning July 1, 1996.
 50 28    6.  In addition to existing planning efforts for community-
 50 29 based alternatives to placements at a state hospital-school,
 50 30 if the department's budget planning for fiscal year 1997-1998
 50 31 includes a proposal for reduction of capacity at a state
 50 32 hospital-school or mental health institute, the department
 50 33 shall work with counties, service providers, advocates, and
 50 34 the department's contractor for managed mental health care
 50 35 under medical assistance, in developing a plan for community-
 51  1 based placements in place of the capacity proposed to be
 51  2 reduced.  The plan shall be submitted for review to the task
 51  3 force on the future of human services created in this Act and
 51  4 to the state-county management committee.  It is the intent of
 51  5 the general assembly that any authorization for any reduction
 51  6 of capacity at a state hospital-school or state mental health
 51  7 institute in fiscal year 1997-1998 is contingent upon
 51  8 development of sufficient community-based placements to
 51  9 replace the reduced capacity.
 51 10    7.  To the extent possible, the department shall consult
 51 11 with the applicable workgroups of the task force on the future
 51 12 of the department of human services created in this Act
 51 13 concerning the activities required of the department pursuant
 51 14 to this section.
 51 15    Sec. 29.  STANDARDS FOR CASELOADS.  The department of human
 51 16 services shall develop a plan for meeting national standards
 51 17 on caseloads for the department's social workers.
 51 18    The department shall submit the planning provisions
 51 19 required by this section to the members of the joint
 51 20 appropriations subcommittee on human services of the senate
 51 21 and house of representatives on or before January 8, 1997.
 51 22    Sec. 30.  REPORTS.  Any reports or information required to
 51 23 be compiled and submitted under this Act shall be submitted to
 51 24 the chairpersons and ranking members of the joint
 51 25 appropriations subcommittee on human services, the legislative
 51 26 fiscal bureau, the legislative service bureau, and to the
 51 27 caucus staffs on or before the dates specified for submission
 51 28 of the reports or information.
 51 29    Sec. 31.  REPORTS BY PROVIDERS OF FOSTER CARE SERVICES –
 51 30 REVIEW – PROCESS SIMPLIFICATION.  The department of human
 51 31 services shall consult with providers of rehabilitation
 51 32 treatment services relating to the medical assistance child
 51 33 services initiative in reviewing provider requirements
 51 34 relating to financial and statistical accountability reporting
 51 35 and the process for submission of the reports relating to
 52  1 these requirements.  Following this review, and no later than
 52  2 January 1, 1997, the department of human services shall
 52  3 implement a process which provides, at a minimum, for a
 52  4 simplified means of documenting compliance with provider
 52  5 accountability requirements which shall, at a minimum, include
 52  6 consolidation of the reports required and which may provide a
 52  7 means for submission of the reports in an electronic format.
 52  8    Sec. 32.  Section 135H.6, Code 1995, is amended by adding
 52  9 the following new subsections:
 52 10    NEW SUBSECTION.  5A.  The department of human services may
 52 11 give approval to conversion of beds specializing in substance
 52 12 abuse treatment previously approved under subsection 5,
 52 13 paragraph "b", to beds which are not specialized as referenced
 52 14 in subsection 5, paragraph "a".  Beds converted under this
 52 15 subsection shall be in addition to the number of beds
 52 16 authorized under subsection 5, paragraph "a".  However, the
 52 17 total number of beds approved under subsection 5 shall not
 52 18 exceed four hundred thirty.  Conversion of beds under this
 52 19 subsection shall not require a revision of the certificate of
 52 20 need issued for the psychiatric institution making the
 52 21 conversion.
 52 22    NEW SUBSECTION.  7.  A psychiatric institution licensed
 52 23 prior to January 1, 1996, may exceed the number of beds
 52 24 authorized under subsections 5 and 5A if the excess beds are
 52 25 used to provide services funded from a source other than the
 52 26 medical assistance program under chapter 249A.
 52 27 Notwithstanding subsections 4, 5, and 5A, the provision of
 52 28 services using such excess beds does not require a certificate
 52 29 of need or a review by the department of human services.
 52 30    Sec. 33.  Section 228.5, subsection 1, Code 1995, is
 52 31 amended to read as follows:
 52 32    1.  An individual or an individual's legal representative
 52 33 shall be informed that mental health information relating to
 52 34 the individual may be disclosed to employees or agents of or
 52 35 for the same mental health facility or to other providers of
 53  1 professional services or their employees or agents if and to
 53  2 the extent necessary to facilitate the provision of
 53  3 administrative and professional services to the individual.
 53  4    Sec. 34.  Section 228.5, Code 1995, is amended by adding
 53  5 the following new subsection:
 53  6    NEW SUBSECTION.  4.  Mental health information relating to
 53  7 an individual may be disclosed to other providers of
 53  8 professional services or their employees or agents if and to
 53  9 the extent necessary to facilitate the provision of
 53 10 administrative and professional services to the individual.
 53 11    Sec. 35.  Section 232.143, Code Supplement 1995, is amended
 53 12 to read as follows:
 53 13    232.143  REGIONAL GROUP FOSTER CARE TARGET BUDGET TARGETS.
 53 14    1.  A statewide expenditure target for the average number
 53 15 of for children in group foster care placements on any day of
 53 16 in a fiscal year, which placements are a charge upon or are
 53 17 paid for by the state, shall be established annually in an
 53 18 appropriation bill by the general assembly.  The department
 53 19 and the judicial department shall jointly develop a formula
 53 20 for allocating a portion of the statewide expenditure target
 53 21 established by the general assembly to each of the
 53 22 department's regions.  The formula shall be based upon the
 53 23 region's proportion of the state population of children and of
 53 24 the statewide number of children placed in usage of group
 53 25 foster care in the previous five completed fiscal years and
 53 26 other indicators of need.  The number expenditure amount
 53 27 determined in accordance with the formula shall be the group
 53 28 foster care placement budget target for that region.  A region
 53 29 may exceed its budget target for group foster care by not more
 53 30 than five percent in a fiscal year, provided the overall
 53 31 funding allocated by the department for all child welfare
 53 32 services in the region is not exceeded.
 53 33    2.  For each of the department's regions, representatives
 53 34 appointed by the department and the juvenile court shall
 53 35 establish a plan for containing the number of expenditures for
 54  1 children placed in group foster care ordered by the court
 54  2 within the budget target allocated to that region pursuant to
 54  3 subsection 1.  The plan shall include monthly targets and
 54  4 strategies for developing alternatives to group foster care
 54  5 placements in order to contain expenditures for child welfare
 54  6 services provided to children within the amount appropriated
 54  7 by the general assembly for that purpose.  Each regional plan
 54  8 shall be established in advance of the fiscal year to which
 54  9 the regional plan applies.  To the extent possible, the
 54 10 department and the juvenile court shall coordinate the
 54 11 planning required under this subsection with planning for
 54 12 services paid under section 232.141, subsection 4.  The
 54 13 department's regional administrator shall communicate
 54 14 regularly, as specified in the regional plan, with the
 54 15 juvenile courts within that region concerning the current
 54 16 status of the regional plan's implementation.
 54 17    3.  State payment for group foster care placements shall be
 54 18 limited to those placements which are in accordance with the
 54 19 regional plans developed pursuant to subsection 2.  If a
 54 20 proposed group foster care placement in a region would meet
 54 21 the region's plan requirements except that the placement would
 54 22 cause a monthly or overall budget target to be exceeded and
 54 23 the child is eligible for an alternative service which is
 54 24 costlier and more restrictive than the proposed placement, the
 54 25 director of human services, after consultation with
 54 26 appropriate juvenile court officials, may allow an exception
 54 27 to policy and authorize the placement.  At the close of the
 54 28 fiscal year, moneys for specific placements authorized by the
 54 29 director under this subsection shall be transferred from the
 54 30 state appropriation for the alternative placement to the
 54 31 appropriation for group foster care placements, as necessary
 54 32 to prevent a deficit in the appropriation for group foster
 54 33 care.
 54 34    Sec. 36.  Section 234.39, unnumbered paragraph 1, Code
 54 35 Supplement 1995, is amended to read as follows:
 55  1    It is the intent of this chapter that an individual
 55  2 receiving foster care services and the individual's parents or
 55  3 guardians, shall have primary responsibility for paying the
 55  4 cost of the care and services.  The support obligation
 55  5 established and adopted under this section shall be consistent
 55  6 with the limitations on legal liability established under
 55  7 sections 222.78 and 230.15, and by any other statute limiting
 55  8 legal responsibility for support which may be imposed on a
 55  9 person for the cost of care and services provided by the
 55 10 department.  The department shall notify an individual's
 55 11 parents or guardians at the time of the placement of an
 55 12 individual in foster care, of the responsibility for paying
 55 13 the cost of care and services.  Support obligations shall be
 55 14 established as follows:
 55 15    Sec. 37.  Section 234.39, Code Supplement 1995, is amended
 55 16 by adding the following new subsection:
 55 17    NEW SUBSECTION.  4.  The support debt for the costs of
 55 18 services, for which a support obligation is established
 55 19 pursuant to this section, which accrues prior to the
 55 20 establishment of the support debt, shall be collected, at a
 55 21 maximum, in the amount which is the amount of accrued support
 55 22 debt for the three months preceding the earlier of the
 55 23 following:
 55 24    a.  The provision by the child support recovery unit of the
 55 25 initial notice to the parent or guardian of the amount of the
 55 26 support obligation.
 55 27    b.  The date that the written request for a court hearing
 55 28 is received by the child support recovery unit as provided in
 55 29 section 252C.3 or 252F.3.
 55 30    Sec. 38.  NEW SECTION.  239.23  FAMILY INVESTMENT PROGRAM
 55 31 HOST HOMES.
 55 32    1.  As used in this section, unless the context otherwise
 55 33 requires:
 55 34    a.  "Host home" means a host home authorized in accordance
 55 35 with the provisions of this section and licensed by the
 56  1 department to provide a living arrangement and related
 56  2 services to minor parents and pregnant minors or an
 56  3 alternative adult supervised placement approved by the
 56  4 department.
 56  5    b.  "Minor parent" means a recipient of or applicant for
 56  6 assistance who is less than eighteen years of age and has
 56  7 never been married.
 56  8    2.  The department shall perform a home assessment of a
 56  9 minor parent who applies for assistance to assess the minor
 56 10 parent's living arrangement prior to the granting of
 56 11 assistance.  If a minor parent is receiving assistance at the
 56 12 time the provisions of this section are implemented, the
 56 13 department shall perform a home assessment as a condition of
 56 14 continued assistance.
 56 15    3.  If the department determines, based upon the home
 56 16 assessment, that the minor parent is living in an environment
 56 17 which is conducive to the positive upbringing of the minor
 56 18 parent's child, the department may allow the minor parent to
 56 19 continue living in the home with the parent or the legal
 56 20 guardian of the minor parent or in another current living
 56 21 arrangement which is approved by the department.
 56 22    4.  If the department determines, based upon the home
 56 23 assessment, that good cause exists for the minor parent to not
 56 24 live with their parent or legal guardian or in the other
 56 25 current living arrangement because the home environment is not
 56 26 conducive to the minor parent's physical, emotional, or mental
 56 27 well-being, the department shall require the minor parent to
 56 28 relocate to a host home, as a condition of assistance under
 56 29 this chapter.  If the minor parent does not live in a host
 56 30 home and the department determines the resulting level of risk
 56 31 to the minor parent warrants the filing of a child in need of
 56 32 assistance petition, the department shall file the petition.
 56 33    5.  If the department determines, based upon the home
 56 34 assessment, that remaining in the current living arrangement
 56 35 is not in the best interest of the minor parent or a child of
 57  1 the minor parent and the minor parent is placed in a host
 57  2 home, the parent or legal guardian shall be referred to the
 57  3 department's child support recovery unit to establish a child
 57  4 support obligation in accordance with the child support
 57  5 guidelines prescribed pursuant to section 598.21, subsection
 57  6 4, not to exceed the cost of the host home placement.
 57  7 However, if a child in need of assistance petition is filed
 57  8 and the child is placed in a foster care setting, the child
 57  9 support obligation shall be determined as provided in section
 57 10 234.39.
 57 11    6.  a.  The department shall issue a request for proposals
 57 12 for grants for nonprofit organizations to establish host homes
 57 13 to provide adult supervision to minor parents and pregnant
 57 14 minors presumed to be eligible for assistance.  A proposal
 57 15 shall demonstrate the organization's ability to provide
 57 16 supervision, services, and other support to enable a minor
 57 17 parent or pregnant minor to develop self-sufficiency.
 57 18    b.  Funding for a host home shall be obtained through
 57 19 assignment of the minor parent's assistance under this
 57 20 chapter, as permitted under federal law or waiver, through
 57 21 child support recovered from the parent or legal guardian of
 57 22 the minor parent, and through appropriations made for the
 57 23 purposes of reimbursing host homes.
 57 24    c.  The department shall adopt rules for licensing of host
 57 25 homes which are distinct from foster care licensure
 57 26 requirements.
 57 27    d.  Host home services shall include but are not limited to
 57 28 training in family development, parenting and self-sufficiency
 57 29 skills, and assistance in completing an education.
 57 30    e.  A host home shall not be considered to be a group
 57 31 foster care facility or to be another licensed facility which
 57 32 provides care for children.  The placement of a minor parent
 57 33 or pregnant minor and the children of a minor parent shall not
 57 34 be considered a placement which is subject to the statewide
 57 35 target for the number of group foster care placements under
 58  1 section 232.143 and associated provisions.
 58  2    7.  This section shall not be implemented prior to July 1,
 58  3 1997, and implementation is contingent upon federal approval
 58  4 of a waiver authorizing the implementation.
 58  5    Sec. 39.  Section 252B.4, Code 1995, is amended to read as
 58  6 follows:
 58  7    252B.4  NONASSISTANCE CASES.
 58  8    The child support and paternity determination services
 58  9 established by the department pursuant to this chapter and
 58 10 other appropriate services provided by law including but not
 58 11 limited to the provisions of chapters 239, 252A, 252C, 252D,
 58 12 252E, 252F, 598, and 600B shall be made available by the unit
 58 13 to an individual not otherwise eligible as a public assistance
 58 14 recipient upon application by the individual for the services.
 58 15 The application shall be filed with the department.
 58 16    1.  The director shall require an application fee of five
 58 17 dollars.
 58 18    2.  The director may require an additional collect a fee to
 58 19 cover the costs incurred by the department in providing the
 58 20 support collection and paternity determination services for
 58 21 service of process, genetic testing and court costs if the
 58 22 entity providing the service charges a fee for the services.
 58 23    a.  The director shall, by rule, establish and inform all
 58 24 applicants for support enforcement and paternity determination
 58 25 services of the fee schedule.
 58 26    b.  The additional fee for services may be deducted from
 58 27 the amount of the support money recovered by the department or
 58 28 may be collected from the recipient of the services following
 58 29 recovery of support money by the department.
 58 30    3.  When the unit intercepts a federal tax refund of an
 58 31 obligor for payment of delinquent support and the funds are
 58 32 due to a recipient of services who is not otherwise eligible
 58 33 for public assistance, the unit shall deduct a twenty-five
 58 34 dollar fee from the funds before forwarding the balance to the
 58 35 recipient.
 59  1    a.  The unit shall inform the recipient of the fee under
 59  2 this subsection prior to assessment.
 59  3    b.  The fee shall be assessed only to individuals who
 59  4 receive support from the federal tax refund offset program.
 59  5 If the tax refund due the recipient is less than fifty
 59  6 dollars, the fee shall not be assessed.
 59  7    4.  The department may adopt rules to establish fees which
 59  8 provide for recovery of administrative costs of the program in
 59  9 addition to other fees identified.
 59 10    5. 4.  Fees collected pursuant to this section shall be
 59 11 retained by the department for use by the unit.  The director
 59 12 or a designee shall keep an accurate record of funds so
 59 13 retained.
 59 14    6. 5.  An application fee paid by a recipient of services
 59 15 pursuant to subsection 1 may be recovered by the unit from the
 59 16 person responsible for payment of support and if recovered,
 59 17 shall be used to reimburse the recipient of services.
 59 18    a.  The fee shall be an automatic judgment against the
 59 19 person responsible to pay support.
 59 20    b.  This subsection shall serve as constructive notice that
 59 21 the fee is a debt due and owing, is an automatic judgment
 59 22 against the person responsible for support, and is assessed as
 59 23 the fee is paid by a recipient of services.  The fee may be
 59 24 collected in addition to any support payments or support
 59 25 judgment ordered, and no further notice or hearing is required
 59 26 prior to collecting the fee.
 59 27    c.  Notwithstanding any provision to the contrary, the unit
 59 28 may collect the fee through any legal means by which support
 59 29 payments may be collected, including but not limited to income
 59 30 withholding under chapter 252D or income tax refund offsets,
 59 31 unless prohibited under federal law.
 59 32    d.  The unit is not required to file these judgments with
 59 33 the clerk of the district court, but shall maintain an
 59 34 accurate accounting of the fee assessed, the amount of the
 59 35 fee, and the recovery of the fee.
 60  1    e.  Support payments collected shall not be applied to the
 60  2 recovery of the fee until all other support obligations under
 60  3 the support order being enforced, which have accrued through
 60  4 the end of the current calendar month, have been paid or
 60  5 satisfied in full.
 60  6    f.  This subsection applies to fees that become due on or
 60  7 after July 1, 1992.
 60  8    Sec. 40.  Section 426B.2, subsection 5, Code Supplement
 60  9 1995, is amended to read as follows:
 60 10    5.  The department of human services shall notify the
 60 11 director of revenue and finance of the amounts due a county in
 60 12 accordance with the provisions of this section.  The director
 60 13 of revenue and finance shall draw warrants on the property tax
 60 14 relief fund, payable to the county treasurer in the amount due
 60 15 to a county in accordance with subsections 1 and 3 and mail
 60 16 distribute the warrants to the county auditors in September on
 60 17 July 1 and March January 1 of each year.  Warrants for the
 60 18 state payment in accordance with subsection 2 shall be mailed
 60 19 distributed in January of each year.
 60 20    Sec. 41.  NEW SECTION.  514I.1  IOWA HEALTHY KIDS PROGRAM
 60 21 – LEGISLATIVE INTENT.
 60 22    1.  The general assembly finds that increased access to
 60 23 health care services could improve children's health and
 60 24 reduce the incidence and costs of childhood illness and
 60 25 disabilities among children in this state.  Many children do
 60 26 not have health care services available or funded, and for
 60 27 those who do, lack of access is a restriction to obtaining
 60 28 such services.  It is the intent of the general assembly that
 60 29 a program be implemented to provide health care services and
 60 30 comprehensive health benefits or insurance coverage to
 60 31 children.  A goal for the program is to cooperate with any
 60 32 existing programs with similar purposes funded by either the
 60 33 public or private sector.
 60 34    2.  For the purposes of this chapter, unless the context
 60 35 otherwise requires:
 61  1    a.  "Advisory council" means the advisory council created
 61  2 by the division under section 514I.4.
 61  3    b.  "Division" means the insurance division of the
 61  4 department of commerce.
 61  5    c.  "Program" means the program developed by the division
 61  6 in accordance with section 514I.3.
 61  7    Sec. 42.  NEW SECTION.  514I.2  IOWA HEALTHY KIDS PROGRAM
 61  8 AUTHORIZATION.
 61  9    1.  The general assembly authorizes the division to
 61 10 implement the Iowa healthy kids program.  The division shall
 61 11 have all powers necessary to carry out the purposes of this
 61 12 chapter, including, but not limited to, the power to receive
 61 13 and accept grants, loans, or advances of funds from any person
 61 14 and to receive and accept from any source contributions of
 61 15 money, property, labor, or any other thing of value, to be
 61 16 held, used, and applied for the purposes of the program.
 61 17    2.  The program shall operate initially on a pilot project
 61 18 basis to include urban and rural areas.  Expansion beyond the
 61 19 initial pilot project is subject to authorization by law.
 61 20    3.  Implementation of the program shall be limited to the
 61 21 extent of the funding appropriated for the purposes of the
 61 22 program.
 61 23    Sec. 43.  NEW SECTION.  514I.3  IOWA HEALTHY KIDS PROGRAM
 61 24 OBJECTIVES.
 61 25    The division shall develop a program to attain all of the
 61 26 following objectives:
 61 27    1.  Organize groupings of children for provision of
 61 28 comprehensive health benefits or insurance coverage.
 61 29    2.  Arrange for the collection of any payment or premium,
 61 30 in an amount to be determined by the division.  The payment or
 61 31 premium shall be collected from a family of a participating
 61 32 child or other person to provide for payment for health care
 61 33 services or premiums for comprehensive health benefits or
 61 34 insurance coverage and for the actual or estimated
 61 35 administrative expenses incurred during the period for which
 62  1 the payments are made.  The amount of payment or premium
 62  2 charged shall be based on the ability of the family of a child
 62  3 to pay.  The division shall provide for adjustment of the
 62  4 amount charged to reflect contributions, public subsidy, or
 62  5 other means used to defray the amount charged.
 62  6    3.  Establish administrative and accounting procedures for
 62  7 the operation of the program.
 62  8    4.  Establish, in consultation with appropriate
 62  9 professional organizations, standards for health care
 62 10 services, providers, and comprehensive health benefits or
 62 11 insurance coverage appropriate for children and their family
 62 12 members.
 62 13    5.  Establish eligibility criteria which children and their
 62 14 family members must meet in order to participate in the
 62 15 program.
 62 16    6.  Establish participation criteria for the program and,
 62 17 if appropriate, contract with an authorized insurer, health
 62 18 maintenance organization, or insurance or benefits
 62 19 administrator to provide administrative services to the
 62 20 program.
 62 21    7.  Contract with authorized insurers, benefits providers,
 62 22 or any provider of health care services meeting standards
 62 23 established by the division, for the provision of
 62 24 comprehensive health benefits or insurance coverage and health
 62 25 care services to participants.
 62 26    8.  Develop and implement a plan to publicize the program,
 62 27 eligibility requirements of the program, and procedures for
 62 28 enrollment in the program and to maintain public awareness of
 62 29 the program.
 62 30    9.  Provide for administration of the program.
 62 31    10.  As appropriate, enter into contracts with local school
 62 32 boards or other agencies to provide on-site information,
 62 33 enrollment, and other services necessary to the operation of
 62 34 the program.
 62 35    11.  Provide an interim report on or before March 1, 1997,
 63  1 to the governor and general assembly, on the development of
 63  2 the program to date and an annual report thereafter until the
 63  3 program is terminated or extended statewide.
 63  4    Sec. 44.  NEW SECTION.  514I.4  ADVISORY COUNCIL.
 63  5    1.  The division may create an advisory council to assist
 63  6 the division in implementing the program.  The advisory
 63  7 council membership may include, but is not limited to, the
 63  8 following:
 63  9    a.  A school administrator.
 63 10    b.  A member of a school board.
 63 11    c.  An employee of the state or local government in public
 63 12 health services.
 63 13    d.  A pediatrician who is a member of the American academy
 63 14 of pediatrics, Iowa chapter.
 63 15    e.  The director of human services or the director's
 63 16 designee.
 63 17    f.  A member of the association of Iowa hospitals and
 63 18 health systems.
 63 19    g.  A representative of authorized health care insurers or
 63 20 health maintenance organizations.
 63 21    h.  A representative of a university center for health
 63 22 issues.
 63 23    i.  A family practice physician who is a member of the Iowa
 63 24 academy of family physicians.
 63 25    j.  A school nurse who is a member of the Iowa nurses
 63 26 association.
 63 27    k.  The director of public health or the director's
 63 28 designee.
 63 29    l.  A citizen who is knowledgeable concerning health care
 63 30 and children's issues.
 63 31    m.  A citizen who is a parent with children at home who is
 63 32 active in a school-parent organization.
 63 33    2.  Advisory council members are entitled to receive, from
 63 34 funds of the division, reimbursement for actual and necessary
 63 35 expenses incurred in the performance of their official duties.
 64  1    Sec. 45.  NEW SECTION.  514I.5  LICENSING NOT REQUIRED –
 64  2 FISCAL OPERATION.
 64  3    1.  Health benefits or insurance coverage obtained under
 64  4 the program is secondary to any other available private or
 64  5 public health benefits or insurance coverage held by the
 64  6 participant child.  The division may establish procedures for
 64  7 coordinating benefits under this program with benefits under
 64  8 other public and private coverage.
 64  9    2.  The program shall not be deemed to be insurance.
 64 10 However, the insurance division may require that any marketing
 64 11 representative utilized and compensated by the program be
 64 12 appointed as a representative of the insurers or health
 64 13 benefits services providers with which the program contracts.
 64 14    Sec. 46.  NEW SECTION.  514I.6  THE IOWA HEALTHY KIDS TRUST
 64 15 FUND.
 64 16    1.  An Iowa healthy kids trust fund is created in the state
 64 17 treasury under the authority of the commissioner of insurance,
 64 18 to which all appropriations shall be deposited and used to
 64 19 carry out the purposes of this chapter.  Other revenues of the
 64 20 program such as grants, contributions, matching funds, and
 64 21 participant payments shall not be considered revenue of the
 64 22 state, but rather shall be funds of the program.  However, the
 64 23 division may designate portions of grants, contributions,
 64 24 matching funds, and participant payments as funds of the state
 64 25 and deposit those funds in the trust fund.
 64 26    2.  The trust fund shall be separate from the general fund
 64 27 of the state and shall not be considered part of the general
 64 28 fund of the state.  The moneys in the trust fund are not
 64 29 subject to section 8.33 and shall not be transferred, used,
 64 30 obligated, appropriated, or otherwise encumbered except as
 64 31 provided in this section.  Notwithstanding section 12C.7,
 64 32 subsection 2, interest or earnings on moneys deposited in the
 64 33 trust fund shall be credited to the trust fund.
 64 34    Sec. 47.  NEW SECTION.  514I.7  ACCESS TO RECORDS –
 64 35 CONFIDENTIALITY – PENALTIES.
 65  1    1.  Notwithstanding any other law to the contrary, the
 65  2 program shall have access to the medical records of a child
 65  3 who is participating or applying to participate in the program
 65  4 upon receipt of permission from a parent or guardian of the
 65  5 child, including but not limited to the medical records
 65  6 maintained by the state or a political subdivision of the
 65  7 state.  Notwithstanding chapter 22, any identifying
 65  8 information, including medical records and family financial
 65  9 information, obtained by the program pursuant to this
 65 10 subsection is confidential.  Except as provided in section
 65 11 252B.9, chapter 252E, or any federal law or regulation to the
 65 12 contrary, the program, the program's employees, and agents of
 65 13 the program shall not release, without the written consent of
 65 14 the participant or the parent or guardian of the participant,
 65 15 to any state or federal agency, to any private business or
 65 16 person, or to any other entity, any confidential information
 65 17 received pursuant to this subsection.
 65 18    2.  A violation of the provisions of subsection 1 is a
 65 19 serious misdemeanor.
 65 20    Sec. 48.  FEDERAL WAIVERS.
 65 21    1.  The department of human services shall submit a waiver
 65 22 request or requests to the United States department of health
 65 23 and human services as necessary to implement the changes in
 65 24 the family investment program and host home provisions under
 65 25 section 239.23 as enacted by this Act.  In addition, the
 65 26 department may submit additional waiver requests to the United
 65 27 States department of health and human services to make changes
 65 28 to the medical assistance program under chapter 249A, as
 65 29 necessary to revise the program in accordance with any waiver
 65 30 provision implemented pursuant to section 239.23.
 65 31    2.  The waiver request or requests submitted by the
 65 32 department of human services to the United States department
 65 33 of health and human services shall be to apply the provisions
 65 34 of section 239.23 statewide.  If federal waiver approval of
 65 35 the provisions is granted, the department of human services
 66  1 shall implement the provisions in accordance with the federal
 66  2 approval.  If an approved waiver is in conflict with a
 66  3 provision of state law, the waiver provision shall apply and
 66  4 the department shall propose an amendment to resolve the
 66  5 conflict.  The proposed amendment shall be submitted in
 66  6 accordance with the provisions of section 2.16 to the Seventy-
 66  7 seventh General Assembly.
 66  8    3.  The department of human services shall adopt
 66  9 administrative rules pursuant to chapter 17A to implement the
 66 10 provisions of an approved waiver.  If necessary to conform
 66 11 with federal waiver terms and conditions or to efficiently
 66 12 administer the provisions, the rules may apply additional
 66 13 policies and procedures which are consistent with the
 66 14 provisions of the approved waiver.
 66 15    4.  The effective date of a waiver requested under this
 66 16 section which is granted by the federal government shall be
 66 17 established by rule but shall not be earlier than July 1,
 66 18 1997.  If federal law is enacted to permit the state to
 66 19 implement a provision of section 239.23 without a federal
 66 20 waiver, the department shall proceed to implement the
 66 21 provisions within the time frame specified in this subsection.
 66 22    Sec. 49.  EMERGENCY RULES.  If specifically authorized by a
 66 23 provision of this Act, the department of human services or the
 66 24 mental health and mental retardation commission may adopt
 66 25 administrative rules under section 17A.4, subsection 2, and
 66 26 section 17A.5, subsection 2, paragraph "b", to implement the
 66 27 provisions and the rules shall become effective immediately
 66 28 upon filing, unless the effective date is delayed by the
 66 29 administrative rules review committee, notwithstanding section
 66 30 17A.4, subsection 5, and section 17A.8, subsection 9, or a
 66 31 later effective date is specified in the rules.  Any rules
 66 32 adopted in accordance with this section shall not take effect
 66 33 before the rules are reviewed by the administrative rules
 66 34 review committee.  Any rules adopted in accordance with the
 66 35 provisions of this section shall also be published as notice
 67  1 of intended action as provided in section 17A.4.
 67  2    Sec. 50.  EFFECTIVE DATE.  The following provisions of this
 67  3 Act, being deemed of immediate importance, take effect upon
 67  4 enactment:
 67  5    1.  Section 4, subsection 2, relating to the mental health
 67  6 managed care program.
 67  7    2.  Section 6, subsection 13, relating to moneys
 67  8 appropriated in 1996 Iowa Acts, House File 2114.
 67  9    3.  Section 10, subsection 18, relating to expenditure of
 67 10 federal funds for child and family services.
 67 11    4.  Section 27, relating to appropriations reductions.  
 67 12 SF 2442
 67 13 pf/cc/26
     

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