§ 398-A — Standards of payment for foster care

§ 398-a. Standards of payment for foster care. (1) For purposes of\nthis section, notwithstanding any other provisions of law, the term\nfoster child shall mean a person who is cared for away from his or her\nhome under conditions prescribed by regulations of the department and\nwho is: (a) under the age of eighteen years, (b) under the age of\ntwenty-one years if a student attending a school, college or university\nor regularly attending a course of vocational or technical training\ndesigned to fit him or her for gainful employment or (c) between the\nages of eighteen and twenty-one who lacks the skills or ability to live\nindependently and consents to continue in care.\n * (2) The office of children and family services shall promulgate,\nsubject to consultation with appropriate state agencies, the approval of\nthe director of the budget and certification to the chairmen of the\nsenate finance and assembly ways and means committees, regulations\nestablishing standards of payment for care provided foster children when\nthe care of such children is subject to public financial support, when\nsuch care is provided by relatives, authorized agencies, family boarding\nhomes, or state agencies. Such standards of payment shall include the\ncare required to be provided for foster children and the cost of such\ncare. When the office of children and family services has established\nsuch standards, reimbursement under subdivision two of section one\nhundred fifty-three-k of this chapter, for the care of foster children\nshall be limited in accordance with such standards.\n * NB Effective until June 30, 2027\n * (2) The department shall promulgate, subject to consultation with\nappropriate state agencies, the approval of the director of the budget\nand certification to the chairmen of the senate finance and assembly\nways and means committees, regulations establishing standards of payment\nfor care provided foster children when the care of such children is\nsubject to public financial support, when such care is provided by\nrelatives, authorized agencies, family boarding homes, or state\nagencies. Such standards of payment shall include the care required to\nbe provided for the foster child and the cost of such care. When the\ndepartment has established such standards, reimbursement under section\none hundred fifty-three of this chapter, for the care of foster children\nshall be limited in accordance with such standards.\n * NB Effective June 30, 2027\n (2-a) Those social services districts that as of January first, two\nthousand five were paying at least one hundred percent of the applicable\nrates published by the office of children and family services for the\ntwo thousand four--two thousand five rate year for care provided to\nfoster children in institutions, group residences, group homes and\nagency boarding homes and/or the applicable administrative/services\nrates published by the office for the operations of authorized agencies\nfor care provided to foster children in therapeutic, special needs and\nemergency foster boarding homes must pay for the two thousand five--two\nthousand six rate year and for each subsequent rate year thereafter at\nleast one hundred percent of the applicable rates published by the\noffice for that rate year. Those social services districts that as of\nJanuary first, two thousand five were paying less than the applicable\nrates published by the office for the two thousand four--two thousand\nfive rate year for care provided to foster children in institutions,\ngroup residences, group homes and agency boarding homes and/or the\napplicable administrative/services rates published by the office for the\noperations of authorized agencies for care provided to foster children\nin therapeutic, special needs and emergency foster boarding homes must\nincrease their rates of payment so that: effective July first, two\nthousand five, the difference between the percentage of the applicable\nrates published by the office for the two thousand five--two thousand\nsix rate year and the rates such districts are paying is at least\ntwo-thirds less than the difference between the percentage of the\napplicable rates published by the office for the two thousand four--two\nthousand five rate year and the rates that such districts were paying\nfor such programs on January first, two thousand five; and effective\nJuly first, two thousand six for the two thousand six--two thousand\nseven rate year and for each subsequent year thereafter all social\nservices districts shall pay at least one hundred percent of the\napplicable rates published by the office for the applicable rate year.\n (2-b) Payments made directly by social services districts to foster\nboarding homes for foster care pursuant to this section may be made by\ndirect deposit or debit card, as elected by the recipient, and\nadministered electronically, and in accordance with such guidelines as\nmay be set forth by regulation of the office of children and family\nservices. The office of children and family services may enter into\ncontracts on behalf of social services districts for such direct deposit\nor debit card services in accordance with section twenty-one-a of this\nchapter.\n (2-c) Those social services districts that as of July first, two\nthousand twenty-two were paying at least one hundred percent of the\napplicable rates published by the office of children and family services\nfor the two thousand twenty-two--two thousand twenty-three rate year for\ncare provided to foster children in regular, therapeutic, special needs,\nand emergency foster boarding homes shall pay for the two thousand\ntwenty-two--two thousand twenty-three rate year and for each subsequent\nrate year thereafter at least one hundred percent of the applicable\nrates published by the office of children and family services for that\nrate year. Those social services districts that as of July first, two\nthousand twenty-two were paying less than the applicable rates published\nby the office of children and family services for the two thousand\ntwenty-two--two thousand twenty-three rate year for care provided to\nfoster children in regular, therapeutic, special needs and emergency\nfoster boarding homes shall increase their rates of payment so that:\neffective July first, two thousand twenty-two the difference between the\npercentage of the applicable rates published by the office of children\nand family services for the two thousand twenty-two--two thousand\ntwenty-three rate year and the rates such districts are paying is at\nleast one-half less than the difference between the percentage of the\napplicable rates published by the office of children and family services\nfor the two thousand twenty-two--two thousand twenty-three rate year and\nthe rates that such districts were paying for such programs on July\nfirst, two thousand twenty-two; and effective July first, two thousand\ntwenty-three for the two thousand twenty-three--two thousand twenty-four\nrate year and for each subsequent year thereafter all social services\ndistricts shall pay at least one hundred percent of the applicable rates\npublished by the office of children and family services for the\napplicable rate year.\n (3) If the commissioner finds that a social services district or a\ncity containing a social services district has adopted regulations\nestablishing standards of payment for care provided foster children by\nrelatives, authorized agencies or family boarding homes, when the care\nof such children is subject to public financial support, which standards\nare substantially equivalent to those promulgated by the department,\nsuch department standards shall not be applicable in such district or\ncity.\n (4) If and so long as federal aid is available therefor and subject to\nthe approval of the director of the budget, the department is authorized\nto conduct a three year demonstration project to test the effectiveness\nof establishing capitated rates for foster care. The demonstration\nproject shall be entitled the homerebuilders demonstration project. The\ngoal of the project shall be to demonstrate how innovative methods to\nfund foster care programs may result in the discharge of children from\nfoster care to suitable, permanent homes in a more timely manner, at no\nadditional costs to state and local governments, through service\ncontinuity, intensified discharge planning, pre-adoption services,\nafter-care services and/or post-adoption services. Notwithstanding any\ninconsistent provision of law, in order to implement a demonstration\nproject relating to the effectiveness of establishing capitated rates\nfor foster care, the department may waive provisions set forth in: (a)\nsection one hundred fifty-three and this section, with regard to\nlimitations on capitated reimbursement to a social services district for\nafter-care or post-adoption services to children and families\nparticipating in the homerebuilders demonstration project, where the\nchild is no longer in the care and custody or custody and guardianship\nof the local commissioner of social services; and (b) subparagraph (ii)\nof paragraph (e) of subdivision five of section four hundred nine-a of\nthis title, with regard to limitations on reimbursement for intensive\nhome based family preservation services to children participating in the\nhomerebuilders demonstration project who are in the care and custody or\ncustody and guardianship of a local commissioner of social services; and\n(c) the regulations promulgated implementing such provisions of law. The\nauthority of the department to waive such provisions shall be limited to\nthe purpose of implementing such demonstration project and shall expire\nwith the completion of the demonstration project, unless otherwise\nauthorized by law. The department shall report to the governor and the\nlegislature on the status of the homerebuilders demonstration project at\nleast annually after its commencement and shall submit a final report\nthereon to the governor and the legislature no later than July first,\nnineteen hundred ninety-seven. Such final report shall set forth the\nfindings of the homerebuilders demonstration project and any\nrecommendations for statutory or regulatory changes.\n (5) (a) The office of children and family services shall establish,\nsubject to consultation with appropriate state agencies, the approval of\nthe director of the budget and federal approval, standards of payment\nfor the capital costs of approved projects for residential institutions\nfor children which enter into a lease, sublease or other agreement with\nthe dormitory authority pursuant to subdivision forty of section sixteen\nhundred eighty of the public authorities law. The maintenance rate\nestablished by the commissioner of the office of children and family\nservices for such residential institutions for children shall be\nestablished in two parts, one part of which will be the capital\nfinancing add on rate, which shall be the cost per child of the annual\npayment pursuant to such lease, sublease or other agreement. The\napplicable social services district or school district responsible for\nthe maintenance cost of a child placed in such residential institution\nfor children, must agree to pay and is responsible for paying the\nresidential institution for children one hundred percent of the capital\nfinancing add-on rate for each such child placed in such institution. To\nthe extent permissible under federal law and regulation, the capital\nfinancing add-on rate shall not be subject to any cost screens, caps or\nparameters limiting or reducing the amount of such cost required by this\nsubdivision.\n (b) The expenditures made by a social services district or school\ndistrict for the capital financing add on rate for children placed by a\ncommittee on special education of a school district in a residential\ninstitution for children which has a lease, sublease or other agreement\nwith the dormitory authority pursuant to subdivision forty of section\nsixteen hundred eighty of the public authorities law, shall be subject\nto state reimbursement in accordance with subdivision ten of section one\nhundred fifty-three of this chapter or article eighty-nine of the\neducation law, as applicable.\n (c) The expenditures of a social services district for the capital\nfinancing add-on rate for foster children placed in a residential\ninstitution for children which has a lease, sublease or other agreement\nwith the dormitory authority pursuant to subdivision forty of section\nsixteen hundred eighty of the public authorities law shall be subject to\nfifty percent state reimbursement from the office of children and family\nservices, net of any available federal funds, for the portion of the\ncosts that exceed the district's foster care block grant allocation.\n * (6) (a) Any federal paycheck protection program loan forgiveness\nfunding or other extraordinary federal funding, as determined by the\noffice of children and family services, received by an authorized agency\nas defined in subdivision ten of section three hundred seventy-one of\nthis article, to the extent consistent with federal law, shall be\ndisregarded when calculating the maximum state aid rate when such\nfunding is utilized for allowable costs or expenses incurred due to the\nstate of emergency that was declared in executive order two hundred two\non March seventh, two thousand twenty. Allowable costs or expenses shall\ninclude costs incurred due to the pandemic, as allowable pursuant to the\nprogram through which such funding was received or, to the extent\npermitted by federal law, expenses related to offsetting lost revenue\ndue to a reduction in placements that can be directly attributed to the\nnovel coronavirus (COVID-19) pandemic.\n (b) The office of children and family services shall hold harmless the\nprospective maximum state aid rate to the extent that extraordinary\nfederal revenue was disregarded in accordance with paragraph (a) of this\nsubdivision for the two thousand twenty-one--two thousand twenty-two\nrate year and subsequent applicable rate years.\n * NB Repealed April 16, 2026\n