Authorizes an adult family home to provide certain services to a nonresident individual, upon the request of the nonresident individual, and prohibits an adult family home from directly or indirectly providing certain other services.

Allows the department of social and health services to: (1) Authorize a one-time waiver of certain licensing and processing fees if the department determines that an adult family home is being relicensed because of exceptional circumstances and that to require full payment of the licensing and processing fees would present a hardship to the applicant; and

(2) Negotiate with adult family homes to establish a capital add-on rate for those homes contracting with the department that have a medicaid occupancy percentage of sixty percent or greater.