AN ACT Relating to dependent children; amending RCW 4.92.130; adding new sections to chapter 74.13 RCW; adding a new section to chapter 13.32A RCW; adding a new section to chapter 13.34 RCW; adding a new section to chapter 74.13 RCW; adding a new section to chapter 74.14B RCW; creating new sections; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that the foster care system plays an important role in preserving families and giving consistent and nurturing care to children placed in its care. The legislature further finds that foster parents play an integral and important role in the system and particularly in the child's chances for the earliest possible reunification with his or her family.

NEW SECTION. Sec. 2. (1) Preservice training is recognized as a valuable tool to reduce placement disruptions, the length of time children are in care, and foster parent turnover rates. Preservice training also assists potential foster parents in making their final decisions about foster parenting and assists social service agencies in obtaining information about whether to approve potential foster parents.

(2) Foster parent preservice training shall include information about the potential impact of placement on foster children; social service agency administrative processes; the requirements, responsibilities, expectations, and skills needed to be a foster parent; attachment, separation, and loss issues faced by birth parents, foster children, and foster parents; child management and discipline; birth family relationships; and helping children leave foster care. Preservice training shall assist applicants in making informed decisions about whether they want to be foster parents. Preservice training shall be designed to enable the agency to assess the ability, readiness, and appropriateness of families to be foster parents. As a decision tool, effective preservice training provides potential foster parents with enough information to make an appropriate decision, affords potential foster parents an opportunity to discuss their decision with others and consider its implications for their family, clarifies foster family expectations, presents a realistic picture of what foster parenting involves, and allows potential foster parents to consider and explore the different types of children they might serve.

(3) Preservice training shall be completed prior to the issuance of a foster care license, except that the department may, on a case by case basis, issue a written waiver that allows the foster parent to complete the training after licensure, so long as the training is completed within ninety days following licensure.

NEW SECTION. Sec. 3. If specific funding for the purposes of section 2 of this act, referencing section 2 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 2 of this act shall be null and void.

NEW SECTION. Sec. 4. Regular on-site monitoring of foster homes to assure quality care improves care provided to children in family foster care. An on-site monitoring program shall be established by the department to assure quality care and regularly identify problem areas. The department shall report to the legislature by June 1 of each year, beginning with June 1, 1991, the results of the monitoring, including identified problem areas, and make policy recommendations to improve the quality of foster care based on the results of the monitoring. Monitoring shall be done by the department on a random sample basis of no less than ten percent of the total licensed family foster homes licensed by the department on July 1 of each year.

NEW SECTION. Sec. 5. If specific funding for the purposes of section 4 of this act, referencing section 4 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 4 of this act shall be null and void.

NEW SECTION. Sec. 6. The legislature finds that regular and ongoing program review of child protective services, child welfare services, and foster care is essential to agencies and the legislature in making informed recommendations and decisions regarding policy in the delivery of services to children and their families. The department of social and health services shall contract, through the request for proposal process, with an independent qualified organization for a comprehensive evaluation of these programs. The evaluation shall be based on findings secured through a generally accepted audit procedure based on a statistically significant state-wide sampling of data. The department shall cooperate with the contractor to meet the requirements of this section.

NEW SECTION. Sec. 7. If specific funding for the purposes of section 6 of this act, referencing section 6 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 6 of this act shall be null and void.

NEW SECTION. Sec. 8. The legislature recognizes the need for temporary short-term relief for foster parents who care for children with emotional, mental, and physical handicaps. For purposes of this section, respite care means appropriate, temporary, short-term care for these foster children placed with licensed foster parents. The purpose of this care is to give the foster parents temporary relief from the stresses associated with the care of these foster children. The department shall design a program of respite care that will minimize disruptions to the child and will serve foster parents within these priorities, based on input from foster parents, foster parent associations, and reliable research if available.

NEW SECTION. Sec. 9. If specific funding for the purposes of section 8 of this act, referencing section 8 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 8 of this act shall be null and void.

NEW SECTION. Sec. 10. (1) Except as provided in RCW 70.24.105, whenever a child is placed in out-of-home care by the department or a child-placing agency, the department or agency may share information about the child and the child's family with the care provider and may consult with the care provider regarding the child's case plan.

(2) Any person who receives information about a child or a child's family pursuant to this section shall keep the information confidential and shall not further disclose or disseminate the information except as authorized by law.

(3) Nothing in this section shall be construed to limit the authority of the department or child-placing agencies to disclose client information or to maintain client confidentiality as provided by law.

NEW SECTION. Sec. 11. To provide stability to children in out-of-home care, placement selection shall be made with a view toward the fewest possible placements for each child. If possible, the initial placement shall be viewed as the only placement for the child. The use of short-term interim placements of thirty days or less to protect the child's health or safety while the placement of choice is being arranged is not a violation of this principle.

NEW SECTION. Sec. 12. (1) Whenever a child has been placed in a foster family home by the department or a child-placing agency and the child has thereafter resided in the home for at least ninety consecutive days, the department or child-placing agency shall notify the foster family at least five days prior to moving the child to another placement, unless:

(a) A court order has been entered requiring an immediate change in placement;

(b) The child is being returned home;

(d) The child is residing in a receiving home or a group home.

(2) If the child has resided in a foster family for less than ninety days or if, due to one or more of the circumstances in subsection (1) of this section, it is not possible to give five days' notification, the department or child-placing agency shall notify the foster family of proposed placement changes as soon as reasonably possible.

(3) This section is intended solely to assist in minimizing disruption to the child in changing foster care placements. Nothing in this section shall be construed to require that a court hearing be held prior to changing a child's foster care placement nor to create any substantive custody rights in the foster parents.

NEW SECTION. Sec. 13. Adequate foster parent training has been identified as directly associated with increasing the length of time foster parents are willing to provide foster care and reducing the number of placement disruptions for children. Placement disruptions can be harmful to children by denying them consistent and nurturing support. Foster parents have expressed the desire to receive training in addition to the foster parent SCOPE training currently offered. Foster parents who care for more demanding children, such as children with severe emotional, mental, or physical handicaps, would especially benefit from additional training. The department shall develop additional training for foster parents that focuses on skills to assist foster parents in caring for emotionally, mentally, or physically handicapped children.

NEW SECTION. Sec. 14. If specific funding for the purposes of section 13 of this act, referencing section 13 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 13 of this act shall be null and void.

NEW SECTION. Sec. 15. The legislature finds that during the fiscal years 1987 to 1989 the number of children in foster care has risen by 14.3 percent. At the same time there has been a 31 percent turnover rate in foster homes because many foster parents have declined to continue to care for foster children. This situation has caused a dangerously critical shortage of foster homes.

The department of social and health services shall develop and implement a project to recruit more foster homes and adoptive homes for special needs children by developing a request for proposal to licensed private foster care, licensed adoption agencies, and other organizations qualified to provide this service.

The project shall consist of one state-wide administrator of recruitment programs, and one or more licensed foster care or adoption agency contracts in each of the six departmental regions. These contracts shall enhance currently provided services and may not replace services currently funded by the agencies. No more than sixty thousand dollars may be spent annually to fund the administrator position.

The agencies shall recruit foster care homes and adoptive homes for children classified as special needs children under chapter 74.08 RCW. The agencies shall utilize their own network of contacts and shall also develop programs similar to those used effectively in other states. The department shall expand the foster-adopt program state-wide to encourage stable placements for foster children for whom permanent out-of-home placement is a likelihood. The department shall carefully consider existing programs to eliminate duplication of services.

The department shall assist the private contractors by providing printing services for informational brochures and other necessary recruitment materials. No more than fifty thousand dollars of the funds provided for this section may be expended annually for recruitment materials.

NEW SECTION. Sec. 16. A new section is added to chapter 74.13 RCW to read as follows:

(1) The department shall establish a state-wide program to manage health services for children in foster care. Services include medical and developmental services already provided subject to current statutes and available resources, and shall provide children in foster care with:

(a) Health screening, supervision, and continuity of care;

(b) Developmental screening;

(d) Child centered management plans designed to address specific therapeutic rehabilitative and preventative needs. Case management shall be used to ensure comprehensiveness and continuity of care.

(2) Strategies for reimbursements shall be developed which utilize prospective payment or capitation formulas.

NEW SECTION. Sec. 17. The department of social and health services shall develop and implement a survey tool to provide information to the legislature regarding the specific reasons foster parents voluntarily or involuntarily terminate their service to the foster parent system. The tool shall be implemented by July 1, 1990. The survey shall cover a period of one year and a final report shall be made to the legislature by December 1991.

NEW SECTION. Sec. 18. If specific funding for the purposes of sections 15 and 17 of this act, referencing sections 15 and 17 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, sections 15 and 17 of this act shall be null and void.

NEW SECTION. Sec. 19. The average basic rate of reimbursement to foster parents for children placed in their care often does not cover the total cost of care. Studies have identified that increasing rates is directly related to increasing the number of available foster homes and positively influences the decision of foster parents to provide care.

NEW SECTION. Sec. 20. If specific funding for the purposes of section 19 of this act, referencing section 19 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 19 of this act shall be null and void.

NEW SECTION. Sec. 21. Private child placement agencies offer a valuable service to the state. Caseloads are limited to no more than twenty-five per caseworker allowing the agencies to provide quality services. Child placement agencies are funded by a variety of public and private sources. Over the last several years, administration costs have risen in both public and private agencies.

NEW SECTION. Sec. 22. If specific funding for the purposes of section 21 of this act, referencing section 21 of this act by bill and section number, is not provided by June 30, 1990, in the omnibus appropriations act, section 21 of this act shall be null and void.

NEW SECTION. Sec. 23. Foster parents are responsible for the protection, care, supervision, and nurturing of the child in placement. As an integral part of the foster care team, foster parents shall, if they desire to: Participate in the development of the service plan for the child and the child's family; assist in family visitation, including monitoring; and model effective parenting behavior for the natural family.

NEW SECTION. Sec. 24. A new section is added to chapter 13.32A RCW to read as follows:

In an attempt to minimize the inherent intrusion in the lives of families involved in the foster care system and to maintain parental authority where appropriate, the department, absent good cause, shall follow the wishes of the natural parent regarding the placement of the child. Preferences such as family constellation, ethnicity, and religion shall be given consideration when matching children to foster homes.

NEW SECTION. Sec. 25. A new section is added to chapter 13.34 RCW to read as follows:

NEW SECTION. Sec. 26. Sections 1, 2, 4, 6, 8, 10 through 13, and 15 of this act are each added to chapter 74.13 RCW.

NEW SECTION. Sec. 27. This act shall take effect July 1, 1990, however the secretary may immediately take any steps necessary to ensure implementation of section 17 of this act on July 1, 1990.

NEW SECTION. Sec. 28. The legislature recognizes the unique risks that foster parents face in taking children into their care. Third parties may file claims against foster parents for property losses and damage caused by foster children, nearly all of whom "act out" their emotional pain. The legislature finds that some potential foster parents are unwilling to subject themselves to such liability without insurance protection. The legislature further finds that to encourage those people to serve as foster parents, it is necessary to assure that such insurance is available to them.

Sec. 29. Section 7, chapter 159, Laws of 1963 as last amended by section 4, chapter 419, Laws of 1989 and RCW 4.92.130 are each amended to read as follows:

A liability account in the custody of the treasurer is hereby created as a nonappropriated account to be used solely and exclusively for the payment of liability settlements and judgments against the state under 42 U.S.C. Sec. 1981 et seq. or for the tortious conduct of its officers, employees, and volunteers; or for payment of liability settlements and judgments against foster parents licensed under chapter 74.15 RCW.

(1) The purpose of the liability account is to: (a) Expeditiously pay legal liabilities of the state and foster parents resulting from tortious conduct; (b) promote risk control through a cost allocation system which recognizes agency loss experience, levels of self-retention, and levels of risk exposure; and (c) establish an actuarially sound system to pay incurred losses, within defined limits.

(2) The liability account shall be used to pay claims for injury and property damages exclusive of legal defense costs and agency-retained expenses otherwise budgeted.

(3) No money shall be paid from the liability account unless all proceeds available to the claimant from any valid and collectible liability insurance shall have been exhausted and unless:

(a) The claim shall have been reduced to final judgment in a court of competent jurisdiction; or

(b) The claim has been approved for payment.

(4) Earnings on the account's assets shall be credited to the account, notwithstanding RCW 43.84.090.

(5) The liability account shall be financed through annual premiums assessed to state agencies, based on sound actuarial principles, and shall be for liability coverage in excess of agency-budgeted self-retention levels.

(6) Annual premium levels shall be determined by the risk manager, with the consultation and advice of the risk management advisory committee and concurrence from the office of financial management. An actuarial study shall be conducted to assist in determining the appropriate level of funding.

(7) Disbursements from the liability account shall be made to the claimant, or to the clerk of the court for judgments, upon written request to the state treasurer from the risk manager.

(8) The director of the office of financial management may direct agencies to transfer moneys from other funds and accounts to the liability account if premiums are delinquent.

(9) The liability account shall not exceed fifty percent of the actuarial value of the outstanding liability as determined annually by the office of risk management. If the account exceeds the maximum amount specified in this section, premiums may be adjusted by the office of risk management in order to maintain the account balance at the maximum limits. If, after adjustment of premiums, the account balance remains above the limits specified, the excess amount will be prorated back to the appropriate funds.

NEW SECTION. Sec. 30. A new section is added to chapter 74.14B RCW to read as follows:

(1) If sufficient funding to cover foster parents' liability is not provided for in appropriations for the liability account in RCW 4.92.130, the secretary of social and health services shall provide liability insurance to foster parents licensed under chapter 74.15 RCW. Unless the foster parent has professional liability insurance which shall be primary to the insurance provided herein, the coverage shall be primary, with no deductible, in an amount not to exceed one million dollars for bodily injury and property damage alleged to have occurred within their capacity as foster parents. However, such insurance may not cover illegal conduct, gross negligence, or bad faith acts taken in providing foster care on the part of the foster parents.

(2) The secretary of social and health services may purchase the insurance required in subsection (1) of this section or may choose a self-insurance method.

(3) Nothing in this section is intended to modify the foster parent reimbursement plan in place on the effective date of this act.

(4) The liability insurance program shall be available by July 1, 1990.

NEW SECTION. Sec. 31. If specific funding for the purpose of sections 28, 29, and 30 of this act, referencing sections 28, 29, and 30 of this act by bill and section numbers, is not provided by June 30, 1990, in the omnibus appropriations act, sections 28, 29, and 30 of this act shall be null and void.