16567. (Added by Stats. 2024, Ch. 46, Sec. 51.)

(a) It is the intent of the Legislature to assess the impacts of the Tiered Rate Structure on children, nonminor dependents, families, placing agencies, and providers. This shall be done through the department providing updates on the ongoing implementation status of the Tiered Rate Structure, including, but not limited to, development of associated contracts, guidance, forms, training and status of technology infrastructure necessary to implement the rates structure, and an automation timeline, as specified below.

(b) As required by this section, to the extent reasonably possible, and if the necessary information is provided to the department by its state, county, and provider partners, the department, in collaboration with the State Department of Health Care Services when necessary, shall provide information to the Legislature on key stages of planning, preparation, and implementation efforts and outcomes associated with the Tiered Rate Structure.

(c) The department shall provide the Legislature, no later than January 10, 2026, with an analysis of the identified needs of children and nonminor dependents in Tier 2, Tier 3, and Tier 3+, the types of services necessary to address those needs, reasonable administration and operational activities necessary for providers to address those needs, and a cost analysis of those services. This cost analysis shall be based on engagement with stakeholders, including, but not limited to providers, current and former foster children and nonminor dependents, relative caregivers, resource families, and county child welfare agencies, which shall occur no later than winter of 2024. The analysis shall include the estimated breadth and duration of needed services, any factors related to the need for additional supervision, and other factors. It is the intent of the Legislature in adopting this subdivision that the rates for children and nonminor dependents in all placement settings, including those receiving services from foster family agencies and short-term residential therapeutic programs, be adequate to ensure the availability of services to children and nonminor dependents who need them.

(d) No later than April 30, 2025, the department shall update the Legislature on the planning progress, with trend data, as appropriate, toward the implementation of the Tiered Rate Structure, which shall include a written status update regarding all of the following:

(1) The Care and Supervision component of the Tiered Rate Structure, which shall include the development of criteria and capacity for placing agencies to timely conduct IP-CANS assessments to fidelity for all children and nonminor dependents in foster care.

(2) The Immediate Needs Program, which shall include an update on working groups to inform the department’s guidance regarding the minimum standards for the program and the requirements, standards, and process by which an immediate needs provider shall be certified by the department.

(3) A summary of findings from the CANS workgroup and fidelity of IP-CANS and the IP-CANS and child and family team completion, including IP-CANS and child and family team timeliness, progress towards implementing shared IP-CANS, and trend data.

(4) The Strengths Building Program, which shall include an update on the request for proposal contract development for Strengths Building Program spending plan managers and the development of working groups to inform the department’s guidance for the Strengths Building Program. The department shall also provide information, informed by working groups that include foster youth with lived experience, caregivers, placing agencies, tribes, and other advocacy organizations, related to strengths building and outcomes, including, but not limited to:

(A) The process by which children and families or nonminor dependents will be supported to select services that meet program standards and guidelines.

(B) A streamlined referral process to a spending plan manager, the scope of duties of the spending plan manager, and the process by which disputes may be resolved.

(C) A process to resolve disputes over the choice of strengths building activities, and questions about appropriateness of activities.

(5) A written report on all of the following:

(A) The outcome of engagement with counties, tribes, and stakeholders to ensure the latent class analysis and Tiered Rate Structure reflect the needs and supports for children, nonminor dependents, and their caregivers.

(B) Any planned updates to the IP-CANS to ensure the full needs and strengths of children, nonminor dependents, and caregivers are considered in the statistical analysis and rate setting, including for youth in foster care supervised by probation.

(C) How the department and the State Department of Health Care Services will collaborate on use of the IP-CANS assessment tool to minimize duplication of assessments and increase data sharing across local agencies.

(D) Workload and cost impacts to the state and counties.

(e) Beginning October 2025, and on a quarterly basis thereafter until the implementation date of the Tiered Rate Structure, the department shall update the Legislature on the preparation progress toward the implementation of the Tiered Rate Structure, with trend data, as appropriate. The updates provided in April and October shall be in writing. Each update shall include, but need not be limited to, updates from the previous update period and the status of all of the following:

(1) Implementation status of the Immediate Needs Program standards to be developed by the department and the certification of immediate needs providers.

(2) When available, outcome measures for the Immediate Needs Program, including changes in the IP-CANS assessments and tiers for children and nonminor dependents over time.

(3) The status of contracts with Strengths Building Program spending plan managers.

(4) An update on all of the following:

(A) The outcome of engagement with counties, tribes and stakeholders to ensure the latent class analysis and Tiered Rate Structure reflect the needs and supports for children and their caregivers.

(B) Any planned updates to the IP-CANS to ensure the full needs and strengths of children, youth and caregivers are considered in the statistical analysis and rate setting, including for probation youth.

(E) Automation activities, milestones met, and updated timelines toward implementation readiness.

(f) Beginning October 2027, and on a quarterly basis thereafter, for 18 months from the implementation date of the Tiered Rate Structure, the department shall update the Legislature on the progress of implementation of the Tiered Rate Structure, with trend data, as appropriate. After 18 months from the implementation date of the Tiered Rate Structure, updates shall be provided only on a biannual basis. Updates provided in April and October shall be in writing. Each update shall include, but need not be limited to, updates from the previous update period and the status of all of the following:

(1) Identified changes to the number of children in Tier 1, Tier 2, Tier 3, and Tier 3+, placed in home-based family settings and congregate care following implementation of the Tiered Rate Structure.

(2) Information regarding the utilization of the Immediate Needs Funding, as well as the percentages of timely completion of IP-CANS, and child and family teams for children and nonminor dependents in foster care.

(3) Information regarding the utilization of Strengths Building Funding, including but not limited to, the timeliness with which funds are disbursed, the types of goods, services, activities, and strengths that foster children and nonminor dependents are participating in, the average cost of services, the amount of funding that remains available at the end of each year, and outcome measures reflecting the degree to which the funds are impacting the strengths of children and nonminor dependents in foster care.

(g) (1) This section shall become inoperative on December 1, 2032, and, as of January 1, 2033, is repealed.

(2) It is the intent of the Legislature to review the need for a possible extension of the inoperative date specified in paragraph (1) as it approaches.