2023 New York Laws › SOS - Social Services › Article 6 - Children › Title 2 - Powers and Duties of Public Welfare Officials › 398-A - Standards of Payment for Foster Care.

§  398-a.  Standards  of  payment for foster care. (1) For purposes of
this section, notwithstanding any other  provisions  of  law,  the  term
foster  child  shall mean a person who is cared for away from his or her
home under conditions prescribed by regulations of  the  department  and
who  is:
(a)  under  the  age of eighteen years, (b) under the age of
twenty-one years if a student attending a school, college or  university
or  regularly  attending  a  course  of vocational or technical training
designed to fit him or her for gainful employment  or  (c)  between  the
ages  of eighteen and twenty-one who lacks the skills or ability to live
independently and consents to continue in care.
* (2) The office of children and  family  services  shall  promulgate,
subject to consultation with appropriate state agencies, the approval of
the  director  of  the  budget  and certification to the chairmen of the
senate finance and  assembly  ways  and  means  committees,  regulations
establishing standards of payment for care provided foster children when
the  care  of such children is subject to public financial support, when
such care is provided by relatives, authorized agencies, family boarding
homes, or state agencies. Such standards of payment  shall  include  the
care  required  to  be provided for foster children and the cost of such
care. When the office of children and family  services  has  established
such  standards,  reimbursement  under  subdivision  two  of section one
hundred fifty-three-k of this chapter, for the care of  foster  children
shall be limited in accordance with such standards.
* NB Effective until June 30, 2027
* (2)  The  department  shall promulgate, subject to consultation with
appropriate state agencies, the approval of the director of  the  budget
and  certification  to  the  chairmen of the senate finance and assembly
ways and means committees, regulations establishing standards of payment
for care provided foster children when the  care  of  such  children  is
subject  to  public  financial  support,  when  such care is provided by
relatives,  authorized  agencies,  family  boarding  homes,   or   state
agencies.  Such  standards of payment shall include the care required to
be provided for the foster child and the cost of  such  care.  When  the
department  has  established such standards, reimbursement under section
one hundred fifty-three of this chapter, for the care of foster children
shall be limited in accordance with such standards.
* NB Effective June 30, 2027
(2-a) Those social services districts that as of  January  first,  two
thousand five were paying at least one hundred percent of the applicable
rates  published  by  the office of children and family services for the
two thousand four--two thousand five rate  year  for  care  provided  to
foster  children  in  institutions,  group  residences,  group homes and
agency boarding  homes  and/or  the  applicable  administrative/services
rates  published by the office for the operations of authorized agencies
for care provided to foster children in therapeutic, special  needs  and
emergency  foster boarding homes must pay for the two thousand five--two
thousand six rate year and for each subsequent rate year  thereafter  at
least  one  hundred  percent  of  the  applicable rates published by the
office for that rate year. Those social services districts  that  as  of
January  first,  two  thousand five were paying less than the applicable
rates published by the office for the two  thousand  four--two  thousand
five  rate  year  for  care provided to foster children in institutions,
group residences, group homes  and  agency  boarding  homes  and/or  the
applicable administrative/services rates published by the office for the
operations  of  authorized agencies for care provided to foster children
in therapeutic, special needs and emergency foster boarding  homes  must
increase  their  rates  of  payment  so  that: effective July first, two
thousand five, the difference between the percentage of  the  applicable

rates  published  by  the office for the two thousand five--two thousand
six rate year and the rates  such  districts  are  paying  is  at  least
two-thirds  less  than  the  difference  between  the  percentage of the
applicable  rates published by the office for the two thousand four--two
thousand five rate year and the rates that such  districts  were  paying
for  such  programs  on  January first, two thousand five; and effective
July first, two thousand six for  the  two  thousand  six--two  thousand
seven  rate  year  and  for  each  subsequent year thereafter all social
services districts shall  pay  at  least  one  hundred  percent  of  the
applicable rates published by the office for the applicable rate year.
(2-b)  Payments  made  directly by social services districts to foster
boarding homes for foster care pursuant to this section may be  made  by
direct  deposit  or  debit  card,  as  elected  by  the  recipient,  and
administered electronically, and in accordance with such  guidelines  as
may  be  set  forth  by  regulation of the office of children and family
services. The office of children and  family  services  may  enter  into
contracts on behalf of social services districts for such direct deposit
or  debit  card services in accordance with section twenty-one-a of this
chapter.
(2-c) Those social services districts  that  as  of  July  first,  two
thousand  twenty-two  were  paying  at  least one hundred percent of the
applicable rates published by the office of children and family services
for the two thousand twenty-two--two thousand twenty-three rate year for
care provided to foster children in regular, therapeutic, special needs,
and emergency foster boarding homes  shall  pay  for  the  two  thousand
twenty-two--two  thousand twenty-three rate year and for each subsequent
rate year thereafter at least one  hundred  percent  of  the  applicable
rates  published  by the office of children and family services for that
rate year. Those social services districts that as of  July  first,  two
thousand twenty-two were paying less than the applicable rates published
by  the  office  of  children  and  family services for the two thousand
twenty-two--two thousand twenty-three rate year  for  care  provided  to
foster  children  in  regular,  therapeutic, special needs and emergency
foster boarding homes shall increase their rates  of  payment  so  that:
effective July first, two thousand twenty-two the difference between the
percentage  of  the applicable rates published by the office of children
and family  services  for  the  two  thousand  twenty-two--two  thousand
twenty-three  rate  year  and  the rates such districts are paying is at
least one-half less than the difference between the  percentage  of  the
applicable rates published by the office of children and family services
for the two thousand twenty-two--two thousand twenty-three rate year and
the  rates  that  such  districts  were paying for such programs on July
first, two thousand twenty-two; and effective July first,  two  thousand
twenty-three for the two thousand twenty-three--two thousand twenty-four
rate  year  and  for each subsequent year thereafter all social services
districts shall pay at least one hundred percent of the applicable rates
published by  the  office  of  children  and  family  services  for  the
applicable rate year.
(3)  If  the  commissioner  finds that a social services district or a
city containing a  social  services  district  has  adopted  regulations
establishing  standards  of payment for care provided foster children by
relatives, authorized agencies or family boarding homes, when  the  care
of such children is subject to public financial support, which standards
are  substantially  equivalent  to  those promulgated by the department,
such department standards shall not be applicable in  such  district  or
city.
(4) If and so long as federal aid is available therefor and subject to
the approval of the director of the budget, the department is authorized

to  conduct a three year demonstration project to test the effectiveness
of establishing capitated  rates  for  foster  care.  The  demonstration
project  shall be entitled the homerebuilders demonstration project. The
goal  of  the  project shall be to demonstrate how innovative methods to
fund foster care programs may result in the discharge of  children  from
foster  care to suitable, permanent homes in a more timely manner, at no
additional  costs  to  state  and  local  governments,  through  service
continuity,   intensified  discharge  planning,  pre-adoption  services,
after-care services and/or post-adoption services.  Notwithstanding  any
inconsistent  provision  of  law,  in order to implement a demonstration
project relating to the effectiveness of  establishing  capitated  rates
for  foster  care, the department may waive provisions set forth in: (a)
section one  hundred  fifty-three  and  this  section,  with  regard  to
limitations on capitated reimbursement to a social services district for
after-care   or   post-adoption   services   to  children  and  families
participating in the homerebuilders  demonstration  project,  where  the
child  is  no longer in the care and custody or custody and guardianship
of the local commissioner of social services; and (b) subparagraph  (ii)
of  paragraph  (e) of subdivision five of section four hundred nine-a of
this title, with regard to limitations on  reimbursement  for  intensive
home based family preservation services to children participating in the
homerebuilders  demonstration project who are in the care and custody or
custody and guardianship of a local commissioner of social services; and
(c) the regulations promulgated implementing such provisions of law. The
authority of the department to waive such provisions shall be limited to
the purpose of implementing such demonstration project and shall  expire
with  the  completion  of  the  demonstration  project, unless otherwise
authorized by law. The department shall report to the governor  and  the
legislature on the status of the homerebuilders demonstration project at
least  annually  after  its commencement and shall submit a final report
thereon to the governor and the legislature no later  than  July  first,
nineteen  hundred  ninety-seven.  Such  final report shall set forth the
findings  of  the   homerebuilders   demonstration   project   and   any
recommendations for statutory or regulatory changes.
(5)  (a)  The  office of children and family services shall establish,
subject to consultation with appropriate state agencies, the approval of
the director of the budget and federal approval,  standards  of  payment
for  the capital costs of approved projects for residential institutions
for children which enter into a lease, sublease or other agreement  with
the dormitory authority pursuant to subdivision forty of section sixteen
hundred  eighty  of  the  public  authorities  law. The maintenance rate
established by the commissioner of the office  of  children  and  family
services  for  such  residential  institutions  for  children  shall  be
established in two  parts,  one  part  of  which  will  be  the  capital
financing  add  on rate, which shall be the cost per child of the annual
payment pursuant  to  such  lease,  sublease  or  other  agreement.  The
applicable  social  services district or school district responsible for
the maintenance cost of a child placed in such  residential  institution
for  children,  must  agree  to  pay  and  is responsible for paying the
residential institution for children one hundred percent of the  capital
financing add-on rate for each such child placed in such institution. To
the  extent  permissible  under  federal law and regulation, the capital
financing add-on rate shall not be subject to any cost screens, caps  or
parameters limiting or reducing the amount of such cost required by this
subdivision.
(b)  The  expenditures  made  by  a social services district or school
district for the capital financing add on rate for children placed by  a
committee  on  special  education  of a school district in a residential

institution for children which has a lease, sublease or other  agreement
with  the  dormitory  authority pursuant to subdivision forty of section
sixteen hundred eighty of the public authorities law, shall  be  subject
to state reimbursement in accordance with subdivision ten of section one
hundred  fifty-three  of  this  chapter  or  article  eighty-nine of the
education law, as applicable.
(c) The expenditures of a social services  district  for  the  capital
financing  add-on  rate  for  foster  children  placed  in a residential
institution for children which has a lease, sublease or other  agreement
with  the  dormitory  authority pursuant to subdivision forty of section
sixteen hundred eighty of the public authorities law shall be subject to
fifty percent state reimbursement from the office of children and family
services, net of any available federal funds, for  the  portion  of  the
costs that exceed the district's foster care block grant allocation.
* (6)  (a)  Any  federal  paycheck protection program loan forgiveness
funding or other extraordinary federal funding,  as  determined  by  the
office of children and family services, received by an authorized agency
as  defined  in  subdivision ten of section three hundred seventy-one of
this article, to the  extent  consistent  with  federal  law,  shall  be
disregarded  when  calculating  the  maximum  state  aid  rate when such
funding is utilized for allowable costs or expenses incurred due to  the
state  of emergency that was declared in executive order two hundred two
on March seventh, two thousand twenty. Allowable costs or expenses shall
include costs incurred due to the pandemic, as allowable pursuant to the
program through which such  funding  was  received  or,  to  the  extent
permitted  by  federal  law, expenses related to offsetting lost revenue
due to a reduction in placements that can be directly attributed to  the
novel coronavirus (COVID-19) pandemic.
(b) The office of children and family services shall hold harmless the
prospective  maximum  state  aid  rate  to the extent that extraordinary
federal revenue was disregarded in accordance with paragraph (a) of this
subdivision for the two  thousand  twenty-one--two  thousand  twenty-two
rate year and subsequent applicable rate years.
* NB Repealed April 16, 2026