May 8, 2008, Introduced by Reps. DeRoche, Spade, Schuitmaker, LeBlanc, Hammel, Hammon, Gonzales, Shaffer, Palsrok, Polidori, Brown, Lahti, Gillard, Hildenbrand, Proos, Hoogendyk, Hansen, Horn, LaJoy, David Law, Brandenburg, Moore, Rocca, Caswell, Casperson, Green, Leland, Marleau, Stakoe, Cushingberry, Dean, Espinoza, Elsenheimer, Stahl, Pastor, Meltzer, Garfield, Booher, Knollenberg, Agema, Calley, Moss, Pavlov, Nitz, Emmons, Pearce, Ball, Opsommer, Moolenaar, Steil, Rick Jones, Mayes, Sheltrown, Wenke, Gaffney, Jackson, Virgil Smith, Bauer and Cheeks and referred to the Committee on Families and Children's Services.
A bill to establish the foster care trust fund in the
department of management and budget; to establish the state foster
care advisory board; to prescribe the powers and duties of the
state foster care advisory board; to provide for the distribution
of the money from the fund; to prescribe the powers and duties of
certain agencies and officials; and to provide for appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"foster care trust fund act".
Sec. 2. As used in this act:
(a) "Advisory board" means the state foster care advisory
board created in section 3.
(b) "Children's ombudsman office" means the children's
ombudsman office created in section 3 of the children's ombudsman
act, 1994 PA 204, MCL 722.923.
(c) "Department" means the department of management and
budget.
(d) "Fund" means the foster care trust fund created in section
5.
Sec. 3. (1) The state foster care advisory board is created
within the children's ombudsman office, which is within the
department of management and budget. The advisory board shall
exercise its powers and duties independently of the children's
ombudsman except that budget, procurement, and related management
functions shall be performed by the director of the department of
management and budget.
(2) The advisory board shall appoint the executive director of
the advisory board. The executive director shall be a member of the
state classified civil service. The executive director shall hire
all staff required to exercise the powers and carry out the duties
of the advisory board. The advisory board shall approve the number
of staff members hired and their job descriptions.
(3) The advisory board shall be composed of the following
members:
(a) The director of human services, the director of community
health, the superintendent of public instruction, the
superintendent of the Michigan children's institute, and the chief
justice of the Michigan supreme court, or designees authorized to
speak on their behalf.
(b) Eleven public members appointed by the governor with the
advice and consent of the senate. As a group, the public members
shall do all of the following:
(i) Demonstrate knowledge in the area of foster care.
(ii) Be representative of the demographic composition of this
state.
(iii) To the extent practicable, be representative of all of the
following categories: parents, former foster care children, the
business community, the religious community, the legal community,
higher education providers, professional providers of foster care
services, and volunteers in foster care services.
(4) The term of each public member shall be 3 years, except
that of the public members first appointed, 3 shall serve for 3
years, 3 for 2 years, and 4 for 1 year. A public member shall not
serve more than 2 consecutive terms whether partial or full. A
vacancy shall be filled for the balance of the unexpired term in
the same manner as the original appointment.
(5) The governor shall designate a chairperson of the advisory
board from among the public members. The chairperson shall serve in
that position at the pleasure of the governor. The advisory board
may elect other officers and committees as it considers
appropriate.
(6) The actual and necessary per diem compensation and the
schedule for reimbursement of expenses for the public members of
the advisory board shall be the same as is established annually by
the legislature for similar boards that are reimbursed from the
general fund. The compensation and reimbursement, executive
director and staff salaries, and all actual and necessary operating
expenses of the advisory board shall be paid from the fund,
according to an authorization as provided in section 7.
(7) The business that the advisory board performs shall be
conducted at a public meeting of the state board held in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.
Public notice of the time, date, and place of the meeting shall be
given in the manner required by the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275.
(8) A writing prepared, owned, used, in the possession of, or
retained by the state board in the performance of an official
function shall be made available to the public in compliance with
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(9) The advisory board shall do all of the following:
(a) Work to identify and address the many issues facing foster
care children in this state.
(b) Work with the foster care community to solve the problems
facing current foster care children and those children who have
been in the foster care system or who will soon age out of the
foster care system.
(c) Focus on developing an extensive support network for
foster care youth who age out of the system. The support network
should include, but is not limited to, personal counseling,
financial planning, health care options, and college or career
training programs.
(d) Serve as the central point of contact and coordination for
all foster care issues and concerns in this state regarding foster
care.
(e) Meet not less than twice annually at the call of the
chairperson.
(f) One year after the original appointment of the advisory
board, and biennially thereafter, develop a state plan for the
distribution of funds from the fund. In developing the plan, the
advisory board shall review already existing foster care programs.
The plan shall assure that an equal opportunity exists for
establishment of foster care programs and receipt of trust fund
money among all geographic areas in this state. The plan shall be
transmitted to the clerk of the house of representatives and to the
secretary of the senate. The advisory board shall notify the
governor and the members of the legislature that the plan is
available.
(g) Provide for the coordination and exchange of information
on the establishment and maintenance of foster care programs.
(h) Develop and publicize criteria for the receipt of trust
fund money by eligible local councils and eligible foster care
programs.
(i) Review, approve, and monitor the expenditure of trust fund
money by foster care programs.
(j) Provide statewide educational and public informational
seminars for the purpose of developing appropriate public awareness
regarding foster care; encourage professional persons and groups to
recognize and deal with foster care; make information about foster
care available to the public and organizations and agencies that
deal with problems of foster care; and encourage the development of
community foster care assistance programs.
(k) Establish a procedure for an annual, internal evaluation
of the functions, responsibilities, and performance of the advisory
board. In a year in which the biennial state plan is prepared, the
evaluation shall be coordinated with the preparation of the state
plan.
(l) Educate the public on the various opportunities to serve
within the foster care community, including, but not limited to,
foster parenting, volunteering, and foster child adoption.
(10) The advisory board shall enter into contracts with public
or private agencies to fulfill the requirements of subsection
(9)(j) and may contract to fulfill the other requirements of
subsection (9). The advisory board shall utilize existing state
resources and staff of participating departments whenever
practicable.
(11) The advisory board may recommend to the governor and the
legislature changes in state programs, statutes, policies, budgets,
and standards that will reduce the problems facing foster care
children, improve coordination among state agencies that provide
foster care services, and improve the condition of children and
parents or guardians who are in need of support or assistance
dealing with foster care issues.
(12) The advisory board may do any of the following:
(a) Accept federal money granted by congress or executive
order for the purposes of this act as well as gifts, grants,
bequests, and donations from individuals, private organizations, or
foundations. The acceptance and use of federal money does not
commit state money and does not place an obligation upon the
legislature to continue the purposes for which the federal money is
made available.
(b) Enter into a contract with a charitable organization
licensed under the charitable organizations and solicitations act,
1975 PA 169, MCL 400.271 to 400.294, for the solicitation of
contributions to be used exclusively for the purposes prescribed by
section 7. A contract under this subdivision shall include
provisions for at least all of the following:
(i) A reasonable administrative fee not to exceed 10% for
contributions obtained by the charitable organization.
(ii) An independent audit of the charitable organization in
regard to the solicitation.
(iii) Appropriate bonding by the charitable organization.
(c) Plan, manage, or conduct a campaign to solicit gifts,
bequests, grants, or donations of money or property, or pledges of
gifts, bequests, grants, or donations.
(13) Money received in the manner described in subsection (12)
shall be transmitted to the state treasurer for deposit in the
trust fund and shall be made available for expenditure as
appropriated by the legislature.
(14) The advisory board may authorize the disbursement of
available money from the trust fund, upon legislative
appropriations, as provided in section 7.
Sec. 5. (1) The foster care trust fund is created in the
department as a charitable and educational endowment fund. The
advisory board shall be the administrator of the trust fund for
auditing purposes.
(2) The state treasurer shall credit to the trust fund all
amounts appropriated for this purpose under section 435 of the
income tax act of 1967, 1967 PA 281, MCL 206.435, and money from
any other source for deposit into the trust fund.
(3) The state treasurer shall direct the investment of the
trust fund. The trust fund shall consist of the money credited to
the trust fund pursuant to section 435 of the income tax act of
1967, 1967 PA 281, MCL 206.435, any interest and earnings accruing
from the saving and investment of that money, and money from any
other source.
(4) Money in the trust fund at the close of the year shall
remain in the trust fund and shall not lapse to the general fund.
Sec. 7. (1) The money, interest, and earnings of the trust
fund shall be expended, upon appropriation, as follows:
(a) Not more than 1/2 of the money contributed to the trust
fund each year, plus the interest and earnings, excluding
unrealized gains and losses, credited to the trust fund during the
previous fiscal year, shall be available for disbursement upon the
authorization of the advisory board as provided in section 3.
(b) Money granted or received as gifts or donations to the
trust fund shall be available for disbursement upon appropriation
and funds authorized for expenditure shall not be considered assets
of the trust fund for the purposes of subdivision (a).
(c) To fund a private nonprofit or public organization in the
development or operation of a foster care program if the
organization demonstrates an ability to match, through money or in-
kind services, 50% of the amount of any fund money received. The
amount and types of in-kind services are subject to the approval of
the advisory board and the organization demonstrates a willingness
and ability to provide program models and consultation to
organizations and communities regarding program development and
maintenance.
(d) To fund the advisory board created in section 3 for the
actual and necessary operating expenses that the board incurs in
performing its duties.
(2) Authorizations for disbursement of fund money under
subsection (1)(d) shall be kept at a minimum in furtherance of the
primary purpose of the fund, which is to disburse money under
subsection (1)(a), (b), and (c) to encourage the direct provision
of services to foster care.
(3) The state treasurer shall annually prepare an accounting
of revenues and expenditures from the trust fund. This accounting
shall specifically identify the interest and earnings of the trust
fund, shall describe how the amount of interest and earnings has
been affected by the investment options provided for in section
5(3), and shall identify how the increased interest and earnings,
if any, have been expended. This accounting shall be provided to
the senate and house of representatives appropriations committees.
Sec. 9. The money in the trust fund that is available for
distribution shall be appropriated each year. Money granted or
received as a gift or donation to the trust fund is available for
distribution upon appropriation.
Enacting section 1. This act does not take effect unless
Senate Bill No.____ or House Bill No. 6090(request no. 06859'08 a
*) of the 94th Legislature is enacted into law.