BY adding to

Article - Education
Section 8-417

Annotated Code of Maryland

(1997 Replacement Volume and 1998 Supplement)

Preamble

WHEREAS, The current practice of rate setting for rates paid to providers of
private residential child care programs has not produced a system to encourage
efficiency and flexibility; and

WHEREAS, A systematic process for setting rates for nonresidential child care
programs and services for children has not been established; and

WHEREAS, Certain providers in the system are subject to rates below cost,
while certain other providers are funded at full cost; and

WHEREAS, The Department of Human Resources, as a member of the
Subcabinet, is the single State agency for child welfare services under 45 C.F.R.
205.100; and

WHEREAS, The Department of Education, having served as the fiscal agent for
the Subcabinet Fund for Children, Youth, and Families and the lead agency for the
purposes of rate setting, is uniquely able to develop and administer an efficient
statewide rate setting process; and

WHEREAS, The Department of Education, in collaboration with other State
agencies, should establish a process sufficiently flexible to ensure that providers can
meet the needs of children and families referred to providers; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 49D - Office for Children, Youth, and Families

4.3.

In accordance with § 4 of this article, the Subcabinet shall phase in a statewide
system of interagency budgeting and funding to be fully implemented by Fiscal Year
1998. As part of this system, the Subcabinet shall:

(1) Establish a Subcabinet Fund which:

(i) Includes moneys for out-of-home care and services to prevent
out-of-home placements;

(ii) Consists of any other moneys appropriated, transferred,
credited, or paid from any source;