LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7075 NOTE PREPARED: Feb 17, 2022
BILL NUMBER: SB 266 BILL AMENDED: Feb 17, 2022
SUBJECT: Department of Child Services Matters.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: CR Adopted - 2
nd
House
FIRST SPONSOR: Rep. Jeter
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
Summary of Legislation: (Amended) Civil Liability: The bill limits the civil liability of contractors that
provide specified services under a contract with the Department of Child Services (DCS).
Volunteers, Employees, and Contractors: It provides that an individual may be employed by a child care
provider before the state mandated criminal history check of the individual is completed if the following
conditions are satisfied:
(1) The individual's:
(A) fingerprint based check of national crime information data bases;
(B) national sex offender registry check;
(C) in-state local criminal records check; and
(D) in-state child protection index check; have been completed.
(2) If the individual has resided outside Indiana at any time during the five years preceding
the individual's date of hire, the individual's:
(A) out-of-state child abuse registry check; and
(B) out-of-state local criminal records check; have been requested.
(3) The individual's employment before the completion of the state mandated criminal
history check is limited to training during which the individual:
(A) does not have contact with children who are under the care and control
of the child care provider; and
(B) does not have access to records containing information regarding
children who are under the care and control of the child care provider.
(4) The individual completes an attestation, under penalty of perjury, disclosing:
(A) any abuse or neglect complaints made against the individual with the
SB 266 1 child welfare agency of a state other than Indiana in which the individual
resided within the five years preceding the date of the attestation; and
(B) any contact the individual had with a law enforcement agency in
connection with the individual's suspected or alleged commission of a
crime in a state other than Indiana in which the individual resided within
the five years preceding the date of the attestation.
Residential Treatment Service Provider (RTSP) Payment Rate: The bill establishes a process by which a
child caring institution, group home, secure private facility, or licensed child placing agency (RTSP) may
request a review of base rates and other cost based rates approved by the DCS. It requires the DCS to give
special consideration to approval of costs that: (1) are proven by a RTSP to have been previously approved
by the DCS; or (2) relate to accreditation, staff safety, child safety, or a DCS requirement.
Interim Study Committee: The bill urges the Legislative Council to assign to the appropriate interim study
committee the topic of privatizing the DCS.
Effective Date: (Amended) Upon passage; July 1, 2022.
Explanation of State Expenditures: Residential Treatment Service Provider (RTSP) Payment Rate: The
RTSP’s payment rate is based on the eligible costs and the utilization (or number of placements). Certain
costs are disallowed in calculating the rate, including staffing above the standard staffing ratio. If an RTSP
proves that additional staff costs are related to child or staff safety, these additional costs may be included
in the rate. Other changes in the reimbursement rate are indeterminate and would be based on whether the
rules currently used to determine the rate would change based on the definitions in the bill.
The DCS will have increased workload to review and amend its rules to conform with provisions of the bill
as needed. Also, the DCS’s workload will increase to provide notices to the RTSP, the legislator of the
RTSP, the chairpersons of the House Committee on Family, Children, and Human Affairs and the Senate
Committee on Family and Children Services, and post it on the DCS website.
(Revised) Volunteers, Employees, and Contractors: The bill could potentially increases the number of
workers who may begin training to work or volunteer at licensed child-caring institutions, group homes, and
child-placing agencies by providing modifications to the background check requirements. If these RTSPs
have more employees, reimbursement rates may increase.
Interim Study Committee: If the committee were to hold additional meetings to address this topic, there
would be additional expenditures for legislator per diem and travel reimbursement for the committee
members. Any additional expenditures must be within the committee’s budget, which is established by the
Legislative Council.
(Revised) Additional Information - Annual expenditures of $222.7 M between FY 2017 and FY 2021 from
state funds are 76% of the total expenditures for RTSP. Utilization decreased 43% between FY 2017 and FY
2021, from 4,520 to 3,160 placements. Any expenditure outside of those allowed by Title IV-E programs
would be a state expense.
Explanation of State Revenues:
Explanation of Local Expenditures:
SB 266 2 Explanation of Local Revenues: A RTSP of a local unit could receive additional reimbursement, but any
increase will be based on the differences between current rules and the requirements of the bill.
State Agencies Affected: Department of Child Services; General Assembly.
Local Agencies Affected:
Information Sources: Sarah Faulkner; Aaron Atwell; DCS, Rate Setting Process Overview 11.22.21,
presented to the Child Services Oversight Committee on November 22, 2021.
Fiscal Analyst: Karen Rossen, 317-234-2106.
SB 266 3