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: Mar 10, 2022
BILL NUMBER: SB 266 BILL AMENDED: Mar 8, 2022
SUBJECT: Department of Child Services Matters.
FIRST AUTHOR: Sen. Ford Jon BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Jeter
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
XFEDERAL
Summary of Legislation: Volunteers, Employees, and Contractors: The 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
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
SB 266 1 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.
Child Services Providers Reimbursement: The bill establishes a process by which a child caring institution,
group home, licensed child placing agency, or secure private facility (child services providers) may request
a review of base rates and other cost-based rates approved by the Department of Child Services (DCS).
Effective Date: Upon passage; July 1, 2022.
Explanation of State Expenditures: Child Services Providers Reimbursement: Individualized child services
providers' payment rates are based on its eligible costs and number of placements. Costs may be determined
to be ineligible in the DCS's rate setting protocol, such as staffing above the standard staffing ratio. Excluded
costs proven by a child services provider to have been previously paid or associated with accreditation, staff
or child safety, or required by the DCS are to be given special consideration for approval by DCS. The
reasonableness of costs standard will have indeterminate impact on the rate paid to child services providers.
The DCS will have minimally 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 child services
providers and post it on the DCS website.
Volunteers, Employees, and Contractors: The bill potentially increases the number of workers in training
to work or volunteer at a child placing agency, child caring institution, or group home by modifying
background check requirements. If these facilities have more employees, reimbursement rates may increase.
Additional Information - Annual expenditures of $295 M between FY 2017 and FY 2021 from state funds
are 76% of the total expenditures for child service providers. 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:
Explanation of Local Revenues: A child services provider 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; Family and Social Services Administration.
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 2