Section 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, 2012
    * (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, 2012
    (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.
    (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.