ENGROSSED SENATE BILL NO. 1398 - Summary

• Requires the Department of Human Services to privatize all community-based out-of-home placement services (traditional foster care, kinship care, emergency foster care, contract foster care, and therapeutic foster care) by July 1, 2013.

• Establishes a committee with equal representation from the Department and child placing agencies to develop selection criteria, performance outcomes, and an implementation plan for privatization.

• Mandates the Department contract with private licensed child placing agencies and spend funds equivalent to the percentage of the Department's current budget dedicated to these services.

• Selected child placing agencies must recruit and train foster families while maintaining the "Bridge philosophy" to preserve children's connections to family, culture, and community during out-of-home care.

• Non-nationally-accredited agencies must subcontract with accredited agencies for assessment and placement management to access Medicaid reimbursement for treatment services; becomes effective November 1, 2012.