FISCAL NOTE - North Dakota Legislative Branch |

19.8057.03000 FISCAL NOTERequested by Legislative Council

03/27/2019

Amendment to: Engrossed SB 2124

1 A. State fiscal effect: Identify the state fiscal effect and the fiscal effect on agency appropriations compared to funding levels and appropriations anticipated under current law.

2017-2019 Biennium 2019-2021 Biennium 2021-2023 Biennium

General Fund Other Funds General Fund Other Funds General Fund Other Funds

Revenues

Expenditures $26,000,000 $134,700,000 $172,300,000 $172,300,000

Appropriations $26,000,000 $134,700,000 $172,300,000 $172,300,000

1 B. County, city, school district and township fiscal effect: Identify the fiscal effect on the appropriate political subdivision.


Counties

Cities

School Districts

Townships

2 A. Bill and fiscal impact summary: Provide a brief summary of the measure, including description of the provisions having fiscal impact (limited to 300 characters).

This bill requires the administration of a statewide program for state funding of staffing and administrative costs related to the administration of human services through the creation of human service zones under a new payment methodology.

B. Fiscal impact sections: Identify and provide a brief description of the sections of the measure which have fiscal impact. Include any assumptions and comments relevant to the analysis.

SB 2124 continues the state funding responsibility from the human service zones to the State for the administration of human services as defined in Section 130; repeals chapter 50-03, and sections 50-06-20.1, 50-06.2-05 relating to the county human service funds, and human services grant program, and county human services program funding - tax levy authority.

2017-2019 SB 2206 will expire June 30, 2019 requiring Section 130 of SB 2124 to provide a change in the payment methodology used by the Department of Human Services (Department) to reimburse human service zones for the administration of human services for calendar years after December 31, 2019, in the amount of $172,300,000.

3. State fiscal effect detail: For information shown under state fiscal effect in 1A, please:

A. Revenues: Explain the revenue amounts. Provide detail, when appropriate, for each revenue type and fund affected and any amounts included in the executive budget.

B. Expenditures: Explain the expenditure amounts. Provide detail, when appropriate, for each agency, line item, and fund affected and the number of FTE positions affected.

A temporary payment methodology in Engrossed SB 2206 transitioned funding responsibility for county social services from the county to the State in the appropriation amount of $160,700,000. Engrossed SB 2206 will expire on June 30th, 2019. Section 8 of Engrossed SB 2206 required the Department to administer a state-wide program

and develop a plan for permanent implementation.

Section 62 of the SB 2124 requires the creation of human service zones in order to provide optimum service, reduce program costs, and benefit recipients of human services with this state. Section 130 of SB 2124 to provides a change in the payment methodology used by the Department to administer the statewide program for the administration of human services. After further review the Department requests for special fund appropriation in SB 2012 of $172,300,000 to implement the statewide program and new payment methodology.

Section 141 of SB 2124 the Department requests the contingent authorization of up to thirty-three full time equivalents. Section 142 of SB 2124 the Department requests the authorization of one hundred seven full time equivalents. Any authorizations added to the Department under this section would be position transfers from the human service zones.

In 2021-2023 biennium without consideration of inflationary increases or efficiencies resulting from the implemented 2019-2021 biennium statewide program, the Department estimates a need special fund appropriation of $172,300,000 and authorization of two hundred twenty-three full time equivalents to continue to administer the statewide program for state funding of staffing and administrative costs relating to the administration of human services.

C. Appropriations: Explain the appropriation amounts. Provide detail, when appropriate, for each agency and fund affected. Explain the relationship between the amounts shown for expenditures and appropriations. Indicate whether the appropriation or a part of the appropriation is included in the executive budget or relates to a continuing appropriation.

2017-2019 biennium engrossed SB 2206 appropriated special funds of $134,700,000 and general funds of $26,000,000 for a combined appropriation of $160,700,000.

In 2019-2021 biennium the department requests special fund appropriation authority of $172,300,000 to administer a statewide program for state funding of staffing and administrative costs relating to the administration of human services.

In 2021-2023 biennium without consideration of inflationary increases or efficiencies resulting from the implemented 2019-2021 biennium statewide program, the Department requests special fund appropriation of $172,300,000 to continue to administer the statewide program for state funding of staffing and administrative costs relating to the administration of human services.

Name: Heide Delorme

Agency: Human Services

Telephone: 701-328-4608

Date Prepared: 03/27/2019


02/08/2019

Amendment to: SB 2124




Revenues

Expenditures $26,000,000 $134,700,000 $182,300,000 $182,300,000

Appropriations $26,000,000 $134,700,000 $182,300,000 $182,300,000



Counties

Cities

School Districts

Townships





2017-2019 SB 2206 will expire June 30, 2019 requiring Section 130 of SB 2124 to provide a change in the payment methodology used by the Department of Human Services (Department) to reimburse human service zones for the administration of human services for calendar years after December 31, 2019.

The base level SB 2012 does not contain the new payment methodology in the 2019-2021 budget for human service zone financing, therefore special funding appropriation of $182,300,000 to accommodate the change in payment methodology proposed in SB 2124 would need to be added to SB 2012.




A temporary payment methodology in Engrossed SB 2206 transitioned funding responsibility for county social services from the county to the State in the appropriation amount of $160,700,000. Engrossed SB 2206 will expire on June 30th, 2019. Section 8 of Engrossed SB 2206 required the Department to administer a state-wide program and develop a plan for permanent implementation.

Section 62 of the SB 2124 requires the creation of human service zones in order to provide optimum service, reduce program costs, and benefit recipients of human services with this state. Section 130 of SB 2124 to provides a change in the payment methodology used by the Department to administer the statewide program for the administration of human services. The Department requests for special fund appropriation in SB 2012 of $182,300,000 to implement the statewide program and new payment methodology.

Section 140 of SB 2124 the Department requests the authorization of up to two hundred and twenty-three full time equivalents. Any authorizations added to the Department under this section would be position transfers from the human service zones.

In 2021-2023 biennium without consideration of inflationary increases or efficiencies resulting from the implemented 2019-2021 biennium statewide program, the Department estimates a need special fund appropriation of $182,300,000 and authorization of two hundred twenty-three full time equivalents to continue to administer the statewide program for state funding of staffing and administrative costs relating to the administration of human services.





Name: Heide Delorme


Telephone: 701-328-4608



12/26/2018

Bill/Resolution No.: SB 2124




Revenues

Expenditures $26,000,000 $134,700,000 $182,300,000 $182,300,000

Appropriations $26,000,000 $134,700,000 $182,300,000 $182,300,000



Counties

Cities

School Districts

Townships





2017-2019 SB 2206 will expire June 30, 2019 requiring Section 115 of SB 2124 to provide a change in the payment methodology used by the Department of Human Services (Department) to reimburse human service zones for the administration of human services for calendar years after December 31, 2019.

The base level SB 2012 does not contain the new payment methodology in the 2019-2021 budget for human service zone financing, therefore special funding appropriation of $182,300,000 to accommodate the change in payment methodology proposed in SB 2124 would need to be added to SB 2012.




A temporary payment methodology in Engrossed SB 2206 transitioned funding responsibility for county social services from the county to the State in the appropriation amount of $160,700,000. Engrossed SB 2206 will expire on June 30th, 2019. Section 8 of Engrossed SB 2206 required the Department to administer a state-wide program and develop a plan for permanent implementation.

Section 48 of the SB 2124 requires the creation of human service zones in order to provide optimum service, reduce program costs, and benefit recipients of human services with this state. Section 115 of SB 2124 to provides a change in the payment methodology used by the Department to administer the statewide program for the administration of human services. The Department requests for special fund appropriation in SB 2012 of $182,300,000 to implement the statewide program and new payment methodology.

Section 124 of SB 2124 the Department requests the authorization of up to two hundred and twenty-eight full time equivalents. Any authorizations added to the Department under this section would be position transfers from the human service zones.

In 2021-2023 biennium without consideration of inflationary increases or efficiencies resulting from the implemented 2019-2021 biennium statewide program, the Department estimates a need special fund appropriation of $182,300,000 and authorization of two hundred twenty-eight full time equivalents to continue to administer the statewide program for state funding of staffing and administrative costs relating to the administration of human services.





Name: Heide Delorme


Telephone: 701-328-4608


2019 SENATE HUMAN SERVICES COMMITTEE

SB 2124

2019 SENATE STANDING COMMITTEE MINUTES

Human Services Committee Red River Room, State Capitol

SB 2124 1/14/2019

Job # 30729

☐ Subcommittee

☐ Conference Committee

Committee Clerk: Justin Velez

Explanation or reason for introduction of bill/resolution:

Relating to creation of human service zones; relating to the establishment and operation of human service zone areas, taxing district levy limitations, and property tax statements; relating to administration of country social service boards, the county human services fund, and caseload standards; to provide a contingent appropriation; to provide an effective date; and to declare an emergency.

Minutes: Attachments #1-6

Madam Chair Lee: Opens the hearing on SB 2124. Clerk takes roll. All senators are present. (02:04-1:08:00) Chris Jones Executive Director of the Department of Human Services. Testifying in favor of SB 2124. Please see Attachment #1 for testimony. (12:31) Senator Hogan: In terms of the social service side, you don’t include any of the HCBS (Home and Community Based Services) data and this is the child welfare side. I just wanted people to know that there are two side of social service. Chris Jones: This is meant to kind of be a representative, but you are correct. Senator Hogan: So, there are other services that aren’t in this just so that the committee knows that this is not comprehensive but the other big one is all of the HCBS. (13:22) Chris Jones continues testimony. (15:09) Senator Hogan: Can you briefly describe what a hybrid responsibility is? That is a term I haven’t seen. Chris Jones: The hybrids ones are where sometimes the child welfare is still being provided at the county level but the economic assistance programs are being administered at the state level. Senator Hogan: And so there's still a balance of that. I was just curious about what that meant.

Senate Human Services Committee SB 2124 1/14/2019 Page 2

(15:42) Chris Jones continues testimony. (16:22) Senator Hogan: Did you also look similarly as you compared those states in terms of the quality of the service provided and the national rankings? Chris Jones: We did look at quality, where there were quality metrics out there. What I would share with you, the quality metrics often times are still more process related than they are outcome related. Our administrative costs are high almost exclusively due to the process and the structure that we have, not the employees that are working. I want to make sure that we stress that this isn’t about employees not working hard and doing what is expected of them, this is about the process and the structure and the culture that we have to deliver these services. Madam Chair Lee: The whole point of this is to make this more stream lined for the workers as well. There's a lot of interruption in their service provision time and my impression is that the goal is to make those go better too. Chris Jones: SB 2124 often times is about structure. I must stress that SB 2124 isn’t just about necessarily structure, but it is also about how do we improve process, culture, and removing barriers to those who need our services. Finally, our primary stakeholders are those individuals and families that we serve, the tax payers, and the employees. How do we make their job more rewarding as relates to the work that they do? (18:40) Chris Jones continues testimony. (21:40) Senator Hogan: Go back to the adult services. The last one number C universal intake and assessment, and that’s not much of a county-to-county issue but a systems issues. Many of these recommendations don’t have to do with the counties but have to deal with the whole system. They have multiple forms to fill out because it comes from the state that way. This interplay is pretty dynamic. Chris Jones: That’s correct. This isn’t about the counties this is about a human services delivery system. How do we use SB 2124 to remove the barriers so that we can continue to redesign our human service delivery system? This is really a comprehensive vehicle so that we can start doing the things in the state where we know there are gaps. Senator Hogan: These recommendations are much broader systems issues than county systems. Chris Jones: Yes, that is correct. Senator Hogan: I think it’s really important to note that. (23:10) Chris Jones continues testimony (29:22) Senator Hogan: This has been a fairly dramatic change in process and over the last six weeks I’ve heard concerns specifically law enforcement about this change in juvenile


court because none of this exists in a vacuum. Is there a strategy for involving all the community partners in the vision so that the courts and everyone else are engaged? Chris Jones: I do have Sarah Sara Stolhl here who can answer detailed questions about that but I would ask if you reference back to that slide where we talked about the social determines of health and all the different partners that exist. What we are trying to do is fix the processes that we have within our ability to control so that we can best facilitate the work through. How do we manage our work flow and go and work with the other partners as well? Senator Hogan: I think sometimes there's some significant unintended consequences to this and so we need to be cautious when making major system changes. Chris Jones: That does raise another key component of this is that we do these through pilots and not changing across the state at once so that we can work through it and understand where those unintended consequences are before we roll it out and make a dramatic change that didn’t have the impact that initially wanted. Senator O. Larsen: If I could go back to page 20 on letter D “Central Client Call Center”, when Senator Hogan was talking about the communication between, what points would that be? Are we talking about the 211 system or are we talking about other issues? Chris Jones: A lot of states have a central call center either for people to apply for benefits or get questions answered about eligibility. We actually have a couple call centers in the states that counties have already so to highlight this one would be how do we leverage the investments that have already been made because, once a call center has been developed it’s easy to scale it up much quicker than starting with a new call center right out of the gate. The other component we have two different ways of doing eligibility in the state, case load versus process. Process management does work better in a centralized client call center but I believe we can do both. (32:53) Chris Jones continues testimony. (36:56) Senator Anderson: Explain to me a little about why the last two items on this slide are not contradictory. Chris Jones: They are contradictory if they are looking at the service itself. They are not contradictory as it related to helping clients, individuals, and families access the right services and understand what the need. Senator Anderson has mentioned this to me before that Human Services is messy and you can have the best checklist in the world as far as what the client needs but sometimes you need to interview that client. We do need to understand the community context and without understanding those things, once you get to a supervisory level that’s so far away, often times your probably not making the best decision on behalf of the individual/families. Those services that relate to child protection assessments and foster care. Those decisions need to be made as close to the client as possible. Some of these eligibility programs take long term care eligibility. If you’re not doing it enough it doesn’t mean that you couldn’t have somewhat of a liaison who sits in the county who that client can actually interact with, but they’re on the phone with someone who knows exactly how to walk them down the process.


(38:50) Chris Jones continues testimony. (42:32) Senator Hogan: So the human service center role wouldn’t have a role in the new model? Chris Jones: Their role would change. This has been part of the change as we go through all of this. This is the end state. SB 2124 is the bill to remove the barriers so that we can start changing the structure. We in no way are going to change for instance, if you are a regional representative in a program that is not apart of a pilot, its not going to change when this law passes. Those roles will change as we look at what’s in the best interest of the individuals and families we serve. Senator Hogan: Your looking at a progressive implementation of the zonal process not everybody is going to be there by next year.

Chris Jones: Correct. (43:56) Chris Jones continues testimony. (46:12) Senator Hogan: How many counties are currently in a multi-county unit? Chris Jones: 17 Senator Hogan: Some counties like Cass and Burleigh would probably be their own zone based on their population size. Is that a valid assumption? Chris Jones: I’ll get into that during my testimony. Senator Hogan: I just wanted to get a vision, what is a zone what does it mean? Chris Jones: In terms of the zone creation process that’s really our timeline. (47:05) Chris Jones continues testimony. (50:42) Senator Hogan: I think this issue gets complicated when you are supervising and employee in a different legal entity. This is one of those areas that we will have to really think about. Madam Chair Lee: You mean the political subdivision? Senator Hogan: The political subdivision and when a different political subdivision has hiring and firing authority over somebody hired by another one, I think that’s a conflict issue. Chris Jones: In the role of budgeting, county directors are given a grant amount through the funding formula we want to move to having zone directors having an active role in creating the budget. Rationales we believe in creating the budget will ensure that there is constant attention on how the budget can enable operations that pro-actively meet the needs of


citizens. I would ask you just to highlight this one for a moment because when we get to the end on how we would like to recommend the process on doing the budgeting this is a key component to that as well. As an example from the subject to your point earlier Senator Hogan, we want to move from regional representative’s review of foster care grievance to a peer review by zone directors and a conflict free human service zone. We feel that simplifying the organization complexity will involve reimagining how we deliver services but it won’t happen on the day SB 2124 passes. (52:41) Chris Jones continues testimony. (55:44) Senator Hogan: As you do that formula, do the local jurisdictions what would now be called a multi county social service board have any impact in that or is it just the state employees who will determine that. How will you get local input on that formula revision? Chris Jones: That is part of the governance process but all they would be is advised, they would not have control of the budget itself but could make recommendations. One of the key parts of having the zonal directors all working together to do the budget is when there are changes, they need to be able to communicate the changes that are happening across the state as well so that there is a state wide picture of where the resources are going versus how do I get this money for those in my community. Senator Hogan: I appreciate that view, but looking at the duties of the board it really doesn’t talk about budget or any of those concerns. I think that balance is one we will really have to think about. (56:54) Chris Jones continues testimony. (57:36) Senator Hogan: Perhaps Mr. Jones should explain what indirect costs are. Chris Jones: The counties provide a lot of services outside of social or human services and what has been done is an indirect cost allocation where an outside entity looks at what costs are associated with the delivery of human services for example, office space, cars, landscaping, states attorney, etc. Typically, what is in the formula today is we provide up to 25% of those indirect costs as a state. (58:29) Chris Jones continues testimony. (1:01:27) Senator Hogan: How many overall FTE’s are currently in the county based system? Chris Jones: There's 1,000 FTE’s. Senator Hogan: So about 1/5. Chris Jones: Correct. (1:01:55) Chris Jones continues testimony.


(1:08:06) Senator Anderson: I imagine that of the 17 counties that participated in sometime of the cooperative arrangement. There are a lot of different way that they go about that. I only know of Dakota Central because that happens to be the county where im from and in that case one county employs all of the people and the other counties pay into the Dakota Central fund who manages it. Do you see one level of suggestion because if all these are county employees and you have five counties and you have two working for one county and three for that county and so forth. Talk to me a little bit about how your analysis went through that process. Chris Jones: Almost entirely the multicounty social service district is now the human service zone so we ask that those zones identify a fiscal agent county and then that is how all that would flow together. There is really no administrative change to how that has been done in the past. Senator Anderson: You anticipate that each one of the zones would identify a county and then all of those people would be employees of that one county even though there might be five counties in the social service zone. Chris Jones: That is correct. Senator Hogan: I have done human services for 40 years and I think this is the broadest and specific comprehensive review of a system that I have seen. I don’t agree with all the specifics but in terms of the process and the overview it’s quite honestly, brilliant. So thank you, I know this has been a workhorse for a lot of people but I appreciate your leadership. Chris Jones: Thank you, but we did have a really good team. (1:13:19-2:10:00) Jonathan Alm, Attorney with Department of Human Services. Testifying in favor of SB 2124. Please see Attachment #2 for testimony and proposed amendments. (1:14:29) Senator Hogan: Would the states attorney represent from the primary host if there were one central county that was the fiscal agent serve the whole region, or would the counties that the case came from represent the case? Jonathan Alm: In a situation where it was under the juvenile court code and its termination of parental rights and of course that would still occur where that individual resided in that county and then if you look on page 4 on lines 1-4 talks about regarding the legal advisor in representing the human service zone it would be the states attorney of county which human service zone office is located should act as the legal advisor with the assistance of the others is my understanding that is currently being done with the multicounty social service districts. (1:15:32) Jonathan Alm continues testimony. (1:19:02) Senator Hogan: Currently general assistance burials rates vary fairly significantly from county to county. Do you see that being standardized across the state?


Jonathan Alm: I guess I haven’t put in any thought if it would be standardized or not I think we would still have to negotiate with each funeral home to see what the rate would be. Senator Hogan: Even within a multicounty unit do you see it by county or multicounty unit or zone? Madam Chair Lee: We have a bill coming up that addresses the disposition of the dead. I feel we could leave that question for when we hear that bill. (1:20:08) Jonathan Alm continues testimony. (1:20:51) Senator Anderson: I heard that in Mr. Jones testimony that a county could divide the rural are from a city that encompassed more than one county. This gives me the impression here that a county joins a zone and that the commissioners couldn’t split the county based on where they wanted the people to go. Can you respond to that? Jonathan Alm: The county commissioners from my understanding with the zone plan is that they would look at the overall county to make the determination whether or not which other counties they want to join together to create the overall zone in itself. It doesn’t eliminate the ability for citizens to travel across those zonal borders to receive services as well so we want to have an open flow. Senator Anderson: My point is, could Fargo and West Fargo for example be in one zone and rural Cass county choose to be in a zone with someone else because they felt it was better for the counties needs? Jonathan Alm: That’s not how the current bill is drafted so no. (1:22:47) Jonathan Alm continues testimony. (1:24:26) Senator Hogan: If the human service zone director that gets legal custody and they’re now a state employee, at this current point in time the county has custody until the child is TPR’ed. Would that eliminate that transition problem. Jonathan Alm: If the bill passes as is and the human service center director is the custodian than yes he would not have the transition problem. (1:25:24) Jonathan Alm continues testimony. (1:27:13) Senator Hogan: Again, general assistance policies vary significantly from county to county. Do you anticipate drafting a state wide general assistance or will that also be zonal? Jonathan Alm: With the plan the county commissioners they would be looking at what they would want as far as general assistance policy and they would be working with the zone director and then the department would be approving that plan. Senator Hogan: So that’s a pretty significant change too.


Jonathan Alm: It still would start off at the local level. Senator Hogan: Ok. Thank you. (1:27:53) Jonathan Alm continues testimony. (1:31:20) Senator Hogan: Could you think about the statute of limitations to run out on those types of claims, can we get rid of that too? Jonathan Alm: I did think about it and I know in other provisions of the code claims do allow to continue forever, and so I didn’t make that change based on what other laws are out there. (1:32:08) Jonathan Alm continues testimony. (1:42:08) Senator Anderson: If you look back on page 51, it talks about the department may require criminal history record checks and then on page 52 under subsection 3 it sounds like it valid for 10 years than you must connect another one. I wonder how that may and must connected in there. Jonathan Alm: The subsection 3 that’s on page 52 4-10 that’s dealing with the federal requirement that required eligibility workers and also some child support workers to have the background checks so they are required to have it if they have access to a certain system. (1:43:09) Jonathan Alm continues testimony. (1:47:52) Senator Hogan: In terms of not covered by the merit system can you tell me the specific page and line of that? Jonathan Alm: It was on page 70 lines 25-27. Senator Hogan: The new employees would still be covered by the state merit system because that’s federally required. Jonathan Alm: That is correct. (1:48:39) Jonathan Alm continues testimony. (1:53:14) Senator Anderson: Apparently because these are different sections of law dealing with different things its necessary to repeat the definition is that accurate? Jonathan Alm: That is correct. Senator Anderson: And that’s easier than referring back to a definition that’s already been stated some place else? Jonathan Alm: When we were creating this it took many months, if I would have had maybe a couple more months to analyze where everything needs to be placed I could have done


things a little differently by having a general definition section. Unfortunately, I didn’t want to create something that may have unintended consequences in different sections of the law. Senator Anderson: Sometimes its clearer for people to read a particular section of the law to see the definitions there. If they happened to vary by a word or so it would make it a little difficult. (1:54:19) Jonathan Alm continues testimony. (2:04:01) Senator Anderson: On the top of page 101 in subsection 2, if the money in the fund exchange exceeds 100,000 dollars it doesn’t say what happens. Do you just get less payments from the state or do you have to remit the money back to the state? Is that going to be clear to people in the future. Jonathan Alm: That was what I was previously trying to describe with that second payment that we are making if that fund balances over that threshold amount it would just reduce our second payment and then that additional fund balance would go and be able to be spent. (2:04:46) Jonathan Alm continues testimony.

(2:10:15-2:18:22) Terry Traynor, Executive Director of the North Dakota Association of Counties (NDACo). Testifying in favor on SB 2124. Please see Attachment #3 for testimony. Senator Anderson: As far as the time table is concerned. Do you have a suggestion on how to approach that differently? Terry Traynor: I think moving it by a year would be helpful but there are a lot of timing issues with the bill. Senator K. Roers: The challenge in spreading it out is also, the resistance grows. I get the budgeting piece some of those delays are very logistical that we do need to account for but we need to balance that. Senator Hogan: How many of the counties that aren’t in yellow or green had meetings or discussions because this has been on the table? How much discussion has been that hasn’t been colored on your chart? Terry Traynor: I suspect there has been significant discussion. The six counties of the southwest discussed creating one zone for those counties for many valid reasons. I’ve only colored in where I knew someone had reached out or had a meeting scheduled or have been discussion should the proceed. Senator Hogan: Are there areas of strong resistance of the whole concept? Historically the Native American counties no one wanted to take. Have you or the state considered the need for that specific population.


Terry Traynor: We have had a number of discussions. The tribal land has a generally a very low property value because there is a lot of non-taxed tribal owned land. When you take the property tax issue out of the equation it makes them a much more attractive partner. As far as the reluctance or objection, those counties that have historically felt that the services they receive through the regional service have been inadequate and this is moving in that same direction. You all recognize in this committee the challenges that the state has had serving the western human service centers because of the volume and the difficulty of getting professionals to work out there. Counties in some areas in the west feel they have not gotten the services they need and deserve, and there is a fear that this may be more of that. Madam Chair Lee: Senator Wardner told us that he had met at that six county meeting in the Dickinson area and that there was a very positive atmosphere in which that discussion took place and he was very supportive of the six county group because they felt there were reasons why they work together well, I understand the challenges of that but the local people will have something to say about that. One thing I asked we have some many boundaries of regions and the boundaries don’t correspond to the regional human service centers. I’ve been here long enough to remember when every square inch of this state did not have a public health unit and we do now. Terry Traynor: I know counties have looked at public health boundaries. One thing that keeps on coming up is the court district boundaries because of particularly the child welfare issues and the challenges of working in multiple courts. However, like anything else the court can change their boundaries when they want to as well. We need to use out local officials as much as possible to design that because they know where the synergies are. Senator Anderson: I’m sure that the employment options have been thoroughly discussed. One of those is make everyone an employee of the state. Do you see that there is an option that the counties would like among all those different choices? Terry Traynor: Yes, the counties would prefer to have a zone director employed by the county and have a more direct relationship and would also have a more intimate relationship with the zone board and planning of services. Senator Hogan: In terms of the process of establishing a joint board. We have a number of new groups; how long does it actually take to process? Terry Traynor: I would defer that to the next person who will be testifying. Senator Hogan: Because that may be a timeline type of question, not only would they need to organize the board and the structure then they would have to do the staffing, budget, and the plan. The tasks of doing that all in a six-month period might be really hard. (2:31:00-02:42:41) Kim Jacobson, Director of Agassiz Valley Social Services District a collaboration of Traill and Steele Counties. Testifying in favor of SB 2124. Please see Attachments #4-5 for testimony. (2:37:10) Kim Jacobson: To answer Senator Hogan’s question of how long it takes to process; it took about nine months for Agassiz Valley to form.


Senator Hogan: You’d also had shared services and also a history of collaboration for decades hadn’t you? Kim Jacobson: Traill and Steele counties had done a joint powers agreement which had ended about 20 years ago but there was an opportunity that arose that we found was beneficial to look at this very closely so we did have history to build upon. (2:38:08) Kim Jacobson continues testimony.

(02:44:15-02:49:00) Helen Askim, Director of Human Resources in Williams County. Testifying in favor of SB 2124. Please see Attachment #6 for testimony. Madam Chair Lee: A lot of what you’re talking about is culture. I really implore everyone on all sides to think about how they can provide the best to the people who are needing the services provided. We can’t because we are reluctant to change without everything guaranteed. (2:51:16-2:51:46) Robin Lang, Assistant Director Department of Public Instruction, Testifying in favor of SB 2124. (2:52:10-2:00:00) Bob Kleemann, Dunn County Commissioner. Testifying in support of SB 2124. Testimony is as follows. Bob Kleemann: In Dunn county we are fairly spread out and, I look at a few things. Child care, our sheriff’s department, our elderly, and our social service people getting to outside areas to service these people. I like this idea I think it’s great. Another thing is county input. I think the county people who live there and work there, I’ve been a commissioner for 10 years and I didn’t know a lot of people before, now I know a lot of people in my county and the surrounding county as well. I really think that the input from the local people will help the state to implement. Madam Chair Lee: Asks for any additional testimony. Closes hearing on SB 2124



SB 2124 1/28/2019

JOB # 31599 & 31788

☐ Subcommittee


Committee Clerk Signature: Florence Mayer for Justin Velez



Minutes: Attachments # 1 - 5

Chair Lee: Opened the continuation hearing on SB 2124. Kim Jacobson, Director of Agassiz Valley Social Services, Traill & Steele Counties: Offering neutral testimony for SB 2124. Provided Attachment(s): Attachment #1: Chapter 50-01.1 Multicounty Social Service Districts Attachment #2: Agassiz valley Social Service District plan and approval letter from DHS (11:14) Chair Lee: One of the biggest concerns about this is the cut of FTE’s, but you have been able to make it work. There isn’t anyone who left your multi-county district because of the collaboration? Kim Jacobson: Yes, that is correct. We have maintained our staff and trained new staff as well. (Continued her testimony with Attachment #2.) Attachment #3: District Plan Packet (Building Our Culture, organizational chart, employee summary, budget comparison, letters for state formula payments, and caseload data. Attachment #4: Milestones for Forming a Multi-County Social Service District (28:19) Senator Anderson: How do you envision the anticipated plan upsetting or supporting the work you’ve done so far? Kim Jacobson: It was my intent that it would be a smooth transition. We knew what the language and the law provider for. We were involved with the pilot work that was happening during the interim. I still believe Steele and Traill counties should collaborate as a zone. We have a good step I the right direction. I envision zones will need to work together. Even

Senate Human Services Committee SB 2124 January 28, 2019 Page 2

though we are two counties that in the past didn’t get along, we were able to come together and work forward pretty quickly Senator Anderson: Specifically, the big difference I see is the director is going to be a state employee. Your other employees would remain county employees. Talk a little bit about that. Kim Jacobson: I have to say SB 2124 gives us county directors a little pause because we are working towards something that would make our positions obsolete. I think there could be some complicated factors administering things locally by a state employee. Ideally I’d like to see a hybrid, with perhaps joint sharing with the zonal director. We need to have local voice over all the aspects of that. You just move that administration a little farther down the road. But I can appreciate the department waning consistency and leadership in certain capacities. I see both sides, but I think there could be a compromise. Senator Anderson: Do you see that others may move through the transition quicker or do you see the timeline working with the possibility of an extension for counties that haven’t yet come together? Kim Jacobson: I testified on the 14th, saying that the timeline is impossible. We have the direct benefit of having only 1 social service director, so we didn’t have to flush that out. We have 1 states attorney, 1 dispatch for both counties. There were a lot of things that made the transition smooth, but we also had to build trust between the two counties. We need time to work these things out. I’m certain as more people go through it they will find other things that. We are planning for the next 100 years, for good human service delivery in ND. Senator Roers: What problems would it create and solve if we went to everyone being a state employee? Kim Jacobson: I once was a state employee. I worked for the Department of Public Instruction, we had to work really hard to feel that we belonged to anything. I think it’s important for employees to feel included. We need them to feel like they are a part of a structure. Having local employment helps that. Individuals in our communities have come to trust their local social service offices. Part of this is also the consumer aspect. Senator Roers: When I mean a state employee, I mean the first time I heard this idea some will be state employees but others will be county employees. How does that affect the culture? In my mind people are staying where they’re at physically and delivering the services. Kim Jacobson: We are looking at much more change then just social services. I believe the department is looking at redesign of all of DHS. We are a collaborative system. We are still being able to have that local presence, which is key. If we didn’t preserve county employment, would county offices still have access to their supportive services. I think by preserving some local contact it will help us to partner and keep that commitment. Senator Hogan: What you’ve done in the last year is amazing and you have deep knowledge of your local community, but you are also involved in the redesign. When you had technical questions, who did you go to help you write the map?


Kim Jacobson: Initial I studied the work of my predecessors. There was lake social service district and Dakota Central. We looked at those, and compared and contrasted. I visited with Steve Riser from Dakota Central and Rhonda. We tapped into Terry Trainor and Chris Jones as well. The plan itself, we read the code over and over again. It would have been helpful with a template. Once it was submitted we got support from the department. When we speak about timeline I can’t imagine doing 19 of these in the timeline provided. Senator Hogan: My question is, assuming you weren’t there, you knew all the various pieces and if someone came in to do a plan, what would be their challenges as someone new to the local culture? Chair Lee: I think Kim’s plan now is the template. Senator Hogan: Not every district or county can go and do that. That’s a challenge. (40:01) Senator Anderson: The other difference is I would imagine you are an employee of the zone board? Or one of the county commissions? Kim Jacobson: Traill County is the fiscal responsible county, but we are employees of Agassiz Valley Social Services District, which is a subdivision of Traill County. Senator Anderson: Right now, the zone board can fire you if they want to? (Yes.) The county just acts as the fiscal agent? (That was confirmed.) Chair Lee: I want to thank you. You have put in a tremendous amount of effort with this. How do you see this reorganization affecting the delivery of services to the individuals who need them? We want to have a more focused delivery of services that will be equivalent throughout the state, that can be cost effectively done. Kim Jacobson: We have also had the opportunity to be a part of a CPS pilot program, so we are already viewing our work differently. My fear, prior to 2206 passing, we believe we could be part of the property tax solution, but it couldn’t be at the expense of our citizens. We have seen really good things come out of that pilot program. We now provide CPS supervision to 2 other counties, because they didn’t have a Subject Matter Expert Supervisor. We are finding efficiencies and being able to provide better quality services. Senator Lee: We want that culture to result in better services to the people. It sounds like you’re on the way. I think you’ve got a really good start on an example for the state, on how this can be done to find the common goal. Senator Hogan: You raised the issue of did you have much employee resistance? People say this will be the end of life as they know it. Tell me about your employees’ reaction to these changes. Kim Jacobson: I have a wonderful team that really saw the vision. At first we had very meaningful discussion. It’s about our community and so we had to be very mindful of how we framed things. I met with supervisors to make sure they enforced that to staff as well. Dealing


with things as winter closures and who should be included on what notification, becomes complicated. I wanted to make sure everyone is a part of something to feel that you are contributing. Also to hold you accountable. We have had more staff meetings, a lot of meaningful conversations, but for the most part very few bumps. Senator Hogan: Because you’ve merged two counties, what would happen if it were 3 or 4 counties? Did you consider expanding even greater? Kim Jacobson: The task at hand when we first were approached, was Traill and Steele. We chose our name because we could potentially adapt with changes. We were putting time and resources in rebranding ourselves. We have talked about what if we did partner with other counties and what would it look like. We are visiting more with Cass county. They are having trouble serving the rural Cass county. Now we are able to serve the citizens of northern Cass and in exchange they are helping us with some of our TANIF administration. We have very small TANIF caseloads. Maybe we help out those rural larger county areas. I see opportunity for brain storming. Senator Anderson: One of the things that this new bill doesn’t let you do is divide a county in half. There’s nothing that says you can’t contract with the other county to provide those services. When it comes to making a zone, sounds like we will be stuck if we keep the legislation the way it is. Certainly nothing would prohibit you from contracting with Cass, and I’d assume that’s what you’re doing now. Kim Jacobson: I think the spirit of SB 2124 is that the zones will work together and make sure that spirit stays intact. Certainly our founding fathers of ND never realized what a jurisdictional issue that would create. It doesn’t make sense for my staff to be across the street from a Cass county worker, and we’re serving the same community. Senator Hogan: Based on your experience of the zonal multi-county unit, do you think that those units are going to have to have changes based on the new model? Kim Jacobson: I would anticipate we would have to address any gaps. I’m hoping some of the footprint has been established for us. When Traill and Steele counties merged together, we only had one director, so it was easy for me to step into that leadership role. As we look at zones, we’re looking at no openings in other counties, so you can have 3 or 4 directors who may have different visions. That will take time. Senator Hogan: Who do you think should facilitate that discussion? Those are the complex issues that we need to put on the table. Some of those local processes will be everyone’s responsibility. Kim Jacobson: If we give the pilots a little more time, things will be able to happen more organically then being forced. A lot of the questions we have may be answered if we let the pilots go longer. Senator Roers: Where are we at in the pilot timeline?


Kim Jacobson: There's a child protective services pilot for the SE region and the Badlands region. We have completed the piolet, so now that it’s our general operating procedure. We are now preparing to expand into two significant land masses and they will roll out for 3 months. Then a second wave and a third wave, so about 9 months. We have an early childhood licensing piolet. They are still in the planning stage as of now. They have unique barriers they face. Like who approves the licensing and does the leg work? That program is a little bit more complex. The next pilot that is county specific, is an in-home pilot. The need for in-home crisis management early intervention programs, have dramatically increased. I think they are hoping to do that in May. We are touching many different program areas. Senator Roers: Each of those is a 3 month and then roll further and further? Of those you mentioned, the SPC, economic assistance, in-home, and the one I forgot; we’re looking at a year to 18 months to complete the current pilots? Kim Jacobson: The only one that been boots on the ground is the CPS pilot. The others are in the planning stages. Just wanted to mention that Steve Riser from Dakota Central had done a survey of all the multicounty social service districts, and I provided that today. See Attachment #5. (57:06) Senator Larsen: I had a question, I know she was very busy about putting this together. Was there a conversation with other counties that are trying to come together and then with the department, of ideas that are working and putting something together for everybody? Kim Jacobson: At that time, we didn’t, but we also don’t want to tell our neighboring counties that we do it right and they should do it like this. I do know that the next county to the west have submitted a plan for a multi county services. (59:22) Steve Riser, Director of Dakota Central Social Services: I wanted to answer Senator Larsen’s question. I’ve been approached by a number of counties across the state, and we do have social service directors who are willing to go talk to those who are interested. Senator Hogan: You’ve been a multicounty unit for 13 years, do you see the model in SB 2124 requiring major changes for your district. Steve Riser: I hope not. We like our district and the way things are going. I’m sure we’ll need to revise parts of our plan, but overall we like it. One of the questions asked, is with any zone or district, you have to have a vision. For us it was we wanted to provide our clients with a better service. The way we did that was we wanted our staff to be specialized. We also realized we had a number of citizens that lived much closer to the neighboring county seat than their own. We wanted them to have that choice. Senator Anderson: If we revise this to say that the director of Dakota Central would continue to be an employee of the zone board. Do you see that the state will be able to exercise the necessary oversight? Steve Riser: I can only speak for myself. I believe that the department will feel like nothing had changed and they have the same amount of control that they have now. By trying to


attempt this, is they want to streamline the decision making and get it closer to the counties. I think zone directors being state employees will work fine, as long as we all get along. (1:03:14) Senator Anderson: You’re an employee of the zone board, correct? Steve Riser: We are all McLean County employees, but under that is a subdivision of Dakota Central employees. My employment is determined by the Dakota Central governing board. Which is the commissioner or each county, and then some county members. Senator Anderson: You said if you fire someone, the hearing would go to the county commission. Or would it go to the Dakota Central board? Steve Riser: The first step would be with our governing board. If we couldn’t resolve that, it would eventually go to the McLean county commission, ultimately we are their employees in a subcategory. Senator Lee: I appreciate all your efforts. Let us know any of your suggestions, we want this to be as good as can be. Senator Anderson: What about the timeline in your opinion? Steve Riser: I think the timeline is fairly aggressive. We could do it, I just wonder how with no history, how well it will work. Our district had worked together 20-30 years. I am a little bit hesitant to say without the history. Chair Lee: Not every county is as collaborative as the 2 we have here. Senator Roers: What do you think would be a reasonable timeline for people who are not already started on this journey? (1:06:32) Steve Riser: I think that a good compromise would be to say let’s have a certain number who can get this done by September. Then the following year have the rest of the completion done. There are some that can move forward with this timeline, and some that cannot. If we stagger the Timeline a little bit, it would be a good compromise. I can’t speak for the total association, just myself. Senator Anderson: One option might be to leave the timeline alone, but give the department the option for extensions for a year. That is obviously very difficult to do in the middle of a budget cycle. Does that sound workable? Steve Riser: Dakota Central’s experience is that the department has been very good to work with, and if that were the case I think they would work with counties to do so. Senator Hogan: Say a group of counties can’t come together. What should the department do? A few counties don’t cross county share. So what’s the roll of the department in those situations?


Steve Riser: In reality, the final answer is always the dollar. The department holds the dollars and I think they can be persuaded to make that happen. Senator Lee: If the carrot is going to be better than the stick, then the stick doesn’t matter. (1:09:35) Chris Jones, Executive Director of the Department of Human Services: This is my fear, when you do state financing and there is noncompliance, we withhold payment. But then that only puts those that we serve at a greater risk. It has a huge unintended consequence. While I like “Follow the money”, it isn’t the best incentive, stick or carrot. Senator Lee: What would you suggest? If I live in a county and I don’t want anything to do with this at all, how would you encourage the commissioners to see the advantages. The goal is to serve the people better. Chris Jones: That really was the thought with working with the counties to come up with this quickly. We used the multicounty social district law. Do we need to actually have all that level of detail necessary going forward? I don’t necessarily think we need every part. As the counties work together, we know what the trade routes are and how people get services. If they were unable to come together, the department gets to say where the zone it. That is our only model. If we withhold money, we are just hurting those we are trying to serve. Senator Hogan: Perhaps the timeline needs to say by next September we need a percentage of the counties committed, but by January of 2020 all counties need to be in the process of developing. You could put a series of timelines in. Chris Jones: I think that could work. It is a lot of work at all levels. We can’t allow holes, where people don’t want to work with certain counties. It’s hard to start putting the puzzle pieces together when you don’t even know where the pieces are yet. Senator Hogan: If we could have a master plan for the zones by January 2020, and then implementation. We have half the counties pretty well connected. It’s the other half we need to work with. Chris Jones: It’s safe to assume, that any of the districts already together will stay together. Senator Hogan: Perhaps you may want to merge a district or 2 together. If they are really small to begin with, would you do that? Chris Jones: That would probably come organically. Chair Lee: We have talked about this in other areas. Collaboration is important. The department is aware of who gets along and who doesn’t. (1:14:37) Senator Anderson: It seems that the pilot projects are providing services, not really zone projects. Are they necessary before we complete this transition?


Chris Jones: That’s a great question. There has been confusion with pilot program verses zones. Kim talked about childcare licensing. If there was more clarity around SB 2124, that would have done more, quickly. With these unknowns, it has really stalled. We are setting ourselves up for failure with child care laws. We need more efficiency. If they became state, that would fix a lot of problems. Sometimes structure is a part of the pilot programs. All these moving pieces are important. This is a 3-legged stool with culture, process, and structure. We need to give people more clarity, or else a leg of that stool might bring the whole thing down. Senator Anderson: The pilots you have out there really have nothing to do with the zone formation and consolidating services. SB 2124 will clear up a lot of things once it moves ahead. (He agreed) Senator Hogan: With early childhood licensing, that’s why you have section 124. I think this bill gives you permission to have the legal authority to establish a statewide system. Chris Jones: Yes. There are some counties who are experts in a specific area, then there are others maybe not as efficient in that area. When we talk about consolidating, it’s not about Bismarck being the central. Senator Hogan: No, it’s about skill and client service. That’s why that section is so important. Chair Lee: It’s so important that this collaborative spirit stays here, even if we have differences. Any final comments? If not, we will close the hearing on SB 2124. JOB # 31788 Senator Hogan: We have begun to frame a working amendment master sheet, based on the feedback from all the testimony. It’s being done in collaboration with the department. We are trying to get a mutually agreeable, full set of amendments on the 110-page bill. The counties and the department are working together on that. Senator Roers: Do we have basic deadlines? Senator Hogan: We have a whole set of specific timelines. Chair Lee: I would like to provide copies of what you’ve got. Senator Hogan: This is very preliminary. Chair Lee: Just so we’re not starting with a blank piece of paper. Senator Hogan: Everyone is having at it, but we’re doing it collaboratively with the department. Chair Lee: (Talking with Chris Jones across the room. Inaudible.) RECORDING ENDS.



SB 2124 2/5/2019

Job # 32185

☐ Subcommittee


Committee Clerk Signature: Justin Velez



Minutes: Attachment #1

Madam Chair Lee: Opens the discussion on SB 2124. (01:45-04:13) Dan Rouse, Legal Counsel to the Tax commissioner and the State Board of Equalization. Testifying in support for SB 2124. Testimony is as follows. Dan Rouse: One of the things that the State Board of Equalization does is manage and access centrally accessed properties (pipelines, utilities, railroads). One of the areas where a formula exists, with respect to a credit against payments that the centrally accessed companies make, one of the formulae has a numerator that is dependent on section 50-3403 of the century code, that is dealing with human service issues. That number that is plucked from there is buried in a section of law that is going to expire after July 31st of this year. You will notice of in the many sections of SB 2124 there are replacements. This is one are that simply was missed and I would be happy to go upstairs and prepare an amendment if that would be your wishes to simply bring in one more section to that bill to change the reference from 50-34 to 50-35 to make sure that the formula is consistent with the fact the law will change effective August 1st 2019 and will still allow the State Board of Equalization to see that formula is a properly applied with respect to the credit for centrally assessed properties. Madam Chair Lee: Or would it be more practical to visit with Jonathan Alm and have him include it with the amendments he is drafting. Is that okay with you? Dan Rouse: Yes, I can do that. (04:45-21:52) Chris Jones, Executive Director of the Department of Human Services: What we have talked about since the initial testimony is regarding the timeline. We have an


agreement to have an agreement with the counties by January 1, 2020 of what counties are in the zone, that a zonal board would be formed, the host county would be identified, and thigs like payroll would be consolidated into that host county. By April 1, 2020 the zone director would be identified and then by July 1, 2020 have a plan submitted with the thought that the plan would not be as onerous than the previous plans but the reason it wouldn’t need to be as complete or what is in there today is because a lot of what is in the plan today is about service provision so we don’t want to recreate something that is changing anyways. Second, is employment of the zone directors in departments testimony we testified that we wanted that to be state employment work with the taskforce and would do employment at the zone level and DHS (Department of Human Services) would still be included in the hiring process but that employee would be an employee of that zone. We would like the zone director to be a voting member of the zone board, I think that they can provide value to governance and decisions that need to happen at that zonal level, they will probably have more context and information than some of those zonal board members. As far as financing goes, moving away from the cost and caseload model and start going to that historical costs as starting in January 1, 2020 because that host county will have identified, I don’t anticipate there will be much difference between current payments because a lot of the work wouldn’t have been done but as we find the best ways to serve the ones we serve we may need to move dollars around to do that. That would go to the host county not the individual counties. Historically in the departments testimony when the zonal director was a state employee the guardian or custodian of children who were in the TPR (termination of parental rights) once that happens at the county level custody moves to the sate which becomes the executive director’s responsibility, we could still have that zone director be the custodian of children during the TPR process. The state would still be involved in some of the work also, we do have situations where the states attorneys are like well we don’t feel comfortable working with this child because the child is in the custody of the state and not the county, so just simplifying that whole process, and I would say that the worst part of an executive director’s job is making decisions about children that you really have no context on. Finally, the indigent burial process there are different payments that are done to the funeral directors as it relates to doing burials, the other thing is there is not a lot of consistency across the state as who is eligible for an indigent burial so that will also be addressed in within here. The only other thing that I didn’t put on my notes was there was discussion about having a general assistance policy state wide and while that would be ideal, with all of these other moving parts and pieces and given the size of the general assistance budget, we didn’t feel that it was necessary to do that at this point in time. I will stand for any questions. Senator O. Larsen: There was some discussion of the hierarchy of the zone director and the disciplinary flow, has that been resolved yet? Chris Jones: The direct chain of command would still be to the zonal board however the performance review process would be facilitated and enhanced by DHS and done consistently across the state. Ultimately it is the zonal board that has hire and fire power but we are talking about having a more collaborative relationship with that zone. DHS also needs to change its board structure in order to support this, so while there is the zone director to report to the zone board, there still is a dotted line relationship with someone in DHS that would do more active oversight and support to best make sure that we are delivering and improving client access to services that we deliver.


Senator Anderson: I want to thank you for your department working so well with all the parties here and it seems like everyone is happy that they can move forward and it can work out. Senator Hogan: Talk a little bit about the operational changes that you see in DHS related to zones. Chris Jones: Yes, and its not finialized yet but i think all this work has refocused everyone on what the focus of the department should be and it is how we most effectively and efficiently serve the client. As we look at this and start to look at the department it has historically been about programs and services and where the funding streams are and not about serving children and adults. How do we start to think about those things? What we are really thinking about from a broader department is how do we create strategies around children services and you would have a children services strategy position that exists to connect all the parts not only in the department but across the state because when a child enters the system its not just about the child. It is about the child, family, and other things that happen across the state. Children and family services will still exist but its not meant to be the overseer its meant to be more of the policy arm of children and family services. We want to make sure that when I am talking about this it isn’t the addition of FTE’s this is redefining roles. As it relates to this, we have the state, regional, and the county level and what roles do those regional representatives really play. In supervision, how can they be even more engaged and work with the clients and make sure those zonal directors have what they need. It is going to take time, its not going to happen overnight but it really is a re-focus of what we are doing. Senator Hogan: And this is so intenal operations will change a lot. Talk a little bit about some of those specialty targeted programs that you may move to DHS direct supervision for specific reasons and how you see that playing out. Chris Jones: As part of all the work that’s happened these last 18 month specifically the three areas of children and family service, adult and economic assistance, They did make recommendations to do redesign of those programs. I don’t have that infront of me but it was a part of our original SB 2124 testimony but things such as; subsidized adoption for children with special needs, long term care Medicaid eligibility, child care licensing, regionalization of foster home recruitment and retention. There is a long list, right now pilot wise the CPS (child protective services) pilot has been successful and that is being rolled out across the state but we didn’t necessarily think that doing in-home would be prioritized as high it is because the CPS pilot is working so well, there is a new pressure on doing in-home so how do we start redesigning the in-home to support that. Looking at just having a tribal 4E (Medicaid law that relates to reimbursement for children in foster care) unit, so instead of having the tribes working with seven or eight counties right now they would have one tribal 4E unit to work with so that it was much more consistent. We have been using Sarah Stault as a consultant to really drive the TOC (theory of constraints) work. We are bringing her on just to continue to work with the different work groups to continue to work on these pilots to make changes that are not identified by me or Sarah, we are working together to identify how do we best remove the constraints so that we can leverage the resources we already have to improve client care.


Senator Hogan: Let me kind of give you an example because we have spent so much time on early childhood licensing that there is a pretty clear consensus that that is a duty that might be best centralized with DHS, but then the licenses could actually be housed in the zone. The bill would say, depending on the size of zone there might be a half time or full time and so all of those logistics also has to be in the law so the zone just isn’t the things that are directly provided but it would be partnered with DHS staff. What we have been strategic about is what do put in the bill and what do we just say do good. There is a fair number of things that we are recommending that we give the group collaboration and power to move forward as they are ready. Is that fair? Chris Jones: That is absolutely fair. There are talented smart people who have been doing things the same way and have great ideas on how to improve what we do and we just need to leverage those resources moving forward. Madam Chair Lee: I think it would be appropriate to have regular legislative management reports every six months or whatever. The opportunity to come to one of the interim committees and say this is where we are in this process because there is going to be a lot of interest on the part of the legislators but also the people who frequent those meetings and we want to be able to be supportive of how things are going. The only way we can do that is by knowing what is going on. (23:00-53:20) Kim Jacobson, Director of Agassiv Valley Social Service District. Offers an overview of the impacts of the proposed amendments upon key concerns to the committee. Please see Attachment #1 for proposed amendment impact upon key concerns (28:32) Senator K. Roers: what are the consequences if they don’t meet the deadline? Kim Jacobson: We have has such discussions and there are some consequent sections within the bill. Our hope is that we can encourage to work with that but I believe there is going to be an established deadline, proposed that if a county or counties fail to act by a certain time the department will determine the plan for that entity. Madam Chair Lee: You cant really pull out the funding as a consequence because the services then wont be provided. Senator K. Roers: I like that consequence in that it isn’t hurting the people that we are here to serve but its telling people if you don’t do it for yourself than we will do it for you. (29:47) Kim Jacobson continues overview of amendment impacts. (33:10) Senator Hogan: That’s an example of a little difference that many of us didn’t realize that some boards are paid significantly differently. What is your board paid? Kim Jacobson: We actually have a tiered rate, we pay 65 dollars a day for a four meeting or less or 75 dollars a day for full day meetings.


Senator Hogan: Its really an interesting question of, should that be standard but the consensus was to leave some local control. Kim Jacobson: The actual range is from 45-100 dollars a day; we did a quick poll so we do have quite a bit of diversity. (34:08) Kim Jacobson continues overview of amendment impacts. (35:44) Senator K. Roers: So am I reading that there would be a legislator on each zone board? Kim Jacobson: That was in the original bill draft. (36:08) Kim Jacobson continues overview of amendment impacts. (37:38) Senator K. Roers: Would all employees that are currently the county employees doing this work become state employees or just the director? Kim Jacobson: All the employees of the zone would be state employees. Senator Hogan: and the timeline was fast. Kim Jacobson: the timeline of coming under the same umbrella would be January 1, 2020 which is an aggressive timeline. (38:24) Kim Jacobson continues overview of amendment impacts. (39:00) Madam Chair Lee: So we would not necessarily see a widget watcher in one zone being paid identically to a widget watcher in another zone. Kim Jacobson: That is correct. That is why the department and that zone director would be in partnership so they can have a better visioning of the practical application along with how it fits within the whole. (39:37) Kim Jacobson continues overview of amendment impacts. (40:09) Senator Hogan: The committee might not recognize that most of those merit system rules are federal requirements to access programs like food stamps or SNAP. They require a whole set of federal standards that are applied to the counties now, so that is what they are in compliance with. (40:31) Kim Jacobson continues overview of amendment impacts. (42:40) Madam Chair Lee: Would you take just a moment to explain how the SPED and NON-SPED programs, what each of them are and how this is going to change that when we are talking about home and community based services?


Kim Jacobson: Our home and community based services are the most complex programs rule wise that we administer. We have SPED, expanded SPED, and in many areas we have county funded programs. By century code, the federal state programs are required to be continued to be provided. However, when SB 2206 all the costs were included in the formula payment so that allowed the provision of those services to be continued so that is our intent, is to continue to make sure all those services are provided regardless of where they have come from. It is truly our goal that programs like limited SPED be funded by the legislature moving forward. That would close the gap between our county funded program and the other programs that we administer and what the criteria is for those programs based on income and how many critical areas of need does an individual have. Those items are assessed by a case manager and determined what funding stream to come from. The programs are complex being you can’t combine or cross programs so it creates an opportunity for many gaps. Madam Chair Lee: SPED stands for service programs for elderly and disabled. The expanded SPED is a little bit of a parallel to expanded Medicaid. Senator Hogan: Talk about what it means to be a qualified service provider and why in rural counties typically the county is really the only provider of in-home care service. Private agencies that do it in urban areas don’t want to do it because the travel time is so great that there is no capacity and this is a time where the zone or the county becomes the true safety net. Madam Chair Lee: It’s not only that work force is unavailable, but when they don’t get reimbursed for mileage or for windshield time, you could be assigned to do three service locations but they could be quite far spread so you might be able to get to three in a day and only offer three hours of service for three hours of pay and you spent all day doing nothing. It is really hard to add the money in for the transportation and that would make difference in the way those services could be provided to. Kim Jacobson: I completely agree, being able to have an agency such as mine to be able to serve at that agency QSP (quality service provider) we have the oversight. There is an application process that we have to apply to medical services to be a qualified service provider lead agency and we have to meet the criteria required by Medicaid. Our staff also has to meet certain credentials and training requirements in order to provide that service, but with that by being part of an agency we provide the structure access to the resources that they may need in order to be successful so that we can serve citizens that would otherwise fall through the safety net. In Traill and Steele counties our home and community based caseload runs about 110 individuals of which 60 meet the SPED or expanded SPED criteria and the remaining 50 are that earlier intervention program where we are coming in to keep them safe in their home. They may just need some help getting to the grocery store, being able to access someone to come in and help with bathing, things of that nature to help keep them safe in their home communities. Its is a highly valued and utilized program. I have to say out of all the programs that we administer, citizens love this program. We feel that it is important to advocate for the continuation of those services. (48:30) Kim Jacobson continues overview of amendment impacts.


(53:20) Senator Anderson: Chris mentioned something about how the tribes will be connected to the zones. How is that going to work? Kim Jacobson: I don’t know if the committee has had any discussion with what zone the tribes will fit into. In the past when we have looked at multi-county social service districts, It wasn’t common place to want a tribal county to be apart of your county because, based on our old funding mechanism it was based on property tax and the tribal lands often have a much different valuation than others and they have very high need and caseload. They were difficult partners under our old structure. However, under our new proposed structure they would be the ideal partner. Often times very concentrated populations in small areas and that will drive good practice and good service delivery and funding to support those costs. This moves them from being from one end of the table to the other. Chris Jones also mentioned doing a specialty unite regarding title 4E determinations, and that is a process of a federal funding determination for eligible children and tribal populations have a very concentration of that so that would make a lot of sense. Senator Anderson: Is the discussion is for example if each county is in a different zone would you divide up the reservation or putting them into one zone? What have they said about that? Kim Jacobson: Like I mentioned previously we haven’t talked specifically about alignment there might be some visioning the department may have had but there is language in the proposed bill that speaks to there will be current partnerships and collaborations and encouraging those to continue. If there is current collaboration of those units then I would see that would be supported. If they have operated as four different entities, then they might have greater desirability to continue that way it really depends on the make-up of those zones and the local counties will have to come to some agreement on who they want to propose to form into a zone and that is one of the items that the Association of Counties will be assisting with as providing information to those entities and helping to bring us closer to common ground Senator Hogan: This is a very complex issue. The other piece is that three may be an effort to look at having the tribes and the three major counties be a zone unto themselves even though they are not geographically the same, their issues are so similar that might be an option. The creativity at this point on that issue is we are hoping that the tribes will have input in terms of their desires. Madam Chair Lee: I’m not asking Mrs. Jacobson to stop but I would like to ask Mr. Hawk if he has any comments or if you wouldn’t mind stepping up in case we might have a question for you. Have you had any discussion in Indian Affairs Office about how you might like to see this move or are you waiting to see what we are going to do? (58:00) Brad Hawk, North Dakota Indian Affairs commission: We really haven’t got into the weeds about a lot of the discussion on how the zones will be setup but I think that we are kind of just sitting back to see what the feel is on this. We have talked to one of the council members and talked about access to services and stuff like that but just the issues themselves with dealing with multiple counties is been there for years so I know they are open to talk about this and make it better for everyone in their communities.


Madam Chair Lee: We will want them to be a part of that and what was brought up perhaps a week ago is the fact that because there are some tribal lands that are obviously part of that reservation area is going to be closer to one county than another they may already have an established relationship there, and if it is going well then that should work. It may be worth looking as we move forward and this decision does not need to be made before this bill moves forward, maybe some opportunities to see an advantage to also having one unit that would encompass all of the tribes and tribal lands. We look forward to having you and your office help with determining what the right layout is there and we certainly want representatives from the tribes and what they see as preferences. Brad Hawk: I totally agree, I think the other part is the access to services and stuff happens off of the reservations so specialty services and some of that. Senator Hogan: Have you had an opportunity to participate in the 4E collaboration, which is pretty innovated in the nation. Are you involved in that project? Brad Hawk: I know Erica Thunder in our office works a lot with CPS and foster care stuff so she may know more than I do. There is lot of work trying to get kids into the 4E system because of the access to services and more comprehensive services I would say. Its kind of up and down because the tribes have to agree to be a part of that 4E agreement and so there are little nuances with that. Senator O. Larsen: There was a treatment facility that was being constructed do you know if that was completed? Brad Hawk: Yes, that facility is completed they had the grand opening for it in September but they are working with policy work and hiring staff. I think they are serving at some level but not fully operational. Madam Chair Lee: Any other questions for Mr. Hawk? (1:03:58) Kim Jacobson: I think I covered most of the technical considerations that we have proposed for SB 2124. Senator O. Larsen: I was looking at this little map and you had a couple of counties that you work with. Have you reached out to the other counties here, and are you looking forward to that collaboration? Kim Jacobson: This map is related to the pilot projects for the CPS pilot projects. We are collaborating within region 5. One of the beautiful parts allow zones to collaborate with zones. Right now in order to do the pilot project Traill and Steele counties are providing CPS supervision to the counties of Ransom and Sargent which aren’t adjacent to western land mass but they are within our same region which drives a lot of other practical application benefit. We are partner with that are but also Richland county is providing centralized intake for Ransom, Sargent, Steele, and Traill counties. We are sharing staff, supervision, and dollars. This is essentially an example on how moving forward zones could work together just like we are working together under the concepts of that pilot.


Senator Hogan: You haven’t seen the amendments yet and so can you explain to the committee the status of the amendments and what happens when we get them? Kim Jacobson: The workgroup has been very diligent. Starting last week Terry Traynor had proposed some amendments that were brought forth to Senator Hogan and myself that we refined slightly more and then Terry Traynor and myself worked on Wednesday and adopted more after we had conversations with the department and it has been in the hands of Johnathan Alm ever since and he is working hard and trying to encompass years and years of decision making in a way that doesn’t create unintended consequences does take some time but I know his goal is to create a Christmas tree version of the bill. (1:12:28) Terry Traynor, Director of the North Dakota Association of Counties. Terry Traynor: I really appreciate everyone’s work on this. People have put in a lot of work and I appreciate the dedication that everyone has for the client. I’m hopeful that we are building a structure that will maintain that focus. I appreciate that the department has been willing to listen to the concerns particularly the county commissioners as well as the county directors about the time frame and about the employment of the directors, those were the two big issues that they stressed and I think they have been addressed. I know there are goals that the department needs to accomplish but they were willing to bend and work with us in a process that I think that most counties will be comfortable with. There is still a lot of work ahead but we have to do it. If this is the way that we are going to finance social services going forward is we need to have a structure that will facilitate that and I think this is really much better than I thought. I am pleased and I think that our county commissioners will be pleased. I am looking forward to the amendments as well and I know that Mr. Alm is understanding of your time frames and I know that he is working to meet those time frames. I expect that you will have those shortly, and I am excited to get them out to our members so that we can get some reaction back. I am very hopeful that they will understand that we are moving in the right direction. Madam Chair Lee: Do you see any areas from the counties perspective that we haven’t satisfied? Where are the challenges you might see? Terry Traynor: The timeframes, although they are longer, there are still a lot of decisions that need to be made by the end of the year. There is some built-in consultation and negotiation direction to the department into the association to work with those counties but it is going to be work. It is going to be work to get the last few counties together. I know that Senator Anderson has my map in front of him and there has actually been more yellow on the map since that was submitted with more counties talking together. To get to 19 zones there are a couple of puzzle pieces that don’t quite interlock really well and that is going to be challenging, but you could move the date out 5 years and I don’t know if that makes a difference. We got to have a deadline if we are going to move in this direction and I think reasonable accommodations have been made. Madam Chair Lee: There have to be some deadlines. It’s easier to put it off because other things are taking our attention but this is big.


Madam Chair Lee closes the hearing on SB 2124.



SB 2124 2/6/2019

Job # 32282

☐ Subcommittee





Minutes: No Attachments

Madam Chair Lee opens the discussion on SB 2124. Madam Chair Lee: The questions that Morton County have brought up have really all been addressed and somebody mentioned in an e-mail discourse on this and it looked as if a statement had been prepared and then they held it until it could be signed when there was a meeting and a whole lot took place in between those days. In fact, I received a message back today saying that everything had been addressed and that they were very comfortable with the amendments. This is what Kim Jacobson has provided. This is kind of a summary for us and we will see the actual bill with amendments this afternoon and it will take us a little time to go through that. Senator Hogan: I assume that you have heard that Kim Jacobson and Terry Traynor have started reviewing the actual amendments and they are correcting those amendments but I think it is important for the committee to know that there still might be mistakes in this bill and the cross-referencing has been very complicated. It is almost kind of technical catching things. Madam Chair Lee: What this group has been working so hard on here, really has been our review here and the implementation times, when the zone boards will be created, when the zone director will be named, when the plans are due, and so forth. It is intended to be not impossible but fairly aggressive because the natural inclination of all us is when we are really busy and everybody involved with these items are busy to delay it because it’s easier to do the stuff you just have to do every day.


Senator Clemens: Are there any counties that are really having problems with this whole thing? Madam Chair Lee: Less so I would say but there are some. Senator Hogan: That is a good question and I think that the one that you saw in the letter from Mr. Meyer where there was the question of combining Burleigh and Morton into one unit and the is pretty contentious. The other counties that are struggling are the tribal counties that we have talked about yesterday, those three counties historically know its Benson, Turtle Mountain, and Sioux. Those are counties that are totally free standing in a reservation. The three affiliated are part tribal and part not. Those actually work pretty well in their zones. Madam Chair Lee: Would you explain why the 4E, what we are looking at as far as divvying up. No county up to this point has wanted to bond with them but now that we are changing to more of a caseload program, then they will be able to get the support for the services that they need. Senator Hogan: The question about 4E eligibility is some of the tribal cases aren’t eligible for all of the federal match because of the way that the law has been and consolidate so they have access to enhanced federal money for their 4E funds, foster care. Its 4E of the social security act. Madam Chair Lee: And its IV-E. Senator Hogan: Tribal 4E has always been very difficult to manage and so by consolidating the unique characteristics of that, it would simpler, it would expand services, and it will really enhance the child welfare side. I think they have been talking about this for a long time and to actually implement this is a huge issue and several other states have implemented tribal 4E agreements and this is really a significant benefit to the tribes which has been encouraging to them. Chris Jones, Director of Department of Human Services: The state of North Dakota has not had a 4E agreement with the tribes since 1983 and we have been working the last couple of years as a department trying to improve that. There is a whole lot of parts and pieces to that but the tribal boundaries go over multiple county boundaries. You have tribal social services, county social services, and to Senator Hogan’s point earlier about getting the 4E match. The other thing that comes a part of this is, if they are an enrolled member, if they aren’t an enrolled member, and the interpretation of that eligibility and whether they are in truly tribal foster care versus 4E and then the on or the near reservations. I mean, there are just so many things and you could be one tribal entity trying to determine 4E eligibility in one county and then the next county may see it differently in some aspects and they are just like we want one way to do it consistently across the state. Madam Chair Lee: It’s a benefit to the tribes too it seems to me. Chris Jones: Huge benefit, yes.


Senator Clemens: We were just talking about, some counties that might not be too enthused about this yet. Is there a plan for the possibility that some counties be given some more time? I just think if something gets mandated onto them it’s probably not going to work very well. I was just wondering if there are any options open? Chris Jones: Are you talking about the whole SB 2124 or just the pilot program? Senator Hogan: We are talking about implementation of the whole. Senator K. Roers: I think if you continue to give extended deadlines, they will never have to work together. They will always push back, and sometimes we have to say; if youre not going to do it for yourself than we will do it for you. Senator Hogan: I think the counties that are most resistant tend to be small counties. I think the major counties and the major multi-county districts have accepted, except the Bismarck-Mandan issue, which I think is one issue and the tribal issue. There are a few random counties that have never worked together but I think 80% of the counties are committed to this so don’t listen to the kind of noisy rabble that you might hear. Madam Chair Lee: That map that we had provided to us that showed all the groups that were already working together, there are even more now and Kim Jacobson talked about that a little bit yesterday. I visited with Lisa Clute today who is the Director of First District and has been a multi-county district since 1943, when Brynhild Haugland passed the legislation that established the first district. It’s not a new concept to have this shared work. Senator Clemens: I just think that service has been the main drive of this thing and if some venture into this unwillingly, it might just take a few years before they can really acclimate to the whole plan. Chris Jones: I think the other thing about the rurals being concerned, if you really can take a step back and look at this logically, in a way the rurals have a bigger voice than they ever have before. Historically, we have delivered social services on a historical cost based model within that population that exist, so the fluctuation in services as soon as their costs go down. The rurals have had less money generally speaking than the larger counties, and just because they have had less people being served, there isn’t that synergy or variable cost to keep the fixed cost working and things have started to fall off for no fault of their own, so now they are actually having an opportunity as we build the budget across the state to say; how do we best work together to make sure we get services into these communities. You look at Rolette County, they receive the least amount of funding per case than any county in the state because of those property taxes, but they have the fifth highest need. Madam Chair Lee: It is hard, my home area has long been a bit more resistant to some of the changes than others. It isn’t that they need it less, its just change is hard and I think that it is nice that they are engaged and interested but there has to be a catalyst here. I think what Senator K. Roers said about; if you don’t do it now, we will have set a plan for you. We cant take the money away because then you don’t have the services to the people who really need it but if they don’t move forward the way that is necessary to move in the months and


years that are provided in the schedule, then there will be a decision made on how to incorporate that county or that area into a region in order to make this work. Madam Chair Lee closes the discussion on SB 2124.



SB 2124 2/6/2019

Job # 32315

☐ Subcommittee


Committee Clerk Signature: Justin Velez/ Mary Jo Wocken



Minutes:

Attachment #1

Madam Chair Lee: Called the Senate Human Services back to order.

(2:01– 1:29:09) Jonathan Alm, Attorney with the Department of Human Services. Offers the committee an overview of the proposed amendments from the Department of Human Services for SB 2124. Please see Attachment #1 for the proposed amendments. (05:44) Senator O. Larsen: If we are going to have the buy in with the tribes is there going to be a rub with this one when we talk about that or is that going to be a smooth transition when we talk about that? Madam Chair Lee: Adoption, you mean with requiring the added ‘replace to the tribal family’? Senator O. Larsen: Yes, getting rid of the parental rights and stuff? Jonathan Alm: I don’t think that changes anything. If a district court terminates the parental rights of the child, we automatically gain custody, tribal courts will handle their own. (06:50) Jonathan Alm: Continues the overview of proposed amendments. (09:35) Senator Hogan: It is an interesting question in terms of all the existing court orders on all of these children. How are we going to do that? Jonathan Alm: We look at the zone director would be the custodian designee and also it allows that the court can start placing the kids into the county social service custody and hen transfer over into the zone custody when that gets created.


Senator Hogan: There is always court orders with specific children names in it where often times we are not just named by our position but by our name. That is a bit of a challenge. Jonathan Alm: I did cover that through the proposed amendments. No child will be left without a custodian. Senator Hogan: And a named custodian in their individual order. (10:41) Jonathan Alm continues the overview of proposed amendments. (14:38) Madam Chair Lee: So DHS is negotiating with the funeral directors so that is going to allow us to have some kind of consistency from place to place? Jonathan Alm: Replied, Correct. (15:03) Senator Hogan: On the indigent burial, tell me how you see that rolling out. Jonathan Alm: Taking it from Chris’s shaking his head we are going to have a standardized amount. Chris Jones, Executive Director of Department Chris Jones: (15:42) As far as indigent burial goes we see us having a standard as it relates to payment. Now the payment may differ based on geography. We just don’t say it’s going to be one for the state. We want to recognize there could be geographical differences. But also in working with the funeral directors on some other bills, they have indicated they would like to see standards as it relates to who is eligible for indigent burials as well. So it’s really a two- part thing. In parts of the state it is difficult to be found eligible for indigent burials and in another parts or counties the funeral directors have indicated that sometimes it is too easy. This is a partnership with them and we want to make sure that we are doing it consistently across the state. Senator Hogan: Sometimes these get messy with the whole standards of when to use cremation instead of burial, family responsibility. Those are very complex but you will have one standard for the whole state that will apply and have you estimated about an implementation date for that? Chris Jones: No, we haven’t looked at an implementation date. Senator Hogan: For some jurisdictions, this will be a huge deal, so we might have to work on an implementation date. That is something we might want to think about. Saying that it will be effective in January 1, 2020, or when would the indigent burial? Madam Chair Lee: How much more than 8 months do we need to figure this out? Chris Jones: It would be 1/1/2020 as an effective date. Senator Hogan: It would be January 1, 2020. Wait until you get the responses. This will not be from the zones; this will be from various jurisdictions. For some jurisdictions this is a large percentage of their burials are the indigent burials. Because of that it will have some big


impacts on some places. I think it is good public policy, but just so we are aware. This wasn’t in the original bill. That’s why when we added it I thought you guys need to know about this. Madam Chair Lee: But I think it is a good addition. (19:13) Jonathan Alm: Continues with the overview of proposed amendments. Madam Chair Lee: On pg. 10, with the addition of the host county and human service zones as it relates to this subject. It is just adding a definition? Jonathan Alm: Continues his explanation of the proposed amendments. (22:27) Senator Roers: So how does this work. Do we have to come back next session and strike all the stuff that was an earlier effective date or does it kind of automatically expire? Jonathan Alm: It automatically expires. (22:46) Jonathan Alm: Continues with the overview of proposed amendments (23:00) Throughout that section it is basically just tying in the department or the county social service board to the termination of parental rights. Pg. 15, change to 27:20:20.1, take affect after December 31,2019. (24:10) Jonathan Alm: Continues with the overview of proposed amendments. He explained all the language changes in all situations regarding termination of parental rights. Chris Jones: I would just point out it is one of the many things I’ve learned is you can fictive brothers and sisters. It’s on pg. 19. Jonathan Alm: A lot of had to deal with at least from my standpoint, when we are dealing with the native population. Because it might not be true blood brothers and sisters, but due to their family they are brother and sisters. So they are fictive brothers and sisters. Madam Chair Lee: Effectively so is kind of what fictive is. (26:52) Jonathan Alm: Continues with the overview of proposed amendments. Rights and duties of legal custodians. Senator Hogan: Just going back to pg. 27, taking out all the homestead and the life and all of that, in the original bill, that was a big deal. That is a major change, but I like it. Not so much on the amendment but on the original bill where we took out much of the conditions on GA, which have really been in law since statehood. That is huge deal to take out. I think it makes sense. It allows things to be in policy rather than all of this detail in law. It is clean-up language, but it is historic language. Jonathan Alm: We’ve been doing estate recovery for centuries it seems like, but it will be the same thing. If the individual has received assistance and they do pass along we look it and we can recover it at the tail end of things upon passing, so why are we collecting some


of these assets and holding onto titles and cars and deeds. He then continued with his overview of the amendments. (32:11) Senator Roers: Can someone tell me what general systems is? Madam Chair Lee: It would be economic. Senator Hogan: It was called poor relief and then moved to general assistance and literally every jurisdiction could decide who would get what. It was often coal or food or what was needed in the early part of statehood. Chris Jones: The way I describe it is the emergency fund before you could access to any other services. It is like take care of the immediate need at hand right now. Senator Hogan: Before we had federal programs it was everything. So it’s the historical base that we are cleaning up which is good. (34:41) Jonathan Alm: He continued with the amendments. Senator Roers: I completely understand that, but as I think about it, the rub will be you have a zone, and we figured it all out but there’s a county next to us that did never make into a zone and now they are going to get entered into mine and I have to rework all my plan. Totally understand that that is just the way that things have to be, because we have to make sure that this works. But I think there is going to be our bigger challenge then. Then a lot of the actual coming up with an agreement in the first place. Senator O. Larsen: There is no boundaries to the zone so if Sam’s kid wasn’t working well with that area then they can go to Fargo and say hey I am here and get their needs met? Senator Roers: I know someone who was living in Wahpeton, was a foster family in Wahpeton, had some placements with them, his job moved him to Fargo, but because they crossed county lines, he could not bring one of the kids with him. In most situations yes, unless the court, there is something court wise but. Jonathan Alm: I think also too how we have implemented this in December they submit what their proposed counties will look like in the zone, but the full plan will be worked on after they decide that. But they shouldn’t feel like they went behind if we added another county to their zone. Senator Hogan: That’s why that 6- month period from the zone agreement to the zone plan is critical. They can resolve all of that. That is actually conscious. (40:00) Jonathan Alm: Continues with the overview of proposed amendments. (41:09) Madam Chair Lee: I think those dates are really critically important at the beginning of the handouts that we are going to using. Because people will be asking those questions and if we answer them right away, and then show how its going to work, I think that will set some minds at ease that may otherwise not have their questions fully answered.


(41:30) Jonathan Alm: Continues with the overview of proposed amendments. P.34 line 27 just adding the U.S. Census may submit, the county with a population exceeding 60,000 individuals according to the 2010 US census may submit an agreement and a proposed plan so we are adding that since they have to do both. (43:06) Senator Hogan: Why did you use the term, out of sections to the court, it has staff, or employees rather than team members. That is something I have not seen in law typically or is that one that you’re going to? Jonathan Alm: When we proposed 21:24 we had the Human Service known as team members. Senator Hogan: Isn’t that interesting. But in other sections of law, is it normally employee or staff? Jonathan Alm: It is discussed as employees, but it is basically as team members and employees. Senator Hogan: It is an interesting change in terms. Jonathan Alms: I think with the collaboration in how it is kind of looked at as that rural kind of terminology. Senator Hogan: This is messaging what is in substance. I am not opposed to it. But it was a change from current writing of law typically. Interesting. Madam Chair Lee: The other thing is that is important is who is paid by whom. Whose is employed by who? I think those are sort of the biggies in a lot of minds. Senator Roers: This isn’t even about the bill itself. But I started thinking like you ‘re going to need names, logos, and letterhead. (44:45) Jonathan Alm: Continues with the overview of proposed amendments (42:16) Senator Hogan: This is the beginning of the template. This is the template that we talked about isn’t it? Jonathan Alm: (45:22) Continues with the overview of proposed amendments. Senator Hogan: For example, when we talked about moving early childhood positions this is where you would use that. Jonathan Alm: Yes, then continues with the overview of proposed amendments. Kim Jacobson: Just to clarify for audit purposes. The human service zone would be subject to the host county fiscal audit, in compliance with other state regulations. So it is not an illumination of the audit, it is just recognizing that bills can be paid through a process established by the zone board.


Jonathan Alm: Continued explaining the amendments. Senator Hogan: Let’s assume that you have Human Service’s own Director, who is having major performance problems. Either the local board or the Department of Human Services sees those problems. With the director also serving as the Chair of the Board, will that be difficult? That is an interesting question isn’t it? I am just trying to think in my head. Senator Roers: Do you happen to sit as the Chair of your Zone Board? Kim Jacobson: Currently no. I serve as a Director of the Board and currently I do not have any voting authority. I am there at the will of the board. Ex-officio person. Senator Hogan: But it is an interesting performance management issue isn’t it?

Jonathan Alm: I guess I kind of look at it too and maybe Terry can chime in but, on the business side votes can remove the chairs at point as well. So, if they are outnumbered 5-6 individuals up to 15. So, it can happen. Terry Traynor: It is a different arrangement. But we are having a different board now. We’re talking about legislators and county commissioners, and other stakeholders. I definitely see the role of the zone director as the conveynor, and if that’s the chairman than that’s. Madam Chair Lee: Terry please identify yourself for the record? Terry Traynor: Association of Counties. Kim Jacobson: Just to clarify, during the committees’ discussion it was brought by Chris Jones that he wanted to have the zonal director to have the ability to vote. But to put the position of that individual on record, after might be support to put it on record. So the committee understands the intent behind that as well. Madam Chair Lee: That makes sense to me. Senator O. Larsen: I just wanted to ask Terry what do you think the role of a legislator would be on the board? Terry Traynor: I guess I see the same role as the county commissioner, now the legislature has a huge stake in the delivery. You always did, but now it’s all your money. I think it’s a communication back with the legislature. If we’ve got 19 zones, and we can get 19 legislators educated on what’s going on there, I think it would be so helpful when we are talking about going forward. Madam Chair Lee: More like a liaison I think. Senator Hogan: Long term care facilities often have legislators on their board for communication and they want us to know what they live. I think this really makes sense. Terry Traynor: I know the health districts try to get legislators on their boards just for that reason.


Madam Chair Lee: Its nice having someone from this side of the discussion who has some knowledge of that more detailed exposure. It is helpful to us when we are making decisions as well. (56:48) Jonathan Alm: Continues with the overview of proposed amendments. (59:58) Senator Roers: Senator Hogan, I see this as also a backup for is you’re having an issue with the Chair? You have the department has the ability to pause as well. Senator Hogan: Then the question is will the Human Service zone be notified when you’re doing that? (1:00:40) Jonathan Alm continues with the overview of proposed amendments. (1:02:46) Senator Roers: If you’re requiring a legislator to sit on this board, would they get the compensation of this or their legislative pay? Senator Hogan: Both, yes. That’s how it is done now. (1:03:08) Jonathan Alm: Continues with the overview of proposed amendments. Zone director has to be hired by 4/1/2020. (1:04:10) Chris Jones: so is it hired or in service? Is there a definition of what hired means? Jonathan Alm: Be in service by. Chris Jones: Hired to me would be that they just hired and if it takes another month for them to actually be on the job. Madam Chair Lee: Did you notice that the old job, and they have a certain length of time before they have to start the new one, by contract, which is, or what do you want? Chris Jones: I think we should just keep it. I just wanted if there was a definition of hire. Hire means an offer has been accepted. Kim Jacobson: One of the reasons for the time line was to allow the zone director to be in office long enough to influence that zone plan that would be due June 30. So certainly, do July 1st. (1:05:25) Jonathan Alm: Continues with the overview of proposed amendments. (1:06:57) Senator Hogan: Are you looking then the current regional reps serving at least in some ways those or would they all be county positions? Chris Jones: I would imagine we would go through the normal natural process of doing a JEQ, getting to go through the system and it would be options for people to apply for.


Senator Hogan: Because right now at the regional human service centers there are people doing regional program supervision. But we’re changing that model to a quality control so it’s a mix of it could come from the base of County Social Services staff but it could come from some of those FTE’s could come from. Chris Jones: You talk to some reps and they are not interested in the quality control they are more interested in doing direct supervision, or doing direct client service and vice versa and giving people an opportunity to. Senator Hogan: Where did the FTE’s come from? From both places or just from the county side? Chris Jones: The way the bill is written right now it is just the county. But that doesn’t mean as we continue to do pilot programs, in the regional reps are no longer as necessary, as we are looking at moving people around, but this would probably be roll we would fill. These FTE’s are coming from those county FTE’s. Senator Hogan: Just so you know, the inter-mingling of this is really complicated. Chris Jones: How this starts to fit together and how the human service centers versus DD case management so that we have a better transparency as to what is in there. These individuals that are doing human service delivery are going to evolve over time into this bucket instead of being in the field bucket of the department of human services budget because they really don’t belong there. Senator Hogan: So there is some interface with the Human Service centers at this point. This is good public policy. Operationalizing of it will be challenging. Chris Jones: I think there is great opportunity and the resources are already there, just being able to move around the resources and as the pilot programs happen as we redo the culture and redo the process. That’s what makes this exciting because it is not like we are trying to build something, we’re trying to move things around and restructure. Madam Chair Lee: I don’t mean sales job in the whole presentation it has to be about the exciting opportunities that we have to do things better in a way that is good for clients and rewarding for staff. Because you are a part of this system then that means you have something to say as how this is going to go, and I see a greater voice by some of those people who are providing services in this system, than with the current ladder we’ve got, so if we view it positively then we need to project that idea and not get hung up on the stuff that may be a challenge, but you know what, we’re here to work through this. Senator Hogan: That particular section really talks about the Department of Human Services structure and that’s why this isn’t about the county social service board, so that is why this is a really big deal. (1:11:15) Jonathan Alm: Continues with the overview of proposed amendments.


(1:12:50) Madam Chair Lee: But on pg. 56, what are we doing differently at line 22? Is there something new beyond what we are already able to do there? I realize you are now currently able to, part of the rub in that place is the state has all kinds of ideas and the state owns this property which will they do. We aren’t going to fix that. I am just asking? Jonathan Alm: No, change on this but it does talk about how we can lease and transfer the use of the Life Skills. Madam Chair Lee: But you can’t transfer the ownership of it? Jonathan Alm: That is correct. Madam Chair Lee: I am not suggesting we change it, I am saying sooner or later we’re going to have to deal with that, down the road. Jonathan Alm: It was discussed today. Life Skills in the North Dakota Constitution so we definitely cannot transfer ownership on Life Skills. Madam Chair Lee: But you can alter the use of some of the property. Jonathan Alm: That is correct. Madam Chair Lee: It has already been done to two buildings that have been converted. Jonathan Alm: Correct. Yes, we are not making any change on this. Madam Chair Lee: That dang Constitution keeps messing me up. Jonathan Alm: We are going to go to pg. 61. Continued his reference to the amendments. Senator Hogan: In the original bill there was really nice language in here about the federal family first and kinship care and some of those other creative new things that are going on in the department, and I just wanted the committee to know that is really good that link between the zones and the family first. Chris Jones: HB 1102, I think ties to that which also ties to the getting rid of the RCCS, and going to QRGP’s and doing the licensing on or near. So these all. It is the QRTP, Qualified Residential Treatment Program. (1:15:00) Jonathan Alm: I don’t know that they actually mean, then continues with the overview of proposed amendments. (1:18:55) Kim Jacobson: If I just give the intent as well. With the pilot project the local children protection team is not in practice. So this will be a section that will eventually be obsolete if that practice continues as we launch that statewide. Senator Hogan: But in practice today we don’t see the regional service director is designated often times doesn’t know the actual case and so then they have to bring somebody new often time and so its flattening the levels it makes sense. (1:19:36) Jonathan Alm: Continues with the overview of proposed amendments.


(1:22:00) Senator Hogan: I think this committee should understand how this formula will be established. Jonathan Alm: pg.96 &97 we are just adding in a definition and in agreement or for the Human Service zone. We are also looking at changing Human Service zone director, to Human Service Team Member and that’s the county employee back, and then changing the president to chair. That’s what those changes on pg. 97 do. The change on pg. 98 line 20 adding study and then we inserted or replace line 30 so instead of the director shall hire the Human Service Center Director, again we are just participating on the interview and we will be collaborating and replacing that with language regarding a study as to looking at options to consider allowing Human Services zones to opt in for state employment. He then continued with the amendments on the bill. Senator Hogan This is the whole payment formula stuff and this committee hasn’t really. But I think this committee should understand how if the formula going to be established because that will come up potentially. If you could just outline what’s in there in terms of the formula. As I’m looking at all those states do those dates still line up for you? I think the funding structure that we’ve got a lot of discussion and I think we’ve got a plan that is good but I think we should understand it. Jonathan Alm: What we’re going to be looking at is based on the Human Service most recently data on historical costs and income. Then we also may include the factors that outline the subsection 3. But it looks at the directors proposed budget for the Human Service zone. It may include expansion, in the scope of human services to insure kinship care, it talks about the family first prevention services act; looking at compensation equity and increases and again it ties back to the other language that we’ve inserted about working together and figuring out as an equitable package. Senator Roer: Do those dates still line up correctly for you? With the new step approach? Is the department providing the information not the other way around? (1:24:25) Jonathan Alm continues with the overview of proposed amendments. Senator Hogan: I understand what we’re talking about in terms of indirect cost is the cost of the states attorney’s and if you have one states’ attorney instead of three, you might actually save money or the auditors. You won’t have all the auditor’s cost. That’s where we may really get some savings on that. Jonathan Alm: Continued his overview of the proposed amendments. (1:26:48) That is the end of the amendments. Senator O. Larsen: I understand the funding part about the services, what is the reasoning by having the zone folks continue to be under the county instead of the state employees? What was that all about? Is it because that benefits are better or just make sense for the hierarchy what’s that scope about? Terry Traynor: From the county commissioner’s perspective concern particularly in the smaller counties with a stronger role for the board in employing their person that is going to


be calling the shots on service delivery. The likelihood of all the services being pulled into a regional center is less likely and they feel if we are going to go down this road they want to have as much control even though they know you have the control monetarily. There needs to be some degree local control and be local as possible and whenever there is a discussion about changing services those local people are at the table and it can’t just happen because it’s a state employee making the decision. That was probably the strongest point that they felt needed to change with the original draft. I think there is also the issue of, if you have the rest of the employees employed by the zone and the director who is making decision now and they aren’t doing a good job, and we’re going to have to terminate them, you’ve got a bit of a disconnect, because you have an employment issue where the zone board is the employer but someone else made the decision, so when you get to the grievance and appeal process it can get messier. Maybe it still is going to be messy but we felt that was cleaner. Senator O. Larsen: Interestingly enough we have been having a lot of interesting discussions about local control and county commissioners and it’s not just this, it’s just interesting. Sometimes, I think that sometime we have to say no. I am still thinking and perplexed. Chris Jones: I would say initially the departments position was they need to be state employees. If you didn’t insert the human factor of all this. So at the end of the day, if we’re keeping our eye on the prize we are really trying to improve human service delivery across the state. If this is what we have to do to build the team that is going to be out there, and I think it is just a matter of how do we continue to work together to build this culture. I feel the department and having those social service ops we can have the right level of control and collaboration between the state and the human service zone. I see this given the concern the counties have in creating a positive culture, I think I want to see us continue to see these pilot projects and make these change more than I am interested in what is this perception of control. Madam Chair Lee: I think this is a lot more local than the kind of disjointed current arrangement with the regional human service centers who are a part of the system, but there not always kind of working with the rest of the system. With those sorts of and everybody is working hard I am not, please don’t take it any other way, but there not. I see this as being a more direct connection, and that the county commissions will be in the loop and that the zones are going to be obviously a part of the county’s where county is part of the zones, and then there is the little more direct connection without these side bars that give part of the responsibilities to the Regional Human Service Center and hire it someplace else. So unless I am missing something, it seems to me in the long run, there is a better opportunity for local input from the county commissioners and from others in the zone areas this way than we have in the overall picture right now. Senator Hogan: I think it almost parallel to the district health units. I think that the District Health units have very strong local involvement in a multi-county kind of structure and has worked pretty effectively. In some ways its more similar to that. Kim Jacobson: From the County Director’s Association, perspective, it really does support our delivery model which is a state supervised locally administered system. So it just strengthens that model.


Senator O. Larsen: With the businesses I do and the range that I go from western North Dakota and seeing the delivery of services and seeing the disconnect on the tribal reservations and just in political subdivisions, I totally embrace that need for the services that need for services. So, when we moved to the transition of having the state taking that over so I totally embraced that part of it. So I am totally on board with this and it’s just that I am looking forward on seeing how this moves forward. It’s not that I against any of this here, I just thought it was interesting how that some of this is transitioning. Madam Chair Lee: Thank you Jonathan for going through all that. Not only this afternoon but all the work that you did during this home stretch especially when you weren’t feeling worth a hoot. So I am very grateful. I know everybody else is too. Senator Hogan: Do we want a motion with the two technical changes we saw on the date and the president’s chair. So there were two additional edits. We can do it then she has authority to do it. Madam Chair Lee: I think it would be a fine way to move forward. I just didn’t want anybody to feel like we were moving without having an opportunity for question and points. Senator Roers: I move that we adopt amendments as presented with the two or three technical adjustments. Seconded by Senator O. Larsen Senator Hogan: I think this is such a massive bill that when we get the Christmas tree I will read it line by line. I think this is a suburb amendment and I think you guys did a great job. Madam Chair Lee: What I want to do ultimately is put this information together and give it to Representative Wise, and Representative Rohr and Representative Devlin also, for a bit of a heads up before it gets on to their schedule. Senator Roers: When bills especially like this go over to the House, do you have that conversation with them to kind of give them the history of what we went through to get it to this point. You don’t do it with every bill, you just do with the more complicated. Madam Chair Lee: Roll call vote on amendment: 6 Yea, 0 Nay, 0 Absent Senator Roers: I would like a motion to do pass as amended and re-referred to appropriations 2nd Senator O. Larsen Roll call vote: 6 Yea, 0 Nay, 0 Absent Carrier: Madam Chair Lee Terry Traynor brought in the Christmas tree version of the bill for the senators to see. LC was printing the amendments for the committee.



SB 2124 4/2/2019

Job #34438 (04:21-15:22)

☐ Subcommittee





Minutes: No Attachments

Jonathan Alm: I know I responded back to your question on SB 2124, was there any additional questions you had regarding the human service zone redesign? Madam Chair Lee: What I had asked Mr. Alm about was that it had been sent out saying that the state would be able to veto or approve that the choice for the social services zone director and it came back to us with a greater number of employees that would be affected. Maybe you would like to explain that to everybody. Jonathan Alm: What we kind of do already is, HR receives the calls and they assist the counties currently right now regarding their hiring and firing of employees. If they have questions regarding the HR practice, we have staff on hand that assist them. They go through the criminal background checks and they advertise the jobs, not all counties use that service but the majority of them do so this would create the overall structure for the zones that we would be handling those process to keep it consistent throughout. What that also does too is by looking at how we have to move and modify because we can’t have a net increase with employees, we may find that a zone has maybe an extra two or three employees and so through attrition or if they want to move to a different zone we might have to seek an adjustment of those staff members as well. That is where having that authority to approve or disapprove because we just don’t want the zones to add FTE’s because they have an open position. We want to make sure it is the right fit in the right zone and what is needed so that is kind of the authority that we were looking for and needed for this. Senator Hogan: I’m getting a number of zone people who are really concerned about that and I have shared your response because I think that system of position monitoring has been in place since the 50’s so that is a well-established infrastructure so it is not new. They


appreciated you maintaining the same basic system. I have said publicly to them that this is a work in progress, and I think that as long as they perceive it as the current implemented system that has been in an establishment for 60 years, people were really comfortable with that. What is interesting to me is the people who are having the most difficulty with that section are the HR people in the counties who don’t know the merit system structure as well as the county social service people do because they have maintained that. There is a little discussion out there and you might hear about it but I am totally comfortable with it. The other issue that I think I have heard now is that there has been some discussion about changing home and community based services and I am getting lots of phone calls about that. Why don’t you explain what is going with that one. Jonathan Alm: Yes, there has been a lot of discussion and kind of what that came through is, while we worked on it through the house it was clear that the number of FTE’s that we requested for contingent to come over to the department was too high for their liking. They asked for us to review and reduce the amount of FTE’s and of course most of you know that the department of justice is looking into a couple matters regarding aging services. We looked at that as an opportunity that, we could provide a better consistency throughout the zones by moving those case managers only so there is only, what we consider, 64 FTE’s design case managers to the state and that will give the structure and the consistency that we need but yet still allow the counties to implement their local home and community based services. I think there is a lot of concern that we are going to end all those local services while SB2124 says no, part of the plan they have to submit it, they want to continue with those so there is a lot of languages that they are bypassing that is structured in SB 2124. There are a lot of concerns too that they will be out of a job or that they will move from their local communities, just because they are going to be state employees doesn’t mean that they are all going to move to Bismarck. Definitely we need those local folks in those local areas to perform those functions and so, we don’t see that as a change either. I think there is a lot of fear out there. Senator Hogan: And because this was added fairly late in the process, this was not on the table until the last two or three weeks. It was talked about but it wasn’t really clearly defined. Jonathan Alm: It previously wasn’t a bill draft when we looked at it and that the counties were aware of when we originally started with 500 FTE’s that we had looked at moving over. It has always been part of a conversation to eventually if they would come to the state I think it’s a matter of timing. Senator Hogan: If they are state employees are you moving them to the human service centers or are you keeping them in the zones and it is my understanding you are keeping them in the zones because you don’t want to change the basic infrastructure and you need local access particularly in rural areas. Madam Chair Lee: And I want it to work. Jonathan Alm: There was no discussion that we have had that we were going to move them out of the human service zones so we are still looking at keeping them local. If we do pilot projects and we go through there. Right now we know that Burleigh County is probably understaffed for that zone and so we might have to look at if there is another zone that has an extra FTE, they could supply or assist with that.


Senator Hogan: The other thing that you should be aware of is most of HCBS case managers and even their supervisors weren’t aware of the Department of Justice situation and they did not understand the complexity of what we are going to face and that was all helpful. Madam Chair Lee: I am confident that it will work because a lot of the partners in this have worked hard to get it to this place. Jonathan Alm: We all want it to succeed. Senator K. Roers: Do you know of what percentage of the state are we at now? How many different partnerships have formed etc.? Jonathan Alm: I know that we approved Gregs Nelson in the last month and i think there are other counties that are discussing or having discussions. I know Morton with Sioux and one or two other counties is having a discussion as well. Senator Hogan: I can answer some of that because there is a big meeting in the south central area, Jamestown and Valley City with all of their players. If you remember the map that was the one area that hasn’t ever worked together so well. There has been three kind of planning meetings before that big meeting and there is a big meeting maybe this week. That discussion, there has been a fair amount of hysteria in that area about change and we have had several meetings, they have lobbied Senator Grabinger about just kill the bill. We got those things settled. There is a lot of really detailed local discussion going on. Madam Chair Lee: The thing with Jamestown’s area is that, that was the first public health area collaborative and from what I have heard is very successful. They already did that sort of in the public health area so there is a pattern so to speak that they can follow and I don’t mean all the same parties are involved but it is working for them in the public health area so we ought to be able to see it working with a collaborative process in human services side as well. Senator Hogan: The other area that has had significant discussion is in the Dickinson, southwest counties. There is another area that has had pretty significant discussions just in the last month. Madam Chair Lee: I am excited about this I think it a remarkable proposal and one that we will hopefully be able to see through successfully. Jonathan Alm: I know the house, Representative Weisz did reach out to the department regarding some of his concerns so we assisted in preparing the amendments on his behalf and we prepared it in the view point of are we ok with the amendments. Madam Chair Lee: Excellent. Here is Mrs. Peterson so we can talk about electronic surveillance. Anything else for Jonathan before he has a chair? If not, thank you.

·' 19.8057.01001 Title.02000

Prepared by the Legislative Council staff for� \� Senate Human Services Committee

�\. \ February 7, 2019

� 'o PROPOSED AMENDMENTS TO SENATE BILL NO. 2124 '-., ""'ciQ

Page 1, line 1, replace "four" with "five"

Page 1, line 4, remove "and"

Page 1, line 4, after "14-09-19" insert ", 14-10-05, and 14-15-01"

Page 1, line 5, after "sections" insert "14-15-11, 14-15-12, and"

Page 1, line 5, after the second comma insert "subsection 3 of section 14-15-13, sections"

Page 1, line 6, replace the second "and" with ", 27-20-02,"

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Page 1, line 8, after "27-20-44" insert ", 27-20-45, 27-20-47"

Page 1, line 24, after "57-20-07.1" insert ", subsection 3 of section 57-20-07 .3"

Page 2, line 6, after the first semicolon insert "to provide a penalty;"

Page 2, line 6, after the third semicolon insert "to provide an expiration date;"

Page 3, line 28, after "chapters" insert "14-15,"

Page 3, line 29, after "27-20" insert an underscored comma

Page 4, line 2, after the first "the" insert "host"

Page 6, line 5, remove "zone"

Page 6, line 5, overstrike "budget" and insert immediately thereafter "zone's indirect costs"

Page 6, line 24, remove "board of county commissioners. If the board of county"

Page 6, replace lines 25 through 27 with "human service zone board for review. The human service zone director shall work with the department to achieve equitable compensation for all human service zone team members within the human service zone. The human service zone director shall notify appropriate host county staff of all staffing changes for administrative purposes.

3. For purposes of this section, "host county" means the county within the human service zone in which the human service zone administrative office is located and in which the human service zone team members are employed."

Page 9, after line 19, insert:

"SECTION 9. AMENDMENT. Section 14-10-05 of the North Dakota Century Code is amended and reenacted as follows:

Page No. 1 19.8057.01001

14-10-05. Assignment of children prohibited - Penalty.

No person, other than the parents, may assume the permanent care and custody of a child, unless authorized so to do by an order or decree of a court having jurisdiction, except that a parent, upon giving written notice to the department of human services and human service zone, may place that person's own child in the home of the child's grandparent, uncle, or aunt for adoption or guardianship by the person receiving the child. The child must be considered abandoned if proceedings for the adoption or guardianship of the child are not initiated by such relative within one year following the date of notice of placement. No parent may assign or otherwise transfer the parent's rights or duties with respect to the care and custody of the parent's child. Any such transfer or assignment, written or otherwise, is void. This section does not affect the right of the parent to consent in writing to the legal adoption of the parent's child, but such written consent does not operate to transfer any right in the child in the absence of a decree by a court having jurisdiction. Any person who violates the provisions of this section is guilty of a class A misdemeanor.

SECTION 10. AMENDMENT. Section 14-15-01 of the North Dakota Century Code is amended and reenacted as follows:

14-15-01. Definitions.

As used in this chapter, unless the context otherwise requires:

1. "Abandon" means:

a. As to a parent of a child not in the custody of that parent, failure by the noncustodial parent significantly without justifiable cause to:

(1) Communicate with the child; or

(2) Provide for the care and support of the child as required by law.

b. As to a parent of a child in that parent's custody:

(1) To leave the child for an indefinite period without making firm and agreed plans, with the child's immediate caregiver, for the parent's resumption of physical custody;

(2) Following the child's birth or treatment at a hospital, to fail to arrange for the child's discharge within ten days after the child no longer requires hospital care; or

(3) To willfully fail to furnish food, shelter, clothing, or medical attention reasonably sufficient to meet the child's needs.

2. "Adult" means an individual who is not a minor.

3. "Agency" means an entity licensed under chapter 50-12 to place minors for adoption.

4. "Child" means a son or daughter, whether by birth or adoption.

5. "Court" means the district court of this state, and when the context requires means the court of any other state empowered to grant petitions for adoption.

Page No. 2 19.8057.01001

·' 6. "Department" means the department of human services.

7. "Genetic parent" means the biological mother or adjudicated mother of the adopted child, or the presumed father or adjudicated father of the adopted child under chapter 14-20.

8. "Genetic sibling" means individuals with genetic relationship of sister, brother, half-sister, or half-brother.

9. "Human service zone" means a county or consolidated group of counties administering human services within a designed area in accordance with an agreement or plan approved by the department.

1Q,_ "Identifying" includes full name, address, date of birth, telephone number, or anything that may lead to the identity of any previously undisclosed individual.

�11. "Investigation" includes information obtained regarding the child's history, a preplacement adoption assessment of the prospective adoptive family, and an evaluation of the child's placement in the adoptive home.

4+.12.:. "Minor" means an individual under the age of eighteen years.

4-2-:-� "Nonidentifying adoptive information" means:

a. Age of genetic parent in years at the birth of the adopted child.

b. Heritage of genetic parent.

c. Educational attainments, including the number of years of school completed by genetic parent at the time of birth of the adopted child.

d. General physical appearance of genetic parent at the time of birth of the adopted child, including the height, weight, color of hair, eyes, skin, and other information of a similar nature.

e. Talents, hobbies, and special interests of genetic parents.

f. Existence of any other children born to either genetic parent.

g. Reasons for child being placed for adoption or for termination of parental right.

h. Religion of genetic parent.

i. Vocation of genetic parent in general terms.

j. Health history of genetic parents and blood relatives in a manner prescribed by the department.

k. Such further information which, in the judgment of the agency, will not be detrimental to the adoptive parent or the adopted individual requesting the information, but the additional information may not identify genetic parents by name or location.

43:-14. "Relative" means any individual having the following relationship to the minor by marriage, blood, or adoption: brother, sister, stepbrother, stepsister, first cousin, uncle, aunt, or grandparent.

Page No. 3 19.8057.01001

44-� "Stepparent" means an individual who is married to a parent of a child who has not adopted the child."

Page 9, line 22, overstrike "or" and insert immediately thereafter "and"

Page 9, line 22, overstrike "respondent" and insert immediately thereafter "respondents"



14-15-11. Notice of petition - Investigation and hearing.

1. a. After the filing of a petition to adopt a minor, the court shall fix a time and place for hearing the petition. At least twenty days before the date of hearing, notice of the filing of the petition and of the time and place of hearing must be given by the petitioner to the department and human service zone; any agency or individual whose consent to the adoption is required by this chapter but who has not consented; an individual whose consent is dispensed with upon any ground mentioned in subdivisions a, b, f, h, i, and j of subsection 1 of section 14-15-06 but who has not consented; and any individual identified by the court as a biological parent or a possible biological parent of the minor, upon making inquiry to the extent necessary and appropriate, as in proceedings under section 27-20-45, unless the individual has relinquished parental rights or the individual's parental rights have been previously terminated by a court. The notice to the department and human service zone must be accompanied by a copy of the petition.

b. Notice of the filing of a petition to adopt an adult must be given by the petitioner at least twenty days before the date of the hearing to each living parent of the adult to be adopted.

2. An investigation must be made by a licensed child-placing agency to inquire into the conditions and antecedents of a minor sought to be adopted and of the petitioner for the purpose of ascertaining whether the adoptive home is a suitable home for the minor and whether the proposed adoption is in the best interest of the minor.

3. A written report of the investigation must be filed with the court by the investigator before the petition is heard.

4. The report of the investigation must contain a review of the child's history; a preplacement adoption assessment of the petitioner, including a criminal history record investigation of the petitioner; and a postplacement evaluation of the placement with a recommendation as to the granting of the petition for adoption and any other information the court requires regarding the petitioner or the minor.

5. An investigation and report is not required in cases in which a stepparent is the petitioner or the individual to be adopted is an adult. The department and human service zone, when required to consent to the adoption, may give consent without making the investigation. If the petitioner is a relative other than a stepparent of the minor, the minor has lived with the petitioner

Page No. 4 19.8057.01001

for at least nine months, no allegations of abuse or neglect have been filed against the petitioner or any member of the petitioner's household, and the court is satisfied that the proposed adoptive home is appropriate for the minor, the court may waive the investigation and report required under this section.

6. The department and human service zone, when required to consent to the adoption, may request the licensed child-placing agency to conduct further investigation and to make a written report thereof as a supplemental report to the court.

7. After the filing of a petition to adopt an adult, the court by order shall direct that a copy of the petition and a notice of the time and place of the hearing be given to any individual whose consent to the adoption is required but who has not consented and to each living parent of the adult to be adopted. The court may order an appropriate investigation to assist it in determining whether the adoption is in the best interest of the individuals involved.

8. Notice must be given in the manner appropriate under the North Dakota Rules of Civil Procedure for the service of process in a civil action in this state or in any manner the court by order directs. Proof of the giving of the notice must be filed with the court before the petition is heard.


14-15-12. Required residence of minor.

1. A final decree of adoption may not be issued and an interlocutory decree of adoption does not become final, until the minor to be adopted, other than a stepchild of the petitioner, has lived in the adoptive home:

a. For at least six months after placement by an agency;

b. For six months after placement by a parent in accordance with an identified relinquishment under chapter 14-15.1;

c. As a foster child for at least six months and has been placed for adoption by an agency; or

d. For at least six months after the department and human service zone or the court has been informed of the custody of the minor by the petitioner, and the department and human service zone or the court has had an opportunity to observe or investigate the adoptive home.

2. If a child who has been placed for adoption dies before the six-month residency requirement of subsection 1 is met, the court may grant the final decree of adoption upon a finding that a proper and legitimate reason exists for granting the final decree.

SECTION 14. AMENDMENT. Section 14-15-12.1 of the North Dakota Century Code is amended and reenacted as follows:

Page No. 5 19.8057 .01001

14-15-12.1. Health insurance requirements for adoptees.

The department or child-placing agency involved in an adoption action may at any time before a final decree of adoption, if legal custody of the individual to be adopted is not held by the department, a county social service board, a child-placing agency, or an equivalent office or agency outside the state, require the petitioner for the adoption of another individual to show proof that a health insurance policy is in effect which provides coverage for the individual to be adopted. If proof of health insurance coverage is submitted by the petitioner, no further bond of any kind may be required by the department or a county social service board in regard to health coverage of the individual to be adopted."

Page 9, line 28, after the second comma insert "human service zone,"


"SECTION 16. AMENDMENT. Subsection 3 of section 14-15-13 of the North Dakota Century Code is amended and reenacted as follows:

3. If at the conclusion of the hearing, the court determines that the required consents have been obtained and that the adoption is in the best interest of the individual to be adopted, the court may:

a. Issue a final decree of adoption; or

b. Issue an interlocutory decree of adoption which by its own terms automatically becomes a final decree of adoption on a day specified in the decree, that day may not be less than six months nor more than one year after the minor was placed in the adoptive home by an agency or after the department and human service zone or the court was informed of the custody of the minor by the petitioner, unless sooner vacated by the court for good cause shown. In an interlocutory decree of adoption, the court shall provide for observation, investigation, and further report on the adoptive home during the interlocutory period."

Page 13, line 7, overstrike "Each"

Page 13, line 7, remove "human service zone director or the"

Page 13, line 8, replace "director's designee" with "The department of human services"

Page 13, line 13, replace "human service zone" with "department of human services"

Page 13, line 19, remove "human service"

Page 13, line 20, replace "zone director or the director's designee" with "department of human services"

Page 14, line 17, replace the second "�" with "an agreement or"

Page 15, line 17, remove the overstrike over "oounty sooial"

Page 15, line 17, remove "human"

Page 15, line 17, remove the overstrike over "beafG" and insert immediately thereafter "or human service"

Page No. 6 19.8057.01001

, after line 17, insert:



As used in this chapter:

1. "Abandon" means:

a. As to a parent of a child not in the custody of that parent, failure by the noncustodial parent significantly without justifiable cause:

(1) To communicate with the child; or

(2) To provide for the care and support of the child as required by law; or


(1) To leave the child for an indefinite period without making firm and agreed plans, with the child's immediate caregiver, for the parent's resumption of physical custody;



2. "Abandoned infant" means a child who has been abandoned before reaching the age of one year.

3. "Aggravated circumstances" means circumstances in which a parent:

a. Abandons, tortures, chronically abuses, or sexually abuses a child;

b. Fails to make substantial, meaningful efforts to secure treatment for the parent's addiction, mental illness, behavior disorder, or any combination of those conditions for a period equal to the lesser of:

(1) One year; or

(2) One-half of the child's lifetime, measured in days, as of the date a petition alleging aggravated circumstances is filed;

c. Engages in conduct prohibited under sections 12.1-20-01 through 12.1-20-08 or chapter 12.1-27.2, in which a child is the victim or intended victim;

d. Engages in conduct that constitutes one of the following crimes, or of an offense under the laws of another jurisdiction which requires proof of substantially similar elements:

(1) A violation of section 12.1-16-01, 12.1-16-02, 12.1-16-03, or 14-09-22 in which the victim is another child of the parent;

Page No. 7 19.8057.01001

(2) Aiding, abetting, attempting, conspiring, or soliciting a violation of section 12.1-16-01, 12.1-16-02, or 12.1-16-03 in which the victim is a child of the parent; or

(3) A violation of section 12.1-17-02 in which the victim is a child of the parent and has suffered serious bodily injury;

e. Engages or attempts to engage in conduct, prohibited under sections 12.1-17-01 through 12.1-17-04, in which a child is the victim or intended victim;

f. Has been incarcerated under a sentence for which the latest release date is:

(1) In the case of a child age nine or older, after the child's majority; or

(2) In the case of a child, after the child is twice the child's current age, measured in days;

g. Subjects the child to prenatal exposure to chronic or severe use of alcohol or any controlled substance as defined in chapter 19-03.1 in a manner not lawfully prescribed by a practitioner; or

h. Allows the child to be present in an environment subjecting the child to exposure to a controlled substance, chemical substance, or drug paraphernalia as prohibited by section 19-03.1-22.2.

4. "Child" means an individual who is:

a. Under the age of eighteen years and is not married; or

b. Under the age of twenty years with respect to a delinquent act committed while under the age of eighteen years.

5. "Custodian" means a person, other than a parent or legal guardian, who stands in loco parentis to the child or a person to whom legal custody of the child has been given by order of a court.

6. "Delinquent act" means an act designated a crime under the law, including local ordinances or resolutions of this state, or of another state if the act occurred in that state, or under federal law, and the crime does not fall under subdivision c of subsection 19.

7. "Delinquent child" means a child who has committed a delinquent act and is in need of treatment or rehabilitation.

8. "Deprived child" means a child who:

a. Is without proper parental care or control, subsistence, education as required by law, or other care or control necessary for the child's physical, mental, or emotional health, or morals, and the deprivation is not due primarily to the lack of financial means of the child's parents, guardian, or other custodian;

b. Has been placed for care or adoption in violation of law;

Page No. 8 19.8057.01001

c. Has been abandoned by the child's parents, guardian, or other custodian;

d. Is without proper parental care, control, or education as required by law, or other care and control necessary for the child's well-being because of the physical, mental, emotional, or other illness or disability of the child's parent or parents, and that such lack of care is not due to a willful act of commission or act of omission by the child's parents, and care is requested by a parent;

e. Is in need of treatment and whose parents, guardian, or other custodian have refused to participate in treatment as ordered by the juvenile court;

f. Was subject to prenatal exposure to chronic or severe use of alcohol or any controlled substance as defined in chapter 19-03.1 in a manner not lawfully prescribed by a practitioner;

g. Is present in an environment subjecting the child to exposure to a controlled substance, chemical substance, or drug paraphernalia as prohibited by section 19-03.1-22.2.

h. Is a victim of human trafficking as defined in title 12.1.

9. "Detention" means a physically secure facility with locked doors and does not include shelter care, attendant care, or home detention.

10. "Director" means the director of juvenile court or the director's designee.

11. "Fit and willing relative or other appropriate individual" means a relative or other individual who has been determined, after consideration of an assessment that includes a criminal history record investigation under chapter 50-11.3, to be a qualified person under chapter 30.1-27, and who consents in writing to act as a legal guardian.

12. "Home" when used in the phrase "to return home" means the abode of the child's parent with whom the child formerly resided.

13. "Host county" means the county within the human service zone in which the human service zone administrative office is located and in which the human service zone team members are employed.

� "Human service zone" means a county or consolidated group of counties administering human services within a designated area in accordance with an agreement or plan approved by the department.

15.,_ "Juvenile court" means the district court of this state.

44:1§,_ "Juvenile drug court" means a program established in a judicial district consisting of intervention and assessment of juveniles involved in forms of substance abuse; frequent drug testing; intense judicial and probation supervision; individual, group, and family counseling; substance abuse treatment; educational opportunities; and use of sanctions and incentives.

Page No. 9 19.8057.01001

4-&.-1L "Permanency hearing" means a hearing, conducted with respect to a child who is in foster care, to determine the permanency plan for the child which includes:

a. Whether and, if applicable, when the child will be returned to the parent;

b. Whether and, if applicable, when the child will be placed for adoption and the state will file a petition for termination of parental rights;

c. Whether and, if applicable, when a fit and willing relative or other appropriate individual will be appointed as a legal guardian;

d. Whether and, if applicable, to place siblings in the same foster care, relative, guardianship, or adoptive placement, unless it is determined that the joint placement would be contrary to the safety or well-being of any of the siblings;

e. Whether and, if applicable, in the case of siblings removed from their home who are not jointly placed, to provide for frequent visitation or other ongoing interaction between the siblings, unless it is determined to be contrary to the safety or well-being of any of the siblings;

f. In cases in which a compelling reason has been shown that it would not be in the child's best interests to return home, to have parental rights terminated, to be placed for adoption, to be placed with a fit and willing relative, or to be placed with a legal guardian, whether and, if applicable, when the child, aged sixteen or older, will be placed in another planned permanent living arrangement. The court shall:

(1) Ask the child whether the child has a desired permanency outcome of another planned permanent living arrangement,

(2) Make a judicial determination explaining why another planned permanent living arrangement is the best permanency plan for the child, and

(3) Identify the compelling reasons it continues not to be in the best interest of the child to return home, be placed for adoption, be placed with a legal guardian, or be placed with a fit and willing relative;

g. In the case of a child who has been placed in foster care outside the state in which the home of the parents is located, or if the parents maintain separate homes, outside the state in which the home of the parent who was the child's primary caregiver is located, whether out-of-state placements have been considered. If the child is currently in an out-of-state placement, the court shall determine whether the placement continues to be appropriate and in the child's best interests; and

h. In the case of a child who has attained age fourteen, the services needed to assist the child to make the transition to successful adulthood.

�.1§.,_ "Protective supervision" means supervision ordered by the court of children found to be deprived or unruly.

Page No. 10 19.8057.01001

4-7:-_liL "Relative" means:

a. The child's grandparent, great-grandparent, sibling, half-sibling, aunt, great-aunt, uncle, great-uncle, nephew, niece, or first cousin;

b. An individual with a relationship to the child, derived through a current or former spouse of the child's parent, similar to a relationship described in subdivision a;

c. An individual recognized in the child's community as having a relationship with the child similar to a relationship described in subdivision a; or

d. The child's stepparent.

4&20. "Shelter care" means temporary care of a child in physically unrestricted facilities.

4fh2..1.,_ "Unruly child" means a child who:

a. Is habitually and without justification truant from school;

b. Is habitually disobedient of the reasonable and lawful commands of the child's parent, guardian, or other custodian and is ungovernable or who is willfully in a situation dangerous or injurious to the health, safety, or morals of the child or others;

c. Has committed an offense applicable only to a child, except for an offense committed by a minor fourteen years of age or older under subsection 2 of section 12.1-31-03 or an equivalent local ordinance or resolution;

d. Has committed an offense in violation of section 5-01-08; or

e. Is under the age of fourteen years and has purchased, possessed, smoked, or used tobacco, tobacco-related products, electronic smoking devices, or alternative nicotine products in violation of subsection 2 of section 12.1-31-03; and

f. In any of the foregoing instances is in need of treatment or rehabilitation.

As used in this subsection, "electronic smoking devices" and "alternative nicotine products" have the same meaning as in section 12. 1-31-03.

�22. "Willfully" has the meaning provided in section 12.1-02-02. "

Page 17, replace lines 1 through 17 with:

"SECTION 26. AMENDMENT. Section 27-20-20.1 of the North Dakota Century Code is amended and reenacted as follows:

27-20-20.1. Petition to terminate parental rights -When brought -Definitions.

1. A petition to terminate parental rights may be made as provided under this section and section 27-20-45.

Page No. 11 19.8057.01001

2. Except as provided in subsection 3, a petition for termination of parental rights must be filed:

a. If the child has been in foster care, in the custody of the department or county social service board, or, in cases arising out of an adjudication by the court that a child is an unruly child, the division of juvenile services, for at least four hundred fifty out of the previous six hundred sixty nights;

b. Within sixty days after a court of competent jurisdiction has found the child to be an abandoned infant; or

c. Within sixty days after a court of competent jurisdiction has convicted the child's parent of one of the following crimes, or of an offense under the laws of another jurisdiction which requires proof of substantially similar elements:

(1) A violation of section 12.1-16-01, 12.1-16-02, or 12.1-16-03, or subsection 1 of section 14-09-22 in which the victim is another child of the parent;


(3) A violation of section 12.1-17-02 in which the victim is a child of the parent and has suffered serious bodily injury.

3. A petition for termination of parental rights need not be filed if :

a. The child is being cared for by a relative approved by the department in collaboration with the county social service board;

b. The department or county social service board has documented in the case plan a compelling reason for determining that filing such a petition would not be in the child's best interests and has notified the court that the documentation is available for review by the court; or

c. The department or county social service board has determined:

(1) Reasonable efforts to preserve and reunify the family are required under section 27-20-32.2 to be made with respect to the child;

(2) The case plan provides such services are necessary for the safe return of the child to the child's home; and

(3) Such services have not been provided consistent with time periods described in the case plan.

4. For purposes of subsection 2, a child in foster care entered foster care on the earlier of:

a. The date of the court's order if the court:

(1) Made a finding that the child has been subjected to child abuse or neglect;

Page No. 12 19.8057.01001

(2) Determined that it is unsafe or contrary to the welfare of the child to remain in the home; and

(3) Granted custody of the child to the department or county social service board or, in cases arising out of an adjudication by the court that a child is an unruly child, the division of juvenile services; or

b. The date that is sixty days after:

(1) The date of a hearing under section 27-20-17 which results in retaining a child in shelter care;

(2) The date of an order in a dispositional hearing under which a child is placed in foster care; or

(3) The date a child is placed in foster care voluntarily and with the consent of the child's parent.

5. For purposes of subsection 2, a child leaves foster care when:

a. The court enters an order:

(1) Denying a petition to grant care, custody, and control of the child to the departmentcounty social service board or the division of juvenile services;

(2) Terminating an order that granted custody of the child to the department, the county social service board, or the division of juvenile services; or

(3) Appointing a legal guardian under section 27-20-48.1;

b. The court order under which the child entered foster care ends by operation of law;

c. The child is placed in a parental home by the court or a legal custodian other than the division of juvenile services and the legal custodian lacks authority to remove the child without further order of the court; or

d. The child is placed in a parental home by the division of juvenile services.

6. For purposes of subsection 2, a child is not in foster care on any night during which the child is:

a. On a trial home visit;

b. Receiving services at the youth correctional center pursuant to an adjudication of delinquency; or

c. Absent without leave from the place in which the child was receiving foster care.

7. For purposes of this section:

a. "A finding that the child has been subjected to child abuse or neglect" means:

Page No. 13 19.8057.01001

(1) A finding of deprivation made under chapter 27-20; or

(2) A conviction of a person, responsible for a child's welfare, for conduct involving the child, under chapter 12.1-16 or sections 12.1-17-01 through 12.1-17-04 or 12.1-20-01 through 12.1-20-08.

b. "Compelling reason" means a recorded statement that reflects consideration of:

(1) The child's age;

(2) The portion of the child's life spent living in the household of a parent of the child;

(3) The availability of an adoptive home suitable to the child's needs;

(4) Whether the child has special needs; and

(5) The expressed wishes of a child age ten or older.

c. "Department" means the department of human services or its designee, including any county social service board.

SECTION 27. AMENDMENT. Section 27-20-20.1 of the North Dakota Century Code is amended and reenacted as follows:

27-20-20.1. Petition to terminate parental rights -When brought -Definitions.

1. A petition to terminate parental rights may be made as provided under this section and section 27-20-45.

2. Except as provided in subsection 3, a petition for termination of parental rights must be filed:

a. If the child has been in foster care, in the custody of the department._ human service zone, or county social service board, or, in cases arising out of an adjudication by the court that a child is an unruly child, the division of juvenile services, for at least four hundred fifty out of the previous six hundred sixty nights;

b. Within sixty days after a court of competent jurisdiction has found the child to be an abandoned infant; or

c. Within sixty days after a court of competent jurisdiction has convicted the child's parent of one of the following crimes, or of an offense under the laws of another jurisdiction which requires proof of substantially similar elements:

(1) A violation of section 12.1-16-01, 12.1-16-02, or 12.1-16-03, or subsection 1 of section 14-09-22 in which the victim is another child of the parent;


Page No. 14 19.8057.01001

(3) A violation of section 12. 1-17-02 in which the victim is a child of the parent and has suffered serious bodily injury.

3. A petition for termination of parental rights need not be filed if:

a. The child is being cared for by a relative approved by the department in collaboration with the county social service boardnnd human service zone;

b. The department. human service zone, or county social service board has documented in the case plan a compelling reason for determining that filing such a petition would not be in the child's best interests and has notified the court that the documentation is available for review by the court; or

c. The department or county social service board before January 1, 2021, or the human service zone has determined:

(1) Reasonable efforts to preserve and reunify the family are required under section 27-20-32.2 to be made with respect to the child;

(2) The case plan provides such services are necessary for the safe return of the child to the child's home; and



a. The date of the court's order if the court:

(1) Made a finding that the child has been subjected to child abuse or neglect;

(2) Determined that it is unsafe or contrary to the welfare of the child to remain in the home; and

(3) Granted custody of the child to the department. human service zone, or county social service board or, in cases arising out of an adjudication by the court that a child is an unruly child, the division of juvenile services; or


( 1) The date of a hearing under section 27-20-17 which results in retaining a child in shelter care;

(2) The date of an order in a dispositional hearing under which a child is placed in foster care; or

(3) The date a child is placed in foster care voluntarily and with the consent of the child's parent.

5. For purposes of subsection 2, a child leaves foster care when:

a. The court enters an order:

Page No. 15 19.8057.01001

(1) Denying a petition to grant care, custody, and control of the child to the eounty soeial serviee boardhuman service zone or the division of juvenile services;

(2) Terminating an order that granted custody of the child to the department, the eounty social serviee board .human service zone or the division of juvenile services; or

(3) Appointing a legal guardian under section 27-20-48.1;

b. The court order under which the child entered foster care ends by operation of law;

c. The child is placed in a parental home by the court or a legal custodian other than the division of juvenile services and the legal custodian lacks authority to remove the child without further order of the court; or

d. The child is placed in a parental home by the division of juvenile services.

6. For purposes of subsection 2, a child is not in foster care on any night during which the child is:

a. On a trial home visit;

b. Receiving services at the youth correctional center pursuant to an adjudication of delinquency; or

c. Absent without leave from the place in which the child was receiving foster care.

7. For purposes of this section:

a. "A finding that the child has been subjected to child abuse or neglect" means:

( 1) A finding of deprivation made under chapter 27-20; or

(2) A conviction of a person, responsible for a child's welfare, for conduct involving the child, under chapter 12.1-16 or sections 12.1-17-01 through 12.1-17-04 or 12.1-20-01 through 12.1-20-08.

b. "Compelling reason" means a recorded statement that reflects consideration of:

(1) The child's age;

(2) The portion of the child's life spent living in the household of a parent of the child;

(3) The availability of an adoptive home suitable to the child's needs;

(4) Whether the child has special needs; and


Page No. 16 19.8057.01001

c. "Department" means the department of human services or its designee, including any county social service board.

g,_ "Human service zone" means a county or consolidated group of counties administering human services within a designated area in accordance with an agreement or plan approved by the department."

Page 19, line 1, after "the" insert "human service zone and the"

Page 19, line 10, after "The" insert "human service zone and the"



27-20-38. Rights and duties of legal custodian.

A custodian to whom legal custody has been given by the court under this chapter has:

1. The right to the physical custody of the child and the right to determine the nature of the care, placement, and treatment of the child, including ordinary medical care as well as medical or surgical treatment for a serious physical condition or illness which in the opinion of a licensed physician requires prompt treatment, except for any limits the court may impose.

2. The right and duty to provide for the care, protection, training, and education and the physical, mental, and moral welfare of the child, subject to the conditions and limitations of the order and to the remaining rights and duties of the child's parents or guardian.

3. A duty within thirty days after the removal of a child from the custody of the parent or parents of the child for the purpose of placement into foster care, to exercise due diligence to identify and provide notice to the following relatives: all parents of a sibling of the child entering foster care who have legal custody of the sibling, all adult grandparents, and any other adult suggested by the parents, subject to exceptions due to family or domestic violence, that:

a. Specifies that the child has been or is being removed from the custody of the parent or parents of the child;

b. Explains the options the relative has under federal, state, and local law to participate in the care and placement of the child, including any options that may be lost by failing to respond to the notice;

c. Describes the requirements and standards to become a foster family home and the additional services and supports that are available for children placed in that home; and

d. Describes how the relative of the child may enter into an agreement with the department and county social service board to receive a subsidized guardianship payment.

4. For purposes of this section, "sibling of the child entering foster care" means:

Page No. 17 19.8057.01001

a. A brother or sister who has at least one biological or adoptive parent in common;

b. A fictive brother or sister with a significant bond as identified by the child or parent; or

c. A child that would have been considered a sibling but for the termination or other disruption of parental rights, including a death of a parent.


27-20-38. Rights and duties of legal custodian.

A custodian to whom legal custody has been given by the court under this chapter has:

1. The right to the physical custody of the child and the right to determine the nature of the care, placement, and treatment of the child, including ordinary medical care as well as medical or surgical treatment for a serious physical condition or illness which in the opinion of a licensed physician requires prompt treatment, except for any limits the court may impose.

2. The right and duty to provide for the care, protection, training, and education and the physical, mental, and moral welfare of the child, subject to the conditions and limitations of the order and to the remaining rights and duties of the child's parents or guardian.

3. A duty within thirty days after the removal of a child from the custody of the parent or parents of the child for the purpose of placement into foster care, to exercise due diligence to identify and provide notice to the following relatives: all parents of a sibling of the child entering foster care who have legal custody of the sibling, all adult grandparents, and any other adult suggested by the parents, subject to exceptions due to family or domestic violence, that:

a. Specifies that the child has been or is being removed from the custody of the parent or parents of the child;

b. Explains the options the relative has under federal, state, and local law to participate in the care and placement of the child, including any options that may be lost by failing to respond to the notice;

c. Describes the requirements and standards to become a foster family home and the additional services and supports that are available for children placed in that home; and

d. Describes how the relative of the child may enter into an agreement with the department and eounty soeial serviee boardhuman service zone to receive a subsidized guardianship payment.

4. For purposes of this section, "sibling of the child entering foster care" means:

a. A brother or sister who has at least one biological or adoptive parent in common;

Page No. 18 19.8057.01001

b. A fictive brother or sister with a significant bond as identified by the child or parent; or

c. A child that would have been considered a sibling but for the termination or other disruption of parental rights, including a death of a parent."



27-20-45. Proceeding for termination of parental rights.

1. The petition must comply with section 27-20-21 and state clearly that an order for termination of parental rights is requested and that the effect will be as stated in section 27-20-46.

2. If both of the natural parents of the child are not named in the petition either as petitioner or as respondent, the court shall cause inquiry to be made of the petitioner and other appropriate persons in an effort to identify an unnamed parent. The inquiry must include, to the extent necessary and appropriate, all of the following:

a. Whether any man is presumed to be the father of the child under chapter 14-20.

b. Whether the natural mother of the child was cohabiting with a man at the time of conception or birth of the child.

c. Whether the natural mother of the child has received from any man support payments or promises of support with respect to the child or in connection with her pregnancy.

d. Whether any person has formally or informally acknowledged or declared that person's possible parentage of the child.

e. Whether any person claims any right to custody of the child.

3. The court shall add as respondent to the petition and cause to be served with a summons any person identified by the court as an unnamed parent, unless the person has relinquished parental rights, or parental rights have been previously terminated by a court.

4. If the court, after inquiry, is unable to identify an unnamed parent and no person has appeared in the proceeding claiming to be an unnamed parent of the child or to have any right of custody of the child, the court shall enter an order terminating all parental rights of the unnamed parent with reference to the child and the parent and child relationship.

5. If a petition for termination of parental rights is made by a parent of the child under this section or if a parent consents to termination of parental rights under section 27-20-44, that parent is entitled under section 27-20-26 to legal counsel during all stages of a proceeding to terminate the parent and child relationship.

Page No. 19 19.8057 .01001

6. Subject to the disposition of an appeal, upon the expiration of thirty days after an order terminating parental rights is issued under this section, the order cannot be questioned by any person, including the petitioner, in any manner, or upon any ground, including fraud, misrepresentation, failure to give any required notice, or lack of jurisdiction of the parties or of the subject matter, unless the person retained custody of the child.

7. At least ten days before the petition is heard, the clerk of district court or juvenile court shall provide a copy of the petition and summons, if any, to the county social service board and the department of human services.


27-20-45. Proceeding for termination of parental rights.

1. The petition must comply with section 27-20-21 and state clearly that an order for termination of parental rights is requested and that the effect will be as stated in section 27-20-46.

2. If both of the natural parents of the child are not named in the petition either as petitioner or as respondent, the court shall cause inquiry to be made of the petitioner and other appropriate persons in an effort to identify an unnamed parent. The inquiry must include, to the extent necessary and appropriate, all of the following:

a. Whether any man is presumed to be the father of the child under chapter 14-20.

b. Whether the natural mother of the child was cohabiting with a man at the time of conception or birth of the child.

c . Whether the natural mother of the child has received from any man support payments or promises of support with respect to the child or in connection with her pregnancy.

d. Whether any person has formally or informally acknowledged or declared that person's possible parentage of the child.

e. Whether any person claims any right to custody of the child.

3. The court shall add as respondent to the petition and cause to be served with a summons any person identified by the court as an unnamed parent, unless the person has relinquished parental rights, or parental rights have been previously terminated by a court.

4. If the court, after inquiry, is unable to identify an unnamed parent and no person has appeared in the proceeding claiming to be an unnamed parent of the child or to have any right of custody of the child, the court shall enter an order terminating all parental rights of the unnamed parent with reference to the child and the parent and child relationship.

5. If a petition for termination of parental rights is made by a parent of the child under this section or if a parent consents to termination of parental rights under section 27-20-44, that parent is entitled under section

Page No. 20 19.8057 .01001

27-20-26 to legal counsel during all stages of a proceeding to terminate the parent and child relationship.

6. Subject to the disposition of an appeal, upon the expiration of thirty days after an order terminating parental rights is issued under this section, the order cannot be questioned by any person, including the petitioner, in any manner, or upon any ground, including fraud, misrepresentation, failure to give any required notice, or lack of jurisdiction of the parties or of the subject matter, unless the person retained custody of the child.

7. At least ten days before the petition is heard, the clerk of district court or juvenile court shall provide a copy of the petition and summons, if any, to the county social service boardhuman service zone and the department of human services.


27-20-47. Disposition upon termination of parental rights.

1. If, upon entering an order terminating the parental rights of a parent, there is no parent having parental rights, the court shall:

a. Commit the child to the custody of the executive director of the departrnent of hurnan servicescounty social service director or a licensed child-placing agency willing to accept custody for the purpose of placing the child for adoption or, in the absence thereof, in a foster home;

b. Appoint a fit and willing relative or other appropriate individual as the child's legal guardian; or

c. Establish some other planned permanent living arrangement.

2. The custodian has the rights of a legal custodian and authority to consent to the child's adoption, marriage, enlistment in the armed forces of the United States, and surgical and other medical treatment.

3. If the child is not placed for adoption within twelve months after the date of the order and a legal guardianship or other planned permanent living arrangement for the child has not been established by a court of competent jurisdiction, the child must be returned to the court issuing the original termination order for entry of further orders for the care, custody, and control of the child.


27-20-47. Disposition upon termination of parental rights.

1. If, upon entering an order terminating the parental rights of a parent, there is no parent having parental rights, the court shall:

a. Commit the child to the custody of the county social servicehuman service zone director or a licensed child-placing agency willing to

Page No. 21 19.8057.01001

accept custody for the purpose of placing the child for adoption or, in the absence thereof, in a foster home;

b. Appoint a fit and willing relative or other appropriate individual as the child's legal guardian; or

c. Establish some other planned permanent living arrangement.

2. The custodian has the rights of a legal custodian and authority to consent to the child's adoption, marriage, enlistment in the armed forces of the United States, and surgical and other medical treatment.

3. If the child is not placed for adoption within twelve months after the date of the order and a legal guardianship or other planned permanent living arrangement for the child has not been established by a court of competent jurisdiction, the child must be returned to the court issuing the original termination order for entry of further orders for the care, custody, and control of the child."

Page 22, line 1, after the fifth "the" insert "host"

Page 22, line 1, remove "in"

Page 22, line 2, remove "which the human service zone office is located"

Page 27, line 5, after "director" insert "or department of human services"

Page 28, line 3, replace "department of human services" with "human service zone board"

Page 28, line 4, replace "department of human services" with "human service zone board"

Page 28, line 10, after the underscored comma insert "or the director's designee."


Page 29, line 27, overstrike "service"

Page 29, line 27, replace "zone" with "department of human services"

Page 32, line 18, after "2." insert "''Host county" means the county within the human service zone in which the human service zone administrative office is located and in which the human service zone team members are employed.

;L"

Page 32, line 19, replace the second 1 1.§1 1 with "an agreement or"

Page 32, line 21, replace "3." with "4."

Page 32, line 21, replace "department employee" with "human service zone team member"

Page 32, line 22, replace "president" with "presiding officer"

Page 32, line 24, replace "4." with "5."

Page 32, line 27, replace "§.,_" with "6. "

Page 33, line 7, replace "�" with "L." Page 33, line 15, replace "7." with "8."

Page No. 22 19.8057.01001

, line 16, replace "proposal" with "agreement"

Page 34, line 17, remove "by September 15. 2019"

Page 34. line 17, overstrike ", together with a plan for the creation of'

Page 34, line 18, replace "a human service zone" with "no later than December 1. 2019. The agreement must identify the proposed counties of the human service zone. host county. and identify the human service zone board members. The department shall review and approve all agreements in accordance with section 50-01.1-03. The department may modify the agreements as specified in section 50-01.1-03 or if some of the counties are not included in a human service zone. If counties do not submit an agreement. the department shall create the human service zone"

Page 34. line 18, after "The" insert "board of county commissioners shall submit a"

Page 34, line 18, overstrike "must be prepared"

Page 34, line 19, after "50-01.1-04" insert "by June 1, 2020. The department shall approve the plan in accordance with section 50-01.1-04 by January 1. 2021. The board of county commissioners shall provide quarterly updates as requested by the department to the department after the agreement is approved until the plan is submitted as requested"

Page 34, line 20, replace "proposal" with "agreement and proposed plan"

Page 34, line 27, replace the first 1 1.9.1 1 with "an agreement and"

Page 35, line 6, remove ", who must remain"

Page 35, replace lines 7 through 20 with ". The counties' plan must specify any role transitions for human service zone team members as well as the procedures for team member grievances. appeals. and disciplinary actions. The counties' plan must also permit the department authority to reduce full-time equivalent positions in combination with a transfer of the positions. The component of the plan developed under this subsection must be consistent with merit system requirements. chapter 54-44.3 and corresponding rules, and the template developed by the department for the human service zone plans under section 50-06-01.4 .

.1Q,_ The counties· plan must specify that reductions in access points may only be made with agreement of the human service zone board, the county commissions of affected counties. and the department.

11. The counties· plan must include information regarding the human service zone's liability coverage for the human service zone board. human service zone director, human service zone team members. human service zone property, and any unique contractual relationships with the state. other human service zones, or other entities.

12.,_ Counties· plan must include a statement of agreement between the human service zone and the department allowing for review of proposed transfers of staff from the human service zone to the department. from the department to the human service zone. or among other human service zones. Approval by human service zone board or the county commissions is not required.

Page No. 23 19.8057.01001

.1l,_ Counties' plan must include a description of all unique locally-provided programs and services that the counties are proposing to continue to provide within the human service zone and to be funded under this plan.

j_A,_ Counties' agreement and plan must set forth the membership of the human service zone board of a human service zone. The human service zone board may not consist of more than fifteen members, as determined by the boards of county commissioners."

Page 37, line 2, replace "December 1 , 201 9" with "January 1 , 2020"

Page 39, line 28, replace "proposed or budgeted" with "approved by the department"

Page 39, line 29, replace "or" with "and"

Page 40, line 13, replace "and" with "or"

Page 40, line 13, after "department" insert ", or both"

Page 40, line 1 4, after the first "the" insert "host"

Page 40, after line 1 7 insert "host"

Page 40, line 1 8, remove "in which the human service zone office is located"

Page 40, line 20, overstrike "audit" and insert immediately thereafter "establish procedures for the review and approval of'

Page 40, line 21, after "director" insert "or designee"

Page 40, line 23, replace ", for the county in which the human service zone office is located" with "of the host county"

Page 4 1 , line 1 , overstrike "3. The"

Page 4 1 , line 1 , remove "human service zone"

Page 41, line 1, overstrike "board of a"

Page 41, line 1 , remove the second "human"

Page 4 1 , line 1 , overstrike "service"

Page 4 1 , line 2, remove "zone"

Page 4 1 , line 2, overstrike "consists of not more than fifteen members, as determined by the plan. The"

Page 41, overstrike line 3

Page 41, line 4, overstrike "appointed by each county within the"


Page 4 1 , line 4, overstrike "service"

Page 41 , line 22, remove "zone"

Page 4 1 , line 22, overstrike the period


Page No. 24 19.8057.01001

"R Employ a human service zone director who shall serve as the presiding officer of the human service zone board.

� Collaborate with the department and other human service zones to ensure the provision of quality, effective, and efficient human services to the citizens of North Dakota."


"Human service zone directors: "

Page 42, line 26, replace "department of human services" with "human service zone"


Page 43, line 2, replace "county" with "human service zone board"

Page 43, line 2, after the first "of' insert "approved and funded"

Page 43, line 2, remove "approved by the board of'

Page 43, line 3, remove "county commissioners of the county by which the staff position is employed"

Page 43, line 4, replace "county commissioners or other" with "the department and"

Page 43, line 4, after "appropriate" insert "host"

Page 43, line 8, after "commissioners" insert ", the human service zone board,"


"7. Shall establish, in partnership with the department, equitable compensation for all human service zone team members within established appropriation.

8. Shall develop a budget for the human service zone in partnership with the department and other human service zone directors to ensure the administration of human services.

9. May serve as a designee of the department to supervise department employees assigned to or located within the human service zone.

1Q,_ Are the custodian designees of the executive director of the department for any child in the custody of the department."

Page 43, line 22, after "2." insert "The department shall develop a system of progressive discipline to address performance issues within the human service zone. The system shall reserve the most serious actions for severe or chronic failure to meet the standards adopted under subsection 1.

3. The department shall provide ongoing performance notifications to the human service zone board and human service zone director related to the overall compliance with the standards of administration.


Page No. 25 1 9 . 8057 .0 1 001

"sh Recommend disciplinary action to the human service zone director or the human service zone board.

SECTION 70. A new section to chapter 50-01.1 of the North Dakota Century Code is created and enacted as follows:

Human service zone director hiring.

The department must be an active participant in the hiring process of the human service zone director and shall designate at least two individuals to participate on the interview panel. "

Page 44, line 2, remove the overstrike over the overstruck colon

Page 44, line 3, remove the overstrike over "+.

Page 44, line 3, remove '"'department'"'


"Department""

"2. "Host county" means the county within the human service zone in which the human service zone administrative office is located and in which the human service zone team members are employed. "

Page 45, line 8, remove "from the human service zone"

Page 45, line 9, replace the first "board" with "a vice presiding officer and appoint"


Page 45, line 26, replace "of forty-five dollars per day, not to exceed twenty-five days in any one year" with "established by the host county commission, upon consultation with the other county commissions in the human service zone, consistent with the rate of compensation for members of other appointed boards within the member counties and not to exceed the compensation and expense reimbursement of members of the legislative assembly"

Page 46, line 21, replace "Audit" with "Establish procedures for the review and approval of'


"5. Hire, supervise, and take other personnel actions related to the human service zone director with direct consultation and involvement from the department. Employment must be consistent with the provisions of any law, rule, order, or regulation of the United States or any federal agency or authority requiring civil service or merit standards or classifications as a condition for providing funds administered by the department. A human service zone director must be hired by April 1, 2020.

§_,_ Hear and act on employee grievances in accordance with the human service zone plan and in compliance with merit system requirements. "

Page 49, line 6, after "The" insert "appointing"


Page 50, line 15, after the third comma insert "quality control,"


Page No. 26 19.8057.01001

"3. By August 1. 2019. the department shall establish a template for the development of human service zone plans. including process and content requirements. access point expectations. client grievances procedures. human resources. and locally funded programs or services and how those services will be addressed.

4. The department shall develop. with assistance from the North Dakota association of counties. a process for consultation and technical assistance for human service zone working groups by August 1. 201 9."

Page 57, line 6, after "zone" insert ". unless otherwise directed or determined by the department"

Page 59, line 13, after "The" insert "executive"

Page 59, line 13, after "director" insert "of the department"


Page 62, line 2, overstrike the period and insert immediately thereafter ": and

L. Programs and services unique to the human service zone which have been included in the approved human service zone plan."

Page 63, line 15, replace the second "g_" with "an agreement or"

Page 68, line 1, after "budget" insert ". approved by the state agency."



Page 86, line 11, overstrike "county social service"

Page 86, line 12, overstrike "board" and insert immediately thereafter "human service zone"

Page 87, line 3, overstrike "of human services"



Page 94, line 11, overstrike "director of the regional human service center" and insert immediately thereafter "human service zone director who shall serve as presiding officer"

Page 94, line 12, overstrike "with the consent of the"

Page 94, line 13, overstrike "director of the"


Page 94, line 13, overstrike "service"

Page 94, line 13, remove "zone"

Page 94, line 18, overstrike "shall" and insert immediately thereafter "may"



Page No. 27 19.8057.01001

, line 29, replace "department employee" with "human service zone team member"


Page 98, line 20, after "Application" insert "- Study"

Page 98, line 30 replace "the director shall hire the human service zone director." with "During the 2019-20 interim, the department shall consider options for allowing a human service zone to opt in to state employment. The study must identify under what conditions a transition to state employment may be desirable for a human service zone: outline the governance process for choosing to opt in to state employment, including a description of the role of the human service zone board, county commissions, and the department: and include a template and potential timeline for any zone choosing to make the transition to state employment."

Page 100, line 15, after the underscored period insert "The spending authority of the human service zone must be increased based on the approved, adjusted, or modified formula payment."


"SECTION 135. AMENDMENT. Subsection 3 of section 57-20-07.3 of the North Dakota Century Code is amended and reenacted as follows:

3. The amount of credit is determined by multiplying the company's assessed tax by a fraction, the numerator of which is the total of all formula payments calculated for the subsequent calendar year under section 60 34 0350-35-03 and the denominator of which is the total statewide ad valorem property tax levied in the prior taxable year."

Page 109, line 3, replace "twenty-eight" with "twenty-three"


Page 109, line 30, replace "Nineteen" with "Four"

Page 109, line 30, after "zone" insert "operational"

Page 109, line 31, replace "of' with "to provide supervision and technical assistance to"


"i. Ten full-time equivalent positions to serve as quality control to the human service zones."

Page 110, line 27, replace "50" with "64"



Page 110, line 28, replace "and 119" with "134, and 135"

Page 110, line 29, replace "46" with "13, 15, 16 through 25, 27 through 30, 32, 33, 35, 37 through 60"

Page 11 0, line 29, replace "51" with "65"

Page 110, line 29, replace "591 1 with "74"

Page No. 28 19.8057.01001

, line 29, replace "61" with "76"












"SECTION 142. EXPIRATION DATE. Sections 14, 26, 31, 34, and 36 of this Act are effective through December 31, 2019, and after that date are ineffective."


Renumber accordingly

Page No. 29 19.8057.01001

201 9 SENATE STANDING COMMITTE E ROLL CALL VOTES

BILL/RESOLUTION NO. :J l ,l L{

Date: ;)/&/lq Rol l Cal l Vote #: )

Senate Human Services Committee

D Subcommittee

Amendment LC# or Description: ____ /6/_' _. �80_5"_7_. �Dc..._/_D_O_I _________ _

Recommendation: J2ff. Adopt Amendment D Do Pass D Do Not Pass D Without Committee Recommendation

Other Actions:

D As Amended D Rerefer to Appropriations D Place on Consent Calendar D Reconsider D

Motion Made By :5eifl /(. �CJe { 5 Seconded By 5tn . t) . L q ( �f)

Senators Yes No Senators Yes Chair Lee ;( Senator Hogan Vice Chair Larsen Senator Anderson Senator Clemens Senator Roers :J.

(Yes) No -0

No

Total

Absent ______ () _____ _

Floor Assignment

If the vote is on an amendment, briefly indicate intent:

Senate Human Services

2019 SENATE STANDING COMMITTEE ROLL CALL VOTES

BILL/RESOLUTION NO. ;) I:) L-(

D Subcommittee

Amendment LC# or Descript ion :

Date: :). /(.e /l C{ Rol l Cal l Vote #: �

Committee

-----------------------Recommendation : D Adopt Amendment

l)(' Do Pass D Do Not Pass _kf As Amended D Place on Consent Calendar

Other Actions: D Reconsider

D Without Committee Recommendation _Jlf Rerefer to Appropriations

D

Motion Made By Sen . lL · (Uk: r5 Seconded By

Senators Yes No Senators Yes No Chair Lee ")!. Senator Hogan Vice Chair Larsen x Senator Anderson "}(

Senator Clemens 'x Senator Roers -,/

Total

Absent

(Yes) /,,... No _____ (V _____ ---------------

______ D Floor Assignment


Com Standing Committee Report February 8, 201 9 8 :26AM

Modu le ID : s_stcomrep_25_002 Carrier: J . Lee

Insert LC: 1 9 .8057.0 1 001 Title : 02000

REPORT OF STANDING COMMITTEE SB 2 1 24: Human Services Committee (Sen. J . Lee, Cha i rman) recommends

AMENDMENTS AS FOLLOWS and when so amended , recommends DO PASS and BE REREFERRED to the Appropriations Committee (6 YEAS, 0 NAYS , 0 ABSENT AN D NOT VOTI NG) . SB 2 1 24 was p laced on the S ixth order on the calendar.

Page 1 , l i ne 1 , rep lace "four" with "five"

Page 1 , l i ne 4, remove "and"

Page 1 , l ine 4 , after " 1 4-09-1 9" insert " , 1 4-1 0-05, and 1 4-1 5-0 1 "

Page 1 , l i ne 5 , after "sections" insert " 1 4-1 5-1 1 , 1 4-1 5-1 2 , and"

Page 1 , l i ne 5 , after the second comma i nsert "subsection 3 of section 1 4- 1 5-1 3 , sections"

Page 1 , l i ne 6, replace the second "and" with " , 27-20-02 , "

Page 1 , l i ne 7 , remove "subsection 7 of section"

Page 1 , l ine 7 , remove "sections"

Page 1 , l i ne 7 , after "27-20-30" insert a comma

Page 1 , l i ne 8 , after "sections" insert "27-20-38 , "

Page 1 , l i ne 8 , after "27-20-44" insert " , 27-20-45, 27-20-47"

Page 1 , l i ne 24, after "57-20-07. 1 " i nsert " , subsection 3 of section 57-20-07 . 3"

Page 2 , l i ne 6 , after the fi rst semicolon i nsert "to provide a penalty ; "

Page 2 , l i ne 6 , after the th ird semicolon insert "to provide an expi ration date ; "

Page 3 , l i ne 28 , after "chapters" insert " 1 4-1 5,"

Page 3, l i ne 29, after "27-20" insert an underscored comma

Page 4, l i ne 2 , after the first "the" i nsert "host"

Page 6 , l i ne 5 , remove "zone"

Page 6, l i ne 5, overstrike "budget" and i nsert immediate ly thereafter "zon e's i nd i rect costs"

Page 6, l i ne 24, remove "board of county commissioners . If the board of county"

Page 6, rep lace l ines 25 through 27 with "human service zone board for review. The h uman service zone d i rector sha l l work with the department to ach ieve equ itab le compensation for a l l human service zone team members with i n the h uman service zone. The human service zone d irector sha l l notify appropriate host coun ty staff of a l l staffing changes for admin istrative purposes .

� For purposes of this section, "host county" means the cou nty with in the human service zone i n which the h uman service zone adm in istrative office is located and in which the human service zone team members are employed . "

Page 9 , after l i ne 1 9 , insert:

( 1 ) DESK (3) COMMITTEE Page 1 s_stcomrep_25_002

Com Standing Committee Report February 8, 201 9 8 : 26AM

Module ID: s_stcomrep_25_002 Carrier: J. Lee

Insert LC : 1 9 .8057.01 001 Title : 02000

"S ECTION 9. AMENDMENT. Section 14-1 0-05 of the North Dakota Century Code is amended and reenacted as fol lows:

1 4-1 0-05 . Assignment of ch i ldren prohibited - Pena lty.

No person , other than the parents, may assume the permanent care and custody of a ch i l d , u n less authorized so to do by an order or decree of a cou rt having j u risd iction , except that a parent , upon g iv ing written notice to the department of human services and human service zone , may place that person's own ch i ld i n the home of the ch i ld 's g randparent, u ncle, or aunt for adoption or guard iansh i p by the person receivi ng the ch i ld . The chi ld must be considered abandoned if proceed ings for the adoption or guard iansh ip of the ch i ld are not i n itiated by such relative with in one year fol lowing the date of notice of placement. No parent may ass ign or otherwise transfer the parent's rights or duties with respect to the care and custody of the parent's ch i ld . Any such transfer or assignment, written or otherwise , is void . This sect ion does not affect the r ight of the parent to consent i n writing to the legal adoption of the parent's chi ld , but such written consent does not operate to transfer any rig ht i n the ch i ld in the absence of a decree by a court having ju risd iction . Any person who vio lates the provis ions of this section is gu i lty of a class A misdemeanor.

SECTION 1 0. AMENDMENT. Section 14-1 5-0 1 of the North Dakota Century Code is amended and reenacted as fol lows:

1 4-1 5-01 . Defin it ions.

As used i n th is chapter, un less the context otherwise requ i res:

1 . "Abandon" means:

a . As to a parent of a ch i ld not i n the custody of that parent, fa i l u re by the noncustod ia l parent s ign ificantly without justifiable cause to :

( 1 ) Commun icate with the ch i ld ; or

(2) Provide for the care and support of the ch i ld as requ i red by law.

b . As to a parent of a ch i ld i n that parent's custody:

( 1 ) To leave the ch i ld for an indefin ite period without making firm and agreed plans, with the chi ld 's immediate careg iver, for the parent's resumption of physical custody;

(2) Fol lowing the ch i ld's birth or treatment at a hospita l , to fa i l to arrange for the ch i ld's d ischarge with i n ten days after the ch i ld no longer requ i res hospital care ; or

(3) To wi l lfu l ly fa i l to fu rn ish food , she lter, cloth ing , or medica l attention reasonably sufficient to meet the chi ld 's needs.

2. "Adu lt" means an i nd iv idual who is not a minor.

3 . "Agency" means an entity l icensed under chapter 50- 1 2 to place m inors for adoption .

4 . "Ch i ld" means a son or daughter, whether by birth o r adoption .

5 . "Cou rt" means the d istrict court o f this state, and when the context requ i res means the court of any other state empowered to g rant petit ions for adoption .

6 . "Department" means the department of human services.



Module ID : s_stcomrep_25_002 Carrier: J. Lee

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7. "Genetic parent" means the biolog ical mother or adjud icated mother of the adopted ch i l d , or the presumed father or adjud icated father of the adopted ch i ld under chapter 1 4-20 .

8 . "Genetic s ib l ing" means ind ividuals with genetic re lationsh ip o f s ister, brother, half-sister, or ha lf-brother.

9 . "H uman service zone" means a cou nty or consol idated group of counties adm in istering human services with in a designed area i n accordance with an agreement or plan approved by the department.

1Q.. " Identify ing" inc ludes fu l l name, add ress, date of b i rth , te lephone number, or anyth ing that may lead to the identity of any previously und isclosed i nd ividua l .

4-{h.11. " Investigation" inc ludes information obta ined regard ing the ch i ld 's h istory, a preplacement adoption assessment of the prospective adoptive fam i ly, and an evaluation of the chi ld 's p lacement i n the adoptive home.

44-:-11,_ "Minor" means an i nd ividua l under the age of eighteen years .

4-2,.� "Non identifying adoptive information" means:

a . Age of genetic parent i n years at the b i rth of the adopted ch i ld .

b . Heritage of genetic parent.

c . Educational atta inments , inc lud ing the number of years of school completed by genetic parent at the t ime of b i rth of the adopted ch i ld .

d . General physical appearance of genetic parent a t the t ime of b i rth of the adopted ch i ld , inc lud ing the he ight, weight , color of ha i r, eyes, ski n , and other information of a s imi lar natu re .

e. Talents, hobbies, and special i nterests of genetic parents.

f. Existence of any other ch i ldren born to either genetic parent .

g. Reasons for chi ld being p laced for adoption or for term ination of parental rig ht.

h . Rel ig ion o f genetic parent.

i . Vocation of genetic parent i n general terms.

j . Hea lth h istory of genetic parents and blood relatives i n a manner prescribed by the department.

k. Such fu rther i nformation which , i n the j udgment of the agency, wi l l no t be detrimental to the adoptive parent or the adopted i nd ividua l requesting the information , but the add itiona l information may not identify genetic parents by name or location .

4-&.H,. "Relative" means any i nd ividua l having the fol lowing relationsh ip to the minor by marriage, blood , or adoption : brother, s ister, stepbrother, stepsister, first cousin , u ncle, aunt, or g randparent.

44.J _ _g_:. "Stepparent" means an ind ividua l who is married to a parent of a ch i ld who has not adopted the ch i ld . "

Page 9 , l i ne 22, overstrike "or' ' and insert immed iately thereafter "and"

( 1 ) DESK (3 ) COMMITTEE Page 3 s_stcomrep_25_002


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Insert LC : 1 9.8057.01 001 Title: 02000

Page 9 , l i ne 22, overstrike "respondent" and insert immed iately thereafter " respondents"

Page 9, after l i ne 22 , insert :

"SECTION 1 2. AMENDMENT. Section 1 4- 1 5-1 1 of the North Dakota Century Code is amended and reenacted as fol lows :

1 4-1 5-1 1 . Notice of petition - I nvestigation and hearing.

1 . a . After the fi l i ng of a petit ion to adopt a minor, the cou rt sha l l fix a time and p lace for hearing the petition . At least twenty days before the date of hearing , notice of the fi l ing of the petit ion and of the t ime and p lace of hearing must be g iven by the petitioner to the department and human service zone; any agency or ind ividual whose consent to the adoption is requ i red by this chapter but who has not consented ; an i nd iv idua l whose consent is d ispensed with upon any g round mentioned i n subd ivisions a , b , f , h , i , and j of subsection 1 of section 1 4- 1 5-06 but who has not consented ; and any ind iv idual identified by the cou rt as a biolog ica l parent or a possible biolog ical parent of the minor, upon making inqu i ry to the extent necessary and appropriate, as in proceedings u nder section 27-20-45, un less the ind iv idua l has re l i nqu ished parental rights or the ind iv idual 's parental rig hts have been previously terminated by a cou rt. The notice to the department and human service zone must be accompan ied by a copy of the petition .

b . Notice of the fi l i ng of a petit ion to adopt an adult must be g iven by the petitioner at least twenty days before the date of the hear ing to each l iv ing parent of the ad u lt to be adopted .

2 . An i nvestigation must be made by a l icensed ch i ld-placing agency to i nqu i re in to the cond it ions and antecedents of a minor sought to be adopted and of the petitioner for the purpose of ascerta in ing whether the adoptive home is a su itable home for the minor and whether the proposed adoption is in the best interest of the minor.

3 . A written report of the investigation must be fi led with the court by the investigator before the petition is heard .

4 . The report of the investigation must conta in a review of the ch i ld 's h istory; a preplacement adoption assessment of the petit ioner, inc lud ing a crim ina l h istory record i nvestigation of the petit ioner; and a postp lacement eva luation of the placement with a recommendation as to the g rant ing of the petition for adoption and any other i nformation the cou rt requ i res regard ing the petit ioner or the minor.

5 . An investigation and report is not requ i red in cases in which a stepparent is the petitioner or the ind iv idual to be adopted is an adu lt. The department and human service zone, when requ i red to consent to the adoption , may g ive consent without making the investigation . I f the petitioner is a re lative other than a stepparent of the minor, the minor has l ived with the petitioner for at least n ine months, no al legations of abuse or neglect have been fi led aga inst the petit ioner or any member of the petitioner's household , and the court is satisfied that the proposed adoptive home is appropriate for the minor, the court may waive the investigation and report requ i red under th is section .

6 . The department and human service zone, when requ i red to consent to the adoption , may request the l icensed chi ld-placing agency to conduct further investigation and to make a written report thereof as a supp lemental report to the court.


Com Stand ing Committee Report February 8, 201 9 8 : 26AM


Insert LC: 1 9.8057.01 00 1 Title : 02000

7 . After the fi l ing o f a petition to adopt an adu lt, t he court by order shal l d i rect that a copy of the petit ion and a notice of the t ime and p lace of the hearing be g iven to any ind iv idual whose consent to the adoption is requ i red but who has not consented and to each l iv ing parent of the adu lt to be adopted . The cou rt may order an appropriate investigation to assist it in determin ing whether the adoption is i n the best i n terest of the i nd ividuals involved .

8 . Notice must be g iven i n t he manner appropriate under t he North Dakota Ru les of C ivi l P rocedu re for the service of process in a civi l action in th is state or i n any manner the court by order d i rects . P roof of the g iv ing of the notice must be fi led with the court before the petit ion is heard .

SECTION 1 3. AMENDMENT. Section 1 4- 1 5-1 2 o f the North Dakota Century Code is amended and reenacted as fol lows:

1 4-1 5-1 2. Requ ired residence of m inor.

1 . A fina l decree of adoption may not be issued and an in te rlocutory decree of adoption does not become fina l , u nt i l the m inor to be adopted , other than a stepchi ld of the petitioner, has l ived in the adoptive home:

a . For at least s ix months after p lacement by an agency ;

b . For s ix months after p lacement by a parent in accordance with an identified rel i nqu ishment under chapter 1 4- 1 5 . 1 ;

c. As a foster ch i ld for at least six months and has been p laced for adoption by an agency; or

d. For at least six months after the department and h uman service zone or the court has been informed of the custody of the minor by the petitioner, and the department and human service zone or the court has had an opportun ity to observe or investigate the adoptive home.

2 . I f a ch i ld who has been p laced for adoption d ies before the six-month residency requ i rement of subsection 1 is met, the cou rt may g rant the fina l decree of adoption upon a find ing that a proper and leg it imate reason exists for g rant ing the fina l decree.

SECTION 1 4. AMENDMENT. Section 1 4- 1 5-1 2 . 1 of the North Dakota Centu ry Code is amended and reenacted as fol lows :

1 4-1 5-1 2 .1 . Health insurance requ i rements for adoptees.

The department or ch i ld-placing agency involved i n an adoption action may at any t ime before a final decree of adoption , if legal custody of the i nd iv idua l to be adopted is not held by the department, a county socia l service board, a ch i ld-placing agency, or an equ ivalent office or agency outs ide the state, requ i re the petitioner for the adoption of another ind iv idual to show proof that a health i nsurance pol icy is i n effect which provides coverage for the ind ividua l to be adopted . I f p roof of hea lth i nsurance coverage is submitted by the petitioner, no fu rther bond of any k ind may be requ i red by the department or a county socia l service board in regard to health coverage of the ind ividual to be adopted . "

Page 9 , l i ne 28 , after the second comma i nsert "human service zone,"

Page 1 0 , after l i ne 2 , i nsert:

"SECTION 1 6. AMENDMENT. Subsection 3 of section 1 4- 1 5-1 3 of the North Dakota Centu ry Code is amended and reenacted as fol lows:



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3. If at the conclus ion of the hearing , the court determ ines that the requ i red consents have been obtai ned and that the adoption is in the best interest of the i nd iv idua l to be adopted , the court may:

a . I ssue a fina l decree of adoption ; or

b . I ssue an interlocutory decree of adoption wh ich by its own terms automatica l ly becomes a fina l decree of adoption on a day specified in the decree, that day may not be less than six months nor more than one year after the minor was placed i n the adoptive home by an agency or after the department and human service zone or the court was i nformed of the custody of the minor by the petitioner, u n less sooner vacated by the court for good cause shown . In an interlocutory decree of adoption, the court sha l l provide for observation , i nvestigation , and fu rther report on the adoptive home during the interlocutory period . "

Page 1 3 , l i ne 7 , overstrike "Each"

Page 1 3 , l ine 7 , remove "human service zone d i rector or the"

Page 1 3 , l i ne 8, replace "d i rector's designee" with "The department of h uman services"

Page 1 3 , l i ne 1 3 , replace "human service zone" with "department of human services"

Page 1 3 , l i ne 1 9 , remove "human service"

Page 1 3 , l i ne 20 , rep lace "zone d i rector or the d i rector's designee" with "department of human services"

Page 14 , l i ne 1 7 , rep lace the second "§" with "an agreement or"

Page 1 5 , l i ne 1 7 , remove the overstrike over "county social"

Page 1 5 , l i ne 1 7 , remove "human"

Page 1 5 , l i ne 1 7 , remove the overstrike over "beafa" and insert immed iately thereafter "or human service"

Page 1 6 , after l i ne 1 7 , i nsert:

"SECTION 24. AMENDMENT. Section 27-20-02 of the North Dakota Century Code is amended and reenacted as fo l lows :

27-20-02. Defin itions.

As used i n th is chapter:


a. As to a parent of a ch i ld not i n the custody of that parent , fai l u re by the noncustod ia l parent s ign ificantly without justifiable cause:

( 1 ) To commun icate with the ch i ld ; or

(2) To provide for the care and support of the ch i ld as requ i red by law; or

b. As to a parent of a ch i ld i n that parent's custody:



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( 1 ) To leave the ch i ld for an indefin ite period without making firm and agreed plans, with the chi ld 's immediate careg iver, for the parent's resumption of phys ical custody;

(2) Fol lowing the chi ld 's b i rth or treatment at a hospita l , to fa i l to arrange for the chi ld's d ischarge with i n ten days after the ch i ld no longer requ i res hospita l care ; or

(3) To wi l lfu l ly fai l to fu rn ish food , shelter, cloth i ng , o r med ical attention reasonably sufficient to meet the ch i ld 's needs.

2 . "Abandoned infant" means a ch i ld who has been abandoned before reach ing the age of one year.

3 . "Aggravated circumstances" means circumstances i n wh ich a parent:

a . Abandons, tortures, chronical ly abuses, or sexual ly abuses a ch i ld ;

b . Fai ls to make substantial , mean ingfu l efforts to secure treatment for the parent's addiction , mental i l l ness, behavior d isorder, o r any combination of those cond itions for a period equa l to the lesser of:

( 1 ) One year; or

(2) One-half of the chi ld 's l i fet ime, measured in days, as of the date a petition a l leg ing agg ravated c ircumstances is fi led ;

c. Engages i n conduct proh ibited under sections 1 2 . 1 -20-0 1 th rough 1 2 . 1 -20-08 or chapter 1 2 . 1 -27 .2 , i n wh ich a ch i ld is the victim or in tended victim ;

d . Engages in conduct that constitutes one o f t he fol lowing crimes, or of an offense u nder the laws of another j u risdict ion which requ i res proof of substantia l ly s imi lar elements:

( 1 ) A violation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , 1 2 . 1 - 1 6-03 , o r 1 4-09-22 in which the victim is another ch i ld of the parent;

(2) Aid ing , abett ing , attempting , consp i ri ng , or sol icit ing a violation of section 1 2 . 1 -1 6-0 1 , 1 2 . 1 -1 6-02 , or 1 2 . 1 - 1 6-03 i n which the victim is a chi ld of the parent; or

(3) A violation of section 1 2 . 1 - 1 7-02 i n which the victim is a ch i ld of the parent and has suffered serious bod i ly i nj u ry;

e . Engages or attempts to engage i n conduct, proh ib ited u nder sections 1 2 . 1 - 1 7-0 1 th rough 1 2 . 1 -1 7-04 , i n wh ich a chi ld is the vict im or intended victim ;

f. Has been incarcerated u nder a sentence for which the latest release date is:

( 1 ) I n the case of a ch i ld age n i ne or o lder, after the ch i ld 's majority; or

(2) I n the case of a ch i ld , after the ch i ld is twice the ch i ld 's cu rrent age, measured i n days;

g. Subjects the chi ld to prenatal exposu re to chron ic or severe use of alcohol or any control led substance as defined i n chapter 1 9-03 . 1 in a manner not lawfu l ly prescribed by a practitioner; or




Insert LC: 1 9 .8057.01 001 Title: 02000

h . Al lows the chi ld to be present i n an environment subjecting the ch i ld to exposure to a control led substance , chemical substance, or d rug parapherna l ia as proh ibited by section 1 9-03. 1 -22 .2 .

4 . "Ch i l d " means an ind iv idual who is :

a. U nder the age of eighteen years and is not married ; or

b . U nder the age of twenty years with respect to a del inquent act committed wh i le under the age of eighteen years .

5 . "Custod ian" means a person , other than a parent or legal guard ian , who stands in loco parentis to the ch i ld or a person to whom legal custody of the ch i ld has been g iven by order of a court.

6 . "De l inquent act" means an act designated a crime under the law, includ ing local ord inances or resolutions of this state , or of another state if the act occurred in that state, or under federal law, and the crime does not fa l l under subdivision c of subsection 1 9 .

7 . "De l inquent chi ld" means a chi ld who has committed a del inquent act and is i n need of treatment or rehabi l itation .

8 . "Deprived ch i ld " means a ch i ld who:

a . I s without proper parental care or contro l , subsistence, education as requ i red by law, or other care or control necessary for the chi ld 's physica l , menta l , or emotional health , or morals, and the deprivation is not d ue primari ly to the lack of financial means of the ch i ld 's parents, g uard ian , or other custod ian ;

b . Has been p laced for care o r adoption in violation of law;

c. Has been abandoned by the ch i ld 's parents, guard ian , or other custod ian ;

d . I s without proper parental care, contro l , or education as requ i red by law, or other care and control necessary for the chi ld 's wel l-be ing because of the physica l , mental , emotional , or other i l l ness or d isabi l i ty of the chi ld 's parent or parents , and that such lack of care is not d ue to a wi l lfu l act of commiss ion or act of omission by the chi ld 's parents, and care is requested by a parent;

e. I s in need of treatment and whose parents, guard ian , or other custod ian have refused to participate in treatment as ordered by the juven i le court;

f. Was subject to prenatal exposure to chronic or severe use of a lcohol or any control led substance as defined in chapter 1 9-03. 1 i n a manner not lawfu l ly prescribed by a practit ioner;

g. I s present i n an environment subjecting the chi ld to exposu re to a control led substance, chem ical substance, or drug paraphernal ia as proh ib ited by section 1 9-03 . 1 -22 .2 .

h . I s a victim of human trafficki ng as defined i n title 1 2 . 1 .

9 . "Detention" means a physical ly secure faci l i ty with locked doors and does not inc lude shelter care, attendant care, or home detention .

1 0 . "D i rector" means the d i rector of j uveni le cou rt or the d i rector's designee.


Com Standing Committee Report February 8 , 201 9 8 :26AM


I nsert LC: 1 9.8057.01 001 Title : 02000

1 1 . "F it and wi l l ing relative or other appropriate i nd ividua l" means a relative or other ind ividua l who has been determined , after cons ideration of an assessment that inc ludes a crimina l h istory record investigation under chapter 50-1 1 . 3 , to be a qua l ified person under chapter 30 . 1 -27 , and who consents i n writi ng to act as a legal guard ian .

1 2 . "Home" when used in the phrase "to retu rn home" means the abode of the chi ld 's parent with whom the ch i ld formerly resided .

1 3 . "Host county" means the county with i n the human service zone i n wh ich the human service zone admin istrative office is located and in which the human service zone team members are employed .

11._ "H uman service zone" means a cou nty or consol idated group of counties admin istering human services with in a designated area in accordance with an agreement or plan approved by the department.

1§.. "J uven i le court" means the d istrict cou rt of th is state.

44.-1§.. "Juven i le d rug court" means a program estab l ished i n a jud icial d istrict consisting of intervention and assessment of juven i les i nvolved i n forms of substance abuse; frequent d rug testing ; i ntense jud ic ia l and probation supervision ; ind ivid ua l , g roup , and fami ly counsel i ng ; substance abuse treatment; educational opportun it ies; and use of sanct ions and incentives.

4&:-1L "Permanency hearing" means a hearing , conducted with respect to a ch i ld who is in foster care, to determ ine the permanency p lan for the ch i ld which inc ludes:

a. Whether and , if appl icable , when the ch i ld wi l l be retu rned to the parent;

b . Whether and, if appl icable, when the ch i ld wi l l be p laced for adoption and the state wi l l fi le a petit ion for termination of parenta l rig hts ;

c . Whether and , if appl icable , when a f i t and wi l l i ng re lative or other appropriate i nd ividua l wi l l be appointed as a legal g uard ian ;

d . Whether and , i f appl icable , to place s ib l ings in t he same foster care , relative, guard iansh ip , or adoptive p lacement, un l ess it is determ ined that the jo int p lacement wou ld be contrary to the safety or wel l-being of any of the s ib l ings ;

e. Whether and, if appl icable, i n the case of s ib l ings removed from their home who are not joint ly p laced, to provide for frequent visitation or other ongoing interaction between the s ib l ings , un less it is determined to be contrary to the safety or wel l-be ing of any of the sib l ings;

f. I n cases in which a compel l ing reason has been shown that it wou ld not be in the chi ld 's best interests to retu rn home , to have parental rights term inated , to be p laced for adoption , to be p laced with a fit and wi l l i ng relative , or to be placed with a legal guard ian , whether and, if appl icable, when the ch i ld , aged s ixteen or o lder, wi l l be p laced in another p lanned permanent l iv ing arrangement . The court sha l l :

( 1 ) DESK (3 ) COMMITTEE

( 1 ) Ask the ch i ld whether the ch i ld has a desired permanency outcome of another planned permanent l iv ing a rrangement,

Page 9 s_stcomrep_25_002

Com Standing Committee Report February 8 , 201 9 8 : 26AM


Insert LC: 1 9.8057.01 001 Title : 02000

(2) Make a jud ic ia l determination expla in ing why another planned permanent l iv ing arrangement is the best permanency plan for the ch i ld , and

(3) Identify the compel l ing reasons it contin ues not to be i n the best interest of the ch i ld to retu rn home, be placed for adoption , be placed with a legal guard ian , or be placed with a fit and wi l l i ng relative;

g . I n the case o f a ch i ld who has been placed in foster care outs ide the state in which the home of the parents is located , or if the parents mainta in separate homes, outside the state i n which the home of the parent who was the ch i ld's primary careg iver is located , whether out-of-state p lacements have been considered . If the chi ld is cu rrently i n an out-of-state p lacement, the court shal l determ ine whether the p lacement cont inues to be appropriate and in the chi ld 's best in terests ; and

h . I n the case of a ch i l d who has attai ned age fourteen , the services needed to assist the ch i ld to make the transit ion to successfu l adu lthood .

4-e-:-� "Protective supervis ion" means supervision ordered by the cou rt of ch i ldren fou nd to be deprived or unru ly.

4-7-:-� "Relative" means:

a. The chi ld 's g randparent, g reat-g randparent, s ib l i ng , ha lf-s ib l i ng , aunt, g reat-au nt, u ncle, great-uncle, nephew, n iece , or fi rst cous in ;

b . An i nd iv idual with a re lat ionship to the ch i ld , derived through a current or former spouse of the chi ld 's parent, s im i lar to a relationsh ip described i n subdivision a;

c. An i nd iv idua l recogn ized in the chi ld's commun ity as having a relationsh ip with the ch i ld s imi lar to a relationsh ip described i n subdivis ion a ; or

d . The ch i ld 's stepparent.

4&20 . "Shelter care" means temporary care of a chi ld i n physica l ly un restricted faci l it ies.

�� "Unru ly ch i ld" means a ch i ld who:

a . I s habitual ly and without justification truant from school ;

b . I s habitual ly d isobed ient of the reasonable and lawfu l commands of the ch i ld 's parent, g uard ian , or other custod ian and is ungovernable or who is wi l lfu l ly i n a situation dangerous or i nju rious to the health , safety, or morals of the ch i ld or others ;

c . Has committed an offense appl icable on ly to a ch i ld , except for an offense committed by a minor fourteen years of age or o lder under subsection 2 of section 1 2 . 1 -31 -03 or an equ ivalent local ord inance or resolut ion ;

d . Has committed an offense i n violation of section 5-0 1 -08; or

e . Is under the age of fourteen years and has purchased , possessed , smoked , or used tobacco, tobacco-related products, electron ic

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Insert LC: 1 9 .8057.01 001 Title : 02000

smoking devices, or a lternative n icoti ne p roducts i n v io lat ion of subsection 2 of section 1 2 . 1 -3 1 -03 ; and

f. I n any of the forego ing i nstances is i n need of treatment or rehabi l itation .

As used i n this subsection , "electron ic smoking devices" and "alternative n icot ine products" have the same mean ing as in sect ion 1 2 . 1 -3 1 -03 .

�22 . "Wi l lfu l ly" has the mean ing provided i n section 1 2 . 1 -02-02 . "

Page 1 7 , replace l i nes 1 through 1 7 with :

"SECTION 26. AMENDMENT. Section 27-20-20. 1 of the North Dakota Century Code is amended and reenacted as fol lows:

27-20-20.1 . Petition to terminate parental rights - When brought -Defin itions.

1 . A petition to term inate parental rights may be made as provided u nder th is section and section 27-20-45.

2 . Except as provided i n subsection 3 , a petition for term i nation of parental rights must be fi led :

a . I f the chi ld has been i n foster care, in the custody of the department or county social service board , or, i n cases a ris i ng out of an adjud ication by the cou rt that a ch i ld is an u n ru ly ch i ld , the d iv is ion of j uven i le services, for at least fou r hundred fifty out of the previous s ix h undred s ixty n ig hts;

b. With in sixty days after a court of competent j u risd iction has found the chi ld to be an abandoned infant; or

c. With i n sixty days after a cou rt of competent j urisd iction has convicted the chi ld's parent of one of the fol lowing crimes, or of an offense under the laws of another j urisd iction wh ich requ i res proof of substantia l ly s imi lar elements:

( 1 ) A violation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , o r 1 2 . 1 - 1 6-03, or subsection 1 of section 1 4-09-22 i n wh ich the victim is another ch i ld of the parent;

(2) Aid i ng , abett ing , attempting , consp i ri ng , or sol icit ing a violation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 i n wh ich the victim is a ch i ld of the parent; or

(3) A violation of section 1 2 . 1 -1 7-02 i n which the victim is a chi ld of the parent and has suffered serious bod i ly i nj u ry.

3 . A petit ion for term ination of parenta l rights need not be fi led if:

a. The chi ld is being cared for by a relative approved by the department i n col laboration with the county socia l service board ;

b . The department o r county social service board h a s documented i n the case p lan a compel l i ng reason for determ in i ng that fi l i ng such a petition wou ld not be i n the ch i ld 's best i nterests and has notified the court that the documentation is avai lab le for review by the court; or

c. The department or county social service board has determ ined :

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Insert LC: 1 9 .8057.01 001 Title : 02000

( 1 ) Reasonable efforts to preserve and reu n ify the fami ly are requ i red under section 27-20-32 .2 to be made with respect to the ch i ld ;

(2 ) The case plan provides such services are necessary for the safe return of the ch i ld to the chi ld's home; and

(3) Such services have not been provided consistent with time periods described i n the case p lan .

4 . For pu rposes of subsection 2 , a ch i ld in foster care entered foster care on the earl ier of:

a . The date of the court's order i f the cou rt:

( 1 ) Made a find ing that the chi ld has been subjected to ch i ld abuse or neglect;

(2) Determ ined that it is u nsafe or contrary to the welfare of the chi ld to remain i n the home; and

(3) Granted custody of the chi ld to the department or cou nty social service board or, i n cases aris ing out of an adjud ication by the court that a child is an unru ly ch i ld , the d ivis ion of juven i le services; or


( 1 ) The date of a hearing under section 27-20-1 7 which resu lts i n reta in ing a ch i l d in shelter care;

(2 ) The date of an order i n a dispositional hearing under wh ich a ch i ld is placed in foster care; or

(3) The date a chi ld is p laced in foster care voluntar i ly and with the consent of the chi ld's parent.

5. For pu rposes of subsection 2 , a ch i ld leaves foster care when :

a. The cou rt enters an order:

( 1 ) Denying a petit ion to grant care, custody, and control of the ch i ld to tho departmentcounty social service board or the d ivision of j uveni le serv ices;

(2) Terminati ng an order that granted custody of the ch i ld to the department, the county social service board, or the d iv is ion of j uven i le services ; or

(3 ) Appointing a legal guard ian under section 27-20-48 . 1 ;

b. The cou rt order under which the chi ld entered foster care ends by operation of law;

c . The chi ld is p laced in a parenta l home by the court or a legal custod ian other than the d ivis ion of juven i le services and the legal custod ian lacks authority to remove the chi ld without fu rther order of the court; or

d. The chi ld is p laced in a parenta l home by the d ivision of juven i le services.



Modu le ID : s_stcomrep_25_002 Carrier: J . Lee

Insert LC: 1 9.8057.01 00 1 Title : 02000

6. For purposes of subsection 2 , a ch i ld is not i n foster care on any n ight du ring wh ich the ch i ld is :

a . On a trial home visit ;

b. Receiving services at the youth correctiona l center pursuant to an adjud ication of del inquency; or

c. Absent without leave from the place in which the ch i ld was receiving foster care.

7 . For purposes of th is section :

a . "A find ing that the ch i ld has been subjected to chi ld abuse or neglect" means:

( 1 ) A find ing of deprivation made under chapter 27-20 ; or

(2) A conviction of a person , responsib le for a ch i ld 's welfare , for cond uct i nvolv ing the chi ld , u nder chapter 1 2 . 1 - 1 6 or sections 1 2 . 1 - 1 7-0 1 th rough 1 2 . 1 - 1 7-04 or 1 2 . 1 -20-0 1 th rough 1 2 . 1 -20-08.

b. "Compel l i ng reason" means a recorded statement that reflects consideration of:

( 1 ) The ch i ld 's age;

(2) The portion of the ch i ld 's l ife spent l iv ing i n the household of a parent of the ch i ld ;

(3) The avai lab i l ity of an adoptive home su itable to the ch i ld 's needs;

(4) Whether the chi ld has special needs; and

(5) The expressed wishes of a ch i ld age ten or o lder.

c. "Department" means the department of h uman services or its designee, includ ing any cou nty socia l service board .

SECTION 27. AMENDMENT. Section 27-20-20 . 1 of the North Dakota Century Code is amended and reenacted as fol lows :

27-20-20 .1 . Petition to terminate parenta l rights - When brought -Defin itions.

1 . A petition to term inate parental rights may be made as provided u nder th is section and section 27-20-45.

2 . Except as provided i n subsection 3 , a petit ion for term inat ion of parenta l rights must be fi led:

a. I f the chi ld has been in foster care , i n the custody of the department human service zone, or county social service board , or, i n cases aris ing out of an adjud ication by the cou rt that a ch i ld is an un ru ly ch i ld , the d ivision of juven i le services, for at least fou r hund red fifty out of the previous s ix hundred sixty n ights;

b. With in sixty days after a cou rt of competent j u risd iction has found the child to be an abandoned infant; or




Insert LC: 1 9.8057.01 001 Tit le: 02000

c. With i n s ixty days after a cou rt of competent ju risd iction has convicted the ch i ld 's parent of one of the fol lowing crimes , or of an offense under the laws of another j urisd iction which req u i res proof of substant ia l ly s im i lar elements :

( 1 ) A vio lation of section 1 2 . 1 - 1 6-01 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 -1 6-03 , or subsection 1 of section 1 4-09-22 in which the vict im is another ch i ld of the parent;

(2) Aid i ng , abett ing , attempting , conspi ring , or sol iciti ng a vio lation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 i n which the victim is a ch i ld of the parent; or

(3) A violation of section 1 2 . 1 - 1 7-02 i n which the victim is a ch i ld of the parent and has suffered serious bod i ly i nj u ry.

3 . A petition for termination o f parental rights need no t be fi led if:

a . The ch i l d is being cared for by a relative approved by the department in collaboration v,iith the county social service boardand human service zone;

b . The department. h uman service zone, or county social service board has documented i n the case plan a compel l i ng reason for determ in ing that fi l i ng such a petit ion wou ld not be i n the chi ld 's best i nterests and has notified the cou rt that the documentation is ava i lab le for review by the court; or

c. The department or county social service board before January 1 , 202 1 , o r the human service zone has determined:

( 1 ) Reasonable efforts to preserve and reu n ify the fam i ly are requ i red under section 27-20-32 .2 to be made with respect to the ch i ld ;

(2) The case plan provides such services are necessary for the safe retu rn of the chi ld to the chi ld's home; and

(3) Such services have not been provided consistent with t ime periods described i n the case plan .

4 . For pu rposes of subsection 2 , a ch i ld i n foster care entered foster care on the earl ier of:

a . The date of the court's order i f the court:

( 1 ) Made a find ing that the chi ld has been subjected to ch i ld abuse or neglect;

(2) Determ ined that it is u nsafe or contrary to the welfare of the chi ld to remain i n the home; and

(3) Granted custody of the chi ld to the department. human service zone, or county social service board or, i n cases aris ing out of an adjud ication by the court that a chi ld is an un ru ly ch i ld , the d iv is ion of j uven i le services; or

b . The date that is s ixty days after:

( 1 ) DESK (3) COMMITTEE

( 1 ) The date of a hearing under section 27-20-1 7 wh ich resu lts i n reta in ing a ch i l d i n she lter care;

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Insert LC: 1 9 .8057 .0 1 001 Title : 02000

(2) The date of an order in a d ispositiona l hear ing under which a chi ld is p laced in foster care; or

(3) The date a chi ld is p laced in foster care vo luntari ly and with the consent of the chi ld 's parent.

5 . For purposes of subsection 2 , a ch i l d leaves foster care when :

a . The court enters an order:

( 1 ) Deny ing a petition to g rant care, custody, and control of the chi ld to the oounty sooial servioe boardhuman service zone or the d ivis ion of j uven i le services;

(2) Term inating an order that g ranted custody of the ch i ld to the department, the oounty social servioe board , human service zone or the d ivision of juven i le services ; or

(3) Appoint ing a legal g uard ian under section 27-20-48 . 1 ;

b . The court o rder under which the ch i ld entered foster care ends by operation of law;

c . The ch i ld is p laced in a parental home by the court or a legal custod ian other than the d ivision of j uven i le services and the legal custod ian lacks authority to remove the chi ld without fu rther order of the court; or

d . The ch i ld is p laced in a parental home by the d iv is ion of juven i le services.

6 . For purposes of subsection 2 , a ch i ld is not in foster care on any n ight du ring wh ich the ch i ld is :

a . On a tria l home visit;

b. Receiving services at the youth correctiona l center pursuant to an adjud ication of del inquency; or

c . Absent without leave from the place in wh ich the ch i ld was receiving foster care.


a . "A finding that the ch i l d has been subjected to ch i ld abuse or neglect" means:

( 1 ) A find ing of deprivation made under chapter 27-20 ; or

(2) A conviction of a person , responsib le for a ch i ld 's welfare , for conduct i nvolv ing the ch i ld , under chapter 1 2 . 1 - 1 6 or sections 1 2 . 1 - 1 7-0 1 th rough 1 2 . 1 - 1 7-04 or 1 2 . 1 -20-0 1 th rough 1 2 . 1 -20-08.

b . "Compel l ing reason" means a recorded statement that reflects consideration of:

( 1 ) DESK (3) COMMITTEE

( 1 ) The ch i ld 's age;

(2) The portion of the chi ld's l ife spent l iv ing i n the household of a parent of the ch i ld ;

Page 15 s_stcomrep_25_002


Module ID: s_stcomrep_25_002 Carrier: J . Lee

Insert LC: 1 9 .8057.01 001 Title : 02000

(3) The avai lab i l ity of an adoptive home su itable to the ch i ld 's needs;

(4) Whether the chi ld has special needs; and

(5) The expressed wishes of a ch i ld age ten or older.

c . "Department" means the department of human services or its designee, inc lud ing any cou nty social service board .

g,_ "Human service zone" means a county or consol idated group of counties admin istering human services with i n a designated area i n accordance with an agreement or plan approved by the department. "

Page 1 9 , l i ne 1 , after "the" i nsert "human service zone and the"

Page 1 9 , l i ne 1 0 , after "The" insert "human service zone and the"

Page 20, after l i ne 1 0 , i nsert:

"SECTION 31 . AMENDMENT. Section 27-20-38 of the North Dakota Century Code is amended and reenacted as fo l lows:

27-20-38. Rights and duties of lega l custod ian.

A custod ian to whom legal custody has been g iven by the court under th is chapter has:

1 . The rig ht to the physical custody of the chi ld and the right to determ ine the natu re of the care, p lacement, and treatment of the ch i ld , includ ing ord i nary medical care as wel l as med ical or surg ical treatment for a serious physical cond it ion or i l l ness which in the op in ion of a l icensed phys ician requ i res prompt treatment, except for any l im its the cou rt may impose .

2 . The right and duty to provide for the care, protection , tra in ing , and education and the physica l , mental , and mora l welfare o f the ch i ld , subject to the cond it ions and l imitations of the order and to the remain ing rights and duties of the chi ld 's parents or guard ian .

3 . A d uty with i n th i rty days after the removal of a ch i ld from the custody of the parent or parents of the chi ld for the pu rpose of p lacement i nto foster care, to exercise d ue d i l igence to identify and provide notice to the fol lowing relatives: a l l parents of a s ib l ing of the chi ld entering foster care who have legal custody of the s ib l ing , a l l adult grandparents, and any other adu lt suggested by the parents , subject to exceptions d ue to fami ly or domestic violence, that:

a. Specifies that the chi ld has been or is being removed from the custody of the parent or parents of the ch i ld ;

b . Expla ins the options the relative has under federa l , state , and local law to participate in the care and placement of the ch i ld , inc lud ing any options that may be lost by fai l i ng to respond to the notice ;

c. Describes the requ i rements and standards to become a foster fami ly home and the add itional services and supports that are avai lab le for ch i ldren p laced in that home; and




Insert LC: 1 9 .8057.01 001 Title : 02000

d. Describes how the re lative of the chi ld may enter into an ag reement with the department and county socia l service board to receive a subsid ized guard iansh ip payment.

4. For purposes of this section , "s ib l i ng of the ch i ld enteri ng foster care" means:

a . A brother or s ister who has at least one biolog ical or adoptive parent i n common ;

b . A fictive brother or sister with a s ign ificant bond as identified by the chi ld or parent; or

c. A ch i ld that wou ld have been considered a s ib l i ng but for the term ination or other d isruption of parenta l rights, i ncl ud i ng a death of a parent.

SECTION 32. AMENDMENT. Section 27-20-38 of the North Dakota Century Code is amended and reenacted as fol lows:

27-20-38. Rights and duties of legal custod ian.

A custodian to whom lega l custody has been g iven by the cou rt u nder th is chapter has :

1 . The right to the physical custody of the ch i ld and the right to determ ine the nature of the care, p lacement, and treatment of the ch i l d , i ncl ud ing ord inary med ical care as wel l as med ical or surg ical treatment for a serious physical cond ition or i l l ness which i n the op in ion of a l icensed physician requ i res prompt treatment, except for any l im its the court may impose .

2 . The rig ht and duty to provide for the care, protection , train i ng , and education and the physica l , menta l , and mora l welfare of the ch i l d , subject to the cond it ions and l im i tations of the order and to the remain ing rights and duties of the chi ld 's parents or guard ian .

3 . A d uty with i n th i rty days after t he removal o f a ch i l d from the custody of the parent or parents of the ch i ld for the purpose of placement into foster care, to exercise due d i l igence to identify and provide notice to the fol lowing relatives: a l l parents of a s ib l ing of the ch i ld entering foster care who have legal custody of the s ib l i ng , a l l adu lt g randparents, and any other adu lt suggested by the parents, subject to exceptions d ue to fam i ly or domestic violence, that:

a. Specifies that the chi ld has been or is being removed from the custody of the parent or parents of the ch i ld ;

b. Explains the options the relative has u nder federa l , state, and local law to participate i n the care and placement of the ch i l d , i nc lud ing any options that may be lost by fai l i ng to respond to the notice ;

c. Describes the requ i rements and standards to become a foster fami ly home and the add itional services and supports that are ava i lab le for ch i ldren placed in that home; and

d . Describes how the re lative o f t he ch i ld may enter i nto an agreement with the department and county social service boardhuman service zone to receive a subsid ized guard iansh ip payment .

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Insert LC: 1 9.8057.01 001 Title : 02000

4. For pu rposes of this section , "s ib l ing of the child enteri ng foster care" means:

a . A brother or s ister who has at least one biolog ical or adoptive parent i n common ;

b . A fictive brother or sister with a sign ificant bond as identified by the ch i ld or parent; or

c . A ch i ld that wou ld have been considered a sib l ing but for the term ination or other d isruption of parenta l rights , inc luding a death of a parent. "


"SECTION 34. AMENDMENT. Section 27-20-45 of the North Dakota Century Code is amended and reenacted as fol lows:

27-20-45. Proceed ing for termination of parental rights.

1 . The petition must comply with section 27-20-2 1 and state clearly that an order for term ination of parental r ights is requested and that the effect wi l l be as stated i n section 27-20-46.

2. I f both of the natural parents of the ch i ld are not named in the petit ion either as petitioner or as respondent, the court shal l cause inqu i ry to be made of the petitioner and other appropriate persons i n an effort to identify an unnamed parent. The inqu i ry must inc lude, to the extent necessary and appropriate , al l of the fol lowing :

a . Whether any man is presumed to be the father of the ch i ld under chapter 1 4-20 .

b . Whether the natu ra l mother of the ch i ld was cohabit i ng with a man at the t ime of conception or b irth of the ch i ld .

c . Whether the natu ral mother of the ch i ld has received from any man support payments or prom ises of support with respect to the ch i ld or i n con nection with her pregnancy.

d . Whether any person has formal ly o r informal ly acknowledged o r declared that person's possib le parentage o f the ch i ld .

e . Whether any person claims any right to custody of the ch i ld .

3 . The court sha l l add as respondent to the petit ion and cause to be served with a summons any person identified by the court as an unnamed parent , u n less the person has re l inqu ished parental rig hts, or parenta l rights have been previously terminated by a court.

4 . I f the court , after i nqu i ry, is unab le to identify an unnamed parent and no person has appeared i n the proceed ing cla im ing to be an unnamed parent of the ch i ld or to have any rig ht of custody of the chi ld , the court sha l l enter an order terminating a l l parental rights of the unnamed parent with reference to the chi ld and the parent and chi ld re lationship .

5 . I f a petit ion for term ination of parental rights is made by a parent of the ch i ld u nder th is section or if a parent consents to term ination of parenta l rights under section 27-20-44 , that parent is entit led under section 27-20-26 to legal counse l du ring al l stages of a proceed ing to term inate the parent and ch i ld relationsh ip .

( 1 ) DESK (3 ) COMMITTEE Page 1 8 s_stcomrep_25_002

Com Stand ing Committee Report February 8, 201 9 8 : 26AM


Insert LC: 1 9.8057.01 00 1 Title : 02000

6. Subject to the d isposition of an appea l , upon the exp i ration of th irty days after an order term inating parental rights is issued u nder th is section , the order cannot be questioned by any person , inc lud ing the petit ioner, in any manner, or upon any g round , includ ing fraud , misrepresentation , fa i l u re to g ive any requ i red notice, or lack of ju risd iction of the parties or of the subject matter, un less the person retained custody of the ch i l d .

7 . At least ten days before the petition is heard , the clerk of d istrict court or j uven i le court sha l l provide a copy of the petition and summons, if any, to the county social service board and the department of h uman services.

SECTION 35. AME N DM ENT. Section 27-20-45 of the North Dakota Century Code is amended and reenacted as fo l lows:

27-20-45. Proceed ing for termination of parental rights.

1 . The petition must comply with section 27-20-2 1 and state clearly that an order for termination of parental rights is requested and that the effect wi l l be as stated in section 27-20-46.

2. I f both of the natura l parents of the ch i ld are not named i n the petition e i ther as petitioner or as respondent, the cou rt sha l l cause i nqu i ry to be made of the petitioner and other appropriate persons i n an effort to identify an unnamed parent. The inqu i ry m ust inc lude , to the extent necessary and appropriate , a l l of the fol lowing :

a . Whether any man is presumed to be the father o f t he ch i l d under chapter 1 4-20 .

b . Whether the natura l mother of the ch i l d was cohabit ing with a man at the time of conception or birth of the ch i ld .

c . Whether the natura l mother of the chi ld has received from any man support payments or promises of support with respect to the chi ld or in connection with her pregnancy.

d . Whether any person has formal ly o r informal ly acknowledged or declared that person's possib le parentage of the ch i ld .

e. Whether any person claims any rig ht to custody of the ch i ld .

3 . The cou rt shal l add as respondent to t he petition and cause to be served with a summons any person identified by the court as an u nnamed parent, u n less the person has rel i nqu ished parental righ ts , or parenta l righ ts have been previously terminated by a court.

4 . I f t he court, after i nqu i ry, is u nable to identify an unnamed parent and no person has appeared i n the proceed ing claim ing to be an u nnamed parent of the ch i ld or to have any right of custody of the ch i ld , the cou rt sha l l enter an order term inating a l l parental rig hts of the u nnamed parent with reference to the chi ld and the parent and chi ld re lationsh ip .

5 . I f a petition for termination of parenta l rights is made by a parent of the ch i ld under this section or if a parent consents to term ination of parental righ ts under section 27-20-44 , that parent is entit led under section 27-20-26 to lega l counsel du ring al l stages of a proceed ing to term inate the parent and ch i ld re lationsh ip .

6 . Subject to the d isposition of an appeal , upon the expi ration of th irty days after an order terminat ing parental rights is issued u nder th is section , the order cannot be questioned by any person , inc lud ing the petitioner, in any


Com Standing Com mittee Report February 8, 201 9 8 : 26AM


Insert LC: 1 9.8057.01 001 Title : 02000

manner, or upon any ground , inc lud ing fraud, misrepresentation , fa i l u re to g ive any requ i red notice, or lack of jurisd iction of the parties or of the subject matter, un less the person reta ined custody of the ch i ld .

7 . At least ten days before the petition i s heard , t he clerk o f d istrict cou rt or juven i le court shall provide a copy of the petition and summons, if any, to the county social service boardhuman service zone and the department of h uman services.


27-20-47. Dispos ition upon termination of parenta l rights .

1 . I f, u pon entering an order term inating the parental rights of a parent, there is no parent having parenta l rights, the cou rt sha l l :

a . Commit the ch i ld to the custody of the executii,e director of the department of human servicescounty social service d i rector or a l icensed chi ld-placing agency wi l l i ng to accept custody for the purpose of placing the chi ld for adoption or, i n the absence thereof, in a foster home;

b . Appoint a fit and wi l l i ng re lative or other appropriate i nd iv idua l as the ch i ld 's legal guard ian ; or

c . Establ ish some other p lanned permanent l iv ing arrangement.

2 . The custod ian has the rights of a legal custodian and authority to consent to the ch i ld 's adoption , marriage, enl istment i n the armed forces of the Un ited States, and surg ica l and other med ical treatment.

3. I f the chi ld is not placed for adoption with i n twelve months after the date of the order and a lega l guard ianship or other p lanned permanent l iv ing arrangement for the ch i ld has not been estab l ished by a cou rt of competent ju risd iction , the chi ld must be returned to the cou rt issu ing the orig ina l term ination order for entry of fu rther orders for the care, custody, and contro l of the ch i ld .


27-20-47. Dispos ition upon termination of parenta l rights .

1 . If, u pon entering an order term inating the parental rig hts of a parent, there is no parent having parental rights, the cou rt sha l l :

a . Commit the ch i l d to the custody of the county social servicehuman service zone d i rector or a l icensed chi ld-placing agency wi l l i ng to accept custody for the purpose of placing the ch i ld for adoption or, i n the absence thereof, i n a foster home;

b. Appoint a fit and wi l l i ng relative or other appropriate i nd ividua l as the ch i ld 's legal guard ian ; or

c. Establ ish some other planned permanent l iv ing arrangement.

2. The custod ian has the rights of a legal custodian and authority to consent to the ch i ld 's adoption , marriage, enl istment i n the armed forces of the Un ited States, and surg ica l and other med ical treatment.

( 1 ) DESK (3) COMMITTEE Page 20 s_stcomrep _25 _ 002



Insert LC: 1 9 .8057.01 001 Title: 02000

3. If the ch i ld is not p laced for adoption with i n twelve months after the date of the order and a legal guard iansh ip or other p lanned permanent l iv ing arrangement for the ch i ld has not been establ ished by a court of competent jurisd iction , the chi ld must be returned to the court issu ing the orig ina l termination order for entry of fu rther orders for the care, custody, and control of the ch i ld . "

Page 22, l ine 1 , after the fifth "the" insert "host"

Page 22, l ine 1 , remove " in"

Page 22, l ine 2 , remove "wh ich the h uman service zone office is located"

Page 27, l ine 5 , after "d i rector'' insert "or department of human services"

Page 28, l ine 3 , rep lace "department of human services" with "human service zone board"

Page 28, l i ne 4 , rep lace "department of human services" with "human service zone board"

Page 28, l ine 1 0 , after the u nderscored comma insert "or the d irector's designee,"

Page 29, l ine 27, remove "human"

Page 29, l ine 27, overstrike "service"

Page 29, l i ne 27, rep lace "zone" with "department of h uman services"

Page 32, l i ne 1 8 , after ".2.,." i nsert ""Host county" means the county with i n the human service zone i n which the human service zone admin istrative office is located and i n which the h uman service zone team members are employed .

3 . "

Page 32 , l ine 1 9 , rep lace the second ".§." with "an agreement or"

Page 32, l i ne 2 1 , rep lace "3 . " with "4."

Page 32, l ine 2 1 , rep lace "department employee" with "human service zone team member"

Page 32 , l ine 22, replace "president" with "presid ing officer"

Page 32, l ine 24, replace "4 . " with "5 . "

Page 32 , l ine 27, rep lace "§.." with "§.,_"

Page 33, l i ne 7, replace "6 . " with "7 . "

Page 33, l i ne 1 5 , rep lace "L" with "8 . "

Page 34, l ine 16 , rep lace "proposal" with "agreement"

Page 34, l i ne 1 7 , remove "by September 1 5, 20 1 9"

Page 34, l ine 1 7 , overstrike " , together with a p lan for the creation of'

Page 34 , l i ne 1 8 , rep lace "a human service zone" with "no later than December 1 , 20 1 9 . The agreement must identify the proposed counties of the human service zone. host county. and identify the human service zone board members. The department sha l l review and approve al l agreements i n accordance with section 50-0 1 . 1 -03 . The department may modify the agreements as specified in section 50-0 1 . 1 -03 or if some




Insert LC: 1 9 .8057.01 001 Title : 02000

of the cou nties are not inc luded in a human service zone. If counties do not submit an agreement, the department shal l create the human service zone"

Page 34, l i ne 1 8 , after "The" i nsert "board of county commissioners shall submit a"

Page 34, l i ne 1 8 , overstrike "must be prepared"

Page 34, l i ne 1 9 , after "50-0 1 . 1 -04" insert "by June 1 , 2020. The department shal l approve the plan in accordance with section 50-0 1 . 1 -04 by January 1 , 202 1 . The board of county commissioners shal l provide quarterly updates as requested by the department to the department after the agreement is approved unt i l the plan is subm itted as requested"

Page 34, l i ne 20 , replace "proposal" with "agreement and proposed plan"

Page 34, l ine 27 , replace the fi rst "§" with "an agreement and"

Page 35, l ine 6 , remove ", who must remain"

Page 35 , replace l i nes 7 through 20 with ". The counties' plan must specify any ro le trans it ions for human service zone team members as wel l as the procedures for team member grievances, appeals, and d iscipl inary actions. The counties' plan must a lso perm it the department authority to reduce fu l l-time equ iva lent positions in combination with a transfer of the positions. The component of the plan deve loped under this subsection must be consistent with merit system requ irements, chapter 54-44 . 3 and correspond ing ru les, and the template developed by the department for the human service zone plans under section 50-06-01 .4 .

.1Q,. The cou nties' plan must specify that reductions i n access points may on ly be made with agreement of the human service zone board, the county commissions of affected counties, and the department.

11. The counties' plan must i nc lude i nformation regard ing the human service zone's l iab i l ity coverage for the h uman service zone board, human service zone d i rector, human service zone team members, human service zone property, and any un ique contractual relationsh ips with the state, other human service zones, or other entities.

R Counties' plan must include a statement of agreement between the human service zone and the department a l lowing for review of proposed transfers of staff from the human service zone to the department, from the department to the human service zone, or among other human service zones. Approval by human service zone board or the county commissions is not requ ired .

.Ll.,_ Counties' plan must include a description of a l l un ique loca l ly-provided programs and services that the counties are propos ing to continue to provide with i n the human service zone and to be funded under th is plan .

11,_ Counties' agreement and plan must set forth the membersh ip of the human service zone board of a human service zone. The human service zone board may not consist of more than fifteen members, as determined by the boards of county commissioners . "

Page 37, l i ne 2 , replace "December 1 , 201 9" with "January 1 , 2020"

Page 39, l ine 28, replace "proposed or budgeted" with "approved by the department"

Page 39, l i ne 29 , replace "or" with "and"

Page 40, l i ne 1 3 , replace "and" with "or"



Page 40, l ine 1 3 , after "department" insert ", or both"

Page 40, l ine 1 4 , after the fi rst "the" insert "host"

Page 40, after l ine 1 7 insert "host"


Insert LC: 1 9.8057.01 001 Title : 02000

Page 40, l ine 1 8 , remove "in wh ich the human service zone office is located"

Page 40, l ine 20, overstrike "aud it" and insert immediately thereafter "establ ish procedures for the review and approval of'

Page 40, l ine 2 1 , after "d irector'' insert "or designee"

Page 40, l ine 23, replace ", for the county in which the h uman service zone office is located" with "of the host county"

Page 4 1 , l ine 1 , overstrike "3. The"

Page 4 1 , l ine 1 , remove "human service zone"

Page 4 1 , l ine 1 , overstrike "board of a"

Page 4 1 , l ine 1 , remove the second "human"

Page 4 1 , l ine 1 , overstrike "service"

Page 4 1 , l ine 2, remove "zone"

Page 4 1 , l ine 2 , overstrike "consists of not more than fifteen members, as determined by the plan . The"

Page 4 1 , overstrike line 3

Page 4 1 , l ine 4 , overstrike "appointed by each county with in the"

Page 4 1 , l ine 4, remove "human"

Page 4 1 , l ine 4, overstrike "service"

Page 4 1 , l ine 22, remove "zone"

Page 4 1 , l ine 22, overstrike the period

Page 42, after l ine 22, insert:

".12.:. Employ a human service zone d i rector who shal l serve as the presid ing officer of the human service zone board .

� Col laborate with the department and other human service zones to ensure the provision of qual ity. effective, and efficient h uman services to the citizens of North Dakota . "

Page 42, after l ine 25 , insert:

"Human service zone d i rectors : "

Page 42 , l i ne 26 , replace "department of human services" with "human service zone"

Page 42, l ine 28, replace "pres ident" with "presid ing officer"

Page 43, l ine 2, replace "county" with "human service zone board"

( 1 ) DESK (3 ) COMMITTEE Page 23 s_stcomrep_25_002



Insert LC: 1 9 .8057.01 001 Title : 02000

Page 43, l i ne 2, after the fi rst "of' insert "approved and funded"

Page 43, l i ne 2, remove "approved by the board of'

Page 43, l i ne 3 , remove "county commissioners of the county by wh ich the staff posit ion is employed"

Page 43, l ine 4 , rep lace "county commissioners or other" with "the department and"

Page 43, l ine 4 , after "appropriate" i nsert "host"

Page 43, l i ne 8, after "commissioners" insert ", the human service zone board,"

Page 43, after l i ne 9 , i nsert :

"L Sha l l establ ish. in partnersh ip with the department. equ itable compensation for a l l human service zone team members with in estab l ished appropriation .

§.,_ Sha l l develop a budget for the human serv ice zone in partnersh ip with the department and other human service zone d i rectors to ensure the admin istration of human services.

� May serve as a designee of the department to supervise department employees assigned to or located with in the human service zone .

.1Q,_ Are the custod ian designees of the executive d i rector of the department for any ch i ld in the custody of the department. "

Page 43, l i ne 22 , after "£." insert "The department shal l develop a system of progressive d iscipl i ne to address performance issues with in the human service zone. The system shal l reserve the most serious actions for severe or chronic fa i l u re to meet the standards adopted under subsection 1 .

� The department sha l l provide ongoing performance notifications to the human service zone board and h uman service zone d i rector related to the overa l l compl iance with the standards of admin istration .

Page 43, after l i ne 29 , i nsert:

"e. Recommend d iscipl inary action to the human service zone d i rector or the human service zone board .

S ECTION 70. A new section to chapter 50-01 . 1 of the North Dakota Century Code is created and enacted as fo l lows:

Human service zone d i rector h i ring.

The department must be an active participant in the h i ri ng process of the human service zone d i rector and shall designate at least two ind iv iduals to partic ipate on the interview pane l . "

Page 44 , l i ne 2 , remove the overstrike over the overstruck colon

Page 44, l i ne 3, remove the overstrike over "4-:- "Department'"'

Page 44, l i ne 3 , remove ""department"' '

Page 44, after l i ne 25 , i nsert:




I nsert LC: 1 9 .8057.01 001 Title : 02000

"2. "Host county" means the cou nty with i n the human service zone in wh ich the human service zone admin istrative office is located and in which the human service zone team members are employed . "

Page 45 , l i ne 8 , remove "from the human service zone"

Page 45, l ine 9 , rep lace the fi rst "board" with "a vice presid ing officer and appoint"

Page 45, l i ne 1 0 , rep lace "president" with "presid ing officer"

Page 45 , l ine 26 , rep lace "of forty-five dol lars per day, not to exceed twenty-five days i n any one year' ' with "estab l ished by the host county commission, upon consu ltation with the other county commissions i n the human service zone, cons istent with the rate of compensation for members of other appointed boards with i n the member cou nties and not to exceed the compensation and expense reimbursement of members of the legislative assembly"

Page 46 , l i ne 2 1 , replace "Aud it" with "Establ ish procedu res for the review and approval of'

Page 47, after l i ne 5, insert:

"§... H i re, supervise, and take other personne l actions related to the human service zone d i rector with d i rect consu ltat ion and involvement from the department. Employment must be cons istent with the provis ions of any law, ru le, order, or regu lation of the U n ited States or any federa l agency or authority requ i ri ng civi l service or merit standards or classifications as a cond it ion for provid ing funds admin istered by the department. A h uman service zone di rector must be h i red by Apri l 1 , 2020.

6 . Hear and act on employee grievances i n accordance with the human service zone plan and i n compl iance with merit system requ i rements . "

Page 49 , l i ne 6 , after "The" insert "appoint ing"

Page 49, l i ne 8, replace "president" with "presid i ng officer"

Page 50, l i ne 1 5 , after the th i rd comma i nsert "qual i ty control."

Page 5 1 , after l i ne 23 , i nsert:

"3 . By August 1 , 20 1 9, the department sha l l estab l ish a template for the development of human service zone plans, i nc lud ing process and content requirements, access point expectations, c l ient grievances procedu res, human resources, and loca l ly funded programs or services and how those services wi l l be addressed .

4 . The department sha l l develop, with assistance from the North Dakota association of counties, a process for consu ltat ion and techn ical ass istance for h uman service zone working groups by August 1, 20 1 9 . "

Page 57 , l i ne 6 , after "zone" i nsert ", u n less otherwise d i rected or determ i ned by the department"

Page 59 , l i ne 1 3 , after "The" i nsert "executive"

Page 59, l i ne 1 3 , after "d i rector'' in sert "of the department"

Page 6 1 , l i ne 3 1 , remove "and"

Page 62 , l ine 2 , overstrike the period and insert immediate ly thereafter ": and




I nsert LC: 1 9 .8057.01 001 Title : 02000

l. Programs and services un ique to the human service zone which have been i nc luded i n the approved human service zone plan . "

Page 63 , l i ne 1 5 , replace t he second "9" with "an agreement or' '

Page 68, l i ne 1 , after "budget" insert ", approved by the state agency, "

Page 69, l i ne 1 6 , replace the second "9" with "an agreement or"

Page 83, l i ne 22 , rep lace the second "9" with "an agreement or"

Page 86, l i ne 1 1 , overstrike "county socia l service"

Page 86, l i ne 1 2 , overstri ke "board" and insert immed iately thereafter "human service zone"

Page 87, l i ne 3 , overstrike "of human services"

Page 89, l i ne 1 0 , replace the second "9" with "an agreement or"

Page 93, l i ne 4, rep lace the second 1 1§1 1 with "an agreement or"

Page 94, l i ne 1 1 , overstrike "d i rector of the reg ional human service center" and insert immed iately thereafter "human service zone d i rector who sha l l serve as presid ing officer''

Page 94 , l i ne 1 2 , overstrike "with the consent of the"

Page 94 , l i ne 1 3 , overstrike "d i rector of the"

Page 94, l i ne 1 3 , remove "human"

Page 94 , l i ne 1 3 , overstrike "serv ice"

Page 94 , l i ne 1 3 , remove "zone"

Page 94 , l ine 1 8 , overstrike "sha l l " and insert immed iate ly thereafter "may"

Page 96, l i ne 2 , replace the second "9" with "an agreement or"

Page 97, l i ne 27 , replace the second "9" with "an agreement or"

Page 97, l i ne 29 , replace "department employee" with "human service zone team member"

Page 97, l i ne 30, replace "pres ident" with "presid ing officer"

Page 98, l i ne 20 , after "Appl ication" i nsert "- Study"

Page 98, l i ne 30 rep lace "the d i rector sha l l h i re the h uman service zone d i rector. " with "Dur ing the 20 1 9-20 i nterim, the department shal l consider options for a l lowing a human service zone to opt i n to state employment. The study must identify u nder what cond it ions a trans it ion to state employment may be desirable for a human service zone; outl i ne the governance process for choosing to opt i n to state employment, inc lud ing a description of the ro le of the h uman service zone board, cou nty commissions, and the department; and include a template and potential t ime l ine for any zone choosing to make the transit ion to state employment. "

Page 1 00, l i ne 1 5 , after the underscored period i nsert "The spending authority of the human serv ice zone must be increased based on the approved, adjusted, or mod ified formu la payment ."

Page 1 06 , after l ine 28 , insert:




Insert LC: 1 9 .8057.0 1 001 Title : 02000

"SECTION 1 35. AMENDMENT. Subsection 3 of section 57-20-07 . 3 of the North Dakota Centu ry Code is amended and reenacted as fo l lows:

3. The amount of credit is determ ined by m u ltip ly ing the company's assessed tax by a fraction , the numerator of wh ich is the tota l of a l l formula payments calcu lated for the subsequent ca lendar year u nder section 50 d4 0d50-35-03 and the denominator of wh ich is the total statewide ad va lorem property tax levied in the pr ior taxab le year. "

Page 1 09 , l i ne 3 , replace "twenty-eight" with "twenty-th ree"

Page 1 09, l i ne 27 , replace "twenty-eight" with "twenty-three"

Page 1 09 , l i ne 30 , replace "N ineteen" with " Four' '

Page 1 09 , l i ne 30, after "zone" insert "operational"

Page 1 09 , l i ne 3 1 , replace "of' with "to provide supervis ion and techn ical assistance to"

Page 1 1 0 , after l i ne 22 , insert:

" i . Ten fu l l-time equ ivalent posit ions to serve as qual ity contro l to the human service zones . "

Page 1 1 0 , l i ne 27, replace "50" with "64"

Page 1 1 0 , l i ne 28, replace " 1 1 7" with " 1 32"

Page 1 1 0 , l ine 28 , replace " 1 1 8" with " 1 33"

Page 1 1 0 , l ine 28, rep lace "and 1 1 9" with " 1 34 , and 1 35"

Page 1 1 0 , l i ne 29, rep lace "46" with " 1 3 , 1 5 , 1 6 th rough 25 , 27 th rough 30 , 32 , 33 , 35 , 37 th rough 60"

Page 1 1 0 , l i ne 29, replace "5 1 " with "65"

Page 1 1 0 , l i ne 29, rep lace "59" with "74"

Page 1 1 0 , l i ne 29, replace "6 1 " with "76"

Page 1 1 0 , l i ne 29, rep lace "67" with "82"

Page 1 1 0 , l i ne 29, replace "69" with "84"

Page 1 1 0 , l i ne 29, replace "76" with "91 "

Page 1 1 0 , l i ne 29 , rep lace "78" with "93"


Page 1 1 0 , l ine 30 , replace " 1 1 6" with " 1 3 1 "

Page 1 1 0 , l i ne 30 , replace " 1 20" with " 1 36"

Page 1 1 0 , l i ne 30, replace " 1 2 1 " with " 1 37"

Page 1 1 0 , l i ne 30, replace " 1 23" with " 1 39"

Page 1 1 0 , l ine 30 , replace " 1 24" with " 1 40"

( 1 ) DESK (3) COMMITTEE Page 27 s _stcomrep _25 _ 002


Page 1 1 0 , after l ine 30 , i nsert:


Insert LC: 1 9 .8057 .01 001 Title : 02000

"SECTION 1 42. EXPIRATION DATE. Sections 14 , 26, 3 1 , 34 , and 36 of this Act are effective th rough December 3 1 , 201 9 , and after that date are ineffective."


Renumber accord i ng ly


2019 SENATE APPROPRIATIONS

SB 2124


Appropriations Committee Harvest Room, State Capitol

SB 2124 2/13/2019

JOB # 32668

☐ Subcommittee


Committee Clerk: Alice Delzer / Marne Johnson

Explanation or reason for introduction of bill/resolution: A BILL for an Act to crate and enact five new sections in the NDCC relating to creation of human service zones and relating to the establishment and operation of human service zone areas, taxiing district levy limitations, and property tax statements , relating to administration of county social service boards, the county human services fund, and caseload standards, to provide a penalty; to provide a contingent appropriation; to provide an effective date; to provide an expiration date; and to declare an emergency. (At the request of the Department of Human Services)

Minutes: Chris Jones, DHS Redesign Attachment #1 Testimony of Terry Traynor with Attachment # 2, #3. Testimony of Kim Jacobson Attachment #4

Chairman Holmberg: Called the Committee to order on SB 2124. All committee members were present. Alllen Knudson, Leg. Council, Brady Larson, Legislative Council and Stephanie Gullickson, OMB were also present. Chris Jones, Director of DHS: Testified in favor of SB 2124 and provided Attachment # 1. Walked through this attachment, a series of slides, (which he did not provide a power point but called the pages slides) Slide 2, when we went through our budget previously, we talked about a number of social service programs, the social determinants on the left hand side of the chart. What we are talking about today is in the red dotted line; how do we deliver the social determinants, the delivery network. Slide 3, a brief timeline. Slide 4, an explanation of the formula of shifting services from the county to the state. What we are suggesting in SB 2124 as it relates to financing, is to change the budgeting principles related to that. Slide 5, these are listed in priority. What has been part of SB 2206 and 2124 is the work between the counties and the state working on pilot programs around the state to find constraints, to relieve those constraints. Where there’s opportunities to specialize that we have the flexibility to bring that in state, for instance take child care licensing; there are a lot of rules and regulations. When you do something over and over again, you do it more efficiently. Does it make sense for child care licensing to be a state function, and not a shared function between the counties, the region and the state. As part of this fiscal note, we want to be able to adjust for caseload increases or decreases. We want to adjust for equalizing service levels across the state. We know that there are some areas that don’t have the necessary access to these services. We want to be able to adjust for statewide changes in services and contingencies, e.g., there are times when individuals need to be sent out of state, when we have a child that has to be sent out of state, there is a tremendous cost, that is not in their historical cost, based on the formula, there would be dollars taken away from delivering other services. We

Senate Appropriations Committee SB 2124 02-13-2019 Page 2

want to make sure we are able to have some contingency funds. The fiscal note is on page 6 and 7. This has changed slightly from our budget presentation; it’s related to the amendments that came out of the policy. The fiscal note associated with SB 2124 of $182.3 million will support transition to new model of human service zones. The $1.9 million to support the pilot implementation and the contingencies. Senator Bekkedahl: The family first legislation implementation, the $7.5 million, any of those funds work their way down to the qualified residential treatment providers, or do they stay in the Department? Chris Jones: Yes, it does go down to the QRTPs. On page 7 – These line items tie to our zone budgeting principles. You would hear from the counties that the pilot formula has created some stability, but it hasn’t allowed for the flexibility to ensure we have dollars going to the right place at the right time. We’ve matrixed out those line items, and how they fit in these principles. The top line item, the projection of CY18 and CY19 program-related costs. We’re using the principles of reimbursing historical cost(1), being able to adjust for process change(3), adjust for changes in services as pilots are successful and we can begin to specialize(4), and adjust for caseload increases(5). The flexibility is to meet the principles of budgeting going forward. On the last slide, page 8, relates to FTEs. We are asking for up to 223 FTEs that could be transferred from the county. The only way this happens is based on successful pilots and statewide implementation. We generate the process improvements, the efficiencies, and then we do the transfers. This is probably more than we will be able to accomplish in one biennium, but it is possible that this is what we could achieve. The other components that are part of this as all of this works is up to 19 zones, those zone directors are county employees, we need to have a closer connection to the Department, so specifically 4 FTEs to serve as human service zone operational directors, so there is more of that communication back and forth. Those human service zone operational directors will not supervise, but they will be part of the team and the communication that goes back and forth. Where these FTEs came from is the work groups that worked through the interim on items that come up as areas that may be areas of doing specialization across the state. Each county is responsible for doing subsidized adoption. We only have the volume for subsidized adoption of about two FTEs across the state, but everybody in every county needs to be trained on how to do subsidized adoption. If we standardize this, we would have more consistency and be able to serve better. It’s doing those types of things across all the different programs that are on at the beginning of delivering humans services going forward. Senator Dever: The $182 million currently resides in the OMB budget? Is that where it will be reflected? Chairman Holmberg: Yes, the money is transferred to the account for payment. We don’t have to do anything here as I understand it. Senator Dever: Do we need to put it in the human service budget? Chairman Holmberg: It’s in SB 2015, that’s covered.


Senator Dever: The 223 FTEs, those are positions that are funded through the Department budget anyway, it’s just a matter of whether they continue as county FTEs and would become state FTEs? Chris Jones: Yes, those FTEs would just transfer into the state using the same as outlined in SB 2124. Senator Dever: So there would be no fiscal impact to that? Chris Jones: It depends on how the funds flow. I’m trying to understand how the funds flow from OMB to DHS. There would be no net increase, just a net transfer. Chairman Holmberg: The benefits are identical, there wouldn’t be an increase of cost of benefits? Senator Bekkedahl: The 27 FTEs for child care licensing; are those employees that stay in that zone level? Explain how you make that process more responsive at the local level, and less taxing for people to get through. Chris Jones: So, if we take child care licensing, as part of the policy for SB 2124, one of the guidelines is we do not want to eliminate access points, this isn’t about moving any of these FTEs to different parts of the state. Those child care licensers would still exist where they are today. They would stay out there. Right now there are county licensers, they do the site visits, they put the packet together, and share that with the regional rep, then the regional rep has to sign off on everything that was done, then there is someone in Bismarck that is responsible for that child care license. Through the principles of all the work of 2124, as we’re trying to get the decision as close to the client as possible, because they have the most information to make the best decision. We still need to have all those child care licensers out across the state, we just want them to be able to make the decision and have the right supervision, so they can make the decision quickly and correctly across then state. Senator Dever: Do the citizens continue to access the services in the same way they do now? Chris Jones: Yes, however, one of the things I didn’t highlight, we suggest that we change this from social services to human services. Even right now, there is confusion about who makes what decision, and how. We need to act as one team as it relates to serving those who need access to services. By calling it human services, the goal is to make this much better than it is today for citizens accessing services. We are not closing access points, but we want to be able to make decision done at the local level. Chairman Holmberg: How many people care going to speak about the funding of this issue? Terry Traynor, Association of Counties, testified in favor of SB 2124 and the funding of this bill and provided Attachment # 2 and Attachment # 3. Kim Jacobson, Director of Agassiz Valley Social Services District: Testified in favor of SB 2124 and provided Attachment # 4, a statement in support of this bill. (30.25)


Chairman Holmberg: Is it a good bill? Is it perfect? Kim Jacobson: I think it’s a very good bill. I was part of the work group that worked on the policy side, I believe we have made significant strides to do well. Chairman Holmberg: Anyone else before we take some action. The bill itself is a huge policy bill and our role is essentially funding the money. We are doing a transfer from OMB budget. V. Chairman Krebsbach: I would move a Do pass on SB 2124. 2nd by Senator Robinson. Chairman Holmberg: Call the roll on a Do Pass on SB 2124. A Roll Call vote was taken. Yea: 14; Nay: 0; Absent: 0. This goes back to Human Services. Judy Lee will carry the bill. The hearing was closed on SB 2124.

Date: � � 13 ·· � Oft/ Rol l Cal l Vote # : I ---=---

2019 SENATE STANDING COMMITTEE ROLL CALL VOTES

tj__ BILL/RESOLUTION NO. d ( c;b Senate Appropriat ions

D Subcommittee

Amendment LC# or Description:

Committee

-----------------------Recommendation: D Adopt Amendment

µno Pass D Do Not Pass D Without Committee Recommendation D As Amended D Rerefer to Appropriations D Place on Consent Calendar

Other Actions: D Reconsider D

Motion Made By _...,.J<..__, ......... ��---�-L- Seconded By

Senators Senator Holmberg Senator Krebsbach Senator Wanzek Senator Erbele Senator Poelman Senator Bekkedahl Senator G. Lee Senator Dever Senator Sorvaag Senator Oehlke Senator Hog1.1e

Total

Absent

(Yes)

Floor Assignment

. Yes No

J/ � � / ,.---, /

t/ ,,,,-/

� � � -v·

No


Senators Senator Mathern Senator Grabinger Senator Robinson

D

Yes No v y

y----

Com Stand ing Committee Report February 1 3, 201 9 1 2 :25PM

Mod u le ID: s_stcomrep_28_01 9 Carrier: J . Lee

REPORT OF STANDING COMMITTEE S B 21 24, as engrossed : Appropriations Committee (Sen. Holmberg , Cha i rman)

recommends DO PASS ( 1 4 YEAS, 0 NAYS , 0 ABSENT AN D N OT VOTI NG) . Eng rossed S B 2 1 24 was placed on the E leventh o rder on the ca lendar.

( 1 ) DESK (3) COMMITTEE Page 1 s_stcomrep_28_01 9

2019 HOUSE HUMAN SERVICES

SB 2124

2019 HOUSE STANDING COMMITTEE MINUTES

Human Services Committee Fort Union Room, State Capitol

SB 2124 3/13/2019

33654

☐ Subcommittee


Committee Clerk: Nicole Klaman


Relating to creation of human service zones; establishment and operation of human service

Minutes: 2

Part 1, recording 33654 Chris Jones, Director of Human Services: Introduced SB 2124, see attachment 1. This has been work that has been going on for the last couple years. SB 2206 passed last session, was the study context and what we have done over the last couple of year and key components of the policy in SB 2124. Then detailed testimony as it relates to SB 2124. (0:23:59) Rep. Karen Rohr: Other than the theory of change, what are things are included in the culture aspect on Page 12? Chris Jones: We need to spend a little bit of time on this. It’s easy to identify the theory of constraints. Using rules, issues are determined and now we need to implement change. We need to work together and break down barriers; . Example State Vs. County There isn’t specific culture work like teambuilding. (0:25:14) Rep. Gretchen Dobervich: In SB 2206 study, looking at the list of people in the committees. Were there consumers or counties involved? Chris Jones: We did have an intent to include stakeholders. There was a focus on building culture especially in the beginning. We had to break barriers and build trust, for example between state and county. I don’t know that I would have wanted stakeholders to see. A lot of the early steps are administration. Rep. Dobervich: Regarding the fiscal piece of state based services versus county based services. In the committee work, Were there any differences in the customer satisfaction regarding service between the models?

House Human Services Committee SB 2124 3/13/19 Page 2

Chris Jones: We looked at several states like UT, WI MD. But the light bulb went off when we met Christen Cox and she was able to show good outcomes and not so much the messier end of human services. (0:29:39) Rep. Dobervich: With regard to specialization to different counties; With the vast geographic area that social workers and citizens travel to provide and receive services. How do you see this not creating a travel burden and the additional costs of that? Chris Jones: I will be hitting on that a bit later. But before I do, we need to talk about the “zones’ . But maybe not every zone will be specialized. We are trying to be create more collaboration between the zones to service clients. If any ND citizen needs services, it will not matter where you live to access services. Rep. Dobervich: SW and Southeast Pilots; Is there data or info you can provide relating to the efficiencies and the client outcomes? Chris Jones: I would like the counties that participated to be able to detail that. I would ask whomever discusses this also discuss employee participation. Chris Jones: Questions? (0:44:29) Rep Rohr: Did I hear you say there were 20 FTEs in one section. Administrative fees? Chris Jones: Right now within CFS there are approximately 20 FTEs that do program and policy within children and family services. If you look at the number of FTEs across counties 400-450. The delivery is happening at the county level. Case load is more tied to where it’s delivered. Rep. Rohr: Redistribution of dollars for administration; how many FTEs? Chris Jones: As we do pilots, we will transition those FTEs where we find that hidden capacity, through the theory of constraints. We need the pilot results and if they work, formulate the change and apply. Flexibility to move the FTEs where the need is required is what we want over time. Rep. Rohr: So you can’t answer that? More specific regarding the indirect cost? Chris Jones: No Rep. Rohr: More specific regarding the indirect cost? Chris Jones: It is coming up in testimony. (0:48:30) Chairman Weisz: You state the zone director have the ability to move employees from county to state?


Chris Jones: No they would not have the ability, that would be through the Department. The general HR supervision would be through that zone director. As mentioned earlier, they would serve as the guardian of children who have lost their parental rights. Rep. Clayton Fegley: Zone directors are employee of the zone, but state controls it’s employment correct? The zoning board can’t fire that director? Chris Jones: Correct. However the zone board does have authority to fire but not without the collaboration with Human Services. (0:53:34) Rep. Dobervich: The overall grievance process, the provider is also the intake, investigator and ultimately decider of those grievances. Is anything being built into this apart of a different model. Chris Jones: We are trying to thru peer review, look at each service and how do we redesign it. Rep. Rohr: The term “peer review”, is that a debriefing or what is involved? Chris Jones; I’m not the best person to answer this. Chris Jones: Page 31. There are a total of 223 FTEs to be transferred. I’ve provided a list of which would be the first one’s within this year Chairman Weisz: Child care licensing, 27 possible FTEs is that 27 counties employees now or what are you basing that number on? (1:03:40) Chris Jones; The work done in the interim Chairman Weisz: Why in the first did you not automatically list them as state employees? Chris Jones: That is one that would happen right away. But we don’t want to increase the number of FTEs at all, but work collaboratively with the county. (1:07:45) Chairman Weisz: Page 30, number 2. Chris Jones; They are all on the merit system, ranked and graded. The majority are on “pers” but not all of them. Chairman Weisz: Where do the differences in pay come from? Chris Jones: Where they rate in the merit system. We have the rations across the counties. The Compa ratio is used to determine pay, we have counties where the median is .94 and


some counties are .75 at the bottom of the pay scale and some over 1.1. So we need to start leveling that off. The lowest paid are in the counties with greatest need. Chairman Weisz: How are we leveling that? Chris: We won’t be reducing anyone’s pay, but thru the pilot we will identify performance and we will slowly adjust those incomes. Case by case basis and what is needed and the job class. Including the cost of living differences. Chairman Weisz: Over time, outside of the cost of living adjustments, everyone will eventually end up at the same pay. Chris Jones: By Performance based. Chairman Weisz: Regarding those in that performance area; how long do you anticipate it will take to the level playing field? Chris Jones: So many different dimensions that are a part of that. Retirement, specializations like eligibility. Say we find eligibility has the greatest pay difference, so where we can do pilots they will have quicker results. (1:13:59) (1:18:30) Chairman Weisz: As far as budgeting, you approve the zone’s budget and maybe the client decides to get services in another zone. How responsive would Zone A be to transfer money to Zone B. I know this will be the concern from Approps. Chris Jones: Once a payment is made, we don’t anticipate pulling money back. We would look to one of the zones to covering that. Chris Jones: There is not a lot of dollar shifting during 2020. Chairman Weisz: Will there be any limitations on reserves or funds that a zone can hold? (1:22:49) Chris Jones: Jonathan Alm would be best to answer that. (1:23:22) Chris Jones: Indigent burials was added as it’s my understanding that not all the costs have been always accounted for the same way across the counties. Chairman Weisz: I noticed in your 1.3 you included indigent burials. Is this because you aren’t sure. Chris Jones: Yes, because not all indigent burials were addressed the same way across counties. Some may have used general fund.


Representative Mary Schneider: There will be 19 zones, I don’t’ see that mapped out in here. (1:25:11) Chris Jones: We did initially create a map unfortunately, that map became the end all be all. We want to recognize we want the counties to come together and create there ones with oversight. County commissioners and social workers all in the same room and discuss differences and likeness plus transparent zoning conversation (1:29:07) Jonathan Alm, Attorney Human services: In support, see attachment 2. Discussed amendment suggestions. Chairman Weisz: Was there any discussion in meetings or with the Senate, with that language having the flexibility of allowing the zone board to determine if the states attorney from one of the other counties to be a lead instead of the state’s attorney in the host county? Jonathan Alm: That did not come up. We worked with association counties and modified it to host model. Lines 9-12 discuss the legal advisor that represents the human service zone. Section 2, extending it through December 31st Chairman Weisz: Where do we transfer custody from the director to the human service zone director? Jonathan: Page 4, section 14 is the start of the process. Representative Chuck Damschen: Page 11, first definition of human services, “designed area” shouldn’t it be “designated area”? Jonathan: Noted Chairman Weisz: Recess



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Minutes:

*Part 2 of 3, Recording 33655* Previous recording 33654 Chairman Weisz: Committee back to order. Jonathan Alm: Section 135, page 133 of the bill. Update a citation reference. The taxation department reached out and wanted that to be included. Section 136 update language Section 137 Workforce Safety and Insurance Law (0:03:12) Chairman Weisz: Can you expand on indirect costs? This has a Fiscal of $5.5 million. How much do we currently pay? Jonathan Alm: The definition of indirect costs would not change from current law to this. Chairman Weisz: On the timeline, the counties have to submit 12-01-19 and then zones 2021. Jonathan Alm: The timeline does look wrong, but the date beyond the deadline is when all of it will be finalized (0:09:30) Chairman Weisz: Will the total population effect who and how the counties zone? Jonathan Alm: It may.


Rep. Skroch Creation of zones and the powers that be. Do you envision this to close office due to the zone creation? Jonathan Alm: No, we are not reducing the access points. We are trying to get better service coverage. Chairman Weisz: Back to board makeup, state elected official. Who is this anticipated to be, legislator. Jonathan Alm: Yes. (0:36:22) Jonathan Alm: Section 96 Jonathan Alm: Section 107 (0:41:31) Jonathan Alm: Section 120 (0:47:47) Rep. Rohr: Any time you state biannually what specifically do you mean? Jonathan: We make that 2nd payment in June and January. (0:49:50) Jonathan: Section 50.35.06



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Minutes: 2

*Part 3 of 3, Recording 33685* Previous recordings 33654 and 33655 Chairman Weisz: Called committee back to order Jonathan Alm: Notify legislation of any F.T.Es are added. (0:04:10) Jonathan Alm Subsection 6 (0:04:49) Jonathan Alm: Section 141 contains effective dates. Jonathan Alm: Section 130 is creating the human service zones. This would conclude my testimony. (0:05:27) Chairman Weisz: Ok, committee we will obviously be working on this bill for a while with both the counties and department. Are there any additional questions for Jonathan at this time? Additional support? Terry Trainor, ND association of counties: In support, see attachment 1. (0:11:44) Chairman Weisz: How soon can we get the amendment suggestion from the states attorney?


Terry Trainor: I have two versions on my phone that need reviewed and to approve one. Rep. Dick Anderson: In some of the counties there’s a high native American population, how do they fit in? Terry Trainor: We don’t know yet. I’m hoping they will be incorporated into a zone. I know they will be incorporated into a zone. The financing under the old regime made them less attractive partners. When they were property tax funded, it was difficult to get counties come together because of low tax base and high cost. The realization with a state funding model with the case load and some of the best economic eligibility workers they have become more attractive but it will be a process. Rep. Anderson: I hope that you can make that area more attractive or you will have a hard time. Representative Todd Porter: Inside of the whole concept, any discussion of re-zoning after some years. If a county thinks they would be better suited zoned with another county. Or is this truly one and done? Terry Trainor: We do not have a mechanism to make zoning changes. We have counties that are already providing services across counties and zones due to the success of the pilot projects. Representative Kathy Skroch: If a county misses the deadline is there a grace period? Terry Trainor: No at that point the Department would make the decision to bring them together. Representative Chuck Damschen: I had a couple commissioners say that the pilot and transition has problems in their particular counties. Any projection for the next couple years Terry Trainor: You are right, the pilot project was based on 2015 expenditures without inflator. Some counties came up short in the state funding. The idea is the direct cost should be covered by state funds. (0:18:08) Rep. Rohr: My counties are yellow, what does this mean? Terry Trainor: They are the counties that are discussing it. Rep Rohr: I’ve received many emails regarding Morton County. Rep. Skroch: What was the voting process on this? And how much input have the counties been able to provide?


Terry Trainor: We’ve met every year for 20 years and we have said we need to turn to a state funding for Social Services. Not a lot of county commissioner involvement on the committees. A yes or no vote, No there is not Chairman Weisz: Support? Edgar Olvera, In support, written testimony not provided. Spirit of this legislation is good. We have an issue with the zoning. Administrative zone and no big deal. Also heard that the counties are going to get together and “speed date’’. Morton and Burleigh county should not zone together. If this is striking concerns, it is probably a problem that needs addressing. Representative Bill Tveit: What is your reluctance ? Edgar Olvera: It’s about business and we feel it would be duplicating services as we offer the same services. Chairman Weisz: Support? Kim Jacobson, Agassi Valley Social Services: In support, see attachment 2. Passage of this bill will allow statehood caseload with administrative hubs. (0:33:06) Representative Todd Porter: You heard Morton county’s testimony. Have you heard of any further concerns regarding other counties? Kim Jacobson: Every county has had their moments of what are we going to do. Rep. Skroch: Do you think it would be a benefit for “in progress zoning” to allow for additional time before the Department takes over? Kim Jacobson: I think a go live date is in the best interest of ND. Rep. Skroch: Would they be able to continue on after the Department makes the choice on a local level? Kim Jacobson: It’s so much more than who does the work, it’s how we do the work. Representative Chuck Damschen: If zoning were wrong for the counties, on line 68 the department can terminate or modify zoning. What would be the next step after termination? Kim Jacobson: The department would decide. Chairman Weisz: Opposition? Seeing none. Closes hearing



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Committee Clerk: Nicole Klaman typed by Mary Brucker


Relating to creation of human service zones; relating to the establishment and operation of human service zone areas, taxing district levy limitations, and property tax statements; relating to administration of county social service boards and county human services fund, and caseload standards; to provide a penalty; to provide appropriation; to provide an effective date; to provide an expiration date; and to declare an emergency.

Minutes: No attachments

Chairman Weisz: Are there any areas that anyone has issues with? If you have amendments or suggestions bring them to me. Do any of you have an opinion on that section? Rep. Porter: I left the hearing thinking they were okay with the flexibility that was given to them. Burleigh County could stand on their own then they would have the ability to join those counties they are more aligned with west of the river. As long as it’s flexible there isn’t a way for the department to just do it or for them to not have the availability of choice then I think they’re okay with it. They just didn’t want to be forced to go someplace they didn’t want to go and wanted an alternative plan to do it themselves. Chairman Weisz: The requirements of the zones are on page 60 under J. That language seems to force them to become one zone. Rep. Porter: I see what you’re saying because they are part of that MSO. Taking that out would give them the flexibility. There’s really only one multi-county MSO. This would give them the option to do what they want. Chairman Weisz: I’m having amendments prepared that sets up a process for zones to change going forward. It doesn’t mean everyone can jump ship but there would be a process and criteria set. There are key areas in this bill. If there are areas in the bill you have issues with then get amendments and we’ll discuss. This is a big bill and we’re not going to go through each page line by line. Rep. Damschen: I had some constituents that were concerned about the timeline.

House Human Services Committee SB 2124 March 19, 2019 Page 2

Chairman Weisz: There has been some concerns. I don’t believe that timeline should move. All the timeline does is delay things in getting this functional and moving forward. Counties know this has been coming so they’ve had plenty of time to start conversations of what counties they want to work with. I’m not supportive of it but we’ll see where it ends up. I think these timelines are very doable. I’ve heard concerns too. It’s more of a delay of having to get together with their neighbors and figure what would be the best zone for them. If you have something on this bill you need to bring it forward.



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Minutes: No attachments

Chairman Weisz: One of the questions that came up has to do with the makeup of the zone board. One of the requirements is that we have to be on the board; state elected officials. What does the committee think? Rep. Tveit: I had been on the local human services board. I’m not so sure that as a policy maker of a lot of things going on with that board that we should be on it. Chairman Weisz: I’ll get all the amendments done to remove them if that’s what the committee wishes. I’m having some language drawn up that says there must be fair representation so the department has the ability to decide if the board is properly diverse or not. They need to look at the demographics but we wouldn’t say they’d have to be proportional. Rep. Fegley: Aren’t Fargo, Bismarck, and Grand Forks under the service centers so they would have a different board in the process compared to the zoning groups? Chairman Weisz: These zones have nothing to do with the human service centers from the standpoint of the zone, the board, or the director. The human service centers will still be in effect and will still function as they do now. These zones are made up by each individual county and they will choose their board members based on the criteria in this bill then they will hire the zone director. I’m assuming Cass County will be its own zone. Rep. Tveit: There’s 94 of us plus the senate side so it wouldn’t necessarily have to be an elected official that’s sitting on this committee.


Chairman Weisz: Reality is that somebody from the legislature is going to be on each zone board. Rep. Devlin: Would there be anything to stop the governor, the attorney general, the state auditor, etc. from being on one? I don’t see where it says they have to be legislators. Chairman Weisz: That is true but the assumption is there. You are technically correct. Does the committee want to remove them from being a requirement? Or do you want to leave it as is? Rep. Devlin: I don’t see a reason that is has to be a state elected official. I would defer to Mr. Traynor in case there was a real reason this was put in there. Kim Jacobson, Director of Agassi Valley Social Services: When the bill draft was being assigned we were looking at ways to try to connect the state to the administration of county provided services. The idea was brought forth to have an individual from each zone who would be informed and representing their local area to identify what their service needs may be. Chairman Weisz: This language came from the work groups who put this bill together? Kim Jacobson: Yes. Rep. Ruby: How long are the terms to be on the board? Kim Jacobson: A standard term is three years then it rotates. That could be subject to change as well. Rep. Ruby: If I have time remaining on the board but I chose not to run for the legislature again do I still stay on the board or do they appoint someone else? Kim Jacobson: Currently a county commissioner must serve on the current social service board structure so if a county commissioner would opt not to run or be defeated during their election process the spot would be filled with an alternate individual. Chairman Weisz: It already required that there needs to be one county commissioner of each county. Who are you expecting when you say it must consist of local elected officials? Kim Jacobson: The intent was that a legislator from the district would serve on the board. Certainly there could be other elected officials if they serve that area who could be considered. Chairman Weisz: Wouldn’t the legislator fall under a state elected official? Kim Jacobson: I believe the intent was for at least one county commissioner but could be more from each county that’s represented.


Rep. Tveit: Dakota Central Services has a county commissioner from every county within that zone plus appointed individuals. Is that where this thought factor came from? Kim Jacobson: That is accurate. We tried to use existing statute. We wanted to make sure we were being inclusive to include all of the key decision makers who guide the service delivery and the funding that comes with that to the social service zone. Rep. Skroch: Are you in section 72? Chairman Weisz: Yes. Are there further questions? Rep. Devlin: The local elected official would be in a zone that was a bigger city-type zone because it couldn’t be a city commissioner or counsel member it would have to be a county commissioner? Kim Jacobson: The way it is written appears to be the meaning of it. The intent of the work group was to ensure that a county commissioner would be serving in that capacity. Other community leaders would also be included. Chairman Weisz: For an example say Burleigh County and Kidder County were a zone, based on the language of demographics they would each get one county commissioner. Is it your intent that the zone demographic means that there should be at least three county commissioners from Burleigh and one from Kidder or is it that the makeup of the board would reflect that there should be five times as many Burleigh as Kidder? Kim Jacobson: The intent of that section is to allow the number of the board members to be defined within the plan that the social service zone would bring forward. Some of this language is similar to what a multi county social service district includes. Chairman Weisz: The language in the bill says it should be fairly represented based on the zone’s demographics. Kim Jacobson: To me that would mean the appointees from that specific county would reflect that specific county’s demographics. Chairman Weisz: You don’t think it would mean the different populations would need to be equally represented? Kim Jacobson: In reading it I interpret that as the appointees from that specific county. That might be an area of clarity that the committee wishes to consider. Chairman Weisz: It is your intent that it should be based on the county’s individual demographics and the zone board would be able to decide on the overall county representation. The only requirement is that there has to be at least one county commissioner from each county. Kim Jacobson: That is accurate.


Rep. Skroch: It says there needs to be equal representation from each sex, race, and ethnicity. How do you base that? Kim Jacobson: I would use the local census data to help drive that information about what the demographics of that community is to ensure diversity within the board. Existing language indicates that there must be at least a woman on the board so the attempt at this language was to be more inclusive of all the different potential makeups a board could encompass. Chairman Weisz: What does the committee think? I’m inclined to take it out. Vice Chairman Rohr: I don’t see the need to have a state elected official on there but at the same time I would like to respect the wishes of the people who worked long and hard on putting this together. No one in the legislature put that in, it was the act of the working group so I would be inclined to vote against amending it. Rep. Damschen: On the top of page 71, the reimbursement is not to exceed the compensation expense reimbursement of members of the legislative assembly. Chairman Weisz: If it’s good enough for us I would think it should be good enough for somebody else who is serving. Rep. Skroch: When I think of state elected officials isn’t that more like our congressional and senate elected officials? As a district aren’t we more locally elected? Do we have a definition of a state elected official? Rep. Devlin: If you want the legislator to be in there then it should be spelled out that way instead of saying a state elected official. Chairman Weisz: I agree. Do we want to leave it in or not? Rep. Tveit: Could Kim pull that working group and see what they had in mind with that? Chairman Weisz: I’m guessing they really meant to do legislative. Every zone is going to have a legislator. Rep. Dobervich: Could we just limit it to one? Chairman Weisz: I can arguments both ways. If nothing else, I think we’ll get it clarified to say just legislators. Rep. Schneider: I’d like to see it left in there for the working groups that we heard from. Just think of the expertise it would bring to this committee. Rep. Tveit: This is transformation from the county level to the state level. This was a way to get legislators more involved in the project.


Rep. Skroch: We could change it from “must” to “may” so that more options would be available to you. Chairman Weisz: Or we just take it out. We wouldn’t have to put any “may” language in because they can already. This is merely identifying the minimum of what they have to do and what the board has to consist of. Some people I heard from are pretty adamant about putting a legislator in there. Rep. Tveit: What was their line of thinking? Chairman Weisz: I couldn’t tell you for sure. I’ll have an amendment drawn up to take it out then we’ll take another look at this. Is there anything else in this bill that’s an issue for anyone? Rep. Tveit: On page nine lines 14-16 addresses the liability for estates. Didn’t we deal with that already in a bill we just passed? Chairman Weisz: That was for long-term care. Jonathon, could you explain the language in section seven of the bill? Jonathon Alm, Attorney with the Department of Human Services: The previous bill you passed out isn’t dealing with this section. This is dealing with the family law section of the code, probably child support so it’s completely a different section that its addressing on that aspect. There are other statutes that deal with state recovery collections because based on federal law we also have to do state recovery collections such as Medicaid and other federal programs too. I’m not sure if this is tied to that or not because I’m not familiar with the child support program but it could be. Rep. Tveit: Do you see a need to check on that before we pass this? Jonathon Alm: I can check on it further to see what the status is. Rep. Skroch: In section 70 line 28 they’re talking about designating at least two individuals to participate in an interview panel. Who is envisioned to being appointed to that panel in electing those directors? Chairman Weisz: The zone board hires the zone director but the department would participate in that process. They would have two individuals on the interview panel along with the local officials who would be hiring the zone director. Recess



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Minutes: Attachment 1

Chairman Weisz: Opened meeting. Kim Jacobson, Director Agassiz Valley Social Services: Sara Stolt, Department of Human Services Transformation Manager, will be joining me today to explain how the pilot projects impact this bill and what the vision is for service delivery. Sara is the person who has been overseeing the pilot projects in the launch of the redesign. Based on last week’s testimony before this committee I stressed how for decades the County Director’s Association and counties have urged that property tax relief would be possible through the redistribution of costs associated with the administrative costs of social services. If we could bring the right people together with a good mission, good goals, and commitment we could be successful in redesigning a deliver system that could meet the needs for the next 100 years for social service delivery. It is through the work of the pilot projects that we believe we have taken a good faith effort and have found some really good results that we are eager to share with you. When we started looking at what program redesign should look like we felt there were three primary ways to accomplish that; structure, process, and culture. With the focus of social service redesign we focused on the needs of the client and trying to find the best way to meet their needs in an effective and efficient way. We also sought to remove the geographical, political, and cultural boundaries so we can deliver smart and effective human services in a compassionate way. We recognize we have a multitude of stakeholders but our primary stakeholders are the individuals and families we serve as well as the taxpayers of North Dakota and our employees. When you think of zones I want you to think of structure. Zones are administrative hubs; they’re the structural organization. We’re looking at how to eliminate county boundaries and geographically define service areas. Our


goal through redesign is to look at some of those things we have worked around or tripped over and make them a more efficient part of our delivery system. We also need flexibility so we are able to support each program structure. Flexibility means flexibility of our resources including our staff, funding, and innovation. We need to eliminate some of the complicated hierarchy. With zones we’re looking at being able to be more efficient in that communication process and that accountability piece. We are looking for increases in funding for program and decrease in funding for administration. By operating as administrative hubs we can be more efficient on the administrative side and hopefully reinvesting some of those resources where we have service gaps and shortages so we can better use the dollars that were appropriated to provide services. Zones will collaborate with each other. The individuals in the zones may partner with other zones to ensure program delivery. We have local administration but we have statewide caseload and we all work together in order to provide the service. Zones were encouraged subject matter expert supervision and we have found that it is critical in order to maintain a quality, trained workforce and be able to retain those employees. This is especially crucial in our child welfare area where burnout has a tendency to be very high. We are looking at the adoption of specialty units to help provide unique services on a community basis. In pilot projects we are tying the culture, the process, and the structure altogether. Colleagues have stated that this is the most exciting time they’ve had in this structure. Rep. Rohr: I don’t see a section on the outcome, usually it’s structure, process, and outcome. How are you going to pull in the outcomes? Kim Jacobson: We are doing some metrics measurements to see the success of the pilot projects. Every pilot project that’s done will have that data collection model so we’ll be able to provide good information on the progress to the legislative body as well as to inform decision making for counties and for the department in moving forward. Sara Stolt, Department of Human Service Transformation Manager: Distributed written testimony, see attachment 1. Reviewed the different pilots and metrics. We identified Child Protection Services (CPS) as the first project we focused on based on their lack of timeliness and completing the CPS assessment as well as how quickly we believed we could improve that process. We started this process in June of 2018 by learning how to apply change in a system this large. We use a process called a Theory of Constraints. It’s a process and methodology we modeled after the state of Utah. We looked at our timeliness. We weren’t doing a great job on timeliness as a state. We had to build a process to shift this dramatically. Rep Rohr: How many of those cases were already open of those 805 cases? Sara Stolt: In just Cass County 239 cases were already open. I’d have to look at the remainder of the counties for that data but Cass County carries the largest volume of all the counties in the pilot. Kim Jacobson: Talked about the features and how it relates to the zone pilot process then we’ll talk about the expansion of the pilots (refer to attachment 1). One of the key factors of the CPS pilot was to encourage collaboration amongst the counties. We really focused on the statewide caseload that we’re serving the citizens of North Dakota versus residents of a


specific county. We went from a point of having to add more staff to being able to assist other agencies with their work load. Rep. Anderson: Will there come a time when you will be able to cut employees? This is where the real cost savings come in. Kim Jacobson: There is potential for that over time. We also know that we have a lot of service gaps; we don’t have a lot of consistent service across the state. Our hope is to be able to reinvest those dollars in our communities. I think there would be some savings but we certainly have needs. Our goal is to do more with what we’re appropriated with and to provide that service. Sara Stolt: Reviewed the CPS Redesign Expansion (refer to attachment 1). The feedback we’re hearing from this is excitement and now they can actually be a social worker and get to do what they were hired to do rather than all the administrative work. There is much more job satisfaction. The pilot decided to roll it out statewide right away. Our goal is to add additional counties every two to three months so by the end of 2019 we’ll have rolled out the CPS redesign across the entire state of North Dakota. Rep. Anderson: In Ward County is that being covered by Burke County or Renville County? Sara Stolt: That is being covered by Ward County. As we look at adding additional counties that could pivot and shift. Rep. Anderson: To me it makes no sense for someone from Minot to go up to the little notch when Mohall is right there. Sara Stolt: We agree with that. We’re finding that there has been a lack of collaboration that’s been reinforced by politics and geographic boundaries. Long term that would be our goal to have people who are closer geographically to serve those areas. Representative Kathy Skroch: In your pilot program you’ve consolidated what would be the most likely social service zones that are being established now. How many zones do you envision ending up with when this goes across the whole state? Sara Stolt: We developed the pilot prior to conversation around what zones would look like. The counties that were selected for pilot were selected regardless of what the zone model would look like. We still envision a structure of roughly 19 zones and that’s separate from how we would administer it. Think of zones as administrative hubs so even though they are going to overlap and work together this doesn’t necessarily define a zone going forward. Discussed the remaining pilots they are working on. Today we are in the process of kicking off our in-home pilot. We’re also doing childcare licensing pilot in looking at a creating a more efficient process for providers while still maintaining quality and safety for families who have children enrolled. We are also looking at creating a process that engages more potential providers. We’re kicking off the economic assistance pilot. We have to look at workload portability and how to make sure there are specialty teams that can do those complex cases across the state. Reviewed the planning phase tool for economic assistance which starts April 29 and 30, 2019.


Chairman Weisz: The whole purpose of SB 2124 is to do what they are currently trying to by implementing these pilots. The point is to deliver services better and more efficiently with improved quality.



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Explanation or reason for introduction of bill/resolution: Relating to creation of human service zones; relating to the establishment and operation of human service zone areas, taxing district levy limitations, and property tax statements; relating to administration of county social service boards and county human services fund, and caseload standards; to provide a penalty; to provide appropriation; to provide an effective date; to provide an expiration date; and to declare an emergency.

Minutes: Attachment 1,2,3

Chairman Weisz: Everyone got amendments that I handed out last night 19.8057.02001. There is a 19.8057.02002 but it’s a shift in language on the FTE’s. These amendments are a combination of questions and input of many different legislators. We will go through these and if there are any other sections of the bill you want to discuss, bring it to the table. On Page 1 of the amendment starting on page 4 of the bill. A question had come up and the bill host county state’s attorney will represent the zone. This amendment says that the zone board can hire any state’s attorney they feel qualified. For example, Bowman County can enter an agreement with Cass County state’s attorney. On Page 6, line 27; this is about equitable compensation and adds salary increases. Page 11 line 10; this was a typing error. This changes “design” to “designated”. Page 57, line 27; Addressing concerns to insure the department had a stronger control over the zone director. This gives the department “veto power” over the zone director hiree, as the department will have final decision rights. The Zone Director will implement what we are dictating, so the department should have some strong oversite over the director, as the state is paying for this. (See Attachment 1) Rep. Porter: Also included is “dismissal”. Can the department say the person is dismissed or do they just have input into the dismissal? Chairman Weisz: The language states the department would have ability to veto a dismissal, not dismiss directly. If you want further clarification, we can get that. Rep. Porter: If any personnel issue? Chairman Weisz: I believe only regarding the zone director, but any issue with the zone director.


Rep. Porter: It states Human service zone employees, not just the director. So they would have that authority over all employees? Chairman Weisz: That wasn’t the intent, but you are right, it says employees. Jonathan please explain. (0:10:12) Jonathan Alm, Attorney for the North Dakota Department of Human Services: To address the issue raised to us whether or not to limit the future ability of the counties or zones to continue to hire. Chairman Weisz: This would mean a particular zone wouldn’t just get to add 5 county employees. But the language doesn’t allow the department to dismiss an employee? But they would have the ability to disapprove of an employee? Jonathan Alm: That is correct. Chairman Weisz: Committee are we ok with this section? Seeing no objection. On Page 60, Issue having to do with the old language about county service area having to do with the sex, ethnicity, etc. The new language “whether the human service zone board is constituted of individuals that represent the population of the human service zones. In other words, the department has the ability to insure that the board of that zone fairly represents the area’s demographic makeup. For instance, an example we are wanting to avoid to insure proper representation; a Native American county without a county board member. Page 61, Per the original bill, once a zone was established, there didn’t appear to be a path to move to another zone. This process is now available. Page 66 line 19 on the page 2 of the amendment; Jonathan please explain? (0:15:10)) Jonathan Alm: It was to readdress the goals of the pilot projects and the duties of the Department of Human Services zones to clarify that process and to insure cooperation between them and the department. Chairman Weisz: Thank you. Page 66, Tightens up the language and reinforcing their ability to veto the zone director before they take action to hire. Line 20 clarifies the veto. Page 70 removed the requirement for local legislators for the board. Rep. Schneider: Page 67, line 7; “hire or separation” isn’t correct grammar. I suggest “hire or separate from” Chairman Weisz: Is there a reason for “separation”? Jonathan Alm: Just my poor English skills.


Chairman Weisz: We will change it to “separate”. 0:21:27 Chairman Weisz: Page 126: This is more of an Appropriation concern. Part of this takeover includes moving everyone to equal pay, for the same job. Per testimony, salaries differences were 0.75-1.1%. This addresses if a county gives a 5-7% increase upon this passing but before implementation. This was a concern because if you remember, nobody’s pay will be decreased. This amendment states the county cannot increase without the states approval. The county would have the same pay increase rate. There is money allocated in the fiscal that allows for the equalizing of pay rates. The dates of the salary increase is also included. Page 135; We want to know how this is working so a report has been requested, both in delivery and efficiency. The pilot program results you heard is what we should see on this report. They will report to us what they are doing, where the transactional costs are going, service delivery, etc. Page 135; addresses FTEs. If you recall the original bill could transfer up to 220 FTEs. It was a flexibility that could say, we can pull 5 from county and move them to state, or not. Generally, Appropriations and legislature, in general do not like flexibility with FTEs. The department came up with 140 FTEs and of those 33 are flexible and the remaining are specific. In other words, on page 3 of the amendment under a. 4 FTE serve as human service zone directors. 107 are Full time state positions. There is not a difference in the dollars but Appropriations is much more comfortable with only 33 being flexible. (0:29:51) Rep. Dobervich: If we are going to have 19 zones and 4 FTE to serve as zone operational directors, doesn’t each zone have a director? Chairman Weisz: That isn’t the zone director number, instead that is the overseers of the zone directors, operational directors. At this stage, zone directors are still county employees. Rep. Schneider Can I clarify that the department is okay with this monumental micromanagement? Jonathan Alm: Is it specifically as to the level of contingent FTEs or the permanent FTEs that are moving over? Rep. Schneider The change, from enlarged flexibility to precise figures and precise positions. Jonathan Alm: When we were approached we came up with the numbers that we were satisfied with and that we could move over this biennium or next. Of course we will be looking at the other pilot projects to see if there are any other modifications that need to occur in the future.


Chairman Weisz: To clarify further, they don’t necessarily have to move that many. They will have authorization to move that many but they may find it not necessary. (0:32:28) Jonathan Alm: Correct and same with the contingency ones. Chairman Weisz: This specifically authorizes them to move those 107 giving a comfort for appropriations. Rep. Dobervich: If 27 childcare licensing positions aren’t needed, so FTEs sit open but there is only 64 home and community based service case managers but they needed 70. Would they have to wait 2 more years to meet those needs the way this is written? Chairman Weisz: That’s part of where the 33 flexible FTEs would come in. Rep. Dobervich: It feels like it’s a lot, 40 less employees that’s a pretty significant number. Chairman Weisz: We aren’t reducing FTEs. This is merely whether they would transfer between state and county. Rep. Dobervich: If your position isn’t transferred you still have a job, you are just employed by county not by the state? Chairman Weisz: Yes, this reduces their flexibility of transferring from a county employee to a state employee. We are not reducing any FTEs at all. Rep. Dobervich: On page 136 and 137 of the bill, I don’t see home and community based at all but it’s in the amendment. Chairman Weisz: In a sense, that may have come from me, when we talked to Appropriation about this we needed to be more specific on where they are being housed or would be housed. So Appropriations felt a lot more comfortable with that. They broke it down into different areas. Rep. Dobervich: Do the counties have a copy of these amendments? Chairman Weisz: Yes. I feel like this is better for the counties, as they have it down to numbers. Now they have some direction that potentially there could be a transfer of 27 child care licensing, before it was 220 FTEs total flexibility. This could use a little more clarification on the county end and they can address that and they can come up to discuss that. Rep. Dobervich: I like to make sure that it sounds okay from the counties Kim Jacobson, Director Agassiz Valley Social Services: The counties weren’t part of the discussion but we have talked to the Department. Our concern would be it allows for provisions that might be unique to be able to be continued. We want to assure those


programs would continue to be provided. So it would be the delivery of services not the number of FTEs. Chairman Weisz: Further questions on FTEs? Seeing none. I have more amendments 19.8057.02003 and they are identical except under those positons it says they cannot increase the total number of FTEs over all. Page 5 on new amendments number 8 is the only change. That wraps up the first set of amendments for SB 2124. (see Attachment 2) (0:43:58) Rep. Rohr: I move to adopt amendment 19.8057.02003 plus the change on page 67 line 7, “separation” to “separate”. Rep. M. Ruby: Seconded. Chairman Weisz: For those in Morton county we did remove the absolute requirement for an urban area to have to be 1 zone. Voice Vote: Motion carried Rep. Devlin: Page 4 of the amendment subsection 7; Talking about the equipment being taken over by the department. There is furnishings and equipment the state may not want from the counties. After the words “section 141” I would suggest changing “must” to “may” and add “if requested.” So if the department would not want the equipment the county could dispose of it. Rep. Porter: Seconded. Voice Vote: Motion carried Chairman Weisz: Another amendment passed out 19.8057.02002. This simply makes the zone director a state employee. This seems simple, but language is complex to do it. (See Attachment 3). Rep. Schneider: Can we have background on where it came from and what motivated it? Chairman Weisz: Since the department is paying the bill, the zone director should be a state employee. Rep. M. Ruby: Move to adopt amendment 19.8057.02002 to SB 2124. Rep. Rohr: Seconded. (0:53:19) Rep. Skroch: I just took a phone call from a county social service office and they just had that meeting this morning. Discussing how they choose from the existing heads in their areas and select one and how much influence are they going to have on that zone director if they are hired by the state and no longer subject to the county level board.


Chairman Weisz: I will have the counties come up. Terry Traynor, North Dakota Association of Counties: This was probably the biggest issue with the original bill draft for county commissioners as well as county social service directors. The biggest concern on the overall delivery is maintaining local service delivery; the strength of the board and local employment of the director was viewed as critical to that happening. In addition, if talking of an individual that is going to hire and fire employees of the zone, which are essentially employees of the host county the testimony of the HR Director from Williams County, on the senate side, was really right on point. Where is the liability on that? How does a state employee fire a local employee and if there is a grievance how do you follow that through? You’re talking about a state action that affects a local employee. It was felt that all of those things could be worked out, it was a lot more complicated. Preserving local access, a stronger commitment by a local employee. Chairman Weisz: Are you fine with the prior amendments that tightened up the zone director? Terry Traynor: Yes Rep. M. Ruby: How does a county employee fire a state employee. Terry Traynor: I don’t think they would. They would be an employee of the state. Rep. Tveit: Looking at this amendment, I’m in favor of leaving it this biennium where it’s at. Not making the zone directors state employees. In 2 years if there’s a need we can do that. Chairman Weisz: This is not the departments position. There were concerns how to structure it and who’s in charge. They did not bring this forward. (0:58:35) Rep. Schneider: I think the amendments put a lot more control back into the state. I can see Mr. Trainor’s reasons and arguments for keeping this as a county employee. I would resist tampering with this until a later date, if necessary. Chairman Weisz: Any further comment? Seeing none. Roll Call Vote to adopt amendment 19.8057.02002 Yes 4 No 10 Absent 0 Motion fails Rep. Porter Move Do pass as amended, rerefer to appropriations Rep. Devlin Second Roll Call Vote Yes 14 No 0 Absent 0 Motion Carries, Do Pass as amended on SB 2124.


Chairman Weisz: Will carry the bill. Chairman Weisz: Closes meeting

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1 9.8057.02003 Title.

Prepared by the Legislative Council staff for Representative Weisz

March 25, 201 9

PROPOSED AMENDMENT S TO ENGROSSED SENATE BILL NO. 2 1 24

Page 2, line 7, after the first semicolon insert "to provide for a report ; "

Page 2 , line 8 , after the first semicolon insert "to provide for the transfer of employees ; "

Page 4 , line 5 , replace "of the host county i n which" with "within"

Page 4, line 6 , remove "office is located shall act as the legal adviser of the human"

Page 4 , replace lines 7 and 8 with ", by way of agreement, shall designate a singular state's attorneys office, within or outside the human service zone, to act as legal adviser of the human service zone. The host county state's attorney shall serve as the legal adviser if no agreement is reached. The agreement may not limit a state's attorneys individual discretion in court filings and representation. "

Page 4, line 1 2, after "zone" insert ", unless a different agreement is established by the affected state's attorney"

Page 4, line 1 4, overstrike "1 3 or 1 4" and insert immediately thereafter " 1 2 or 1 3"

Page 6, line 27, after "compensation" insert "and salary increases"

Page 1 1 , line 1 0, replace "designed" with "designated"

Page 39, line 3 1 , overstrike the first "or"

Page 39, line 3 1 , remove the overstrike over "county social"

Page 39, line 3 1 , remove "human"

Page 39, line 3 1 , remove the overstrike over "ooam" and insert immediately thereafter ", or human service"


Page 57, line 29, after "members" insert ", and agree to seek approval from the department regarding hiring or dismissal of county social services or human service zone employees"

Page 58, line 30, after the second "positions" insert "or a human service zone team members separation from employment"

Page 60, remove lines 22 and 23

Page 60, line 24, replace "k. " with "1." Page 60, line 26, replace "L." with "k. "

Page 60, line 28, replace "m. " with "L. Whether the human service zone board is constituted of individuals that represent the population of the human service zone.

n,_"

• Page 6 1 , line 2, after "thereafter" insert "through a process developed by the department"

Page 6 1 , line 23, after "department" insert "through a process developed by the department"

Page No. 1 1 9.8057.02003

, line 21, after "department" insert "through a process developed by the department"

Page 66, line 17, replace "As necessary" with "If applicable"

Page 66, line 18, after "programs" insert "under the director of the department and"

Page 66, line 18, replace "substantially similar" with "the"

Page 66, line 18, replace ", benefits, or objectives" with "of enhancing quality, effectiveness, and efficiency of programs and services"

Page 66, line 19, after ".11,_" insert "Cooperate with the department or other human service zones in revising human service zone operations to reflect department guidelines or best practices that may be based on recommendations from experimental or pilot programs.

12.,,"

Page 66, line 23, replace "12." with "13 . "

Page 66, line 25, replace "13." with ".1±."

Page 67, line 7, after "hire" insert "or separation from employment"

Page 67, line 9, after "positions" insert "by the department"

Page 67, line 16, replace "in partnership with" with "as agreed upon by"


Page 68, line 20, after "zone" insert ", agreement,"

Page 68, line 20, after "plan" insert "which may include requiring the reconstituting of the human service zone board or rehiring of a human service zone director as part of a new or modified agreement or plan"

Page 68, line 28, after "panel" insert " . The department shall approve or disapprove of the recommendation for the human service zone director from the human service zone board and interview panel before the human service zone board takes action to hire the human service zone director"

Page 70, line 8, remove ", state elected"

Page 70, line 9, remove "officials,"

Page 70, line 9, remove "sex, race, and ethnicity must be fairly"

Page 70, remove line 10

Page 72, line 13, replace "Hire, supervise," with "Supervise"

Page 72, line 14, after "department" insert ". Hire the human service zone director with the express approval of the department"

Page 126, line 6, after the first "and" insert "salary"

Page 126, line 6, after "increases" insert ". The department may limit future salary increases for human service zone team members who received a salary increase from the county

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commissioners or county social service board for calendar year 2018 or 2019 which • was above the salary increase provided by the legislative assembly for state

employees or who receive a wage above equitable compensation"

Page No. 2 19.8057.02003

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Page 126, line 23, after "director" insert ", during the period between January 1, 2020, and December 31, 2021,"

Page 126, line 24, after the first "department" insert ", during the period between January 1, 2020, and December 31, 2021"


"SECTION 140. REPORT TO SIXTY-SEVENTH LEGISLATIVE ASSEMBLY DEPARTMENT OF HUMAN SERVICES. The department of human services shall submit to the appropriations committees of the sixty-seventh legislative assembly a report with metrics that include the cost per unit of work for transactional services or caseloads and other performance metrics as available . The department of human services shall submit trends in these metrics for selected programs or geographies that have undergone concentrated process improvement efforts under pilot projects or otherwise in collaboration with the department. "

Page 135, line 20, replace "two hundred twenty-three" with "thirty-three"

Page 135, line 26, replace "a" with ":

a. A"


"b . An increase in county social services employees or human service zone team members delivering human services programs, services, or functions. "


Page 136, remove lines 16 through 21

Page 136, line 22, replace "c. " with "a. "



Page 137, line 4, replace "g. " with "b. "

Page 137, line 4, replace "One hundred four" with "Sixteen"

Page 137, line 5, remove "the supplemental nutrition"


Page 137, line 8, replace "related activities" with "long-term care eligibility determination"


Page 137, line 12, replace "i. " with "c. "

Page 137, line 12, replace "Ten" with "Three"

Page 137, line 14, replace "two hundred twenty-eight" with "thirty-three"


"SECTION 142. TRANSFER O F EMPLOYEES - HEALTH INSURANCE COVERAGE.

Page No. 3 19.8057.02003

1. The following full-time equivalent positions of a county or human service zone become full-time equivalent positions of the department of human services upon notice of transfer to the human service zone director or • county commissioners:

a. Four full-time equivalent positions to serve as human service zone operational directors to provide supervision and technical assistance to the human service zones.

b. Twenty-seven full-time equivalent child care licensing positions.

C. Two full-time equivalent adoption assistance eligibility determination and adoption case management or related administration positions.

d. Sixty-four full-time equivalent home and community-based services case management positions.

e. Three full-time equivalent positions to assist with the human service zones, human service zone plans, or formula payments, or to relieve human service zones of miscellaneous duties, including estate recovery.

f. Seven full-time equivalent positions to serve as quality control to the human service zones.

2. Of the one hundred seven full-time equivalent positions in this section, the department of human services may adjust or increase full-time equivalent positions as transfers from one or more host counties for management support to administer the powers and duties transferred.

3. Any employee who becomes a state employee under this section or • section 141 is entitled to receive a salary in an amount not less than the salary received as an employee of the county or host county.

4. The department may limit future salary increases for an employee who is transferred under this section or section 1 41 who received a salary increase from their former county commissioners or county social service board for the calendar years 2018 or 2019 above the salary increase provided by the legislative assembly for state employees or who receive a wage above equitable compensation.

5. Each year of county or host county employment of an employee who is transferred under this section or section 141 will be considered a year of state employment for purposes of section 54-06-14.

6. Before the transfer of the full-time equivalent position from the county or host county to the department of human services, the county or host county shall pay the employer's share of any premium that is necessary to continue any existing health insurance coverage for an employee who is transferred under this section for one month after the effective date of this transfer.

7 . Any equipment, including technology-related equipment, furnishings, and supplies in the control and custody of a county or human service zone on • the effective date of an employment transfer f rom the county or host county to the department of human services under this section or

Page No. 4 19.8057.02003

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section 141, must be transferred to the control and custody of the department of human services .

8. Any position added to the department of human services under this section would be position transfers from the human service zone and may not result in:

a. A net addition of positions delivering human services programs, services, or functions under the appropriation provided in Senate Bill No. 2012, as approved by the sixty-sixth legislative assembly.

b. An increase in county social services employees or human services zone team members delivering human services programs, services, or functions."

Page 137, line 18, replace "Section" with "Sections"

Page 137, line 18, after "64" insert "and 142"

Page 137, line 18, replace "becomes" with "become"

Page 137, line 21, after "139" insert ", 140"



Page No. 5 19. 8057.02003

1 9.8057.02002 Title.


March 25, 201 9

PROPOSE D AMEN DMENTS TO ENGROSSED S ENATE BILL NO. 2 1 24

Page 1 , line 1 , replace "five" with "four"

Page 25, line 25, after "�" insert ""Human service zone director" means a department of human services employee who oversees the operation and budget of a human service zone and serves as presiding officer of the human service zone board and authorized agent of the human service zone.

Page 25, line 26, replace " 1 6. " with " 1 7 ."

Page 26, line 1 , replace " 1 7. " with " 1 8. "

Page 27, line 6, replace " 1 8. " with " 1 9. "

Page 27, line 8, replace " 1 9. " with "20. "

Page 27, line 1 6, replace "20. " with "21 ."

Page 27, line 1 7, replace "21 . " with "22. "

Page 28, line 3 , replace "22." with "23 . "

Page 34 , line 29, overstrike "director of the"

Page 43, line 25, overstrike "director"

Page 56, line 1 , replace "human service zone team member" with "department of human services employee"

Page 56, line 3, after "board" insert "and authorized agent of the human services zone"

Page 66, line 23, replace "Employ a" with "Cooperate with the"

Page 66, line 24, after "board" insert "and authorized agent of the human service zone"

Page 67, line 1 , replace "human service zone" with "department of human services"


Page 67, line 2 1 , replace the first "department" with "human service zone"

Page 67, line 2 1 , replace "department employees" with "human service zone team members"

Page 67, line 23, after "department" insert "and human service zone"

Page 67, line 24, after "department" insert "or human service zone"


Page 72, line 1 3, remove "Hire, supervise, and take other personnel actions related to the human service zone"

Page 72, remove lines 1 4 through 1 8

Page No. 1 19.8057.02002

, line 19, remove "6."

Page 123, line 29, replace "human service zone team member" with "department of human services employee"


Page 137, line 19, after "Sections" insert "131,"

Page 137, line 19, after the second comma insert "and"

Page 137, line 19, remove ", and 135"

Page 137, line 21, remove "7 4, 76 through 82, 84 through 91, 93 through 129, 131, 136, 137, 139, "

Page 137, line 22, replace "and 140" with "73, 75 through 81, 83 through 90, 92 through 128, 130, 135, 136, 138, and 139"



Page No. 2 19.8057.02002

19.8057.02004 Title.03000

Adopted by the House Human Services Committee

March 26, 2019

PROPOSED AMENDMENTS TO ENGROSSED SENATE BI LL NO. 2 1 24

Page 2, line 7, after the first semicolon insert "to provide for a report;"

Page 2, line 8, after the first semicolon insert "to provide for the transfer of employees;"

Page 4, line 5, replace "of the host county in which" with "within"

Page 4, line 6, remove "office is located shall act as the legal adviser of the human"

Page 4, replace lines 7 and 8 with ", by way of agreement, shall designate a singular state's attorneys office, within or outside the human service zone. to act as legal adviser of the human service zone. The host county state's attorney shall serve as the legal adviser if no agreement is reached. The agreement may not limit a state's attorneys individual discretion in court filings and representation."

Page 4, line 12, after "zone" insert ", unless a different agreement is established by the affected · state's attorney"

Page 4, line 14, overstrike "13 or 14" and insert immediately thereafter "12 or 13"


Page 11, line 10, replace "designed" with "designated"

Page 39, line 31, overstrike the first "or"

Page 39, line 31, remove the overstrike over "county social"


Page 39, line 31, remove the overstrike over "aeam" and insert immediately thereafter ", or human service"



Page 58, line 30, after the second "positions" insert "or a human service zone team member's separation from employment"


Page 60, line 24, replace "k." with "L" Page 60, line 26, replace "L." with "k."

Page 60, after line 27 insert:

"L. Whether the human service zone board is constituted of individuals that represent the population of the human service zone."

Page 61, line 2, after "thereafter" insert "through a process developed by the department"

Page 61, line 23, after "department" insert "through a process developed by the department"

Page No. 1 19.8057.02004

, line 2 1 , after "department" insert "through a process developed by the department" 3/zw /l o/

Page 66, line 1 7, replace "As necessary" with "If applicable" -Z.. � S""" Page 66, line 18, after "programs" insert "under the director of the department and"

Page 66, l ine 1 8, rep lace "substantia l ly simi lar" with "the"

Page 66, line 1 8, replace ", benefits, or objectives" with "of enhancing quality, effectiveness, and efficiency of programs and services"

Page 66, line 1 9, after "1.i" insert "Cooperate with the department or other human service zones in revising human service zone operations to reflect department guidelines or best practices that may be based on recommendations from experimental or pilot programs.

Page 66, line 23, replace " 1 2." with ".Ll.:."

Page 66, line 25, replace ".Ll.:." with "�"

Page 67, line 7, after "hire" insert "or separate from employment"


Page 67, line 1 6, replace "in partnership with" with "as agreed upon by"

Page 67, line 1 6, after "compensation" insert "and salary increases"



Page 68, line 28, after "panel" insert ". The department shall approve or disapprove of the recommendation for the human service zone director from the human service zone board and interview panel before the human service zone board takes action to hire the human service zone director"



Page 70, line 9, overstrike "sex"

Page 70, line 9, remove ", race, and ethnicity must be fairly"

Page 70, remove line 1 0

Page 72, line 1 3, replace "Hire, supervise," with "Supervise"

Page 72, line 1 4, after "department" insert ". Hire the human service zone director with the express approval of the department"

Page 1 26, line 6, after the first "and" insert "salary"

Page 1 26, line 6, after "increases" insert ". The department may limit future salary increases for human service zone team members who received a salary increase from the county commissioners or county social service board for calendar year 201 8 or 201 9 which

Page No. 2 1 9.8057.02004

was above the salary increase provided by the legislative assem bly for state employees or who receive a wage above equitable compensation"

Page 126, line 23, after "director" insert ", during the period between January 1, 2020, and December 31, 2021,"

Page 126, line 24, after the first "department" insert ", during the period between January 1, 2020, and December 31, 2021"


"SECTION 140. REPORT TO SIXTY-SEVENTH LEGISLATIVE ASSEMBLY DEPARTMENT OF HUMAN SERVICES. The department of human services shall submit to the appropriations committees of the sixty-seventh legislative assembly a report with metrics that include the cost per unit of work for transactional services or caseloads and other performance metrics as available. The department of human services shall submit trends in these metrics for selected programs or geographies that have undergone concentrated process improvement efforts under pilot projects or otherwise in collaboration with the department."


Page 135, line 26, replace "a" with ":

a. A"


"b. An increase in county social services employees or human service zone team members delivering human services programs, services, or functions."



Page 136, line 22, replace "c." with "a. "



Page 137, line 4, replace "g." with "b."

Page 137, line 4, replace "One hundred four" with "Sixteen"

Page 137, line 5, remove "the supplemental nutrition"


Page 137, line 8, replace "related activities" with "long-term care eligibility determination"


Page 137, line 12, replace "i." with "c."

Page 137, line 12, replace "Ten" with "Three"

Page 137, line 14, replace "two hundred twenty-eight" with "thirty-three"


Page No. 3 19.8057.02004

"SECTION 142. TRANSFER OF EMPLOYEES - HEALTH INSURANCE COVERAGE.

1. The following full-time equivalent positions of a county or human service zone become full-time equivalent positions of the department of human services upon notice of transfer to the human service zone director or county commissioners:

a. Four full-time equivalent positions to serve as human service zone operational directors to provide supervision and technical assistance to the human service zones.

b. Twenty-seven full-time equivalent child care licensing positions.

c. Two full-time equivalent adoption assistance eligibility determination and adoption case management or related administration positions.





3. Any employee who becomes a state employee under this section or section 141 is entitled to receive a salary in an amount not less than the salary received as an employee of the county or host county.

4. The department may limit future salary increases for an employee who is transferred under this section or section 141 who received a salary increase from their former county commissioners or county social service board for the calendar years 2018 or 2019 above the salary increase provided by the legislative assembly for state employees or who receive a wage above equitable compensation.



Page No. 4 19.8057.02004

7. Any equipment, including technology-related equipment, furnishings, and supplies in the control and custody of a county or human service zone on the effective date of an employment transfer from the county or host county to the department of human services under this section or section 1 4 1 , may be transferred to the control and custody of the department of human services if requested.


a. A net addition of positions delivering human services programs, services, or functions under the appropriation provided in Senate Bill No. 201 2, as approved by the sixty-sixth legislative assembly.

b. An increase in county social services employees or human service zone team members delivering human services programs, services, or functions."

Page 1 37, line 1 8, replace "Section" with "Sections"

Page 1 37, line 1 8, after "64" insert "and 1 42"

Page 1 37, line 1 8, replace "becomes" with "become"

Page 1 37, line 2 1 , after " 1 39" insert ", 1 40"

Page 1 37, line 22, replace " 1 40" with "1 4 1 "


Page No. 5 1 9.8057.02004

House Human Services

2019 HOUSE STANDING COMMITTEE ROLL CALL VOTES

BILL/RESOLUTION NO. 21 }:f

D Subcommittee

Amendment LC# or Description:

Recommendation: pd Adopt Amendment

Date: &;}/a � / � Rol l Ca l l Vote #: , (

Committee

D Do Pass D Do Not Pass D As Amended

D Without Committee Recommendation D Rerefer to Appropriations

D Place on Consent Calendar Other Actions: D Reconsider

Motion Made By f<e.p. \".<o �,,.

Representatives Robin Weisz - Chairman Karen M. Rohr - Vice Chairman Dick Anderson Chuck Damschen Bill Devlin Clayton Fegley Dwight Kiefert Todd Porter Matthew Ruby Bill Tveit Greg Westlind Kathy Skroch

Total

Absent

(Yes)

Floor Assignment

Yes No

·�

No

I f the vote is on an amendment, briefly indicate intent:

V\U11 UV\ c� s

D

Representatives Yes No Gretchen Dobervich Mary Schneider

' :,.

Date: 3 - Z.(,, -1 '1 Rol l Ca l l Vote #: ;;J.. •

2019 HOUSE STANDING COMMITTE E ROLL CALL VOTES

BILL/RESOLUTION NO. SB a.. ) � y House Human Services Committee

D Subcommittee

Amendment LC# or Descri ption : (I $ o-.\JSech• o Y\ '7 �-....:..._'----f--+-w�O-f' �-�-��

=��'----'i'�=------..c'--,,,,-c--=�---=-n-

Recommendation : �Adopt Amendment D Do Pass D Do Not Pass D As Amended D Place on Consent Calendar

Other Actions : D Reconsider

D Without Committee Recommendation D Rerefer to Appropriations

D

Motion Made By l'L.e . D e.\j I ; O Seconded By £o �- r O �

Representatives Yes No Robin Weisz - Chairman Karen M. Rohr - Vice Chairman Dick Anderson Chuck Damschen Bill Devlin Clayton Fegley Dwight Kiefert I " Todd Porter -Matthew Ruby ' ro{\ LU'-" Bill Tveit ' \.) \. Greg Westlind Kathy Skroch

(Yes) No Total

Absent

-----------

Floor Assignment


Representatives Yes No Gretchen Dobervich Mary Schneider

' J\ �

fT -

Date: 3 .. 'Z.,(o - l 'j Rol l Cal l Vote #: 3


BILL/RESOLUTION NO. 5 B 2' J � '-I House Human Services Committee

D Subcommittee

Amendment LC# or Description: __ j _Cf-t---=-• _<i-'0'--51___,__' --=Q_;J.._"---0_0�;;;,..__--------

Recommendation: �dopt Amendment D Do Pass D Do Not Pass D Without Committee Recommendation

Other Actions:

D As Amended D Place on Consent Calendar D Reconsider

D Rerefer to Appropriations

D

Motion Made By R, 1 f). , ('I\ • � Seconded By � • Ro-b \_

Representatives Yes No Representatives Yes Robin Weisz - Chairman 'f.. Gretchen Dobervich Karen M. Rohr - Vice Chairman "f.... Mary Schneider Dick Anderson )( Chuck Damschen '{ Bill Devlin "f:.. Clayton Feqlev )( Dwiqht Kiefert "' Todd Porter '{:... Matthew Ruby '{. Bill Tveit � Greg Westlind 'k

,

Kathy Skroch y:._

No X 't

Total

Absent

(Yes) __ Lf�-- No ----'-' 0 ____ _

Floor Assignment


D i re ,.+·O'"t <>-!J r 4-- s -tn±[.

Date :32&'1/ Rol l Cal l Vote IC �

House Human Services


1 (, BILL_sa?-,\ )-�

D Subcommittee

Amendment LC# or Description : \q .iosl . Q?--00� 1T+::k D3ooo Recommendation : D Adopt Amendment

Committee

� Do Pass D Do Not Pass � As Amended D Place on Consent Calendar

D Without Committee Recommendation �Rerefer to Appropriations

Other Actions : D Reconsider D

Motion Made%£· -�-&/-�------- Seconded� - ----��_L __ -_____ _ Representatives Yes No Representatives Yes No

Robin Weisz - Chairman )({ Gretchen Dobervich X Karen M. Rohr - Vice Chairman 7-- Mary Schneider "'A' Dick Anderson )<.i I.I

Chuck Damschen \.::'.': Bill Devlin y__ Clayton Fegley 'f.,_ Dwight Kiefert "''I... Todd Porter � Matthew Ruby ,,

'\ Bill Tveit y Greq Westlind I� Kathy Skroch Y.,

Total (Yes) fy / No rt) Absent rCJ Floor Assi--'gn;_m

_e_

n_t....,.,�...-

-( A

-

�

-<-------------------

-

lf the vote is on an amendment, briefly indicate intent:

Com Stand ing Committee Report March 27, 201 9 9 :06AM

Module I D : h_stcomrep_54_002 Carrier: Weisz

Insert LC: 1 9 .8057.02004 Title : 03000

REPORT OF STAN DING COMMITTEE S B 21 24, as engrossed : Human Services Committee (Rep. Weisz, Cha i rman)

recommends AMENDMENTS AS FOLLOWS and when so amended , recommends DO PASS and BE REREFERRED to the Appropriations Committee ( 1 4 YEAS , 0 NAYS, 0 ABSENT AND NOT VOTI NG) . Engrossed SB 2 1 24 was p laced on the S ixth o rder on the ca lendar.

Page 2 , l i ne 7 , after the first semicolon insert "to provide for a report ; "

Page 2 , l i ne 8 , after the fi rst semicolon i nsert "to provide for the transfer of employees ; "

Page 4 , l i ne 5 , rep lace "of the host county i n wh ich" with "with in "

Page 4 , l i ne 6 , remove "office is located sha l l act as the lega l adviser of the h uman"

Page 4 , rep lace l i nes 7 and 8 with ", by way of agreement, sha l l designate a s i ngu lar state's attorneys office, with i n or outside the human service zone, to act as legal adviser of the h uman service zone . The host county state's attorney sha l l serve as the legal adviser if no agreement is reached . The agreement may not l im i t a state's attorneys i nd iv id ua l d iscret ion in court fi l i ngs and representation . "

Page 4 , l i ne 1 2 , after "zone" i nsert ", un less a d ifferent agreement is estab l ished by the affected state's attorney"

Page 4 , l i ne 1 4 , overstrike " 1 3 or 1 4" and i nsert immed iate ly thereafter " 1 2 or 1 3"

Page 6 , l i ne 27 , after "compensation" insert "and salary increases"

Page 1 1 , l i ne 1 0 , rep lace "designed" with "designated"

Page 39 , l i ne 3 1 , overstri ke the fi rst "or"

Page 39 , l i ne 3 1 , remove the overstrike over "county social"

Page 39 , l i ne 3 1 , remove "human"

Page 39 , l ine 3 1 , remove the overstrike over "eeaFG" and i nsert immed iately thereafter "......Q[ human serv ice"

Page 57 , l i ne 28 , remove "and"

Page 57 , l ine 29, after "members" insert ", and agree to seek approval from the department regard i ng h i ri ng or d ism issal of county socia l se rvices or human service zone employees"

Page 58, l i ne 30, after the second "posit ions" insert "or a human service zone team member's separation from employment"

Page 60 , remove l i nes 22 and 23

Page 60 , l i ne 24 , rep lace "�" with "L" Page 60 , l i ne 26 , rep lace "L" with 'K" Page 60 , after l i ne 27 i nsert :

"L Whether the human service zone board is constituted of i nd iv idua ls that represent the popu lat ion of the human service zone . "

Page 6 1 , l i ne 2 , after "thereafter" i nsert "th rough a process developed by the department"

( 1 ) DESK (3) COMMITTEE Page 1 h_stcom rep_54_002

Com Standing Committee Report March 27, 201 9 9 :06AM

Modu le ID: h_stcomrep_54_002 Carrier: Weisz

Insert LC : 1 9 .8057.02004 Title : 03000

Page 6 1 , l ine 23, after "department" insert "th rough a process developed by the department"

Page 63, l i ne 2 1 , after "department" i nsert "th rough a process developed by the department"

Page 66, l i ne 1 7 , replace "As necessary" with "If appl icable"

Page 66, l ine 1 8 , after "programs" i nsert " u nder the d i rector of the department and"

Page 66, l i ne 1 8 , replace "substant ia l ly s im i lar" with "the"

Page 66, l i ne 1 8 , replace ", benefits, or objectives" with "of enhancing qua l ity, effectiveness, and effic iency of programs and services"

Page 66, l i ne 1 9 , after ".11." i nsert "Cooperate with the department or other h u man service zones i n revis i ng h u man service zone operations to reflect department gu ide l i nes or best practices that may be based on recommendations from experimenta l or pi lot programs.

R" Page 66, l i ne 23 , replace "R" with ".1.;i_"

Page 66, l i ne 25 , replace ".1.;i_" with "�"

Page 67 , l i ne 7, after " h i re" i nsert "or separate from employment"

Page 67 , l i ne 9 , after "pos it ions" i nsert "by the department"

Page 67 , l i ne 1 6 , replace " i n partnersh ip with" with "as agreed upon by"

Page 67 , l i ne 1 6 , after "compensation" i nsert "and sa lary increases"

Page 68, l i ne 20 , after "zone" i nsert ", agreement,"

Page 68, l i ne 20 , after 1 1Q.@Q" insert "wh ich may inc lude requ ir ing the reconst itut i ng of the human service zone board or reh i r i ng of a human service zone d i rector as part of a new or mod ified agreement or plan"

Page 68 , l i ne 28 , after "pane l " i nsert " . The department sha l l approve or d isapprove of the recommendation for the h uman serv ice zone d i rector from the h uman service zone board and interview pane l before the human service zone board takes action to h i re the h uman service zone d i rector"

Page 70 , l i ne 8, remove ", state e lected"

Page 70, l ine 9 , remove "offic ia ls."

Page 70, l i ne 9, overstrike "sex"

Page 70, l i ne 9 , remove ", race. and eth n ic ity must be fa i rly"

Page 70, remove l i ne 1 0

Page 72, l i ne 1 3 . replace "H i re. supervise." with "Supervise"

Page 72 , l i ne 1 4 , after "department" i nsert " . H i re the human service zone d i rector with the express approva l of the department"

Page 1 26 , l i ne 6 , after the fi rst "and" insert "sa lary"

( 1 ) DESK (3) COMMITTEE Page 2 h_stcom rep_54_002


Modu le ID : h_stcomrep_54_002 Carrier: Weisz

Insert LC: 1 9 .8057.02004 Title : 03000

Page 1 26 , l i ne 6, after " i ncreases" insert " . The department may l im it futu re salary increases for human service zone team members who rece ived a salary i ncrease from the cou nty commissioners or county social service board for ca lendar year 20 1 8 or 201 9 wh ich was above the salary increase provided by the legis lative assembly for state employees or who rece ive a wage above equ itable compensation"

Page 1 26 , l ine 23 , after "d i rector" insert ". du ri ng the period between January 1. 2020. and December 3 1 , 202 1 ,"

Page 1 26 , l i ne 24 , after the fi rst "department" i nsert ", du ri ng the period between January 1 . 2020. a n d December 3 1 . 202 1 "

Page 1 35 , after l i ne 1 5 , i nsert:

"SECTION 1 40 . REPORT TO SIXTY-SEVENTH LEGISLATIVE ASSEMBLY -D E PARTMENT OF HUMAN SERVICES. The department of human services sha l l subm it to the appropriations comm ittees of the sixty-seventh leg is lative assembly a report with metrics that i nclude the cost per un it of work for transactiona l serv ices or caseloads and other performance metrics as ava i lab le . The department of h uman services sha l l submit trends in these metrics for selected programs or geograph ies that h ave u ndergone concentrated process im provement efforts under p i lot projects or othe rwise in co l laboration with the department. "

Page 1 35 , l i ne 20 , rep lace "two hundred twenty-th ree" with "th i rty-th ree"

Page 1 35 , l i ne 26, rep lace "a" with " :

a . A"

Page 1 35 , after l i ne 29 , i nsert :

" b . An i ncrease i n county social services employees or human service zone team members del iveri ng h uman services prog rams, services, or fu nctions . "

Page 1 36 , l i ne 1 3 , rep lace "two hundred twenty-th ree" with "th i rty-th ree"

Page 1 36 , remove l i nes 1 6 through 2 1

Page 1 36 , l i ne 22 , rep lace "c . " with "a . "

Page 1 36 , remove l i nes 25 through 29

Page 1 37 , remove l i nes 1 through 3

Page 1 37 , l i ne 4 , rep lace "g . " with "b . "

Page 1 37 , l i ne 4 , rep lace "One hund red four" with "Sixteen"

Page 1 37 , l ine 5 , remove "the supplemental n utrition"

Page 1 37 , remove l i nes 6 and 7

Page 1 37 , l i ne 8 , replace "related activities" with " long-term care e l i g ib i l ity determ inat ion"

Page 1 37 , remove l i nes 9 th rough 1 1

Page 1 37 , l i ne 1 2 , replace " i . " with "c. "

Page 1 37 , l i ne 1 2 , rep lace "Ten" with "Three"

( 1 ) DESK (3) COMMITTEE Page 3 h_stcomrep_54_002

Com Standing Committee Report March 27, 201 9 9 :06AM

Modu le ID : h_stcomrep_54_002 Carrier: Weisz

Insert LC: 1 9 .8057.02004 Title : 03000

Page 1 37 , l ine 1 4 , rep lace "two hund red twenty-e ig ht" with "th i rty-th ree"

Page 1 37 , after l i ne 1 7 , i nsert :

"SECTION 1 42 . TRANSFER OF EMPLOYEES - H EALTH I N S U RANC E COVERAGE.

1 . The fo l lowi ng fu l l -time equ iva lent pos it ions of a cou nty o r h uman service zone become fu l l -t ime equ ivalent pos it ions of the department of h uman services u pon notice of transfer to the human serv ice zone d i rector o r cou nty commissioners :

a . Four fu l l -time eq u iva lent positions to serve as h uman serv ice zone operationa l d i rectors to provide supervis ion and techn ical ass istance to the human service zones.

b . Twenty-seven fu l l-t ime equ ivalent ch i ld care l icens ing pos itions .

c. Two fu l l -t ime equ iva lent adoption assistance e l i g i b i l ity determ inat ion and adoption case management or re lated adm in istrat ion posit ions .

d . Sixty-fou r fu l l -time equ iva lent home and comm u n ity-based serv ices case management pos it ions.

e. Th ree fu l l -time equ iva lent pos it ions to assist with the human serv ice zones, human service zone p lans , or form u la payments, o r to re l ieve human service zones of misce l laneous duties , i nc l ud i ng estate recovery.

f. Seven fu l l -t ime eq u ivalent pos it ions to serve as qua l ity control to the h u man service zones.

2 . Of the one h u ndred seven fu l l -time equ ivalent pos i t ions i n th is section , t he department o f human services may adj ust or i ncrease fu l l -time equ iva lent pos it ions as transfers from one or more host count ies for management support to admin ister the powers and duties transferred .

3 . Any employee who becomes a state employee u nder t h i s section o r sect ion 14 1 is entit led to rece ive a salary i n an amoun t not less t han the sa lary rece ived as an employee of the county or host cou nty.

4 . The department may l im it futu re salary increases for an emp loyee who is transferred u nder th is section or section 1 4 1 who rece ived a sa lary i ncrease from their former county commissioners or coun ty soc ia l service board for the ca lendar years 20 1 8 or 20 1 9 above the sa lary i ncrease provided by the leg is lative assembly for state employees or who receive a wage above equ itab le compensation .

5 . Each year of county or host county employment of an employee who is transferred under th is section or section 1 4 1 w i l l be cons idered a year of state employment for pu rposes of section 54-06- 1 4 .

6 . Before the transfer of the fu l l -t ime eq u iva lent posit ion from the cou nty or host cou nty to the department of human serv ices , the coun ty or host cou nty sha l l pay the employer's share of any prem i u m that is necessary to cont i nue any existi ng health i nsurance coverage for an employee who is transferred under th is section for one month after the effective date of th is transfer.

7 . Any equ i pment, i nc lud ing technology-related eq u i pment, fu rn ish ings , and supp l ies i n the contro l and custody of a county or human service zone on



Modu le I D : h_stcomrep_54_002 Carrier: Weisz

Insert LC: 1 9 .8057.02004 Title : 03000

the effective date of an employment transfer from the cou nty or host county to the department of human services u nder th is sect ion or sect ion 1 4 1 , may be transferred to the contro l and custody of the department of human services if requested .

8 . Any pos it ion added to the department of human services u nder th is sect ion wou ld be posit ion transfers from the human serv ice zone and may not resu l t i n :

a . A net add ition of posit ions del ivering human services programs, services, or funct ions under the appropriat ion provided i n Senate B i l l No . 20 1 2 , as approved by the s ixty-sixth leg is lative assembly.

b . An i ncrease in county socia l services employees or human service zone team members del iveri ng h uman services programs, services, or functions . "

Page 1 37 , l i ne 1 8 , replace "Section" with "Sections"

Page 1 37 , l i ne 1 8 , after "64" i nsert "and 1 42"

Page 1 37 , l ine 1 8 , rep lace "becomes" with "become"

Page 1 37 , l i ne 2 1 , after " 1 39" i nsert ", 1 40"

Page 1 37 , l i ne 22, rep lace " 1 40" with " 1 4 1 "

Renu m ber accord i ng l y

( 1 ) DESK ( 3 ) COMMITTEE Page 5 h_stcomrep_54_002

2019 HOUSE APPROPRIATIONS

SB 2124


Appropriations Committee Roughrider Room, State Capitol

SB 2124 3/28/2019

#34353

☐ Subcommittee


Committee Clerk: Risa Bergquist ~typed by Jeanette Cook


Relating to administration of county social service boards, the county human services fund, and caseload standards; to provide for a report; to provide a penalty; to provide a contingent appropriation; to provide for the transfer of employees; to provide an effective date; to provide an expiration date; and to declare an emergency.

Minutes: Attachment # 1

Chairman Delzer opened the hearing on SB 2124. This is the big social service take-over bill. It does have a fiscal note. Representative Weisz, District 14, provided a summary sheet that shows the changes in each section. See attachment #1 page 1. Chairman Delzer: Are most of these changes we have to do? Representative Weisz: That is correct. Most of the sections deal with change of county social serves, county social service board, the human services, etc. They have to be changed in our law to place this in code. The summary shows the main parts of the bill and what it does. It shows the structure that we are setting up. Section 140 may be of most interest to the Appropriations Committee. It talks about the transfer of the FTEs and some flexibility. Chairman Delzer: Talk a little bit about how the pilot project worked, and changes from what we did. Then we will want to get into the money and the explanation for the revised fiscal note. Representative Weisz: Last session we passed the process of moving the funding of county social services to the state. The pilot project was strictly just a grant, and nothing changed on the county end. We gave them a fixed pot of money based on historical spending, and that is what they had to work with. We didn’t change any structure, make up, or how money was distributed. That was put into place with 2206 last session. Part of the pilot project was to establish how they should function going forward. The department, the counties, and other parties worked on this for the full interim. That is what we have in front of us. What has been

House Appropriations Committee SB 2124 March 28th 2019 Page 2

established is the creation of zones. This legislation allows up to nineteen Human Service zones. The counties have to try to come up with a zone they want to work with. They have until December 1, 2019 to decide that. Some counties are already working together as multi-county units. They can request to become a Human Service zone. It also says that a county that has a population of 60,000 or greater could be one Human Service zone by themselves. That is part of the structure. The counties make agreements on what they want for a zone. If it is not turned in by December 1st, the department has the ability to choose the zones. 7:20 Representative Brandenburg: If the counties don’t agree, they are just going to get moved? It is kind of like a takeover isn’t it? Representative Weisz: This is a takeover. Chairman Delzer: If we are paying for everything, the state is going to say how it’s done. Representative Weisz: I understand your concern, but the point is to deliver better quality service with more efficiency. If the county is not willing to work, we will make them work. They have every opportunity to form a zone with neighboring counties that will work with them. If they don’t work together, that is unfortunate. 8:50 Representative Boe: What do we do if there’s a county that doesn’t find anyone that wants to work with them? Representative Weisz: The department will then determine where they go. Chairman Delzer: They did set up some pilot projects during the interim, didn’t they? That is the essence of whether this worked at all. Representative Weisz: Yes, there was a pilot program in Steele, Trail, and Stark some others. The pilot program had to do with Child Protection Services’ assessments. They are required now to have 95% of the assessments done in 62 days. The two areas that were pulled out to do the pilot program were getting 40% of their assessments done in the mandated 62 days. At the end of the pilot program 50% were being done in 25 days or less, and almost 80% were being done with the 62 days. Chairman Delzer: Was that the only thing they worked on in the pilot program? Representative Weisz: Yes it was; they took individual programs to come up with a method, and then rolled it out to see how it worked. There was dramatic improvement. They were doing more in 25 days than in 62 days before this. The goal as this goes forward… Chairman Delzer: They are certainly working with than just child protection services. Representative Weisz: Absolutely. Now with the CPS, they should be able to roll that one out statewide. Then, they will start more pilot programs, like subsidized adoption and foster care, to try to find out how we can make them efficient. If we are going to pay the bills, we are going to come up with a system is efficient, and the services should be done as good as


or better than in the past. We should save money in addition to providing better services. I think the results of the pilot program were astounding. Chairman Delzer: Did you question how long this is going to take before the whole system is rolled out to the zones? Representative Weisz: I didn’t ask that question, but I will tell you that as many programs are within this, it will take some time. There are so many different areas that need to be looked at individually. Chairman Delzer: In the meantime who is controlling them? Representative Weisz: In the meantime they will still be done the way they have always been done, until they can get to the next area and see how they can make improvements. 14:15 Chairman Delzer: Some of them have been a zone for a long time already. Representative Weisz: Some of them have consolidated, but these pilot programs are really looking at changing the whole way of doing business. It goes beyond what they were doing. 15:55 Representative Monson: Is there a finishing date that they have to be done, or are there incentives in place to get it done faster? How long could this go on? Representative Weisz: There is not any drop dead date. I don’t even know how we could determine that. When you consider the complexity of the whole social service system, that part of the reporting process will come back each biennium to let us know where they are at. It is not possible to set an exact date. The direction and the process is going the right way. 17:40 Representative Weisz: In the original language coming over from the Senate the host county State’s Attorney was to be the State’s Attorney for the zone board. (See attachment 1) Section 1 clarifies that the zone board can use the host county’s State’s Attorney, another State’s Attorney within that zone, or they could contract with any State’s Attorney in the state of North Dakota. It came up because some State’s Attorneys do not have expertise in this area. Skipping to Section 61, that defines the host county; employees are going to be employees of that host county. Chairman Delzer: Would the zone director be an employee of the host county? Does he have to be from the host county? Representative Weisz: No, the zone director can be from anywhere, but he will be an employee of the host county. Chairman Delzer: That was one of the problems. Shouldn’t the zone director answer directly to the state?


Representative Weisz: We did add language that gives the department veto power. When the zone goes to hire a zone director, the department can use that. The department also has a lot more control and oversight. Chairman Delzer: Section 62 deals with the deadlines, but it looks like you don’t approve the zones until January 2021? Representative Weisz: That is correct. The counties have to submit proposals by December 1st. The board of county commissioners has to submit the plan by June 2020, and then it goes into effect January 1st 2021. A lot of the bill has to do what happens during the transition from when the pilot project ends and when the new plan goes into effect. There was opposition to the dates. They wanted them strung further out. The committee decided this was enough time. 23:00 Representative Sanford: Will salaries will be consistent from zone to zone? Representative Weisz: Everyone will have the same pay for the same job from zone to zone. The only exception will be if someone gets a higher salary now, you can’t pay them a lower salary. Over time it will be the standardized across the state. There is language that says a county could not give someone a big raise now, so they would be locked in at that rate later. Representative Sanford: Will there be consistency to the training as well? Representative Weisz: That is correct. Chairman Delzer: In 72 and 73 did you take out elected officials, so that they don’t have to have a legislator sitting on the board? Representative Weisz: Yes, that language is out. The new language should reflect the population of the zone, except that every county will have at least one member on the board. Chairman Delzer: Could a legislature could be on the board? Representative Weisz: Yes. 27:15 Chairman Delzer: Section 130 is the formula, and we can read through that. We need to talk about 142, the takeover of personnel. Representative Weisz: Originally, there were 223 FTEs that would be moved from county to state if they felt the need. What we have now is 107 employees being transferred from county to state. Chairman Delzer: Are they transferring 107 people or 107 positions? Representative Weisz: They will transfer 107 positions, not necessarily 107 state positions. There cannot be more than 107 positions.


Representative Brandenburg: Are those people out in those counties given preference to where those jobs are? Representative Weisz: For the most part nothing would change for the employees other than they are now working for the state. Some of their duties may change. Chairman Delzer: This is to try to make things more efficient, and the only way to do that is hopefully to reduce personal. Representative Weisz: In the long term that will happen. We are no longer going to need 46 zone directors, but some of those may have opportunities to fill other positions. It is our job to deliver the services the best that we can, and more efficiently than they have been doing. Chairman Delzer: We are paying all the cost of these employees already, so there should not be a change in FTEs. Are all of these employees part of PERS already, or will there be some changes on that side? Representative Weisz: I don’t believe that every county is on PERS, but the county paid their retirement, so the dollars should be about the same. Representative Holman: What was the process of finding that 107 number? Representative Weisz: I don’t know exactly, but they looked it at based on pilot programs to be instituted, and the needs they would have. There is also flexibility with 33 FTEs if they find that there is a need somewhere. It would not mandate 107. 33:30 Chairman Delzer: Let’s walk through the revised fiscal note, page 4 of attachment #1. Representative Weisz: Review of the revised fiscal note.

The program costs were reduced by $2 million from the original bill.

The indirect cost obligation didn’t change, but it will be dropped at the end of this next biennium. (sunsetted)

The Compensation Equity Adjustments came to the House with $3.4 million. That was to try to reach all the lower-paid counties that were below the .95% and bring the salaries up to .95%. This adjustment would bring them up to .85% in this biennium. This will start to equalize the pay across the board.

Family First Legislation is a federal program I which they want the people to end up with the families if possible. Originally, there was $7.5 million to try to implement that program to make sure that kids stay within the family if possible. That was looked at, and it was decided that $2.8 million would be enough for this biennium.

The original bill had $1.3 million in Contingency & Pilot implementation, and it was dropped to $820,894.

The adjusted fiscal note shaves off $10 million from what the Senate sent over. Representative J. Nelson: One problem we have had in the past two years with the pilot program was using the 2015 base in relationship with today’s cost. The $2 million that is


underfunded in the 2018 actuals, and the 2019 projections, are you comfortable that they will allow the counties to live within the constraints of this budget? Representative Weisz: They shouldn’t have to worry because these payments are going to shift depending on the needs of each zone. There will be a lot more flexibility. Yes, I do think they are going to be able to work within this budget. I think there is a lot of room for efficiencies with increased service. Representative J. Nelson: What if there is a county that is a high use county, and another group of three counties (zone) take on that high use county. Do you see any danger for that zone by accepting that county? 41:25 Representative Weisz: No, because it is based on the needs within that zone. If taking that orphan county into a zone doubles the case load, it will double the funding they are going to get. I think it would be an advantage to that zone. I don’t see a downside; from an employment standpoint it would be an advantage. The flexibility is there to shift the dollars. Chairman Delzer: How does this work with FACES, the new eligibility program? Representative Weisz: That’s part of what we are trying to bring into play. We are no longer bound by county lines, so there might be someone in one area that is doing all the paperwork for intake assessments. They don’t necessarily need to be in that location. We are no longer bound by county lines or by location for many things, except the face to face visits. Representative Vigesaa: Is there any ability for a zone to levy any type of tax for human service’s needs? Representative Weisz: There is no provision for a zone to levy taxes. I would have to argue that there is nothing to stop a county from starting some new…. they could add something out of their general fund. Chairman Delzer: I don’t believe there is any possibility that they could raise a separate tax and call it that. Representative Vigesaa: I had a county inquire that there might be the ability to back fill with another levy of some sort. Representative Weisz: The only way they could back fill would be through their general levy.


Appropriations Committee Roughrider Room, State Capitol

SB 2124 4/3/2019

34494

☐ Subcommittee


Committee Clerk: Risa Bergquist


Relating to creation of human service zones; relating to administration of county social service boards, the county human services fund, and caseload standards

Minutes:

Chairman Delzer: Called the meeting to order for SB 2124, this is the social service take over. It was a pilot project last time, going to be a full project this time going forward. We went through it, one thing it doesn’t require any kind of change in the bill, but we will have to do, because of the inflator package we put out, we will have to adjust the OMB and the DHS budgets with the transfer from the tax relief bucket to social service take over fund. Representative Boe: I have some concerns about the districts and they say that if somebody doesn’t except you into their district they’re going to force you into it. Chairman Delzer: If the state is going to take this over then the state has to be in charge of what happens and it isn’t always going to be happy. Representative Brandenburg: Last session and this session, half the district wants it and half doesn’t, no matter how you vote half is going to be mad. Chairman Delzer: Anything we do this major is going to have some condensations with it. Representative J. Nelson: The reason there was issue with the pilot was because there was an effort to spend down the reserve accounts in the counties. Anytime you have a statewide request like that there is some people that get squeezed in there. The opposition came from those counties that weren’t made whole in the pilot. They used 2015 spending in 2018 and that doesn’t work. The efficiencies that this will cause when everybody get going should provide complete service without that local spend. I have heard of two situations, one where geographically is one option and but I think there is also a movement about three reservations becoming their own district and I would hope we don’t let that happen. Chairman Delzer: I think there is something in here that has to be continuous, so you couldn’t do the three reservations.

House Appropriations Committee SB 2124 April 3rd 2019 Page 2

Representative J. Nelson: I think this is a good bill, we will have provided better services to a bigger group. Chairman Delzer: We pretty much made our choice to go down this road last time when this was passed. One thing we have to be aware of is we are going to have to continue to scrutinize this as it goes forward. Representative Weisz said they did a lot of work in a few areas and they are moving this out but not all at once so there is going to be some changes that happen, corrections or additions that’ll happen in the future. Representative Beadle: We were given some amendments by Representative Weisz, had we acted on those yet? Chairman Delzer: That’s what they already did, I think he wanted to work with a couple of other things but would do it in conference committee. Representative Monson: Make a motion for a Do Pass Representative Vigesaa: Second Chairman Delzer: Any further discussion on the motion for a do pass? Seeing none we will call the roll. A Roll Call vote was taken. Yea: 18 Nay: 2 Absent: 1 Representative Weisz will carry the bill. Chairman Delzer: With that we will close this meeting.

Date: 4/3/20 1 9 Rol l Ca l l Vote #: 1

House Appropriations


BILL/RESOLUTION NO. SB 2124

D Subcommittee

Amendment LC# or Description :

Recommendation : D Adopt Amendment

Committee

0 Do Pass D Do Not Pass D Without Committee Recommendation

Other Actions:

D As Amended D Place on Consent Calendar D Reconsider

D Rerefer to Appropriations

D

Motion Made By _R_e�p_r_es_e_n_ta_t_iv_e_M_o_n_s_o_n ___ Seconded By ___ R_e�p_re_s_e_n_t_a_t_iv_e_V�ig�e_s_a_a_

Representatives Yes No Representatives Yes No Cha i rman Delze r X Representative Kem pen ich A Rep resentative Anderson X Representative Schob inger X Rep resentative Bead le X Representative Vigesaa X Representative Be l lew X Representative B randenbu rg X Representative H owe X Representative Boe X Representative Kre idt X Representative Ho lman X

Representative Mart inson X Representative Mock X Representative Meier X

Representative M onson X Representative N athe X Representative J . Nelson X

Representative Sanford X Representative Schatz X Rep resentative Schm idt X

Total (Yes) 18 No 2 ----------- ---------------Absent 1 ------------------------------Floor Assignment Representative Weisz

Motion Carries

Com Stand ing Committee Report April 3 , 201 9 5 : 1 1 P M

Module ID : h_stcomrep_59_007 Carrier: Weisz

REPORT OF STAN DING COMMITTEE SB 21 24, as engrossed and amended : Appropriations Committee (Rep. Delzer,

Cha i rman ) recommends DO PASS ( 1 8 YEAS , 2 NAYS, 1 ABSENT AND NOT VOTI NG) . Eng rossed SB 2 1 24 , as amended , was placed on the Fou rteenth order on the calendar.


2019 TESTIMONY

SB 2124

4/=I S .B . 2 1 24 : Department of H uman Services Testimony Jan 1 4 , 20 1 9

Agenda

• Overview of Socia l (Human) Services i n North Dakota

• 20 1 7 S . B . 2206 Study Context and Resu lts

• Key Components of Pol icy

• Deta i l for F isca l Note ::::-=::=:�=.:::::::=::==========

• Sect ion by Section Review of B i l l

S . B . 2 1 24 : OHS Testimony - Execut ive Summary Overview of Social (human) services in North Dakota: • The mission of OHS is to provide quality, efficient, and effective human services that improve the lives of people • To improve lives, OHS enables access to social determinants of health when community resources are insufficient • Social services is an essential link to connect citizens with a range of programs across social determinants of health

c:;� Z 1 2 L..j '-/lc..t/J q

.:¢ 1 p3. ;).

• To better encompass the role of "social services" in connecting people to social determinants of health, we have proposed shifting to the term "human services" in S. B. 2 1 24

2017 S.B. 2206 Study Context and Results: • Since the 1 990s, social (human) services costs have been absorbed by the state incrementally • In 201 7- 1 9, the state took over funding of social services in the 201 7 S. B . 2206 pilot, keeping overall organizational structure intact • Payment during 201 7- 1 9, then, has been driven by caseload amounts across each of the programs at the county level; for reference,

these overall caseloads are shown (see charts) • The 201 7-20 1 9 legislative session in 201 7 S. B . 2206 also created an interim study to analyze pilot and develop implementation plan • From the outset of the study, there has been recognition that ND does not have comparable scale to states that have state-supervised,

county-administered programs • Studies of SNAP administrative costs indicate that the county-administered model is correlated with higher costs • But improving programs is more than looking at structure : process and cultural change must accompany structural change • To examine holistic change, the 201 7 S. B. 2206 interim study included 4 committees focused on each area of social (human) services • Each committee submitted recommendations • These recommendations highlighted a number of drivers of program improvements, though barriers exist with old structure • To address process/cultural barriers, OHS and counties have improved programs through Theory of Constraint (TOC) method • The fi rst TOC pilot project - on CPS assessments - has shown early progress in participating counties • Going forward, the department will continue using the TOC method to bring continuous improvement to process/culture • However, entering a state of continuous improvement hinges crucially on the structural changes included in S. B . 2 1 24 Key Components of Policy : • As we have examined structure, process, and culture, guiding principles emerged as fixed points for policy • Today's model of delivering social (human) services can be disjointed and inefficient, resulting in worse outcomes for clients • S . B . 2 1 24 would shift delivery of social (human) serv ices from counties to zones, a hybrid state/county structure • Key Aspects of S. B. 2 1 24 :

- The transit ion to zones is a county-led process with guiding principles for zone creation and approval Human service zone di rectors are state employees responsible for management of staff, budgeting, operations & outcomes

- The zone board is composed of representatives from each county in zone and responsible for oversight of operations - The increased flexibil ity of zone funding is meant to increase responsiveness to community needs and enable innovation - FTE transfer authority is for functions where the state can gain consistency or efficiency from specialization of work

Detail for Fiscal Note: The f iscal note associated with S. B . 2 1 24 of $ 1 82 .3m will support transition to the new model of human service zones Section by Section Review of Bill 2

S .B . 2 1 24 : Department of H u man Services Testimony Jan 1 4 , 20 1 9

Agenda

• Overview of Soc ia l (Human) Services in North Dakota



• Deta i l for F iscal Note


5 e, 2,12,y ,f , � A�

4:};I t?J . 3

3

5� c9 Q Y \ /ltil l �

�� - t-( The m iss ion of OHS is to p rov ide q ua l ity, effic ient , and effect ive h u man serv ices , wh ich improve the l ives of peop le

Mission Princip les

• Services and care shou ld be provided as c lose to home as poss i ble to - Maxim ize each person 's i ndependence and autonomy - Preserve the d i gn ity of a l l i nd iv idua ls - Respect constitut iona l and civi l r ig hts

• Serv ices shou ld be provided cons istently across service areas to promote equ ity of access and cit izen-focus of del ivery

• Services shou ld be adm in i stered to optim ize for a g iven cost the number served at a serv ice level a l igned to need

• I nvestments and fund ing i n OHS shou ld maxim ize ROI for the most vu l nerable th rough safety net serv ices, not support economic development goals

• Cost-effectiveness shou ld be considered ho l i st ical ly, acknowledg ing potentia l u n i ntended conseq uences and a l ignment between state and federa l pr iorit ies

• Services shou ld he l p vu l nerab le North Dakotans of a l l ages mai nta i n or enhance qua l ity of l ife by

- Support ing access to the socia l determ i nants of hea lth : economic stab i l ity, hous i ng , educat ion , food , commun ity, and hea lth care

- M itigating th reats to qua l ity of l ife such as lack of fi nanc ia l resou rces, emot iona l crises , d isabl i ng cond it ions , or i nab i l ity to protect oneself

4

56 2'124 y1'1/tt1

4/> t -,:; .?"' To improve l ives , OHS enab les access to socia l determ inants of hea lth when commu n ity resou rces are i nsufficient

Safety net Community resources • Early intervention • Social determinants • Prevention of health

• Soc ia l determ i nants of health are a l l necessary and m utua l ly re i nforc ing i n secu ri ng the wel l bei ng of an i nd iv idua l or fam i ly : they are on ly as strong as the weakest l i n k

• Com m u n ity resources shape and enab le access to the soc ia l determ inants (e . g . , schools p rovide access to educat ion , employment provides access to economic stab i l ity)

• I nvesti ng i n commun ity resou rces can i n many cases prevent ind ividua ls from need ing to access DHS safety net services to obta in the socia l determ i nants of hea lth

5

I

5 f; '2,\l �

'-ftt:f/;q Socia l services is an essentia l l i n k to connect cit izens with a -tf-l 17 · w range of p rog rams across socia l determ i nants of hea lth

---------------- , Admin istrator1 PAYOR (state2) Provider D Partner

Social Determinant Components

Social Services / Eligibility

: Medical, DD & 1 Long-term care

Behavioral Health Policy & Services1 --------- Agency Partners (not

exhaustive)

Economic Stabi l i ty

Educat ion

Food

Ne ighborhood & Bu i lt

Environment

Socia l & Com mun ity

Context

Health & Healthcare

• • • • • • • • • •

• • • •

• • •

• • • •

E mployment I ncome Expenses Debt Early Ch i ldhood Literacy/language Vocat ional H ig her Ed

Hunger Access to healthy opt ions

Hous ing Transportation Safety Parks

I nteg ration Support I n cl us ion

Coverage Providers Qual ity of care Cu ltural competen cj

TANF, LI H EAP, Ch i l d Support,

Vocat ion a l Rehab, Ch i l d ca re ass ist .

L Ch i ld ca re l icens i ng J

l SNAP/ Food

sta m ps

CPS, Foste r ca re, FOSTER CARE

L ( IV-e) _J I n-home supports

Med ica id E l ig i b i l ity

Nutr i t ion Services

NURSING FACI LITIES, ICFs

I

7 : r DD, HOME & I COMMUNITY I

I

I BASED SERVICES k:ASE MANAGEMENT

TRADITIONAL, WAIVERS,

VOUCHERS, CH I P, • • •

EXTENDED SERVICES for

those with SM I

RECOVERY SUPPORT SERVICES

( i nc l ud i ng Free Th ro ugh

Recove ry, PATH for those

exper ie nc i ng home lessness,

a nd other progra ms)

SBIRT, Parent's LEAD, STATE

HOSPITAL, LSTC, HSCs3

l (I) 0 -� (I)

Cl) .0 0

-,

0 .0 ro ....J C

0 :.:; 0 :::::, .... ..c - -en ro C (I) o I

.0 0 :::::, .0 a.. :::::,

a.. ro 0 0

....J --..c -ro (I)

(I) 0 en :.:;

C en 0 :::::, u -, �

(I) C '- C en o (I) :::::, 0 > 0 :::::, I -,

• Th i s i s fo r i l l u st rat ive p u rposes o n ly to ca ptu re m ajo r ity of p rogra m s/se rv ices/ ent i t ies a n d the co n n ect i on s t hey p rovi d e to soc i a l d ete rm i n a nts of hea l th ; it i s n ot exh a u st ive of a l l p rogra m s a n d services or con n ect ions

• Wh i l e oth e r u b l i c e nt i t ies a n d r ivate sta keho l d e rs a l so h ave a n i m o rtant ro l e the a re exc l u d ed from th i s i ct u re 1 Admin istrative ro le also includes the function of l icens ing professionals 2 Those programs for wh ich the state pays a large share 3 SB IRT = Screen ing Brief I ntervention & Referra l to Treatment , LSTC = Life sk i l ls & transit ion center, HSCs = Human Service Centers 6

D °6 f-1Zt.{ '-/ l '-1/tct

.#1 � . 7 To bette r encompass the ro le of "socia l serv ices" i n connecti ng peop le to socia l determ inants of hea lth , we have proposed sh ift i ng to the term "h u man serv ices" i n S . B . 2 1 24

From : O ld Term i nology

Socia l Services (no defin ition )

To: New Term inology

Human Services = + A service or ass ista nce prov ided to a n i nd iv id u a l o r a n i nd iv id u a l ' s fa m i ly i n need of se rvices or ass i sta nce, i nc l u d i ng ch i l d we lfa re se rvices, econom ic ass i sta nce progra ms, med ica l serv ice progra ms, a nd ag ing se rvice progra ms, to ass ist the i nd iv id u a l or the i nd iv id u a l ' s fa m i ly i n ach ievi ng and ma i nta i n i ng bas ic se lf-suffic iency, i n c l u d i ng phys ica l hea lth, menta l hea lth, ed ucat ion, we lfa re, food a nd n utr i t ion, a nd hous ing .

+ A se rvice or ass i sta nce provided, adm i n i ste red, o r supervised by the depa rtment of human se rvices i n accorda nce with cha pte r 50-06

+ Licens ing d ut ies as adm i n iste red or supervised by the depa rtment of h uman se rvices or de legated by the depa rtment of human se rvices to a human se rvice zone

7

S8 Z \2Lf

\/ J L{/ J q S. B . 2 1 24 : Department of Human Services Testimony -# 1 ps . t Jan 1 4 , 20 1 9

Agenda

• Overv iew of Socia l (Human) Serv ices i n North Dakota

• 201 7 S .B . 2206 Study Context and Resu lts


• Deta i l for F isca l Note

• Sect ion by Sect ion Review of B i l l

8

S ince the 1 990s , socia l (h uman ) serv ices costs have been absorbed by the state i ncrementa l ly

Timel i ne

Early 1 990's : Socia l serv ice de l ivery was one of largest s ing le items i n many county budgets , and one that was g rowi ng much faster than property va l ues . So count ies worked for leg is lat ion to sh ift that burden to statewide col lected taxes .

1 997 : Counties were re l ieved of the loca l share of Med ica id payments to hospita ls , doctors , and nu rs ing homes , an area over wh ich count ies had no authority to approve , set rates , or change .

2007 : The costs and emp loyees of reg iona l ch i l d support enforcement offices were sh ifted to the State .

201 5 : The county share of foster care mai ntenance payments was sh ifted to the state .

-> As a resu lt of these transitions , property tax payers were left with about $80 m i l l ion per year in staff costs with g reat variation , as some taxpayers were payi ng 8 m i l ls , others over 45 m i l ls

Source : North Dakota Association of Counties, SB 2206 Report to Leg is lative Management 9

5e z ,2c.; 1. /1 11/t1

# 1 fJ,/0 I n 20 1 7- 1 9 , the state took over fu nd i ng of socia l serv ices i n the 20 1 7 S . B . 2206 p i lot , keep ing overa l l o rgan izat iona l structu re i ntact

Subject

Fund Balances

Details

NDCC§53-34-04(4) Total Calendar Year Formula Payment =

[Social Services (SS) Rate per case x SS Most Recently Available Calendar Year Case Month Data] +

[Economic Ass istance (EA) Rate per case x EA Most Recently Available Calendar Year Case Month Data)]

NDCC§ 53-34-03(2) January 10th Payment = Total Calendar Year Formula Payment x 50%

NDCC§ 53-34-03(3-4) June 15th Payment =

(Totally Calendar Year Formula Payment x 50%) - 1st Payment +/- True Up or True Down - Amount Exceed ing Fund Balance

NDCC§ 53-34-04(1) 2015 Net Expend itures = 2015 Gross Expend itures + 25% of Three-Year Average Eligible Federally Allowable Ind irect Costs - 2015 Services Reimbursed by Med ical Assistance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · NDCC§ 53-34-04(2-3) Rate per case = 2015 Net Expend itures / 2015 Case Month Data

NDCC§ 53-34-03(3) (a) Recalculated Formula Payment =

Rate per case x Most Recently Available Calendar Year Case Month Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NDCC§ 53-34-03(3) (b-d)) True Up/Down = If recalculated Formula is above or below 105% or 95% respectively of the Total Formula payment the county will receive or be reduced by the d ifference that is more or less than 105% or 95% respectively

NDCC§ 53-34-06 Fund balance (Effective January 1, 2019): NDCC§ 53-34-05 Counties with $2,000K expend itures may not exceed a fund balance of $500k NDCC§ 53-34-05 Counties with less than $2,000k expend itures may not exceed a fund balance of $100k

• Benefits of p i lot formu la : sh ifted fund i ng to the state under a more cons istent re imbursement methodology, with some flex ib i l ity to adj ust for workload changes as measured by caseload

• Downsides to p i lot formu la : caseload changes are on ly d river, locks i n h istorica l costs , locks i n basket of services paid for in EA or SS rates , locks in current service levels even if variation ·

1 0

Payment d u ri ng 20 1 7- 1 9 , then , has been d riven by case load amounts across each of the prog rams at the cou nty leve l ; for refe rence , these overa l l case loads a re shown ( 1 /2 )

Com ponents of Econom ic Ass istance Form u la Caseload

35,000

30,000

25,000

20.000

15,000

10.000

5,000

0

CY 2012

Temporary Assistance for Needy Families Paid Cases

CY 2013 CY 2014 CY 2015 CY 2016 Each paid Ci5e is counted once per month.

Supplemental Nutrition Assistance Program Paid Cases

CY 2017

350.000 ��=�------------------------300,000

250,000

200,000

150,000

100,000

SO.ODO

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 Each paid ca�e 6 counted once per month.

Low Income Heating Assistance Program Unduplicated Caseload by Heating Season

CY 2017

16,000 ---------------------------

14,000

12.000

10.000

8,000

6,000

4,000

2,000

13,780

o +-�-�--�---�-CY 2012 CY 2013 CY 2014

Each case is counted once per heating season. CY 2015 CY 2016 CY 2017

Child Care Assistance Paid Cases SO.ODO

45,000

40,000

35,000

30,000

25,000

20.000

15,000

10.000

5,000

0

CY 2012 CY 2013

Each paid � is counted once per month.

1,000,000 + 800,000

600,000

400,000

200,000

CY 2012 CY 2013

CY 2014 CY 2015 CY 2016

Medical Eligibles

CY 2014 CY 2015 CY 2016 Each eligible is counted once per month. Include CHIPS and no sped and e•sped in 2016.

Foster Care Number of Children (Eligibility)

18,000

16,000 14,719 15,3!!j;

14,122 14,000 +----

12,000

10.000

8,000

6,000

4,000

2,000

11.740

0 +----�'-��-��-��--- �----'-� CY 2012 CY 2013 CY 2014 CY 2015

bch child is counted once pN month(b.uedon the 1st of each month).

CY 2016

CY 2017

CY 2017

16,029

CY 2017

5'& 2 1 2'-/

\/ ri..f /21 #/ f/J· L l

1 1

")� 2124 \ /! Y/l'f

:# I f.y - 1 2

Payment d u ri ng 20 1 7- 1 9 , then , has been d riven by case load amounts across each of the prog rams at the cou nty leve l ; for reference , these overa l l case loads a re shown (2/2 )

Com ponents of Socia l Services Form u la Caseload

Foster Care Number of Children

1&000 u;,ooo 14,122 14,719 14.000 1:Z.000

11,740

10.000 e.ooo 6,000 4,000 2,000

0 CY 2012 CY 2013 CY 2014 CY 2015

E.ach child is counted once per month (basedon the 1st of each month).

Subsidized Adoption Cases 1,600

1.400 t-1._

1

_90 ___

1.-20_

1_-----;1-a,z

cc46

;--n 1,.-- "t;l',1---:1::36:::1;-

1,200

1.000

800

600

400

200

0 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Each paid case is counted once per month

3,000

2,000

1,000

Child Abuse & Neglect Assessment/Referral Reports

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Sased on monthly child J)(otectiw- service reports. Counties do not rKeive reimbursement for assessment and ref1etral cases.

Family Preservation Families 14.000

1:Z.000 11,600

10.000

8.000

6.000

4.000

2.000

0 CY 2016 CY 2017 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Family may be counted more than once during a !liven service month if wfVice-s were received multiple times a month or received servke in multii>'e countia.

Licensed Foster Care Providers 700

603

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Each licensed foster c.are provider is counted when the license 1s issued and nmewed. (PATH Homes ore not lkensed by the counties and thffefore are not includ«I in chart).

5,000

Child Abuse & Neglect Full Assessment cases

4,500 +-----------.-�-�---4.000 +-'"'-"'-----'· 3,500 L__J�L__J 3.000 2.500 2.000 1,500 1,000

0 +--.._-'---�-'-"'-�-'--'-�-'-..... �-'--'�--"---'L_ CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Based on monthty child protective service r�rts paid.

Licensed Child Care Providers

-�19=4�1-18�14-

lS.000

10.000

5,000

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Each child aire provider is counted once per month.

Child Abuse & Neglect Terminated In Progress/Pregnant Women Cases

3,500 �--------- �3,=4�--3,-054--�3.�11�1� 3,000

2,500

2,000

1,500

1.000

500

2,302 2;150-- -

2,646

0 +--.... ...__� ...... ..__�----�----� .... .._�_._..._, CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Bast'd on monthly child protective service reports paid.

1 2

•

The 20 1 7-20 1 9 leg is lat ive sess ion i n 20 1 7 S . B . 2206 a lso created an i nterim study to ana lyze p i lot and deve lop imp lementation p lan

2017 S. B . 2206 Sect ion 8

Before November 1 , 20 1 8 , the department of human services sha l l report to the leg is lat ive management on the status of the p i lot prog ram and the deve lopment of a p lan for permanent imp lementat ion of the formu la estab l ished i n sect ion 50-34-04 . The imp lementation p lan must i ncl ude

• recommendations for caseloads and outcomes for socia l services , des ignated ch i ld welfare serv ices , and economic ass istance ;

• cons iderations regard ing the de l ivery of county socia l serv ices to ensure appropriate and adequate leve ls of serv ice conti n ue ;

• options for effic iencies and agg regation ; • ana lys is of the potent ia l reduction i n socia l serv ice offices , organ izations , and staff

due to conso l idations ; • the feas i b i l ity and des i rab i l i ty of, and potent ia l t imel i ne for, trans it ion ing county

socia l serv ice staff to the department of h uman serv ices ; • and cons iderations for overs ight and cha i n of command with i n socia l services and

h u man serv ices .

The imp lementation p lan must be subm itted to the s ixty-sixth leg is lative assembly as part of the department of human serv ices budget request and identify the estimated b ienn ia l cost of the p lan .

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From the outset of the study, there has been recog n it ion that _:l=l=1 PJ . IL{

N D does not have comparab le sca le to states that have statesuperv ised , cou nty-adm i n istered prog rams

Chi ld Welfare Del ivery System (as part of Socia l Services) : Organ ization by State States ranked by popu lation , shown here in thousands (k)

<D 0) N

oi CV)

• Hybrid responsib i l it ies • County-adm in istered • State-adm in istered

The other 8 states (other than North Dakota ) with a state-su pervised , county-adm i n istered socia l services system are a l l i n the top 50% of states by s ize of popu lat ion

Sou rce : U S Census Bureau, Ch i ldwelfare .gov (Chi ld Welfare Information Gateway) 1 4

Stud ies of SNAP adm i n istrative costs i nd icate that a cou ntyadm i n istered mode l is corre lated with h ig her costs

Cost-per-Case by Model FY14 $ per case per m o nth

County-adm in i stered

State-adm in i stered

Cost-per-Case for County-admin States FY14 $ USD per case per m o nth

Cal iforn ia

New Jersey

North Dakota

Minnesota

New York

Vi rg i n i a

Colorado

Wisconsi n

North Caro l i na Oh io

• The cost per SNAP case is about 2 times h igher i n states with county-adm i n istered programs • Among state with cou nty-adm i n istered program, N D has one of h ighest costs per case for

SNAP at about $25 per case per month • Us ing SNAP as an i nd icator, these fi nd i ngs suggest an opportun ity for i ncreas ing overa l l

effic iency of adm i n istering programs i n ND , part icu la rly around e l ig i b i l ity programs

Source: USDA Food and Nutrit ion Services, Office o f the Inspector General aud it report o n SNAP admin istrative costs

34

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::#: ( ?:J . 1 {f But improvi ng prog rams is more than looki ng at structu re : p rocess and cu ltu ra l change must accompany structu ra l change

3 Key Levers for Change

• 3 Core Areas

- Process

- Structu re

- Cu ltu re

• Focus is on serv ice del ivery to the cl ient i n the most effect ive and effic ient way poss ib le

• Seek to remove geog raph ic , po l it ica l and cu ltu ra l boundaries to de l iver smart , effic ient and compass ionate human serv ices

• Primary Stakeho lders

- I nd ivid ua ls & Fam i l ies

- Taxpayers

- Employees

1 6

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To exam ine ho l ist ic change , the 20 1 7 S . B . 2206 i nterim study i nc l uded 4 comm ittees focused on each area of serv ices

-:tJ:: I � . 11

Committee Organ ization

•

• P i lot study kicked off on Oct. 1 2 , 20 1 7 • Each committee met about a dozen

t imes (month ly) between Oct. 20 1 7 and Sept. 20 1 8

(Adm in = Adm in istrative ; CFS = Ch i ld & Fam i ly Services ; Ad u lts i nc ludes o lder adu lts and persons with d isab i l it ies ; EA = Economic Ass istance)

Source : SB 2206 Report to Leg islative Management

Committee Participants

Chri s Jones Sara Stolt Jason Matthews Ter Tra nor Lukas Gemar Am Erickson Steve Reiser J oe Morr issette K im Jacobson Lau ra l Sehn Marc ie Wuitsch ick Tom So lber Heid i Delorme Jonathan A lm K im Osadchuck M ichel le Masset Rhonda Al ler Tom Eide Ch i Ammerman Mar l s Baker Denn i s Meier Em Burkett Kar in Stave Peter Tunseth Diana Weber Kelse Bless Amanda Car lson Mon ica Goesen Vince G i l lette Brenda Peterson S idne Schock LuEl len Hart M ichel le Gee L inda B rew

Diane Mortenson Dou We h J o ce Johnson Kristen Hasbar en Nanc N i kolas-Maier Karla Kalanek Heather Steffi

Or an ization/Title N D OHS, executive d irector The Project Co. JM Strategies ND Association of Counties (NDACo), d i rector OHS Administration OHS Human Resources (HR), admin istrator Dakota Central Social Services, d i rector Office of Management and Budget, d irector Trai l l and Steele County Social Services, d i rector OHS Fiscal , accountant OHS HR, d irector OHS, deputy d i rector OHS Fiscal , deputy d irector OHS Legal , d irector Burleigh County Social Services, d i rector Emmons County Social Services, d irector Lake Region Socia l Services, d i rector OHS, ch ief financial officer Cass County Social Services, d irector OHS Chi ldren and Family Services (CFS), CPS Morton County Social Services, d i rector Stutsman County Social Services, d irector OHS CFS, reg ional representative UNO CFS Train ing Center, d irector OHS CFS, in-home program admin istrator OHS CFS, permanency program admin istrator OHS CFS, early childhood services OHS CFS, reg ional representative Sioux County Social Services, d i rector Morton County Social Services, el igibi l ity manager Cass County Social Services, el igibi l ity manager Grand Forks County Social Services OHS Economic Assistance , d irector OHS Economic Assistance, reg ional representative and system support and development d i rector Stark County Social Services, d i rector Hettinger County Social Services, d i rector OHS Economic Assistance , Medicaid policy d i rector Richland County Social Services, d i rector OHS Aging Services, d irector OHS DD, program admin istrator OHS, public information officer

Com m ittee I Role All Faci l itator and project manager Facil itator All All Admin istrative Committee Admin istrative Committee Admin istrative Committee Administrative Committee Administrative Committee Administrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Administrative Committee Admin istrative Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ld ren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Chi ldren and Family Services Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee

Adult Services Committee Adu lt Services Committee Adult Services Committee Adult Services Committee Adult Services Committee Adult Services Committee Adult Services Committee

1 7

5·6 2 12'-f !/14/! 1

2 . Recommendat ions from Ch i ld & Fam i ly Serv ices Commitfek0' - J & Recommendation

a) Move sub-adopt negotiations to reg ion or state

b) Sh ift foster care l icensing to one entity per reg ion

c) Reg iona l ize foster care placement-intake/ca l l center

d) Reduce the CPS assessment from 62 days to 25 days e) Ma inta i n local access for providers , wh i le e l im inating red undancy/mult iple levels of rev iew of l icensin decisions f) Develop a navigator ro le to partner w ith CFS/Ch i ld Protection Services CPS

g ) Establ ish a statewide foster care recruitment strategy

h) Reg ional ize foster care l icensing

· ) Expand Alternative Response be ond current tar et o u lation

Benefits + Notes • Provide cons istent service del ivery across a l l counties by hav ing a few identified experts who wi l l

focus sole ly on sub-adopt

• Reg ional ize expertise by having an experienced county take the lead on foster care l icens ing i n each service del ivery reg ion

• Al lows cou nties to share l icensed foster homes across cou nty l ines, so that placements match a chi ld 's needs and a provider's preferences, experience and ab i l it ies

• Provide upfront t imely services to fami l ies • Provide faster resolut ion wh i le keeping ch i ldren safe

• S impl ify the l icens ing process • Create standard work practices • I ncrease abi l ity to share l icensing resources across county l i nes • Help address social determinants of health with the fami ly • Connect regu larly with fami l ies • Reduce the caseload for CPS case managers by provid ing early support and in tervention • Replaces fragmented and d i lu ted fund ing to reg ional foster care coal it ions with a statewide

recru itment strategy and tools • Provides consistent recru itment messages and outreach materia l statewide • Contract with marketing agency to develop the strategy/message • Provide consistent and t imely l icens ing by us ing ded icated expert staff for l icens ing of foster homes • I ncrease effic iency due to staff focus and expertise

Provide front-end prevention Has a parent-aide checking on h igh-risk (to be defined ) parents after b irth of a chi ld for up to (TBD) years Generate cost savings over t ime by i ncreasing fami ly connections, parent ing sk i l ls and u nderstand ing of ch i ld development and reducing r isk of abuse and neg lect Appl ies a consistent evidence-based model Divert at-risk popu lation from foster care I s primary prevention - offered to every fami ly that has a baby

• Provides needed services to fami l ies without fi l i ng a formal CPS report

1 8

3 . Recommendations from Adu lt Services Comm ittee Areas of Focus

Source : SB 2206 Report to Leg islative Management

Notes and Recommendations

Special ization is a necessity to ensure q ua l ity del ivery of services Current system expects every professional to know a l i ttle bit about everyth ing , which is overwhelming and may resu lt i n m is information or misunderstand ings

Recommendations : I f possib le , designate staff to on ly work i n one program . At a m in imum, requ i re special ization and expertise i n a key area Establ ish annual proficiency standards (benchmarks) for each worker to meet

Notes: People are unaware of ava i lable services and the Ag ing and Disabi l ity Resource L INK (ADRL) on l ine and telephone information and assistance resources

Recommendation : Expand the ADRL's capacity to provide i nformation about commun ity-based services and supports for people with d isabi l it ies across the l ifespan to better connect people to needed services and supports

Notes : Cl ients are overwhelmed with having to fi l l out mu lt ip le forms Chal lenges are further compounded by a lack of commun ication among various entities and prog rams Currently, intake is not a centra l ized system; the goa l shou ld be to ut i l ize whatever h idden capacities exist with in the system to improve efficiencies

Recommendation : El im inate mu lt iple assessments. Develop an easy-to-access u n iversal intake process us ing a u n iversal set of questions to screen appl icants and determine e l ig ib i l ity for long-term supports services for adu lts. This wi l l g reatly benefit cl ients and create g reater efficiency.

SPECIAL NOTATION : As this wi l l be a s ign ificant change, the Adu lt Services Committee has agreed to continue work ing as a g roup to identify further efficiencies/improvements and create and implement a new intake and assessment system .

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4 . Recommendat ions from Economic Ass istance Com m itt;� P:, . ..:io

Recommendation

a) E l iminate the work e l ig ib i l ity workers do that isn 't part of e l ig ib i l ity determination

I

b) Reg ional ize e l ig ib i l ity determination for Medicaid coverage of foster ch i ldren , Temporary Assistance for Needy Fami l ies , Medicaid long term care , Chi ld Care Assistance and Bas ic Care Ass istance

c) Develop the Ful l Kit for process ing program appl ications and determ in ing e l ig ib i l ity

d) Central c l ient ca l l center

e) Centra l ize tra in ing for EA prog ram e l ig ib i l ity determination

f) Policy development

g) Outsou rce Low Income Home Energy Ass istance Pro ram L IHEAP h) Bu i ld a robust set of interfaces to al low e l ig ib i l ity workers access to more information to more effic iently and effectively process cl ient a l ications

Source : SB 2206 Report to Leg is lative Management

Benefits + Notes Gives e l ig ib i l ity workers more time for processing appl ications and provid ing case management

Examples of work not related to e l ig ib i l ity: Fraud investigations

• Estate col lections Th i rd Party L iabi l ity Health Tracks Referra l Pr imary Care Physician assignment Creates special ized teams across reg ions who regu larly work with and process these complex cases Improves the qual ity of e l ig ib i l ity determ inations

• Workers have the information they need to accurately determ ine e l ig ib i l ity o Identify the necessary items to beg in starting an e l ig ib i l ity appl ication o Provide the Fu l l Kit checkl ist for a l l programs

• Provides one n umber for cl ients to cal l across the state to ask q uestions, get an update on their appl ications, change addresses, etc.

• Creates a designated team of cal l center experts • Assu res un iversal access regard less of location to a l l EA cl ient information • Bu i lds a triage process • Develops tra in ing cu rricu lum and offers consistent ongoing tra in ing to e l ig ib i l ity workers

statewide • Establ ishes a tra in ing team connecting tra iners with pol icy and prog ram admin istrators

to assure consistent development and del ivery of tra in ing

• I nclude frontl ine e l ig ib i l ity workers in the pol icy development and tra in ing cu rricu lum process

Create program work g roups that include el ig ib i l ity workers to improve programs • Connects LI H EAP with organ izations fami l iar with the program

Examples of i nterfaces • Job Service North Dakota , Ch i ld Support, Unemployment, WSI Benefit • Work #

20

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These recommendat ions h ig h l ig hted a n umber of themes for prog ram improvements , though barrie rs exist with o ld structu re

Theme Examples from Committee Recommendations

• 2a) Move sub-adopt to a few identified experts • 2b) Sh ift foster care l icens ing to one entity per reg ion

to a l low ded icated staff to focus on i t • 3a) Des ignate ag i ng/ adu lt services staff to special ize

in one p rog ram if poss ib le • 4b) E l im inate the work e l ig i b i l ity workers do that isn 't

part of e l ig i b i l ity determ ination

• 2c) Al low counties to share l i censed foster homes across county l i nes , so that p lacements match a ch i ld 's needs and p rovider capab i l it ies

• 4b) Reg iona l ize e l ig i b i l ity determ ination for Med icaid coverage of foster ch i l d ren , TANF, Med icaid long-term care , Basic Care Assistance , etc .

• 2d) Reduce the CPS assessment from 62 to 25 days • 2e) E l im inate redundancy/mu lt ip le levels of review of

l icens ing decis ions • 2f) Develop a navigator ro le to partner with CFS/Ch i ld

Protect ion Services (CPS) • 4c) Develop the Fu l l Kit for process ing prog ram

app l ications and determ in ing e l ig ib i l ity

Importantly, S.B. 2 1 24 does not make any of these changes ; rather, the i ntent of the b i l l is to address and e l im inate the barriers ( i n particu lar, the structu ral barriers) that exist to mak ing these changes or improvements today

Barriers to Change Today

Structure

Rate per case fund ing formu la does not enable change i n m ix of services provided , thereby preventi ng special izat ion

County boundaries create s i loed operations , and g rant- l i ke fund ing formu la d is incentivizes sharing of resources

Sca l i ng best practices across counties can be d ifficu lt d ue to institutiona l s i los of county-based org . structu res and fund ing formu la

Address these barriers through

S.B. 2124

Process & Cu ltu re

Every county is accustomed to do ing every funct ion ; special izat ion requ i res integ rat ion with other counties

County offices a re not responsib le for prog ram outcomes outs ide the boundaries of the i r counties

Mak ing improvements requ i res t ime, effort , and a wi l l i ngness to embrace changes

Address these barriers through pilot

projects 2 1

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To add ress p rocess/cu ltu ra l barrie rs , OHS and count ies have improved prog rams th roug h Theory of Constra i nt (TOC) method

What i s Theory of Constra ints (TOC)? • TOC is a methodo logy for identify ing the most important l im it ing factor ( i . e . constra i nt) that

stands i n the way of ach ievi ng a goa l and then systemat ica l ly improvi ng that constra i nt u nt i l it is no longer the l im it ing factor. Combined with a focus on systems th i nking , TOC can transform operat ions with i n an organ izat ion or system .

• The primary focus of TOC is to identify the constra i nts , be l ieve there is h idden capacity and app ly the " ru les of flow" to measu re the work output and the qua l ity of work.

How d id North Dakota get i nvolved in TOC? • OHS Executive Di rector Jones was i ntroduced to Kristen Cox, the Executive D i rector of 0MB i n

the Utah Governor 's Office . Ms . Cox is a lead ing expert i n TOC and fi nd ing effic iencies with i n government agencies and prog rams.

• Ms . Cox and her team vis ited North Dakota on May 1 , 20 1 8 , and provided and day- long seminar on TOC and how it wou ld work i n socia l services . A broad aud ience attended incl ud i ng state and county socia l serv ice system professiona ls .

• OHS engaged Ms . Cox and her team i n a one-year contract to apply TOC to human services prog rams , and to mentor and tra i n OHS staff, county socia l serv ice staff, N DACo staff and consu ltants to conti nue the work i n the futu re .

Where has TOC been used? • Ch i ld Protect ion Services was identified as the fi rst prog ram to apply TOC . Based on a deta i led

review of CPS cases over a 1 2-month period the team identified th ree major opportun it ies for improvement .

- Engag i ng with the a l leged vict im (ch i l d ) immed iately. - Timel iness of CPS assessments from i n it iat ion to complet ion . - Thorough and complete CPS assessments.

22

50 2 1-z9 ,1,u., fl 61

�1 �- 27 The 'fi rst TOC p i lot p roject - on CPS assessments early prog ress i n part icipati ng cou nt ies

has shown

Partic ipating Counties , partici pati ng counties h igh l ighted i n red Resu lts , cumu lative % of assessments completed i n less than N day t imeframe

O v d Burk R nvll Bott n au Cdvd i r

• < 25 Days • < 45 Days • < 62 Days

89

1Minot•

ward

0 IV r

Morton

McH nry

Sh r d n W I s

Burl I h K dd r

•s1 m rck

Slut m n

J me town

mmon Log LaMour

Sioux Mclnto h Dickey

Basel ine : P i lot: P revious 1 2 Months Sept 1 7-Dec 1 6

• With i n the p i lot, 89% of the closed cases were closed with i n 62 days (the cu rrent law to complete an assessment) , versus a base l ine for 1 2 months of CPS cases i n the p i lot reg ions of j ust 40 .8%.

• Add it ional ly, 56% of the 499 c losed cases were closed with i n 25 days , versus a basel i ne for 1 2 months of CPS cases i n the p i lot reg ions of on ly 7 . 35%.

• Not on ly has t imel iness of assessments improved , but p i lot reg ions have i n some cases u n locked h idden capacity , i ncreas ing access to services and transferring staff from admin istrative work to d i rect cl ient services

23

Goi ng forward , the department wi l l cont i n ue us i ng the TOC method to bri ng cont i n uous improvement to p rocess/cu ltu re

56 2 12'-1

'- / 1-Lf /rq � I -?J :zc.(

Theory of Constra ints (TOC) Implementat ion Timel i ne

S82206 Pilot

Sept. 2017- Beean procram review

Encaeed Consultants

2017

Spring 2018

Introduced Theory of Constraints as System

Improvement Method

Enpeed Epiphany Associates from Utah

Launch CPS Pilot

Plan: Chi ldcare Llcenslnc Pilot, Backcround Check Pilot, El lelbil lty Pilot

Fa l l 2018

2019

Session-Introduce bill

Scale CPS Pilot

Kickoff Childcare Llcenslnc and Eliclbl l ity Pilot

Implementation of S82206 lqlslatlon

Continue applylnc TOC to proerams.

2019-2020

24

50 ,z.,1 2,t.)

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However, enteri ng a state of cont i n uous improvement h i nges crucia l ly on the structu ra l changes i ncl uded i n S . B . 2 1 24

S.B. 2124 contains provisions that are key to removing the barriers that prevent continuous improvement - a necessary (though incomplete) aspect of holistic change

25

S . B . 2 1 24 : Department of H uman Services Testimony Jan 1 4 , 20 1 9

Agenda



• Key Com ponents of Po l i cy


• Section by Sect ion Review of B i l l

5/'3 7 (? t..f '-/ t L1./t 1

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26

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As we have exam ined structu re , p rocess , and cu ltu re , g u id i ng 4 1

fJ.fl

pri ncip les emerged as fixed po i nts for po l icy

G u id i ng Pri ncip les

• No red uct ion i n access po i nts

• Red istr i but ion of do l l a rs from adm i n istrat ion to d i rect cl ient serv ice de l ivery

• No red uct ions i n fo rce o r red uct ions i n pay ( ro les wi l l be redes ig ned for some)

• P romote eq u ity in access and meet cl ients where they a re

• P romote specia l izat ion of efforts where poss ib le to imp rove cons istency of serv ice

• P romote decis ion maki ng as close to the cl ient as poss ib le

27

5 (5 2 1"2-L/ "'/1 4.,/ 1 1

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Today's mode l of de l iveri ng socia l (h uman ) serv ices can be d isjo i nted and i nefficient , resu lt i ng i n worse outcomes for cl ients

State s u pervised, county-admin istered structure : Visual

CFS Program & Policy

EA

Program & Policy

Aging Program & Policy

---------

- - · --._ _

� - - - - - - - - - - - - - - - - - · · · · · -

• • •• -• • • •

• --

State su pervised, cou nty-admi n istered structu re : Deta i l

• The State of North Dakota's state supervised county administered social delivery model consists of m u ltiple management layers of supervis ion to del iver social services .

- The Department of Human Services Program and Pol icy provide adm i n istrative oversight, ensure federal and state reporting compliance, create and update policy and administrative rule, and ensure Human Service Center (HSC) administrative rule compliance.

• The DHS Reg ional Representatives are part of the Field Services function and are typically housed in HSCs. They are responsible for provid ing adm i n istrative overs ight and techn ical ass istance for County Social Services. Additionally , they are responsible for approving payments, licenses and other decisions.

- County Social Services are res pons ible for adm i n istering the programs as d i rected by the State .

- Along with these three layers, each layer reports up separately or to other entities a l l together .

Program and Policy do not di rectly oversee the Field and Regional Representatives and the Regional Representatives do not di rectly oversee County Social Services, as they report up through County Commissions. However, due to client privacy protections, County Commissions do not have a full pictu re of performance into the delivery of Social Services.

- With these m u ltiple layers, there are t imes that decisions may be made too far away from the cl ient(s) .

- Finally, and most importantly, this structure , at times, causes a fa i r amount of confus ion and stress for staff and cl ients , especially on difficult cases.

28

18 2,t2Y ""/14/11

4t ! Pf ,q S . B . 2 1 24 wou ld sh ift de l ivery of socia l ( h uman ) serv ices from cou nt ies to zones , a hybrid state/cou nty structu re Spectrum of structural models for social (human) services delivery

Scenario A: State supervised, county-admin istered

Scenario C: Hybrid organ ization of "Human Service Zone"

Department of H uman Serv ices

CFS Prog ram & Pol icy

EA Program & Pol icy

Ag ing Prog ram & Pol icy

Scenario B : State admin istered

County Comm ission

Human Serv ice

Zone Board

---

Detail of Preferred Model: Scenario C

• Th is is the Department of Human Services structural recommendation for SB 2 1 24 .

• Th is model creates up to 1 9 zones and is structura l ly s imi lar to current law for mu lti-county socia l service d istricts .

• Th is structu ra l model creates clearer l ines of accountabi l ity between State Program and Pol icy and the admin istration of Social Services.

• Structu ra l ly d ifferent for mu lti-county social d istricts is that the intent is that Zones are defined for the responsibi l ity for del ivering state mandated services , regard less of c l ient address.

• With that d ifference, budgets wi l l be completed by Zones , however, as we move forward with p i lots with i n the TOC process, th is structu ra l model , along with changes to fund ing flex ib i l ity wi l l promote g reater col laboration, special ization and util ization of capacity that exists i n the State today.

• I n th is model , Zone Directors wi l l report and participate in a DHS Human Service Zone Leadersh ip Team and partners with Social Service Program and Pol icy to ensure effective and compl iant del ivery in each zone.

• The Department wi l l provide consistent budgeting gu idel ines, HR policies and pol ic ies and gu idel ines for standard and consistent program del ivery.

• Th is model also supports incremental movements toward improvements in efficiency and effectiveness i n cl ient centered del ivery.

29

Key Aspects of S . B . 2 1 24 B i l l

1 . The trans it ion to zones is a county- led process with gu id i ng pri nci p les for zone creat ion and approva l (Sections 48 and 49)

2 . H u man service zone d i rectors are state employees respons ib le for management of staff, budgeti ng , operations & outcomes (Sections 5 1 and 53)

3 . The zone board is composed of representatives from each county i n zone and respons ib le for overs ight of operations (Sections 57 and 59)

4 . The i ncreased flexib i l i ty of zone fund ing is meant to i ncrease responsiveness to commun ity needs and enab le i nnovat ion (Sections 2 and 1 1 5)

5 . FTE transfer authority i s for functions where the state can ga in cons istency or effic iency from specia l izat ion of work (Section 1 24)

SB 212<{ 1 /t4/t1

#I � - 3°

30

5f3 ;2 1 �y I /1 L-j /),61

1 . The trans it ion to zones is a county- led process with g u id i ng dl l

27·3 1

pri nci p les for zone creation and approva l Design Intent I Brief Description

+ Counties submit a plan by Sept 1 5 , 201 9 + The department reviews plans and i n it ial ly approves by Dec 1 , 20 1 9 + The maximum number of zones a l lowed would be 1 9

The goal is to establ ish zones i n a way that wi l l enable efficiency and effective service del ivery. These are pertinent criteria (among others) to that end :

SB 21 24 Language

Counties shal l identify other counties with which to enter a human service zone agreement, and together the board of county comm issioners Gf any county desiring to become a member of a multicounty social service district shal l fi le with the state-department a written request for membershipproposal to create a human service zone by September 1 5, 201 9 . . . . . . The department has fi nal approval of a human service zone. The department may establ ish or mod ify a human service zone based on the criteria set forth . . . AII human service zones must be i n itia l ly approved or establ ished by December 1 , 20 1 9 . . .

The maximum number of human service zones created may not exceed n ineteen .

The amount o f cu rrent and future access points for ind iv iduals to apply for and rece ive services with in a human service zone. The existing pattern of the counties trade area and any regional pattern establ ished by the department.

The county has a popu lation exceed ing sixty thousand ind ividuals . . . to operate as a s ingle . . . zone . . . and . . . it is i n the best interest of the neighboring counties.

The proposed human service zone is exc lud ing a county that shares an u rban area with other counties i n the proposed human service zone. The human service zone d i rector can adequately supervise the activities and operations of the human service zone.

Rationale ---------------+ Zone creation process g ives counties control over the plan for consol idated zone operations + The t imel ine for zone creation balances a swift transit ion to new model with provid ing the requ is ite t ime to create and approve plans

Department of Human Services approval of p lans is requ i red to ensure zone structu res meet the zone creation criteria without un i ntended effects (e .g . , lack of coverage of ru ra l a reas)

Max of 1 9 is based on an approximate d istribution of about 3 counties per zone , accounting for s ing le-county zones Access points shou ld be maintained or i ncreased for counties that are part of zone Leverag ing existing county connections promotes efficiency and a l ignment with other services (e . g . , publ ic health un its)

Large counties have sufficient scale to operate i ndependently, and this should be al lowed if neighboring counties also benefit from being part of d ifferent zone

U rban areas wil l benefit from being in 1 zone s ince this prevents b ifu rcating of services for citizens in same commun ity The zone should not be so large as to make it d ifficu lt for a zone d i rector to supervise performance of services across commun ities

SB 2 1 24 Reference(s)

SECT IO N 48 page 34 l i nes 1 3 through 1 7 (that is : 34 : 1 3-1 7)

SECTION 49 p. 36 , l ine 29 through p.37 l ine 2

SECTION 49 p .36 : 24-25

SECTION 49 p .36 : 1 5-1 6

SECTION 49 p .36 : 1 7-1 8

SECTION 49 p .36 : 1 9-2 1

SECTION 49 p .36 :22-23

SECTION 49 p. 36 :26-27

31

Se> zJZY l / (W. /1 'i

-=ti- I 11, . '362-2 . H uman service zone d i rectors a re state emp loyees respons ib le for management of staff, budgeti ng , operat ions & outcomes

Design Intent I Brief Description

+ From: county d i rector is county employee + To: zone d i rector is to be a state employee

+ Zone d i rector has authority to h i re and fi re zone employees + Zone d i rector must notify county comm issioner of staffing changes and receive approval for increases i n staff above approved level

+ From: county d i rectors are g iven a g rant amount + To: zone d i rectors have active ro le i n creating budget

+ From : reg ional representative review of foster care g rievance + To: peer review of foster care g rievance by zone d i rector i n confl ict-free human service zone

SB 21 24 Language

(Zone d i rectors) (m)ust be employees of the department of human services and located with in the human service zone, un less serving more than one human service zone.

(Zone d i rectors] (m]ay h i re, take d iscipl i nary actions, and d i rect the work of a human service zone team member in accordance with the department's pol icies. The human service zone d i rector has d iscretion to h i re a human service zone team member, on behalf of the county, subject to the a l lotted number of staff posit ions approved by the board of county commissioners of the county by which the staff posit ion is employed .

The governing board of the multicounty SGGiathuman service district annuallyzone d i rector sha l l prepare a proposed budget for the ffiStfisthuman service zone . . .

I f no written resolution between the parties relating to the g rievance is made at the informal meeting , the foster parents may request a formal hearing to be held atthe regional foster carea confl ict-free human service zone office . . . The regional foster sarahuman service zone d irector or the d i rector's designee shal l review a l l prior contact . . . (and] shal l then make a final determination relating to the grievance.

Rationale

State employment of zone d i rectors faci l itates partnersh ip with the state as wel l as peers , he lp ing to ensure that operations are col laborative and un iform

+ Zone d i rectors should have authority to manage staff in order to ensure prog ram compl iance and performance + S ince counties have FTEs, commissioners are g iven authority to approve positions above number a l ready authorized

An active role of zone d i rectors in creat ing the budget wi l l ensure that there is constant attention to how the budget can enable operations that proactive ly meet the needs of al l citizens and incorporates best practices from across the state

+ Simp l ifying the organ ization complexity of de l ivering human services wi l l involve reimag in i ng the ro le of the reg ional representatives at H u man Service Centers

SB 21 24 Reference

SECTION 53 p.42 :26-27

SECTION 53 p.43 :4-7

(see also: SECTION 2 p .6 :23-27

SECTION 51 p .39 :22-23

SECTION 97 p .86 :4- 1 6

32

56 � ,J '-1 1/14 / 1 1

3 . The zone board is composed of representatives from each cou nty i n zone and respons ib le for overs ig ht of operations

d4= I � - �

Subject

Board Pres ident


Zone d i rector serves as the president of the social service zone board

Appointed members selected by county commissioners

+ Demograph ics of board must reflect constituent counties + Each county must be represented on the zone board by at least one county comm issioner

+ Advocate for those i n need + Make recommendations on how to improve prog rams + Assist in coord ination of services for publ ic and private agencies + Aud it the cla ims against the human service fund

SB 21 24 Language

The human service zone d i rector shal l serve as president of the human service zone board as a nonappointed member.

The board of county commissioners of each county with in the human service zone shal l appoint the appointed members of the GOORty seGiathuman service zone board based upon fitness to serve as members by reason of character, experience, and tra in ing without regard to pol itical affi l iation .

Each sex. race. and ethn icity must be fa i rly represented on the human service zone board based on the zone"s demograph ics, and each county must be represented on the human service zone board by at least one county commissioner of that county.

(1 j Provide information to the department re lative to the commun ity needs of the human service zone residents and advocate to meet those needs . . . (2) Review services and programs provided by the human service zone and make period ic recommendations for improvement in services. programs. or faci l it ies . . . [3) Aid and assist i n every reasonable way to efficiently coord inate and conduct human service activities with in the GOOR-tyhuman service zone by private as wel l as publ ic organ izations . . . [4) Aud it a l l c la ims against the human service zone human services fund .

Rationale -----------------Since the zone d i rector is responsible for cl ient service del ivery and the day-to-day operations of the zone, they are wel lpositioned to set the agenda of the zone board and faci l itate d iscussion

The county commissioners have ins ight into who wi l l be more effective in representing the human service needs of their counties on the human service zone board

+ Zone board must ensure that the needs of all counties with in the zone, and a l l commun ities with in each county, are receiving sufficient service levels + Adequate representation of commun ity perspectives is essential to fu lfi l l i ng the oversight role of the board , especia l ly in recogn iz ing gaps or flaws in services

The oversight role of the zone board is designed to accompl ish 4 d ist inct goals: • H igh l ight commun ity needs or gaps in

services so that those needs are frontand-center to address as part of zone strategy, operations, and budgets

• Ensure that any flaws in zone performance are brought both to the attention of the department to address and ensure that the constituent counties can hold the department accountable to action

• Promote col laboration between commun ity stakeholders

• Mainta in responsib i l ity of fiscal affa i rs

SB 21 24 Reference(s)

SECT 10 N 57 p.45: 1 0-1 1

SECTION 57 p.44 :3 1 & p.45: 1 -3

SECTION 57 p.45 :4-8

SECTION 59 p.46:6-22

33

SB 2- 128 '-/H It 1

.# 1 'KJ · 3t.( 4 . The i ncreased flexi b i l ity of zone fu nd i ng is meant to i ncrease respons iveness to commun ity needs and enab le i n novat ion

Subject

Formu la sta rting po i nt

Formu la reca lcu lation


+ H istorical costs less income is fund ing starting point

+ The department adjusts form u la up or down from h istorica l cost and income + The adjustments up or down are based on factors such as compensation equ ity, actual expend itu res, cu rrent costs , services provided , need , duties assigned and caseload

Recalcu lation of formu la to occur b iannual ly

The intent is to continue re imburs ing counties for a share of ind i rect costs incu rred that support del ivery of human services

SB 21 24 Language

The calcu lation must be based on the human service zone's most recently avai lable data on h istorica l cost and income . . .

(The d i rector's ca lcu lation) of the total formu la payment. . . may inc lude . . .

. . . h uman service zone d i rector's proposed budget . . .

. . . Compensation equ ity and i ncreases . . .

. . . (cju rrent and futu re duties of and services offered by the human service zone . . .

. . . (other) pert inent factors, which i nc lude actual expenditures over the previous or cu rrent payment period, cu rrent costs, offered services, need, income, performance of duties d i rected or assigned and supervised by the department, and caseload .

The d i rector may recalculate and adjust each human service zone's formu la payment b iannua l ly (based on factors outl i ned above)

The d i rector sha l l calcu late payment for ind i rect costs . . . The tota l payment by the department for reimbursement of ind i rect costs incurred to support human services cannot be less than the prorated amount paid to counties for this purpose in state fiscal year 20 1 8 as identified in the ind i rect cost plan, un less a cost reduction or cost savings is achieved by the county.

Rationale -----------------This approach strikes an i n it ial balance between coveri ng expenses that support operations whi le not overpaying

+ Adjustment i n response to "need" and the human service zone d i rector's proposed budget wi l l better tie the fund ing to the needs of the local context + Adjustment for "cu rrent and futu re duties" wou ld a l low fund ing to reflect operational changes to the basket of services at the zones, enabl ing special ization and sharing of resources ; adjustments for "actua l expend itu res" enable these transitions to occur smooth ly + Adjustment for "compensation equ ity and increases" is inc luded because payment is cu rrently unequal between counties -which is reflected in d ifferences i n the rate per case by county i n the old formu la - and th is wou ld move toward equ ity u nder new method + Adjustments for "caseload" are sti l l inc luded as an essential part o f the formu la calculation , but no longer the on ly d river Recalcu lating 2x per year makes the zone operations more n imble while match ing the biannua l payment t imel ine

The goa l of th is provision is to protect the payment for i nd i rect costs supported by counties, ensuring that counties receive an amount that fa i rly protects the reimbursement they have received i n the past for i nd i rect costs

SB 2 1 24 Reference(s)

SECTION 1 1 5 p . 99 :22-24

SECTION 1 1 5 p . 99 :22-3 1 p . 1 00 : 1 - 1 5

SECTION 1 1 5 p . 1 00 : 9-1 1

SECTION 2 p. 6 : 1 -4

34

S6 z12 L.\ VH /t q

5 . FTE transfer authority is for fu nct ions where the state can ga i n cons istency or efficiency from specia l izat ion of work

�I Vj - �


+ From: each county operates same basket of services + To: services are d istributed to maxim ize efficiency and cl ient outcomes

Broadly, those functions targeted for potential transition to the state are those where work requ i res a g reater special ization and content knowledge. Through special ization of work, these trans itions wou ld ensure more consistent and efficient del ivery.

SB 2 1 24 SB 21 24 Language Rationale Reference(s) ------------------------------------U p to [228] fu l l-time equ ivalent positions i ncluded + The contingent authorization for these SECTION 1 24 i n Senate B i l l No . 20 1 2 , as approved by the functions reflect 2206 study committee p . 1 09 : 3-9 sixty-sixth legis lative assembly, may be adjusted recommendations , as some functions or i ncreased on ly if one or more human service were determ ined to be more efficiently zones transfers powers and duties . . . Any performed in consol idated manner positions added to the department of human (wh ich does not mean central ized ) services under th is section would be position + These authorizations a re contingent transfers from the h uman service zones because not a l l may happen this

bienn i um , or a lternative strategies may be developed

[ 1 9 FTEs) to serve as human service zone Number of zones not set, but OHS wil l SECTION 1 24 d i rectors need positions for d i rectors p . 1 09 : 30-3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 6 FTEs] if [OHS] assumes . . . duties associated CFS committee recommendations SECTION 1 24 with foster care tra in ing and the recru itment and i nc luded : p . 1 1 0 : 1 -3 l icens ing of fami ly foster care homes • Establ ish statewide foster care p . 1 1 0 : 1 2- 1 4 [ 2 FTEs] i f [OHS] assumes . . . duties associated with adoption assistance e l ig ib i l ity determ ination

[ 1 4 FTEs) if [OHS) assumes . . . duties associated with foster care assistance or IV-E e l ig ib i l ity determ ination

recru itment strategy • Reg ional ize foster care l icens ing • Move sub-adopt negotiations to

reg ion or state IV-E determ inations are compl icated/ error-prone, and a special ized team may perform better than genera l ists

SECTION 1 24 p . 1 1 0 :4-6

[27 FTEs] if [OHS) assumes . . . duties associated I nconsistency or lack of critica l mass in SECTION 1 24 with ch i ld care l icens ing reg ional del ivery motivates p . 1 1 0 : 7-8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . consol idat ing. operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 6 FTEs) if [OHS] assumes . . . duties associated EA committee suggested to outsource; SECTION 1 24 with [L I H EAP] consol idation to state may be preferred p . 1 1 0 : 9- 1 1 [ 1 04 FTEs) if [OHS] assumes . . . determination of e l ig ib i l ity and other related activities [for various programs] [30 FTEs] to rel ieve human service zones of m iscel laneous duties [e. g . , fraud i nvestigations, estate col lections , th i rd party l iab i l ity, etc . )

Some e l ig ib i l ity functions , such as longterm care e l ig ib i l ity , wou ld be more efficiently performed at state level The state is better posit ioned to perform duties that would make h uman service zones less efficient by d istracting them from core operations

SECTION 1 24 p . 1 1 0 : 1 5- 1 9

SECTION 1 24 p. 1 1 0 :20-22

35

S .B . 2 1 24 : Department of H uman Services Testimony Jan 1 4 , 20 1 9

Agenda






6B 2 1 �Y '-I . 1 4/1 cr

�' ?J . Ju

36

56 21� "'-f ,1'{/l q

4'- 1 PJ � � The fo l lowi ng pri nci p les for zone budgeti ng a re reflected i n the fisca l note

Zone Budgeti ng Pri nc ip les ( i n BOLD are p ri nci p les d riv i ng p rior formu la)

1 . Reimburse h istorica l costs of provid i ng services across zone

2 . Adj ust fo r d ifferences i n pay between zones and cost of l iv ing

3 . Adj ust fo r p rocess change (enab l i ng conso l idation , shari ng capacity)

4 . Adj ust for changes to the basket of serv ices (enab l i ng specia l ization )

5 . Adj ust for caseload i ncreases or decreases

6 . Adj ust fo r equa l iz i ng serv ice leve ls across the state , recog n iz i ng potentia l d ifferences i n de l ivery modes i n d ifferent zones

7 . Adj ust fo r statewide changes i n serv ices o r serv ice leve ls

8 . Adj ust for cont i ngencies o r p ress i ng s ituations

Ranked in o rder of p rio rity

37

-SB � l�t-4

\,/(� / 1/J,

* L f5· 3<{; The fisca l note associated with S . B . 2 1 24 of $ 1 82 . 3m wi l l support trans it ion to the new mode l of h uman serv ice zones

Line Item -------------Projection of CY1 8 and CY1 9 program-related costs

Indirect Cost Obligation

" Unallowable" Costs

Sub-total : Total Costs

MMIS Revenue Estimate

Sub-total: Total Costs minus Revenues

Estimated Amount1 , $ Rationale / Description of Calculation

1 55,669,639 = [CY1 8 run-rate]2 + [CY1 9 projection]3

5,351 ,022

683,734

161,704,395

5,445,672

156,258,723

The estimate for the indirect costs is 25% of the last available full 1 2 months of data (which is the state fiscal year 201 8) The "unallowable" costs are those not submitted through accounting 1 1 9 forms and include additional activit ies (e.g. , food pantries) that support individuals

Sum of program-related costs, indirect costs, unallowable costs

Estimated as 2 times the amount distributed from MMIS in CY1 8. Monies distributed to the counties from the Medicaid Management Information system (MMIS) support costs for services l ike home & community-based services

Inflationary lncreases4 7,845,750 Inflationary increases are based on Governor's recommendation of 4% and 2%, enabling counties to give same comp increases for staff as state

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compensation Equity 3,408, 1 1 9 The same roles at various counties are paid very differently due to historical Adjustments contingencies reinforced through the rate-per case formula; this amount would

allow for bringing up compensation of lower-paid counties

Family First Legislation 1 0,000,000 Funds to support preventative services and enhanced review of residential . ... I.mplementation .. lnvestments ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Placements .under . Qualif ied .. Residential . Treatment . Provider .(O.RTP) . provisions . . . . . . .

IT/Transitional Costs

Contingency/ Emergency Fund

Total

3,000,000

1 ,787,408

182,300,000

Investments to support pilot projects, training, or adjustments to SPACES

Calculated as about 20% of fund balances available for contingency use

1 Could adjust based on most recently avai lable cost data from counties 2 [CY1 8 run-rate] is ca lculated as the actual costs reported on the 1 1 9 for the fi rst 1 1 months, p lus an estimate for December costs, which is projected to be the average of the costs for the first 1 1 months . 3 [CY1 9 projection] is ca lculated as 3% t imes the [CY1 8 run-rate] 4 Current accounting standards do not support spl itt ing out costs based on Salaries and Wages from other operating costs ; therefore , O H S here assumes that 1 00% of costs are salaries & wages, to which the 4/2 appl ies, recognizing that these costs are the majority but do not in fact constitute a l l costs included . It is the intent of the department to beg in captu ring Salaries & Wages separate ly in CY1 9 1 1 9 accounting forms. 38

S .B . 2 1 24 : Department of Human Services Testimony Jan 1 4 , 20 1 9

Agenda





• Section by Sect ion Review of B i l l

SB 21 2y

'-I iY /1 11

� I p_,. 34

39

Testimony

j!, 2, 124 '\/ f '-1 / , q

tf ;i ?3 1 l

Senate B i l l 2 1 24- Depa rtment of H u ma n Services

Senate H u ma n Services Committee

Senator J udy Lee, Cha i rman

January 1 4, 201 9

Cha i rman Lee , and members of the Senate H uman Services Comm ittee, I am Jonathan Alm , an attorney with the Department of Human Services (Department) . appear before you to support Senate B i l l No . 2 1 24 , wh ich was i ntroduced on behalf of the Department .

The proposed changes in Section 1 of the B i l l a re regard ing the duties of the state's attorney. The p roposed changes do not add add it ional lega l respons ib i l it ies on the state's attorneys as the p roposed changes cu rrently fa l l under the duties of the state's attorney cu rrently set forth in separate chapters , which are now referenced u nder sect ion 1 1 - 1 6-0 1 of the North Dakota Centu ry Code. Due to the change of the cou nty socia l services structu re , language a lso needed to be added to reflect the p roposed structu re change to a human service zone. If the proposed changes are not added to Sect ion 1 , the Department or the Attorney Genera l 's Office wou ld need add it iona l appropriation and fu l l-time equ iva lent positions to provide lega l rep resentat ion and i n it iate p roceed i ngs u nder the statutes l isted i n th is B i l l . The p roposed changes wou ld ensure that the state's attorney wou ld institute and defend p roceed ings , upon consu ltat ion with the Department, regard i ng : l iab i l ity of a parent's estate to support a m inor ch i ld under section 1 4-09- 1 2 of the North Dakota Centu ry Code ; parental abuse under sect ion 1 4-09- 1 9 of the North Dakota Centu ry Code; var ious p rovis ions of the U n iform J uven i le Court Act under chapter 27-20 of the North Dakota Centu ry Code ; and genera l assistance under chapter of the North Dakota Centu ry Code . Th is Section wou ld also requ i re the state 's attorney to act as the lega l adviser for the newly created human service zones created under th is B i l l , i ncl ud i ng the respons ib i l ity to represent the human service zones regard i ng emp loyer actions taken aga i nst human service zone team members .

1

'6B 2- IZY '-/ 1'-i / I '1 t=J,� FJ, J

The proposed changes i n Sect ion 2 of th is B i l l cha nge the effective date of section 1 1 -23-0 1 of the North Dakota Centu ry Code , regard i ng when county officers a re req u i red to fu rn ish county comm iss ioners with a departmenta l budget; and removes exist i ng lang uage regard ing the budget ing p rocess for county social serv ice boards that wi l l no longer be ut i l ized g iven the new fund i ng methods provided for under this p roposed leg is lat ion . New language p rovides that the departmenta l budget subm itted by a human service zone may not exceed an amount determ ined by the Department and the human serv ice zone d i rector pursuant to Sect ion 1 1 5 of th is B i l l , and must i nc l ude the county's cost a l location of i nd i rect costs based on a form u la estab l ished by Department . Language is amended to cla rify that the county share of the human serv ice zone budget must be ent i re ly funded from the county's general fund . The county share of the human service zone budget should on ly i nvo lve payment for those i nd i rect costs that support the de l ivery of human services . Cu rrent ly , the county's share of socia l serv ices that is not being re imbursed by the State is being funded from the county's genera l fund . New language also estab l ishes that the h uman service zone d i rector shal l submit a p roposed i ncrease in staff to the board of county comm issioners . I f the board of county comm iss ioners approves the i ncrease i n staff, the human service zone d i rector sha l l have the authority to h i re that staff. Perti nent facto rs to be considered by Department i n approving the h i ri ng may i ncl ude case load i nformation . I f the Department approves an increase i n staff, the h uman serv ice zone budget may be increased by the amount determ ined necessary by Department to fund the approved add it iona l staff.

The p roposed changes i n Sect ions 3 th rough 1 0 of th is B i l l remove language regard ing "county pub l ic assistance agencies" , and replaces references to "cou nty socia l services boards" , "board of county comm iss ioners" , o r "counties" with language referri ng to the newly created " human service zones" throughout title 14 of the North Dakota Centu ry Code , re lati ng to "Domestic Relations and Persons" . Sect ion 3 a lso adds a p rovis ion provid ing that p rin ted mater ia l regard ing ch i ld support must state that more information may be obtai ned by ca l l ing state pub l i c assistance agencies or h uman service zones . Section 7 cla rifies that i f a parent chargeab le with the support of a ch i l d d ies leaving it chargeable upon the human

2

5i> 2,24 '-I 1t.{ I 1 1

!t;J to· 3

service zone but a lso leaves an estate suffic ient for support , the Department , i n the

name of the human serv ice zone , may institute a civi l act ion to c la im p rovis ion for its

support i nstead of the board of county comm iss ioners .

The p roposed changes i n Section 1 1 of th is B i l l rep lace references to "county socia l

services boards" and "cou nty's genera l ass istance pol icy" with language referri ng to

the newly created " human serv ice zones" and " h uman service zone 's genera l

assistance po l icy" with regard to respons ib i l i t ies for ind igent bu ria l . The p roposed

changes a lso assig n to the human service zone d i rector or the i r desig nee the

authority to a rrange for fi na l d isposit ion and to negotiate with funera l d i rectors

regard i ng expenses i nstead of the county socia l services board .

The p roposed changes i n Section 1 2 of th is B i l l would amend defi n it ions p rovided i n

chapter 23-4 1 of the North Dakota Century Code , relati ng to Ch i l d ren with Specia l

Hea lth Care Needs . I t wou ld remove the defi n it ion of "county agency" ; create a

defi n it ion for the newly created " human serv ices zone" to mean "a county o r

conso l idated g roup of cou nties adm in isteri ng human services with i n a des ignated

area i n accordance with a p lan approved by the Department" ; and provide a new

defin it ion for " human serv ices" , which i ncorporates the defi n it ion of " human services"

in chapter 50-06 of the North Dakota Centu ry Code .

The p roposed changes i n Sect ions 1 3- 1 7 rep lace "county agency" , "county" , and

"county socia l service board " wi th " human serv ice zone" with i n sect ions 23-4 1 -06 ,

25-04-08 . 1 , 25-04- 1 1 , 25-04- 1 6 , and 26 . 1 -45- 1 3 of the North Dakota Centu ry Code

regard i ng dut ies of h uman serv ice zones , notification prior to d ischarge of a

comm itted i nd ivid ua l , d isposit ion of a person who is not a lega l res ident , care of the

deve lopmenta l ly d isab led , and Qua l ified Serv ice Providers .

The p roposed changes i n Sect ion 1 8 o f t he B i l l re late to ven ue for cases regard ing

d isposit ion of a ch i l d need ing conti n ued foster care services . The p roposed change

on ly reflects the creat ion of the human service zones and does not mod ify which

cou nty wou ld sti l l be the p roper venue .

3

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� � p;._t--f The proposed changes i n Sections 1 9-23 rep lace "county social service board" ,

"adm in istrative county" , and "county" with "human service zone" i n va r ious provis ions

u nder the U n iform J uven i le Cou rt Act with i n chapter 27-20 of the North Dakota

Centu ry Code . The p roposed change i n Section 2 1 also updates a citat ion .

The p roposed changes i n Section 24 of th is B i l l adds "human service zone" a long

with the county u nder the U n iform Juven i le Cou rt Act with in chapter 27-20 of the

North Dakota Centu ry Code ; and a lso d i rects payment to human service zone

offices when certa i n costs and expenses have been paid by the human service zone

regard i ng the care and support of a ch i ld .

The p roposed changes i n Sect ion 25 of th is B i l l rep lace references to "county socia l

service agencies" wi th " human serv ice zones" , w i th regard to duties re lati ng to the

destruct ion of j uven i l e cou rt records under the U n iform Juven i le Cou rt Act .

The p roposed changes i n Section 26 of th is B i l l rep lace "county socia l serv ice

agency" with " h uman service zone" i n a subsect ion regard ing respons ib i l ity for

d isclosu re of j uven i l e records .

Due to the p roposed changes i n Sections 31 th rough 46 , Section 27 of th is B i l l i s

u pdated to reflect that the Department, th rough the human service zones , wi l l be

p rovid i ng for genera l assistance .

The p roposed changes i n Sections 28 and 29 o f th is B i l l change references from

"county soc ia l services" to "human service zones" regard i ng guard iansh ips .

The p roposed changes i n Section 30 of th is B i l l change language from "mu lt icounty

socia l serv ice d istr icts" to "h uman service zones" i n language regard ing local

governance advisory stud ies .

The p roposed changes i n Section 3 1 of th is B i l l amend language regard ing

assistance for the poor by chang i ng word ing from "county human services" or

"county" to " human service zone" and "county genera l assistance" to "genera l

ass istance" ; and removing language that had p reviously cond it ioned the g rant of

county assistance on the app l icant transferri ng certa in property into trust.

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The proposed changes i n Sect ion 32 of the B i l l transfers the respons ib i l ity for

determ i n i ng e l i g i b i l ity for genera l assistance from the county socia l serv ice board to

the human service zone d i rector or designee ; and d i rect that appeals of e l i g i b i l ity

determ inat ions for genera l ass istance now be d i rected to the Department , rather

than to the county socia l service board .

The p roposed changes i n Sect ion 33 of the B i l l renames "cou nty genera l ass istance"

to "genera l ass istance" and transfers genera l assistance authority to the human

service zone and it 's d i rector; u nder existi ng l aw, that authority had resided with the

cou nty social service board of each county.

The p roposed changes in Sections 34 and 35 of th is B i l l renames "county genera l

ass istance" to "genera l assistance" and transfers the respons ib i l ity for record

keep ing for genera l ass istance and for p rovid i ng med ica l attent ion and

hosp ita l izat ion to the poor to the newly created human service zones.

The p roposed changes in Sections 36 , 37 , and 40 of the B i l l tra nsfers the

respons ib i l ity for adm i n ister ing work requ i rements for genera l assistance from

counties to the h uman service zone i n which a person is a res ident ; and rename

"county genera l ass istance" to "genera l ass istance" .

The p roposed changes i n Sections 38 and 39 of the B i l l transfer the respons ib i l i ty for

ad m i n ister i ng comm u n ity work experience p rog rams from cou nties to the newly

created h uman serv ice zones .

The p roposed changes i n Sect ion 4 1 of the B i l l a l l ows a county and the Department

to seek recovery for county genera l ass istance or genera l assistance ; and removes

language stati ng that the cou nty may recover for necessaries fu rn ished to an

i nd igent person from that person 's father , mother , o r ad u lt ch i ld ren .

The p roposed changes i n Section 42 of t he B i l l estab l ishes t he county and the

Department has a p referred c la im aga inst the estate of a recip ient of county genera l

ass istance or genera l ass istance .

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The p roposed changes i n Sections 43 th rough 46 of the B i l l , fo r the purpose of

determ i n ing res idency for genera l assistance pu rposes , changes the word ing from

"county genera l ass istance pu rposes" to "genera l assistance pu rposes" , and change

references from "county" to "h uman serv ice zone" .

The proposed changes i n Section 47 of the B i l l create a number of new defin itions

with i n sect ion 50-0 1 . 1 -0 1 of the North Dakota Century Code , wh ich had previous ly

p rovided for the creat ion of "mu lt icou nty socia l service d istricts" . Defin it ions are now

p rovided for the pu rpose of estab l i shment of " h uman service zones" . "Human

service zone d i rector" , is defi ned as a "department employee who oversees the

h uman service zone 's operation , budget , and serves as p resident of the human

service zone board " ; and " human serv ice zone team member" is defined as a

"county emp loyee who a re respons ib le for adm i n isteri ng or de l ivering of human

serv ices u nder the d i rection of the human service zone d i rector . " Other defi n it ions

p rovided for i n th is sect ion inc lude "human service zones" , " human services" ,

" i nd i rect costs" , and " l oca l ly adm i n istered economic assistance p rograms" .

The p roposed changes i n Sect ion 48 of th is B i l l amends sect ion 50-0 1 . 1 -02 of the

No rth Dakota Centu ry Code that had p revious ly provided for the consol idat ion of

county agencies i nto m u lt icounty socia l serv ice zones . The proposed changes now

p rovide for the creation of human serv ice zones . U nder th is language , counties a re

req u i red to comb ine and conso l idate the i r county agencies i nto a human service

zone . Th is sect ion amends existi ng language to specify that human service zones

succeed to a l l the powers and d uties enumerated for county agencies and sha l l

perform a l l the funct ions and respons ib i l it ies assig ned to county agencies by tit le 50

of the North Dakota Centu ry Code ; requ i res cou nties to identify other counties to

enter i nto a human service zone agreement with , and to fi le a written proposa l with

Department for the creation of a human service zone by September 1 5 , 20 1 9 ; and

req u i res that the Department m ust approve or d isapprove the socia l service zone

p roposa l . Sect ion 48 a l so creates new language that provides that a county with a

popu lat ion exceed ing 60 , 000 accord i ng to the 20 1 0 Census may submit a p roposed

p lan to operate as a s ing le human service zone or conso l idate with other counties

6

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i nto a human service zone ; states that counties sha l l cons ider leverag ing existi ng

cooperative ag reements with other count ies i n order to best meet needs ; estab l ishes

that a social serv ice zone p lan must a l low non-res idents of the part ic ipati ng counties

of a human service zone to access serv ices and m ust a lso conti nue to provide

fu nd ing for i nd i rect costs associated with the service de l ivery of human services ; and

states that the p lan m ust p rovide the human service zone d i rector with authority to

h i re and impose d isc ip l i ne upon human service zone team members , who sti l l

rema in for a l l pu rposes an emp loyee of t he respect ive county. The new language

a lso states that the socia l service zone p lan must a lso designate the board of county

comm iss ioners of the respective cou nty of the human service zone team member to

review a g rievance for a d isci p l i na ry action , and states that the g rievance decis ion of

the board of county comm iss ioners is the fi na l decis ion of the human service zone .

New lang uage then a l l ows a socia l serv ice zone team member to appeal a

g rievance decis ion reached at the h uman service zone leve l to human resou rce

management serv ices with i n state government .

The p roposed changes i n sect ion 49 of th is B i l l change word i ng from "mu lt icounty

soc ia l service d istr ict" to " human service zone" ; and removes existi ng language that

a l l owed a county den ied approva l to estab l ish a m u lticounty socia l service d istr ict the

ab i l ity to appeal the decis io n . New language is added regard ing necessary criteria

in determ in i ng whethe r a socia l serv ice zone shou ld be approved or estab l ished ,

i n cl ud i ng the amount of access po ints for ind ivid ua ls to app ly and receive services ;

the exist ing pattern of the cou nties trade area , the s ize of the county popu lation , and

whether the p roposed human service zone is excl ud ing a county that shares an

u rban area with other cou nt ies i n the proposed zone , among other cons iderations .

Th is sect ion estab l ishes that the number of human service zone created may not

exceed n i neteen , and notes that the Department sha l l have fi na l approva l of a l l

h uman service zones and sha l l a lso have the authority to estab l ish or mod ify a

h u man service zone . F i na l ly , it requ i res that a l l h uman service zones must be

i n it ia l ly approved or estab l ished by December 3 1 , 20 1 9 .

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The p roposed changes i n Sections 50 and 5 1 of th is B i l l re late to sect ion 50-0 1 . 1 -04

of the North Dakota Centu ry Code . Provis ions in Section 50 are effective from

Aug ust 1 , 20 1 9 to December 3 1 , 20 1 9 , and are then ineffective , wh i le Section 5 1

becomes effective January 1 , 2020 . Sections 5 0 and 5 1 change word ing from

"mu lt icounty socia l service d istrict" to " human serv ice zone" ; and a lso adds language

stat ing that "the p lan must also requ i re the part ic ipat ing counties to part ic ipate i n the

i nd i rect cost a l location p lan " . Sections 50 and 5 1 remove existi ng language from

subsect ion 1 of sect ion 50-0 1 . 1 -04 of the North Dakota Centu ry Code stat ing that

"the p lan must p rovide that a l l services p rovided by county offic ia ls to county

agencies under th is code be p rovided by those county offic ia ls res id ing with i n the

same county i n which the d istr ict office of the mu lt icounty socia l service d istrict is

located " and a lso removes language stat ing that "the p lan a lso may p rovide that the

reg iona l d i rector of a reg iona l h uman service cente r serves as the d i rector of the

mu lt icounty socia l service d istr ict . " Sect ions 50 and 51 adds language sett ing forth

that the Department has authority to rescind , term inate , or mod ify the human service

zone p l an .

Sect ion 5 1 a l so makes a variety o f changes to t he provis ions i n subsect ion 2 of

sect ion 50-0 1 . 1 -04 of the North Dakota Century Code. Pursuant to the p roposed

language socia l serv ice zone d i rectors wi l l be req u i red to p repare a p roposed budget

for the h uman service zone for Department approva l . After Department approva l ,

the socia l service zone budget wi l l be requ i red to be subm itted to the board of

cou nty comm iss ioners in each county for review. New language estab l ishes that the

board of county comm iss ioners may not take any action to amend or mod ify the

amount p roposed or budgeted , but that they may make recommendations to the

Department or human service zone d i rector to amend or mod ify the amount

p roposed or budgeted . New language is a lso added specify ing that the human

service zone 's i ncome sha l l be depos ited i nto a h uman service zone human services

fund by the treasurer of the county where the human service zone office is located .

The human service zone board is g ranted authority to aud it th is fund . The cou nty

treasu rer where the h uman service zone office is located wi l l be requ i red to pay

approved or ratified c la ims from the human serv ice zone human services funds .

8

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New lang uage a lso p rovided that the Department has authority to reca lcu late and

adj ust each h uman service zone's formu la payment b iannua l ly based on factors

such as actua l expend itu res over the pr ior or cu rrent payment period , cu rrent costs ,

offered service , need , income , performance of d uties assigned by the Department ,

and case load . Section 51 a lso removes a s ign ifi cant amount of language in

subsections 3 and 4 of sect ion 50-0 1 . 1 -04 of the North Dakota Century Code

add ress ing human service zone board of a human service zone ; s im i la r lang uage ,

however, is added i n Sect ions 57 and 58 .

The p roposed language i n Sect ion 52 of the B i l l creates a new section i n chapter 50-

0 1 . 1 of the North Dakota Century Code re lat ing to the duties of h uman service zone .

Th is language estab l ishes dut ies to be perfo rmed by the human service zone under

the d i rect ion and supervis ion of the Department , i nclud i ng the superv is ion and

d i rect ion of a l l human serv ice activit ies conducted by the human service zone ,

i n cl ud i ng genera l ass istance o r other pub l i c ass istance ; superv is ion and

adm i n istratio n of human services i n the human service zone wh ich are fi nanced i n

who le or i n part by funds a l located o r d istr ibuted by the Department; to adm in ister

p rog rams such as supp lementa l n utrit ion assistance p rog ram , home energy

ass istance p rogram , des ignated ch i ld welfare serv ices , and other human services ; to

charge and co l lect fees and expenses for services provided by its staff i n

accordance with po l icies a nd fee schedu les adopted by t he Department; to

supervise and adm i n ister rep lacement p rog rams with s im i la r objectives; to supervise

and adm in ister exper imental or p i l ot p rojects when necessary ; and to cooperate with

other human serv ice zones to assure the conduct of i n it ia l and ongo ing human

serv ices with respect to app l icants who are p resent in other human service zones .

The p roposed language i n Section 53 of the B i l l creates a new section i n chapter 50-

0 1 . 1 of the North Dakota Centu ry Code re lat ing to the human service zone d i rectors .

Th is sect ion requ i res that human serv ice zone d i rectors must be employees of the

Department and located with i n the human serv ice zone , un less serving more than

one h uman serv ice zone; sha l l serve as p resident of the human service zone board ;

may serve more than one human service zone ; a n d may h i re , d iscip l i ne , and d i rect

9

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the work of human service zone team members , i nclud ing the d iscretion to h i re a

h uman serv ice zone team member on beha lf of the county ; sha l l not ify county

comm issioners or other county staff concern ing various person ne l moves regard i ng

a human service zone team member ; and the notificat ion of cou nty comm issioners

or other approp riate cou nty staff regard i ng transfers of staff between county and the

Department .

The proposed language i n Section 54 of the B i l l creates a new sect ion i n chapter 50-

0 1 . 1 of the North Dakota Century Code to a l low a human serv ice zone and the

Department to contract with another h uman service zone or any other person to

d ischarge or exercise the i r powers to adm in ister human services .

The p roposed language i n Sect ion 55 of the B i l l creates a new section i n chapter 50-

0 1 . 1 of the North Dakota Century Code to perm it the Department to adopt standards

and tra i n i ng req u i rements for adm i n istrat ion of h uman service . I t a lso p rovides

authority for the Department to take actions to remedy fa i l u re of h uman service

zones to meet these requ i rements , i nc lud ing the ab i l ity to requ i re add it iona l tra i n i ng ,

to requ i re a corrective act ion p lan of the h uman service zone , to term i nate or mod ify

a h uman serv ice zone p lan , o r to reca lcu late and adjust payments to the human

service zone .

The p roposed language i n Sect ion 56 o f this B i l l removes existi ng defi n it ions i n

sect ion 50-0 1 . 2-00 . 1 o f t he North Dakota Centu ry Code , regard i ng loca l expenses of

adm in istrat ion and loca l l y adm in i stered economic assistance p rog rams as " loca l

expenses of adm i n istrat ion" i s no longer used and " loca l ly adm i n istered economic

ass istance p rogram" defi n it ion has been moved to Sect ion 47 of th is B i l l .

The p roposed language i n Sections 57 and 58 o f th is B i l l add resses the

estab l ishment of a h uman service zone board . I t estab l ishes that each of the boards

of cou nty comm iss ioners with i n a human service zone sha l l appo int the appointed

members of the human service zone board . I t a lso cla rifies that appoi nted members

of the human service zone board must cons ist of loca l e lected offic ia l s , state elected

offic ia l s , and other key commun ity partners , and that each county must be

1 0

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represented on the human service zone board by at least one county comm issioner

of that cou nty . I t a lso sets gu ide l i nes regard i ng sex, race , and ethn icity of board

members , and requ i res the appo i nted members to elect a secreta ry and other

officers as the zone board determ ines necessa ry . New language a lso cla rifies that

the h uman serv ices zone d i rector sha l l serve as p resident of the human service

zone board as a non-appo inted member . Human service zone board members wi l l

be appo inted to th ree-year terms , with t he i n it ia l board appoi nted to staggered terms.

H uman serv ice zone board members wi l l be compensated at a rate of forty-five

do l l a rs per day, not to exceed twenty-five days in any one year , and sha l l a lso be

pa id for m i leage and actua l expenses in attend ing meetings and perform ing duties .

The p roposed language i n Sect ion 59 of th is B i l l estab l ishes the duties of the socia l

serv ice zone board . Th is i ncl udes p rovid i ng i nformation to the Department re lative

to the commun ity needs of the h uman serv ice zone res idents , and to advocate to

meet those needs ; to review serv ices and p rog rams provided by the human service

zones and to make period ic recommendat ions for improvement ; to a id and ass ist i n

coord i nati ng h uman serv ice activit ies with i n the human service zone by p rivate and

pub l i c organ izations , and to aud it a l l c la ims aga inst the human service zone human

services fund . The changes i n Sections 57 , 58 , and 59 were modeled after sect ion

50-06-05 . 3 of the North Dakota Centu ry Code regard ing human service advisory

g roups .

The p roposed language i n Sectio n 60 of th is B i l l c larifies that the duties of county

socia l serv ice boards that existed pr ior to the soc ia l service p i lot p roject created by

20 1 7 Senate B i l l 2206 sha l l rema in in effect th rough December 3 1 , 20 1 9 , at which

po int they sha l l exp i re . In add it ion , as a resu lt of the proposed payment structu re for

h uman serv ice zones set out i n Section 1 1 5 , Section 60 removes the socia l service

boards ' requ i rement to p rovide the Department a report of tota l m i l ls levied for

h uman services and language regard i ng the Department re imburs ing county socia l

service boards for expenses of loca l ly adm i n istered economic assistance prog rams.

The p roposed l anguage i n Sect ion 61 of th is B i l l permits a board of county

comm iss ioners to adopt a reso l ut ion to remove an appointed member of a human

1 1

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service zone board without cause ; but a lso c larifies that a board of county

comm iss ioners may not remove the h uman serv ice zone d i rector as p res ident of the

h uman service zone board .

The p roposed language i n Section 62 of th is B i l l adds "genera l assistance" word i ng

i n add it ion to referencing cou nty genera l ass istance , and notes that a su it a ris ing out

of the adm in istrat ion of laws re lat i ng to support of persons e l i g i b le for genera l

ass istance may be b rought by or aga inst a human service zone .

The p roposed language i n Sect ion 63 of th is B i l l c larifies the defi n it ion of H uman

Services , match ing the d efi n it ion p rovided i n Sect ions 1 2 , 47 , 75 , and 1 1 5 .

The p roposed language i n Section 64 of th is B i l l removes outdated references

re lati ng to the structu re of the Department and adds language that the Department is

the offic ia l agency of the state with regard to adm i n istrat ion of genera l assistance

based on the human serv ice zone p roposal and ch i ld support . The amendment a lso

rep laces a reference to "county socia l serv ice agencies" with " h uman service zones" .

The p roposed language in Sect ion 65, 67 , 69 , 70 , 7 1 , 72 , 74 , of th is B i l l changes

word i ng from "county socia l serv ices" or "county socia l serv ice board " to "human

service zone" i n sect ions 50-06-0 1 . 9 , 50-06-05 . 3 , 50-06-06 . 2 , 50-06-06 . 5 , 50-06-

06 . 1 4 , 50-06- 1 2 , and 50-06 . 2-0 1 of the North Dakota Century Code regard i ng the

authority of the Department .

The p roposed language in Sect ion 66 of th is B i l l adds and p laces language to reflect

Department's powers and d ut ies to i nclude human service zones i nstead of county

socia l serv ice boards and to adm i n ister a statewide prog ram for state-funded h uman

services , staffi ng , and adm i n istrat ion costs re lated to the adm i n istrat ion of human

services . Sect ion 66 a l so rep laces various references to "county" or "counties" with

" h uman service zone" and removes a citat ion . Section 66 a lso add add it iona l

l anguage to add ress the Department 's ab i l ity to adm in ister, a l locate , and d istribute

fu nds made ava i lab le for k i nsh ip ca re serv ices and payments and serv ices i n

response to the Federa l Fam i ly F i rst Prevent ion Services Act and to contract with

1 2

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another human service zone or any other pub l ic or private person to d ischarge

Department 's d ut ies or powers .

The p roposed lang uage i n Sect ion 68 of th is B i l l reta ins lang uage effective unt i l

December 3 1 , 20 1 9 , that was created under the social services p i lot project that

requ i res Department to pay each service area's expenses for socia l service

p rog rams for ca lendar years after December 3 1 , 20 1 7 . The amendments i n Section

68 also estab l ishes that after December 3 1 , 20 1 9 , the Department sha l l pay each

h uman service zone 's expenses for adm i n ister ing human services for a l l ca lendar

years thereafter, based on the formu la payment amount ca lcu lated for each human

serv ice zone under Sect ion 1 1 5 . New language a lso provides that the d i rector of the

Department sha l l a uthorize expend itu res from the human service finance fund to

re imbu rse the Department for i ts costs of provid i ng human services that h istorica l ly

h ave been provided by a cou nty , h uman service zone, or for a new service or

p rog ram based on state or fede ra l law.

The p roposed language in Sect ion 73 of th is B i l l c la rifies that human services

p rovided by the human service zones , genera l assistance under chapter 50-0 1 of

the North Dakota Century Code , and specia l p rojects approved by Department and

agree to by any affected human serv ice zone are p rog rams that must be funded at

state expense for amounts i n excess of funds provided by the federa l government .

Add it iona l ly , th is sect ion notes that the state sha l l bear the costs of amounts

expended for payments to the e lderly and d isab le and for expanded service

payments for e lderly and d isab led .

The p roposed language i n Sect ion 75 of th is B i l l removes and adds defi n it ions with i n

t he "Comprehens ive H uman Services Programs" chapter 50-06 . 2 of the North

Dakota Centu ry Code . I t removes defi n it ions for "county agency" and "county p lan"

which a re no longer app l i cab le ; adds defi n it ions for "human serv ice zone" , " h uman

service zone p lan" , and "human services" wh ich match the defi n it ions provided

e lsewhere in Sect ions 1 2 , 47, 63 , 75, 79 , 95 , 1 00 , 1 05 , 1 1 2 , and 1 1 5 ; and rep lace

"cou nty agency" with " human service zone" . Add it iona l ly , qua l ified service p rovider

is defi ned to mean a human service zone or independent contractor, which can be

1 3

an ind ivid ua l or an agency, who agrees to meet standards for services and

operat ions estab l ished by the Department .

56 e, ( Z �

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The p roposed changes in Sect ions 76 and 78 of th is B i l l remove and rep lace

lang uage with in sect ion 50-06 . 2-03 and 50-06 . 2-06 of the North Dakota Centu ry

Code . The word "prog rams" , located after the words "human services" is removed

as red undant based on the defi n it ion of " human services" , and in mu lt ip le locat ions

references to "cou nty" or "county agencies" a re rep laced with "h uman service

zones" .

The p roposed language i n Sect ion 77 of th is B i l l reta ins the powers and dut ies of

county agencies as they cu rrent ly exist re lat ing to human services through

December 3 1 , 20 1 9 . On January 1 , 2020 , sect ion 50-06 .2-04 of the North Dakota

Centu ry Code wou ld be amended to provide that h uman service zones wi l l take on

the respons ib i l ity for adm i n ister ing comprehens ive human services for ind ivid ua ls

and fam i l ies at the human serv ice zone leve l . At mu ltip le locat ions "county h uman

services" word i ng is rep laced with " human serv ice zone" to reflect that change . Th is

sect ion reta ins requ i rements for the creat ion of a h uman service zone plan to g u ide

the efforts of the h uman serv ice zone . Add it iona l ly , the sect ion c la rifies that the

h uman service zone sha l l make certa i n serv ices ava i lab le to any ind ivid ua l

req uest ing serv ice and determ i ned e l i g ib le on the basis of a functional assessment

conducted in accordance with state and fede ra l l aws and regu lations .

The p roposed change in Section 79 of th is B i l l removes the defi n it ion of "county

agency" and adds the . defin it ion of "human serv ice zone" with in sect ion 50-09-0 1 of

the No rth Dakota Century Code regard i ng a id to dependent ch i ld ren .

The p roposed language i n Sect ions 80 th rough 93 of th is B i l l make changes to

sections 50-09-02 , 50-09-02 . 2 , 50-09-03 , 50-09-04 , 50-09-06 , 50-09-07 , 50-09-08 ,

50-09-08 . 2 , 50-09-08 . 3 , 50-09-08 .4 , 50-09-09 , 50-09-1 4 , 50-09-29 , and 50-09-30 of

the North Dakota Century Code regard i ng a id to dependent ch i l d ren rep lace the

references to "county" or "county agencies" to " h uman service zones" .

1 4

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The proposed changes made with i n Section 80 i n regards to subsections 20 and 2 1

of sect ion 50-09-02 of the North Dakota Century Code g ive the Department the

ab i l i ty to determ ine if the human service zone shou ld not adm in ister the ch i ld and

fam i ly services and federa l payments for foster ca re and adoption assistance.

The proposed changes made i n Sect ion 81 cla rify that e i ther the human service

zone or state agency (referri ng to the Department) wi l l be i nvo lved i n the p rocess for

p rovid i ng assistance for adopted ch i l d ren with specia l needs , p revious ly sect ion 50-

09-02 .2 of the North Dakota Centu ry Code j ust add ressed the county agency.

The proposed changes made in Section 82 of the Bi l l c la rify that the h uman service

zone has certa i n d uties u nder th is chapter 50-09 of the North Dakota Centu ry Code

regard i ng to a id to dependent ch i l d ren , u n less otherwise d i rected or determ i ned by

the state agency. I t a lso updates language that the human serv ice zone sha l l submit

a nnua l ly , th rough the human service zone d i rector , to the state agency a budget for

the human service zone i nstead of the county subm itti ng to the board of county

comm iss ioners .

Tile p roposed changes made i n Sect ion 83 of t he B i l l adds language t o state that

h uman service zones are req u i red to p reserve and protect the re l i g ious fa ith of

ch i l d ren under the i r j u risd icti on .

The p roposed changes made i n Sect ion 84 of the B i l l c la rifies that app l ications for

ass istance for a id to dependent ch i l d ren may be made to either the h uman service

zone o r state agency .

The proposed changes made i n Sect ion 85 of the B i l l c la rify that when a h uman

service zone o r state agency receives an app l ication for assistance for a id to

dependent ch i l d ren ; the h uman serv ice zone , u n less otherwise d i rected by the state

agency, sha l l make an investigation and record of the matter.

The proposed changes made in Sect ion 86 of the B i l l estab l ishes that the

Department may req uest from human serv ice zones informat ion deemed necessary

to ca rry out the ch i l d support enforcement p rog ram .

1 5

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The proposed changes made in Sections 88 , 89 , 92 , and 93 of the B i l l merely

changes references from "county agencies" to " human service zones" and changes

"department" to "state agency" with in chapter 50-09 of the North Dakota Centu ry

Code , re lati ng to a id to dependent ch i l d ren .

The p roposed changes made in Sect ion 87 o f t he B i l l change "department" to "state

agency" and adds "human service zone" to the l ist entit ies that a person is immune

from su it o r l i ab i l ity u nder any state or federa l law for any d isclosure of informat ion

made under chapter 50-09 of the North Dakota Centu ry Code , re lati ng to a id to

dependent ch i ld ren .

The p roposed changes made i n Sect ion 90 of t he B i l l c la rify that upon comp let ion of

a n app l icat ion for assistance for a id to dependent ch i l d ren , a human service zone or

the state agency is respons ib le for determ i n i ng whether the app l icant may be

p rovided ass istance , what type of assistance may be p rovided , and the date upon

wh ich assistance may beg i n .

The p roposed changes made in Section 9 1 of the B i l l c la rify that an app l icant for

temporary ass istance for needy fam i l ies , who is agg rieved by a h uman service zone

o r state agency decis ion or delay in making a decis ion , may appeal to the state

agency .

The p roposed changes made i n Section 94 of the B i l l revise the defi n it ion of

"authorized agent" with i n chapter 50- 1 1 of the North Dakota Century Code , re lat i ng

to foster care . Th is change reflects that the human service zone wi l l now be the

Department 's the authorized agent .

The p roposed changes made i n Sect ion 95 of the B i l l again reflect that the human

service zone wi l l be defi ned as authorized agent for chapter 50- 1 1 . 1 of the North

Dakota Centu ry Code , re lat ing to early ch i ld hood services , removes language

p rovid i ng a defi n it ion for "county agency" , and p rovides the same defi n it ion for

" h uman service zone" that has been p rovided i n Sections 1 2 , 47 , 75 , 79 , 1 00 , 1 05 ,

1 1 2 , and 1 1 5 o f t h i s B i l l .

1 6

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The p roposed changes made in Section 96 of the B i l l change word i ng from "county

soc ia l serv ice board " to " human service zone" regard ing the foster ca re parent

g rievance process .

The p roposed changes made in Section 97 of th is B i l l c la rify that a human service

zone is now i nvo lved in the foster ca re parent g rievance process by rep lacing the

county socia l serv ice boards i n that ro le . New lang uage a lso c la rifies that if no

written reso lut ion is made at the forma l g rievance heari ng , the foster parents may

request a forma l hear ing to be he ld at a confl ict free human service zone office . The

h uman service zone d i rector or the i r des ignee wi l l be respons ib le for p rovid ing a

record of th is hear ing and m ust review a l l p rior contact between the foster care

pa rents and the Department re lat i ng to the g rievance. The human service zone

d i rector is then req u i red to make a fi na l determ inat ion re lati ng to the g rievance .

The p roposed changes made i n Section 98 requ i re that the h uman service zone or

Department take over the authority county agencies previous ly had to investigate

and record the ci rcumstances of each app l icant or recip ient of med ica l assistance , i n

o rder to ascerta i n t he facts support ing t he app l ication , o r the g rant ing o f ass istance .

The p roposed changes made i n Sect ion 99 of th is B i l l p rovide gu ide l ines for human

service zones and the Department to investigate med ica l ass istance app l ications . I t

a l l ows Department to request from human serv ice zones i nformation necessary to

carry out the med ica l support program and a l lows human service zone or

Department emp loyees to adm i n ister oaths and affi rmations .

The p roposed changes made i n Section 1 00 of th is B i l l amend defi n it ions i n chapter

50-24 . 5 of the North Dakota Centu ry Code , re lat i n g to aid to aged , b l i nd , and

d isab led persons . The defi n it ion for "county agency" is removed and adds a

defi n i t ion for " human service zone" match ing the defi n it ion provided in Sections 1 2 ,

4 7 , 75 , 79 , 95 , 1 05 , 1 1 2 , and 1 1 5 of th is B i l l .

The p roposed changes made i n Sections 1 0 1 th rough 1 03 of th is B i l l change "county

agency" to " huma n service zone" i n sections 50-24 .5-02 , 50-24 . 5-03 , and 50-24 . 5-07

1 7

of the North Dakota Centu ry Code, re lati ng to a id to aged , b l i nd , and d isabled persons .

5 B ;)., \� '-I 1 J ·1Y / l '1

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The proposed changes in Sections 1 04 and 1 08 of th is B i l l remove references to sect ion 50-03-08 of the North Dakota Centu ry Code , wh ich is repealed by Section 1 22 of th is B i l l .

The proposed changes i n Sect ion 1 05 of th is B i l l amend defin it ions in chapter 50-24 . 7 of the North Dakota Centu ry Code , re lati ng to expanded services payments for e lderly and d isab led . The defi n it ion for "county agency" is removed and adds a defi n ition for "human service zone" match ing the defin it ion provided in Sections 1 2 , 4 7 , 75 , 79 , 95 , 1 00 , 1 1 2 , and 1 1 5 of th is B i l l . Add it iona l ly , qua l ified service provider is defined to mean a human service zone or independent contractor, which can be an i nd iv id ua l o r an agency , who agrees to meet standards for services and operat ions estab l i shed by the Department .

The proposed changes i n Sect ion 1 06 of th is B i l l reflect that the Department wou ld now supervise and d i rect human services zones , i nstead of county agencies , i n the adm in ist ration of expanded serv ice payments for the elderly and d isab led .

The proposed changes i n Sect ion 1 07 of th is B i l l reflects a transfer of powers and d ut ies from count ies to the newly created human service zones when it comes to adm in istering the expanded service payments for the e lderly and d isab led .

The proposed changes i n Sect ion 1 09 of th is B i l l c larify defi n it ions under chapter 50-25 . 1 of the North Dakota Centu ry Code , regard ing ch i ld abuse and neg lect . The p roposed language rep laces the county socia l service board as the Department's authorizat ion agent with the human serv ice zone . The proposed changes also rep lace "county socia l serv ice board " , "county" , and "mu lt icounty" with "human service zone . "

The proposed changes i n Sect ion 1 1 0 of th is B i l l c larify that ch i ld fata l ity review panels sha l l p romote i nterh uman service zones commun ications regard ing ch i ld death .

1 8

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The proposed changes i n Sect ion 1 1 1 of th is B i l l replaces "cou nty socia l service boards" with "human service zone" and adds "zone" to ensure the Department or the human service zone are not req u i red to imp lement or enforce vu lnerable ad u lt protective services p rovis ions if an appropriation is not provided by the leg is latu re to support that imp lementat ion i n a zone .

The p roposed changes i n Sect ion 1 1 2 of th is B i l l , amends defin it ions in chapter 50-29 of the No rth Dakota Centu ry Code , re lati ng to ch i ld ren 's hea lth insurance program . The defi n it ion for "county agency" is removed and adds a defi n it ion for "human serv ice zone" match ing the defi n it ion p rovided in Sect ions 1 2 , 47 , 75 , 79 , 95 , 1 00 , 1 05 , and 1 1 5 of th is B i l l . Sect ion 1 1 2 proposed amendment a lso updates a lega l citation .

The p roposed changes i n Section 1 1 3 of th is B i l l u pdates a lega l citat ion and removes language regard ing the d uties of the Department regard ing ch i ld ren 's hea lth i nsu rance p rog ram that had p rev ious ly requ i red the Department to p rovide re imbu rsement to counties for expenses occurred i n the admin istration of the ch i l d ren 's hea lth i nsu rance p rog ram as re imbursement to the human service zone wou ld occur i n accord ance with Sect ion 1 1 5 of th is B i l l .

The p roposed changes i n Sect ion 1 1 4 of th is B i l l replaces "county agency" with " human serv ice zone" regard i ng the d ut ies of the h uman serv ice zone for the ch i l d ren ' s hea lth i nsu rance p rogram .

The proposed changes i n Section 1 1 5 o f t h i s B i l l create chapter 50-35 of t he North Dakota Centu ry Code , re lat i ng to state pa id human services . P lease note that Section 1 26 of th is B i l l dec lares Sect ion 1 1 5 to be an emergency measure to add ress proposed section 50-35-06 of the North Dakota Centu ry Code . Provided be low i s ana lys is of each new sect ion created under Sect ion 1 1 5 :

50-35-0 1 : P rovides defi n it ions , inc lud ing "department" , "d i rector" , "economic ass istance" , " h uman serv ice zone" , "h uman service zone d i rector" , "human services" , and " i nd i rect costs" . The defi n it ion of "economic assistance" m i rrors the defi n it ion of " loca l ly ad m in istered economic assistance programs"

1 9

cu rrently i n sect ion 50-0 1 . 2-00 . 1 of the North Dakota Century Code . The

defi n it ion for " human service zone" , " human service zone d i rector" and

5!3 2-- 1 24 " / 14 /i 1 4J.-2 f<S. 20

" human services" is the same defi n it ion as p rovided in Sections 1 2 , 47 , 63 ,

75 , 79 , 95 , 1 00 , 1 05 , and 1 1 2 of th is B i l l . The defin it ion of " i nd i rect cost" i s

the same defi n it ion as provided in Sect ion 4 7 and wi l l be used to estab l ish the

formu la payment to be paid by the Department to the county to cover the

county's i nd i rect costs .

50-35-02 : The proposed lang uage estab l ishes that the Department sha l l

adm in ister a statewide p rogram for state fund ing of staffing and adm in istrative

costs re lated to the adm in istrat ion of human services . The p roposed

language deta i l s that payments to h uman service zones and Department

must be pa id p u rsuant to formu l a p rovided for i n the p roposed sect ion 50-35-

04 of the North Dakota Centu ry Code , with the fi rst payment i n January 2020 .

The lang uage a lso estab l ishes that t he h uman service zones sha l l cooperate

to adopt and imp lement adm in i strative and operationa l cost-savings

methodolog ies and determ ine options for conso l idat ions and the d i rector of

Department sha l l h i re the human service zone d i rector.

50-35-03 : Estab l ishes p rocedu res for the d i rector of the Department to

d istrib ute formu la payments for each h uman service zone for each ca lendar

yea r. The p roposed language sets forth that the D i rector has authority to

amend a nd mod ify each human service zone's formu la payment . P rovides

that before June second of the p revious year, the d i rector of Department sha l l

reca lcu late the tota l formu la payment for each human service zone pu rsuant

to the p roposed sect ion 50-35-04 of the North Dakota Centu ry Code , and that

for payments d isbursed after calenda r year 2020 , the d i rector sha l l subtract

from a h u man service zone 's J une fifteenth d isbursement any amount

exceed ing the l im itat ion u nder the p roposed sect ion 50-35-04 of the North

Dakota Centu ry Code.

50-35-04 : Estab l ishes p rocedu res for the d i rector of Department to ca lcu late

formu la payments to each human service zone based on certa in factors . This

20

56 Z l �l..J \ /,..;. /, f #-2. PJ, 2)

proposed sect ion also i ncludes language authoriz ing the d i rector of the Department to authorize expend itu res from the human serv ice fi nance fund to re imburse the Department for its costs of p rovid ing human services that have h istorica l ly been p rovided by a county , h uman service zone, or a new service or prog ram based on federa l or state law. The proposed language sets forth that the Department may authorize expend itu res from the human serv ice fi nance fund to re imburse the Department for trans it ional costs incu rred for imp lementi ng the statewide p rog ram for state fund ing . The proposed language a lso estab l ishes that the d i rector of the Department has authority to reca lcu late and adj ust each h uman service zone's formu la payment b iannua l ly based on a variety of perti nent factors . The proposed language a lso p rovides for the d i rector of the Department to ca lcu late payment for i nd i rect costs accord ing to a formu la estab l ished by the Department.

50-35-05 : The p roposed language requ i res that each human service zone i n the state sha l l ma inta i n a human service zone human services fund . A l l expend itu res by the human serv ice zone for human services are requ i red to be paid from th is fund . If insuffic ient funds are p resent i n the human service zone h uman serv ices fund , the d i rector of Department may approve a transfer from the human service finance fund to the human service zone human services fund . I n add it ion , th is sect ion p rovides that the balance of funds i n a human service zone human services fund on January 1 of each year after ca lendar yea r may not exceed five hund red thousand do l lars i n a zone that had annua l expend itu res of two m i l l ion do l la rs or g reater in ca lendar year 2020 , or a maximum of one hund red thousand do l lars for a zone that had annua l expend itu res of less than two m i l l ion dol lars i n ca lendar year 2020. Th is language is s imi lar to the language used i n 201 7 Senate B i l l 2206 .

50-35-06 : Estab l ishes that the county treasurer sha l l transfer the fu l l amount of the serv ice area h uman serv ices fund cu rrently i n existence to the h uman service zone human services fund on January 1 , 2020 , and proh ib its the transfer u nti l January 1 , 2020 , u n less approved by the Department. The

2 1

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proposed lang uage a lso sets forth that if on January 1 , 202 1 , and each year

thereafter, the ba lance of a human serv ice zone human services fund

exceeds the l im itat ions i n p roposed section 50-35-05 of the North Dakota

Centu ry Code , the d i rector of the Department sha l l red uce the human service

zone's form u la payment as d i rected i n the p roposed subsect ion 4 of section

50-35-03 of the North Dakota Centu ry Code .

50-35-07 : The proposed language sets forth that the human service fund is a

specia l fu nd i n the state treasu ry. Moneys i n the fund may be used , subject

to leg is lat ive appropriat ion , for the p rovis ion of formu la payments to h uman

service zones and payments to the Department pursuant to Sect ion 1 1 5 of

th is B i l l .

The p roposed changes i n Section 1 1 6 of t he B i l l rep lace references to "county social

service" with " human service zone" in a sect ion focus ing on records management .

The p roposed changes i n Section 1 1 7 of th is B i l l removes language t ied to the state

fu nded socia l serv ices p i lot p roject as chapter 50-34 of the North Dakota Centu ry

Code and the p i lot p roject is effective th rough J u ly 3 1 , 20 1 9 .

The p roposed changes i n Section 1 1 8 of th is B i l l w i l l cont i nue with the changes

made i n 20 1 7 Senate B i l l No . 2206 that i s set to exp ire after the fi rst two taxab le

years beg i n n ing after December 3 1 , 20 1 6 . The p roposed change wi l l remove the

county's ab i l ity to levy an annua l tax for human services purposes .

The p roposed changes i n Sect ion 1 1 9 of th is B i l l makes changes to reflect that the

p roperty tax savings statement p rovided to taxpayers must, for taxab le years

beg i n n i ng after December 3 1 , 20 1 8 , ident ify p roperty tax savings rea l ized by the

taxpayer under the newly created p roposed chapter 50-35 of the North Dakota

Centu ry Code i n add it ion to other sources of tax re l ief ident ified in sect ion 57-20-

07 . 1 of the North Dakota Centu ry Code .

The p roposed changes i n Section 1 20 of th is B i l l would rep lace "county socia l

services board " with " human service zone" regard i ng the defi n it ion of "welfare

22

recip ient" i n sect ion 57-55- 1 0 of the North Dakota Centu ry Code regard ing the

determ inat ion of mob i le home tax exemptions and exceptions .

The p roposed changes i n Sect ion 1 2 1 of th is B i l l rep laces "county genera l

ass istance workers" with "h uman service zone genera l assistance workers" and

"cou nties" with " human serv ice zones or t he department of human services"

regard i ng who can be defined as an emp loyee u nder chapter 65-0 1 of the North

Dakota Centu ry Code , regard i ng Workforce Safety and I nsurance .

SB 2-1 2-L.J

'f� hq � ·6?7 · )3

Section 1 22 of th is B i l l repeals North Dakota Centu ry Code section 50-06-20 . 1 ,

re lat i ng to the human services g rant p rog ram ; section 50-06 .2-05 , re lati ng to county

h uman services p rog ram fund i ng ; and chapter 50-03, re lati ng to the county human

services fund . Repea l of these p rovis ions wi l l take p lace when th is B i l l takes effect.

Section 1 23 of the B i l l repea ls North Dakota Centu ry Code sect ions 50-0 1 -03 ,

county socia l serv ice board may accept p roperty o r secu rity; 50-0 1 . 1 -02 . 1 , fi nancia l

i n centives for creat ion of m u lt icounty socia l serv ice d istr icts ; 50-0 1 . 2-03 . 1 , county

socia l service boards may contract ; 50-0 1 .2-06 ; standards of admin istration for

county socia l serv ice boards ; 50-06-05 .7 , m u lt icounty agreement to adm in ister socia l

service p rogram ; 50-06-06 . 1 , I nd i ans-genera l ass istance contract requ i red ; and 50-

2 5 . 1 -06 . 1 , caseload standards for ch i l d abuse and neg lect . Section 1 25 of this B i l l

n otes ·ihat repeal o f the p rovis ions i n Sect ion 1 23 w i l l not be effective unt i l January 1 ,

2020 .

Section 1 24 of th is B i l l p rovides for a cont ingent appropriat ion and authorization .

Th is section autho rizes the Department , subject to the ava i lab i l ity of funds , to adj ust

o r i ncrease fu l l-time equ iva lent posit ions i n various areas, i nc lud ing up to two

h u nd red twenty-e ight posit ions . Cu rrent ly , Senate B i l l No . 20 1 2 is ment ioned i n th is

B i l l as the Department was a nt ic ipati ng that any appropriations and fu l l-time

equ iva lent posit ions g ranted by the Leg is lat ive assemb ly wou ld be inc luded i n the

Department appropriat ions b i l l , Senate B i l l No . 20 1 2 . The posit ions may be adj usted

or i ncreased on ly if one or more h uman service zones transfers powers and duties

associated with one or more programs , service , or funct ions from a human service

23

?� 2 1 2-y "-/ ( '-i /1 1 �2- P5 , 2l{

zone to the Department . The lang uage cla rifies that any positions added to the Department wou ld be posit ion transfers from the human service zone and must not resu lt in a net add it ion of posit ions de l iveri n g human services prog rams , services , or fu nct ions as p rovided in Department 's appropriat ion b i l l , Senate Bi l l No. 201 2 . Department wou ld have to not ify the office of management and report to the budget sect ion after J une 30 , 2020 , if one o r more fu l l -t ime equ ivalent posit ions are authorized under th is sect ion of th is B i l l ; and wou ld also have to notify the appropriations comm ittees of the s ixty-seventh leg is lative assembly of any transfers . Th is Sect ion then out l ines how many fu l l-time eq u iva lent posit ions cou ld be transferred from a n umber of d ifferent p rog rams . This Sect ions also sets forth that the funds for the sa laries , wages , and operating costs associated with any posit ion added to the Department m ust be paid for with the l ine items of sa laries and wages and operating costs a uthorized i n Senate Bi l l No. 201 2 .

Section 1 25 of the B i l l dec lares effective dates and an exp i ration date for various p rovis ions of the B i l l , as fo l l ows : Section 50 of th is Act is effective August 1 , 20 1 9 , th rough December 3 1 , 20 1 9 , and is thereafter i neffective . Sect ions 1 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 1 0 , 1 1 , 1 2 , 1 3 , 1 4 , 1 5 , 1 6 , 1 7 , 1 8 , 1 9 , 20 , 2 1 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 3 1 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 4 1 , 42 , 43 , 44 , 45 , 46, 5 1 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 6 1 , 62 , 63 , 64 , 65 , 66 , 67 , 69 , 70 , 7 1 , 72 , 73 , 74 , 75 , 76 , 78 , 79 , 80 , 8 1 , 82 , 83 , 84 , 85 , 86 , 87 , 88 , 89 , 90 , 9 1 , 92 , 93 , 94 , 95 , 96 , 97 , 98 , 99 , 1 00 , 1 0 1 , 1 02 , 1 03 , 1 04 , 1 05 , 1 06 , 1 07 , 1 08 , 1 09 , 1 1 0 , 1 1 1 , 1 1 2 , 1 1 3 , 1 1 4 , 1 1 6 , 1 20 , 1 2 1 , 1 23 , and 1 24 of th is Act become effective on January 1 , 2020 .

Section 1 26 of th is B i l l i s a n emergency c lause for Section 1 1 5 of th is B i l l concern ing creat ion of a new chapter 50-35 of the North Dakota Centu ry Code concern i ng statepa id human serv ices - app l icati on , formu la payments - d istr ibutions by the Department , ca lcu lat ion of formu la payment - expend itu res , human service zone human services fund - estab l i shment - fund ba lance l im itations , human service zone human services fund - transfer , and human service fi nance fund .

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Test imony P repa red fo r the Senate Human Services Committee J a n u a ry 8, 20 19 By : Te rry Traynor, N DACo Execut ive D i rector

5ts J rJ.Y \/ 1 '--! /; <( #3 ?j- I

RE : Senate Bi l l 2124 - Socia l Service Redesign

Tha n k you, Madam Cha i r and com m ittee members, fo r the opportun ity to add ress what i s l i ke ly

the m ost s ign ifi cant and fa r- reach i ng p i ece of l egis l a t ion to be cons idered th is Sessio n . As th i s

com m ittee is awa re, the No rth Da kota Associ at ion of Coun ites rep resents a l l 53 cou nt ies of ou r

state, a nd ou r po l icy posit ions a re d eve loped by de l egates from each, as we l l as i nd ivi d u a l s specif ica l ly rep resent ing t he e l ected a nd fu l l -t ime a ppo i nted cou nty offic i a l s . A s the cou nty

soci a l service d i rectors' associ at ion , i n d ivi d u a l d i rectors, a nd ind ivi dua l com m iss ioners a re he re

today with some very spec ific a nd tech n ica l comments, I wou ld l i ke to i ntrod uce that test imony

with a statement that I be l i eve refl ects the co l l ective pos it ion of county government .

Ou r Associ at ion i s fu l ly i n su pport of the cont i n u at ion of state fu nd i ng for the de l ivery of cou nty

soci a l serv ices . Th i s has p roven to be ( a lthough in some cases s l ight ly i nadequate) a much more

eq u it ab l e means of taxpayer su pport of these vita l services to ou r c it i zens .

We recogn ize that with state fu nd i ng there i s an expectat ion of greater state control , a nd

fu rt he r we do not d i sagree that the re a re effic ienc ies t h a t c a n be obta i ned . F o r t h i s reason we strong ly support the p i l ot p rojects u nde rway on a p rogram bas is to exp lore where and how

these effi c iencies ca n be ach ieved without e rod i ng services at the loca l l eve l .

The concept o f mu lt i -cou nty zones ha s obvious ly been successfu l on a vo l u nta ry bas is, as m u lt i

cou nty ar rangements - some i n p l a ce for many yea rs - h ave imp roved services and ga i n ed

effi c iencies . The map on the next page i l l u strates the seven mu lt i -cou nty d i str icts i n -p l ace

a l ready, and where act ive d i scuss ions a re on-go ing . Our Associ at ion supports these loca l ly

d riven efforts a nd we encou rage a l l cou nt ies to exam i n e how th i s structu re may be best

emp loyed . By tak ing away the cha l l enges that d is pa rate p roperty tax bases pose for

co l l a borat ion , the Legi s latu re ha s encou raged m u lt i -cou nty d istr icts without a mandate .

Co l l ect ive ly, we a re not i n support of a n aggressive t imetab l e of fo rced conso l i dat ion . Wh i l e i t

i s recogn ized that a t imeta b l e p rom pts act ion , it i s be l i eved that more t ime shou ld be bu i lt i nto

t he p rocess fo r cou nt ies to work together . I t i s c l ea r that more t ime wi l l a l so a l low the p i lot

p rojects to be refi ned and better p rove themse lves, the reby better inform ing any futu re

co l l a bo rat ions . U lt imate ly, loca l ly e lected offi c i a l s bette r u n dersta nd the re lat ionsh i ps,

demograph i cs, a nd econom ics t hat make for a successfu l p a rtnersh i p, and it can ta ke t ime to

en su re that such a pa rtners h i p wi l l be successfu l .

Mu lti-County Socia l Service Distr icts

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The l oca l ove rs ight of soc i a l service de l ivery des igned in the p roposed l eg is l a t ion i s a l so of concern to cou nt ies . Th is b i l l p roposes that the m u lt i -cou nty zone a dm i n i strato rs become state emp loyees but provide overs ight over loca l ly emp l oyed staff. Ou r Assoc iat ion be l i eves t h i s t o be prob lemat ic i n t h e p rocess o f h i r i ng, d i sc i p l i n i ng, staff a l l ocat ion , a n d sa l a ry dec i s ions . Comm iss ione rs a re a l so concerned that the ro l e of the "zone boa rd" becomes d im i n ished when they have no d i rect cont ro l over the i n d iv id u a l respons i b l e fo r ensu ri ng adequate service de l ive ry at t h e l oca l l eve l . F u rther, we be l i eve that l i a b i l ity i n s u ra nce coverage wi l l be prob l emat ic u nde r the proposed structu re . One o f the most freq uent a reas o f l i a b i l ity to be add ressed by ou r i n s u ra n ce poo l i nvo lves h uman resou rces, and I be l i eve, if asked, pool rep resentat ives wou l d exp l a i n how cha l l eng ing coverage cou l d become if they a re expected to defend a host cou nty over emp loyment a ct ions ta ken by a state emp loyee .

To be c lea r, o u r Assoc iat ion su pports 5B2124, a nd we a re dete rm i ned to work with t h i s comm ittee, the Senate, t he House, a nd t he execut ive b ra nch to make the necessa ry adj u stments to pass leg is lat ion that wi l l create a h u m a n serv ice system that wi l l se rve a l l of North Da kota fo r the next 60 yea rs .

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Testimony Senate Bi l l 2 1 24 - Social Service Redesign

Senate H uman Services Committee January 1 4, 20 1 9

5 � ?/2 L4 l / l '-1/11

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Chairman Lee and members of the Senate Human Services Committee, I am Kim

Jacobson, Director of Agassiz Valley Social Services District which is a collaboration of Traill and

Steele Counties. I also serve as a member of the North Dakota County Director's Association

and as a North Dakota Association of Counties Organization (NDACo) board member.

For over a decade, counties have advocated before the North Dakota legislative body

urging that property tax relief could be accomplished through transferring social services-related

administrative costs . With the passage of SB 2206 during the 65th Legislative Assembly,

important strides were made towards such relief with the two-year grant pilot project . During the

recent interim session, counties have partnered with the Department of Human Services in not

only implementing the grant pilot projects but also exploring ways that social services can be

redesigned. County and state officials along with various partners have worked with a team of

professional facilitators to help lead efforts to help ensure that we provide even greater local

service to our vulnerable citizens. At this time, we are in varying degrees of execution of pilot

projects designed to further focus on client-centered, efficient, and effective local social services .

Senate Bill 2 1 24, as introduced, makes effort to ensure the property-tax relief efforts are

maintained while setting the foundation to improve our social services delivery system. It is critical

to maintain county values of providing consistent and locally accessible community-based

services for our most vulnerable citizens.

The North Dakota County Director's Association has reviewed Senate Bill 2 1 24 with detail .

We have created a Key Concern document that identifies sections of the proposed bill which are

• suitable for amendment to provide greater opportunity for continued local services and

56 :) /),� \/1'--f I ,1

.::Ir Lf PJ · d-. collaboration while focusing on service to our citizens in their home communities . For your

reference , the overarching themes of key concerns include : Implementation Timeline , Local

Governess , Zonal Employment , Opportunities for Standardization and Service Consistency, Non

Compliance Consequences for Human Services Zones , and Technical Considerations.

The North Dakota County Director's Association's support of SB 2124 is based on our key

concerns being addressed in a manner that maintains the values of locally driven service along

with flexibility to meet citizen need. Thank you for this opportunity to testify before the Senate

Human Service Committee regarding Senate Bill 2124. I offer the North Dakota County Social

Services Director's Association's availability to assist in whatever way beneficial to the committee

to work towards future amendment.

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Im plementation Time l ine

• • Senate B i l l 2 1 24

North Dakota Association of County Soc ial Service D i rectors Key Concern Summary

January 1 4, 20 1 9

SECTION 2 - Amending 1 1 -23-01 Offices Reasonableness of t imel ine is concern ing from budgetary p lann ing perspective . required to furn ish commissioners with departmental budget (Effective after December 3 1 , 201 9)

SECTION 48 - Amending 50-0 1 . 1 .02 Creation Reasonableness of t imel ine is a lso concern ing from the human service zone p lan perspective includ ing of human service zones plann ing , plan subm iss ion , plan approval process and implementation .

SECTION 49 - Amending 50-0 1 . 1 -03 Manner of determinations

SECTION 68 - Amending 50-06.05.8 -Department to assume costs of economic assistance and social service programs (Effective through Decem ber 3 1 , 201 9)

SECTION 77 - Amending 50-06.2-04 Powers and duties of human serv ice zones (After December 3 1 , 201 9)

RECOMMEND : Amending the im plementation timel ine over two biennium a l lowing collaboratives to be county-driven in itiatives. Provide incentives for early implementation. After two bienn ium, if a county(ies) fa i l to act, the state to have authority to establ ish a plan for that jurisdiction.

SECTION 48 - Amending 50-0 1 . 1 .02 Creation Various p i lot projects are in d iffering stages of implementat ion with no state-wide scal ing as of yet. T imel ine of human service zones is proh ib itive of us ing the p i lot p rojects for i nformed-decis ion making for zone creation .

RECOMMEND : Amend the implementation t imel ine to al low for further work on the pi lot projects and to a l low counties to util ize lessons learned from this work while developing zonal plans.

SECTION 49 - Amending 50-0 1 . 1 -03 Manner of N D DHS has authority to change proposed zonal p lans without provis ion for fu rther county i nput , consent , or determinations appeal .

SECTION 50 - Amending 50-0 1 . 1 -04 Financing RECOMMEND : Including appeal rights to dispute proposed changes to human service zone plans to Human Service zone board a neutra l party.

• Local Governess

SECTION 48 - Amending 50-01 . 1 .02 Creation of human service zones

SECTION 49 - Amending 50-01 . 1 -03 Manner of determinations

SECTION 51 - Amending 50-0 1 . 1 -04 Plan -Financing - H uman Service zone board

SECTION 59 - Amending 5-01 .2-03 Duties of the human service zone board

SECTION 6 1 - Amending 50-0 1 .2-04 Removal of members of the human service zone board

Not Included in Any Section

• • Role of County Commission(s) moves to a consu lt ing board vs . employer/fiscal govern ing board wh i le the majority of zonal employees remain local employees.

RECOMMEND : Clarify expectations and expand authority to al low the County Commission(s) from the human service zone to oversee the h iring process when h i ring the Human Service Zone D irector. C learly define that consent of ND DHS Executive D i rector must be obta ined prior to final izing H uman Service Zone D i rector em ployment offers . Human Service Zone D i rector position would continue to be subject to merit system h i ring processes and procedures. This wi l l prov ide for joint authority over merit system employees and support a county administered/state supervised operations model.

Role of Zonal Board moves from a pol icy board to advisory board .

I n addit ion , a duty o f the zonal board i nc ludes aud it ing a l l c la ims o f the zonal human service fund . Th i s may pose a barr ier to t imely cla ims processing and is unclear i n i ntent. Also, th is may prompt more frequent zonal board meetings than necessary to conduct core bus iness.

RECOMMEND : Amend to authorize the host County Commission, replac ing the zonal board, to review claims prior to payment. Requ i re that the host county-wide fiscal audit also include the fiscal operations of the human service zone.

Unclear if a County Commission can remove any appointed human service board member (even ind iv iduals that the specific County Commission d id not appo int) .

RECOMMEND : Amend to l imit the removal o f an appointed human service zone board member to the County Comm iss ion who made the appointment.

The ma intenance of current service del ivery access points is not addressed nor is the provis ion to a l low for expansion of access po ints if warranted .

RECOMMEND : Amending to include language to assure current service del ivery access points wi l l be mainta ined and provide authority to expand service access points .

2 1 P a g e

• • • Zonal Employment

SECTION 53 Amending 50-0 1 . 1 Human Service Supervis ion of local zonal employees is overseen by a state employee, the Human Service Zone D i rector, zone di rectors who is overseen by the ND OHS Executive D i rector.

SECTION 1 1 5 Amending 50-35 State-paid human serv ices - Application

RECOMMEND : Amend to change employment o f the Human Service Zone D irector to a local zone employee employed by the host County and h i red with endorsement of the ND OHS Executive D i rector. Increase accountabi l ity by encouraging more frequent communications between the H uman Service Zone Board and ND OHS regarding overal l assessment of operations, functional ity of the zone, and H uman Service Zone D irector performance. Strengthen SECTION 55 - Standards of Administration to ensure accountabi l ity and effectiveness measures are provided.

SECTION 53 Amending 50-0 1 . 1 Human Service The Human Service Zone D i rector d ut ies has expanded scope and authority . zone d irectors

RECOMMEND : Dependent on whether the H uman Service Zone D irector i s a state employee or local employee , the defined duties of the Human Service Zone Director wi l l need further review for appropriateness .

SECTION 53 Amending 50-0 1 . 1 Human Service The Human Service Zonal D i rector serves as President of the Human Service Zonal Board , potent ial ly with zone d i rectors vot ing authority.

SECTION 48 Amending 50-0 1 . 1 -02 Creation of human service zones

SECTION 1 24 Contingent Appropriations and Authorization

RECOMMEND : Amend to appoint the Human Service Zone D i rector as a non-voting Director o f the Board vs. Board President.

ND OHS may transfer up to 228 employees from local zonal employment to state employment without a clear process for consent or appeal r ights for im pacted employees or local ent it ies .

RECOMM E N D : Amend t o provide timely notice a n d explanation to the human service zone prior to reductions and include an appeal process for both fiscal and personnel reductions. Amend to ensure that current employees, upon position displacement, are provided adequate opportunity and preference when applying for/transferring to new or existing positions. Ensure that appl icable grievance procedures inc lude provis ions for forced relocation.

Opportun ities for Standard ization and Service Cons istency

SECTION 1 1 Amending 23-06-03 Duty of final disposition - Indigent burial

General Assistance Programs - SB 2 1 24 provides for vary ing pol icy vs. statewide standard izat ion for General Assistance and I nd igent Buria ls Programs . General Assistance authority, as proposed, is b road and

3 I P a g e

• SECTIONS 3 1 -46 Amending various provisions of Genera l Ass istance Programs

SECTION 48 Amending 50-0 1 . 1 -02 Creation of human service zones

SECTION 47 Amending 50-0 1 . 1 -0 1 Creation of human service zones

SECTION 1 1 5 Amending 50-35-05 Human service zone, human service fund -establ ishment - fund balance l im itations

SECTION 1 1 5 Amending 50-35-02 Indirect Costs

SECTION 2 - Amending 1 1 -23-01 Offices required to furnish commiss ioners with departmenta l budget (Effective after December 3 1 , 201 9

SECTION 6 8 - Amending 50-06.05.8 Department to assume costs of economic assistance and socia l service programs (Effective through Decem ber 3 1 , 201 9)

SECTION 77 Amending 50-06.2-04 Powers and duties of human service zones (After Decem ber 3 1 , 201 9)

• • outdated when compared with current appropr iation leve ls and practice. Cont inued broad language , lack of un iform pol icy and authority may lead to adverse un intended consequences.

RECOMMEND : Amend to provide for the Department with the assistance of Human Service Zone D irectors develop, revise and adopt un iform statewide General Assistance and Ind igent Burial pol icy, appl ication process, and standards. Des ignate Indigent Burial rates to be set and reviewed by the Legislative Body.

While Sect ion 80 provides for the state agency to establ ish and ma inta in personnel standards on a merit basis for personnel employed by the state and human service zone, Em ployee Grievances/Appeals and personnel pol icy is referred to the local leve l . I n Section 48 , it provides for human service zones to develop local pol icy vs . standard izat ion addressing merit system em ployees . Furthermore , County Commissions are charged with the duty to serve as a grievance/appeal board wh i le a l l other county em ployees are not subject to merit system requ i rements .

RECOMMEND : Amend to designate the Department to establ ish basel ine personnel pol icy, cons istent with merit system requ i rements and appl icable law/code for human service zone employees including grievance and appeals processes . Provide for local agencies to set general operations pol icy such as hours of operation, working hours, workplace safety pol ic ies, etc.

There are county-specific d ifferences based on who accompl ishes various functions such as payro l l , legal services , etc. that wi l l im pact operational costs vs . i nd i rect costs .

Wh i le operating under cu rrent law unti l 20 1 9 , the 2020's budget wi l l need to be formed in the late spring/early summer of 20 1 9 . Th is is non-congruent with the app l ication t imel ine for submitt ing and rece iving determ ination regard ing human service zone plans. Th is creates a budgetary development confusion as the human zone plan wi l l not have been yet been subm itted , mod ified or approved . This wi l l create a d ifficult , if not im possible scenario for budgetary processes.

Ending fund balance l im itations may be inadequate . Orig ina l budgetary l im its were arbitra ry i n nature and not set based on data . Many factors inc lud ing zone com position , posit ions vacant but not yet fi l led , changes in b i l lab le caseload due to Tit le IV-E status or type of placement can all impact ending fund balance.

RECOMMEND : Current payment form ula fa i ls to incentivize col laboration and efficiencies . Sol ic it feedback from Abacus and the County Aud itor's Association regarding the proposed impact of the defin ition and usage of ind irect costs . Amend to provide for ending fund balances to be negotiated with the Department for the next biennium in order to further analyze trends and reasonableness of proposed l imitations. i ncentivize for cost savings versus establ ishing penalty. Delay the subm ission of human service zone plans up to the next two biennium, al lowing county-driven col laboration, innovation and implementation as previously suggested.

4 1 P a g e

• SECTION 73 Amending 50-06-20 Programs funded at state expense -Interpretation

• • While provid ing for amounts expended for service payments to the elderly and d isabled and expanded service payments for elderly and d isab led (SPED and Expanded SPED) , SB 2 1 24 fa i ls to address county funded home and commun ity based services creat ing a gap for vu lnerab le popu lations currently served by county social services .

RECOMMEND : Amend to grandfather existing county funded programs into statewide service del ivery model. Expand current HCBS service provision to include Limited SPED proposals which would br ing further standard ization of service.

Non-Com pl iance Consequences for Zonal H uman Services

SECTION 55 Amending 50-0 1 . 1 Standards of administration - Actions upon fai lure to admin ister

SECTION 55 Amending 50-0 1 . 1 Standards of admin istration - Actions upon fa i lure to admin ister

SECTION 55 Amending 50-0 1 . 1 Standards of adm inistration - Actions upon fa i lure to adm inister

SECTION 1 1 5 Amending 50-35-04 Calculatioh of form ula payment - expenditures

Bi l l d raft is unclear on who admin isters non-compl iance issues and makes final determ ination/action .

RECOMMEND : Amend to identify the Executive D i rector or appointee to oversee this process

Bi l l d raft is unclear on the threshold of non-compl iance that would meet this defin it ion .

RECOMMEND : Amend to ensure that this provision be implemented incrementally us ing a progressive discipl ine type model with ful l consequences reserved for the most serious , chronic and systemic operational matters .

No response, review or appeal process is provided inc lud ing but not l im ited to term ination/modification of a human service zone p lan o r adjustment in formula payment.

RECOMMEND : Amend to inc lude a written appeal process with opportunity for review and reconsideration. Amend to provide for a notification process to the human service zonal board regard ing any serious compl iance concerns .

Human service zone d i rector to be notified with in 30 days after amendment or mod ificat ion of budget changes. This is concern ing and with potential retrospective impact that may set up the human service zone d i rector for fai led compl iance.

RECOMMEND : Amend to notify the human service zone d i rector in a timely manner regarding changes in appropriation and provide for a reasonable timel ine pr ior to effective date.

SECTION 50 Amending 50-35-04 Calculation of Formula payment to be set us ing a variety of factors inc lud ing revenue . Currently , there is vary ing practice in form ula payment - expenditures uti l iz ing target case management and SPED payments (MM IS payments) to capture addit ional revenue .

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Techn ical Considerations

SECTION - Throughout enti re document

SECTION - Throughout entire document

SECTION 85 Amending 50-09-07 Investigation by human service zone or state agency

SECTION 97 Amending 50-1 1 .2-02 Grievance Procedures (foster parents)

SECTION 1 09 Amending 50-25. 1 -02 "Loca l Chi ld Protection Team"

• • RECOMMEND : Amend to require the Department to establ ish standard ized practice expectations of human service zones.

Term "office" is used broadly and can impact readab i l ity of intent.

RECOMMEND : Amend to add the defin ition "Zonal Human Service Admin istrative Office" to provide clarity. Incorporate throughout document.

Term "Board of County Commiss ioners" is unclear. Such term can refer to the host County Commiss ion for the human service admin istrative zone office or a l l County Commissions served with in the human service zone. This is confus ing and may lead to d ispute .

RECOMMEND : Amend to clarify appl icabi l ity throughout whether the intent is for a l l County Comm iss ions with in the zone or to the County Com mission where the human service zone adm in istrative office is located. Amend to define "Human Service Zone Host County/County Comm ission".

Mu lt ip le housekeep ing opportun it ies are noted throughout the b i l l draft. Goal to reduce redundancy, improve readab i l ity , and to ease the process of future amendment.

RECOMMEND : As SB 2 1 24 melds many sections of existing law into one piece of legis lation, amend to include one defin itions section and remove other areas of repeated language . .

Potential un intended consequences due to use of ant iquated term " investigation" . Th is may imply im plementat ion of fraud un its i n each human service zone.

RECOMMEND : Amend to inc lude the term "assess" vs . " investigate" .

Foster Parent Grievances section incons istently counts days .

RECOMMEND : Amend to require a l l days in this section to be calculated in working days .

This sect ion ind icates that there shal l be Ch i ld P rotect ion Teams. This language may be interpreted to be non-congruent with the successful practices of current p i lot projects .

RECOMMEND : Amend from "shal l" to "may" to better support the pi lot project redes ign work and to provide program flexibi l i ty.

6 I P a g e

• SECTION 57 Amending 50-0 1 .2-01 Human Service zone board - Members -Qual ifications

SECTION 57 Amending 50-0 1 .2-0 1 Human Service zone board - Mem bers -Qual ifications

SECTION 58 Amending 50-01 .2-02-01 Human Service zone board - Mem bers -Qual ifications

SECTION 1 1 4 Amending 50-29-03 Duties of human service zone

• • Unclear defin it ion of what meets "fa i rly represented" expectations .

RECOMMEND : Amend to requ ire the compos ition of the non-elected members of the human service zonal board m ust be s imi lar to that areas most current US Census demographics com position of res idents 1 8 years and older considering gender, ethnic ity, etc.

Zonal board secretary is to be elected

RECOMMEND : Amend to al low the human service zone board secretary to be elected or appointed

Proposed rate of $45 per meeti ng is less than current average rate of compensation amounts for county board members. Current range for county boards is $45 to $ 1 00 per meeting . Cu rrent social service board payment rates are developed i n a manner consistent with other local county boards .

RECOMMEND : Amend to des ignate the County Comm ission where the human service zone admin istrative office is located to set the human service zone board com pensation rate .

The p lan referred to throughout th is sect ion is unclear.

RECOMMEND : Amend to provide clarity to what plan this references .

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C O U N T Y

Testimony Senate Bill 2124

Monday, January 14, 2019; 9:00 am Williams County

My name is Helen Askim and I have been the Director of Human Resources in Williams County since 2005. I am submitting testimony to express concerns regarding the Human Resources impacts and implementation plan outlined in Senate Bill 2124.

Williams County recognizes the significance of funding Social Services through a state-funded model. We recognize that legislators have taken these steps in an attempt to relieve North Dakota's citizens of increasing property taxes. However, in redesigning the structure of social services delivery in North Dakota, the plan must consider not only the impacts on clients but the real-life implications on the dedicated employees who execute the work.

Using the pilot program model from the previous biennium, it would be beneficial to complete a small-scale implementation for whatever plan is passed this session. Evaluate the pilot so as to understand the full scope of impacts on staff, to assess the outcomes of newly created reporting structures, to evaluate job requirements, and determine if services delivery and goals of efficiency/cost reduction are achieved before dismantling the existing structure completely.

Over the past 10 years Williams County has been innovative in restructuring departments and reimaging roles within County government. We have also learned some difficult lessons and my comments are grounded in those experiences.

There is no shortage of job opportunities for the skills of social services employees. A redesign plan that emphasizes client access and fiscal efficiencies without equal focus on streamlined reporting structures and methodical transition planning will drive trained and experienced people out of these jobs. Training and experience are the cornerstones of success as a Social Worker, Family Services Specialist, Parent Aide or Eligibility Worker. Across the United States, professionals with these skills are in high demand and are actively recruited. North Dakota counties and the State of ND currently struggle to retain and recruit skilled workers in these specialty fields. Any redesign plan requires buyin and cooperation from the affected staff. Over 200 positions are proposed to transition from county to state positions. The current bill appears to create complications in reporting structures and hurries the transition of staff compensation/benefits and team reconfiguration.

In Senate Bill 2 1 24, the role of County Social Services Director is eliminated from each county and is replaced by one Zone Director. Essentially assigning the work of two-or-more people to the new position, with the added obligation of driving between zone offices each week. The Zone Director has been described as a 'leader' and a 'visionary' as opposed to a manager or administrator but I fear the current plan does not provide a foundation for their success. Today, in Counties big and small, Directors are a 'working manager', someone who may have a caseload and see clients; a person who oversees recruitment - a never-ending, time-consuming process involving application reviews, interviews, reference checks and onboarding; they actively collaborate with unit supervisors, State's Attorneys, juvenile services and law enforcement; and they create, implement and monitor budgets.

1

56 � J ';),Lf '-/,4 / 1 4

#u Pj , J. Why not retain the Director role in some form, at least during a multi-year transition period? This ensures a human being is available to complete existing duties and allows the Zone Director to accomplish the 'visionary' challenge of creating a team culture within the newly created zone.

There is a second complication for the Zone Director position. This individual would be a State employee tasked with oversight of staff who are employed by the state multiple counties. In practice this could mean the Zone Director must juggle state HR and compensation policies along with different county benefits programs, payroll procedures and deadlines; and disparate county resources for IT, Facilities and Human Resources within one zone. Discipline is identified to be handled by Zone Director using State HR policies, but in some circumstances the Board of County Commissioners becomes involved in the grievance procedures. Williams County conducts discipline and termination actions through HR processes that provide some shelter from public meeting complications, current wording in the bill would not allow such discretion. Also, Williams County is an at-will employer, a different employment method than used by the State of North Dakota, we do not have a grievance procedure, so this would create a need for training and new processes within atwill Counties.

In its current form, SB 2124 touches on many HR issues but fails to address the methods for implementing this completely new organizational system which will impact the daily lives of hundreds of highly skilled employees. We have seen marginal results in similar, small scale, models currently used to govern County staff working in NDSU Extension offices and regional drug task force officers, usually Police Officers and Sheriff's Deputies, working under the direction of Bureau of Criminal Investigation agents.

To the benefit of staff and management, it would be preferable to have everyone employed a singular agency - the zone. Align policy, benefits, compensation and resources under a common umbrella and build a cohesive team within that structure as has been seen with the Dakota Central structure. The Zone Board appears to be the ideal vessel for centralized leadership, if OHS representatives and County Commissioners served collectively to oversee the Zone Director and thus zone staff.

In the first 5 years of the oil boom, Williams County had to respond quickly to the changes in our community and the economics impacting our employees. As we saw the complexity of casework, caseload numbers and cost of living was driving away experienced staff, we focused on maintaining a generous benefits package and provided sizeable annual pay adjustments to retain staff and recruit additional employees. Even in areas of programming we had to be nimble, for example our social work teams had to make determinations that were unique to North Dakota regarding the suitability of campers for foster homes. We were able to make these adjustments because local leaders serving on the Social Services Board and County Commission, who knew first-hand what was happening in our community, were working directly with our Social Services Director and Human Resources staff to customize our approach.

As written, Senate Bill 2124 significantly dilutes the role of County Commissioners and eliminates the Social Services Board. The newly created Zone Board is advisory only. If the bill were to pass as written, the path for County leaders to have direct impacts on localized decisions or innovation is inadequate.

We are concerned that when putting this plan, as written, into place, it will be disruptive to staff, unreasonably complex for the newly created Zone Director position and formidable in the actual mechanics of implementation, especially in areas of pay and benefits equity. We believe there are

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-Se, � l)lf \/ti /1 Cf

:4t-Lt P1· 3 unforeseen and unrealized costs that accompany the alignment of benefits and compensation within zones and between zones.

North Dakota cannot afford to lose services or access points for the citizens who utilize social services programs, but we also cannot afford to lose the trained and experienced staff carrying out the work today. Without addit ional thought, discussion, and strategy on this bill, we risk a staff exodus due to discontent and uncertainty. We must not allow staff to be stripped of their identity and role within the larger social services and behavior health framework. It is imperative that reporting structures are transparent and effective, that additional controls are actually improving accountability between the state and local agencies, and that we don't diminish, but rather reinforce, to staff that they are the key to successfully delivering services.

Williams County acknowledges the value in exploring the best possible options for how state and county work together and integrate within a state-funded, county delivered social services structure. But we have reviewed SB 2124 and identified many unanswered questions when it comes to basic elements of employment and oversight. On behalf all Social Services staff, we assert that those questions warrant additional discussion and consideration.

Helen Askim Williams County Human Resources Director P .O. Box 2047 206 E. Broadway Wi l l iston, ND 58802-2047 70 1 . 577.4547 he lena@co. wi l l iams. nd . us

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NDLA, S HMS - Velez, J ustin

From: Helen Ask im < [email protected] l l iams.nd .us> Fr iday, J anuary 18 , 2019 6:21 PM Sent:

To:

Cc: Lee, J udy E . NOLA, S HMS - Velez, J usti n; Larsen, O ley L . ; Anderson, J r., Howard C.; Clemens, David ; Hogan, Kathy L.; Roers, Krist in

Subject: SB 2124

Madam Cha i r and Com m ittee Mem bers,

Tha nk you for the opportun ity to testify at the hea r ing for SB2 124 on J anua ry 14th • After l i sten i ng to other testimon ies a nd fu rther reviewing the b i l l I offer, on beha lf of Wi l l i ams County, add it iona l po ints for cons iderat ion .

1 . I n Sect ion 48, on pg. 3 5 , l i n e 7, i t states that human service zone team members " . . . must remain for all purposes an employee of the respective county . . . ". However, ou r understa nd ing from M r. Jones' test imony on 1/14/2019 is that a l l emp loyees with i n a zone would be employed by the cou nty i n wh ich the fisca l agent ( zone office) i s located, s im i l a r to the m u lt icounty d i strict approach . We ask fo r c la rificat ion i n b i l l la nguage re lated to employment methodo logy.

2 . Sect ions 4 9 ( pg . 35 ) , 6 0 ( pg . 47) , 6 8 ( pg . 58) , 77 ( pg . 65) , a n d 1 1 5 ( pg . 9 7 ) c lea rly des ignate 12/31/2019 a s a dead l i ne for Zone creat ion (and by consequence the h i ring of a Zone D i rector a nd e l im inat ion of the Cou nty Socia l Services D i recto r ro le ) , for County Soc ia l Services Boa rds to be d isbanded , and for com p lete budget a uthority to be t ra nsferred from County Boa rds to DHS . However, o u r understand ing from M r. Jones' test imony on 1/14/2019 is that the ro l l -out of SB 2 124 wou ld be incrementa l , poss ib ly over many yea rs . We ask fo r c la rificat ion i n b i l l l a nguage to a l low for the phased imp lementat ion of programming and o rga n i zat iona l cha nges a s p i lots a re conducted a nd specific methods for removing ba rrie rs to effic iency a re identified .

3 . Some la nguage i n SB2 124 confl icts with norma l county operat ing procedu res . I n Sect ion 48, on pg . 35 , L i ne 9, it i s specified that a h uman se rvice zone team member's Boa rd of County Com m iss ioners hand les grievances . Many Count ies operate as at-w i l l emp loyers, wh ich means they do not have gr ieva nce p rocedu res with i n the i r po l ic ies . Cou nty Soc ia l Services staff a re emp loyed under State DHS ju st-ca use employment po l ic ies and DHS Human Resou rces staff p rovide D i rectors with gu ida nce a nd d i rection . Cou nty Comm iss ioners and many County HR practit ioners a re not t ra i ned in the execut ion of grieva nce p rocedu res . A hea r ing of gr ievances by Cou nty Comm iss ioners wou l d requ i re a pub l ic meet ing.

4 . If Zone p l ans a re subm itted i n September 2019, a pproved i n December 2019, and begin i n J anua ry 2020, is there a t ime l i ne for when the Zone D i rector wi l l be h i red and a re they to be pa rt of the zone fo rmu lat ion/imp lementat ion process?

5 . Language support ing the cont inuat ion of p i lot programs, methods of eva l uat ing p i l ots, o r leverag ing the resu lts of comp leted p i lots does not a ppea r in SB 2 124. On-go ing p i lot p rograms were ment ioned a s an importa nt pa rt of th i s tra ns it ion p rocess d u ring M r. Jones' test imony, we support i nc l ud i ng la nguage for p i lot p rogramm i ng i n t h e fi na l b i l l .

Tha n k you -

Helen Askim Director

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H R, Commun ications a nd G IS Wi l l i ams County 701-577-4547

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# / CHAPTER 50-01 . 1

MULTICOUNTY SOCIAL S E RVIC E DISTRICTS

50-01 .1 -01 . Definit ions. As used i n th is chapter, u n less the context or s ubject matter otherwise requ i res : 1 . "Cou nty agency" means the county soc ia l service board . 2 . "State department" means t h e department o f h u ma n services .

s-e 2 , -z 4 " I 2 r;, I ,� -4=1" ( PJ. f

50-01 . 1 -02. Consol idation of county agencies i nto m u lticounty social service districts. I n order to p rovide optimum service, red uce prog ram costs , and benefit recip ients of soc ia l

services with i n th is state , any two or more counties , by ag reement entered i nto th rough act ion of the i r boards of coun ty commiss ioners , may comb ine and conso l idate the i r county agencies i nto a m u lt icoun ty socia l service d i strict in the manner p rovided in th is chapter. M u lt icounty socia l service d i str icts succeed to al l the powers and d ut ies e n u merated for county agencies and sha l l perform a l l t he funct ions and respons ib i l it ies ass ign ed to county agencies by th is t i t le . Whe n cons istent with t h is chapter, a l l provis ions re lati ng t o cou nty agencies conta i ned i n th is t it le app ly to and govern m u lt icou nty soc ia l service d istr icts . The board of county commiss ioners of any county des i ri ng to become a member of a mu lt icounty soc ia l service d istr ict sha l l fi le wi th the state department a written req uest for membersh ip , togethe r with a p lan for the creat ion of such a d i strict , if such a d istrict does not a l ready exist. The p lan must be prepared as p rescribed in sect ion 50-0 1 . 1 -04 . The request must be approved or d isapproved by the state department i n accordance with sect ion 50-0 1 . 1 -03 . I n permitt i ng t h e creation o f such a d i str ict , t h e state department sha l l , to as g reat a deg ree as poss ib le , a l low the conso l idat ion of county agencies i n such a manner a s w i l l conform with the existing pattern o f t h e trade a rea and with a ny reg iona l pattern estab l ished by the executive department of th is state .

50-01 . 1 -02 .1 . F inancial i ncentives for creation of mu lt icounty social service d istricts . The state department, with i n the l im its of leg is lat ive a ppropriat ions and i n accordance with

ru les adopted by the state department , shal l p rovide financia l i ncentives for the creation of mu lt icou nty socia l service d istricts pu rsuant to p lans approved as p rovided in sectio n 50-0 1 . 1 -03 . T h e i ncent ives may b e based u pon ach i eved economies o f sca le , adherence to caseload standa rds for economic assistance a n d social service funct ions , redu ced adm i n istrative costs , specia l ized qua l ificat ions of staff, and qua l ity of services provided . F i nanc ia l i ncentives are l im ited to a s ix-year period a n d must be phased out d uri ng the l ast th ree yea rs of the period . The i ncentives may be extended beyond the s ix-year period , at the d iscret ion of the state department , to promote appropriate expans ion of estab l i shed d i str icts . I n add it ion , the state department sha l l pay for the costs i ncurred by cou nties i n the development of mu lt icou nty socia l service d istr icts , i nc lud ing re lated travel and materia ls costs . The state department sha l l make the payments in re imbursement of the relevant costs u po n approva l of app l ications that comply with requ i rements estab l i shed by rules adopted by the state department .

50-01 . 1 -03 . Manner of determ i nation - Notices - Heari ngs. I n determ in i ng whether the creat ion of a mu lt icounty social service d i str ict shou ld be

approved , the state department sha l l refer to , among othe r pert inent factors , the fo l lowin g : 1 . Whether the affected county agencies a re ab le to supply an adequ ate level and qua l ity

of socia l and economic ass istance services . 2 . The n umber and qua l ificat ions of staff personne l serv ing the affected county agenc ies . 3 . The rat io of the n umber of cases hand led by the affected cou nty agencies to the

n umber of the i r staff personne l . 4 . T h e geograph ical a rea a n d popu lat ion served b y t h e affected cou nty agencies . 5 . The d i stance of rec ip ients from the affected county agencies . 6 . The benefits that wou ld be rea l ized from the creat ion o f t he d istr ict i n terms o f lower

costs , i ncreased ava i lab i l ity of services , new services , and improvement of services .

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I I � g /!Cf #- I f3 · 2 Any county that is den ied approval to become a member of a mu lt icounty socia l serv ice d istr ict

may request a hear ing thereon . The state department sha l l not ify the board of county commiss ioners of the right to appea l . The board has th irty days after rece i pt of the notice to request a heari ng . I f a heari ng is req uested , the state department sha l l ho ld the hearing wit h i n fifteen days after rece i pt o f the request. At the heari ng , evidence may be presented re lative to the creat ion of the proposed mu lt icou nty soc ia l service d istrict . The hear ing must be conducted in accordance with the app l icab le prov is ions of chapter 28-32 .

50-01 . 1 -04. P lan - F inanc ing - D istri bution of property - Govern ing board Compensat ion of members .

1 . A p lan for the creat ion of a m u lt icounty social service d i str ict must describe the method of operat ion of the d istrict office , its adm in istrat ion , its locat ion and the locat ion of any anc i l l a ry offices , the d isbursements from publ ic funds , and the accountab i l ity for funds and manner of report ing receipts and d isbu rsements. The p lan m ust p rovide that a l l serv ices p rov ided by county offic ia ls to county agencies under th is code be provided by those county offic ia ls res id i ng wit h i n the same cou nty in wh ich the d istrict office of the mu lt icounty socia l serv ice d istr ict is located . The p lan m ust also provide for the d i str ibut ion of p roperty owned by each of the cou nty agencies affected by the conso l idat ion and for the method of resolut ion of any d isag reement between the boards of county com miss ioners i nvolved in the mu lt icounty d i str ict or between the govern ing board and one or more boards of county com m iss ioners. The p lan , once approved , m ay be conti nued for a defi n ite term or u nt i l resc inded or termi nated in accordance with i ts terms . The plan a lso may prov ide that the reg iona l d i rector of a reg iona l human service center serves as the d i rector of the mu lt icounty socia l serv ice d i str ict.

2 . T h e govern ing board o f t h e mu lt icounty social service d i st rict a n nua l ly sha l l prepare a p roposed budget for the d istr ict at the t ime and in the manner i n wh ich a county budget is adopted and sha l l subm it the p roposed budget to the board of county commiss ioners of each county i n the d istrict for approva l . The a mount budgeted and approved must be sufficient to defray the anticipated expenses of adm in istrat ion and the de l ivery of socia l and economic assistance services , exc lus ive of g rants , and must be p ro rated among the count ies based on an agreed-to cost d istribut ion formu la that takes i nto cons ideration such factors as caseload , popu lat ion , taxab le valuation , and geograph ical a rea of the res pective counties compri s i ng the d i str ict . With in ten days fo l lowing approva l of the proposed budget by the boards of county commiss ioners , the govern ing board of the d istr ict sha l l cert ify the budget to the respective county aud itors of the cou nt ies in the d istrict, and th is amount must be inc luded in the levies of the cou nt ies . Each board of county commissioners a lso sha l l budget and approve amounts suffic ient to defray that county's ant ic ipated costs of county genera l ass istance and that county's share of g rants as prov ided u nder th is t i t le . The amounts budgeted and approved by the several boards of county commiss ioners must be per iod ical ly deposited with the treasurer of the county in wh ich the d istrict office is located , as requested by the treasu rer, and must be p laced in a special mu lt icounty socia l service d istrict fund . The govern i ng board , or its p res ident and secretary when authorized by the govern i ng board , sha l l aud it a l l c la ims aga inst the fund . The govern ing board at i ts regu la rly schedu led meeti ng sha l l approve or rat ify a l l c la ims aga inst the fund . The county treasurer sha l l pay approved o r ratif ied c la ims from the fu nd . Unexpended funds rema in i ng at the end of a fiscal year may be carried over to the next fiscal year.

3 . The g overn i ng board of a mu lt icounty social service d i str ict cons ists of not more than fifteen members , as determ ined by t he plan . The p l an must estab l ish a method of determ i n i ng the n u m ber of members that wi l l be appoi nted by each county with i n the mu lt icounty socia l serv ice d istrict . The method may cons ider the ratio that each cou nty 's popu lat ion bears to the total population of the m u lt icounty socia l service d i str ict , the rat io of current social service caseload , o r other equ itab le factors ; provided , that each county i ncluded i n the d istrict must be represented by at least one

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board member. The board of county commiss ioners of each county with i n the m u lt icounty socia l service d i strict sha l l make the a ppointments to the govern i ng board . Members must be appointed for a term of th ree years or u nt i l a successor has been appoi nted and qua l ifies . The members appo inted to the i n it ia l govern i ng board of a m u lt icounty d istrict , however, must be appointed to staggered terms determ ined accord i ng to the p lan approved pu rsuant to sect ion 50-0 1 . 1 -03 . Each member of the govern ing board sha l l q ua l ify by taki ng the oath prescribed for civi l officers and by fi l i n g t he oath with t he county aud itor o f t he county o f res idence. Each sex must be fa i rly represented on the board , and each county must be represented on the board by at least one county commiss ioner of that cou nty. Members sha l l e lect from the govern i ng board a p res ident , a secretary, and other officers as t he board determ i nes necessary. The appoint ing authority sha l l estab l ish the rate of compensat ion for members of the govern ing board and actua l expenses i ncu rred by members may be re imbu rsed at the officia l reimbursement rates of the appo int ing authority .

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S B ;i l0i � 1 / -a 8/11

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n o r t h d a k o t a department of human services

Doug Burgum , Governor Chri stopher Jones, Executive Di rector

November 1 4 , 20 1 8

K imberly Jacobson Tra i l l County Socia l Services 1 1 4 West Ca ledon ia Ave PO Box 1 90 H i l lsboro , N D 58045

RE : Agassiz Va l ley Socia l Services D istrict

Dea r Ms . Jacobson :

SB CX /ctLj I /�J I /Cf # o? Pj . /

Lega l Adv isory Unit

(701 ) 328-2 3 1 1 Fax (701 ) 328-2 1 73

Tol l F ree (800) 472-2622 Re lay ND TTY (800) 366-6888

NOV 1 6 201 8 \ TRAILL COUN1Y / \ '>OCIAL SlRVICI '.-, /

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Please fi nd enclosed an approved copy of the Agassiz Va l ley Socia l Services D istrict p lan , a mu lti-county socia l service zone created pursuant to N DCC 50-0 1 . 1 , which has been approved by North Dakota Department of H uman Services Executive Di rector Ch ristopher D . Jones .

S incerely,

� � Jason N isbet , Atto rney Lega l Advisory Un it North Dakota Department of Human Services

600 East Boulevard Avenue Department 325 -- B ismarck , ND 58505-0250 www. nd.gov/dhs

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Agassiz Va l l ey Socia l Services Distr ict

SB 9 J q � I / -afs I ff

#� ,�_;-ct.

The Tra i l l and Stee le County Commiss ions a long with the Tra i l l and Stee le County Soci a l Services

Boards agree to form a mu lt icou nty soc ia l services d i str ict named the Agass iz Va l ley Soci a l Services

District.

Purpose : Th rough development of the Agass i z Va l ley Soci a l Services D istr ict, Tra i l l a n d Stee le

County Soci a l Services wi l l merge, to work as one, to provide qua l ity, effic ient and cost-effective

soc ia l services with the un ited goa l of maki ng a d ifference in the l ives of cit i zens .

Goa l : The Agassiz Va l l ey Socia l Services D istr ict w i l l sha re personne l amongst t he two cou nties to

p rovide an a rray of socia l services to local cit izens de l ivered by tra i ned and knowledgeab le pub l i c

servants . Add it iona l ly, the Agass iz Va l l ey Soci a l Services D i str ict wi l l be led under the d i rect ion of

one County Di rector and Social Servi ces Board to encourage cons istent, effic ient and cost-effect ive

loca l adm in i strat ion and loca l governess . The members of the Agassiz Va l ley Soci a l Services D istr ict

agree that over t ime the co l laborat ion wi l l optim ize service de l ivery and reduce operat iona l and

adm in i strative costs .

Department of Human Services I nvolvement: I n accordance with NDCC 50-01 . 1, Agassiz

Va l ley Socia l Services D istrict wi l l continue to be part of the state supervised/cou nty adm in istered

socia l services system in North Dakota . The North Dakota Department of Human Services wi l l

p rovide p rogram supervis ion, serve as the regu latory agency and p rovide authorized fund ing .

Agass iz Val ley Socia l Services Distr ict, wi l l serve as the lega l des ignee of the North Dakota

Department of Human Services in the p rovis ion of local soci a l services de l ivery. The Agassiz Val ley

Socia l Services Distr ict acknowledges its respons ib i l ity to adhere to the po l ic ies, l aws, and ru l es that

app ly to the p rograms and services adm in istered with the pu rpose of em power ing people, imp roving

l ives, and insp i r ing success.

Upon execut ion, the Agassiz Va l ley Soc ia l Services D istr ict w i l l submit the Agassiz Va l l ey D istr ict

agreement to the North Dakota Department of Human Services for fi n a l approva l . We encou rage

the Department to be supportive of th i s mu lticounty socia l services agreement . The Agass iz Va l l ey

Soci a l Services D istr ict w i l l work with the Department to provid e services i n the d ist rict to ensu re the

p rovis ion of any i ncentives ava i l ab le th rough Chapter 50-01 . 1, Chapter 50-34 and Chapter 57-20 of

the North Dakota Century Code .

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SB g.._ 1 9' L)

i / oli I 1 q

-# 8' 9� - ) Agassiz Va l l ey Soc ia l Services District P lan

Income Maintenance (Economic Assistance) Programs Administered:

Temporary Assi stance for Needy Fami l ies (TANF): Payment to fam i l ies with ch i l d ren under age 18 with the goal of temporar i ly ass ist i ng with fam i ly stab i l ity and work-force deve lopment.

Chi ld Care Assistance Programs: Payments to ass ist e l igib le low- income fami l i es, who a re in approved work or educationa l act ivit ies, with the cost of out of home ch i ld care .

MEDICAID - Medical Assistance Programs : Payment for med ica l re lated services for low- income, e l ig ib le i nd ividuals , ch i l d re n and fam i l i es provided by a variety of federa l and state p rograms under the med ica l ass istance u mbrel l a . Th is i nc l udes but not l im ited to the Affordab le Care Act (ACA) Component of Hea lth Care for med ica l coverage, Ch i l d ren's Specia l Hea lth Services, Medica id , Hea lth Tracks, a nd Basic Care Ass istance Programs .

Supplemental Nutrit ion Assistance Program (SNAP): P rovision of a month ly do l l a r a l lotment used to purchase approved food items via an E lectronic Benefit Transfer Ca rd ( EBT) to help p rovide food secu rity to low income househo lds .

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Low I ncome Home Energy Assistance (LIHEAP): Ass istance to low and moderate i ncome households • with payment of seasona l home heat ing costs; and energy assistance with heating emergencies.

Conti ngent upon authorizat ion by the Governor, a cool ing assistance program may a lso be p rovided du ring the summer coo l i ng season .

Foster care Payments: Payment to fam i ly foster homes, resident ia l treatment fac i l it ies, res ident ia l ch i ld care faci l it i es, a nd relative p lacements for care o f foster ch i l d ren .

Subsidized Adoption Payments: Payments and/or med ica l ass istance m ade to ass ist adoptive fam i l ies with i n it i a l and/o r ongo ing expenses of car ing for specia l needs adoptive ch i l d ren .

Genera l Assistance Program : County adm in i stered and governed programs wh ich provid e ident ified emergency ass istance and for the fina l care and payment of bur ia l expenses of a deceased i nd igent i nd ividua l .

Other: The Agassiz Va l ley Socia l Services D istr ict wi l l a dm i n i ster any other p rograms author ized by the ND Department of Human Services.

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Social Services Programs Administered - Children and Family Services

Chi ld Protection Assessments: The case management system to receive ch i l d p rotect ion conce rn s, co l l ect i nfo rmation to assess those concerns, develop safety p l ans to add ress the safety and we l lbe ing of ch i l d ren and the ir fam i l ies a l ong with refe rra ls for services to he lp address i dentified needs of the ch i ld/fam i ly. The resu lts of a fu l l ch i ld protective services assessment a re presented and subject to a service req u i red/no services requ i red d eterm inat ion by the Regiona l Supervisor/des ignee.

I n-Home Services : A group of fam i ly-centered services provided with the i ntent to increase fam i ly sta b i l ity, strengthen the fami ly un it, p revent out of home p lacement of a ch i ld . I n the event, out of home p lacement of a ch i l d is warranted, services and supports wil l be prov ided to work towa rd reu n ificat ion with parent and ass ist fam i l ies who have been determ i ned to be i n need of ch i ld p rotect ion services through the case management, referra l and related supportive services .

Chi ld Foster Care Case Management: An a rray of case management and custod i a l agent services/d uties rega rd ing the safety and we l l be ing of a ch i l d p l aced outs ide the parental home with the service goa l of parent/ch i ld reun ificat ion o r other identified ch i ld permanency goa l .

Chi ld Care Facil i ty Licensing Assessments : The case management system to receive and p rocess app l icat ions for ch i ld care faci l it ies l icensure or se lf-decla rat ion, comp lete fac i l ity i nspections and unannounced compl i�nce visits, assure comp l i ance, d evelop and mon itor correct ive action p lans and provide/refer for techn ica l a ss istance to support and encou rage the safe care of chi l d ren i n a ch i ld care sett ing .

Foster Care Licensing Studies: The case m anagement system to receive and p rocess app l icat ions for foster care home l icensu re, comp lete foster care home stud i es, assure comp l i ance, and p rovi de/refer for techn ica l ass istance re lated to foster ca re l icens ing standards and service.

Chi ldren's Special Health Services: I nd ivi dua l i zed services to p rovide case management and refe rra l-re lated services to fi nanc ia l l y e l i g i b l e ch i ld ren based on specifi c qua l ifi ed med ica l need .

Other: Al l exist ing services wi l l cont i nue to be p rovided upon i n cept ion of the Agass iz Va l ley Socia l Services D istr ict P l an . I n add ition , the Agass iz Val ley Socia l Services D i strict agrees to adm i n i ste r a l l programs authorized and assigned by t he N D Department o f Human Services to t he Agass iz Va l l ey Socia l Services D istrict .

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50 a 1(7\4 l 1 ��; 1q

� d- �'j . 5 Social Services Programs Administered - Elderly and Disabled Individuals Services:

Home and Community Based Services : Case management services, p lann i ng, assessment of need, determ i nat ion of e l ig i b i l ity for payment for specifica l ly approved c l ient-specif ic services, service and referra l coord i nat ion, and fac i l itat ion of payment for approved services to ass ist e l igi b l e e lder ly and d i sab l ed i nd ividua l s to rema in safe ly wit h i n the i r home commun ity. Th is i nc ludes the p rovis ion of an a rray of fede ra l, state, and county-authorized programs/services to c it i zens th roughout the commun ity service area wh ich i ncl ude adu lt fam i ly foster ca re, fam i ly home ca re, homemaker services, persona l ca re services, and non-med ical transportation and chore services .

Other: Al l exist ing services wi l l conti nue to be provided upon i nception of the Agass iz Va l l ey Soc ia l Services D istr ict P l an . I n add it ion, the Agass iz Va l ley Socia l Serv ices Distr ict agrees to adm in ister a l l p rograms authorized and ass igned by the ND Department of Human Services to the Agass iz Va l ley Soci a l Services D istr ict .

History and Service Impact Benefits

History:

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E ighteen years ago, Tra i l l and Stee le Count ies departed from a soc ia l services join t powers • agreement . The jo int services agreement had previous ly u n ited the cou nt ies under one County Director and a l l owed sharing of personne l between the two cou nt ies . However, two sepa rate socia l service board s/commi ss ions cont inued to each govern operat ions . P r io r to d i sband ing the sha red services agreement, no med iat ion efforts were sought by either county socia l service board or either cou nty com mission . Upon d i ssolut ion, Tra i l l and Steele County Soc ia l Services operated completely separate from one another .

In Ma rch 2018, upon the vo luntary resignat ion of the Stee le County Soci a l Service D i rector the opportu n ity for co l laborat ion aga i n a rose . The Stee le County Di rector's d ut ies i nc luded both adm in i strative and case management dut ies . Upon this posit ion vacancy, Stee le County was unab le to meet the statutory req u i rements for serv ice p rovis ion requ i red of a county soci a l serv ice agency.

Du ring that same time, the Tra i l l County Soc ia l Services had exper ienced a modest reduct ion i n case load a nd had tra ined, exper ienced personne l . I n add it ion, Tra i l l County's o rgan izationa l structure provided program-specific supervis ion i n add it ion to an experi enced County Di rector. Therefore, Stee le County i n it iated contact with Tra i l l County seeking assistance . Th i s partnersh i p began Ma rch 1, 2018.

Based on the s ize of Stee le County case load, add it iona l capacity ava i l ab le with Tra i l l County, and Tra i l l County's organ izationa l structure and joint needs, i t became c lear that a col l aborative agreement was i n the best i nterest of both counties . Th is was further h igh l ighted when both

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cou nties had a reduct ion i n the second 2018 state fu nd i ng form u la payment . Both cou nt ies had less fisca l resou rces ava i l ab le, but yet were req u i red to meet statutory requ i rements . Th i s i ncreased the need to work together i n a cost-effect ive manner to meet commun ity need . This is further h igh l ighted i n the attached "State Formu l a Payment Red uct ion F i sca l I m pact" s ummar ies .

Benefits of Forming a Multi-County Social Services District :

After a brief tri a l basis, it became c lear that th is co l l aborati on benefited both cou nt ies i n many ways. It was agreed that th rough form ing a mu lt icounty soci a l service d i strict it wou ld best so l id ify, com mit, a n d support co l laborat ion to a long-term pa rtnersh i p wh i le improvi ng fi sca l efficiency a nd service de l ivery.

Imp roved cost efficiency examp les inc lude : • Both counties now provide county socia l service operat ions unde r th e l eadersh i p of one

County Director. Th is saves one fu l l admin i strator sa lary and benefits costs a long with travel expend itures.

• The Tra i l l County D i rector has been ab le to imp l ement a va riety of fisca l a ccountab i l ity improvements, addressed b i l l i ng/c la ims issues, and has p rovided leadersh ip to Stee le County on effective p rogram and fisca l operations .

• Exi st ing Tra i l l County case manager personne l h ave assu med the case management d ut ies that were p reviously he ld by the Stee le County D i rector. This has a l lowed continuation of service, by subject matter experts, without fi l l i ng a vacant FTE .

• By having exist ing personne l assume dut ies, there i s the e l im i n at ion of the i nvestment i n train ing and related travel often req u i red o f new emp loyees .

• Through partnersh ip with Tra i l l County, Stee le Cou nty has been ab le to d iversify revenue sou rces inc lud ing b i l l ing Med ica id for services rende red . Th is i s poss ib le through the tra i n i ng and certificat ion received by Tra i l l County personne l and those same personne l be i ng ab le to provide services to Steele County. I n add it ion, Tra i l l County was ab l e to incl ude Stee le County in the i r Medica id Agency QSP cert ificat ion . Stee le County had p revious ly not he ld these credent ia ls . Th is leads to an increase i n fund ing, ensures cont inuation of service p rovis ion, provides flex ib i l ity i n meeti ng loca l n eeds, wh i l e expan d ing services wh i le uti l i z i ng exist i ng tra i ned personne l and credenti a l ing .

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Th rough the formation of a mu lt icounty d i str ict, the socia l serv ice board w i l l cons i st of s ix i nd iv idua l s . Cu rrently, there a re a tota l of twe lve board members . Conso l i dat ion i nto one gove rn ing board represent ing both count ies wi l l resu lt in lower governance costs and improved use of admin istrative t ime/resou rces ded icated to board operat ions . Th rough formation of a mu lt icounty d istr ict, a l l fi sca l management, accounts payab l e, accounts rece ivable, and aud its wi l l be un ified unde r one fi sca l agent . Th is w i l l p romote effic iency and costs savi ngs not on ly for soci a l serv ices, but for the Cou nty Aud itor, County Treasu rer, and related other cou nty officia l s . Th i s wi l l a lso promote effic ienc ies for state personne l performing various aud it d ut ies .

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I n creased ava i l a b i l ity of service/new services i nclude : • • Subject matter experts prov ide case management services to cit i zens i n both count ies . Th i s

h a s imp roved program comp l i a nce a long with t ime ly and pert i n ent service de l ivery benefitt i ng local cit i zens . Pr ior to th i s col la borat ion, these services were unava i l ab l e to Stee le County res idents duri ng the t imes the County D i rector was out of the offi ce or on leave . S ince the co l l aborat ion , case management services are ava i l ab le on a d a i ly bas is with back-up coverage duri ng t imes of emp loyee absence.

• A l l pe rsonne l of both cou nties have access to subject matter expert supervisors . Th i s he lps i n fosteri ng good dec is ion maki ng, accu rate and t ime ly services, p romotes accountab i l ity, reduces legal risk, and improves customer service .

• Expanded HCBS service p rovis ion has occurred th rough col laborat ion . E lderly and d isab led cl i ents of both cou nt ies are now ab le to access the fu l l a rray of services ava i l ab l e th rough coun ty, state and federa l HCBS p rograms . Pr ior to the co l laboration, Steele County d i d not have a n approved agency QSP status with North Dakota Medica id and d id not partic ipate i n mandatory state a nd fed era l home a n d commun ity based services . S ince the col l aborat ion, Tra i l l County Socia l Services added Steele County a s a service area as we l l as i n clus ion of Stee le County d irect care personne l to Tra i l l Cou nty's Agency QSP agreement . Th i s agreem ent has been reviewed and app roved by N D OHS a l lowing p rogram access to the ent i re service a rea . Th i s resu lts i n Stee le County res idents be i ng ab le to participate i n fed era l a nd state home a nd commun ity based services, ut i l i ze Med ica id to pay for those services wh i le ut i l i z ing l oca l county soci a l service personnel to p rovide d i rect service that meet Med icaid qua l ificat ions a nd requ i rements .

• Through the col laboration , improvements have been achi eved in the del ivery of county based • H CBS programs. Th i s i nc l udes the add it ion of exception requests for e lderly/d i sab led i n d iv idua ls n eed i ng assistance who may otherwise have not rece ived crit ica l services.

• Ent i re service area n ow has access to the Youthworks contract for she lter care services . P rior to th i s co l l aboration, Stee le County d i d not have access to these services .

Imp roved services inc lude : • Stee le County personne l ass ist Tra i l l County c l ients with the p rov1s 1on of home and

commun ity based d i rect ca re services . Th i s has resu lted in e l im inat ion o f a wa it i n g l ist for service and capab i l ity to more q u ickly respond to an e lderly i nd iv idua l s chang ing level of n eed for service as the i r hea lth/supports deteriorate.

• Tra i l l Cou nty personne l p rovi de ch i ld welfa re and HCBS case man agement services to the c i t i zens of Stee le County. These tra ined, subject matter experts have improved the cons i stency of service provis ion throughout the service a rea . Th i s has resulted i n s ign ifica nt imp rovem ent i n response t ime, improved comp let ion of t ime ly assessments, imp roved p rogram compl i ance, and i ncreased services/referra ls to c l i ents .

• Together, Stee le and Tra i l l Counties a re manag ing a comb ined economic ass ista n ce case load ensuri ng manageab le case load s ize fo r team members resu lt ing i n more t ime ly and accu rate benefit determ inat ion .

• Improved adm in istrative services i nc lud ing the uti l i z at ion of a tol l-free number to serve both count ies has been i mp lemented . Tel ephone commun icat ion systems have been u n ified to ensure ca l le rs a re d i rected to the team member best sk i l led to assist .

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#=--- � r; -·8 • I ncreased ava i l ab i l ity and cons istency of emergency on-ca l l services by a tra i ned team of

profess iona ls fo r the service a rea . • Part ic i pat ion of both count ies i n the socia l service redes ign p i l ot p rojects focus i ng on

stream l i n i ng services and imp rovi ng c l ient outcomes .

Agency Personnel

Genera l Provisions (Al l Programs):

The col l a borat ion between Steele County Soci a l Services and Tra i l l County Socia l Services has a l lowed the dut ies of severa l vacant pos it ions be rea l located to exist i ng pe rsonne l . Th is h as e l im i nated the need to fi l l the vacancies and has a l lowed the tran sfer of im pacted cases/dut ies to be reass igned to a tra ined, subject matter expert.

For examp le, the Steele County Soci a l Services Di rector posit ion i nc l uded both adm in i strative and case management duties . The admin i strative d ut ies have been de l egated to the Tra i l l County Socia l Service D i rector. The case management dut ies were absorbed by Tra i l l County Soc ia l Services case managers. Th is was feas i b le due to the s ize of caseload, the expe rt i se of exist ing personne l , and o rgan izat iona l restructur ing .

I n the approved 2018 budget, Tra i l l County h ad p roposed and add it i ona l E l igi b i l ity Worker I pos it ion . F i l l i ng this posit ion was not warranted due to add it iona l capac ity ga i n ed th rough the col l aborat ion between the two counties . Through imp roved and d ivers ified case load ass ignment, u n ified supervision, and case load changes, c l ient n eeds are m et through ex ist i ng workforce without the need to add a n add it iona l economic a ss i stance pos it ion.

Specifica l ly, s i nce the partnersh ip began the fo l lowi ng pos it ions have not been fi l l ed desp ite the ava i l ab i l ity of appropr iat ions to fi l l the vacancy.

Pos it ion Number Pos it ion Tit l e 46-00-6072 Stee le County D i rector 49-00-5629 E l ig ib i l i ty Worker I

Vacated Ma rch 1, 2018 Approp r iated for 2018 but not fi l l ed

Refe r to the attached Emp loyee Summary for a l i st ing of posit ion s funded through Stee le County Soc ia l Services and Tra i l l County Soc ia l Services p rior to the col l abo rat ion and the p roposed Agass iz Va l ley Socia l Services Distr ict . Without co l l aborat ion , the tota l socia l se rvice emp loyees of Tra i l l a nd Stee le Counties equa led 2 1 FTEs . S ince the co l l a borat ion , the tota l emp loyees h ave been reduced to 19 FTEs.

Based on current case loads and volu nta ry red uct ion in personne l , the Agass iz Va l ley Socia l Services D i str ict does not intend at this t ime to reduce ou r work staff by a reduct ion in force . To ensu re that n ecessa ry staff reductions wi l l be made i nsofa r as reason ab ly poss i b l e when an emp loyee ret i res o r l eaves the i r emp loyment i n Agass i z Val ley Socia l Services D istr ict, t he Cou nty D i rector with the

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consu ltat ion of the supervisor/lead worker wi l l explore the opt ions of fi l l i ng the posit ion , fi l l i ng the . posit ion part t ime or assign ing the work load to other emp loyees and p resent such recommendat ions to the Agassiz Va l ley Socia l Services D istr ict Board . I n add it ion, the Agass i z Va l ley Soci a l Servi ces D istrict wi l l fo l low the case load/work flow gu ide l i nes recom mended by the No rth Da kota Depa rtment of Human Services in order to ensu re appropr iate, consistent, and time ly responsiveness to cit i zen needs . I f a reduct ion in force becomes necessa ry, cons istent with N DAC 75-07-01-02(5 ) d isp laced staff persons wi l l be afforded an opportun ity to transfer to ava i l ab le pos it ions with i n offices operated by the d istr ict .

I ncome Maintenance (Economic Assistance) Team: Tra i l l a nd Stee le Cou nt ies col l ect ively emp loy one ( 1 ) fu l l -t ime Lead E l igi b i l ity Worker who also performs supervisory d ut ies, fou r (4) fu l l t ime E l igib i l ity Workers, one ( 1 ) fu l l-t ime E l igib i l ity Techn ic ian and one ( 1 ) fu l l-t ime Human Service A ide .

At the t ime of i nception of th i s agreement, Tra i l l County emp loys one (1 ) Lead E l igib i l ity Worker, th ree (3 ) E l ig ib i l ity Workers, a nd one ( 1 ) E l igi b i l ity Techn ic ian . Stee le County cu rrently employs one ( 1 ) fu l l-t ime E l igib i l ity Worker i n add it ion to one (1 ) fu l l -t ime Human Service A i de who performs some i ncome ma i ntenance d ut ies a long with othe r agency-related duties . Th rough t h i s col l aborative, a l l d i str ict e l igib i l ity workers wi l l h ave access to p rogram-specific supervis ion and oversight by a tra i ned e l igib i l ity p rofess ion a l t hat wi l l he lp strengthen the work team, increase consistency, mon itor/gu ide case ass ignment a nd oversee the p rofess iona l d eve lopment of the team .

Al l Agassiz Val l ey Soc ia l Services District income ma intenance personne l m eet o r exceed the •

requ i rements for e l igib i l ity workers for h is/he r defined position as set forth by the North Dakota Merit System for classified employees. A l l current income ma intenance personne l have attended app l i cab le n ew worker t ra in ing and conti nue to attend state sponsored t ra i n i ng related to the programs assigned .

Any new Agassiz Va l ley Soci a l Services D istrict income ma intenance personne l w i l l meet or exceed the m i n imum qua l ificat ions of h is/her ass igned posit ion estab l i shed by the North Dakota Me rit System c lassification requ i rements. In add it ion, new i ncome ma intenance personne l wi l l attend app l icab le new worker tra i n ing and other program specific tra in i ng as determined app ropriate and n ecessary to ensure competency i n the p rovis ion o f service.

Exist ing Agass iz Va l ley Socia l Services D istr ict personne l wi l l be expected and e ncou raged to conti n ue the i r p rofess iona l d evelopment in order to enha nce ski l l , encou rage i nnovat ion, and to promote com petence in the app l icatio n of po l icy, law and rule app l icab le to the ass igned dut ies i n order to p rovide qua l ity services to cit i zens .

Social Services Teams: The Agass iz Va l l ey Socia l Services District Soc ia l Services Team cons ists of two work teams : Children and Family Services and Adult Services.

Children and Family Services Team: The Agassiz Va l ley Socia l Services D istri ct Ch i l d ren and Fam i ly Services Team cons ists of : one (1 ) fu l l -t ime Human Service Program Admin i strator (HSPA) I l l who •

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# a p5- ld provides supervisory d uties to the work team a long with provid i ng ch i ld -we lfa re case m anagement services and th ree (3 ) F am i ly Service Speci a l i st I l l team mem bers that provide ch i ld -we lfa re case management services .

As of March 1, 2018, Tra i l l County Soci a l Services has provided a l l Ch i l d ren and Fam i ly (ch i l d-welfa re case management re lated ) Services to both Tra i l l a nd Stee le Cou nt ies . The fou r (4) Agass iz Va l ley Soc ia l Services Distr ict Ch i l d ren and Fam i ly Serv ices team each or ig in ated h is/her em ployment with Tra i l l County Soci a l Services . Without th i s co l l a borative, Stee le County Socia l Services did not h ave any qua l ified person ne l to provi de ch i l d welfare services.

Each of the Agass iz Va l l ey Soc ia l Service D istrict Ch i l d ren and Fam i ly Services team m embers meet or exceed the m i n imum qua lifi cat ions for h is/her ass igned posit ion set forth by the North Dakota Merit System for c lass i fied emp loyees. Cu rrently a l l fou r Agass iz Va l ley Socia l Services D i str ict ch i l d welfa re case managers a re l icensed by the North Dakota Boa rd of Soc ia l Worker Exam ine rs with e ither LSW ( l icensed soci a l worker ) or LCSW ( l icensed c l i n ica l soci a l worker) credent ia l s .

The Agassiz Va l l ey Socia l Services Distr ict Ch i ld ren and Fam i ly Services case managers (HSPA I l l and F am i ly Service Specia l ist I l l ) are mandated to comp lete ch i l d welfare certificat ion t ra i n ing with in the i r fi rst year of employment and to ma inta i n certificat ion thereafter . Three of the fou r cu rrent Ch i l d ren and Fam i ly Services team members have successfu l ly com p leted in i t ia l c h i l d-welfa re certifi cat ion and h ave ma i nta ined certificat ion through conti nu i ng educat ion req u i rements . One employee was recently emp loyed a nd i s a nticipated to comp lete i n it i a l certificat ion tra i n i ng by October 2018 wh i ch is with in the fi rst year of employment .

Adult Services Team: The Agass iz Va l ley Socia l Services D i str ict Adu lt Services Team cons i sts of: One (1 ) fu l l-t ime Socia l Worker I I who provides supervis ion to the d i rect care team members and a lso provides and home and commun ity based case m anagement services ( HCBS) . In add it ion , a d i rect care service team consist ing of five (5 ) D i rect Care Associates, a nd one ( 1 ) Human Serv ice A ide complete the work u n it .

I n addit ion, as of Ma rch 1, 2018, Tra i l l County Soc ia l Services has p rovided a l l Adu lt Services case management services to both Tra i l l a nd Stee le Count ies . The Agass iz Va l ley Socia l Services D istr ict emp loys one ( 1 ) Socia l Worker I I to perform case management services for the service comm u n ity. Th is emp loyee's emp loyment or ig in ated from Tra i l l County Soc ia l Services. Without t h is co l laborative, Stee le County Soc i a l Services d id not have any qua l ified personne l to prov ide HCBS case management services. I n add it ion , fou r (4) of the D i rect Care Spec ia l i sts with i n the Agass iz Va l l ey Socia l Services D istr ict or ig in ated the i r employment with Tra i l l County Soci a l Services. One ( 1 ) D i rect Care Spec ia l ist and one ( 1 ) Human Service A i de ass igned to t he Agass i z Va l l ey Socia l Services D istr ict Adu lt Services team stem h is/he r emp loyment from Stee le County Social Services.

The cu rrent Agass i z Va l l ey Soc i a l Services D ist rict HCBS Soc ia l Worker I I meets or exceeds the m in imum qua l ificat ions for her ass igned posit ion set forth by the North Dakota Merit System for c lassified employees . Th is team member i s currently l icen sed by the North Dakota Board of Socia l Worker Exam ine rs and possesses LSW ( l icensed socia l worker) credenti a ls . F u rthe rmore, the cu rrent

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#-o-- }1 I I Socia l Worker I I has comp l eted n ew worker t ra i n i ng and comp letes a n n u a l mandated p rogram- • specific tra i n i ng.

A l l five ( 5 ) Agass iz Va l ley Soci a l Services D istr ict Direct Care Associates and the one ( 1 ) H u m a n Service A ide meets o r exceeds the m i n imum qua l if icat ions of h i s/her pos it ion set forth by t he North Dakota M erit System for c l ass ified emp loyees.

Any new Agass iz Va l l ey Soci a l Services D istr ict personne l h i red to serve i n e ither the Ch i l d ren and Fam i ly Services o r Ad u lt Services teams wi l l meet o r exceed the m i n imum qua l i ficat ions of the Merit System for c lassif ied pos it i ons for which pos it ion they were h i red . Team members wi l l receive i n it ia l a n d ongo ing t ra i n i ng for the d ut ies t hey a re ass igned .

Ex ist i ng pe rsonne l wi l l be expected to cont in u e the i r p rofess i ona l deve lopment i n o rder to e n hance ski l l, encou rage i n novat ion , a nd p romote competence i n the appl icat ion of po l i cy, l aw a n d ru le a pp l i cab le to the ass igned du ties i n order to p rovide qua l ity services to cit izens .

Administration and Support Team: The Agassiz Va l ley Socia l Serv ices D ist r i ct counties cu rrent ly emp loy one (1) fu l l -t ime Ad min i st rative Assistant I a n d one (1) fu l l-t ime County D i rector I l l .

The current Agass iz Va l ley Soci a l Services D ist rict Adm i n istrative Assistant I m eets o r exceeds the requ i rements of her respective pos it ion w i th in the North Dakota Merit System for c lass ified emp loyees. Th is team member orig i n ated e m p loyment with Tra i l l County Socia l Services .

The curren t County D i rector of t he Agass iz Va l l ey Soci a l Services D ist ri ct was i n it i a l l y h i red by Tra i l l •

County Socia l Services Board . Th is em p loyee has served as the Tra i l l County Soci a l Services D i rector s i n ce 2005. As of M a rch 1, 2018, t he Tra i l l County Socia l Services D i rector has p rovi ded a l l County D i rector d uties to both Tra i l l a nd Steele Coun ty Soci a l Services. Without th i s col laborat ive, Stee le County Soci a l Services does not employ any q ua l if ied personne l to fi l l t he Coun ty D i rector pos it i on . The cu rrent County D i rector meets o r exceeds a l l m i n imum q ua l ificat ions of the app l i cab le County D i rector I l l c l ass ificat ion , d efi n ed with i n the N orth Dakota M erit Systems for c l ass ified emp l oyees, a n d has met a l l requ i rements t h rough her ent i re emp loyment h i story.

Any new Agassiz Va l ley Soci a l Services Distri ct Adm i n istrat ion a nd/or Support personne l w i l l meet or exceed the m i n i m u m qua l i fi cat ions set forth by the North Da kota Meri t System for c l a ss ified emp loyees for the pos it ion they were h i red . New emp loyees wi l l attend i n it i a l and ongo i ng t ra i n i ng for t h e d ut ies they a re ass igned .

Ex ist i n g Agass iz Va l l ey Soc ia l Serv ices D i str ict personne l wi l l be expected to conti nue the i r p rofess io n a l d evelopment i n o rder to enhance sk i l l , encou rage i nnovat ion , a nd to promote competence in the app l i cat ion of l aw, po l i cy, and ru le app l i cab le to assigned dut ies in orde r to p rovide qu a l ity servi ces to c it izens .

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ff I � · /;) Service Popu lation : The Agassiz Va l l ey Soc ia l Services D istri ct i nc l udes Tra i l l and Stee le Count ies located i n east centra l North Dakota . The service a rea encompasses 1,576 square mi les .

The Agassiz Va l ley Soc ia l Services D istr ict's comb ined popu lat ion equa l s 10, 205. I n wh ich , Tra i l l Cou nty's popu lat ion equa l s 8, 245 and Stee le County's popu lat ion equa ls 1,960. Th i s equates approximately 6 .5 persons per square m i l e .

Income Maintenance Caseload

Based on February 2018 caseload data - last month where Traill and Steele Counties operated completely separately

Program Tra i l l County Steele County Tota ls

SNAP 196 33 229 TAN F 5 0 5 Med ica l 809 179 988 Foster Care 19 1 20 Ch i l d Care Ass istance 19 3 22 LI HEAP N/A N/A N/A

Tota l 1048 2 16 1264

Based on 2017 Annual caseload (used for formula payment purposes) - of note, HCBS case management statistics are considered with the Medicaid numbers.

Program Trai l l County Steele County Tota l Prior to col laboration : P rior to col laboration : With col laboration : 1 Lead Worker 1 El ig ib i l i ty Worker I 1 Lead Worker 3 E l ig ib i l ity Worker I Ass istance from Human 4 E l ig ib i l ity Worker I 1 E l igibi l ity Technic ian Service Aide I I ( . 5 FTE ) 1 E l ig ib i l ity Techn ician 1 addit ional E l igib i l ity HCBS Case Manager M in ima l Assistance Worker I (proposed) ( .33 FTE ) + 1 .5 d i rect from Human Service 1 HCBS Case Manager + 4 service staff Aide I I ( .25 FTE ) d i rect ca re staff 1 HCBS Case Manager +

5 .5 d i rect care staff

Tota l : 1 1 FTEs Tota l : 3 . 33 FTEs Tota l : 12 .75 FTE SNAP 2572 342 2914 TAN F 47 0 47 M ed ica l 9680 2172 1 1852 Foster Care 223 14 237 Ch i ld Care Ass istance 2 19 39 258 LI H EAP 257 63 320 Total 12998 2630 15628

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Staffing Statistics and Patterns - Income Maintenance Team: The Agassiz Va l ley Soci a l Services D istr ict has five (5 ) e l i gi b i l ity workers to work the monthly caseload wh ich i nc l udes a Lead Worker . Add it iona l i ncome ma intenance support is provided by an E l igi b i l ity Tech n ic ian and a H u man Serv ice Aide .

It is est imated that the case load wi l l rema i n s im i lar once the Agass iz Va l l ey Soci a l Services D ist rict i s fo rmed . Agass iz Va l ley Soc ia l Services D istr ict has reviewed total case load numbers and has determ ined that case load numbers, as a who le, ab ide by recommended case loads/workflow l evels . However, with the imp lementat ion of the d istrict, cases wi l l be assigned based on comm un ity n eed, expert ise, qua l ity service cons iderations and other factors .

Socia l Services Caseload

Based on Februa ry 2018 caseload data -last month where Traill and Steele Counties operated completely separately

Program Trai l l County Steele County Total

Ch i l d Protect ion 1 0 1 Assessment/Referra l s Ch i l d Abuse and 1 4 5 Neglect Foster Care Case 19 1 20 Management Fam i ly Preservat ion 8 0 8 Ea r ly Ch i ld Care 15 3 18

L icens ing Foster Care L icens ing 0 0 0 Subs id ized Adopt ion 8 1 9 Tota l 52 9 61

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4 c9 n- 14 Based on 2017 Annual Caseload (used for formula payment purposes) - of note, HCBS case management statistics are considered with the Med ica id numbers.

Program Tra i l l County Stee le County Tota l Prior to col laborat ion Pr ior to col l aboration S ince co l l aboration

1 HSPA I l l County Di rector/Case 1 HSPA I l l 3 Family Service Spec ia l ist Manager .33 FTE 3 Fami ly Service

I l l Speci a l i st I l l

Tota l : 4 FTE Total FTE : .33 FTE Tota l : 4 FTE

Ch i l d Protect ion 24 2 26 Assessment/Refe rra ls Ch i l d Abuse and 80 0 80 N eglect Foster Ca re Case 223 14 237 Management Fam i ly P reservat ion 125 6 13 1

Ear ly Ch i ld Ca re 205 36 241

Licens ing Foster Care Licensing 8 0 8 Subsidized Adoption 29 5 34

Tota l 694 63 757

Staffing Statistics and Patterns - Socia l Services Teams:

Children and Family Services Team: The HSPA I l l supervises the Ch i l d ren and Fami ly Services Team and a lso ma inta i n s a modest caseload . I n add it ion, there a re three ( 3 ) Fam i ly Service Specia l i sts who p rovide ch i l d -welfare case management services to the Agass iz Val ley Socia l Services D istr ict service commun ity.

Adult Services Team: The Socia l Worker I I supervises the D i rect Care and Human Service A ide team member i n add it ion to perform i ng a l l HCBS case management d ut ies for the service com m un ity. Col lective ly, there a re five (5) D i rect Care Associates and one ( 1 ) Human Se rvice Aide who p rovide i n-home services to the e lderly and d isab led th roughout the Agassiz Va l ley Soci a l Services D i str ict service commun ity.

It is est imated that the socia l service case load may i ncrease when the Agass iz Va l l ey Socia l Services D istr ict i s formed due to expanded service provis ion to Stee le Cou nty in both the ch i ld we lfa re and adu lt services u n its . As of June 5, 2018, the Stee l e County Soci a l Services Board voted to p rovid e home and com mun ity based services by uti l i z i ng a l l ava i l ab l e p rogram types inc lud ing state, fede ral

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:tt- 3-- ?J · I 5 and county based programs . With th is change, a l l cit i zens receivi ng HCBS servi ces i n Stee le County • wi l l be entered into the state reporti ng system. Th is wi l l l i ke ly lead to an i n crease i n reportab le case load and i n creased service p rovi s ion to the service com mun ity. I n add it ion, pr ior pract ice i n Stee le County resu lted in de lay assessment and fi na l izat ion of ch i ld p rotect ion reports . S ince the inception of th is co l l a boratio n, ch i ld protect ion reports have been hand led t imely and wi l l continue to be done i n a t imely manner. Recent case activity patterns i nd icate a l i kely i ncrease i n overa l l ch i l d welfare services with the de l ivery of consistent and t imely ch i ld protective services, i n home services, and re lated fam i ly support services. The conclus ion of these factors i nd icate more a ccu rate case reportin g, i ntervention a nd service w i l l be an outcome of the co l l aborative.

Agass iz Va l l ey Socia l Services D i str ict has reviewed the tota l soci a l service (both Ch i l d ren and Fam i ly Services and Adu lt Services) case loads n umbers and has determ ined that overa l l case load i s with i n the h igher parameters of case load recom mendations and workflow. Case load/work flow wi l l continue to be closely mon itored . I f in creases cont inue an add it iona l case manager pos it ion may be requested . The 2019 Agass iz Va l l ey Socia l Services D i str ict budget (attached) conta i n s fu nd i ng flex ib i l ity to add an add it iona l case manager position if warranted . However, it is recogn i zed that the Department of Human Services is engaged in a socia l service redesign p rocess. Th i s work wi l l l i kely resu lt i n changes i n case assignm ent, d uty, etc. These cons i derat ions wi l l a lso i n fl uence any decis ions regard ing add itiona l FTEs .

Distance to services : The Agass iz Va l ley Social Services Distr ict w i l l ma i nta i n offices i n H i l l sboro and F in ley, North Dakota to support cit i zens in access ing loca l socia l services. Staffi ng wil l be

• m anaged and assigned i n order to provide efficient, qua l ity and effective services to citizen s throughout t h e service commun ity. A tol l free number wi l l be m a inta ined for citizen use .

Agass iz Val ley Socia l Services D i str ict i s i n the process of identifying ways that techno logy can be further ut i l i zed to enhance commun ications between office locat ions, team members, and cit izens with the goa l of provid ing streaml ined qua l ity services.

Current ly, each Agassiz Va l ley Socia l Services office location receives on l i ne appl icatio n s for i ncome ma intenance cases. Each county a lso ut i l izes F i l eNet and I L I NX for e lectron i c e l igi b i l ity fi l e recordkeep ing and casework. The on l i ne systems a l low access to program reco rds by qua lified person ne l l ocated in a l l office locations .

Ch i ld welfa re records a re ma inta ined in the state on l i ne system ( FRAME) a nd can be accessed by qua l ified personne l at various office locat ions and in remote sett ings .

HCBS c l ient records wi l l be ma i nta i ned in the state on l i ne system {SAMS/H a rmony) wh ich a l so promotes accessi b i l ity by qua l ifi ed personne l i n a variety of settings .

In add it ion , Tra i l l and Steele Cou nties are ass igned with in the same jud ic ia l d i str ict and h ave the same States' Attorney which supports effic iency and access to t imely and appropri ate loca l court-related and lega l services.

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Qual ity of Services : The Agass iz Va l ley Socia l Services D istr ict w i l l be ab le to provid e a h igh qua l ity of service to the citizens of the d i strict . Personne l w i l l be tra i n ed to max imize experience, t ra i n i n g, a nd knowledge and work wi l l be ass igned to p romote effic iency, expertise, and service to cit i zens . Supervis ion/support wi l l be prov ided to tea m mem bers . I n add it ion , case coverage wi l l be provided d u ri ng t imes of employee absence i n order to support t ime ly services to citi zens . As needed , personne l wi l l travel to meet the needs of cit i zens and to perform ass igned d ut ies .

A 24/7 cr is is emergency number is ava i l ab l e fo r c i t i zens need ing ass istance, o n an emergent bas i s . The cr is is services i n clude : exped ited SNAP and emergency ch i l d we lfare services . Des ignated a nd t ra ined personne l wi l l rotate on-ca l l duties t o receive and respond t o emergency s ituat ions . I n add it ion, statewide central ized i ntake services wi l l be ava i l ab l e for t h e reporti ng o f concerns re l ated to vu lnerab le adu lts.

Fiscal Advantages/Disadvantages in the Formation of the Proposed Multi-County Social Service District and Fiscal Responsibility:

F isca l Advantage/Disadvantage Ana lysis : The fol lowing summarizes the fisca l im pact of operat ing two separate county soci a l serv ice u n its vs . comb in i ng into one, u n ifi ed u n it in 2019.

The projected revenue and expenses for 2019 is forecasted as fo l l ows:

Tra i l l County Stee le County Combined D istrict Net Total Benefit

2019 Total $ 1,439,707 $364,506 $ 1,804,213 $ 1,854,713 $50,500 Revenue ( i n cl ud i ng reserves ) 2019 Tota l $1,405, 101 $3 18,523 $ 1,723,624 $ 1,625,715 $97,909 Expenses Difference $ 34,606 $ 45,983 $ 80,589 $ 228,998 $148,409*

* n et benefit revenue over expen ses when compar ing d ifferent organ izationa l mode l s .

For deta i l s refer to the attached 2019 Budgeta ry Comparison S ummary wh ich p rovides a deta i l ed breakdown of revenue and expenses for Tra i l l County, Stee le County, a nd the proposed Agass iz Va l l ey Socia l Services D i strict .

The c lear conc lus ion is that the mu lti-county d istr ict resu lts i n i n creased revenue and lower overa l l operationa l costs when compared to operat i ng separate un its du ri ng the same period . Furthermore, the d i strict budgeta ry scenario a l lows for flex i b i l ity for com pensat ion fo r one add it iona l sa l a ry and benefits package. Th i s i s critical i f a n add it ion a l posit ion i s warranted i n order to meet c l ient need .

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* d- P1 NI F isca l Responsib i l ity Ana lysis : To dete rmine equ itab le fisca l respons ib i l i ty for Agass i z Va l l ey • Soci a l Services D i str ict, tota l 2019 p rojected revenue (wh ich is p rima r i ly based on case load a n d h istor ica l spend i ng) and popu l at ion of each cou nty was cons idered .

County Percentages of Tota l Est imated Revenue : Tra i l l County: 80% Stee le County: 20%

Population Data Tra i l l County: Stee l e County: Tota l :

8,245 1,960

10,205

County Percentages of Total Population : Tra i l l Cou nty: 80% Stee le County: 20%

Fisca l Responsib i l ity Conclusion: Based on these factors, the fi scal respons ib i l ity percentage for each county i s ca l cu l ated at :

Traill County: Steele County:

80% 20%

For h istorica l reference, the 2018 est imated taxable va luat ions for each county inc ludes : Tra i l l County: $54,354,872 wh ich equals $54,354.87 /m i l l Stee le Cou nty: $29,824,967 which equa ls $29,824.97 /mi l l

Agassiz Valley Social Services District Office:

Location : The Agass i z Va l l ey Soci a l Services D istr ict w i l l h ouse the d i str ict office i n H i l l sboro, Tra i l l Cou nty, North Da kota . The phys ica l a nd ma i l i ng add ress for the d istr ict office i s : 1 14 West Ca ledon i a Ave n u e, PO Box 190, H i l l sboro, N D 58045 . Furthermore, there i s add it i ona l office space for Agassiz Va l l ey Socia l Services D istr ict in H i l l s boro , North Dakota located at 2 12 West Ca ledon i a Avenue . An a nc i l l a ry offi ce i s in F i n l ey, Stee le County, North Da kota . The p hys ica l a dd ress fo r the anc i l l a ry office is : 201 Wash ington Avenue West, F i n l ey, North Dakota 58230.

The Agassiz Va l ley Soc i a l Services D i st r i ct d oes not intend to red uce office l ocations but rather to p rovi de access po ints fo r cit i zens to obta i n loca l services.

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ff di fJ- /� Other County Services and Relationship to the District : Cons istent with N DCC 50-01 . 1-04, a l l services provided by county offi c i a l s to cou nty agenc ies wi l l be prov ided by those cou nty offic ia ls located with in the same cou nty i n wh ich the d i str ict office of the mu lticounty socia l serv ices d i str ict is des ignated .

Admin istration, Fisca l Operations and Management : Th e adm in istrat ion, fisca l operat ions and management of the Agassiz Val ley Socia l Services Distr ict wi l l be de l ivered through the d i str ict office. The structu re of admin i strat ion and management wi l l fo l low the attached organizational chart.

Cons istent with N DCC 50-01 . 1-04, the Agass iz Va l l ey Soci a l Services D istr ict w i l l uti l i ze the Aud itor and Treasurer's offices of Tra i l l County to make and record d isbursements a nd rece ipts .

The Agassiz Va l ley Socia l Services Distr ict reimbu rsements and b i l l i ngs wi l l be d i rected to and adm in i stered by the d istr ict office . The Agass iz Va l l ey Soci a l Services D i str ict wi l l im p lement the same process for bookkeep ing as Tra i l l County Socia l Services Board does at the present t ime as we l l as the standard operat ing procedu res and pract ices of Tra i l l County Socia l Services . Th is i n c l udes a voucher system to pay b i l l s which a re subm itted to the govern ing board for approva l .

The Agass iz Va l l ey Soci a l Services D istrict w i l l be subject to the yea rly Tra i l l County fisca l aud it .

The Agass iz Va l l ey Socia l Services D i strict w i l l annua l l y p repare a p roposed budget for the d i strict . After the proposed budget is approved by the Agassiz Va l l ey Socia l Services District Board, the p roposed budget wi l l b e submitted to the board of county commiss ioners i n each county in the d i strict for approval . The amount budgeted and approved must be suffic ient to defray the antic ipated expenses of adm in i stration and del ivery of socia l services and i ncome ma intenance services for the service d i str ict.

With in ten ( 10) d ays fol lowing approval of the p roposed budget by the boards of county commissioners, the govern i ng board of the d i str ict s ha l l certify the budget to the respective county aud itors of the counties in the d i strict a nd any app l i cab l e amounts sha l l be i ncluded in the lev ies of the count ies .

The Agassiz Va l ley Socia l Services D istr ict wi l l fo l low the budget approved for the Agassiz Va l l ey Socia l Services D istr ict .

The state soci a l services fu nd ing formu l a payments and other related revenue for both count ies wi l l be conso l idated i nto one fund, ma i nta i ned by the county where the d i st rict office is located, fo r the pu rposes of the Agass i z Va l ley Soci a l Services Distr ict .

Any expenses incu rred above the state fu nd i ng formu l a payment and any add it iona l revenue generated by work act ivity/a l locat ion to the d istr ict, wi l l be subject to the fi sca l respons i b i l ity percentages recognized by the govern ing boa rd of the Agass iz Va l l ey Soc ia l Services Distr ict . I n th i s

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,it d- ?) I q event, t he Agassiz Va l ley Soci a l Services D ist rict wi l l prepare a req uest to both cou nty com m iss ions • to req uest add i t iona l fu nds based on the agreed upon fisca l respons i b i l ity percentages.

The cu rrent fisca l respons i b i l ity fo r a l locat i ng expenses above revenue is : Tra i l l Cou nty 80% Stee l e Cou nty 20%

During the a nnua l review of the d i str ict p l an , adjustment(s ) wi l l be proposed, as wa rranted , i nc l ud ing but not l im ited to the percentages of fi scal respons ib i l ity.

The Agass iz Va l l ey Soci a l Se rvices Distr ict office wi l l adopt the Tra i l l County Soci a l Services personne l po l i cy for a l l emp loyees. The Agassiz Va l l ey Socia l Services Board sha l l review t h e adopted personne l po l i cy manua l with i n the fi rst year of operat i ons and wi l l adopt any changes app roved by t h e Agass iz Va l l ey Soci a l Services District Board .

The Agass iz Va l ley Soc ia l Services Distr ict Board sha l l regu l a rly review person ne l po l ic ies and update when determ i n ed necessary i n conj u n ct ion with app l icab le federa l and state l aws/ru le i n c l ud i ng but n ot l im ited to the sect ions rega rd i n g the North Dakota Merit System for c lass ified employees .

As d eta i l ed i n t he attached o rgan izat iona l chart, the County D i rector d i rectly reports to the Agass iz Val l ey Socia l Services District Board and the employees of the Agassiz Val ley Soc ia l Services D i str ict report (e it he r d i rect ly or i n d i rectly) to the County Di rector. The Cou nty D i rector's performance eva l u at ion wi l l be performed by the govern ing board on an annua l bas is . •

In the event of County D i rector posit ion vacancy, the Agassiz Va l ley Socia l Servi ces D i str ict Board wi l l be respons ib le for the h ir ing of the Coun ty D i rector and wi l l req u i re a super majority vote, d efi n ed as 5 of 6 votes, of s upport prior to offer i ng the County D i rector posit ion to a specific, qua l ified ca nd i date . As requ i red by fede ra l and state l aw, any n ew Cou nty Di rector for t he Agass iz Va l l ey Soc ia l Services D istr ict wi l l meet or exceed the m i n imum requ i rements set forth by North Dakota Merit System for c l a ssified emp loyees .

Cu rrent emp loyees that t rans it ion emp loyment to the Agassiz Va l ley Socia l Services D i str ict at the t ime of i n ce pt i on of th is agreement are cons idered grandfathe red with the i r sam e level of emp loyee benefit . Upon i n cept ion, al l i n d iv idu a l s assigned to the Agassiz Va l l ey Soci a l Services D istr ict wi l l be cons idered e m p loyees of the d i st rict .

Any new Agassiz Val ley Soc ia l Services Distr ict emp loyees wi l l be subject to t h e e mp loyee benefit package offered by the county where t he d i str ict office is located and out l i ned in app l i cab le po l i cy .

Efforts h ave been m ade p rior t o the i m p lementation of th is agreem ent to ensure sa l a ry equ ity of a l l impacted emp loyees . The pay ph i losophy ut i l ized for revi ewi ng and adj usti ng a pp l icab l e sa l a ries to ensu re equ ity was the Tra i l l Cou nty Soci a l Services compensat ion p l an .

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The Agass iz Va l ley Socia l Services District sha l l adopt the operat iona l , service a nd management ph i losophy and va lues as descri bed i n the attached "Building our Culture" document.

Governing Board:

Membersh ip: The Agass iz Va l ley Soci a l Services Distr ict gove rn ing board sha l l be made up of s ix (6 ) members : th ree (3 ) members from Tra i l l County and three (3) members from Stee le County. Each county wi l l have at least one county commi ss ioner on the govern ing board .

The county commiss ion of each county wi l l appo int the members to serve on the govern i ng boa rd . The terms of appointment w i l l be for three yea rs. The terms and membersh i p o f the i n it ia l govern ing board wi l l be staggered and through attrit ion the s ix (6 ) member board wi l l be formed . After the member has served the staggered term, a l l future appointments wi l l be for three (3 ) yea rs or u nt i l a successor has been appointed and qu a l ifies . Each gender w i l l be fa ir ly rep resented . Each member of the govern ing board sha l l take the oath prescri bed for civi l officers and fi l e the oath with the cou nty aud itor of the i r county of res idence . Board members w i l l be appoi nted b ased u po n fitness to serve as members by reason of cha racter, experience, a nd tra i n i ng without regard to po l it ica l affi l iat ion

If an appointee to the Agassiz Va l l ey Soci a l Services Boa rd is u n ab le or u nwi l l i ng to meet their ob l igat ions of attendance, uphold their oath of office, or ma i nta i n confidentia l ity requ i rements, a rep lacement may be requested to the app l icab le county comm iss ion by the Cha i r of the Agass iz Val ley Socia l Services Boa rd . Furthermore, a s p rovided for i n N DCC 50-01 .2 , each respective board of county commiss ioners may adopt a reso l ut ion to remove a specifi c county' s appo inted member to the Agassiz Va l ley Socia l Services Distr ict Boa rd, with or without cause .

Board Meeting Frequency and Location : The Agassiz Va l ley Soc ia l Services D i str ict Board sha l l meet on a monthly bas is un less determ i ned otherwise by the board . Meeti ng l ocations of the Agass i z Va l l ey Socia l Services D istr ict Board sha l l be he ld on a proport iona l bas is with e ight (8 ) of the meetings be ing he ld i n Tra i l l County and fou r (4 ) of the meetings be ing he ld i n Stee le Cou nty each year. Meeting locat ion wi l l rotate on a n agreed upon schedu le with one meeting per q uarter he ld i n Stee le County.

Cons istent with North Dakota open meet i ngs requ irements, adequate notice of meeting d ate, t ime, meeti ng status, and locat ion wi l l be noticed .

The Agass iz Va l l ey Soc ia l Services D istrict Board sha l l provide to the Tra i l l County and Stee le County Commiss ions, on a monthly basis, a written summary p rovid i ng an overview of fi sca l , person nel , a nd p rogra m u pdates. The ant ic ipated i nterva l be i ng two meet ings i n Tra i l l County pe r one meeting in Stee le County subject to board sched u l i ng needs .

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<If- 0- t')� I Administration:

Officers : The govern ing board wi l l e lect from amongst its members a cha i rperson and vice cha i rperson . In add it ion, a secreta ry wi l l be appointed . The County D i rector serves as the Di recto r of the Agassiz Va l ley Soc ia l Services D i str ict Board .

Business procedures: Any action re lated to sta ndard operat ions of the board must h ave a s imp le majority vote s ubject to q uorum to be cons idered passed . Quorum is defined as over 50% (fou r) of the govern ing board membersh i p .

For the pu rposes o f th i s p l a n, a super majority vote o f the Agassiz Va l ley Socia l Se rvice D istr ict Board is defined as 5 of 6 votes . A super majority vote is requ i red for changes to the d i str ict p l an . Any p roposed changes to the d istr ict p l an i s a nt icipated to include i nput from the respective county com miss ion to the board membersh ip from each county.

A super majority vote of the Agassiz Va l ley Socia l Services District Board is a l so requ i red to approve a motion to offer emp loyment to an identified cand idate for a vacant County D i rector posit ion .

The govern ing board wi l l fo l low Roberts Ru l es of Order .

Reimbursement: Members wi l l be reimbu rsed the fo l lowing rates : $65 for offic ia l board business l asting four (4 ) hours or l ess $90 for offic ia l board business l astin g greater than four (4) hou rs

Board member reimbursement wil l be p rovi ded for each day necessari ly spent in the performance of offic ia l dut ies. Members wi l l b e paid the state rate for m i l eage and app l icab le per d i em . Mem bers may be re imbursed for a ctua l costs i ncurred i n attending meetings a nd i n t he performance of offic ia l dut ies as approved by the govern ing board .

Confl ict Resolution : If confl i ct ar ises between the govern ing board and e ither county commiss ion or between the separate county commiss ions involved in the mu lticounty d i str ict , a ppl i cab l e parties wi l l act ively engage and ma ke reasonab le efforts to resolve the confl i ct and reach consensus . If the confl i ct ca nnot be resolved th rough a q uorum vote i n a manner that has a positive/neutra l impact u pon the mu lt icounty d i str ict, a neutra l th i rd party wi l l be sought to faci l itate remedy to the confl i ct . The type of med iat ion services se lected wi l l be based on the topic of d i spute, expertise needed , and i nformation requ i red to gu ide i nformed decis ion making .

If confl i ct a ri ses from with in the govern i ng board, the Agassiz Va l ley Soci a l Services D i str ict wi l l act ive ly engage and make reasonab le efforts try t o reso lve t h e confl ict and reach consensus . I f the confl ict rema ins un resolved and cannot b e resolved through a quorum vote i n a man ner that has a pos it ive/neutra l impact u pon the agency, a neutra l th i rd party wi l l be sought to fac i l itate a remedy to the resolut ion . The type of med iat ion services se lected wi l l be based on the top ic of d ispute, expert ise needed, and i nformat ion req u i red to gu ide informed decis ion mak ing .

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Length of the Agreement: This agreement sha l l be i n effect from the operationa l, personne l , services, and management perspective effective September 1, 2018 . On J a nua ry 2, 2019 , the lega l n ame, board composit ion, fisca l and property components of th is agreement w i l l be i n fu l l fo rce .

The agreement wi l l be in effect for one year and i s subject to annua l review by the Agass iz Va l ley Soci a l Services District Board . P roposed changes to the d i str ict p l an i s ant ic ipated to i nc lude i n put from the respect ive county com m iss ion to the board membersh ip from each county.

Any county that wishes to end the i r membersh ip in the Agassiz Va l ley Soci a l Services D istr ict must i nfo rm the govern ing board and other county commiss ion , i n writi ng, no less than three (3 ) months pr ior to its wishes to end the i r membersh i p i n the Agassiz Va l ley Socia l Services D istrict . Pr ior to such not ice to d isso lve, act ive efforts includ ing med iat ion must h ave proven unsuccessfu l .

Property: The Agassiz Va l ley Soci a l Services District h a s the right to own and d istr ibute property. Any property owned by a county socia l services board p rio r to the s ign ing of th is agreement rema ins the property of that county for the pu rposes of the d i st rict's de l ivery of soci a l services and sha l l be ma inta ined and repa i red, as necessary, by the d istrict

At i n ception of th i s agreement, each of the counties wi l l fu rn ish office space and equ ipment for the respect ive socia l services office. Each county agrees to contin ue to provide and maintain the a ssigned space to the Agassiz Va l l ey Socia l Services District u n less n otif ied by the d istrict that the space (e ither partia l o r in enti rety) i s no longe r requ i red by the d istrict .

For h istor ica l reference, a current i nventory reflective of the p roperty owned by Tra i l l County Socia l Services and Steele County Socia l Services wi l l be reta ined on fi le when th i s agreement i s i n it ia l ly e ntered .

The purchase of any new property after fu l l execut ion of th i s agreement w i l l be cons idered property of the d i str ict . As d i st rict property is obta ined, record of such property wi l l be ma i nta i ned o n the Agassiz Val ley Soci a l Services Distr ict i nventory.

I f the Agassiz Va l ley Socia l Services D istr ict d i sso lves, any p roperty ( i nc l ud i ng agency veh ic les ) i n it ia l ly owned by either county wi l l rema in property of the county of origi n . I n the same s ituat ion , any property, i n cl ud i ng agency veh icl es, pu rchased and owned by the Agass iz Va l l ey Socia l Services Distr ict wi l l be sold with proceeds to be d iv ided among the two count ies at the same percent of fisca l respons ib i l ity as defined i n th is p l a n . Furthermore, if upon d isso l ut ion, an option sha l l rema in for one county to com pensate the other county a set amount for jo int p roperty, i n l ieu of sa le to an outs i de pa rty, based upon t he fin a nc ia l respons ib i l ity percentages set forth i n t h i s p l an .

2 1

SB d\\°'Y 1 / °' '6/ l q �°' fj ' d>3

Business Hours, Employee Work Hours/Leave, Hol idays: The recogn i zed bus i ness hou rs, • emp loyee work hours, emp loyee leave schedu le and ho l iday/closure schedu l e for the Agassiz Va l l ey Socia l Servi ces D i str ict w i l l be set forth i n the adopted personne l po l i cy and consistent with app l icab le state and federa l l aw and po l ic ies .

Technology: At the t ime of orig i n a l agreement, Tra i l l County Soci a l Services obta ined techno logy services from Remark Techno logy consistent with Tra i l l Cou nty practice . Sim i l a r ly, Stee le County Soc ia l Servi ces obta ined techno logy services from N RG .

The Agassiz Va l l ey Soci a l Services District wi l l deve lop an appropriate p l an for techno logy-re lated support, in the best i nterest of the Agass iz Va l l ey Socia l Services D i str ict, cons idering va rious technologica l effic iencies, service, cost-effectiveness, p rogram com p l i ance, ab i l ity to a l low the agency to operate as one and to promote qu a l ity services to cit i zens .

The d eve lopment, approval , and updates to the technologica l p lan is cont i ngent upon m ajority vote of the Agass iz Va l l ey Socia l Services D istr ict and based on the ava i l ab i l ity of appropr iat ions .

Liab i l ity: Any l i a b i l ity occu rrences resu lt ing from aud its, reviews, l it igat ion , etc. stem ming from events, act ions, or inact ions of Tra i l l County Socia l Services and/or Stee le County Socia l Services p rior to the imp lementation of th is agreement, sha l l be the respons ib i l ity of the county of o rig in . At t ime of i nception, both Stee le and Tra i l l Counties participate i n the North Dakota Insurance Reserve Fun d fo r purposes o f i n su rab i l ity a nd related m itigat ion .

Any l i ab i l ity occurrences resu lt ing from events, act ions, o r i n a ct ions of the Agassi z Val l ey Socia l Services D i str ict wi l l be responsi b i l ity o f the D i strict. I f re lated expenses exceed the ava i l abi l ity of funds with in the Agassiz Va l ley Soci a l Services D istr ict, each county sha l l be responsib l e for the percentage of fisca l respons ib i l ity as set forth i n th i s agreement. U pon fu l l execution of th is agreement, both Stee le and Tra i l l Counties agree to cont i nue to partic ipate i n the North Dakota Insu rance Reserve Fund, i nc lud ing coverage for the Agassiz Va l l ey Soc i a l Services D istr ict, for the pu rposes of i n su rab i l ity and re l ated m it igat ion .

Agassiz Valley Social Services Policy:

General Assistance : Th e respons ib i l ity of arrang ing for and pay ing for bu ri a l for an i nd ivi dua l determ i ned to be i nd igent is defi ned in North Dakota Century 23-06-03 with costs assumed by the deceased i n d igent's county of res idence . The Agass iz Va l ley Soci a l Servi ces Govern ing Board wi l l act on beha lf of the county soci a l services boards i n Tra i l l and Stee le cou nties to adm in ister the county bur i a l po l i cies of each county and fo l low the provis ions in North Dakota Century 23-06-03 . Any changes in the rate of payment of i nd igent bu ri a l s is su bject to negot iat ion with the majo rity of funera l provi ders of the cou nty and the app l icab le county com m iss ion .

22

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see C7i Jc) L/ '/sgj;q

#-a_ ry ,ci-/ County-Based Home and Community Based Services : Pr ior to th i s agreement, both Tra i l l County Soc ia l Services a nd Stee le County Soc ia l Se rvices operated a cou nty-based home and commun ity based services p rogram . The goa l s and provis ions o f each p rogram a re very s i m i l a r and focus on p romoti ng and enhanc ing t he ab i l ity for e lderly and d i sab led i nd iv id ua l s to res ide i n the i r own homes for a longer period o f t ime i n a safe manne r . Each county has adopted po l icy that out l i nes the i r county-based HCBS progra m . Both cu rrent po l ic ies com p lement and enhance state and federa l HCBS services to cit i zens .

At the i nception of th is agreement, each county's res pective po l i cy wi l l trans it ion to the d istr ict . Du r ing the fi rst yea r of d i strict formation , the Agass iz Va l l ey Soc ia l Services D istr ict wi l l review the pol ic ies to determ ine the des irab i l ity and i mpact of imp lement ing one standa rd ized po l i cy for the socia l service d istr ict .

Attachments Agass iz Va l ley Soci a l Services D istr ict Organ i zationa l Chart Bu i ld i ng our Cu lture handout 2017 Caseload Numbers prepared by the North Dakota Depa rtment of Human Services 2019 State Formu l a Payment Ca lcu l at ion 2019 Budgeta ry Compar ison Sum mary State Formu l a Payment Reduct ion F i sca l Impact Sum mary - Tra i l l County State Formu l a Payment Reduction F i sca l Impact Summary - Stee le County Employee Summary

23

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a, person, Steele County Board of Commissioners

Date : 1/-(p -(€

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24

• Signed :

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• 25

5£> a l �Lt I /di<(;/ /1

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S igned : •

Executive Director, North Dakota Department of Human Services

Date : _________ _

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26 •

• • •

Building our culture

Work as One

We u nde rsta n d t h a t d iverse tea m s

work i ng toget he r a c ross, d iv i s i o n s a n d

depa rtments ca n b r i ng a l l of t he

resou rces of o u r state to se rve o u r c i t i ze n s best . Be ing i n c l u s ive

i'l n d s h a r i ng i n fo rmat ion p rov ides a bette r outcome a n d

1� c ru c i a l t o i n novat i o n .

Values

Purpose

Cit izen Focused

G rowth M indset

Make a D ifference

Leadersh i p Everywhere

We st r ive to d e l i ver the best se rv ice, w it h

t he r ight ba l a n ce between tec h n o logy

a nd c i t i zen fac i ng t ime . W i th

s imp l if i cat i o n at t he co re ; we l i sten ,

des ig n , c reate a n d d e l iver w i th c it ize n s a t t h e cen t e r of ou r

work .

We lead by exa m p le, prom ote tea m s p i r it a n d ho l d ou rse lves

and o thers cicco u ntab l e . We have grat i t ude , e m power each o t h e r a n d v iew fa i l u res a s lea r n i ng

oppo rtu n it ies . We a re h u m b le, t ra nspa re nt ,

focu sed , a n d t ru stworthy.

Empathy Well- In tentioned

Gratitude Humi l ity Curios ity Cou rage

Empower people, Improve lives, Inspire success . . . .

).___ ______ ..JL:Boa=rd:..:..:.:�=G=m ASS=bers==-l-=Z:.:..:Vi=�-=LLEY�::.c:SO="�=-=:=,e=�:..;:�:=,_E11-=ra=�.::.:.11�=!=: ..... �--:=R=el __ �--u--

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f Kimberly Jacobson

j County Social Service District Director

Administration Unit Aging Services Unit Children and Family Services Unit

tebecca Hams • Administrative Assistant

• Pam Lacher, LSW • HCBS Case Manager/Team

Supervisor

• Marilyn Aanderud • Direct Care Specia l ist

• Kathleen Hanson • Direct Care Specia l i st

• Tina Johnson • Direct Care Special ist

• Jennifer Lindseth • Human Service Aide

• Tammi Mooney • Direct Care Special ist

• Tammy Sand • Direct Care Specia l ist

• Beth Morrow, MSW, LCSW • CFS Team Supervisor

• Nicholas Crocker, MSW, LCSW • Fami ly Service Specia l ist

• Allison Klassen, LSW • Fam i ly Service Specia l ist

• Jackie Kraling, LSW • Fami ly Service Specia l i st

• Intern - variable

Economic Assistance Unit

• Tami Wilson • Lead El igib i l ity Worker

• Kelly Archambeau • El igib i l ity Worker

• Ivy Fyre • Eligib i l ity Worker

• Kristen Lee • E l igib i l ity Worker

• Sara Mack • E l igib i l ity Worker

• Edna Riendeau • El igib i l ity Technican

•

•

•

Employee Summary

Stee le County Social Services (prior to col laboration)

Pos it ion Number

46-00-6074 46-00-6078 46-00-6548 46-00-6072 Tota l :

Posit ion Tit le

E l ig ib i l ity Worke r D i rect Ca re Associate I I Human Se rvice Aide I I County D i recto r I

Tra i l l County Social Services (prior to col laboration)

Posit ion Number Posit ion Tit le

49-00-5569 E l ig i b i l ity Techn i c i an 49-00-5245 E l ig i b i l ity Worke r I 49-00-6134 E l ig i b i l ity Worke r I 49-00-6140 E l ig i b i l ity Worke r I 49-00-5629 E l ig ib i l ity Worke r I 49-00-5694 Lead E l ig i b i l ity Worke r 49-00-5443 Fa m i ly Se rvice Spec i a l ist I l l 49-00-6 139 Fa m i ly Se rvice Spec i a l i st I l l 49-00-6287 Fam i ly Se rvice Spec i a l ist I l l 49-00-6 133 HSPA I l l (CFS Supervisor 49-00-5609 Socia l Wo rke r I I ( HCBS Superviso r 49-00-6132 Di rect Ca re Assoc iate I I 49-00-6137 D i rect Ca re Associate I I 49-00-6 146 D i rect Ca re Associate I I 49-00-6153 D i rect Ca re Associate I I 49-00-6152 Ad m in istrat ive Ass ista nt I 49-00-6156 County D i recto r I l l Tota l :

FTE

1 1 1 1 4 FTE

FTE

1 1 1 1 1 ( p roposed ) 1 1 1 1 1 1 1 1 1 1 1 1 17 FTE

SB a l t).½ / 8'<?/q

ff- 3 Pj· 3

s-i <71 ) �½ 1 /;).k/!9

# 3 p3 - 4 Agassiz Va l ley Socia l Services

Posit ion N umber

49-00-5569 49-00-5245 49-00-6 134 49-00-6 140 46-00-6074 49-00-5694 49-00-5443 49-00-6 139 49-00-6287 49-00-6 133 49-00-5609 49-00-6132 49-00-6137 49-00-6146 49-00-6 153 46-00-6078 46-00-6548 49-00-6 152 49-00-6156 Tota l :

Posit ion Tit le FTE

E l ig ib i l ity Technic ian E l ig ib i l ity Worker I E l ig i b i l ity Worker I E l ig i b i l ity Worker I E l ig i b i l ity Worker Lead E l ig ib i l ity Worker Fa m i ly Service Specia l i st I l l Fa m i ly Service Spec ia l i st I l l Fa m i ly Service Specia l i st I l l HSPA I l l (CFS Supervisor Socia l Worker I I (HCBS Supervisor D i rect Ca re Associate I I D i rect Ca re Associate I I D i rect Ca re Associate I I D i rect Ca re Associate I I D i rect Ca re Associate I I H uman Service Aide I I Ad m in istrat ive Ass ista nt I County D i recto r I l l

• 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 FTE •

•

't' :;:J; .. :� • :, Projected Revenue

State Formu la Payment

M M IS (Medica id ) B i l l i ng

HCBS

M M IS (Medica id ) B i l l i ng

Ch i ld Welfare

S l id ing Fee Sca le

Payments (county

funded HCBS)

Ea rly Chi ldhood Fees

Other

Loca l Tax Revenue

Reim bursement

Total Projected

Revenue

Reserve Fund Ba lances

(Janua ry 2, 2019)

Total Projected

Revenue and Reserves • Operationa l Expenses

Sa la!}'. & Benefits :

Employee Sa l a ries

Succession P l ann ing

QSP Rate Adjustment

Accrued Leave

Unemployment

I n su rance

Workman ' s

Compensation

Hea lth I nsura nce

Retirement Expense

Socia l Secu rity Expense

• Board Compensat ion

Total Salary and

Benefits

Agassiz Va l ley Social Services District - 2019 Budgeta ry Comparis ion Summary SB 'o. lo-Lf l / di <&-/ / r

# 3 g. s ··-· --

Tra i l l County

2019 Anticipated

Receipts

$ 1, 209,607

$ 95,000

$ 2 1, 600

$ 3,600

$ 600

$ 100

$ 9, 200

$ 1,339,707

$ 100,000.00

$ 1,439,707.00

2019 Tra i l l

County Budget

$ 857,737

$ 6,000

$ 6,000

$ 12,500

$ 7,500

$ 7,300

$ 138,930

$ 108,740

$ 67, 851

$ 5,500

$ 1,218,058

Steele County

2019

Anticipated

Receipts

$262,906

$

$

$

$ 1,600

$ 264,S06

$ 100,000.00

$ 364,506.00

2019 Steele

County Budget

$ 187,691

$ 74,827

$ 3,500

$ 266,018

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ii· 2019 Proposed District

Budget Com ment

2019 forecasted with no true u p/down cha nges; based on caseload

$ 1,472,513 and not a loca l ly contro l l ab le item

SCSS h istorica l ly has not bi l led Medicaid for services nor had the

a uthority to do so; Also i nc l udes flex ib i l ity i n t ime l ine for submitting

$ 140,000 b i l l i ng and rece ipt of payment

SCSS h i storica l ly has not b i l led Medica id pr ior to co l la boration nor had the a uthority to do so; F lexi b i l ity i n t ime l ine for subm itt ing

$ 27,000 b i l l i ng and receipt of payment

$ 3,600 County fu nded HCBS c l ient fee payments per county pol icy

$ 700 Ea rly ch i ld hood services provider l icens ing fees

$ 100 Refunds, cred its, etc.

Property tax credit from 2019 and 2017 payab le to departments in

$ 10,800 2019

$ 1,654,713 Antic i pated ga in i n revenue for District model for 2019: $50,500

District proposed to begin 1/2/2019; Reserves wil l be left intact from

$ 200,000.00 1/1/18 levels and were sou rced with county funds

$ 1,854,713.00 -� t. '.;{;l;i: Jfi,f � .: ' .j�

2019 Proposed

District Budget Com ments

Budget for cu rrent staff; Addit iona l $54,582 ava i l ab le to add posit ion

if necessa ry; Distr ict Budget inc ludes sa l a ry & benefits for one

$ 920,037 County Di rector vs. two.

To be used on ly if necessa ry; Steele County has h istorica l ly not

$ 10,000 budgeted for this expense

Legis lat ively mandated re imbu rsement for state/federa l QSP

$ 7,000 services; Steele County has h i storica l ly not been e l ig ib le to receive

$ 12,500 To be used on ly if necessa ry

$ 7,500

$ 7,300 Steele County h istorica l ly combines i nsurance, retirement, soci a l

secu rity, workman ' s comp, etc . i n one l i ne i tem; District Budget i s for

cu rrent employees; Addit iona l $ 10,000 ava i l ab le for new position if

$ 156,700 necessa ry

District Budget inc ludes cu rrent employees; Additiona l $6905

$ 117,543 ava i l ab le for new posit ion if necessa ry

District Budget inc ludes cu rrent employees; Additiona l $3958

$ 74, 227 ava i l ab le for new posit ion if necessa ry

Cu rrently 12 tota l board members between the two counties; Under

$ 6,000 d istrict there would be 6 board members;

$ 1,318,807

Agassiz Va l ley Socia l Services District - 2019 Budgetary Comparis ion Summary

General Office 2019 Tra i l l 2019 Steele 2019 Proposed

Ex�ense County Budget County Budget District Budget Comments

Te lephone $ 17,000 $ 4,000 $ 20,000 Tra nsition ing to un ified te lephone system • Pr int ing and Resou rces $ 1,000 $ 350 $ 1,300 Office Repa i rs and

Ma intenance $ 2,500 $ 1,500 $ 3,500 Office Suppl ies $ 7,000 $ 2,000 $ 9,000 Postage $ 3,000 $ 670 $ 3,500 Occupancy $ 12,000 $ 12,000 I ncrease in lease for economic a ssistance un it at H i l l sboro office

Genera l M iscel l a neous $ 3,500 $ 3,000 $ 5,500 Capita l Out lay $ 4,000 $ 1,000 $ 5,000

Travel $ 45,000 $ 16,000 $ 50,000 Agency Car

Maintenance, Fue l and Related $ 20,000 $ 30,000 Steele County has h istorica l ly inc luded th is in the travel l i ne item Tota l General Office

Expense $ 115,000 $ 28,520 $ 139,800

2019 Tra i l l 2019 Steele 2019 Proposed

Program Ex�ense County Budget County Budget District Budget Com ments

Genera l Forecast based on h i stor ica l ut i l izat ion for both counties and

Assista nce/Bur ia l $ 1 1,600 $ 1,500 $ 15,725 ava i l ab i l ity of General Assistance for Steele County

HCBS Supply Expense $ 2,000 $ 250 $ 2,250

Safety Permanency

Funds $ 20,000 $ 10,000 $ 30,000

Steele County's spend ing h i story does not reflect need for the Foster Ch i ld Support amount h istorica l ly budgeted; Also see next l i ne for add it iona l Expense $ 20,000 $ 7,500 $ 20,000 support under d i strict mode l • Youthworks She lter

Care Contract & Stee le County h istorica l ly has not had a contract but pa id a da i ly Related Foster Care rate; Al l youth served by the d i strict wi l l be ab le to ut i l i ze th is Expense $ 3,000 $ 3,000 contract

Total Program Expense $ 56,600 $ 19,250 $ 70,975

Professional 2019 Tra i l l 2019 Steele 2019 Proposed

Develo�ment County Budget County Budget District Budget Comments

Emp loyee Tra in ing &

Deve lopment $ 2,000 $ 2,000

Organ izationa l Tra in ing

and Deve lopment $ 500 $ 500

Boa rd & Agency

Dues/Licens ing $ 750 $ 600 $ 1,000

Total Professional

Development Expense $ 3,250 $ 600 $ 3,500

Technology 2019 Tra i l l 2019 Steele 2019 Proposed

Ex�ense County Budget County Budget District Budget Comments

Computers $ 3,225 $ 3,225

Pri nters/Scanners $ 1,800 $ 1,800

Softwa re, Supp l ies,

Secu rity & N RG/Remark For Stee le County, th is l i ne i tem h istorica l ly conta ins computer

Tech Expense $ 6,048 $ 4,000 $ 14,618 eq u ipment and tech fees •

Agassiz Va l ley Socia l Services District - 2019 Budgetary Comparision Summary

Vo IP Phone System and Updates to phone systems accomp l ished in 2018 . Addit iona l space • Cab l ing for updated at the H i l l sboro Economic Assistance un it to be eq u ipped in 2019. phone systems s 850 s 850 One time expense SAMS l icensing fee s 270 s 135 s 270

Total Technology

Expense s 12,193 s 4, 135 s 20,763

2019 Trai l l 2019 Steele 2019 Proposed

County Budget County Budget District Budget Comments

Total Expenses s 1,405,101 s 318,523 s 1,625,715 Antic ipated expense savings of d i strict for 2019: $97,909

Financia l Advantage/Disadvantage Analysis Trai l l and Steele

County Expense I f operated sepa rately, th is would be the tota l a nt ic ipated budget

Totals Combined s 1,723,624 levels for Tra i l l and Steele Counties i n 2019

If operated sepa rately, th is wou ld be the tota l a nticpated revenue

Combined Revenue s 1,804,213 for Tra i l l and Steele Counties i n 2019

Net Result of

Separate Operations s 80,589 Net resu lts of operating sepa rately ( revenue m inus expenses)

District Expenses s 1,625,715 Antic i pated Distr ict Expenses for 2019

District Revenue s 1,854,713 Anticpated District Revenue for 2019 • Net Results of

District Operations s 228,998 Net resu lts of operat ing d i strict ( revenue m inus expenses)

Difference net resu lts of d i strict operat ions compared to net results

of i nd iv idu a l operat ions. The proposed m u lt icounty soc ia l service

d istrict wou ld create a fiscal advantage. This was ca lcu lated

considering the decrease i n operat iona l expenses and i ncrease in

revenue under the Distr ict model . Such factors a s ab i l ity and

authorizat ion to b i l l Med ica id and e l im inat ion o f one County Director

sa l a ry/benefits package a long with other savings contr ibuted to th i s

outcome. Additiona l u n rea l ized savings w i l l a lso resu l t from a Projected Fiscal d istrict be ing formed due the creation of a n u n ified fisca l agent. Th is Advantage with wi l l lead to savings for the County Aud itor/Treasurer a nd for

District s 148,409 execution of state program management, a ud its, and reviews.

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5B a l ci <-; 1 / � 8 /l<j

=lf- 3 FJ· ?? Trai l l County Social Services

Tra i l l County, North Dakota www.co.traill .nd.us

70 1 .636.5220 • 888 .293 .2298 • 701 .636.522 1 Main Fax

Apri l 20, 2018

Mr. Christopher Jones, Executive Di rector North Dakota Department of Human Se rvices 600 East Bou levard Avenue, Department 325 Bismarck, ND 58505-0250

RE: State Formula Payment Reduction Fiscal Impact Summary - Trai l l County Socia l Services

Dear Executive D i rector Jones,

Recently, ND DHS released the June 2018 socia l services formula payment p roject ions to the

counties. Consistent with your req uest, an ana lys is of the impact of the reduction in payment

has been performed .

Tra i l l County Impact :

State Formula Payment Red uct ion Percentage of budget (approved and proposed )

Operationa l Snap-Shot:

2018 $71,370 5%

2019: $138,790 10%

Tra i l l Cou nty Socia l Services (TCSS) has h istor ica l ly practiced the adm in istrat ive task of tracking

case load numbers and ana lyz ing those numbers for t rends and var iation . I n resu lt, TCSS has

uti l ized th is data to make i nformed fisca l-rel ated dec is ions . For examp le, i n 2008, TCSS

emp loyed 22 personne l . Today, TCSS employees 16 personne l . Th is is a 27% reduction in staff

over a ten-year period . I nterest ingly, case loads today are equa l to o r greater than they were in

2008. However, th rough pr ioritiz i ng mandatory service de l ivery, uti l i z ing techno logy,

opt imiz ing var ious fu nd ing sources (such as M M IS b i l l i ngs), invest ing in p rofessiona l staff, and

imp l ement ing effic iencies it has ass isted TCSS to operate in a respons ib le manner wh i l e sti l l

de l iver ing qua l ity services .

PO Box 1 90 • Hi l lsboro, ND 58045

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SB ax ld. l/ I ) d- g: /1r

* 3 ?5· 9 Like many counties, the bu l k of the TCSS budget is ded icated to sa l a r ies, benefits, and crit ica l travel necessary to provide mandatory co re services to cit izens . In add it ion , the TCSS budget p rovides for cr it ical cl i e nt sup ports such as safety/permanency funds, county-funded HCBS services, a nd i nd igent bur ia l s . However, even with good p l ann i ng the fact that the cu rrent fund i ng structure i s based on 2015 costs, with no cons iderat ion for in creases to emp loyee benefits and overa l l com pensat ion costs, it is d ifficult to overcome these decreases without adversely impact i ng serv ice .

S i nce March 1, 2018, TCSS has co l l aborated with Steele County Soc i a l Services i n the de l ivery of mu lt ip le core services i nc lud i ng a l l D irector, Ch i ld Welfare and Adult Services case management services. Wh i l e th is has he lped to provide susta inab i l ity of services to Stee le County Soc i a l Services and wi l l bri ng some modest revenue to TCSS, i t wi l l not fu l ly rep lace the loss of red uced p ayment. Case load trends i nd icated that TCSS case loads a re aga i n i ncreas ing . Th is means personne l a re now tasked with provid ing services to a l a rger serv ice a rea and c l ients with the same number of personne l a n d t ime with less do l l a rs .

The 2018 budget forecast for TCSS i s as fo l lows:

• Tra i l l County Soci a l Services wi l l be ab le to susta i n service p rovis ions to Tra i l l County residents at the cu rrent service leve ls .

• If co l l aborat ion efforts cont i nue between TCSS and Stee le County Soci a l Services, it is a nt ic ipated that one add it iona l case manager posit ion wi l l be warranted due to current and ant ic ip ated case load numbers .

• At th is t ime, the goa l is to end 2018 with no fi n anc ia l ass ista nce from Tra i l l County property tax do l l a rs a n d with the majority of $ 100,000 reserve fund ba l a nce i ntact .

• It i s noted, that othe r co l l aborative pa rtners such as SENDCAA (South-Eastern N D Com mun ity Act ion Agency) i s a l so exper ienc ing a reduct ion i n fu nd i ng that most profound ly a re adverse ly impact ing rura l commun it ies . Th i s reduct ion i n emergency ass istance fund i ng to c it i zens is yie l d i ng i n creased requests for safety/permanency funds to TCSS which is h av ing an impact on the 2018 budget.

Look ing ahead to 2019 :

• There i s cu rrent d iscuss ion about forma l i z ing co l laborat ion with Stee le County with the specific goa l of fo rm ing a socia l service d istr ict .

• With that trans i t ion , it is a nt ic i pated that MM I S b i l l i ng wou ld i n crease based on a l a rger n umber of e l ig ib le c l i ents . This wou ld enhance d iversificat ion of fund i ng.

• Without such co l l a borat ion , the 2019 p roposed budget scena rio for TCSS i s cha l l enging. With now i n creas i ng TCSS ch i l d -welfa re caseloads, it i s sti l l u n known if the cu rrent

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case load i n creases w i l l be suffic ient to reflect add it iona l state payment fu nd i ng for the second-ha lf of 2019. Prov ided t hat TCSS has a l ready made s ign ificant effic ienc ies, it i s d ifficu lt to identify a reas for further reduction without adversely impacti ng service. Caseloads a re app roach ing the po int where an add it iona l case man ager i s warranted, but are l i ke ly not with in budgeta ry parameters fo r 2019 u n less contin ued co l l aborat ion and poo l i ng of resou rces can occur . If TCSS rema ins an i ndependently operating agency, the 10% p rojected reduct ion in state formu la payment for TCSS in 2019, makes fi l l i ng an add it iona l case manager posit ion (as ment ioned above } u nsusta i n ab le lead i ng to h igh case loads and l i ke ly reduced qua l ity of service.

• It i s the hope of TCSS that if a soc ia l service d i str ict is agreeab le to a l l p a rt ies, the col laboratio n and shared resou rces wi l l y ie ld qua l ity and effic ient soci a l services to our commun ity.

Reserve Fund Ba lance :

• L ike ly that even with forma l izat ion of sha red services, ava i l ab le rese rve fu nd ba l ances wi l l need to be uti l i zed, in some degree, in 2019.

• If a socia l se rvice d i str ict is not formed, it i s l i ke ly the bu l k of the rese rve fund ba l ance wi l l be dep leted i n 2019.

• It is th rough ou r intended co l l a boration efforts, im p lementation of add it iona l effic ienc ies and shared services that we cont inue to have the goa l for 2019 to operate without the need to uti l ize p roperty tax do l l a rs . I f fu rther reduct ions a re made to the state form ula p ayment in 2019, th i s is subject to change .

• It is l i ke ly that ou r ava i lab le reserve fund ba l ance w i l l be reduced i n 2019, therefore e l im i nat i ng a safety net for p reserv ing qua l ity services beyond 2019.

Than k you for th is opportun ity to p rovide Tra i l l County's reflect ions of the f isca l impact due to the cu rrent payment st ructure . If you h ave any questions, p lease feel free to contact me .

SB � ld.l..f 1 /�8/1'1

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May 1, 2018

STEELE COUNTY SOCIAL SFR Y ICES 201 WASHINGTON A VF W

PO BOX 276 F INLEY, ND 58230-2076

701 524- 2584 FAX: 701 524-1 103

M r. Ch ristopher Jones, Executive D i rector North Dakota Department of Human Services 600 East Bou levard Avenue, Department 325 B ismarck, ND 58505-0250

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. I /

R E : State Formula Payment Reduction Fisca l Impact Summary - Steele County Socia l Services

Dear Executive D irector Jones,

Recently, ND DHS released the June 2018 socia l services formu la payment p roject ions to the count ies . As requested, p lease fi nd the fol lowing ana lysis of the impact of the reduct ion i n payment to Stee le County Socia l Services .

Stee l e County I mpact :

State Formu l a Payment Reduction Percentage of budget (approved/ho ld-even )

2018 $32,286 1 1%

2019: $47,822 16%

Whi l e the dol lar amount, at face-va lue, may not seem s ign ifica nt to some, it i s p rofound for a sma l l rura l cou nty. Th i s i s fu rther comp l icated as Stee le County depends ent ire ly upon the state formu la payment for the cost of p rovid ing loca l soci a l services and further comp l icated by the l ack of other supportive socia l services i n the commun ity.

Like many counties, the bu l k of the SCSS budget ded icated to sa l a ries, benefits, a nd critica l travel necessary to provide critica l services to citi zens . I n add it ion , the budget conta ins crit ica l c l ient supports such as safety/permanency funds, county-fu nded HCBS services, a nd ind igent bu ri a l s . However, as the cu rrent fu nd i ng structu re is based on 2015 costs, with no cons iderat ion for increases to emp loyee benefits and overa l l compensation costs, it i s d iffi cu lt to overcome these decreases without adverse ly impacti ng services .

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Over the past severa l months, Stee le Cou nty Soci a l Services has u ndergone many changes . I n it ia l ly prompted by the res ign at ion of the SCSS Director, Stee le County i s now co l l a borati n g on an i nter im bas is with Tra i l l County Soc ia l Services for a l l D i rector, Ch i ld Welfare and Adu lt Services case management services . Th is he l ped to p rovide susta i nab i l ity of services d u ri ng th i s pe riod of d eterm in i ng what i s best for Stee le Cou nty and i t s res idents l ong-term . At th is t ime, Stee le County Socia l Services has forma l ly extended an invitat ion to Tra i l l Cou nty Soc ia l Services to cons i de r e nteri n g into a soci a l se rvice d istr i ct d es igned at provi d ing susta inab le , costeffect ive ly, a nd q u a l ity soci a l services to ou r commun ity.

The 2018 budget forecast for SCSS is as fo l l ows:

• I n 2018, Stee le County Soci a l Serv ices wi l l be ab le to susta i n service provis ion with the ass i stance and co l l aboration from Tra i l l County even with the state formu l a payment redu ct ion .

• Th is w i l l b e poss i b l e due to budget p l ann i n g, contracti ng fo r services, d ecreased t ravel costs, and other effic ienc ies .

• The goa l is to end 2018 with no financ ia l ass istance from Stee le Cou nty property tax do l l a rs and with the m ajo rity of the max imum $ 100,000 reserve fund ba l a nce i ntact .

Look ing ahead to 2019 :

• Stee l e County Soci a l Services i s cu rrent ly studyi ng forma l i z ing the i r co l l abo ratio n with Tra i l l County with the formation of a soci a l service d istrict .

• With that trans it ion, it i s antic ipated that resources wou l d be comb ined, tra ined and q ua l ifie d personne l de l iver service, and fi scal , admin istrative, and personne l effic ienc ies put i n p lace . Th i s would a l so encourage fu rther d ivers ification of fund ing .

• If SCSS i s unab l e to enter i nto a l ong-term col l aborative agreement, it wou ld be very cha l l e nging to de l iver q ua l ity core soci a l se rvices to our c it izens on a susta inab le basis.

Reserve Fund Ba lance :

• It is th rough ou r intended co l laboration efforts, imp lementation of add it i ona l effic iencies and s ha red services t ha t we continue to have the goa l for 2019 to o perate without the need to uti l ize property tax do l l a rs . I f further reduct ions a re made to the state formu l a payment i n 2019, th i s may change .

• It is l i ke ly that t he ava i l ab l e reserve fu nd ba lance may be ut i l i zed i n 2019 . If so, th i s wou ld e l im i nate o r reduce a safety n et for p reservi ng qua l ity services beyond 2019 .

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s s a 1 a l__/ \ ; a8/19 1F 3 f3 , /3

Thank you for th is opportun ity to provide Steele County's reflect ions of the fisca l impact due to

the cu rrent payment structure. If you have any quest ions, p lease feel free to contact me .

S i ncerely,

FOSTER CARE (c-

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Current CY 2018 Ci1seload data

CPS ASS8ME1m CHllO AJ'USE ANO

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County

# County

FOSTER CARE

(Case

Management) SUB ADOPT

CHILD CARE

LICENSING FC LICENSING

FAMILY

PRESERVATION

CPS

ASSESMENTS

/REFERALS

CHILD ABUSE

AND NEGLECT Total County # County TANF MEDICAL CHILD CARE

FOSTER CARE

(Eligibility) SNAP LIHEAP Total

1 Adams 114 10 50 4 52 4 13 247 1 Adams 0 2,998 151 114 556 62 3,881

2 Barnes 348 18 242 6 199 56 128 997 2 Barnes 209 19,061 754 348 4,895 267 25,534

3 Benson 70 16 36 2 4 64 21 213 3 Benson 1,395 36,970 213 70 8,642 143 47,433

4 Billings - - - - - - - - 4 Billings 0 0 0 0 0 0 0

5 Bottineau 44 10 222 1 73 17 58 425 5 Bottineau 89 10,627 442 44 2,765 383 14,350

6 Bowman 64 8 73 3 103 15 49 315 6 Bowman 0 4,355 178 64 1,148 75 5,820

7 Burke 7 6 44 6 23 3 - 89 7 Burke 19 2,504 43 7 568 58 3,199

8 Burleigh 1,416 79 2,262 59 1,158 491 907 6,372 8 Burleigh 1,174 112,786 2,844 1,416 29,766 736 148,722

9 Cass 3,068 424 5,446 147 566 1,445 1,246 12,342 9 Cass 3,988 241,086 11,543 3,068 69,868 1,952 331,505

10 Cavalier 6 6 81 1 51 13 48 206 10 Cavalier 72 4,754 200 6 833 84 5,949

11 Dickey 128 14 211 6 160 26 42 587 11 Dickey 34 7,152 268 128 1,523 189 9,294

12 Divide 39 1 40 - 41 25 3 149 12 Divide 4 2,850 3 39 453 50 3,399

13 Dunn 65 3 36 6 - 9 52 171 13 Dunn 29 5,970 59 65 1,067 41 7,231

14 Eddy 40 - 72 1 23 13 - 149 14 Eddy 42 4,683 95 40 1,088 72 6,020

15 Emmons 11 5 97 2 11 - - 126 15 Emmons 21 5,372 68 11 1,313 131 6,916

16 Foster 26 5 53 3 35 9 - 131 16 Foster 97 4,158 87 26 978 65 5,411

17 Golden Valley 12 2 83 3 59 - 24 183 17 Golden Valley 3 2,882 82 12 665 44 3,688

18 Grand Forks 2,806 207 1,815 89 592 431 695 6,635 18 Grand Forks 1,631 102,076 2,672 2,806 27,328 1,077 137,590

19 Grant 80 1 44 3 16 4 10 158 19 Grant 32 4,742 107 80 1,072 130 6,163

20 Griggs 36 4 66 3 90 7 11 217 20 Griggs 22 3,152 51 36 786 96 4,143

21 Hettinger 4 4 58 2 14 10 23 115 21 Hettinger 18 3,432 48 4 668 50 4,220

22 Kidder 3 1 28 1 40 - - 73 22 Kidder 0 3,958 41 3 705 57 4,764

23 LaMoure - 13 97 5 22 5 29 171 23 LaMoure 17 4,746 70 0 748 111 5,692

24 Logan 11 1 75 3 23 4 - 117 24 Logan 0 3,272 196 11 534 79 4,092

25 McHenry 66 8 104 3 80 10 47 318 25 McHenry 54 9,359 163 66 2,506 280 12,428

26 McIntosh 7 - 82 4 39 5 - 137 26 McIntosh 0 4,485 236 7 835 98 5,661

27 McKenzie 470 4 89 10 238 75 126 1,012 27 McKenzie 140 15,398 254 470 2,337 56 18,655

28 McLean 326 27 370 17 311 62 172 1,285 28 McLean 272 25,977 323 326 5,634 428 32,960

29 Mercer - - - - - - - - 29 Mercer 0 0 0 0 0 0 0

30 Morton 532 25 783 26 541 246 411 2,564 30 Morton 544 45,215 973 532 10,235 456 57,955

31 Mountrail 136 6 104 7 156 34 85 528 31 Mountrail 65 15,024 36 136 1,679 38 16,978

32 Nelson 11 6 84 2 42 6 18 169 32 Nelson 25 4,672 60 11 1,058 165 5,991

33 Oliver - - - - - - - - 33 Oliver 0 0 0 0 0 0 0

34 Pembina 89 24 147 7 64 41 36 408 34 Pembina 70 9,730 165 89 2,112 240 12,406

35 Pierce 190 4 48 6 54 8 32 342 35 Pierce 15 7,809 53 190 1,610 231 9,908

36 Ramsey 651 44 514 17 392 264 226 2,108 36 Ramsey 495 29,729 716 651 7,477 351 39,419

37 Ransom 63 3 178 4 21 14 29 312 37 Ransom 31 7,071 432 63 2,005 209 9,811

38 Renville 48 1 48 1 9 8 77 192 38 Renville 18 2,943 51 48 638 70 3,768

39 Richland 221 40 591 11 158 87 115 1,223 39 Richland 196 23,694 1,006 221 6,346 397 31,860

40 Rolette 413 69 107 12 75 79 50 805 40 Rolette 4,288 72,617 2,491 413 28,258 522 108,589

41 Sargent 18 6 108 - 49 10 32 223 41 Sargent 9 4,802 131 18 1,059 96 6,115

42 Sheridan - - - - - - - - 42 Sheridan 0 0 0 0 0 0 0

43 Sioux 19 1 - - 4 30 64 118 43 Sioux 1,528 24,173 36 19 5,754 14 31,524

44 Slope - - - - - - - - 44 Slope 0 0 0 0 0 0 0

45 Stark 804 40 766 32 1,268 114 378 3,402 45 Stark 350 39,715 680 804 10,490 326 52,365

46 Steele 14 5 36 - 6 2 - 63 46 Steele 0 2,172 39 14 342 63 2,630

47 Stutsman 461 39 669 12 270 100 240 1,791 47 Stutsman 137 31,166 960 461 9,790 378 42,892

48 Towner - - - - - - - - 48 Towner 0 0 0 0 0 0 0

49 Trail 223 29 205 8 125 24 80 694 49 Trail 47 9,782 219 223 2,572 257 13,100

50 Walsh 433 17 262 11 56 41 98 918 50 Walsh 182 22,018 701 433 4,651 431 28,416

51 Ward 1,245 78 1,407 45 1,347 411 803 5,336 51 Ward 1,545 95,917 2,799 1,245 26,721 768 128,995

52 Wells 86 3 60 4 64 17 119 353 52 Wells 66 6,593 98 86 1,906 210 8,959

53 Williams 1,105 44 521 42 631 436 517 3,296 53 Williams 339 37,851 409 1,105 9,102 287 49,093

16,029 1,361 18,514 637 9,355 4,775 7,114 57,785 19,312 1,141,498 33,246 16,029 303,086 12,323 1,525,494

CY 2017 Caseload Numbers-FINAL

Total Total

North Dakota Department of Human Services North Dakota Department of Human Services

SS Caseload EA Caseload

CY 2017 - Summary CY 2017 - Summary

T:\SB2206 Pilot\Caseload data\2017\Caseload data 2017-Final.xlsxSummary

= B x C = E x F = D + G = H / 2 = I - J = H - K = L + M

A B C D E F G H I J K L M N

COUNTY

(Colors reflect

consolidated

counties)

EA CY 2015 Cost per

Case (Based on Net

Expenditures)

EA CY 2017

Caseload EA CY 2019

CY 2015 Cost per

Case (Based on

Net Expenditures)

SS CY 2017

Caseload SS CY 2019

Total CY 2019

Estimated Payment

Based on CY 2017

Caseload

1st CY 2019

Payment (January)

LESS Fund Balance

over approved

threshold (to be

deteremined)

Total 1st CY 2019

Payment (January)

2nd CY 2019

Payment (June)

Total True-up and

True down based

on CY 2018

caseload (TO BE

DETERMINED)

Total 2nd CY 2019

Payment (June)

Adams 69.64 3,881 270,273 1,278.34 247.00 315,750 586,023 293,012 293,012 293,011 293,011

Barnes 31.00 25,534 791,554 496.51 997.00 495,020 1,286,574 643,287 643,287 643,287 643,287

Benson 16.42 47,433 778,850 602.58 213.00 128,350 907,200 453,600 453,600 453,600 453,600

Billings - - - - - - - - - - -

Bottineau 34.14 14,350 489,909 676.64 425.00 287,572 777,481 388,741 388,741 388,740 388,740

Bowman 56.25 5,820 327,375 832.03 315.00 262,089 589,464 294,732 294,732 294,732 294,732

Burke 91.76 3,199 293,540 1,210.96 89.00 107,775 401,315 200,658 200,658 200,657 200,657

Burleigh 27.03 148,722 4,019,956 508.74 6,372.00 3,241,691 7,261,647 3,630,824 3,630,824 3,630,823 3,630,823

Cass 18.86 331,505 6,252,184 456.91 12,342.00 5,639,183 11,891,367 5,945,684 5,945,684 5,945,683 5,945,683

Cavalier 89.16 5,949 530,413 2,050.56 206.00 422,415 952,828 476,414 476,414 476,414 476,414

Dickey 30.31 9,294 281,701 599.27 587.00 351,771 633,472 316,736 316,736 316,736 316,736

Divide 74.79 3,399 254,211 1,082.61 149.00 161,309 415,520 207,760 207,760 207,760 207,760

Dunn 73.87 7,231 534,154 1,920.96 171.00 328,484 862,638 431,319 431,319 431,319 431,319

Eddy 44.14 6,020 265,723 755.76 149.00 112,608 378,331 189,166 189,166 189,165 189,165

Emmons 28.56 6,916 197,521 147.59 126.00 18,596 216,117 108,059 108,059 108,058 108,058

Foster 50.46 5,411 273,039 1,274.49 131.00 166,958 439,997 219,999 219,999 219,998 219,998

Golden Valley 66.58 3,688 245,547 546.35 183.00 99,982 345,529 172,765 172,765 172,764 172,764

Grand Forks 27.43 137,590 3,774,094 543.89 6,635.00 3,608,710 7,382,804 3,691,402 3,691,402 3,691,402 3,691,402

Grant 41.75 6,163 257,305 580.23 158.00 91,676 348,981 174,491 174,491 174,490 174,490

Griggs 51.73 4,143 214,317 628.97 217.00 136,486 350,803 175,402 175,402 175,401 175,401

Hettinger 98.19 4,220 414,362 1,046.17 115.00 120,310 534,672 267,336 267,336 267,336 267,336

Kidder 35.83 4,764 170,694 1,515.20 73.00 110,610 281,304 140,652 140,652 140,652 140,652

LaMoure 39.80 5,692 226,542 1,139.77 171.00 194,901 421,443 210,722 210,722 210,721 210,721

Logan 42.71 4,092 174,769 738.60 117.00 86,416 261,185 130,593 130,593 130,592 130,592

McHenry 31.60 12,428 392,725 818.85 318.00 260,394 653,119 326,560 326,560 326,559 326,559

McIntosh 37.25 5,661 210,872 551.52 137.00 75,558 286,430 143,215 143,215 143,215 143,215

McKenzie 58.86 18,655 1,098,033 803.28 1,012.00 812,919 1,910,952 955,476 955,476 955,476 955,476

McLean 36.61 32,960 1,206,666 802.27 1,285.00 1,030,917 2,237,583 1,118,792 1,118,792 1,118,791 1,118,791

Mercer - - - - - - - - - - -

Morton 31.52 57,955 1,826,742 517.26 2,564.00 1,326,255 3,152,997 1,576,499 1,576,499 1,576,498 1,576,498

Mountrail 74.61 16,978 1,266,729 905.88 528.00 478,305 1,745,034 872,517 872,517 872,517 872,517

Nelson 39.96 5,991 239,400 840.21 169.00 141,995 381,395 190,698 190,698 190,697 190,697

Oliver - - - - - - - - - - -

Pembina 61.37 12,406 761,356 986.54 408.00 402,508 1,163,864 581,932 581,932 581,932 581,932

Pierce 36.93 9,908 365,902 582.55 342.00 199,232 565,134 282,567 282,567 282,567 282,567

Ramsey 27.89 39,419 1,099,396 443.94 2,108.00 935,826 2,035,222 1,017,611 1,017,611 1,017,611 1,017,611

Ransom 24.04 9,811 235,856 499.78 312.00 155,931 391,787 195,894 195,894 195,893 195,893

Renville 35.09 3,768 132,219 941.13 192.00 180,697 312,916 156,458 156,458 156,458 156,458

Richland 23.80 31,860 758,268 585.24 1,223.00 715,749 1,474,017 737,009 737,009 737,008 737,008

Rolette 11.86 108,589 1,287,866 708.26 805.00 570,149 1,858,015 929,008 929,008 929,007 929,007

Sargent 41.56 6,115 254,139 1,013.55 223.00 226,022 480,161 240,081 240,081 240,080 240,080

Sheridan - - - - - - - - - - -

Sioux 17.97 31,524 566,486 1,943.29 118.00 229,308 795,794 397,897 397,897 397,897 397,897

Slope - - - - - - - - - - -

Stark 39.17 52,365 2,051,137 584.95 3,402.00 1,990,000 4,041,137 2,020,569 2,020,569 2,020,568 2,020,568

Steele 79.04 2,630 207,875 873.50 63.00 55,031 262,906 131,453 131,453 131,453 131,453

Stutsman 33.08 42,892 1,418,867 575.36 1,791.00 1,030,470 2,449,337 1,224,669 1,224,669 1,224,668 1,224,668

Towner - - - - - - - - - - -

Traill 51.50 13,100 674,650 778.40 694.00 540,210 1,214,860 607,430 607,430 607,430 607,430

Walsh 27.26 28,416 774,620 606.19 918.00 556,482 1,331,102 665,551 665,551 665,551 665,551

Ward 22.61 128,995 2,916,577 587.90 5,336.00 3,137,034 6,053,611 3,026,806 3,026,806 3,026,805 3,026,805

Wells 75.93 8,959 680,257 1,339.83 353.00 472,960 1,153,217 576,609 576,609 576,608 576,608

Williams 48.08 49,093 2,360,391 849.96 3,296.00 2,801,468 5,161,859 2,580,930 2,580,930 2,580,929 2,580,929

TOTAL 28.37 1,525,494 43,825,062 600.10 57,785.00 34,814,082 78,639,144 39,319,585 - 39,319,585 39,319,559 39,319,559

CY 2019 County Formula Payment

Based on CY 2017 Caseload and CY 2015 Set Rate Per Case

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Date

Mi lestones for Forming a Mu lti-County Socia l Service Distr ict Agassiz Va l ley Socia l Services District Example

Activity * Februa ry 18, 2018 Stee le and Tra i l l Cou nty rep resentat ives fi rst meet to d iscuss

temporary co l l a bo ratio n . This req uest was d riven by need : The Stee le County Soci a l Service D i rector had an nounced resignat ion . That i nd ivi d u a l p rovided a l l case management services (ch i l d welfa re and home and com mun ity- based services) , su perv is ion and adm i n istrative d ut ies on beha lf o f Stee le County.

Ma rch 1, 2018 Tra i l l County begin s provi d i ng a l l County D i rector, a dm i n ist ration , supervisory and case management services (ch i l d p rotect ion , foster ca re, foster ca re l i cens i ng, ea r ly ch i l d hood l i cens ing, i n home service, and home and com m u n ity-based services) fo r Stee le Cou nty

Apr i l 19, 2018 Stee le County Soc i a l Services Boa rd offi c i a l ly req uests of Tra i l l Cou nty Soc i a l Services Board to engage i n d i scuss ions about form ing a m u lt icounty soc i a l service d i str ict

Apr i l 24, 2018 Tra i l l County Soci a l Serv ice Board meets and d i scusses the request of Stee le County a n d responds with agreement to meet

May 1, 2018 P resentat ion of the Stee le County Soci a l Services 2019 Budget to the Stee le County Soc i a l Services Boa rd and Com m iss ion

May 1, 2018 Presentat ion of the Tra i l l Cou nty Soci a l Services 2019 Budget to t he Tra i l l County Soci a l Services Boa rd

* May 3 1, 2018 A jo int boa rd meet i ng i s he l d between Tra i l l County Soci a l Serv ice Boa rd and Stee le County Soci a l Services Boa rd . Terry Traynor, Executive D i recto r of N DACo attends as we l l as Ch r is Jones, N D DHS Executive D i rector t o p rovid e v is i on i ng, i n tent and pu rpose backgrou nd . The States Attorney p rovides an overview of cu rrent law and necessa ry l ega l cons i de rat ions . Rhonda Al l e ry of La ke Soci a l Serv ice D istr ict a l so p resents i nformat ion on how a m u lt icou nty soci a l service d i str ict operates . Both boards offic i a l ly move d u ri n g that meet ing to form a workgroup to exp lo re the feas i b i l ity and des i rab i l ity of form ing a m u lt icou nty soci a l service d i str ict .

J u n e 2019 Gather ing i nformat ion , ass im i l at i ng data i nto a compa re format, review of app l i ca b l e statutes, deve lopment of fi rst d raft of d i str ict p l a n .

J u n e 19, 2018 A fou r-member work group meets. Va rious exist i ng d i str ict p l a n s were reviewed a long with a p roposed d raft p l a n fo r Stee le and Tra i l l Cou nt ies . Core top ics o f d iscuss ion i n c l uded : v is ion i ng o f workp l a ce cu ltu re, add it ion a l cons iderat ions fo r a modern m u lt icou nty d i st r i ct p l a n , review of exist i ng statute re lated to m u lt icou nty socia l service d i str icts and deve lopment of bottom l i n es . Personne l po l i c ies a n d

benefit packages were reviewed . Host cou nty reco mmendat ion was i dent i fied . •

J u ne 25, 2018 P resentat ion of Tra i l l Cou nty Soc ia l Service 2019 Budget to the Tra i l l Cou nty Com m iss ion

-ft111e 1, 201%' Stee le County Soci a l Se rvice Boa rd adjusts Stee le Cou nty Soci a l :Ju ly 1 1 35/8 Service emp loyee sa l a ries to i ncorporate the same pay ph i losophy as

Tra i l l County Soci a l Services. Th is a l lows sa l a r ies to be at par and to demonstrate the i r i ntent of movi ng forward with a m u lt icou nty socia l service d i st r i ct .

J u ly 17 , 2018 I n it i a l d i scuss ion re l ated to the proposed d i str ict p l a n and d i str ict budget p rocess to the Tra i l l Cou nty Comm iss ion . N o act ion taken .

* J u ly 18, 2018 Jo i nt Spec i a l meet i ng of Tra i l l County Soc ia l Services and Stee le Cou nty Soc i a l Serv ices Boa rds. Pu rpose of the meet i ng was to review the proposed d i str ict p lan a long with the work groups recommendat ions . Both boards met together and i n dependent ly . The board reconvened i n a jo int meet i ng. The meet i ng conc l uded with app rova l of t he p roposed d i str ict p l an with agreed upon amend ments .

Late J u ly 2018 Draft p roposed p l a n , a long with a l ette r deta i l i ng p rocess sent to the Tra i l l Cou nty Com m iss ion and Stee le County Com m iss ion . I n d ivi d u a l te lephone contacts were made by D i rector J acobson t o each Com m iss ioner to add ress quest ions pr ior to the upcom i ng Comm iss ion meet i ngs . •

August 7, 2018 Stee le County Com m iss ion meets and app roves the p roposed d i str ict p lan and 2019 Distr ict Budget as presented .

Tra i l l Cou nty Com m iss ion meets and approves the p roposed d i str ict p l a n and 2019 D i str ict Budget as p resented .

P roposed d i str ict p lan i s subm itted e lectron ica l ly to ND OHS . September 1, 2018 Stee le County Soci a l Services personne l t ra ns it ion to t he same

personne l po l i cy manu a l a n d t ime report ing system as Tra i l l County Soci a l Services pe rsonne l . Th is i s out l i ned in the proposed d i str ict p l a n .

September 2018 A u n iform te lephone system is i ntegrated for the Tra i l l County Soc i a l Services offi ce and Stee le County Socia l Services offi ce a l lowi ng the two to work as one

October 15 , 2018 OHS p rovides feed back rega rd i ng the p roposed d i str ict p l a n . Add it iona l fi sca l i nfo rmation i s req uested a long with req uests to i n c l ude citat ion of va r ious sect ions of statute a long with c la rif icat ion of personne l d ut ies , pos it ion num bers, and ass ignment .

October 22, 2018 Draft amended p l a n sent e lectron i ca l ly to ND OHS to he lp fac i l itate d i scuss ion v ia confe rence ca l l for the fo l lowi ng day. •

October 23, 2018 Conference ca l l with ND DHS l ega l and fisca l staff a nd K im Jacobson • to review the p roposed amended p l a n and its com p l i a nce with depa rtmenta l expectat ions . D raft amended p l a n is verba l ly app roved .

October 25, 2018 P resentat ion of the amended d i str ict p l a n to the Tra i l l County Soci a l Services Board . P l a n is app roved .

Nove m be r 6 , 2018 P resentat ion of the amended d i str ict p l a n to the Stee le County Socia l Service Boa rd . P l a n is a pp roved .

Nove mber 6 , 2018 P resentat ion of the amended d i str ict p l a n to the Stee le County Com m iss ion . P l a n is approved .

Nove m ber 8, 2018 P resentat ion of the amended d i str ict p l a n to the Tra i l l County Soc i a l Service Boa rd . P l an is app roved .

Nove m ber 16, 2018 Received offic i a l app rova l of d i str ict p l a n by ND DHS Decem ber 2018 - Convers ion to M icrosoft 365 a l l owi ng a l l d i str ict emp loyees to sha re J a n u a ry 2019 fi l es, work unde r the same p l atform, etc.

Convers ion to a new ema i l a dd ress fo r a l l Agass iz Va l l ey Soci a l Service D istr ict emp loyees.

Conversion to a new l i ab i l ity po l i cy for the Agass iz Va l l ey Soci a l Service D istr ict Board, emp loyees, a n d p roperty .

• F i n a l i zat ion and i ntegrat ion of n ew bus i ness stat io n a ry, s ignage a nd ma rket ing a n nounc ing new n a m e a nd re inforc ing contact i nformat ion . Un ificat ion to one IT p rovider fo r a l l d i str ict offices.

J a n u a ry 2, 2019 Agass iz Va l ley Soci a l Services D i st r i ct p l a n i s fu l ly executed . Th is i nc l u des lega l n ame, bus in ess p ract i ces, governess, fi sca l operat ions, emp loyee benefit and compensat ion p ract ices, and p roperty.

J a n u a ry 16, 2019 F i rst fo rm u l a payment received from N D OHS for Agass iz Va l l ey Soci a l Services D i str ict.

Cont i n u a l Educat ion o f boards, personne l , a nd Com m iss ions

Lega l counse l and review of documents

Cu ltu re b u i l d i ng and messagi n g

P rob lem-solv i ng and vis io n i ng

*Required special meeting notice under open meeting law .

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Multicounty District Organ izational Timel ine Survey

Agassiz Va l ley Socia l Services District (Tra i l l and Steele County) Responses

Do the counties that fo rmed you r d i str ict have a h i story of working together? If yes, how long?

What was the t ime between you r orga n izat iona l meet ing a nd the meeting that fi na l ized the p l an?

What was the t ime for when you sent the p la n to OHS and when you rece ived approva l from DHS? D id you have a request for more informat ion or a req uest fo r answer quest ions about you r p l an? Were there a ny HR ba rr ie rs? If so, what were they?

Yes - prior joint powers agreement that lasted mu lt ip le yea rs that ended i n the late 1990s. Tra i l l a nd Stee le Count ies began co l l a borat i ng aga i n on 3/1/18 . Th i s was d riven by the resignat ion of the Stee le County D i recto r who a l so perfo rmed a l l case management services fo r Stee le County. Tra i l l County ass isted by provid i ng a l l a dm i n istrative, County D i recto r, superviso ry ( a l l programs) , HCBS case ma nagement, ch i ld we lfa re (CPS, foster ca re, foste r ca re l icens i ng, ch i l d ca re l i cens i ng, and in -home services) to Stee le County. Th is he l ped greatly i n trust bu i l d i ng and re lat ionsh ip development . I t was a l so d riven by need . F i rst meeting to sta rt d i scuss ion was Februa ry 22, 2018 with d i scussions to co l l a borate . Th is meet ing was i n it iated by Stee le County and was i ntended to be a tem po ra ry s ituat ion . F i rst jo int boa rd meeting to d iscuss the feas ib i l ity and des i rab i l ity of fo rm ing a mu lticounty socia l service d i str ict was he ld on May 23, 2018 . Both Tra i l l County and Stee le County Soc ia l Service Boa rd approved the proposed d istrict p la n on J u ly 18, 2018 . The proposed d istr ict p lan was then presented to each respect ive County Comm iss ion . Th i s was accomp l ished by August 7, 2018. P l an was subm itted e lectron ica l ly to ND OHS on August 7, 2018 (same day ) . Req uest fo r fu rther informat ion was rece ived i n Octobe r 15 , 2018 . At that po in t work began immed iately a nd both soci a l service boa rds a nd both Commiss ions had to aga i n a pprove the plan as amended . Th is was accompl i shed on November 6, 2018 a nd the a mended p l an was subm itted to ND OHS on that same date. Subm itted plan on August 7, 2018. P l an approved by ND DHS on November 14, 2018 . Rece ived notificat ion loca l ly v ia sta nda rd ma i l on November 16 , 2018 .

Yes - b rief exp la nat ions a nd add it iona l fi na ncia l info rmat ion were requested

Steele County had adequate t ime to review the Tra i l l County pay adm in istrat ive system and adopted that same ph i losophy. Stee le County employee sa l a r ies were adjusted pr ior to the d is!rict be ing formed to br ing the e m ployees to par with Tra i l l County. Benefit p la ns, etc. were ve ry s im i l a r . Al l employees of the d i str ict a re now cons idered Tra i l l County emp loyees a nd rece ive the benefit p lan cons ist with Tra i l l County. The on ly exception was for cu rrent Stee le County emp loyees were gra ndfathered in with the i r rate of ND P ERS ret i rement payment . The i r rate of em ploye r p rovided payment was h igher than Tra i l l ' s . We

Were there any other ba rr iers?

were advised lega l ly not to adve rse ly impact the emp loyees, so they a re gra ndfathered in at their P ERS rate . Moving forwa rd, any new employee, rega rd less to location wi l l fo l low Tra i l l County' s compensat ion and benefit package. We inc luded these processes i n the p l an even though this i nfo rmat ion was not requ i red by statute . Time needed to expl a i n, compa re, p l an and transit ion . There is no tem plate fo r a d i str ict p lan - you need to read code to understa nd what i s asked . M a ny orga n izat iona l items needed to be accomp l i shed for successfu l tra nsit ion ing (jo int budgeta ry process, l i ab i l ity i n su ra nce, a new ND I R F p l an fo r the d istrict, tra nsfe rring veh ic le t it les, ma rket i ng, phone system tra nsit ion ing, IT p l ann i ng, cu l ture sh ift for pe rsonne l, etc . ) . Th is adds to the complexity of the transit ion . The newest tra ns it ion we a re fac ing now is working with a new boa rd and lea rn ing to work with one another. States Attorney engagement was key to successfu l informat ion, lega l it ies a nd transit ion ing.

Centra l Pra i rie Socia l Services District (Wel l s, Eddy, and Foster Counties) Responses

Do the counties that Yes. In 1989, Foster County was contracted to provide a d i recto r ( E d formed you r d i str ict have Ch rist) to We l l s County. I n November of 1989, a Tri-County Soci a l Service a h istory of working Boa rd was fo rmed with gu ida nce from NDACO and DHS. In Apri l 1990, together? If yes, how Foster County was contracted to provide a d i recto r (Ed Ch rist) to Eddy long? County. In M ay 1990, We l l s County provided a CPS soci a l worker (John

Mogren ) . I n J u ly o f 1992, We l l s provided E l ig ib i l ity (She i l a G rosgebauer -t ime excha nge ) . Februa ry of 1989, Foster bega n provid ing TAN F ( Deb Hoppe) - t ime exchange . Janua ry o f 2000, a l l 3 counties began staff sha r ing . 2005, M u lt i-County CPS worker with 100% gra nt from DHS . I n Feb . o f 2006, SW Supervisor posit ion was created with costs sha red a s per the Foster/Eddy/We l l s formu la (determined by l and va l uat ion , case load , a nd popu lat ion - We l l s 42%, Foster 32%, and Eddy 26%) deve loped i n 1989 . I n J une o f 2007, t he Foster Ca re SW posit ion was created with the cost shared as per the fo rmu la and % re imbursed by HDS. I n J une 2008, Adu lt Services SW posit ion was shared (50/50) between Eddy a nd Foste r count ies . The Tri-County Agreement was updated in June of 2015 to We l l s County 42%, Foste r County 34%, and Eddy County 24% us ing 2014 est imated census numbers . Tri-County Agreements were signed a nnua l ly by the Tri-County Boa rd .

What was the t ime In December of 2017, the Tri-County Boa rd began d iscuss ing fo rm ing of a between your d i str ict, w i th fu rther d iscussion at the J anuary 8, 2018 meet ing. I t was orga n izat iona l meeting decided that Steve Reiser of Da kota Centra l wou ld be invited to the next and the meeting that Tri-County meeting to d i scuss the format ion of a d i str ict, process fi na l ized the p l an? i nvo lved, etc. Aud ito rs from the th ree counties, comm issioners, a nd

leg is lators were a lso invited to the Februa ry 6, 2018 meet i ng. Steve Reiser

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presented, a nd the Tr i-County Boa rd dec ided that the Eddy/Foster/We l l s • d i rector shou l d sta rt work ing on the Distr ict P l a n . The Distr ict P l an was a pproved by the Tri-Cou nty Boa rd on May 14, 2018 and was approved be the Eddy and Foste r Com miss ions on May 15, 2018 a nd by the Wel l s County Comm iss ion on J u ne 5, 2018 .

What was the t ime fo r The District P l an was subm itted to OHS on J u ne 15, 2018 . P l an was when you sent the p l an a pproved on Novembe r 16, 2018, and s igned D istrict P l an was rece ived by to OHS a nd when you ou r agency on Novembe r 19, 2018. received a pprova l from OHS? D id you have a request Yes, br ief cha nges i n some of the word i ng was req uested, a long with fo r more informat ion o r add it iona l fi na ncia l a nd case load informat ion . a req uest fo r answer q uest ions a bout you r p l a n? Were there any HR No . The Eddy and Foste r emp loyees became We l l s emp loyees ( a l l ba rri e rs? If so, what emp loyees i n the D ist r ict a re We l l s emp loyees) , so they were a b le to were they? switch to BCBS insurance ( received better cove rage ) a nd pay less in

ret i rement as we l l . Any newly h i red emp loyees w i l l rece ive We l l s benefits . T ime has been spent switch ing ce l l phones, so they a re a l l on the same p l an, a l l veh ic les a re u nde r Wel l s cove rage, a l l computers a re under one contract with N RG, etc . A l l emp loyees wi l l be under one Posit ion Contro l Log for payro l l .

• Were there any othe r Ed it ing the D istr ict P l an, but Jonathan A lm was a lso he lpfu l i n a ss ist ing me barr iers? with th is, and I was a b l e to contact h im d i rect ly with a ny q uest ions . See

#5 a lso . I now have 1 D i st rict Boa rd i nstead of 4 boa rds ( I had each county Socia l Service Boa rd a nd the Tri-County Boa rd ) , a nd I now have one budget instead of 3, so the benefits have outwe ighed the ba rri e rs .

Dakota Centra l Social Services District (Mclean, Mercer, O l iver and Sheridan Counties) Responses

Do the counties that formed Yes. McLean, Mercer a nd Sher idan sta rted sha r ing a d i rector in 1974. you r d i st rict have a h isto ry I n 1980 a ch i ld we lfa re worker supervisor sta rted to be sha red . By of work ing together? If yes, 1996 e l ig ib i l ity superv isors and staff were sha red . Socia l worke rs fo r a l l h o w long? programs were a l so sha red . In 2002 O l ive r jo ined the other three

counties in sharing of d i rector, superv iso rs a nd staff. What was the t ime between The fi rst meeting to d iscuss a d istr ict was i n ea r ly 2005. I n November you r o rgan izationa l meet ing of 2006 the p lan was fi n a l ized and sent to OHS . and the meeting that fi n a l ized the p lan? What was the t ime fo r P l an subm itted i n Nove m ber of 2006 and fi na l a pprova l came in when you sent the p l an to December of 2006 . OHS and when you rece ived app rova l from OHS? •

SB Q, /� lf

I /"cl3/lr . #3 r;y. 9 �----------�--------------------------�

Did you have a req uest fo r more informat ion o r a req uest for a nswer questions about you r p l a n? Were there a ny H R ba rriers? I f so, what were they?

Were there a ny other ba rr iers?

Yes . There were seve ra l req uests to answer quest ions a nd fo r more informat ion . I n the end a meeti ng was sched u led to get the p rocess going as DHS was i nfo rmed we were going to be a d i str ict come J anua ry 1st whether they approved i t o r not . Yes . Merce r County had a d iffe rent hea lth insurance benefit that the staff d id not wish to g ive up . I t was decided that a l l cu rrent staff wou ld be county emp loyees of the county they were cu rrent ly emp loyed by. Any new staff wou ld be ca l led Dakota Centra l staff a nd wou l d be McLean County staff. Gradua l ly more staff were moved to Da kota Centra l and in 2013 a l l rema in i ng staff were transfe rred to Da kota Centra l . The ma i n ba rrie r Da kota Centra l h a d was that a lthough DHS recogn i zed the d i str ict a l l other p rograms did not. No accommodat ions were made thus in a l l p rograms we were fo rced to act as fou r cou nt ies . The fisca l un it recogn ized as a nd we fo rced ch i l d we lfa re to see as one as we on ly entered cases into one county on FRAM E . In e l ig i b i l ity a nd home and commun ity-based services a re sti l l treated as fou r cou nt ies . Even with the new e l ig ib i l ity system that is ro l l i ng out we a re not recogn ized as a d istrict.

Lakes Socia l Services D istr ict (Ramsey and Towner Counties) Responses

Do the counties that fo rmed your d i str ict have a h i story of working together? If yes, how long?

La kes Socia l Service D i strict was fo rmed in 2008 between Ramsey a nd Towner County. For a period i n the late 90's to about 2012 Benson County a nd La kes Soc i a l Service D istrict shared a Soc i a l Serv ice D i rector. My understa nd ing is that Benson County d id not wa nt to jo in the d i str ict formed by Ramsey and Towner County as they be l ieved i t was an d isadvantage a s they were receiving money from the state of North Da kota under ND CC 50-01 .2 -03 which provided fund i ng to counties with l and mass with in the bounds of an Ind ian Rese rvat ion -( Fund ing fo r exceptiona l c i rcumsta nces-common ly ca l l ed " I nd i an County Money" ) and the comm ission d id not want to jeopa rd ize that fund ing sou rce . I n the past 7 yea rs, we have assisted Benson County as a ne ighbor when they have been i n transit ion . Benson County has had 5 d i rectors i n 5 years a nd cu rrent ly do not have d i rector on staff and have not had a d i rector for the past yea r. Cu rrent ly, La kes Soci a l Service Distr ict and Benson County have a MOU to prov ide p rogrammatica l ly supervis ion for Home and Commun ity Services a nd Ch i l d Welfa re services. I n August of 2018, La kes Soc ia l Serv ice D istr ict Boa rd mem bers were contacted rega rd ing sta rt i ng d iscuss ions a round Benson County jo in i ng the d i strict. La kes Soci a l Service D i str ict boa rd d iscussed th i s at the September 2018 meeti ng. In Nove m be r of 2018, Benson County Soc ia l Services provided fisca l informat ion and sa l a ry i nformat ion to the D i recto r of La kes Soc ia l Services. I n Decem ber of 2018, La kes Socia l Se rvice Boa rd reviewed the fisca l informat ion provided . I n the J anua ry 22 , 2019 soc ia l se rvice boa rd meet ing, the La kes Soci a l Se rvice Boa rd p la ns to d iscuss a p l an to schedu l e a jo int

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meeting with the Benson County Soc ia l Service Boa rd in Febru a ry of 2019. This jo int meet ing w i l l focus on d i scuss ion surround ing fo rm i ng a d istrict/add i ng Benson County to the a l ready formed d i str ict . •

What was the t ime between La kes Socia l Service D istr ict- Ra msey and Towner County- was formed your orga n izationa l meeti ng in 2008 . I do not have i nformat ion rega rd ing the t ime l ines it took to and the meeting that accomp l i sh th is d i st rict p l an . fi na l ized the p l an? What was the t ime fo r N/A

when you sent the p lan to DHS and when you received approva l from DHS? Did you have a req uest for N/A

more informat ion or a request for answer quest ions about you r p l an? Were there any HR N/A

ba rrie rs? If so, what were they? Were there a ny other N/A

ba rr iers?

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Senate B i l l 21 24 - Social Serv edesign North Dakota Association of County Socia l Service D i rectors

Proposed Amendment Impact Upon Key Concerns February 5 , 20 1 9

Proposed Amendments address the fol lowing Key Concerns :

Implementation Timel ine

• Provides for t iered imp lementation stages for develop ing and fi na l iz ing a human service zone . • Al lows the work in deve lop ing the h uman service zone to be c lustered into defi ned activit ies , with estab l ished

dead l i nes , to help g u ide and trans it ion to fu l l imp lementation . • Provides for a letter of i ntent and agreement to make the zone p lan process less comp lex and clea r. • Department to deve lop temp lates to assist counties with p lan development . The template wi l l inc lude process

and content requ i rements , access po int expectations , c l ient g rievance procedu res, l i ab i l i ty considerations , and descriptions of loca l programs and services un ique to the zone .

• Key dates : Zone board created by January 1 , 2020; Zone d i rector named no later than Apri l 1 , 2020; Zone p lan due J une 30 , 2020; Department to provide response by September 1 5 , 2020 ; P lan to be effective January 1 , 202 1 .

• Provides for p rovis ions for tech n ica l assistance and support from both the Department and NDACo before , d u ring and after zone development .

• N DACo and the Department to serve as a neutra l med iator i n the event of the need for confl ict resolut ion .

Loca l Governance:

• Loca l access points a re assured th rough the amendment . The h uman service zone p lan wi l l add ress how the various access poi nts wi l l be ut i l ized with in the expectat ions estab l ished by the Department.

• C la rificat ions of ro les for zone board , zone d i rector, County Commission (s) , and Depa rtment. • Role of h uman service zone board to be expanded . The zone board wi l l h i re and supervise the human service

zone d i rector a long with consu ltat ion from the Department. • The h u man service zone board wi l l rece ive regu la r performance notificat ions from the Department regard i ng the

operat ions of the zone to help support the i r governance respons ib i l it ies and ro le . 1 1 P a g e

• uman service zone d i rector , i n partnersh ip with the D ent , sha l l develop the human service zone budget wh ich wi l l be presented to the Cou nty Commission for appropriation-approva l .

• Cla rificat ion that the appoint ing County Commission has the authority to remove h uman service zone boa rd member .

• Human service zone board compensation rates wi l l be set by the Host County Commission with consu ltat ion from the other County Commiss ions with i n the zone .

• H uman service zone board sha l l hear zone employee g rievances. • As p rovided for i n the b i l l , the zone boa rd wi l l have representation from the leg is lative body, each County

Comm ission with i n the zone , and commun ity leaders . Th is p rovides varied representation , engagement and overs ight . Th is wi l l g reate r support the state supervised , loca l ly adm in istered mode l of service admin istration and de l ivery .

Zone Employment:

• H u man service zone d i rector to be an emp loyee of the zone (pol it ical subd ivis ion of the Host County) . The h u man service zone board wi l l select , supervise , and ( if necessary) d iscip l i ne the h uman service zone d i rector with consu ltat ion from the Department . Merit system ru les wi l l conti nue to apply to a l l h uman service zone emp loyees , i nc lud ing the human service zone d i rector.

• Human service zone d i rector d ut ies amended to reflect those appropriate for a mu lti-cou nty admin istrator vs . state employee

• H u man service zone d i rector to have voti ng authority to enter the i r posit ion on record regard i ng board actions . • The transfer of the human service zone d i rector posit ions as p revious ly deta i led i n Sect ion 1 24 wi l l not occu r as

these positions wi l l rema in at the h uman service zone-leve l . • Merit system ru les and app l icable g rievance processes for adverse employment action wi l l conti nue to be i n

p lace for zone and state employees. • Zone employee compensation to be estab l ished th rough a pa rtnersh ip between the human service zone d i rector

and the Department uti l iz ing state funds and with i n approved appropriations . • Specia lty u n its to transit ion to state emp loyment (ea rly ch i ldhood l icens ing , long-term ca re e l ig ib i l ity , etc . ) .

However, these u n its may be housed a t t he zone- leve l .

2 1 P a g e

Opport s for Standard ization and Service Consistency

• Un iform I nd igent Buria l and Genera l Assistance pol ic ies and procedures to be estab l ished . • Zone p lans wi l l outl i ne programs and services un ique to the zone and a conti nuation p lan (Examples : HCBS

services (Non-SPED) , food pantries , commun ity projects , etc . ) • With in Section 27-20 , trans it ion the custody and re lated duties of post-TPR (te rmination of parenta l rights)

ch i l d ren to the human service zone d i rector.

Zone Non-Compl iance • Provides for a prog ressive d iscip l i ne-type process for dea l ing with human service zone non-compl iance issues.

This i nc ludes reserv ing the most ser ious consequences for ch ron ic , systemic , and/or eg reg ious operational matters .

• Key state posit ions designated to support and lead the service zone d i rectors and to support the human service zone boa rd . Other state positions wi l l be uti l ized to focus on service and program qua l ity assurance and tra i n i ng .

Techn ical Considerations

• The term Host County defined and incorporated to provide cla rity of intent and duty • Ch i ld Protection Team language has been updated to a l ign with p i lot project practice . • Zone b oard will elect Cha irman and Vice-Cha ir; secretary will be appo inted

3 I P a g e

PROPOSED AM E N D M E NTS TO S ENATE B I LL No . 2 1 24

Page 1 , line 1 , replace "four" with "five"

Page 1 , line 4, remove "and"

Page 1 , line 4, after " 1 4-09- 1 9" insert " , 1 4- 1 0-05, and 1 4- 1 5-0 1 "

Page 1 , line 5 , after "sections" insert " 1 4- 1 5- 1 1 , 1 4- 1 5-1 2, and"

Page 1 , line 5, after the second com ma insert "subsection 3 of section 1 4- 1 5- 1 3, sections"

Page 1 , line 6, after "26. 1 -45- 1 3" insert " , 27-20-02, "

Page 1 , line 7, remove "subsection 7 of section "

Page 1 , line 7, remove "sections"

Page 1 , line 8, after "sections" insert "27-20-38, "

Page 1 , line 8, after "27-20-44" insert ", 27-20-45, 27-20-4 7"

Page 1 , line 24, after "57-20-07. 1 " insert " , subsection 3 of section 57-20-07.3"

Page 3, line 28, after "chapters" insert " 1 4- 1 5 "

Page 4, line 2, after the first "the" insert "host"

Page 6, line 5, overstrike " budget" and insert immediately thereafter "indirect costs"

66 :;2 ,�y i2/Lt_ / 1 {f

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Page 6, line 24, replace "board of county commissioners. If the board of county" with "human service zone board for review. The human service zone director shall work with the d epartment to achieve equitable compensation for all human service zone team members within the human service zone. The human service zone director shall notify appropriate host county staff of all staffing changes for administrative purposes.

d. For purposes of this section, "host county" means the county within the human service zone where the human service zone administrative office is located and where the human service zone team members are employed."


Page 9, after line 1 9, insert:

"SECTION 9. AMENDMENT. Section 1 4-10-05 of the North Dakota Century Code is amended and reenacted as follows:

1 4-1 0-05. Assignment of children prohibited - Penalty.

No person, other than the parents, m ay assume the permanent care and custody of a child, u nless authorized so to do by an o rder or decree of a court having j u risdiction , except that a parent, upon giving written notice to the department of human services and human service zone, may place that person's own child in the home of the child's g randparent, uncle, or aunt for adoption or g uardianship by the person receiving the child. The child m ust be considered abandoned if proceedings for the adoption or guardianship of the child are not initiated by such relative within one year following the date of notice of placement. No parent may assign or otherwise transfer the parent's

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r ig hts or dut ies with respect to the care and custody of the parent's chi ld . Any such transfe r o r ass ig nment , written or otherwise , is vo id . This sect ion does not affect the rig ht of the parent to consent in writ i ng to the legal adoption of the parent's ch i ld , but such written consent does not operate to transfer any rig ht i n the ch ild i n the absence of a decree by a court having ju risd ict ion . Any person who violates the provis ions of th is sect ion is g u ilty of a class A m isdemeanor.

S ECTI O N 1 0 . AM E N D M E NT. Sect ion 1 4- 1 5-0 1 of the North Dakota Century Code is amendment and reenacted as follows :

1 4-1 5-0 1 . Defi n itions .

As used i n th is chapter , u nless the context otherwise requires :

1 . "Abandon" means :

a. As to a parent of a child not in the custody of that parent , failure by the noncustodial parent significantly without j ustifiable cause to :

( 1 ) Communicate with the child ; o r

(2) Provide for the care and support of the child as required by law.

b. As to a parent of a child in that paren t's custody:

( 1 ) To leave the child for an indefinite period without making firm and agreed plans , with the child's immediate caregiver , for the parent's resumption of physical custody;

(2) Following the child's birth or t reatment at a hospital, to fail to arrange for the child's discharge within ten days after the child no longer requires hospital care; or

(3) To willfully fail to fu rnish food , shelter, clothing, or medical atten tion reasonably sufficien t to meet the child's needs.

2. "Adult" means an individual who is not a minor.

3. "Agency" means an entity licensed under chapter 50- 1 2 to place minors for adoption.

4. "Child" means a son or daughter, whether by birth o r adoption.

5 . "Court" means the district court of this state , and when the context requires mean s the court of any other state empowered to g rant petitions for adoption.

6. "Department" means the department of human services.

7. "Genetic parent" means the biological mother or adj udicated mothe r of the adopted child, o r the presumed father or adjudicated father of the adopted ch ild u nder chapter 1 4-20 .

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8 .

9 .

"Genetic s ib l i ng" means ind iv idua ls with genetic re lat ionsh ip of s ister, brother, half-s ister, or ha lf-brother .

5l3 J(;).t../ !l/ fJ {l4

4l= I f1 · 3

" Human servi ce zone" means a county or conso l idated group of counties admin istering human services with in a designed area in accordance with an agreement or plan approved by the department .

" I dentifyi ng" i ncludes fu l l name, address , date of b i rth , te lephone number, or anyth ing that may lead to the identity of any previous ly und isclosed ind iv idua l .

�li " I nvestigat ion" i ncl udes i nformat ion obta ined regard ing the ch i ld 's h istory , a preplacement adopt ion assessment o f the prospective adoptive fam i ly , and an eva luat ion of the ch i ld 's p lacement i n the adoptive home.

44-:-R "M inor" means an ind iv idua l under the age of e ighteen years .

�.Ll.:. "Non ident ifying adoptive i nformat ion" means :

a . Age o f genet ic parent i n years at the b i rth o f t he adopted ch i l d .

b . Heritage of genet ic parent .

c. Educat iona l atta i nments, i ncl ud ing the number of years of school comp leted by genet ic parent at the t ime of b i rth of the adopted ch i ld .

d . Genera l physical appearance of genet ic parent at the t ime of b i rth of the adopted ch i l d , i nclud ing the he ight , weight , color of ha i r, eyes, s ki n , and other i nformation of a s im i l a r nature .

e . Talents , hobb ies , and specia l i nterests o f genet ic parents .

f . Existen ce of any other ch i l d ren born to e i ther genet ic parent .

g . Reasons for ch i ld be ing p laced for adopt ion o r for term inat ion of parenta l rig ht .

h . Rel ig i on o f genet ic parent .

i . Vocation of genet ic parent in general terms .

j . Health h i story of genet ic parents and b lood relat ives i n a manner prescri bed by the department .

k. Such further i nformation wh ich , i n the j udgment of the agency , wi l l not b e detrimenta l t o the adoptive parent or the adopted ind ividua l request ing the i nformat ion , bu t the add it iona l i nformat ion may not identify genet ic parents by name or locat ion .

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• �11.: "Relative" means any ind iv idual having the following relati onship to the

m inor by marr iage , blood , or adopt ion: brother , s ister, stepbrother, stepsister, fi rst cous in, uncle , aunt , or g randparent .

5{b � ) QLj �/<ti I 11 4):: 1 Pi; - �

4--4-� "Stepparent" means an ind ividual who is married to a parent of a child who has not adopted the child . "

Page 9 , line 22 , overstri ke "or" and insert immediately thereafter "and"

Page 9 , line 22 , overstr ike " respondent" and insert immed iately thereafter " respondents"

Page 9, after line 22 , insert :

"SECTION 1 2 . AMENDM ENT. Section 1 4- 1 5- 1 1 o f the North Dakota Century Code is amended and reenacted as follows :

1 . a. After the filing of a petit ion to adopt a minor, the court shall fix a t ime and place for hearing the petition. At least twenty days before the date of hearing, notice of the fil ing of the petition and of the time and place of hearing must be given by the petitioner to the department and human service zone ; any agency or individual whose consent to the adoption is required by this chapter but who has not consented ; an individual whose consent is dispensed with upon any g round mentioned in subdivisions a, b, f, h, i, and j of subsection 1 of section 1 4- 1 5-06 but who has not consented; and any individual identified by the court as a biological parent or a possible biological parent of the minor, upon making inquiry to the extent necessary and appropriate, as in proceedings under section 27-20-45, unless the individual has relinquished parental rights or the individual's parental rights have been previously terminated by a court. The notice to the department and human service zone must be accom panied by a copy of the petition.

b. Notice of the filing of a petition to adopt an adult must be given by the petitioner at least twenty days before the date of the hearing to each living parent of the adult to be adopted.

2. An investigation must be made by a licensed child-placing agency to inquire into the conditions and antecedents of a minor sought to be adopted and of the petitioner for the purpose of ascertaining whether the adoptive home is a suitable home for the minor and whether the proposed adoption is in the best interest of the minor.

3. A written report of the investigation must be filed with the court by the investigator before the petition is hea rd.

4. The report of the investigation must contain a review of the child's history ; a preplacement adoption assessment of the petitioner, including a criminal history record investigation of the petitioner; and a postplacement evaluation of the placement with a recommendation as to the granting of the petition for adoption and any other information the court requires regarding the petitioner or the minor.

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*' rJ - � 5 . An investigation and report is not req uired i n cases i n which a stepparent

is the petitioner or the individual to be adopted is an adult . The department and human service zone , when required to consent to the adoption , may give consent without making the investigation . I f the petitioner is a relative other than a stepparent of the minor , the minor has lived with the petitioner for at least nine months , no allegations of abuse or neglect have been filed against the petitioner or any member of the petitioner's household , and the cou rt is satisfied that the proposed adoptive home is appropriate for the minor, the court may waive the investigation and report required under this section.

6. The department and human service zone, when req uired to consent to the adoption , may request the licensed child-placing agency to conduct fu rther investigation and to make a written report the reof as a supplemental report to the cou rt.

7. After the filing of a petition to adopt an adult , the cou rt by o rder shall direct that a copy of the petition and a notice of the time and place of the hearing be given to any individual whose consent to the adoption is req uired but who has not consented and to each living parent of the adult to be adopted. The court may o rder an appropriate investigation to assist it in determ ining whether the adoption is in the best interest of the individuals involved.

8. Notice m ust be given in the manner appropriate under the North Dakota Rules of Civil Procedure for the service of process in a civil action in this state or in any manner the cou rt by order directs. Proof of the giving of the n otice m ust be filed with the court before the petition is heard.


14-15-12. Required residence of minor.

1. A final decree of adoption may not be issued and an interlocutory decree of adoption does not become final, u ntil the minor to be adopted, other than a stepchild of the petitioner, has lived in the adoptive home:

a. For at least six months after placement by an agency ;

b. For six months after placement by a parent in accordance with an identified relinquishment under chapter 14-15.1;

c. As a foster child for at least six months and has been placed for adoption by an agency; or

d. For at least six months after the department and human service zone or the court has been informed of the custody of the minor by the petitioner, and the department and human service zone or court has had an opportunity to observe or investigate the adoptive home .

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2 . I f a ch ild who has been placed for adopt ion d ies before t he s ix-month res idency req u i rement of subsect ion 1 is met , the court may grant the fi nal decree of adopt ion upon a fi nd ing that a proper and leg i t imate reason exists for g rant ing the final decree . "

Page 9 , after l ine 24 , i nsert :

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" 1 4-1 5-1 2 . 1 . Hea lth i nsurance requ irements for adoptees. (Effective through December 31 , 201 9)

The department or child-placing agency involved in an adoption action may at any time before a final decree of adoption, if legal custody of the ind ividual to be adopted is not held by the department , coun ty social service board, a child-placing agency , or an equivalen t office or agency outside the state, require the petitioner for the adopt ion of another individual to show proof that a health insurance policy is in effect which provides coverage for the individual to be adopted. If proof of health insurance coverage is submitted by the petitioner, no further bond of any kind may be req uired by the department or a coun ty social service board in regard to health coverage of the individual to be adopted."

Page 9, after line 25, after the second period insert "(Effective after December 31 , 201 9)"

Page 9, line 28, after "department" insert ", coun ty social service board, human service zone"

Page 1 0, after line 2, insert:

"SECTION 1 5. AMENDMENT. S ubsection 3 of section 1 4- 1 5- 1 3 of the North Dakota Century Code is amended and reenacted as follows:

3. If at the conclusion of the hearing, the court determines that the required consents have been obtained and that the adoption is in the best interest of the individual to be adopted, the cou rt may:

a. Issue a final decree of adoption; or

b. Issue an interlocutory decree of adoption which by its own terms automatically becomes a final decree of adoption on a day specified in the decree, that day may not be less than six mon ths nor more than one year after the minor was placed in the adoptive home by an agency or after the department and human service zone or court was informed of the custody of the minor by the petitioner, unless sooner vacated by the cou rt for good cause shown. In an in terlocutory decree of adoption, the cou rt shall provide for observation, investigation, and fu rther report on the adoptive home du ring the interlocutory period."

Page 1 3, line 7, overstrike "Each"

Page 1 3, line 7, replace "human service zone director or the" with "Department of human services"

Page 1 3, line 8, remove "director's designee"

Page 1 3, line 1 3, replace "human service zone" with "department of human services"

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3 , li ne 1 9 , replace "human serv ices" with "department of human serv ices"

Page 1 3 , l ine 20, remove "zone d i rector or the d i rector's designee"

Page 1 4 , li ne 1 7 , replace the second "�" with "an agreement or"

Page 1 5 , l ine 1 7 , rem ove the overstr ike over "county social"

Page 1 5 , li ne 1 7 , remove "human"

Page 1 5, li ne 1 7 , rem ove the overstr ike over "BGaffi" and insert immediately thereafter "or human service"

Page 1 6 , after line 1 7 insert :

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"S ECTION 23 . AMENDM ENT. Sect ion 27-20-02 of the North Dakota Centu ry Code is a mended and reenacted as follows :


As used in th is chapter:


a. As to a parent of a child not in the custody of that parent, failu re by the noncustodial parent significantly without justifiable cause :

( 1 ) To com municate with the child ; o r

(2) To provide for the care and support of the child as required by law; o r


( 1 ) To leave the child for an indefinite period without making firm and agreed plans, with the child's immediate caregiver, for the parent's resumption of physical custody;



2. "Abandoned infant" means a child who has been abandoned before reaching the age of one year.

3. "Aggravated circumstances" means circumstances in which a parent :

a . Abandons, tortu res, ch ronically abuses, or sexually abuses a child ;

Page No . 7

b . Fai ls to make substanti a l , mean i ngfu l efforts to secu re treatment for the parent 's addict ion , menta l i l l ness , behavior d isorder, or any comb inat ion of those condi t ions for a period equa l to the lesser of:

( 1 ) One year ; or

(2) One-ha lf of the ch i ld 's l ifet ime , measured in days , as of the date a petit ion a l leg ing aggravated c i rcumstances is fi led ;

c . Engages i n conduct proh ib ited u nder sect ions 1 2 . 1 -20-0 1 through 1 2 . 1 -20-08 or chapter 1 2 . 1 -27 .2 , i n wh ich a ch i ld is the vict im or i ntended vict im ;

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d . E ngages i n conduct that constitutes o n e o f the fo l lowing crimes , or of an offense u nder the l aws of another j u risd ict ion wh ich requ i res proof of substant ia l l y s im i l a r e lements :

( 1 ) A v io lat ion of sect ion 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02, 1 2 . 1 - 1 6-03, or 1 4-09-22 i n which the vict im is another ch i ld of the parent ;

(2) Aid i ng , abett ing , attempt ing , consp i ri ng , or so l ic it ing a v io lat ion of sect ion 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 in which the vict im is a ch i ld of the parent ; or

(3) A v io lat ion of sect ion 1 2 . 1 - 1 7-02 in which the vict im is a ch i ld of the parent and has suffered serious bod i l y i nj u ry ;

e . E ngages or attem pts to engage i n conduct , proh ib ited under sections 1 2 . 1 - 1 7-0 1 through 1 2 . 1 - 1 7-04, i n wh ich a ch i l d is the v ict im o r i ntended vict im ;

f. Has been i ncarcerated under a sentence for wh ich the l atest re lease date is :

( 1 ) I n the case of a ch i ld age n i ne or o lder, after the ch i ld 's majority; or

(2) I n the case of a ch i l d , after the ch i ld is twice the ch i ld 's current age, measured i n days ;

g . Subjects the ch i ld t o prenata l exposu re t o chron ic or severe use of a lcoho l or any contro l led substance as defi ned i n chapter 1 9-03. 1 i n a manner not l awfu l l y prescribed by a pract it ioner; or

h . A l l ows the ch i ld to be present i n an environment subject ing the ch i ld to exposure to a contro l led substance , chemical substance , or drug parapherna l i a as proh ib ited by sect ion 1 9-03. 1 -22 .2 .

4 . "Ch i ld" means an i nd ividua l who is :

a . U nder the age of e ighteen years and is not married ; o r

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• 5 .

b . U nder the age of twenty years with respect to a de l inq uent act comm itted wh i le u nder the age of e ig hteen years .

$6 ;i l:2LJ 61./u I I q # ) � - q

"Custod ian" means a person , other than a parent or lega l guard ian , who stands i n loco parentis to the ch i ld or a person to whom lega l custody of the ch i ld has been g iven by order of a cou rt .

6 . "De l inquent act" means an act desig nated a crime under the law, inc lud ing loca l ord i nances or reso lut ions of th is state , or of another state if the act occurred i n that state , or u nder federa l law, and the crime does not fa l l under subd iv is ion c of subsect ion 1 9 .

7 . "De l inquent ch i ld" means a ch i ld who has comm itted a de l i nquent act and is i n need of treatment or rehab i l itation .

8 . "Deprived ch i l d " means a ch i ld who:

a . I s without proper parental care or contro l , subsistence, education as req u i red by l aw, or other care or contro l necessary for the ch i ld 's physica l , menta l , o r emot iona l health , or mora ls , and the deprivat ion is not due pri mari l y to the l ack of fi nancia l means of the ch i ld 's parents , g uard ian , or other custod ian ;

b . Has been p laced for care or adopt ion i n v io lat ion o f law;

c . Has been abandoned by the ch i ld 's parents , guard ian , or other custod ian ;

d . I s without proper parental care , contro l , o r education as requ i red by law, or other care and contro l necessary for the ch i ld 's wel l being because of the physica l , menta l , emot iona l , or other i l l ness or d isab i l ity of the ch i ld 's parent or parents , and that such lack of care i s not due to a wi l lfu l act of commiss ion or act of omiss ion by the ch i ld 's parents , and care i s req uested by a parent ;

e . Is i n n eed of treatment and whose parents , guard ian , or other custod ian have refused to partic ipate i n treatment as ordered by the juven i l e cou rt ;

f. Was subject to prenata l exposu re to chron ic or severe use of a lcoho l or any contro l led substance as defi ned in chapter 1 9-03. 1 i n a manner not l awfu l l y prescribed by a pract i t ioner ;

g . I s present i n an env i ronment subject ing t h e ch i ld t o exposure t o a contro l led substance , chemica l substance , or d rug parapherna l ia as proh ibited by section 1 9-03 . 1 -22 .2 .

h . I s a v ict im of human trafficking as defined i n t i t le 1 2 . 1 .

9 . "Detent ion" means a phys ica l l y secure fac i l ity with locked doors and does not i nc lude she lter care , attendant care , or home detent ion .

1 0 . "D i rector" means the d i rector of j uven i l e court or the d i rector's desig nee . Page No . 9

1 1 .

1 2 .

1 3 .

1 4 .

1 5 .

s e .;? ) ;).'-J 9--/l;._/ J 1 � / t?J -ID

"F it and wi l l i ng re lat ive or other appropriate i nd ividua l " means a re lative or other i nd ividua l who has been determ ined , after cons iderat ion of an assessment that i ncludes a crim ina l h istory record i nvestigat ion under chapter 50-1 1 . 3 , to be a qua l if ied person u nder chapter 30 . 1 -27 , and who consents i n wri t ing to act as a lega l guard ian .

"Home" when used i n the phrase "to return home" means the abode of the ch i ld 's parent with whom the ch i ld formerly resided .

" Host county" means the county with i n the human serv ice zone where the human service zone admin istrative office is located and where the human service zone team members are employed .

" Human service zone" means a county or conso l idated group of count ies adm in isteri ng h uman services with i n a des ignated area i n accordance with an agreement or plan approved by the department .

"Juven i le cou rt" means the d istrict cou rt of th is state .

4-4.-1 6 . "Juven i le d rug court" means a program estab l ished i n a j ud ic ia l d istrict cons ist ing of i ntervent ion and assessment of j uven i les i nvolved i n forms of substance abuse ; frequent drug testing ; i ntense j ud ic ia l and probat ion supervis ion ; i nd ividua l , g roup , and fam i l y counse l i ng ; substance abuse treatment ; educationa l opportun it ies ; and use of sanct ions and incent ives .

� 1 7 . "Permanency hearing" means a heari ng , conducted with respect to a ch i ld who i s i n foster care , to determ ine the perm anency p lan for the ch i ld which i ncludes :

a . Whether and , if app l icab le , when the ch i l d wi l l be retu rned to the parent ;

b. Whether and , if app l icab le , when the ch i l d wi l l be p laced for adopt ion and the state wi l l f i le a petit ion for term inat ion of parenta l rights ;

c . Whether and , if app l icab le , when a fit and wi l l i ng re lat ive or other appropr iate i nd ividua l wi l l be appointed as a lega l g uard ian ;

d . Whether and , i f app l icab le , to p lace s ib l i ngs i n the same foster care , re l ative , g uard iansh i p , or adoptive p lacement , u n less it is determ i ned that the jo int p lacement wou ld be contrary to the safety o r wel l -be ing of any of the s ib l i ngs ;

e . Whether and , i f app l icab le , i n t he case o f s ib l i ngs removed from their home who are not jo int ly p laced , to provide for frequent vis itat ion or other ongo ing i nteract ion between the s ib l i ngs , u n less it i s determ ined to be contrary to the safety o r wel l -be ing of any of the s ib l i ngs ;

f. I n cases in which a compe l l i ng reason has been shown that it wou ld not be in the ch i ld 's best i nterests to return home, to have

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,# I 'RJ · t l paren tal r ights term inated , to be placed for adopt ion , to be placed with a fit and will ing rela tive , or to be placed with a legal guard ian , whether and , if applicable , when the ch i ld , aged sixteen or older , will be placed i n another planned permanent l iving arrangement . The court shall:

( 1 ) Ask the child whether the ch ild has a des i red permanency outcome of another planned permanent l ivi ng arrangement ,

(2 ) Make a jud icial determination explain i ng why another planned permanent living arrangement is the best permanency plan for the ch ild, and

(3) Iden tify the compelling reasons it continues not to be in the best i n terest of the child to return home, be placed for adoption , be placed with a legal guard ian , o r be placed with a fit and willing relative;

In the case of a child who has been placed in foster care outs ide the state in which the home of the paren ts is located, or i f the parents maintain separate homes, outside the state in which the home of the paren t who was the child's primary caregiver is located, whether out-of-state placements have been cons idered. If the child is curren tly in an out-of-state placement, the court shall determine whether the placement continues to be appropriate and in the child's best in terests; and

In the case of a child who has attained age fourteen , the services needed to assist the child to make the transition to successful adulthood.

4--e-:-1.§.,_ "Protective supervision" means supervision ordered by the court of children found to be deprived or unruly.

4-7-,-JJL "Relative" means:

a. The child's grandparen t, great-grandparen t, sibling, half-sibling, aunt , great-aunt, uncle, great-uncle, nephew, niece, or first cousin ;

b. An individual with a relationship to the child , derived through a current or former spouse of the child's paren t, similar to a relationship described in subdivision a;

c. An individual recognized in the child's community as having a relat ionship with the child similar to a relationship described in subdivision a; or

d. The child's stepparent.

�20 . "Shelter care" means temporary care of a ch ild i n physically unrestricted facilit ies.

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4--9--:-� "Unru ly ch i ld" means a ch i ld who : :# I P:J · I Z

a . I s hab itua l l y and without justificat ion truant from schoo l ;

b . I s habitua l l y d isobed ient o f t he reasonab le and lawful commands of the ch i ld 's parent , guard ian , or other custod ian and is ungovernab le or who is wi l l fu l l y i n a s i tuat ion dangerous or i nju rious to the hea lth , safety , or mora ls of the ch i ld or others ;

c . Has comm itted an offense app l icab le on ly to a ch i ld , except for an offense com m itted by a m inor fourteen years of age or o lder u nder subsect ion 2 of sect ion 1 2 . 1 -3 1 -03 or an equ iva lent local ord inance or reso l ut ion ;

d . Has comm itted an offense i n v io lat ion o f sect ion 5-0 1 -08; or

e . I s under t h e age o f fou rteen years a n d h a s purchased , possessed , smoked , or used tobacco , tobacco-re lated products , e lectron ic smoking devices , o r a lternative n icotine products in v io lat ion of subsect ion 2 of sect ion 1 2 . 1 -3 1 -03 ; and

f . I n any of the forego ing i nstances is i n need of treatment or rehab i l itat i on . As used i n th is subsect ion , "e lectron ic smok ing devices" and "a lternative n icot ine products" have the same mean ing as i n sect ion 1 2 . 1 -3 1 -03 .

20:-22 . "Wi l lfu l ly" has the mean ing provided i n sect ion 1 2 . 1 -02-02 . "

Page 1 7 , rep lace l i nes 1 th rough 17 with :

"SECTION 25. AMENDMENT. Sect ion 27-20-20 . 1 o f the North Dakota Centu ry Code is amended and reenacted as fo l l ows :

27-20-20. 1 . Petition to terminate parental r ights -When brought -Definitions. (Effective through December 31 , 201 9)

1 . A petit ion to term inate parenta l r ights may be m ade as provided under th i s sect ion and sect ion 27-20-45.

2 . Except as provided i n subsect ion 3 , a petit ion for term inat ion of parenta l r ig hts must be fi led :

a . I f the ch i ld has been i n foster care , i n t h e custody of the department or county socia l service board , or , i n cases aris ing out of an adjud ication by the court that a chi ld i s an un ru ly ch i l d , the d iv is ion of j uven i l e serv ices , for at least fou r hundred fifty out of the previous s ix h u ndred s ixty n ig hts;

b . With in s ixty days after a court o f competent j u risd ict ion has fou nd the ch i l d to be an abandoned i nfant ; or

c . With in s ixty days after a court o f competent j u risd ict ion has convicted the ch i ld 's parent of one of the fo l l owing crimes, or of an

Page No . 1 2

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5� � iJ,L} �/&,/ J q

4$ 1 PJ )3 offense under the laws of another ju risdiction which requires proof of substantially simila r elements :

( 1 ) A violation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 , or subsection 1 of section 1 4-09-22 in which the victim is another child of the parent ;

(2) Aiding , abetting , attempting , conspiring , or soliciting a violation of section 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 in which the victim is a child of the parent ; or

(3) A violation of section 1 2 . 1 - 1 7-02 in which the victim is a child of the parent and has suffered serious bodily inj ury .

3 . A petition for termination of parental rights need not be filed if:

a . The child i s being cared for by a relative approved by the department in collaboration with the county social service board ;

b. The department or county social service board has documented in the case plan a com pelling reason for determining that filing such a petition would not be in the child's best interests and has notified the court that the documentation is available for review by the court ; or

c. The department or county social service board has determined:

( 1 ) Reasonable efforts to preserve and reunify the family are required undersection 27-20-32.2 to be made with respect to the child ;

(2) The case plan provides such services are necessary for the safe return of the child to the child 's home; and



a. The date of the court's order if the cou rt :

( 1 ) Made a finding that the child has bee n subjected to child abuse or neglect;

(2) Determined that i t is unsafe or contra ry to the welfare of the child to remain in the home; and

(3) Granted custody of the child to the department or county social service board or, in cases arising out of an adjudication by the court that a child i s an unruly child, the division of juvenile services ; o r

Page No . 1 3

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Si> .;21�y :)./u/ 1 1

=i! I Ri· I q

( 1 ) The date of a hear ing under sect ion 27-20- 1 7 wh ich resu lts in reta in i ng a ch i ld in shel ter care ;

(2) The date of an order i n a d isposit iona l hearing under wh ich a ch i ld is p laced i n foster care ; or

(3) The date a ch i ld is p laced i n foster care vol untari ly and with the consent of the ch i ld 's parent .

5 . For purposes of subsect ion 2 , a ch i ld leaves foster care when :

a . The cou rt enters an order:

( 1 ) Deny ing a petit ion to g rant care , custody, and contro l of the ch i ld to the departmentcounty socia l service board or the div is ion of juven i le services ;

(2) Term inat ing an order that g ra nted custody of the ch i ld to the department, county socia l service board, or the d iv is ion of j uven i l e services ; or

(3) Appo int ing a lega l guard ian u nder sect ion 27-20-48 . 1 ;

b . The cou rt order u nder which the ch i l d entered foster care ends by operatio n of law;

c . The ch i ld is p laced i n a parenta l home by the court or a lega l custod ian other than the d iv is ion o f j uven i l e services and the lega l custod ian lacks authority to remove the ch i l d without fu rther order of the court ; or

d . The ch i ld i s p laced i n a pare nta l home by the d iv is ion of j uven i le services .

6 . For purposes of subsect ion 2 , a ch i l d i s not i n foster care on any n ight du ring wh ich the ch i ld i s :

a . On a tri a l home vis i t ;

b . Rece iv ing services at the youth correct iona l center pursuant to an adjud icat ion o f de l i nquency; o r

c . Absent without leave from the p lace i n wh ich the ch i ld was rece iv ing foster care .

7 . F o r purposes o f th is sect ion :

a . "A find ing that t he ch i ld has been subjected t o ch i ld abuse o r neg lect" means :

( 1 ) A fi nd ing of deprivat ion made under chapter 27-20 ; or Page No. 1 4

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5(3 -' ' ;)L/ :?/ 1, /ltf

;# / PJ, I�

(2) A convict ion of a person , respons ible for a child 's welfa re , for conduct involv ing the child , under chapter 1 2 . 1 - 1 6 or sections 1 2 . 1 - 1 7-0 1 through 1 2 . 1 - 1 7-04 or 1 2 . 1 -20-0 1 through 1 2 . 1 -20-08.

b . "Compell ing reason" means a recorded statement that reflects considerat ion of:

( 1 ) The child 's age ;

(2) The portion of the child 's life spent l iving in the household of a parent of the child ;

(3) The availabi l i ty of an adoptive home su i table to the child 's needs ;

(4) Whether the child has special needs ; and


c . "Department" means the departmen t of human serv ices or i ts designee, i nclud ing any coun ty social service board .

27-20-20.1. Petition to terminate parental r ights -When brought -Definitions. (Effective after December 21, 2019)

1 . A pet i t ion to term i nate parental r ights may be made as provided under th is section and sect ion 27-20-45.

2 . Except as provided i n subsection 3, a pet i t ion for term i nation of paren tal r ights m ust be filed :

a . If the child has been i n foster care, i n the custody o f the departmen t. county social service board. or human service zone, or, in cases arising out of an adjud i cation by the cou rt that a child is an u nruly child, the d iv is ion of juven ile services, for at least fou r hundred fifty out o f the prev ious s ix hundred s ixty n ights;

b. With in s ixty days after a cou rt of competent ju risd ict ion has found the child to be an abandoned i nfan t ; or

c . Within s ixty days after a cou rt of competent jurisd ict ion has convicted the child's paren t of one of the following crimes, or of an offense under the laws o f another jurisd ict ion which requ ires proof of substant ially s im ilar elements :

( 1 ) A violat ion of sect ion 1 2. 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02, or 1 2. 1 - 1 6-03, or subsection 1 of sect ion 1 4-09-22 i n which the vict im is another child of the parent ;

Page No. 1 5

58 d) ( ;) t/ J/&/19

=#I P., . /(o (2) Aid i ng , abett ing , attempti ng , consp i ri ng , or so l ic it ing a

v io lat ion of sect ion 1 2 . 1 - 1 6-0 1 , 1 2 . 1 - 1 6-02 , or 1 2 . 1 - 1 6-03 in which the vict im is a ch i ld of the parent ; or

(3) A vio lat ion of sect ion 1 2 . 1 - 1 7-02 i n which the vict im is a ch i ld of the parent and has suffered serious bod i ly i nju ry .

3 . A pet it ion for term inat ion of parenta l r ig hts need not be fi led if:

a . The ch i ld is being cared for by a re lat ive approved by the department and human serv ice zone ;

b . The department, county socia l service board, or human service zone has documented in the case p lan a compe l l i ng reason for determ i n i ng that fi l i ng such a petit ion wou ld not be in the ch i ld 's best i nterests and has notif ied the court that the documentat ion is ava i lab le for review by the cou rt ; or

c . The department or county soc ia l service board prior to January 1 , 202 1 , or the human service zone has determ ined :

( 1 ) Reasonab le efforts to preserve and reun ify the fami ly a re requ i red undersect ion 27-20-32 . 2 to be m ade with respect to the ch i l d ;

(2) The case p lan provides such services are necessary for the safe retu rn of the ch i ld to the ch i ld 's home ; and

(3) Such services have not been provided cons istent with t ime per iods described i n the case p lan .

4 . For purposes of subsect ion 2 , a ch i l d i n foster care entered foster care on t he earl ier of:

a . The date o f the cou rt's order if t he court:

( 1 )

(2)

(3)

Made a find ing that the ch i l d has been subjected to ch i ld abuse or neg lect ;

Determ ined that i t i s u nsafe or contrary to the wel fare of the ch i ld to rema in i n the home; and

G ranted custody of the ch i ld to the department, county socia l service board, or human service zone or, in cases aris i ng out of an adjud ication by the court that a ch i ld i s a n u n ru l y ch i l d , the d iv is ion o f j uven i l e services ; o r


( 1 ) The date of a heari ng u nder sect ion 27-20- 1 7 which resu lts in reta i n i ng a ch i ld in shelter care ;

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�6 ;l l,J.L/ J. / le I 14 -41 1 r, . n

(2) The date of an order i n a d ispos it iona l hear ing under which a chi ld is p laced i n foster care ; or

(3) The date a ch i ld is p l aced i n foster care vo l untari l y and with the consent of the ch i ld 's parent .

5 . For purposes of subsect ion 2 , a ch i ld leaves foster care when :

a . The court enters an order :

( 1 ) Denying a petit ion to g rant care , custody, and control of the ch i ld to the departmenthuman service zone or the d iv is ion of juven i l e services;

(2) Term inat ing an order that g ranted custody of the ch i ld to the departmenthuman serv ice zone or the d iv is ion of j uven i le services ; or

(3) Appoint ing a lega l gua rd ian u nder sect ion 27-20-48 . 1 ;

b . The court order under wh ich t he ch i l d entered foster care ends by operat ion of law;

c . The ch i ld i s p laced i n a parenta l home by the court or a lega l custod ian other than the d iv is ion of juven i le services and the lega l custod ian lacks authority to remove the ch i ld without further order of the court ; or

d . The ch i l d i s p laced i n a parental home b y the d iv is ion of j uven i le services .

6 . Fo r purposes o f s ubsect ion 2 , a ch i l d is no t i n foster care on any n ight d uring which the ch i ld i s :

a . On a tria l home vis it ;

b . Receiv ing services at the youth correct iona l center pursuant to an adjud icat ion of de l i nquency; or

c . Absent without leave from the p lace i n wh ich the ch i ld was receivi ng foster care .


a . "A fi nd ing that the ch i ld has been subjected to ch i ld abuse or neg lect" means :

( 1 ) A find ing of deprivat ion made u nder chapter 27-20 ; or

(2) A convict ion of a person , respons ib le for a ch i ld 's we lfare , for conduct i nvolvi ng the ch i l d , under chapter 1 2 . 1 - 1 6 or sect ions 1 2 . 1 - 1 7-0 1 th rough 1 2 . 1 - 1 7-04 or 1 2 . 1 -20-0 1 through 1 2 . 1 -20-08 .

Page No . 1 7

• b "Com pel l i ng reason" means a recorded statement that reflects cons iderat ion of:

( 1 ) The ch i ld 's age ;

Se> :11 -;i, lj ;;.;u I'"

# I PJ · ' '

(2) The port ion of the ch i ld 's l i fe spent l iv ing i n the househo ld of a parent of the ch i l d ;

(3) The ava i lab i l i ty of an adoptive home su itable to the ch i ld 's needs ;

(4) Whether the ch i ld has specia l needs ; and

(5) The expressed wishes of a ch i ld age ten or o lder .

c . "Department" means the department of human services or i ts designee , i nc lud ing any county socia l service board .

fl "Human service zone" means a county or consol idated group of count ies adm in i stering human services with i n a des ignated area i n accordance with an agreement or plan approved by the department . "

Page 1 9 , l i ne 2 , after "serv ices" i nsert "and human serv ice zone"

Page 1 9 , l ine 1 0 , after "agent" i nsert "and human service zone"

Page 20 , after l i ne 1 0 , insert :

"SECTION 29. AMENDMENT. Sect ion 27-20-38 of the North Dakota Century Code is amended and reenacted as fo l l ows :

27-20-38. Rights and duties of legal custodian. (Effective through December 31, 2019)

A custod ian to whom lega l custody has been g iven by the court under th is chapter has :

1 . The right to the physical custody of the ch i ld and the right to determ ine the n ature of the care , p lacement , and treatment of the ch i ld , i nc lud ing ord inary med ical care as wel l as medica l or su rg ical treatment for a serious physical cond it ion or i l l ness which i n the op i n ion of a l i censed phys ician requ i res prompt treatment , except for any l im its the court may impose.

2 . The right and d uty to provide for the care , protect io n , tra i n i ng , and education and the phys ica l , menta l , and mora l welfa re of the ch i ld , subject to the condi t ions and l im itat ions of the o rder and to the rema in i ng rights and dut ies of the ch i ld 's parents or guard ian .

3 . A duty with in th i rty days after t he removal o f a ch i l d from the custody of the parent or parents of the ch i ld for the purpose of p lacement i nto foster care , to exercise due d i l i gence to identify and provide not ice to the

Page No . 1 8

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SIB J. JJ4 -a/� { 14 # l PJ, 11

fo l l owing re lat ives : a l l parents of a s ib l i ng of the ch i l d enter ing foster ca re who have lega l custody of the s ib l i ng , a l l adu l t g randparents , and any other adu lt suggested by the parents , subject to except ions due to fam i ly or domestic v io lence , that :

a . Specifies that the chi ld has been or i s be ing removed from the custody of the parent or parents of the ch i l d ;

b . Expla ins t he opt ions t he re lat ive has under federa l , state , and local l aw to part ic i pate i n t he care and p lacement o f t he ch i l d , i nc lud ing any opt ions that may be lost by fa i l i ng to respond to the notice ;

c . Describes the requ i rements and standards to become a foster fami ly home and the addit iona l services and supports that are ava i lab le for ch i ldren p laced i n that home ; and

d . Descri bes how the re lative of the ch i l d may enter i nto an agreement with the department and county socia l service board to receive a subs id ized g uard iansh ip payment .

4 . F o r purposes of th is section , "s ib l i ng o f the ch i ld enter ing foster care" means :

a . A brother or s ister who has at least one b io log ica l or adoptive parent in common ;

b . A fictive brother or s ister wi th a s ign ificant bond as ident ified by the ch i ld or parent ; or

c . A ch i l d that wou ld have been cons idered a s ib l i ng but for the term inat ion or other d is rupt ion of parenta l rig hts , inc lud ing a death of a parent .

27-20-38. Rights and duties of legal custodian. (Effective after December 31 . 201 9)

A custod ian to whom lega l custody has been g iven by the court under th is cha pter has :

1 . The right to the physical custody of the ch i l d and the right to determ ine the natu re of t he care , p lacement , and treatment o f t he ch i l d , i nclud ing o rd i nary med ica l care as wel l as med ical o r su rg ica l treatment for a ser ious phys ica l cond it ion or i l l ness wh ich i n the opi n ion of a l i censed physic ian requ i res prompt treatment , except for any l im its the court may im pose .

2 . The right and duty t o provide for the care , p rotect io n , tra i n i ng , and educat ion and the physica l , menta l , and mora l welfa re of the ch i ld , subject to the cond it ions and l im itat ions of the order and to the rema in ing rig hts and dut ies of the ch i ld 's parents or g uard ian .

Page No . 1 9

• 3 .

� :2 JJ.,Lj [}.j& /14

qt l �- � A duty with in th i rty days after the removal of a ch i ld from the custody of the parent or parents of the ch i ld for the purpose of p lacement i nto foster care , to exercise due d i l i gence to ident ify and provide not ice to the fo l l owing re lat ives : a l l parents of a s ib l i ng of the ch i l d enteri ng foster care who have lega l custody of the s ib l i ng , a l l adu l t g randparents , and any other adu l t suggested by the parents , subject to except ions due to fam i l y or domestic v io lence , that :

a . Specifies that the ch i ld has been or is be ing removed from the custody of the parent or parents of the ch i l d ;

b . Expla ins the opt ions the re lative has under federa l , state , and l oca l l aw to part ici pate i n the care and p lacement o f t he ch i ld , i nc lud ing any options that may be l ost by fa i l i ng to respond to the notice ;

c . Descri bes the requ i rements and standards to become a foster fami ly home and the addit iona l serv ices and supports that are avai lab le for ch i l d ren p laced i n that home ; and

d . Descri bes how the re lat ive of the ch i ld may e nter i nto an agreement with the department and human service zone to rece ive a subs id ized g uard iansh ip payment .

4 . For purposes of th is section , "s ib l i ng of the ch i ld enteri ng foster care" means :

a . A brother or s ister who has at least one b io log ical or adoptive parent in common ;

b . A fictive brother or s ister with a s ign ificant bond as identif ied by the ch i l d or parent; or

c . A ch i ld that wou ld have been cons idered a s ib l i ng but for the term inat ion or other d is rupt ion of parenta l r ig hts , i nc lud ing a death of a parent . "

Page 20 , after l i ne 3 1 , insert :

"SECTION 31 . AMENDMENT. Sect ion 27-20-45 of the North Dakota Century Code is amended and reenacted as fo l lows :

27-20-45. Proceeding for termination of parental r ights. (Effective through December 31 , 201 9)

1 . The petit ion m ust com ply with sect ion 27-20-2 1 and state c learly that an order for term inat ion of parenta l r ig hts i s requested and that the effect wi l l b e a s stated i n sect ion 27-20-46.

2 . I f both of the natura l parents o f the ch i l d are not named i n the peti t ion e i ther as petit ioner or as respondent , the cou rt sha l l cause i nqu i ry to be made of the petit ioner and other appropriate persons i n an effort to

Page No . 20

-s 13 � ' ';). '-I 9-/u /i q

identify an un named parent . The i nqu i ry m ust i nc lude , to the extent necessary and appropriate , a l l of the fo l l owing :

:#- I PJ· � \

a . Whether any man is presumed to be the father o f the ch i l d under chapter 1 4-20.

b . Whether the natural mother of the ch i ld was cohabit ing with a man a t the t ime of concept ion or b i rth o f the ch i l d .

c . Whether the natural mother o f the ch i l d has rece ived from any man support payments or prom ises of support with respect to the ch i ld or i n con nect ion with her preg nancy.

d . Whether any person has forma l l y or i nforma l l y acknowledged or declared that person 's poss ib le parentage of the ch i ld .

e . Whether any person cla ims any rig ht to custody o f the ch i ld .

3 . The court sha l l add as respondent to the petit ion and cause to be served with a summons any person identif ied by the court as an u nnamed parent , un less the person has re l i nqu ished parenta l rig hts , or parental rig hts have been previous ly term inated by a cou rt .

4 . I f the cou rt , after i nqu i ry , is unab le to ident ify an unnamed parent and no person has appeared i n t he proceed ing c la im ing to be an unnamed parent of the chi ld o r to have any rig ht of custody of the ch i ld , the cou rt sha l l enter an order term inat ing a l l parenta l r ights of the unnamed parent with reference to the ch i ld and the parent and ch i ld re lat ionsh ip .

5 . I f a petit ion for term inat ion o f parenta l rig hts is made by a parent o f the ch i ld under th is sect ion or if a parent consents to term ination of parenta l r ig hts under sect ion 27-20-44 , that parent i s ent it led under sect ion 27-20-26 to lega l cou nse l du ring a l l stages of a proceed ing to term inate the parent and ch i ld re lat ionsh ip .

6 . Subject to the d isposi t ion of an appea l , u pon the expi rat ion of th i rty days after an order term inat ing parenta l r ights is issued u nder th is sect ion , the order cannot be quest ioned by any person , i nc lud ing the petit ioner , in any manner, or upon any g round , i nc lud ing fraud , m is representation , fa i l u re to g ive any requ i red not ice , or l ack of j u risd ict ion of the part ies or of the subject matter, u n less the person reta i ned custody of the ch i l d .

7 . At least ten days before t he petit io n is heard , t he c lerk of d istrict court o r j uven i le court sha l l provide a copy o f t he petit ion and summons , i f any , to the county socia l service board and the department of human services .

27-20-45. Proceeding for termination of parental r ights. (Effective after December 31 , 201 9)

1 . The petit ion m ust com ply with sect ion 27-20-2 1 and state c learly that an order for term inat ion of parental r ig hts is requested and that the effect wi l l be as stated i n sect ion 27-20-46.

Page No. 2 1

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513 .;) l� Y 9. /1.s, I Jq

�, f.1· c9cl 2 . I f both o f the natural parents o f the ch i l d are not named i n t he petit ion

e i ther as petit ioner or as respondent , the cou rt sha l l cause i nqu i ry to be made of the petit ioner and other appropriate persons in an effort to identify an unnamed parent . The i nqu i ry must i nc lude , to the extent necessary and appropriate , a l l of the fo l lowin g :

a . Whether any man is presumed to be the father o f the ch i ld under chapter 1 4-20 .

b . Whether the natural mother of the ch i ld was cohabi t ing with a man a t the t ime of conception or b i rth o f the ch i l d .

c . Whether t he natura l mother o f t he ch i l d has rece ived from any man support payments or prom ises o f support with respect to the chi ld or in connect ion with her pregnancy .

d . Whether any person has forma l ly or i nforma l ly acknowledged or declared that person 's poss ib le pare ntage of the ch i ld .

e . Whether any person c la ims any right to custody o f the ch i ld .

3 . The court sha l l add as respondent to the petit ion and cause to be served with a summons any person identified by the cou rt as an unnamed parent , un less the person has re l i nqu ished pare nta l rig hts , or parenta l r ights have been previous ly term inated by a court .

4. If the court, after i nqu i ry, is unable to identify an unnamed parent and no person has appeared i n the proceed ing cla im ing to be an unnamed parent of the ch i ld o r to have any rig ht of custody of the ch i ld , the court sha l l enter an order term in at ing a l l parental rig hts o f t he unnamed parent with reference to the ch i ld and the parent and chi ld re lat ionsh ip .

5 . I f a pet it ion for term inat ion o f parental rig hts is m ade by a parent o f the ch i ld under th is sect ion or if a parent consents to term inat ion of parental rights under sect ion 27-20-44 , that parent is ent i t led under sect ion 27-20-26 to legal cou nsel du ring al l stages of a proceed ing to term inate the parent and ch i ld re l at ionsh ip .

6 . Subject to the d isposit ion of an appeal , upon the expirat ion of th irty days after an order term inat ing parental rig hts is issued u nder th is sect ion , the order cannot be quest ioned by any person , i nc lud ing the petit ioner, i n any manner, or upon any g round , i nclud ing fraud , m is representation , fa i l u re to g ive any req u i red not ice , or lack of j u risd ict ion of the part ies or of the subject matter, u n less the person reta i ned custody of the ch i ld .

7 . At least ten days before the petit ion is heard , the c lerk of d istrict court or j uven i le cou rt sha l l p rovide a copy of the pet i t ion and summons , i f any , to the human service zone and the department of human services .

SECTION 32 . AMENDMENT. Section 27-20-47 of the North Dakota Centu ry Code is amended and reenacted as fo l l ows :

Page No . 22

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27-20-47. D ispos ition upon term i nat ion of pa renta l r ights . (Effective through Decem ber 3 1 , 201 9)

'6 � bl I ;;>, LI B./& ( I q --;Jt l �- 93

1 . If , upon enteri ng an order term inat ing the parental r ig hts of a parent , there is no parent having parental rig hts , the court sha l l :

a . Commit the ch i l d to the custody of the executive director of the department of human servicescounty socia l service d i rector or a l icensed ch i ld-p lac ing agency wi l l i ng to accept custody for the pu rpose of placing the ch i ld for adopt ion or , in the absence thereof, i n a foster home ;

b . Appoint a fit and wi l l i ng re lat ive o r other appropriate ind iv idua l as the ch i ld 's lega l g uard ian ; or

c. Establ i sh some other p lanned permanent l iv ing a rrangement .

2 . The custod ian has the rights of a lega l custod ian and authority to consent to the ch i ld's adoption , marriage , en l istment i n the a rmed forces of the Un ited States , and surg ical and other med ical t reatment .

3 . I f the ch i ld is n ot p laced for adopt ion with i n twelve months after the date of the order and a lega l guard iansh ip or other p lanned permanent l iv ing a rrangement for the ch i ld has not been estab l ished by a cou rt of competent jurisd ict i on , the ch i ld m ust be retu rned to the court i ssu ing the o rig ina l term i nat ion order for entry of further orders for the care , custody, and control of the ch i ld .

27-20-47. D is position upon termination of parental rights. (Effective after Decem ber 31, 2019)

1 . I f , u pon entering an order term inat ing the pare ntal r ights of a parent , there is no parent having parental r ights , the court sha l l :

a . Comm it the ch i ld to the custody of the executivehuman service zone d i rector of the department of human services or a l icensed chi ld-p lac ing agency wi l l i ng to accept custody for the purpose of p lac ing the ch i ld for adopt ion or, i n the absence thereof, in a foster home;

b . Appoint a fit a n d wi l l i ng re lat ive or other appropriate i nd ividua l as the ch i ld 's legal g uard ian ; or

c . Estab l i sh some other p lanned permanent l iv ing arrangement .

2 . The custodian has the rights of a legal custod ian and authority to consent to the ch i ld's adopt ion , marriage , en l istment in the armed forces of the U n ited States , and surg ical and other medica l treatment .

3 . I f the ch i ld i s not p laced for adopt ion with i n twelve months after t he date of the order and a lega l guard iansh ip or other p lanned permanent l iv ing a rrangement for the ch i ld has not been estab l i shed by a cou rt of com petent jur isd ict ion , the ch i ld m ust be retu rned to the court issu ing the

Page No. 23

• orig i na l term inat ion order for entry of fu rther orders for the care , custody, and contro l of the ch i ld . "

Page 22 , l i n e 1 , after the second "the" i nsert " host"

Page 22 , l i ne 1 , remove " i n "

Page 22 , l i ne 2 , remove "wh ich the human serv ice zone office is located"

Page 27 , l i ne 5, after "d i rector" insert "or department of h uman services"

Page 28 , l ine 2 , after "�" insert "human"

Page 28 , l i ne 3 , remove the overstri ke over "service" and i nsert immed iately thereafter "zone"

Page 28 , l i ne 3 , remove the overstrike over "ooa-ro" Page 28 , l i ne 3, remove "department of human services"

Page 28, l ine 4 , after "�" insert "human"

Page 28 , l i ne 4 , remove the overstrike over "service" and insert immed iately thereafter "zone"

Page 28 , l ine 4 , remove "department of human serv ices"

Page 28 , l ine 1 0 , after the underscored comma insert "or the d i rector's des ignee,"

Page 29 , l i ne 27, remove " human"

Page 29 , l i ne 27 , overstrike "service"

Page 29, l i ne 27, rep lace "zone" with "department of human services"


"2 . "Host county" means the county with i n the human serv ice zone where the human service zone adm in i strative office i s located and where the human serv ice zone team members are employed . "

Page 3 2 , l i n e 1 8 , rep lace "l' with "J"

Page 32 , l i ne 1 9 , replace the second "£" with "an agreement or"

Page 32 , l i ne 2 1 , replace "J" with "1"

Page 32 , l i ne 2 1 , rep lace "department employee" with "human serv ice zone team member''

Page 32 , l i ne 22 , rep lace "president" with "cha ir''

Page 32 , l i ne 24 , rep lace "1" with "§."

Page 32, l i ne 27 , rep lace "§." with "§"

Page 33, l i ne 7 , rep lace "§" with "Z"

Page 33 , l i ne 1 5 , rep lace ''Z" with "�"

Page 34 , l i ne 1 6 , rep lace "proposa l " with "agreement"

Page 34 , l i ne 1 7 , replace "Septem ber 1 5, 20 1 9" with "no later than December 1 , 20 1 9 . The agreement must identify the proposed counties of the human serv ice zone, host county, and ident ify the human serv ice zone board members . The department sha l l review and

Page No . 24

•

'?S � r;>,t/ :;,; u /1?

�I PJ · :J,S-approve a l l agreements in accordance with sect ion 50-0 1 . 1 -03 . The department may mod ify the agreements as specified i n sect ion 50-0 1 . 1 -03 or if some of the counties are not i nc luded i nto a human serv ice zone . I f count ies do not subm it an agreement, the department sha l l create the human serv ice zone"

Page 34 , l ine 1 7 , overstrike " , together with a plan for the creat ion of'

Page 34 , l i ne 1 8 , remove "a human serv ice zone"

Page 34 , l ine 1 8 , afte r "The" insert " board of county com m iss ioners shal l subm it a"

Page 34 , l i ne 1 8 , overstrike "m ust be prepared"

Page 34 , l i ne 1 9 , after "50-0 1 . 1 -04" i nsert "by June 1 , 2020. The department sha l l approve the plan in accordance with sect ion 50-0 1 . 1 -04 by January 1 , 202 1 . The board of county commiss ioners sha l l provide quarterly updates as requested by the department to the department after the agreement is approved unt i l the plan i s subm itted as requested"

Page 34 , l i ne 20, rep lace "proposal " with "agreement and proposed plan"

Page 34 , l i ne 27 , rep lace "2" with "an agreement and"

Page 35 , l i ne 6 , rep lace ", who must rema in " with " . The count ies ' plan m ust specify any role transit ions for human service zone team members as wel l as the procedures for team member grievances, appeals, and d iscipl i nary act ions . The cou nt ies ' plan m ust a lso permit the department authority to red uce fu l l -t ime equ iva lent pos i ti ons i n com binat ion wi th a transfer of the posit ions . The component of the plan deve loped under th is subsect ion must be consistent wi th merit system requ i rements, chapter 54-44 . 3 and correspond ing ru les, and the template developed by the department for the human serv ice zone plans under sect ion 50-06-0 1 .4 . "

Page 35 replace l i nes 7 th rough 20 with :

" 1 0 . The counties' plan must specify that reduct ions i n access poi nts may on ly be made with agreement of the human serv ice zone board, the county com m issions of affected count ies, and the department.

11. The counties' plan must inc l ude i nformation regard i ng the human service zone's l iab i l ity coverage for the human serv ice zone board, human service zone d i rector, human service zone team members, human serv ice zone property, and any un ique contractua l re lat ionsh ips with the state, other h uman service zones, or other ent i t ies .

1 2 . Count ies' sha l l i nclude a statement of agreement between the human service zone and the department a l l owing for review of proposed transfers of staff from the human service zone to the department, from the department to the human serv ice zone, or among other human serv ice zones . Approval by human serv ice zone board or the county comm iss ions is not requ i red .

Counties' sha l l i nclude a descript ion of a l l u n ique local ly-provided programs and services that the cou nt ies are propos ing to conti nue to provide with i n the human service zone and to be funded under this plan .

Count ies' agreement and plan m ust set forth t he membersh ip o f the human serv ice zone board of a human service zone . The human serv ice

Page No . 25

zone board may not consist of more than fifteen members, as determined by the boards of county commissioners . "

Page 3 7 , line 2 , replace "December 1 , 20 1 9" with "January 1 , 2020"

Page 39 , line 28, replace "proposed or budgeted" with "approved by the department"

Page 39, line 29, replace "or'' with "and"

Page 40 , line 1 3 , replace "and" with "or"

Page 40 , line 1 3 , after "department" insert ", or both,"

Page 40, line 1 4 , after the first "the" insert " host"

Page 40, line 1 7 , after the third "the" insert " host"

Page 40, line 1 8, rem ove "in which the human service zone office is located"

68 ,2 1 ;;t y ,;;/u/14

�I ·PJ · ;) 4,

Page 40 , line 20, overstrike "audit" and insert im mediately thereafter "establish procedures for the review and approval of"

Page 40, line 2 1 , after "director'' insert "or designee"

Page 40, line 23, replace ", for the county in which the h uman service zone office is located" with "of the h ost county"

Page 4 1 , line 1 , overstrike "3. The"

Page 4 1 , line 1 , remove "human service zone"

Page 4 1 , line 1 , overstrike "board of a"

Page 4 1 , line 1 , remove "human"


Page 4 1 , line 2, remove "zone"

Page 4 1 , line 2, overstrike "consists of not more than fifteen members, as determined by the plan. The"

Page 4 1 , overstrike line 3

Page 4 1 , line 4, overstrike "appointed by each county within the"

Page 4 1 , line 4, remove " human"


Page 42 , after line 22, insert :

" 1 2. Employ a human service zone director who shall serve as the president of the human service zone board .

1 3 . Collaborate with the department and other human service zones to ensure the provision of quality, effective, and efficient human services to the citizens of North Dakota . "

Page 42 , line 26, replace "department of human services" with " human service zone" Page No. 26

, l i ne 28 , replace "president" with "cha i r''

Page 43 , l i ne 2, replace "county" with " human service zone board"

Page 43 , l i ne 2 , after the fi rst "of' insert "approved and funded"

Page 43 , l ine 2 , remove "approved by the board of"

� .)J). '-I �)u/1 1

JJ. I PJ . :J l

Page 43 , li ne 3 , remove "county comm iss ioners of the county by which the staff posi t ion is employed"

Page 43 , l ine 4 , replace "county comm iss ioners or other" with "the department and"

Page 43 , l i ne 4 , after "appropriate" i nsert " host"

Page 43 , l i ne 8, after " notify" i nsert " human service zone board,"

Page 43, after l i ne 9, insert :

"7. Sha l l establ ish, i n partnersh ip with the department, equitable compensation for all human service zone team members with i n established appropriat ion.

8. Shall develop a budget for the human service zone i n partnersh ip with the department and other human service zone d i rectors to ensure the admin istrat ion of human services.

1 0.

May serve as a des ignee of the department to supervise department employees assigned to or located with i n the human service zone.

Shal l be the custod ian designee of the executive d i rector of the department for any ch i ld i n the custody of the department."

Page 43 , after li ne 2 1 , insert :

"� The department sha l l develop a system of progress ive d iscipl ine to address performance issues with i n the h uman service zone. The system shall reserve the most serious act ions for severe or chron ic fa ilu re to meet the standards adopted under subsect ion 1 .

� The department shall provide ongo ing performance notificat ions to the human service zone board and human service zone di rector related to the overall compliance with the standards of adm in istrat ion."

Page 43, l ine 22, replace "i" with "1."

Page 43 , after l ine 29, insert:

Recommend d iscipli nary act ion to the human service zone d i rector o r the human service zone board.

SECTION 65. A new sect ion to chapter 50-01 . 1 of the North Dakota Century Code is created and enacted as follows :

Human service zone director hiring.

Page No. 27

.-S6 ;;; , -� t.J 2/u/iq

::# I PJ. 2't The department shall be an active participant in the hi ri ng process of the human

service zone d i rector and shall designate a t least two ind iv iduals t o participate on the i n terview panel . "

Page 44 , l i ne 2 , remove the overstrike over the colon

Page 44 , l ine 3 , remove the overstri ke over "4-:

Page 44 , l ine 3 , remove '" 'department" "

Page 44 , l ine 4 , remove the overstrike over "2-:-"

"Department" "

Page 44 , l ine 1 2 , after the overstrike "eas+s" insert immed ia tely thereafter " "Host coun ty" means the county with in the human service zone where the human service zone adm in i strative office is located and where the human serv ice zone team members are employed"

Page 44 , l ine 1 2 , remove the overstr ike over the period

Page 45, l ine 8 , replace "from the human serv ice zone" wi th "a v ice cha i r and appo in t"

Page 45, l ine 9, remove "board"

Page 45, li ne 1 0 , replace "president" with "chai r''

Page 45, 26, replace "of forty-five dollars per day, not to exceed twen ty-five days i n any one year" wi th "established by the host coun ty comm iss ion, upon consultation wi th the other county commiss ions in the human service zone, cons is ten t wi th the rate of compensat ion for members of other appointed boards wi thi n the member coun ties and not to exceed the compensation and expense reimbursement of members of the legislative assembly"

Page 46, l ine 2 1 , replace "Audi t" with "Establish procedu res for the review and approval of'

Page 46, li ne 23, remove the overstr ike over "a,-"

Page 46, l ine 26, after "services" insert "Hi re, supervise, and take other personnel act ions related to the human service zone d i rector wi th d i rect consultation and involvement from the departmen t. Employmen t must be cons is ten t wi th the provis ions of any law, rule, order, or regulat ion of the Un i ted States or any federal agency or authori ty requ i ri ng civil service or merit standards or classificat ions as a cond i tion for provid i ng funds adm in istered by the department. A human service zone d i rector shall be h i red by April 1 , 2020"

Page 46, li ne 26, remove the overstr ike over the period

Page 46, l ine 27, remove the overstrike over "e:-" Page 46, l ine 28, after "services" insert "Hear and act on employee grievances in accordance

with the human service zone plan and i n compl iance with meri t system requ i rements"

Page 46, l ine 28, remove the overstrike of the period

Page 49, l ine 6, after "The" insert "appo in t i ng"

Page 49, l ine 8, replace "president" with "cha i r"

Page 50 , l ine 1 5 , after the second comma insert "qual ity control,"

Page No . 28

• Page 5 1 , after line 23 , insert :

-Si> JI;). '-/ {},/&,// Cf

#I rJ. J9 "3 . The department shall, by August 1 , 20 1 9, establish a template for the

development of human service zone plans including process and content requirements, access point expectations, client grievances procedures, human resources, and locally funded programs or services and how those services will be addressed .

4 . The department shall develop, with assistance from the North Dakota association of counties, a process for consultation and technical assistance for human service zone working groups by August 1 , 20 1 9 . "

Page 57 , line 6 , after "zone" insert ", u nless otherwise directed or determined by the department"

Page 59 , line 1 3 , after "The" insert "executive"

Page 59 , line 1 3 , after "director'' insert "of the department"


Page 62 , line 2, overstrike the period and insert im mediately thereafter "; and"

Page 62 , after line 2 , insert :

"i. Programs and services unique to the human service zone that have been included in the approved human service zone plan."

Page 63 , line 1 5 , replace the second ".e" with "an agreement or"

Page 68, line 1 , after "budget" insert ", approved by the state agency,"

Page 69 , line 1 6 , replace the second ".e" with "an agreement o r"

Page 83, line 22 , replace the second ".e" with "an agreement or"

Page 86, line 11 , overstrike "county social" and insert immediately thereafter "human"

Page 86 , line 1 2 , overstrike "board" and insert immediately thereafter "zone"

Page 87, line 3 , overstrike "of human services"

Page 89 , line 1 0 , replace the second ".e" with "an agreement or"

Page 93 , line 4 , replace the second ".e" with "an agreement or"

Page 94 , line 1 1 , overstrike "director of the regional human service center" and insert immediately thereafter "human service zone director who shall serve as chair"

Page 94, line 1 2 , overstrike "with the consent of the"

Page 94, line 1 3 , overstrike "director of the"

Page 94, line 1 3 , remove " human"

Page 94, line 1 3 , overstrike "service"

Page 94, l ine 1 3 , remove "zone"

Page No . 29

•

Page 94, li ne 1 8 , overstrike "shall" and insert immediately thereafter "may"

Page 96 , li ne 2, replace the second "�" with "an agreement or"

Page 97, li ne 27, replace the second "�" with "an agreement or"

Page 97, li ne 29, replace "department employee" with " human serv ice zone team mem ber"

Page 97 , li ne 30, replace "president" with "cha i r"

Page 98, li ne 20, after "Appl ication" i nsert "- Study"

Page 98, replace line 30 with :

'5 � r) l;),t./ dv/u/1 61

4F I ?j. 37J

"4 . During the 20 1 9-20 interim, the department shall consider options for allowing a human service zone to opt in to state employment . The study m ust identify u nder what conditions a transition to state employment may be des i rable for a human service zone; outline the governance process for choosing to opt in to state employment, including a description of the role of the human service zone board, county com missions, and the department; and include a template and potential timeline for any zone choosing to m ake the transition to state employment. "

Page 100, line 15, after the underscored period insert "The spending authority of the human service zone must be increased based on the approved, adjusted, or modified formula payment . "

Page 106, after line 2 8 , insert:

"SECTION 130. AMENDMENT. Subsection 3 of section 57-20-07.3 of the North Dakota Century Code is amended and reenacted as follows :

3. The amount of credit is determined by m ultiplying the company's assessed tax by a fraction , the numerator of which is the total of all formula payments calculated for the subsequent calendar year u nder section 50 34 0350-35-03 and the denominator of which is the total statewide ad valorem property tax levied in the prior taxable year. "


Page 109, line 27, replace "twenty-eight" with "twenty-th ree"

Page 109, line 30, replace " Nineteen" with " Four"

Page 109, line 30, after "zone" insert "operational"

Page 109, line 31, replace "of' with "to provide supervision and technical assistance to"


"i. Ten full-time equivalent positions to serve as quality control to the h uman service zones."


Page 1 1 0, l ine 28, replace " 1 17, 1 18, and 1 1 9" with " 1 27 th rough 131"

Page No . 30

•

Page 1 1 0 , li ne 29, replace "46" with " 1 3"

Page 1 1 0 , l ine 29 , replace "5 1 " with " 1 5"

Page 1 1 0 , l i ne 29 , replace "59" with "24"

Page 1 1 0 , l ine 29, replace "6 1 " with "27"

Page 1 1 0 , l ine 29, replace "67" wi th "32" and i nsert immediately thereafter " , 34"

Page 1 1 0 , l ine 29, replace "69" with "37"

Page 1 1 0 , l i ne 29 , replace "76" with "55"

Page 1 1 0 , l ine 29 , replace "78" with "6 1 "

45, f> :Ji I 'J. 1-f :)j� / 1 9

::If) RJ - 3 1

Page 1 1 0 , l i ne 29 , replace " 1 1 4" with "64, 66 , 69 , 7 1 through 77 , 79 through 86 , 88 through 1 24 , 1 26 , 1 32 , 1 34"

Page 1 1 0 , l ine 30, remove " 1 1 6 , 1 20 , 1 2 1 , 1 23 , "

Page 1 1 0 , l i ne 30, replace " 1 24" with " 1 35"


Renu mber accord i ngly

Page No . 3 1

S .B . 21 24 : DHS Testimony Feb 1 3 , 20 1 9

• Socia l (Human) Services Redesign (SB 21 24)

f l

{) - 13 - 1 9 5 /3 � I J i Socia l serv ices is an essent ia l l i n k to con nect cit izens with a range of prog rams across socia l determ i nants of hea lth

* ' f �

------------------ Admin istrator1 PAYOR (State2) Provider D Partner

Social Determinant

Social Services / Medical, DD & Behavioral Health Agency Partners (not

Economic Stab i l ity

Educat ion

Food

Neighborhood & Bu i lt

Env ironment

Socia l & Commun ity

Context

Health & Healthcare

Components

• Employment • I n come • Expenses • Debt

• Early Ch i ldhood • Literacy/language • Vocat ional • Higher Ed

• Hunger • Access to healthy

opt ions

• Hous ing • Transportation • Safety • Parks

• I nteg ration • Support • I nc lus ion

• Coverage • Providers • Qual ity of care

Cu ltural competenc

Eligibility TAN F, L I H EAP, Ch i l d Support,

Vocat iona l Rehab, Ch i l d ca re a ss ist .

L Ch i l d ca re

l i cens ing J l SNAP/ Food

stamps

CPS, Foste r ca re, FOSTER CARE

L { IV-e)

,---

I n-home suppo rts

Med ica id E l ig i b i l ity

Long-term care Policy & Services1 exhaustive)

EXTENDED

j <l) (.)

SERVICES fo r -� those with SM I <l)

CJ) ..c 0 --,_ 0 ..c C1l

_J C 0 (.)

RECOVERY ::::, ,_ .c ....., N utr it ion Services SUPPORT (/) C1l C

SERVICES <l) (.) I

( i n c l ud i ng Free ..c (.) ::::, ..c Through a.. ::::,

NURSING Recove ry, PATH C1l FACI LITI ES, ICFs fo r those (.) 0

expe r ienc ing _J --DD, HOME & l home lessness, .c (/)

....., C and other C1l 0

COMMUN ITY :;::; <l) (.)

BASED SERVICES programs) I <l) ,_ C ,_

:cASE MANAGEMENT (/) 0 ::::, () 0 TRADITIONAL, SBIRT, Parent's I

WAIVERS, LEAD, STATE VOUCHERS, CH IP, HOSPITAL, LSTC,

HSCs3

• Th i s i s for i l l u strative p u rposes o n ly to-ca-ptu re m ajority of p rogra ms/se rvices/ e nt it ies a n d the con nect ions t hey p rovide to soci a l d eterm i n ants of hea lth ; it i s not exha u st ive of a l l p rogra ms a nd serv ices or con nect ions

• Wh i l e othe r u b l i c e nt it ies a n d rivate stakeho lders a l so h ave a n im ortant ro l e t he a re excl uded from th i s i ctu re 1 Adm i n i strative ro le a lso i nc ludes the funct ion of l i cens i ng profess iona ls 2 Those prog rams for wh ich the State pays a large share

= Screen i ng B rief I ntervent ion & Referra l to Treatment LSTC -

ki l l s & tra ns i t ion center , H SCs = Human Service Centers

<l) (.)

:;::; (/) ::::, --, <l)

·c <l) > ::::,

S ince the 1 990s , socia l ( h uman ) serv ices costs have been absorbed by the State i ncrementa l ly

Timel i ne

Early 1 990's : Socia l serv ice de l ivery was one of largest s ing le items i n many county budgets , and one that was g rowi ng much faster than property va l ues . So count ies worked for leg is lat ion to sh ift that burden to statewide col lected taxes .

1 997 : Counties were re l i eved of the loca l share of Med ica id payments to hospita ls , doctors , and nu rs ing homes , an area over wh ich count ies had no authority to approve , set rates , or change .

2007 : The costs and employees of reg iona l ch i l d support enforcement offices were sh ifted to the State .

201 5 : The county share of foster care mai ntenance payments was sh ifted to the State .

-> As a resu lt of these trans it ions , property tax payers were left with about $80 m i l l ion per year in staff costs with g reat variation , as some taxpayers were payi ng 8 m i l ls , others over 45 m i l ls

Source North Dakota Associat ion of Count ies , SB 2206 Report to Leg i s lat ive Management

5 6 � 1 1 11 � - i 3 -I 9 -tk I f3

3

I n 20 1 7- 1 9 , the State took over fu nd i ng of socia l serv ices i n the 20 1 7 S . B . 2206 p i lot , keep ing overa l l o rgan izat iona l structu re i ntact

Subject

Fund Balances

Details

N DCC § 53-34-04(4) Total Calendar Year Formula Payment =


[Economic Assistance (EA) Rate per case x EA Most Recently Available Calendar Year Case Month Data)]

N DCC § 53-34-03(2) January 1 0th Payment = Total Calendar Year Formula Payment x 50%

N DCC § 53-34-03(3-4) June 1 5th Payment =

(Totally Calendar Year Formula Payment x 50%) - 1 st Payment +/- True Up or True Down - Amount Exceed ing Fund Balance

N DCC § 53-34-04( 1 ) 20 1 5 Net Expend itures = 20 1 5 Gross Expenditures + 25% of Three-Year Average Eligible Federally Allowable Indi rect Costs - 201 5 Services Reimbursed by Medical Assistance · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · N DCC § 53-34-04(2-3) Rate per case = 201 5 Net Expenditures / 20 1 5 Case Month Data

N DCC § 53-34-03(3) (a) Recalculated Formula Payment =

Rate per case x Most Recently Available Calendar Year Case Month Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N DCC § 53-34-03(3) (b-d)) True Up/Down = If recalculated Formula is above or below 1 05% or 95% respectively of the Total Formula payment the county will rece ive or be reduced by the difference that is more or less than 1 05% or 95% respectively

N DCC § 53-34-06 Fund balance (Effective January 1 , 20 1 9) : N DCC § 53-34-05 Counties with $2 , 000K expenditures may not exceed a fund balance of $500k N DCC § 53-34-05 Counties with less than $2 , 000k expenditures may not exceed a fund balance of $ 1 00k

• Benefits of p i lot formu la : sh ifted fund ing to the State under a more cons istent re imbursement methodology, with some flexib i l ity to adj ust for workload changes as measured by caseload

• Downsides to p i lot form u la : case load changes are on ly d river, locks i n h istorica l costs , locks i n basket of services paid for i n EA or SS rates , locks in cu rrent service leve ls even if variation �------------------------------------------� 4

•

9tJ 1- IJ.3/ 6l - 13 - ( q

Severa l p ri nci p les for zone budget i ng a re reflected i n S . B . 2 1 24 � / and fisca l note , expand i ng on the benefits of the p i lot formu la f �

Zone Budgeti ng Pri nci ples ( i n BOLD are p ri nc i p les d riv i ng p rior fo rmu la) 1

1 . Re imburse h istorica l costs of provid i ng services across zone

2 . Adj ust for d ifferences i n pay between zones and cost of l iv i ng

3 . Adj ust fo r p rocess change (enab l i ng conso l idat ion , shari ng capacity)

4 . Adj ust fo r changes to the basket of serv ices (enab l i ng specia l izat ion )

5. Adj ust for caseload i ncreases or decreases

6 . Adj ust fo r equa l iz i ng serv ice leve ls across the State , recog n iz i ng potentia l d ifferences in de l ivery modes in d ifferent zones


8 . Adj ust fo r cont i ngencies o r p ress i ng s ituations

Ran ked in order of p rio rity

1 See Section 1 30 of S . B . 2 1 24 as amended f 5

The fisca l note associated with S . B . 2 1 24 of $ 1 82 . 3m wi l l support trans it ion to new mode l of h uman serv ice zones ( 1 /2 )

Line Item ------------Projection of CY1 8 and CY1 9 program-related costs


Sub-total : Historical Costs

Revenue (MMIS Revenue Estimate)

Inflationary Increases

Sub-total : Total Costs minus Revenues plus Inflation

Compensation Equity Adjustments

Family First Legislation Implementation Investments

Contingency & Pilot Implementation

Total

Estimated Amount1 , $ Rationale / Description of Calculation

1 6 1 , 1 06 , 222 = [CY1 8 actuals]2 + [CY1 9 projection]3 = 80, 1 62 , 862 + 80 , 943 , 360

5 , 550 , 522

166,656,744

(5 , 306 , 627)

Estimate for the indirect costs is 25% of the last available full 1 2 months of data plus the costs for preparing indirect cost allocation plan

Sum of historical program-related costs and share of indirect costs

2 times the amount distributed from MMIS in CY1 8. Monies distributed to the counties from the Medicaid Management Information system (MMIS) support costs for services like home & community-based services

8 , 1 1 5 , 1 1 9 Inflationary increases are based on 2% I 3% inflators for salaries , benefits other than health, and operating costs ; health benefits are inflated at 6.4% each year

169,465,236

3 ,408, 1 1 9 The same roles at various counties are paid very differently due to historical contingencies reinforced through the rate-per case formula ; this amount would allow for bringing up compensation of lower-paid counties

7, 500, 000

1 , 926 ,645

182,300,000

Funds to support preventative services and enhanced review of residential placements under Qualified Residential Treatment Provider (QRTP) provisions

Funds to support unforeseen county expenses (e. g. , burials, overpayments) , program pilots , and scaling of best practices from pilots

1 These est imates cou ld adj u st based on most recent ly ava i lab le cost data from count ies . 2 [CY 1 8 actua ls] a re reported based on data for actua l Sa la r ies , Benefits, and Operati ng cost payments from the coun ties for CY1 8 . 3 [CY 1 9 projection ] i s ca lcu lated as the [CY 1 8 actua ls] w i th any

f 6 i nfla r of 6 .4% for on ly the est imated hea l th benefits port ion of county soc ia l serv ices spend i ng .

• The fisca l note associated with S . B . 2 1 24 of $ 1 82 . 3m wi l l

t i f 1

support trans it ion to new mode l of h u man serv ice zones (2/2 )

Line Item -----------Project ion of CY1 8 and CY1 9 prog ram-re lated costs

I nd i rect Cost Obl igat ion


Revenue (MMIS Revenue Est imate)

I nflat ionary I ncreases

Sub-total : Total Costs minus Revenues plus inflation

Compensat ion Equ ity Adjustments

Fami ly F i rst Leg is lation Implementat ion I nvestments

Cont ingency & Pi lot Implementation

Total

Estimated Amount, $ ------

1 6 1 , 1 06 , 222

5 , 550, 522

166,656,744

(5 , 306 ,627)

8 , 1 1 5 , 1 1 9

169,465,236

3,408, 1 1 9

7 , 500 , 000

1 , 926 , 645

182,300,000

1 See Sect ion 1 30 of S . B . 2 1 24 as amended

Zone Budgeting Principles Supported Zone Budgeting Principles1

• • • • • • • •

Reimburse h istorica l costs of provid ing services across zone Adjust for d ifferences in pay between zones and cost of l iv ing Adjust for process change (enab l ing consol idation , sharing capacity) Adj ust for changes to the basket of services (enab l i ng specia l izat ion) Adjust for caseload increases or decreases Adjust for equa l iz ing service leve ls across the State , recogn iz ing potent ia l d ifferences in de l ivery modes in d ifferent zones Adj ust for statewide changes in services or service leve ls Adjust for conti ngencies or pressing s ituations

7

If! FTE transfer authority is i ncl uded i n 2 1 24 for fu nct ions where State can ga i n cons istency/effic iency from specia l ization of work

Bi l l Text Design Intent I Brief Description B i l l Text Language (1 9 .8057.02000) Rationale

Reference(s) (1 9 .8057 .02000) ---------

+ From: each county operates same basket of services + To: services are d istri buted to maxim ize effic iency and cl ient outcomes

Broad ly, those functions targeted for potential transition to the State are those where work requ i res a greater special ization and content knowledge. Through special ization of work, these trans it ions wou ld ensure more consistent and efficient del ivery .

1 Needs amendmen t for cons istency on p 1. 1 4

Up to [223] 1 fu l l-time equ ivalent posit ions inc l uded i n Senate Bi l l No . 20 1 2 , as approved by the sixty-sixth leg is lative assembly, may be adjusted or increased on ly if one or more human service zones transfers powers and duties . . . Any positions added to the department of human services under th is section wou ld be posit ion transfers from the human service zones

---------------+ The conti ngent authorization for these functions reflect 2206 study comm ittee recommendat ions, as some functions were determ ined to be more efficiently performed in consol idated manner (wh ich does not mean centra l ized) + Authorizations are conti ngent because not al l may happen this b ienn i um , or a lternative strateg ies may be developed

SECTION 1 40 p . 1 35 :20-26

[4 FTEs] to serve as human service zone OHS wi l l need posit ions for operations SECTION 1 40 operational d i rectors d i rectors to oversee zone functions p . 1 36: 1 6-1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 6 FTEs] if [OHS] assumes . . . duties associated CFS committee recommendations SECTION 1 40 with foster care tra in i ng and the recru itment and inc luded : p . 1 36 : 1 9-2 1 l icens ing of fam i ly foster care homes • Estab l ish statewide foster care p . 1 37 : 1 -3

[2 FTEs] if [OHS] assumes . . . duties associated with adoption assistance e l ig ib i l ity determ ination

recru itment strategy • Reg ional ize foster care l icensi ng • Move sub-adopt negotiations to

reg ion or State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[ 1 4 FTEs] if [OHS] assumes . . . duties associated IV-E determ inations are compl icated/ SECTION 1 40 with foster care assistance or IV-E e l ig ib i l ity error-prone, and a specia l ized team p . 1 36 : 22-24 determ ination may perform better than genera l ists

[27 FTEs] if [OHS] assumes . . . duties associated I ncons istency or lack of crit ica l mass in SECTION 1 40 with ch i ld care l icens ing reg ional del ivery motivates p . 1 36 :25-26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �9.r:1.�9.! !9.�.1! .n.9 . . 9.P.�f.9.1!9.r:i.� . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 6 FTEs] if [OHS] assumes . . . duties associated EA committee suggested to outsource ; SECTION 1 40 with [L I H EAP] consol idation to State may be preferred p . 1 36 :27-29 [ 1 04 FTEs] if [OHS] assumes . . . determ ination of Some el ig ib i l ity functions , such as long- SECTION 1 40 e l ig ib i l ity and other re lated activities [for various term care e l ig ib i l ity, wou ld be more p . 1 37 :4-8 prog rams] effic iently performed at State level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , [30 FTEs] to re l ieve human service zones of The State is better positioned to perform SECTION 1 40 miscel laneous duties [e . g . , fraud investigations , duties that wou ld make human service p . 1 37 : 9- 1 1 estate col lections , th i rd party l iab i l ity, etc . ] zones less effic ient by d istraction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 0 FTEs] to serve as qua l ity control to the Qua l i ty control posit ions wi l l support and SECTION 1 40 human service zones ensure performance across zones p . 1 37 : 1 2-1 3 8

•

•

•

fJ -/ J--1 9 9 6 t(:J t/

Test imony P repa red fo r t he jf � Senate Appropriat ions Committee Februa ry 13, 2019 By : Te rry Traynor, N DACo Execut ive D i recto r

f I

RE : Senate Bi l l 2124 - Soc ia l Service Redesign

Tha n k you , C h a i rm a n Ho lm berg a nd comm ittee members, fo r t he opportun ity to a dd ress what i s l i ke l y the most s ign i fi cant and fa r- reach i ng p i ece of leg i s l a t ion to be cons i de red th i s Sess i on . As t h i s com m ittee i s awa re, the N o rth Da kota Assoc i a t ion o f Cou nt ies rep resents a l l 53 cou nt ies of our state . Our po l i cy pos it i ons a re deve loped by de legates from each , a s we l l a s i n d iv i d u a l s spec i fi ca l ly represen t i ng t he e l ected and fu l l -t i m e a ppo i nted cou nty offi c i a l s - i n c l u d i n g t he cou nty soc i a l se rv ice d i rectors . Co l lect ive ly, with t he amendments i n co rporated by t he Senate H u m a n Se rv ices Com m ittee, we stand i n support of Sen ate B i l l 2 1 24 .

C l ea r ly, our Assoc i a t ion i s fu l ly i n support of t he cont i n u at i on of state fu n d i ng fo r t he de l ivery of cou nty soc i a l se rv i ces . Th i s h a s p roven to be (a lthough i n some cases s l ight ly i n a deq u ate ) a m uch more eq u it a b l e means of taxpayer su pport of t hese v ita l se rv ices to o u r c i t i zen s .

We recogn i ze t h at w i t h state fu nd i ng there i s a n expectat ion o f greate r state contro l , a nd fu rt h e r we do not d i sagree th at there a re effic i enc i es t h at c an be obta i n ed . Fo r t h i s reason we strong ly s uppo rt t h e p i l ot p rojects underway on a p rogram bas i s to exp lo re whe re a n d how these effi c i enc i e s c an be ach i eved without e rod i ng serv ices at t he loca l l eve l .

T h e concept o f m u lt i -cou nty zones, advanced i n S82124, h a s obv ious ly been su ccessfu l on a vo l u nt a ry bas i s, a s m u lt i -cou nty a rra ngements - some i n p l ace fo r many yea rs - h ave imp roved serv ices a n d ga i n ed effi c i enc ies . The map on the i n fograp h i c i l l u strates t he seven m u lt i -cou nty d i st r i ct s i n - p l a ce a l ready, a n d where act ive d i scuss ions a re on -go i ng . Ou r Assoc i a t ion supports these loca l ly-d r iven effo rts and we be l i eve t h at S82 124 a s it comes to you from you r po l icy com m ittee p rovi de s a reasonab l e wi ndow fo r cou nt ies to work togethe r towa rds imp l ementat i on .

F u rt h e r, we a re very su pport ive the othe r amend ments to t he b i l l t h at were added i n the Senate H u m a n Serv ices Comm ittee to add ress cou nty concerns . As it comes to you r com m ittee, w e be l i eve that it i s i n exce l lent s h ape t o cont i n u e the i m p rovements a l ready begu n . We u rge th i s Comm ittee and the ent i re Sen ate to support t he n eeded fu nd i n g and the budget fl ex i b i l ity n ecessary to make th i s tra ns i t ion su ccessfu l . P l ease g ive SB2124 a Do Pass Reco m m e n d at ion .

f l

Respond i ng to t he Legi s l atu re's d i rection to p repa re a p l a n that p rovides efficient,

effective, q u a l ity h u ma n se rvices across the state, a co l l a bo rative effort was

u nde rta ken - a n d i s o ngo i ng - to i m p l ement that goa l . A co l l a bo rative tea m

d iv ided i nto g ro u ps a nd spent h u n d reds of hou rs ho l d i ng 50 meeti ngs to deve lop a

su sta i n a b l e p l a n .

Proposed Timeline

July 1 , 201 9 Bi l l Enactment

•ember 1 , 201 9 e Agreements

Zone Board

March 31 , 2020 Zone Director

Employed

June 30, 2020 F inal Zone Plan

Submittal

January 1 , 2021 Approval & Statewide

Implementation

Zone Creation - This map i l l ustrates the counties who currently have mu lti-county co l laborations a long with those who a re i n d iscuss ions .

CANADA

OM� - -t-= UAI.IS

ROlfITT TDM,ER � C,\',AlJ[R

P{l,161M

�---, Lakes &istrictl l_ MlSH

EDD¥ £utvn wffi.,ntra l'tairie_ Plains

R>SltR GRIGGS

STUTS""N f BARNES

-' �I _L _

tOGA,� la.<Ollll _ Jr_ MdNTOSH DICl<[Y

R.V 1.l

RICHLA',0

Blue = Existing Multi-County Col laborations � = Counties with Shared Management Yel low = Counties that have init iated discussions regarding col laboration l;m;;ml= Counties over the 60,000 threshold Yel low Ci rcle - Southwest 8 Counties d is�ussing further col laboration

H u m a n S e rv i c e R e d e s i g n A l l ows fo r C o n t i n u e d P ro p e rty Tax Re l i ef

State fu n d i ng wi l l e l im i nate the 20 m i l l a uthor ity cou nties have u sed i n the

past for soc i a l se rv i ces creating P ERMAN ENT p roperty tax re l i ef. f f

B- ----13-1 9 Sf;:;. /:;, I/

SB 2 124 conti n ues the Leg i s l atu re's efforts to fu l ly fu nd the d i rect costs of h uman serv ice de l ive ry with state resou rces rathe r tha n p roperty taxes,

wh i l e a l so enha nc i ng service de l ive ry fo r North Da kota ' s c iti zens .

• D i rect de l ive ry of h uman services th rough 19 mu lti -county "zones" that preserve a l l cu rrent serv ice access l ocations - counties with popu lation over 60,000 ca n be s i ng lecounty zones

• Loca l dec is ion -mak ing i n zone creation, with fina l p l an app rova l by DHS - zones to be im p lemented by J a n u a ry 1, 202 1

• Zone fina nc i a l s i n c l uded with host county fisca l a ud it

• A state fu nd i ng formu l a for d i rect costs that is tied to actua l 2018 expend itu res and state sa l a ry adjustments

• Loca l fu nd i ng of i nd i rect costs with a portion re imbu rsed by the fede ra l i n d i rect cost p l a n

• An expanded h uman service zone board of county com m iss ioners, l eg is l ators a nd othe r loca l l eaders to h i re the zone d i rector and ensu re l oca l service needs a re add ressed

• Consu ltation ro l e for DHS i n zone d i rector se l ection and c l ea r pa rtic i pation i n eva l uati ng performa nce of the d i recto r a nd zone

• Creation of fou r zone operationa l su pervisors t o p rovide techn ica l ass i sta nce, progra m superv i s ion , eva l uation , a nd su pport t o zones - bu t these FTE's wi l l be found wit h i n ex i sti ng zone emp loymena

• Al l zone e mp loyees rema i n wit h i n the . merit system as requ i red by fede ra l l aw

• Emp loyment a nd sa l a r ies of exi sti ng emp loyees wi l l be p reserved, with t ra nsfers & reass ign ments p rotected by ex isti ng ru les

• A strong p rocess of p rogressive d isc i p l i ne to ensu re perfo rma nce without endanger ing the resou rces necessa ry fo r c l i ent se rvices

• Optiona l t ra n sfe r of zone emp loyees to the state for spec ific services that may be identified for "un itization"; but a l so a l lows for zone superv i s ion of state emp loyees if they p hys i ca l ly rem a i n in the zone office

• U n ique l oca l p rogra ms to be contin ued • Statewide cons i stency i n i n d igent b u riaa'

u ltimate ly gene ra l a ss i sta nce to i nc rea. efficiency a n d gua ra ntee equ a l access

g h } l i 1

Senate B i l l 2 1 24 - Socia l Service Redes ign Senate Appropriations Committee

February 1 3 , 201 9

Cha i rman Holmberg and members of the Senate Appropriations Committee , I am

Kim Jacobson , D i rector of Agassiz Val ley Socia l Serv ices D istrict wh ich is a col laborative

of Tra i l l and Steele Counties. In add ition , I am a member of the North Dakota County

Socia l Serv ices D i rectors Association and a North Dakota Association of Counties

(N DACo) board member. Thank you for th is opportun ity to speak in support of SB 2 1 24 .

For over a decade , counties have advocated before the North Dakota legis lative

body u rg i ng that p roperty tax re l ief could be accompl ished th rough transferring social

serv ices-re lated admin istrative costs . The North Dakota County D i rector Associat ion has

h istorica l ly stressed that such re l ief cou ld be accompl ished but carefu l work wou ld need

to be done to ensure there were not un intended consequences to the vu lnerable

popu lations in wh ich we serve . To do so , we stressed that getti ng good peop le around

the tab le to strateg ize , p lan and innovate wou ld be key to such reform .

With the passage of SB 2206 during the 65 th Leg islative Assembly, important

strides were accompl ished . During the past i nterim session , counties partnered with the

Department of Human Services in not on ly im plementing the fisca l component of SB

2206 , but a lso to exp lore ways that social serv ices can be redesigned . Th is was done

with ta lented and committed ind ivid uals s itting down and working hard to beg in to

redesign our system. Throughout this process , our redesign work has focused on cl ient

service and how to best provide these services in an efficient, effective , and qual ity-d riven

manner. Wh i le our redesign work has started , there is much more to be done .

l l P a g e

c} � l /� /\°t

# 1

p I

<;- 13 a l:'1/

fJ..- t 3--/ f JJJ

f'L Senate B i l l 2 1 24 helps to frame the big pictu re . P roperty-tax re l ief efforts are

permanently ach ieved wh i le we work towards fu rther effic iencies wh i le focusing on

serv ice . Together, counties are committed to partner with the Department to bu i ld the

futu re of human service de l ivery in North Dakota .

Our support of Senate B i l l 2 1 24 is both pol icy and budgetary-based . There is

commitment for counties to partner to work together to centra l ize adm in istrative

respons ib i l it ies and to create efficiencies in overal l admin istratio n . As n ineteen zones ,

accounting , b i l l i ng , governance , and upper management costs wi l l be stream l ined . Th is

effic iency is apparent not on ly on the social serv ice-level but wi l l a lso stream l ine the

number of other county departments who prov ide support to the zones .

Ut i l iz ing state funds al lows us to work together manag ing a statewide case load

with an enti re team com mitted to meeting the needs of North Dakotans . We have already

seen success th rough the provis ion of p i lot projects . Reg ion V, inc lud ing Tra i l l and Steele

Counties , were part of the in it ia l Ch i ld Protective Services P i lot P roject . Th rough th is

project, Agassiz Va l ley prov ides ch i ld protection supervision to the workers not on ly i n

Tra i l l and Steele Counties but a lso to workers in Ransom and Sargent Counties . Rich land

County prov ides intake serv ices for Tra i l l County, Steele County, Ransom County and

Sargent County in add ition to Rich land County. We have found that shar ing resources ,

both fi nancial and personne l , have helped strengthen our services with improved

effic iency and effectiveness. Th is was made possib le due to a common fund ing sou rce ,

col laboration , innovation , and th rough erasing county boundary l i nes .

However, there are also opportun ities for us to work together to ensure we have

team members that special ize in a core area and supported by subject-matter expert

superv isors . Th is is crit ical to qua l ity serv ice but also to reduc ing the costs of employee

2 1 P a g e

•

tu rnover and burnout . Th is is particu larly critica l in our ch i ld we lfare del ivery system . The

time has come for us to work together to ensure there are access ib le and qual ity services

th roughout the state to meet the needs of our citizens .

As counties , we strongly support the fund ing structu re of SB 2 1 24 that is based off

20 1 8 h istorica l costs , a long with an inflator , with budgetary flex ib i l ity to meet varying

needs . Such flexib i l ity is critica l in order to al ign fund ing with redesigned services and to

invest potential savings from unreal ized capacity to meet service gaps .

SB 2 1 24 also encourages county buy-in . Human service zone employees are loca l

employees and supported by other county services includ ing states attorney services ,

payro l l , employee benefits admin istration , fisca l services , office space and re lated

maintenance . These are important supports that wi l l be p rovided to human service zones

in a loca l ly supported manner . In add ition , human service zones wi l l be inc luded the host

county-wide fisca l aud it to support fisca l integ rity and reporti ng .

We u rge you to support the appropriations request and flexib i l ity as p rovided for

SB 2 1 24 . The cl ients we serve are the poor and vu lnerable . The serv ices we p rov ide

are the safety net for our citizens. The flexib i l ity to have d iscretion to a l locate funds

where needed is key to ensuring citizen safety and we l lbe ing . As agencies that deal

with cris is s ituations , a n imb le and resou rcefu l response is needed . F lex ib i l ity and flu id

decis ion-making are key for provid ing the right service , at the r ight t ime , to the r ight

ind iv id ua l .

Thank you for th is opportun ity to speak in support o f SB 2 1 24 . I u rge you r

support to fund the redesign of o u r service del ivery system .

3 I P a g e

5 0 � { 'J. � 1- --'{ 3 _.,;,9

S .B. 21 24 : Department of H uman Serv ices Testimony House H u man Services Comm ittee : March 1 3 , 20 1 9

Agenda

• Overview of Socia l (Human) Serv ices


• Key Components of Po l icy i n Engrossed S . B . 2 1 24

• Append ix

0

S . B . 2 1 24 : OHS Test imony - Execut ive Summary Overview of Social (human) Services • The mission of OHS is to provide quality , eff ic ient , and effective human services that improve the lives of people • To improve lives, OHS enables access to social determinants of health when community resources are insuff ic ient • Social services is an essential l ink to connect cit izens with a range of programs across social determinants of health • To better encompass the role of "social services" in connecting people to social determinants of health , we have proposed sh i ft ing to the

term " human services" in S. B. 2 1 24 201 7 S. B. 2206 Study Context and Results • S ince the 1 990s, social (human) services costs have been absorbed by the state incrementally • In 20 1 7- 1 9, the state took over funding of social services in the 201 7 S . B . 2206 pilot, keeping overall organizational structu re intact • Payment during 201 7- 1 9, then, has been driven by caseload amounts across each of the programs at the county level; for reference,

these overall caseloads are shown (see charts) • The 201 7-201 9 legislative session in 201 7 S. B. 2206 also created an interim study to analyze pilot and develop implementation plan • From the outset of the study , there has been recognition that ND does not have comparable scale to states that have state-supervised,

county-administered programs • Studies of SNAP administrative costs indicate that the county-administered model is correlated with h igher costs • But improving programs is more than looking at structu re: process and cultural change must accompany structu ral change • To examine holist ic change, the 201 7 S. B . 2206 interim study included 4 committees focused on each area of social ( human) services • Each com m ittee submitted recommendat ions that highlighted a number of drivers of program improvements , though barriers exist today • To address process/cultu ral barriers , OHS and counties have improved programs th rough Theory of Constraint (TOC) method • The f i rst TOC pilot project - on CPS assessments - has shown early progress in part ic ipating counties • Going forward, the department will continue using the TOC method to bring continuous improvement to process/culture • However, entering a state of continuous improvement h inges crucially on the structu ral changes included in S . B. 2 1 24 • As we have examined structu re, process, and culture, gu iding princ iples emerged as f ixed points for pol icy, including no reduction in

access Key Components of Policy in Engrossed S. B. 21 24 Zone structure and timeline for zone formation: • Today's model of delivering social (human) services can be disjointed and ineff ic ient , resulting in worse outcomes for clients • S. B. 2 1 24 would sh i ft delivery of social (human) services f rom counties to zones, a hybrid state/county structu re • Proposed timeline for the formation of h uman service zones has several milestones , with completion at start of 202 1 • The department's approval of a zone agreement and plan will depend on several factors , bu i lding on multicounty district model • Human service zone di rectors are zone employees responsible for management of staff, budgeting, operations & outcomes • The zone board is composed of representatives f rom each county in zone and responsible for supervising operations Zone funding and fiscal note: • Several princ iples for zone budgeting are reflected in S. B. 2 1 24 and f iscal note, expanding on the benefits of the pilot formula • The flexibil ity of zone funding is meant to increase responsiveness to community needs and enable innovation • The f iscal note associated with S . B. 2 1 24 of $ 1 82.3m will support transit ion to new model of human service zones Other major provisions in SB 2 1 24 include provisions related to state's attorney duties, indigent burials , and termination of parental rights

• • 2

S .B . 21 24 : Department of H uman Services Testimony House H uman Services Comm ittee : March 1 3 , 20 1 9

Agenda

• Overview of Socia l (Human) Services

• 201 7 S . B . 2206 Study Context and Resu lts


• Append ix

3

The m iss ion of OHS is to prov ide q ua l i ty, effic ient , and effective h u man serv ices , wh ich improve the l ives of peop le

Mission Princ ip les

• Services and care shou ld be provided as c lose to home as poss ib le to - Maxim ize each person 's i ndependence and autonomy - Preserve the d i gn ity of a l l i nd iv id ua ls - Respect constitut iona l and civi l r ig hts

• Serv ices shou ld be provided consistently across service areas to promote eq u ity of access and cit izen-focus of del ivery

• Serv ices shou ld be adm in i stered to optim ize for a g iven cost the n u m ber served at a service leve l a l ig ned to need

• I nvestments and fu nd ing i n OHS shou ld maxim ize ROI for the most vu lnerable th rough safety net serv ices, not support economic development goa ls

• Cost-effectiveness shou ld be cons idered ho l i st ical ly, acknowledg ing potentia l u n i ntended conseq uences and a l ignment between state and federa l priorit ies

• Serv ices shou ld hel p vu l nerab le North Dakotans of a l l ages ma inta i n or enhance qua l ity of l ife by

- Support ing access to the socia l determ i nants of hea lth : economic stab i l ity, hous i ng , education , food , commun ity, and health ca re

- M itigati ng th reats to qua l ity of l ife such as lack of fi nanc ia l resou rces, emot iona l cr ises , d isabl i ng cond it ions , or i nab i l ity to protect oneself

• 4

To better encompass the ro le of "socia l serv ices" i n con nect i ng peop le to socia l determ inants of hea lth , we have p roposed sh ift i ng to the term " human serv ices" i n S . B . 2 1 24

From : Old Term inology

Socia l Services (no defin it ion)

To : New Term ino logy

Human Services = + A se rvice or ass i sta nce provided to a n i nd iv id u a l o r a n i nd iv id u a l ' s fa m i ly i n need of services or a ss i sta nce, i nc l u d i ng ch i l d we lfa re se rvices, economic ass i sta nce progra ms, med ica l service progra ms, a nd ag ing se rv ice progra ms, to ass ist the i nd iv id u a l or the i nd ivid ua l ' s fa m i ly i n ach ievi ng a nd ma i nta i n i ng bas ic se lf-suffic iency, i nc l ud i ng phys ica l hea lth, menta l hea lth, ed ucation , we lfa re, food a nd n utr it ion, a nd hous i ng .

+ A se rv ice or ass i sta nce prov ided, a dm i n iste red, or supervised by the depa rtment of h uman services i n accorda nce with cha pte r 50-06

+ Licens i ng d ut ies as adm i n iste red or supervised by the depa rtment of h uman se rvices or de legated by the depa rtment of human se rv ices to a h uman se rvice zone

5

S .B . 21 24 : Department of H uman Services Testimony House H u man Serv ices Comm ittee : March 1 3 , 20 1 9

Agenda

• Overv iew of Socia l (Human) Services

• 201 7 5 .8 . 2206 Study Context and Resu lts


• Append ix

• • 6

S i nce the 1 990s , socia l (h uman ) serv ices costs have been absorbed by the state i ncrementa l ly

Timel i ne

Early 1 990's : Socia l service de l ivery was one of largest s i ng le items i n many county budgets , and one that was g rowi ng much faster than property va l ues . So count ies worked for leg is lation to sh ift that bu rden to statewide co l lected taxes .

1 997 : Counties were re l ieved of the loca l share of Med ica id payments to hospita ls , doctors , and nu rs ing homes , an area over wh ich count ies had no authority to approve , set rates , or change .

2007 : The costs and employees of reg iona l ch i l d support enforcement offices were sh ifted to the State .

201 5 : The county share of foster care mai ntenance payments was sh ifted to the state .

-> As a resu lt of these transit ions , property tax payers were left with about $80 m i l l ion per year in staff costs with g reat variation , as some taxpayers were payi ng 8 m i l ls , others over 45 m i l ls

Sou rce · North Dakota Associat ion of Count ies . SB 2206 Report to Leg is lat ive Management

*'' g>J j\Jt 2hoh 1

7

• ' fJPJ A l lt.l-

1 n 20 1 7- 1 9 , the state took over fu nd i ng of socia l serv ices i n the ot, a/ ,i 20 1 7 S . B . 2206 p i lot , keep ing overa l l o rgan izat iona l structu re i ntact

Subject

Fund Balances

Detai ls

NDCC§53-34-04(4) Total Calendar Year Formula Payment =


[Economic Assistance (EA) Rate per case x EA Most Recently Available Calendar Year Case Month Data)]

NDCC§ 53-34-03(2) January 1 0th Payment = Total Calendar Year Formula Payment x 50%

NDCC§ 53-34-03(3-4) June 1 5th Payment =

(Totally Calendar Year Formula Payment x 50%) - 1 st Payment +/- True Up or True Down - Amount Exceeding Fund Balance

NDCC§ 53-34-04( 1 ) 20 1 5 Net Expenditures = 201 5 Gross Expenditures + 25% of Three-Year Average Elig ible Federally Allowable Indi rect Costs - 201 5 Services Reimbursed by Medical Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NDCC§ 53-34-04(2-3) Rate per case = 201 5 Net Expenditures / 201 5 Case Month Data

NDCC§ 53-34-03(3) (a) Recalculated Formula Payment =

Rate per case x Most Recently Available Calendar Year Case Month Data . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NDCC§ 53-34-03(3) (b-d) ) True Up/Down = If recalculated Formula is above or below 1 05% or 95% respectively of the Total Formula payment the county will receive or be reduced by the difference that is more or less than 1 05% or 95% respectively

NDCC§ 53-34-06 Fund balance (Effective January 1 , 20 1 9) : NDCC§ 53-34-05 Counties with $2 , 000K expenditures may not exceed a fund balance of $500k NDCC§ 53-34-05 Counties with less than $2 , 000k expenditures may not exceed a fund balance of $ 1 00k

• Benefits of p i lot formu la : sh ifted fu nd ing to the state u nder a more consistent re imbursement methodology, with some flexib i l ity to adj ust for workload changes as measu red by caseload

• Downsides to p i lot formu la : case load changes are on ly d river, locks in h istorica l costs , locks in basket of services paid for in EA or SS rates , locks in cu rrent service leve ls even if variation

• • • 8

The 20 1 7-20 1 9 leg is lative sess ion i n 20 1 7 S . B . 2206 a lso created an i nterim study to ana lyze p i lot and deve lop imp lementat ion p lan

2017 S .B . 2206 Sect ion 8

Before November 1 , 20 1 8 , the department of h uman serv ices sha l l report to the leg is lative management on the status of the p i lot prog ram and the deve lopment of a p lan for permanent implementation of the formu la estab l i shed i n sect ion 50-34-04 . The implementation p lan must i nc lude

• recommendations for case loads and outcomes for socia l serv ices , des ignated ch i l d welfare services , and economic ass istance ;

• cons iderations regard i ng the de l ivery of county socia l serv ices to ensu re appropriate and adequate leve ls of service conti nue ;

• options for effic iencies and aggregation ; • ana lys is of the potentia l reduct ion i n socia l serv ice offices , organ izations , and staff

due to consol idations ; • the feasi b i l ity and des i rab i l ity of, and potentia l t imel i ne for, trans it ion i ng county

socia l service staff to the department of human services ; • and cons iderations for overs ight and cha in of command with i n socia l services and

human services .

The implementat ion p lan must be subm itted to the s ixty-s ixth leg is lative assembly as part of the department of human services budget request and identify the estimated b ienn ia l cost of the p lan .

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• • Stud ies of SNAP adm i n istrative costs i nd icate that a cou ntyadm i n istered mode l is corre lated with h ig her costs

Cost-per-Case by Model

FY14 $ per case per month

County-adm in i stered

State-adm in i stered 1 0

' ' ' ' ' '

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Cost-per-Case for County-admin States

FY14 $ USD pe r case pe r month

Ca l iforn ia

New Jersey

North Dakota

M innesota

New York

Vi rg i n ia

Colorado

Wiscons i n

North Caro l i na

Oh io

• The cost per SNAP case is about 2 t imes h igher i n states with county-adm i n istered prog rams • Among state with county-adm in istered prog ram, N D has one of h ig hest costs per case for

SNAP at about $25 per case per month • Us ing SNAP as an i nd icator, these fi nd i ngs suggest an opportu n ity for i ncreas ing overa l l

effic iency of adm in istering prog rams i n ND , part icu larly a round e l ig i b i l i ty prog rams

Source : USDA Food a n d N utr i t ion Services. Office o f t h e I nspector Genera l aud it report on SNAP admin istrat ive costs

34

1 1

But improv i ng p rog rams is more than look i ng at structu re : p rocess and cu ltu ra l change must accompany structu ra l change

3 Key Levers for Change

•

• 3 Core Areas

- Process

- Structu re

- Cu ltu re

• Focus is on serv ice de l ivery to the cl ient i n the most effect ive and effic ient way poss ib le

• Seek to remove geog raph ic , po l i t ica l and cu ltu ra l boundaries to de l iver smart , effic ient and compass ionate human serv ices

• P rimary Stakeho lders

- I nd iv id ua ls & Fam i l ies

- Taxpayers

- Emp loyees

• 1 2

To exam ine ho l ist ic change , the 20 1 7 S . B . 2206 i nterim study i ncl uded 4 comm ittees focused on each area of serv ices

Committee Organ ization Committee Pa rtic ipants --------------------------

•

•

• P i lot study kicked off on Oct . 1 2 , 20 1 7 • Each comm ittee met about a dozen

t imes (month ly) between Oct . 20 1 7 and Sept. 201 8

(Admin = Admin istrative ; CFS = Ch i ld & Fam i ly Services ; Adu lts i nc ludes older adu lts and persons with d isab i l it ies ; EA = Econom ic Assistance)

Sou rce . SB 2206 Report to Leg islative Management

Chris Jones Sara Stolt Jason Matthews Ter Tra nor Lukas Gemar Am Erickson Steve Reiser Joe Morrissette Kim Jacobson Laural Sehn Marcie Wuitschick Tom Solber Heidi Delorme Jonathan Alm Kim Osadchuck Michelle Masset Rhonda Alie Tom Eide Chi Ammerman Marl s Baker Dennis Meier Em Burkett Karin Stave Peter Tunseth Diana Weber Kelse Bless Amanda Carlson Monica Goesen Vince Gi l lette Brenda Peterson Sidne Schock LUEiien Hart Michelle Gee Linda Brew

Diane Mortenson Dou We h Jo ce Johnson Kristen Hasbar en Nanc N ikolas-Maier Karla Kalanek Heather Steffi

ND OHS, executive d i rector The Project Co. JM Strategies ND Association of Counties (NDACo} , d i rector OHS Admin istrat ion OHS Human Resources (HR), admin istrator Dakota Central Social Services, d i rector Office of Management and Budget, d i rector Tra i l l and Steele County Social Services, d i rector OHS Fisca l , accountant DHS HR, d i rector DHS, deputy d i rector DHS Fisca l , deputy d i rector DHS Lega l , d i rector Burleigh County Social Services, d i rector Emmons County Social Services, d i rector Lake Reg ion Social Services, d i rector OHS, ch ief financial officer Cass County Social Services, d i rector DHS Ch i ld ren and Family Services (CFS}, CPS Morton County Social Services, d i rector Stutsman County Social Services, d i rector DHS CFS, reg ional representative UND CFS Tra in ing Center, d i rector DHS CFS, in-home program admin istrator DHS CFS, permanency program admin istrator DHS CFS, early chi ldhood services DHS CFS, reg ional representative Sioux County Social Services, d i rector Morton County Social Services, e l ig ib i l ity manager Cass County Social Services, e l ig ib i l ity manager Grand Forks County Social Services OHS Economic Assistance , d i rector DHS Economic Assistance , regional representative and system support and development d i rector Stark County Social Services, d i rector Hett inger County Social Services, d i rector DHS Economic Assistance, Medicaid pol icy d i rector Richland County Social Services, d i rector DHS Aging Services, d i rector DHS DD, program admin istrator DHS, publ ic i nformation officer

Al l Faci l itator and project manager Facil itator Al l Al l Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Admin istrative Committee Chi ldren and Family Services Committee Chi ld ren and Family Services Committee Ch i ldren and Family Services Committee Chi ld ren and Family Services Committee Ch i ldren and Family Services Committee Ch i ld ren and Family Services Committee Chi ld ren and Family Services Committee Chi ld ren and Family Services Committee Ch i ld ren and Family Services Committee Ch i ldren and Family Services Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee Economic Assistance Committee

Adu lt Services Committee Adult Services Committee Adult Services Committee Adult Services Committee Adu lt Services Committee Adult Services Committee Adult Services Committee

1 3

These recommendat ions h ig h l ig hted a n umber of themes for p rog ram improvements , thoug h ba rrie rs exist with o ld structu re

Theme

•

Examples from Committee Recommendations

• 2a) Move sub-adopt to a few identified experts • 2b) Sh ift foster care l icens ing to one entity per reg ion

to a l low ded icated staff to focus on it • 3a) Des ignate ag i ng/ ad u lt services staff to specia l ize

in one p rog ram if poss ib le • 4b) E l im inate the work e l ig ib i l ity workers do that isn 't

part of e l ig i b i l ity determ inat ion

• 2c) Al low counties to share l icensed foster homes across county l i nes , so that p lacements match a ch i ld 's needs and provider capab i l it ies

• 4b) Reg iona l ize e l i g ib i l ity determ ination for Med ica id coverage of foster ch i ld ren , TAN F, Med icaid long-term care , Basic Care Ass istance , etc .

• 2d) Red uce the CPS assessment from 62 to 25 days • 2e) E l im i nate red undancy/mu lt ip le leve ls of review of

l icens ing decis ions • 2f) Develop a navigator ro le to partner with CFS/Ch i ld

P rotect ion Services (CPS) • 4c) Develop the Fu l l Kit for p rocess ing p rog ram

app l ications and determ in ing e l ig ib i l ity

I mportantly, S.B . 2 1 24 does not make any of these changes ; rather, the intent of the b i l l is to address and e l im inate the barriers ( i n part icu lar, the structu ra l ba rriers) that exist to mak ing these changes or improvements today

•

Barriers to Change Today

Structu re

Rate per case fu nd ing formu la does not enable change in m ix of services p rovided , thereby p reventi ng specia l izat ion

County boundaries create s i loed operat ions , and g rant- l i ke fu nd ing formu la d is incentivizes shar ing of resou rces

Sca l i ng best p ractices across counties can be d ifficu lt due to i nstitutiona l s i los of county-based org . structu res and fund ing formu la

Address these barriers through

S.B. 2124

Process & Cu ltu re

Every county is accustomed to do ing every function ; specia l izat ion requ i res i nteg rat ion with other counties

County offices are not responsib le for p rog ram outcomes outs ide the boundaries of the i r counties

Mak ing improvements requ i res time , effort , and a wi l l i ngness to embrace changes

Address these barriers through pilot

projects

• 1 4

1 l 0P; ;;,itf

To add ress process/cu ltu ra l ba rriers , OHS and cou nt ies have 3( 1 ° 1 1 q improved prog rams th roug h Theory of Constra i nt (TOC) method

What i s Theory of Constra i nts (TOC)? • TOC is a methodo logy for identify ing the most important l im it ing factor ( i . e . constra i nt) that

stands i n the way of ach iev i ng a goa l and then systemat ica l ly improv ing that constra i nt unt i l it i s no longer the l im it ing factor. Combi ned with a focus on systems th i n ki ng , TOC can transform operat ions with i n an organ ization or system .

• The primary focus of TOC is to ident ify the constra i nts , be l ieve there is h idden capacity and app ly the " ru les of flow" to measu re the work output and the qua l ity of work.

How d id North Dakota get i nvolved in TOC? • OHS Executive D i rector Jones was i ntroduced to Kristen Cox, the Executive D i rector of 0MB i n

the Utah Governor 's Office . Ms . Cox is a lead ing expert i n TOC and fi nd ing effic iencies with i n government agencies and prog rams.

• Ms . Cox and her team v is ited North Dakota on May 1 , 20 1 8 , and provided and day- long sem inar on TOC and how i t wou ld work in socia l serv ices . A broad aud ience attended i ncl ud i ng state and county socia l serv ice system profess iona ls .

• OHS engaged Ms . Cox and her team i n a one-year contract to app ly TOC to h uman serv ices prog rams , and to mentor and tra i n OHS staff, county socia l serv ice staff, N DACo staff and consu ltants to conti nue the work i n the futu re .

Where has TOC been used? • Ch i l d Protect ion Serv ices was identif ied as the fi rst prog ram to app ly TOC . Based on a deta i led

review of CPS cases over a 1 2-month period the team identified th ree major opportun it ies for improvement .

- Engag i ng with the a l leged v ict im ( ch i l d ) immed iately. - Timel i ness of CPS assessments from i n it iat ion to complet ion . - Thorough and complete CPS assessments .

1 5

The fi rst TOC p i lot project - on CPS assessments - has shown early progress i n participati ng counties

Participating Counties, participating counties highl ighted in red Results, cumulative % of assessments

completed i n less than N day timeframe

• < 25 Days • < 45 Days • < 62 Days

89

Baseline: Pilot: Previous 1 2 Months Sept 1 7-Dec 1 6

• Within the pilot, 89% of the closed cases were closed within 62 days (the current law to complete an assessment), versus a baseline for 1 2 months of CPS cases in the pilot regions of just 40.8%.

• Additionally, 56% of the 499 closed cases were closed within 25 days, versus a baseline for 1 2 months of CPS cases in the pilot regions of only 7.35%.

• Not only has timeliness of assessments improved, but pilot regions have in some cases unlocked hidden capacity, increasing access to services and transferring staff from administrative work to direct client services

1 6

However, enteri ng a state of cont i n uous improvement h i nges crucia l ly on the structu ra l changes i ncl uded i n S . B . 2 1 24

S.B. 2124 contains provisions that are key to removing the barriers that prevent continuous improvement - a necessary (though incomplete) aspect of holistic change

1 7

As we have exam i ned structu re , p rocess , and cu ltu re , g u id i ng pri nci p les emerged as fixed po i nts for po l icy

•

G u id i ng Pri nc i p les

• No red uction i n access po i nts

• Red istr i but ion of do l la rs from ad m i n istrat ion to d i rect cl ient serv ice de l ivery

• No red uct ions i n fo rce or red uct ions i n pay ( ro les wi l l be redesig ned for some)

• P romote eq u ity in access and meet cl ients where they a re

• Promote specia l izat ion of efforts where poss ib le to imp rove cons istency of serv ice

• Promote decis ion mak ing as c lose to the cl ient as poss i b le

• • 1 8

S .B . 21 24 : Department of H uman Services Testimony House H u man Serv ices Comm ittee : March 1 3 , 20 1 9

Agenda



• Key Components of Pol icy i n Engrossed S .B . 2 1 24

- Zone structu re and timel i ne for zone formation ::::======

- Zone fund ing and fisca l note ::::======

- Other major provis ions

• Append ix

1 9

B i l l Overv iew

• D i rect de l ivery of human services i n u p to 1 9 m u lt i-cou nty "zones" that preserve a l l cu rrent service access locat ions - counties with popu lat ion over 60 , 000 may be s ing le county zones

• Loca l decis ion-making i n zone creation , with fi na l p lan approva l by OHS - zone agreement by January 1 , 2020 ; zones to be fu l ly imp lemented by January 1 , 2021

• Un ique loca l programs to be conti n ued • A state fu nd ing form u la for d i rect costs that is t ied to actua l 201 8 expend itu res and state

salary adj ustments

• Loca l fu nd ing of i nd i rect costs with a port ion re imbursed through the i nd i rect cost p lan

• An expanded h uman service zone board composed of cou nty comm iss ioners , leg is lato rs and other loca l leaders that wou ld h i re the zone d i rector and ensure loca l serv ice needs are addressed

• Consu ltation ro le for DHS i n zone d i rector selection and clear part ic i pation i n eva luati ng performance of the d i rector and zone

• Creat ion of fou r zone operationa l supervisors to provide tech n ica l assistance, prog ram su pervis io n , eva luat ion , and su pport to zones - but these FTE's wi l l be found with i n exist i ng zone emp loyment

• Al l zone em ployees wi l l rema in with i n the state's merit system as req u i red by federa l law. Employment and sa laries of existi ng employees wi l l be preserved , with transfers and reass ignments protected by a l l existi ng ru les

• A process of prog ress ive d isc ip l i ne to ensure performance without endangering the resou rces necessary for cl ient serv ices

• Optiona l transfer of zone em ployees to the state for specific serv ices that may be identif ied for specia l ization ; but a lso a l l ows fo r zone superv is ion of state emp loyees if they physica l ly rema in i n the zone office

• Statewide consistency i n i nd igent buria l and u ltimate ly genera l ass istance to i ncrease effic iency and guarantee equa l access

• • 20

S .B . 2 1 24 : Department of H uman Services Testimony House H u man Serv ices Comm ittee : March 1 3 , 20 1 9

Agenda




- Zone structure and time l i ne for zone formation

- Zone fund ing and fisca l note ::::::====

- Other major provis ions

• Append ix

2 1

Today's mode l of de l ive ri ng socia l ( h uman ) serv ices can be d isjo i nted and i neffic ient , resu lt i ng i n worse outcomes for c l ients

State supervised, county-administered structure: Visual

CFS Program & Pol icy

EA

Program & Pol icy

Ag ing Program & Pol icy

---------

_ _ ,.. ---- -

� - - - - - - - - - - - - - - - - - · · · · -

•

• • •• -, . . . , --

State supervised, county-administered structure: Detail

- The State of North Dakota ' s state superv ised county adm in i stered socia l de l ivery model cons ists of multiple management layers of supervision to deliver social se rvices .

- The Department of Human Services Program and Policy provide administrative oversig ht, ensure federal and state report ing comp l iance , create and update pol icy and adm in i strative ru le , and ensure Human Serv ice Center (HSC) adm in istrative ru le comp l iance.

- The DHS Regional Representatives are part of the Field Services function and are typica l ly housed i n HSCs . They are responsible for provid ing adm in istrative overs ight and technical assistance for County Socia l Serv ices. Add it iona l ly, they are respons ib le for approv ing payments , l i censes and other decis ions . -

-

--

County Social Services are responsible for administering the prog rams as directed by the State. Along with these th ree layers , each layer reports up separately or to other entities all together .

- Prog ram and Po l icy do not d i rectly oversee the F ie ld and Reg iona l Representatives and the Reg iona l Representatives d o not d i rectly oversee County Socia l Serv ices , as they report up through County Commiss ions .

- However, d ue to c l ient privacy protections , County Commiss ions do not have a fu l l p icture of performance i nto the de l ivery of Socia l Serv ices .

With these multiple layers, there a re times that decisions may be made too far away from the client(s). F ina l ly , and most important ly, this structure, at t imes, causes a fair amount of confusion and stress for staff and clients , especia l ly on d ifficu l t cases .

22

S . B . 2 1 24 wou ld sh ift de l ivery of socia l (h uman ) serv ices from count ies to zones , a hybrid state/cou nty structu re Spectrum of structural models for social ( human) services delivery

Scenario A: State superv ised , county-adm in istered

Scenario C : Hybrid organ ization of "Human Service Zone"

Department of Human Serv ices

CFS Program & Pol icy

EA

Program & Pol icy

Ag ing Program & Pol icy

Zone D i rector( s)

---Scenario B : State admin istered

Detail of Preferred Model : Scenario C • This is the structura l recommendation of

SB 2 1 24 . • This model creates up to 1 9 zones and is

structura l ly s imi lar to cu rrent law for mu lti-county social service d istricts .

• Th is structu ra l model creates clearer l i nes of accountab i l ity between State Prog ram and Pol icy and the adm in istration of Social Services.

• Structu ra l ly d ifferent for mu lti-county social d istricts is that the i ntent is that zones are defined for the respons ib i l ity for del ivering state mandated services, regard less of c l ient address.

• With that d ifference, budgets wi l l be completed by Zones, in col laboration with the department; however , as we move forward with p i lots with i n the TOC process, th is structu ra l mode l , a long with changes to fund ing flexib i l ity wi l l promote g reater col laborat ion, specia l izat ion and uti l izat ion of capacity that exists in the State today.

• I n th is model , Zone D i rectors wi l l part ic ipate i n a OHS Human Service Zone Leadersh ip Team and partner with Socia l Service Prog ram and Pol icy to ensu re effective and compl iant del ivery i n each zone .

• The Department wi l l provide cons istent budgeting gu ide l i nes, HR pol ic ies and pol ic ies and gu idel ines for standard and cons istent program del ivery .

• This model also supports incremental movements toward improvements in effic iency and effectiveness i n c l ient centered del ivery .

23

Proposed t ime l i ne for the format ion of h uman serv ice zones has severa l m i lestones , with comp let ion at sta rt of 202 1

Dates I Mi lestones -----------Ju ly 1 , 201 9 B i l l Enactment

Dec 1 , 201 9 Zone Ag reements Zone Board

Jan 1 1 , 2020 Fi rst zone payment

Mar 3 1 , 2020 Zone D i rector

J u ne 30, 2020 Zone P lan

Jan 1 , 2021 Approva l & Statewide Imp lementat ion

Deta i l I Description of M i lestones

Zone agreement must: • Identify the proposed counties of the human service zone • Identify the host county • Identify the human service zone board members Zone board must : • Have 1 5 or fewer members appointed by county comm issioners • Have at least one county comm issioner from each cou nty in zone • E lect a vice presid ing officer and appoint secreta ry • Estab l ish proced ures for review and approva l of c la ims aga inst the

human service zone human services fu nd F i rst zone payment must : • Be based on the most recent data on h istorica l cost and income • Be made to the host cou nty • I nc lude payment for i nd i rect costs Zone d i rector must : • Be h i red by the zone board by Apri l 1 , 2020 • Be employed by the zone ; located with in the human service zone • Serve as the presid ing officer of the zone board

Zone p lan must : • P rovide fund ing for i nd i rect costs and l iab i l ity coverage • Specify any ro le trans it ions for team members • Describe a l l un ique local ly-provided prog rams that wou ld conti nue

to be provided under p lan • Al low for nonresidents of part ic ipati ng counties to access services • Specify that red uctions in access poi nts a re on ly made with

ag reement of human service zone board , county comm issions of affected counties , and the department

Bi l l References

Section 62 (Page 57 , l i nes 27-29)

Section 62 (p . 57) Section 72 (p . 70) Section 74 (p . 7 1 ) Section 1 30 (p . 1 23)

Section 67 (p . 66) Section 74 (p . 7 1 )

Section 62 (p . 57 - p . 59)

• 24

• The department's approva l of a zone ag reement and p lan wi l l depend on severa l factors , bu i ld i ng on mu lt icou nty d istrict mode l


The goal is to establ ish zones i n a way that wi l l enable effic iency and effective service del ivery .

These are perti nent criteria (among others) to that end , in determ in ing whether a zone should be approved / estab l ished :

SB 21 24 Language Rationa le ---------------- Reference(s)

Whether the affected county agencies are able to supply an adequate level and qual ity of social and economic assistance services.

Carry over existi ng mu lticounty d istrict law SECTION 63 page 59 , 27-28

The number and qua l ifications of staff personne l serv ing the affected county agencies.

Carry over exist ing mu lticounty d istrict law SECTION 63 page 59 , 29-30

The ratio of the number of cases hand led by the affected county agencies to the number of the ir staff personne l . The geog raph ical area and popu lation served by the affected county agencies.

Carry over existi ng mu lticounty d istrict law SECTION 63 page 60, 1 -2

Carry over existi ng mu lticounty d istrict law SECTION 63 page 60 , 3

The d istance of recip ients from the affected Carry over existi ng mu lticounty d istrict law SECTION 63 county agencies. page 60 , 4 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · The benefits that wou ld be real ized from the Carry over existing mu lticounty d istrict law SECTION 63 creation of the rustfiGthuman service zone in terms page 60, 5-7 of lower costs , increased avai lab i l ity of services, �f}.Y'! . . . ��!�f}.�! . . �.�9. . !.�.P..��.�!!).�.�� . . '?.'..�.�.�.i.�� ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The amount of cu rrent and futu re access points Access points should be mainta ined or SECTION 63 for ind iv iduals to apply for and receive services increased for counties that are part of page 60, 1 5- 1 6 with in a human service zone . zone The existi ng pattern of the counties trade area and any regional pattern estab l ished by the department.

The county has a popu lation exceed ing sixty thousand ind iv iduals . . . to operate as a s ingle . . . zone . . . and . . . it is in the best interest of the neighboring counties.

The proposed human service zone is exclud ing a county that shares an u rban area with other counties i n the proposed human service zone . The human service zone d i rector can adequate ly supervise the activities and operations of the human service zone .

Leverag ing exist ing county connections promotes effic iency and a l ignment with other services (e . g . , pub l ic hea lth un its)

Large counties have suffic ient scale to operate independently, and th is shou ld be al lowed if ne ighbori ng counties also benefit from being part of d ifferent zone

U rban areas wi l l benefit from being in 1 zone s ince th is prevents b ifu rcati ng of services for cit izens in same commun ity The zone should not be so large as to make it d ifficult for a zone d i rector to supervise performance of services across commun ities

SECTION 63 page 60, 1 7- 1 8

SECTION 63 page 60, 1 9-2 1

SECTION 63 page 60 , 22-23

SECTION 63 page 60, 26-27

25

� I SB � 1 �4

?/ , 3 / J q Human serv ice zone d i rectors are zone emp loyees respons i b le for management of staff, budget i ng , operations & outcomes

. .

Employment at zone level

Authority for supervis ion of staff

Role i n lead ing budgeting

Ro le as custod ian designee

Role i n foster care g rievance process


+ From : county d i rector is county employee + To: zone d i rector is a zone employee

+ Zone d i rector has authority to h i re and fi re and may serve as supervisor for department employees ass igned to zone

+ From: county d i rectors are g iven a g rant amount + To : zone d i rectors have active ro le i n creating budget

Zone d i rector effectively serves as custod ian of ch i ld ren whose parents have had rights term inated

+ From: reg ional representative rev iew of foster care g rievance + To: peer review of foster care g rievance by zone d i rector i n confl ict-free human service zone

SB 21 24 Language Rationale ---------------------------(Zone d i rectors) (m)ust be employees of the Zone d i rectors faci l i tate partnersh ip with human service zone and located with i n the the state as wel l as peers , he lp ing to human service zone, u n less serv ing more than ensure that operations are col laborative one human service zone . and un iform across the state , whi le

rema in ing accountable to local zone board

[Zone d i rectors) [m)ay h i re, take d iscipl i nary actions, and d i rect the work of a human service zone team member i n accordance with the depa rtment's pol icies . . . . . . . . May serve as a designee of the department to supervise department employees assigned to or located with i n the human service zone .

Sha l l develop a budget for the human service zone in partnersh ip with the department and other h uman service zone d i rectors to ensure the adm in istration of human services.

Are the custod ian designees of the executive d i rector of the department for any ch i ld in the custody of the department.

I f no written resolution between the parties relating to the g rievance is made at the informal meeting , the foster parents may request a formal hearing to be held atthe regional foster carea confl ict-free human service zone office . . . The regional foster Gafehuman service zone d i rector or the d i rector's designee shal l review all prior contact. . . [and) shal l then make a final determination relating to the g rievance.

Zone d i rectors should have authority to manage staff in order to ensure program compl iance and performance

An active role of zone d i rectors i n creati ng the budget wi l l ensu re that there is constant attention to how the budget can enable operations that proactively meet the needs of a l l cit izens and incorporates best practices from across the state

Al lows for decis ion-mak ing closer to the ch i ld and loca l context

S imp l ifyi ng the organ ization complexity of del iveri ng h uman services wi l l i nvolve reimag in i ng the ro le of the reg ional representatives at H u man Service Centers

SB 21 24 Reference

SECTION 67 p.67, 1 -2

SECTION 67 p .67 , 5-6

p .67 , 2 1 -22

SECTION 67 p .67 , 1 8-20

SECTION 67 p .67 , 23-24

SECTION 1 1 2 p . 1 1 2 : 4- 1 6

• 26

The zone board is composed of representatives from each county i n zone and respons i b le for superv is i ng operat ions

Subject Design Intent I Brief Description

Zone d i rector serves as the presid ing officer of the social service zone board

Appointed members selected by county commissioners

+ Demograph ics of board must reflect constituent counties + Each county must be represented on the zone board by at least one commissioner

+ Advocate for those in need + Make recommendations on how to improve prog rams + Assist in coord ination of services for publ ic and private agencies + Establ ish procedu res for review and approval of claims + H i re zone d i rector

SB 21 24 Language

The human service zone d i rector shal l serve as presid ing officer of the human service zone board as a nonappointed member.

The board of county comm issioners of each county with i n the human service zone shal l appoint the appointed members of the GGl:I-Aty seGialhuman service zone board based upon fitness tci serve as members by reason of character , experience, and tra in ing without regard to pol itical affi l iation .

Each sex, race, and ethn icity must be fa i rly represented on the human service zone board based on the zone's demograph ics, and each county must be represented on the human service zone board by at least one county comm issioner of that county.

(11 Provide information to the department relative to the commun ity needs of the human service zone res idents and advocate to meet those . . . (21 Review services and programs provided by the human service zone and make period ic recommendations for improvement . . . (31 Aid and assist in every reasonable way to efficiently coord inate and conduct human service activities . . . [4] Establ ish procedu res for the review and approval of a l l cla ims against the human service zone human services fund . [5 1 H i re, supervise, and take other personnel actions related to the human service zone d i rector with d i rect consu ltation and involvement from the department

Rationale -----------------Since the zone d i rector is responsible for cl ient service del ivery and the day-to-day operations of the zone , they are wel lposit ioned to set the agenda of the zone board and faci l itate d iscussion

The county comm issioners have ins ight into who wi l l be more effective i n represent ing the human service needs of their counties on the human service zone board

+ Zone board must ensure that the needs of a l l counties with in the zone, and a l l commun ities with in each county, are receiving sufficient service levels + Adequate representation of commun ity perspectives is essential to fu lfi l l i ng the ro le of the board

The ro le of the zone board is designed to accompl ish 5 d istinct goals: • H igh l ight commun ity needs or gaps i n

services • Ensure that any flaws in zone

performance are add ressed • Promote col laboration between

commun ity stakeholders • Mainta in respons ib i l ity of fiscal affa i rs • Supervise the zone d i rector ( in

col laboration with department) and hear and act on employee g rievances


SECT 10 N 72 p .70 , 1 3- 1 5

SECTION 72 p .70 , 4-7

SECTION 72 p .70 , 9- 1 2

SECTION 74 p . 7 1 , l i ne 9 th rough p. 72 l ine 20

27

FTE transfer authority is i nc l uded i n 2 1 24 for fu nct ions where state can ga i n cons istency/effic iency from specia l izat ion of work

Bi l l Text Design Intent I Brief Description B i l l Text Language ( 1 9 .8057.02000) --------- ------------------------- Rationale

Reference(s) ( 19 .8057 .02000) ----------------

+ From: each county Up to [223) fu l l -time equ ivalent posit ions inc l uded + The conti ngent authorization for these SECTION 1 40 p . 1 35 : 20-26 operates same in Senate B i l l No . 20 1 2 , as approved by the functions reflect 2206 study committee

recommendations , as some funct ions were determ ined to be more efficiently performed i n conso l idated manner (wh ich does not mean centra l ized )

basket of services s ixty-s ixth leg is lative assembly , may be adj usted + To: services are or i ncreased on ly if one or more human service d i stri buted to zones transfers powers and d uties . . . Any maxim ize effic iency posit ions added to the department of human and c l ient outcomes services under this section wou ld be posit ion

transfers from the human service zones

Broad ly, those functions targeted for potential transition to the state are those where work requ i res a greater special ization and content knowledge. Through special izat ion of work, these trans it ions wou ld ensure more cons istent and effic ient de l ivery .

+ Authorizations are conti ngent because not al l may happen th is b ienn i um , or a lternative strateg ies may be deve loped

[4 FTEs) to serve as human service zone OHS wi l l need posit ions for operations SECTION 1 40 operationa l d i rectors d i rectors to oversee zone functions p . 1 36: 1 6-1 8 · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · [ 1 6 FTEs] if [OHS) assumes . . . duties associated CFS comm ittee recommendations SECTION 1 40 with foster care tra in i ng and the recru itment and included : p . 1 36: 1 9-2 1 l icens ing of fam i ly foster care homes • Estab l ish statewide foster care p . 1 37 : 1 -3

[2 FTEs] if [OHS] assumes . . . d uties associated with adoption assistance e l ig i b i l ity determ ination

recru itment strategy • Reg ional ize foster care l icens ing • Move sub-adopt negotiations to

reg ion or state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , [ 1 4 FTEs) if [OHS) assumes . . . duties associated IV-E determ inations are comp l icated/ SECTION 140 with foster care assistance or IV-E e l ig ib i l ity error-prone , and a special ized team p . 1 36: 22-24 determ ination may perform better than genera l ists

[27 FTEs) if [OHS) assumes . . . duties associated I ncons istency or lack of crit ical mass i n SECTION 140 with ch i ld care l i cens ing reg ional de l ivery motivates p . 1 36 :25-26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . g9.!1.�9.! !9.9.1! .n.9 .. 9.P..�.@1i9.!1.� . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 6 FTEs) if [OHS] assumes . . . d uties associated EA committee suggested to outsource; SECTION 1 40 with [L I H EAP) conso l idat ion to state may be preferred p . 1 36 : 27-29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 04 FTEs] if [OHS) assumes . . . determ inat ion of Some e l i g ib i l i ty fu nctions , such as long- SECTION 1 40 e l ig ib i l ity and other re lated activit ies [for var ious term care e l i g ib i l ity , wou ld be more p . 1 37:4-8 prog rams) efficiently performed at state level [30 FTEs] to re l ieve human service zones of The state is better posit ioned to perform SECTION 1 40 misce l laneous duties [e . g . , fraud investigations , duties that wou ld make human service p . 1 37 :9- 1 1 estate col lections , th i rd party l i ab i l ity, etc . ) zones less effic ient by d istraction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [ 1 0 FTEs) to serve as qua l ity contro l to the Qua l ity contro l positions wil l support and SECTION 1 40 hu man service zones ensure pertormance across zones p . 1 -1 3 28

S .B . 21 24 : Department of H uman Services Testimony House H u man Services Comm ittee : March 1 3 , 20 1 9

Agenda

• Overview of Socia l (Human) Services



- Zone structu re and t imel i ne for zone format ion

- Zone fund i ng and fiscal note

- Other major prov is ions

• Append ix

29

� l tSYJ ;)I"<-/ �/r, / 1 4

Severa l p ri nci p les for zone budget i ng are reflected i n S . B . 2 1 24 and fisca l note , expand i ng on the benefits of the p i lot formu la

Zone Budgeti ng Pri nc ip les ( i n BOLD are pri nci p les d riv i ng p rio r fo rmu la )

1 . Re imburse h istorica l costs of provid i ng services across zone

2 . Adj ust fo r d ifferences i n pay between zones and cost of l iv i ng

3 . Adj ust fo r p rocess change (enab l i ng conso l idat ion , shari ng capacity)

4 . Adj ust fo r changes to the basket of serv ices (enab l i ng specia l izat ion )

5. Adj ust for caseload i ncreases or decreases

6 . Adj ust fo r eq ua l iz i ng serv ice leve ls across the state , recog n iz i ng potentia l d ifferences i n de l ivery modes i n d ifferent zones


8 . Adj ust fo r cont i ngencies or p ress i ng s ituat ions

Ranked i n o rder of p rio r ity

• 30

The flexi b i l i ty of zone fund i ng is meant to i ncrease respons iveness to commun ity needs and enab le i n novation

Subject

Formula start ing point

Formula recalcu lation

Design Intent / Brief Description

+ H istorical costs less income is fund ing start ing point

+ The department adj usts formula up or down from h istorical cost and income + The adj ustments up or down are based on factors such as compensation equ ity, actual expend itures, cu rrent costs , services provided , need , duties assigned and caseload

Recalcu lation of formula to occur b iannual ly

The intent is to continue reimburs ing counties for a share of ind i rect costs i ncu rred that support del ivery of human services

SB 21 24 Language

The ca lcu lation must be based on the human service zone's most recently ava i lable data on h istorical cost and i ncome . . .

(The d i rector's calcu lation) of the tota l formula payment . . . may include . . .

. . . human service zone d i rector's proposed budget . . .

. . . Compensation equ ity and increases . . .

. . . (c)u rrent and future duties of and services offered by the human service zone . . .

. . . (other) pert inent factors, which i nclude actual expend itu res over the previous or cu rrent payment period, cu rrent costs, offered services, need, income, performance of duties d i rected or assigned and supervised by the department, and caseload .

The d i rector may reca lcu late and adjust each human service zone's formula payment b iannual ly [based on factors outl i ned above)

The d i rector shal l calcu late payment for i nd i rect costs . . . The tota l payment by the department for re imbursement of i nd i rect costs i ncu rred to support human services cannot be less than the prorated amount pa id to counties for th is pu rpose in state fisca l year 20 1 8 as identified in the ind i rect cost plan, un less a cost reduction or cost savings is achieved by the county.

Rationale -----------------This approach strikes an i n it ial ba lance between covering expenses that support operations wh i le not overpaying

+ Adjustment i n response to "need" and the human service zone d i rector's proposed budget wi l l better tie the fund ing to the needs of the local context + Adj ustment for "cu rrent and future duties" would al low fund ing to reflect operational changes to the basket of services at the zones, enabl i ng special ization and shar ing of resources ; adj ustments for "actual expend itu res" enable these transit ions to occur smoothly + Adj ustment for "compensation equ ity and i ncreases" is inc l uded because payment is cu rrently unequal between counties -which is reflected i n d ifferences i n the rate per case by county i n the old formula - and th is would move toward equ ity under new method + Adjustments for "caseload" are sti l l inc luded as an essential part of the formula calcu lation , but no longer the on ly d river Recalcu lating 2x per year makes the zone operations more n imble while match ing the b iannual payment t imel ine

The goal of th is provis ion is to protect the payment for i nd i rect costs supported by counties, ensuring that counties receive an amount that fa i rly protects the re imbursement they have received i n the past for i nd i rect costs


SECTION 1 30 p. 1 25 , 28-29

SECTION 1 30 p. 1 25 , l i ne 27

through p . 1 26 , l i ne 1 9

SECTION 1 30 p. 1 26 , 1 5-1 6

SECTION 1 30 p. 1 26 , 23-28

3 1

The fisca l note associated with S . B . 2 1 24 of $ 1 82 . 3m wi l l su pport trans it ion to new mode l of h uman serv ice zones ( 1 /2 )

Line Item -------------Projection of CY18 and CY19 program-related costs


Sub-total : Histor ical Costs





Estimated Amount1 , $ Rationale I Descr iption of Calculation

161, 206 ,697 = [CY18 actuals]2 + [CY19 projection]3 = 80 , 213, 303 + 80 ,993 , 394

5, 550 , 522

166,757,219

(5 , 306 ,627)

8 ,584 ,8334

170,035,425

3 ,408,119

Estimate for the indirect costs is 25% of the last available full 12 months of data plus the costs for preparing indirect cost allocation plan


2 times the amount distributed f rom MMIS in CY18. Monies distri buted to the counties f rom the Medicaid Management Information system (MMIS) support costs for services like home & community-based services Inflationary increases are based on 2% I 3% inflators for salaries , benefits other than health, and operating; est . health benefits are inflated at 7. 5% each year

The same roles at various counties are paid very differently due to historical contingencies reinforced through the rate-per case formula; this amount would allow for bringing up compensation of lower-paid counties

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Family First Legislation Implementation Investments

7 ,500 , 000 Funds to support preventative services and enhanced review of residential placements under Qualified Residential T reatment Provider (QRTP) provisions

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · Contingency & Pilot Implementation

Total

1, 356,456

182,300,000

Funds to support unforeseen county expenses (e .g. , bu rials , overpayments) , program pilots , and scaling of best practices f rom pilots

1 These est imates cou ld adj u st based on most recent ly ava i l ab le cost data from cou nt ies . 2 [CY 1 8 actua ls ] a re reported based on data for actua l Sa l a ries , Benefits , and Operat ing cost payments f rom the cou nt ies for CY 1 8 . 3 [CY 1 9 p roject ion ] I s ca lcu lated as the [CY 1 8 actua ls ] with any i nf later of 6 .4% fo r on ly the est imated hea l th benefits port ion of county soci a l services spend ing 4 At a 2% and 2% i n flater . th is 8.6m wou ld change by (692 , 2 ) 32

The fisca l note associated with S . B . 2 1 24 of $ 1 82 . 3m wi l l support trans it ion to new mode l of h uman serv ice zones (2/2 )

Line Item ------------Projection of CY18 and CY19 program-related costs









Total

Estimated Amount1 , $

161, 206,697

5, 550, 522

1 66,757,219

(5 ,306,627)

8, 584 ,8334

1 70,035,425

3,408,119

7, 500,000

1,356,456

1 82,300,000

Zone Budgeting Principles Supported Zone Budgeting Principles

• • • • • • • •

Reimburse h istorical costs of provid ing services across zone

Adjust for d ifferences in pay between zones and cost of l iv ing Adj ust for p rocess change (enab l ing conso l idation , sharing capacity) Adj ust for changes to the basket of services (enab l ing special izat ion) Adjust for caseload increases or decreases

Adjust for equa l iz ing service leve ls across the state , recogn iz ing potential d ifferences i n de l ivery modes in d ifferent zones Adj ust for statewide changes i n services or service leve ls Adjust for conti ngencies or p ress ing situat ions

1 These est imates cou ld adj ust based o n most recent ly ava i l ab le cost da ta from count ies . 2 [CY 1 8 actua ls ] a re reported based on data for actua l Sa l anes , Benefits , and Operat i ng cost payments from the coun t ies fo r CY 1 8 . 3 [CY 1 9 p roject ion ] i s ca lcu lated as the [CY 1 8 actua ls ] w i t h a ny i nf lator of 6 4% fo r o n ly the est imated hea l t h benefits port ion of county soc ia l services spend i ng . 4 At a 2% and 2% i nf lator , t h i s 8 .6m wou ld change by (692 .290) 33

S. B . 2 1 24 : Department of H u man Serv ices Testimony House H u man Serv ices Comm ittee : March 1 3 , 20 1 9

Agenda

• Overview of Socia l ( Human) Serv ices

• 20 1 7 S . S . 2206 Study Context and Resu lts

• Key Components of Pol icy i n Engrossed S .B. 2 1 24

- Zone structu re and timel i ne for zone formation

- Zone fund ing and fisca l note ,

- Other major provisions

• Append ix

• 34

Other Major Provis ions i n SB 2 1 24

Section : Topic Descri pt ion

The proposed changes do not add add itiona l lega l respons ib i l it ies , with the exception of representi ng the h uman service zone i n adoption cases if the human service zone needs to respond to a petit ion for adoption pu rsuant to chapter 1 4- 1 5 of the North Dakota Centu ry Code, as the proposed changes cu rrently fa l l under the dut ies of the state's attorney cu rrently set forth i n separate chapters , wh ich a re now referenced under sect ion 1 1 - 1 6-0 1 of the North Dakota Centu ry Code . . . If the proposed changes are not added to Section 1 , the Department or the Attorney Genera l 's Office wou ld need add itional appropriation and fu l l -time eq u ivalent pos it ions to provide legal representation and i n it iate proceed i ngs . . .

The proposed changes i n Sect ion 1 7 of th is B i l l rep lace references to "county socia l services boards" and "county's genera l assistance po l i cy" with language referri ng to the newly created "human service zones" and " human service zone's genera l assistance po l i cy" with regard to respons ib i l it ies for i nd igent buria l . The proposed changes a lso ass ign to the Department the authority to negotiate with fu nera l d i rectors regard i ng expenses i nstead of the county socia l services board .

The proposed changes i n Sect ion 36 and 37 of th is B i l l provide that u pon an order term inati ng parenta l r ig hts , if there is no parent havi ng parenta l rights , one opt ion is to commit the ch i ld to the custody of the cou nty socia l serv ice d i rector up unt i l December 3 1 , 20 1 9 . After [Decem ber 31 , 201 9] , one option wi l l be to com m it the ch i ld to the custody of the human service zone d i rector. Previous lang uage had d i rected the ch i ld to be p laced i nto the custody of the Executive D i rector of the Department.

35

S. B . 2 1 24 : Department of Human Services Testimony House H u man Serv ices Comm ittee : March 1 3 , 20 1 9

Agenda

• Overv iew of Socia l (Human) Serv ices

• 20 1 7 S . 8 . 2206 Study Context and Resu lts --==----==---==--==-====

• Key Components of Po l i cy i n Engrossed S . B . 2 1 24

• Append ix

• 36

Payment d u ri ng 20 1 7- 1 9 , then , has been d riven by case load amou nts across each of the p rog rams at the cou nty leve l ; for refe rence , these overa l l case loads a re shown ( 1 /2 )

Major Com ponents of Econom ic Ass istance Form u la Caseload

Temporary Assistance for Needy Families Paid cases

3S,OOO ��-------------------------

30,000

2S,OOO

20,000

lS,000

10,000

5.000

CY 2012 CY 2013 CY 2014 CY 201S CY 2016 Each paid case is counted once per month.

Supplemental Nutrition Assistance Program Paid cases

CY 2017

350,000 �---------------------------

300,000

250,000

200,000

150,000

100,000

50,000

0

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016

Each p.>id case is counted ooce per month.

16,000

14,000 �

12,000

10,000 +

8,000

6,000

4,000

2,000

0 •

CY 2012

Low Income Heating Assistance Program Unduplicated caseload by Heating Season

12,294

CY 2013 CY 2014 CY 2015 CY 2016 Each case is counted once per hNtina season.

CY 2017

12,323

CY 2017

50,000 45,000 40,000

: 35,000 30,000 25,000 20,000 15,000 10,000 5,000

0

CY 2012

Child care Assistance Paid cases

CY 2013 CY 2014 CY 201S CY 2016 Each p;ud c.ise is counted once per month.

CY 2017

Medical Eligibles 1,200,000 �----------------_.,140,SU-- 1.141.498

200,000

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 Uch eligible 1s count� once per month. Include CHIPS ,nd rt0 s� and e1Uped 1n 2016.

18,000

16,000

14,000

1 2,000

10,000

8,000

6,000

4,000

2,000

0

1 1,740

CY 2012

Foster care Number of Children (E ligibility)

14,122 14,7T9 _l�39Ji

CY 2013 CY 2014 CY 2015 CY 2016 E�h child 1s countttlor.ce per month {bas� on IM IH of e-ach month) .

CY 2017

16,029

CY 2017

37

Payment d u ri ng 20 1 7- 1 9 , then , has been d riven by case load amou nts across each of the prog rams at the cou nty leve l ; fo r reference , these overa l l case loads a re shown (2/2 )

Major com ponents of Soc ia l Serv ices Form u la Caseload

Foster Care Number of Children

18,000 16,000 " 14,000 -, 1 1,740 12,000

12,942 14,719

10,000 8,000 f'"

6,000 -T--

4,000 2,000

0

CY 2012 CY 2013 CY 2014 CY 2015 heh child ,s counted once- pe-r month (bued on the ht o f uch mOflth).

Subsidized Adoption Cases 1,600 --------------------

1,361

1,200 .,-- --.,-.,.--,

1,000

800

400

200

0 CY 2012 CY 201 3 CY 2014 CY 2015 CY 2016 CY 2017

Each paid case is counted once per month

Child Abuse & Neglect

Assessment/Referral Reports 6,000 �--------------------

5,000 4,327 4,615

,1.100 �,7_75

4,000

3,000

2,000

1,000

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Based on monthly child protective service reports. Counti� do not receive reimbursement for assessment and referral cases.

Family Preservation Families

14,000 15,396 16,029

12,000 1 1,600

10,000

8,000

6,000

4,000

2,000

CY 2016 CY 2017 CY 2012 CY 201 3 CY 2014 CY 2015 CY 2016 CY 2017 family may be counted more than once during ii given service month 1f services were received mult1pie t,mes a month or received s�e m multiple counb�.

licensed Foster Care Providers

700 637 603

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Each licensed f�ter care provider 1s counted when the license 1s issued and renewed. (PAHi Homes ore not licensed by the counties and therefore ore not included in chart}.

5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000

500

Child Abuse & Neglect Full Assessment

Cases

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 Based on monthly child protective service reports paid.

licensed Child Care Providers

25,000 �2�2-,6

=1�3

--2-1,

-55_

3 __

2

_

1

_

,1

_

9

_

6

_________ _

20,109_�1,.,,9,,2,,_4._1 �18;514-20,000

15,000

10,000

5,000

CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017

Each child ca,e provider , s counted once per month.

Child Abuse & Neglect Terminated In

Progress/Pregnant Women Cases

3,500 --- --3,245

3,000 +-------------1 2,302 2,646

2,SOO +--�·�----�

2,000

1,500

1,000

500

3,054 3,1 1 1

C Y 2012 C Y 2013 C Y 2014 C Y 2015 C Y 2016 C Y 2017 Based on monthly child protectrve service reports paid.

• 38

Recommendat ions from Ch i ld & Fam i ly Serv ices Comm ittee Recommendation

a) Move sub-adopt negotiations to reg ion or state

b) Sh ift foster care l icensing to one entity per reg ion

c) Reg ional ize foster care placement-intake/cal l center

d) Reduce the CPS assessment from 62 days to 25 days e) Maintain loca l access for providers, whi le e l iminating redundancy/mult ip le levels of review of l icens in decisions f) Develop a navigator role to partner with CFS/Chi ld P rotection Services CPS

g) Establ ish a statewide foster care recruitment strategy

h ) Reg ional ize foster care l icensing

i ) Expand access to Un iversal Home Visit Program in partnersh ip with hospitals

") Expand Alternative Response be ond current tar et o u lation

Source : SB 2206 Report to Leg is lat ive Management

•

•

•

• •

• • •

Benefits + Notes Provide consistent service del ivery across a l l counties by having a few identified experts who wi l l focus sole ly on sub-adopt

Reg ional ize expertise by having an experienced cou nty take the lead on foster care l icensing i n each service del ivery reg ion

Al lows counties to share l icensed foster homes across cou nty l ines, so that placements match a ch i ld 's needs and a provider's preferences , experience and ab i l it ies

Provide upfront t imely services to fami l ies Provide faster resolution whi le keeping ch i ldren safe

S impl ify the l icensing process Create standard work practices I ncrease abil ity to share l icens ing resources across cou nty l i nes Help address social determ inants of health with the fam i ly Connect regu larly with fami l ies Reduce the caseload for CPS case managers by provid ing early support and intervention Replaces fragmented and d i l uted fund ing to reg ional foster care coal itions with a statewide recru itment strategy and tools Provides consistent recru itment messages and outreach material statewide Contract with marketing agency to develop the strategy/message Provide consistent and t imely l icens ing by us ing dedicated expert staff for l icens ing of foster homes I ncrease efficiency due to staff focus and expertise

Provide front-end prevention Has a parent-a ide checking on h igh-risk (to be defined) parents after b irth of a chi ld for up to (TBD) years Generate cost savings over t ime by increasing fam i ly connections, parent ing sk i l ls and understand ing of ch i ld development and reducing risk of abuse and neg lect Appl ies a consistent evidence-based model D ivert at-risk popu lation from foster care Is primary prevention - offered to every fami ly that has a baby Provides needed services to fami l ies without fi l i ng a formal CPS report

39

Recommendat ions from Adu lt Serv ices Comm ittee Areas of Focus Notes and Recommendations

Notes : • Special ization is a necessity to ensure qua l ity de l ivery of services • Current system expects every professional to know a l ittle bit about everyth i ng , which is

overwhelming and may resu lt i n m is information or m isunderstand ings

Recommendations : • If poss ib le , designate staff to on ly work i n one program . At a m in imum , requ i re special ization

and expertise i n a key area • Estab l ish annua l profic iency standards (benchmarks) for each worker to meet

Notes : People are unaware of ava i lable services and the Ag ing and Disabi l ity Resou rce L I N K (ADRL) on l i ne and telephone information and assistance resou rces

Recommendation : Expand the ADRL 's capacity to provide i nformation about commun ity-based services and supports for people with d isabi l it ies across the l ifespan to better connect people to needed services and supports

Notes : • C l ients are overwhelmed with having to fi l l out mu ltip le forms • Cha l lenges are further compounded by a lack of commun ication among various entities and

programs • Currently, in take is not a centra l ized system; the goal shou ld be to ut i l ize whatever h idden

capacities exist with i n the system to improve efficiencies

Recommendat ion : El im inate mu lt ip le assessments. Develop an easy-to-access u n iversal in take process us ing a u n iversal set of questions to screen appl icants and determine e l ig ib i l ity for long-term supports services for adu lts . This wi l l g reatly benefit c l ients and create g reater efficiency.

SPECIAL NOTATION : As th is wi l l be a s ign ificant change, the Adu lt Services Committee has agreed to conti nue work ing as a g roup to identify fu rther efficiencies/improvements and create and implement a new i ntake and assessment system .

•

� (

SPJ �l �'f 01 \'b Ji q

40

Recommendat ions from Economic Ass istance Committee Recommendation

a) E l iminate the work e l ig ib i l ity workers do that isn't part of e l ig ib i l ity determination

b) Reg ional ize el ig ib i l ity determination for Med icaid coverage of foster ch i ld ren , Temporary Assistance for Needy Fami l ies, Medicaid longterm care , Ch i ld Care Assistance and Basic Care A.ssistance

c) Develop the Ful l Kit for processing program appl ications and determin ing e l ig ib i l ity

d) Centra l c l ient cal l center

e) Centra l ize tra in ing for EA program el ig ib i l ity determination

f) Pol icy development

g) Outsource Low Income Home Energy Assistance Pro ram L IHEAP h) Bui ld a robust set of i nterfaces to a l low e l ig ib i l ity workers access to more i nformation to more efficiently and effectively process c l ient a l ications

Source : S B 2206 Report to Leg is lat ive Management

Benefits + Notes Gives e l ig ib i l ity workers more time for processing appl ications and provid ing case management

Examples of work not related to e l ig ib i l ity: Fraud i nvestigations Estate col lections Th i rd Party L iab i l ity Health Tracks Referral Primary Care Physician assignment Creates special ized teams across reg ions who regu larly work with and process these complex cases I mproves the qua l ity of e l ig ib i l ity determ inations

• Workers have the information they need to accurately determine e l ig ib i l ity o Identify the necessary items to beg in starting an e l ig ib i l ity appl ication o Provide the Fu l l Kit checkl ist for a l l programs

• Provides one number for cl ients to cal l across the state to ask questions , get an update on their appl ications, change addresses , etc.

• Creates a designated team of cal l center experts • Assures un iversal access regard less of location to a l l EA cl ient i nformation • Bu i lds a triage process • Develops tra in ing curricu lum and offers consistent ongoing tra in ing to e l ig ib i l ity workers

statewide • Establ ishes a tra in ing team connecting tra iners with pol icy and program adm in istrators

to assure consistent development and de l ivery of tra in ing

• I nc lude frontl i ne e l ig ib i l ity workers i n the pol icy development and tra in ing curricu l um process

Create program work g roups that inc lude e l ig ib i l ity workers to improve prog rams • Connects L I H EAP with organ izations fam i l iar with the program

Examples of interfaces • Job Service North Dakota , Ch i ld Support, Unemployment, WSI Benefit • Work #

4 1

Testimony

Engrossed Senate B i l l 2 1 24- Department of H uman Services

House H uman Services Committee

Representative Robin Weisz, Chairman

March 1 3, 201 9

Cha i rman Weisz, and members of the House Human Services Comm ittee, I am

Jonathan Alm , an attorney with the Department of Human Services (Department) .

appear before you to support Engrossed Senate B i l l No . 2 1 24 , which was introduced

on beha lf of the Department.

The proposed changes in Section 1 of this B i l l a re regard ing the d uties of the state's

attorney. The proposed changes do not add add it iona l legal responsib i l it ies on the

state's attorneys , with the exception of representing the human service zone in

adopt ion cases if the human service zone needs to respond to a petit ion for adoption

p u rsuant to chapter 1 4- 1 5 of the North Dakota Centu ry Code, as the proposed

changes cu rrent ly fa l l u nder the duties of the state's attorney cu rrently set forth i n

separate chapters , which a re now referenced under section 1 1 - 1 6-0 1 of the North

Dakota Centu ry Code. Due to the change of the county social services structu re ,

l anguage a lso needed to be added to reflect the p roposed structu re change to a

h uman service zone . If the p roposed changes are not added to Sect ion 1 , the

Department or the Attorney Genera l 's Office wou ld need add itiona l appropriation

and fu l l-time equ iva lent posit ions to provide legal representation and i n it iate

p roceed ings u nder the statutes l i sted i n th is B i l l . The proposed changes would

ensu re that the state's attorney wou ld i nstitute and defend proceed ings , upon

consu ltat ion with the Department, regard i ng : l iab i l ity of a parent's estate to support a

m ino r ch i ld u nder section 1 4-09- 1 2 of the North Dakota Centu ry Code; various

p rovis ions of the Revised U n iform Adoption Act u nder chapter 1 4- 1 5 of the North

Dakota Centu ry Code; parenta l abuse under section 1 4-09- 1 9 of the North Dakotc:1

Centu ry Code ; var ious p rovis ions of the U n iform J uven i le Court Act under chapter

27-20 of the North Dakota Centu ry Code ; and genera l assistance u nder chapter 50-

1

0 1 of the North Dakota Centu ry Code. This Sect ion would a lso requ i re the state's attorney of the host county i n which the human serv ice zone is located to act as the lega l adviser for the newly created human service zones created u nder th is B i l l , i ncl ud i ng the respons ib i l ity to represent the human service zones regard i ng emp loyer actions taken aga inst human serv ice zone team members . A defi n it ion for "host county" is fi rst p rovided i n Section 2 of th i s B i l l , as wel l as i n mu lt ip le other locations .

The p roposed changes i n Section 2 of th is B i l l change the effective date of section 1 1 -23-0 1 of the North Dakota Centu ry Code , rega rd i ng when county officers are requ i red to fu rn ish county commissioners with a departmenta l budget ; and removes existi ng l anguage regard ing the budgeting p rocess for county socia l serv ice boards that wi l l no longer be uti l ized g iven the new fund i ng methods p rovided for u nder this p roposed leg is lation . New language provides that the departmental budget subm itted by a human service zone may not exceed an amount determ i ned by the Department and the h uman service zone d i rector p u rsuant to Section 1 30 of th is B i l l and m u st i ncl ude the county's cost a l locat ion of i nd i rect costs based on a formu la estab l i shed by Department. Language is amended to cla rify that the county share of the human service zone's i nd i rect costs must be ent i rely funded from the county's genera l fund . The county share of the human serv ice zone budget shou ld on ly i nvolve payment for those ind i rect costs that support the de l ivery of human services . Cu rrent ly , the county's share of social serv ices that is not bei ng re imbu rsed by the State is be ing funded from the county's genera l fund . New language a lso estab l ishes that the h uman service zone d i rector sha l l submit a p roposed i ncrease in staff to the human service zone board for review. I f the human serv ice zone board approves the increase i n staff, the human serv ice zone d i rector sha l l have the authority to h i re that staff. Perti nent factors to be considered by Department i n approvi ng the h i ring may i nclude caseload i nformation . If the Department approves a n i ncrease in staff, the h uman service zone budget may be i ncreased by the amount determ ined necessary by Department to fund the approved add it ional staff. The human service zone d i rector sha l l work with Department to ach ieve equ itable com pensation for a l l h uman service zone team members with i n a human service

2

��

6PJ 1l iL-\ �/1 ?, { 1 1

zone , and that the d i rector sha l l notify appropriate host county staff of a l l staffi ng changes for adm i n istrative pu rpose . "Host county" is defi ned as the county with i n t he human serv ice zone in wh ich the admin istrative office is located and i n which the h uman service zone team members a re emp loyed . The same defi n it ion of "host cou nty" is a lso fou nd in Sections 24 , 6 1 , and 7 1 of th is B i l l .

The p roposed changes i n Sections 3 through 8 and Section 1 1 o f th is B i l l remove language rega rd i ng "county pub l ic assistance agencies" , and rep laces references to "county socia l services boards" , "board of county com miss ioners" , or "counties" with language refe rr ing to the newly created "human serv ice zones" th roughout title 1 4 of the North Dakota Centu ry Code , re lat ing to "Domestic Relat ions and Persons" . Sect ion 3 a lso adds a provis ion provid ing that pri nted mater ia l regard i ng ch i ld s upport must state that more i nformation may be obta ined by ca l l i ng state pub l ic ass istance agencies or human serv ice zones . Sect ion 7 c la rifies that i f a parent chargeab le with the support of a ch i ld d ies leaving it chargeable upon the human serv ice zone but a lso leaves an estate suffic ient for support , the Department, i n the name of the human service zone , may institute a civ i l act ion to c la im p rovis ion for its s upport i nstead of the board of county commiss ioners .

The p roposed changes i n Section 9 of th is B i l l adds human serv ice zone t o the not ice requ i rement for parents p laci ng that person 's own ch i ld in the home of the ch i l d ' s g randparent , uncle , or aunt for adoption or gua rd iansh ip by the person receiv i ng the ch i ld .

The p roposed changes i n Section 1 0 of th is B i l l prov ide a defi n it ion of " human service zone" with in chapter 1 4- 1 5 of the North Dakota Centu ry Code , re lat ing to the Revised U n ifo rm Adoption Act. Human service zone is defi ned as "a county or conso l idated g roup of counties adm i n ister ing human serv ices with in a designed serv ice a rea in accordance with an agreement or p lan approved by the department. " The same d efi n it ion of "human serv ice zone" is a lso p rovided i n Sections 1 8 , 24 , 27 , 6 1 , 90 , 94 , 1 1 0 , 1 1 5 , 1 20 , 1 27 , and 1 30 of th is B i l l .

3

The p roposed changes i n Sect ion 1 2 of th is B i l l requ i re that a human service zone be p rovided not ice and a copy of the petit ion i n p roceed ings for a petit ion to adopt a m inor u nder chapter 1 4- 1 5 of the North Dakota Centu ry Code ; and also provides that Department and the human serv ice zone may g ive consent to the adoption , and may req uest the l icensed chi ld-p laci ng agency to conduct fu rther i nvestigation as needed .

The p roposed changes i n Section 1 3 of th is B i l l amend cu rrent language that states that a fi na l decree of adoption may not be issued , and an i nter locutory decree of adoption d oes not become fina l , u nt i l the m inor to be adopted has satisfied one of fou r res idency options . One of those cu rrent options is that the m i nor has l ived i n t he adoptive home for a t least six months after the Department or the cou rt has been i nformed of the custody of the m inor by the petit ioner , and the Department o r the cou rt has had an opportun ity to observe or i nvest igate the adoptive home. This sect ion j ust g rants human service zones the same authority that the Department or cou rts have to be informed of the custody, and to observe or i nvestigate the adoptive home .

The p roposed changes i n Sect ions 1 4 of th is B i l l conta ins language stat ing that a petitioner for adoption is not requ i red to show proof that a hea lth insurance pol icy is i n effect which p rovides coverage for the ind ivid ua l to be adopted , if the person to be adopted is not in lega l custody of the Department , a county socia l service board , or a ch i ld-p lac i n g agency. Section 1 5 of th is B i l l conta ins ident ical language , except for referenc ing county socia l serv ice boards it references a "human service zone" . Section 1 4 exp i res on December 3 1 , 20 1 9 , and Sect ion 1 5 becomes effective thereafter.

The p roposed changes i n Section 1 6 of th is B i l l amends lang uage in the i nter locutory decree of adoption process to state that the cou rt may issue an i nter locutory decree not less than six months nor more than one year after the m i nor was p laced in the adoptive home by an agency or after the Department and human service zone or the cou rt was i nformed of the custody of the m inor by the petit ioner , u n less sooner vacated by the cou rt for good cause shown .

4

The p roposed changes i n Section 1 7 of th is B i l l rep lace references to "county socia l serv ices boards" and "county's genera l assistance po l icy" with language referri ng to the newly created "human service zones" and "human serv ice zone 's genera l ass istance po l i cy" with regard to respons ib i l it ies for i nd igent bu ri a l . The p roposed changes a lso ass ign to the Department the authority to negotiate with funera l d i rectors rega rd i ng expenses instead of the county socia l services board . \

i/1 The p roposed changes i n Section 1 8 of th is B i l l wou ld amend defi n it ions p rovided i n �«,-\ j \';j chapter 23-4 1 of the North Dakota Centu ry Code , re lati ng to Ch i ld ren with Specia l · .• �

�;�!��0 . Hea lth Care Needs . It wou ld remove the defi n it ion of "county agency" ; create a Y't-7

d efi n it ion for the newly created "human serv ice zone" ; and p rovide a new defin it ion for " human services" , which i ncorporates the defi n it ion of "human serv ices" in chapter 50-06 of the North Dakota Centu ry Code . The same defi n it ion of "human serv ices" is a lso found i n Sections 6 1 , 78 , 90 , and 1 30 of th is B i l l . X

The p roposed changes i n Sections 1 9-23 rep lace "county agency" , "county" , and \"'. ( "county socia l service board" with "human serv ice zone" with i n sections 23-4 1 -06 , 4\r�f 2 5-04- 1 1 , 25-04- 1 6 , and 26 . 1 -45-1 3 of the North Dakota Centu ry Code regard ing � � d ut ies of h uman serv ice zones, d ispos it ion of a person who is not a lega l res ident , ca re of the developmenta l ly d isabled , and Qua l ified Service Providers . Section 20 adds " human service zone" to section 25-04-08 . 1 of the North Dakota Centu ry Code rega rd i ng n otifi cation before d ischarge of a comm itted i nd iv idua l .

The p roposed changes i�f th is B i l l adds new defi n it ions of "host county" and " human serv ice zone" with i n chapter 27-20 of the North Dakota Century Code , re lat i ng to the U n iform J uven i le Cou rt Act.

The p roposed changes in Section 25 of th is B i l l re late to venue for cases regard ing d isposit i on of a ch i ld need ing contin ued foster care services . The p roposed change o n ly reflects the creat ion of the human service zones and does not mod ify which cou nty wou ld sti l l be the proper venue .

The p roposed changes i n Section 26 of th i s B i l l conta i n language regard i ng a ch i ld i n the custody o f t he Department o r county socia l service board , wh i le Section 27

5

conta ins language regard i ng human serv ice zone and the Department hav ing custody of a ch i ld . Both sections of language a re conta i ned i n Sect ion 27-20-20 . 1 of the No rth Dakota Centu ry Code. The language i n Section 26 is effective through December 3 1 , 20 1 9 , and thereafter i nactive , at which po int the language i n Section 27 becomes effective . Section 27 also provides a defin it ion of human serv ice zone .

The p roposed changes i n Sections 28-30 and � of th is B i l l rep lace "county socia l serv ice board " , "adm in istrative county" , and "county" with " human service zone" i n va rious p rovis ions under the Un iform J uven i le Court Act with i n chapter 27-20 of the North Dakota Centu ry Code . The p roposed change in Section 29 a lso u pdates a citatio n .

The p roposed changes i n Sections 3 1 a n d 3 2 of th is B i l l p rovide that a re lative who is lega l custod ian of a ch i ld may enter into an ag reement with Department and cou nty socia l serv ice board to rece ive a subs id ized guard iansh ip payment through December 31 , 20 1 9 , and after that they may enter i nto the same agreement with Department and a human service zone.

The p roposed changes i n Sections 34 and 35 of th is B i l l p rovide for not ice of petit ion and summons regard i ng proceed ings for term inat ion of parenta l r ig hts to be p rovided to a county socia l service board and Department through December 3 1 , 2 0 1 9 , and after that for the notice to be provided to the human serv ice zone and Department .

The p roposed changes i n Section 36 and 37 of th is B i l l provide that upon an order term inat ing parenta l r ights , i f there is no parent hav ing parenta l r ig hts , one option is to com m it the ch i ld to the custody of the county social serv ice d i rector up u nt i l December 3 1 , 20 1 9 . After that date , one optio n wi l l be to comm it the chi ld to the custody of the h uman service zone d i rector. P revious language had d i rected the ch i ld to be p laced i nto the custody of the Executive D i rector of the Department.

The p roposed changes in Section 38 of the B i l l adds "human service zone" a long with the county u nder the Un iform Juven i le Court Act with i n chapter 27-20 of the No rth Dakota Centu ry Code ; and a lso d i rects payment to h uman serv ice zone

6

offices when certa in costs and expenses have been pa id by the human serv ice zone regard ing the care and support of a ch i ld .

The proposed changes i n Sect ion 3 9 of th is B i l l rep lace references to "county socia l service agencies" with "human service zones" , with rega rd to d uties re lati ng to the destruct ion of j uven i le cou rt records u nder the Un iform J uven i le Court Act .

The proposed changes i n Sect ion 40 of th is B i l l rep lace "county social serv ice agency" with " human service zone" i n a subsect ion rega rd i ng respons ib i l ity for d isclosu re of j uven i le records .

Due to the p roposed changes i n Sections 45 th rough 60 , Sect ion 4 1 of th is B i l l i s u pdated to reflect that the Department, through the h uman service zones , wi l l be p rovid i ng for genera l assistance.

The proposed changes in Sections 42 and 43 of th is B i l l change references from "county socia l services" to "human service zones" rega rd i ng guard iansh ips .

The p roposed changes i n Sect ion 44 of th is B i l l change language from "mu lticounty socia l serv ice d istricts" to "human serv ice zones" i n l anguage regard ing local g overnance advisory stud ies.

The proposed changes in Sect ion 45 of th is Bi l l amend language rega rd ing ass istance for the poor by changing word ing from "county human serv ices" or "county" to " human serv ice zone" and "county genera l ass istance" to "genera l ass istance" ; a nd removing language that had p rev ious ly cond it ioned the g rant of cou nty ass istance on the app l icant transferri ng certa i n p roperty i nto trust .

The proposed changes in Section 46 of th is B i l l transfers the respons ib i l i ty for determ i n i n g e l i g ib i l ity for genera l ass istance from the county socia l service board to the human service zone d i rector or designee; and d i rect that appeals of e l i g ib i l ity determ inat ions for general assistance now be d i rected to the human service zone board , rather than to the county soc ia l service board .

7

The p roposed changes in Section 47 of th is B i l l renames "county genera l ass istance" to "genera l assistance" and transfers genera l ass istance authority to the human serv ice zone and its d i rector o r the d i rector's des ignee ; under exist i ng law, that a uthority had res ided with the county socia l service board of each county.

The p roposed changes in Sections 48 and 49 of th is B i l l renames "county genera l ass istance" to "genera l assistance" and transfers the respons ib i l ity for recordkeep ing for genera l assistance and for provid ing med ica l attent ion and hosp ita l izatio n to the poor to the newly created human serv ice zones .

The p roposed changes in Sections 50 , 5 1 , and 54 of th is B i l l transfers the respons ib i l ity for admin iste ring work requ i rements for general assistance from count ies to the h uman service zone i n which a person is a res ident ; and rename "co u nty genera l assistance" to "genera l assistance" .

The p roposed changes in Sections 52 and 53 of th is B i l l transfer the respons ib i l ity for adm in ister ing commun ity work experience p rog rams from counties to the Department and provides that the h uman service zone sha l l p rovide transportat ion and a l l other costs for a rec ip ient's part icipation in the p rogram .

The p roposed changes i n Section 55 of th is B i l l a l lows a county and the Department to seek recovery for county genera l assistance or genera l ass istance ; and removes language stating that the county may recover for necessaries fu rn ished to an i nd igent person from that person 's father , mother , or ad u lt ch i l d ren .

The p roposed changes in Section 56 of th is B i l l estab l i shes the cou nty and the Department has a preferred c la im aga inst the estate of a rec ip ient of county genera l ass istance o r genera l assistance .

The p roposed changes i n Sections 57 th rough 60 of th i s B i l l , for the pu rpose of determ i n i ng res idency for general assistance pu rposes , changes the word i ng from "cou nty genera l assistance pu rposes" to "genera l assistance pu rposes" , a nd change refe rences from "county" to "human service zone" .

8

The p roposed changes i n Section 6 1 of th is B i l l create a numbe r of new defi n it ions with i n sect ion 50-0 1 . 1 -0 1 of the North Dakota Centu ry Code , wh ich had p reviously p rovided for the creation of "mu lticounty socia l service d istr icts" . Defi n it ions a re now p rovided for the pu rpose of estab l ishment of "human service zones" . "H uman serv ice zone d i rector" , is defi ned as a " human serv ice zone tea m member who oversees the h uman service zone's operation , budget, and serves as presid i ng officer of the h uman service zone board " (The same defi n it ion of " human service zone d i rector" i s a lso found i n Section 1 30 of th is B i l l ) . " H uman serv ice zone team member" i s defined as a "county emp loyee who a re respons ib le for admin istering or de l iveri ng of h uman services under the d i rect ion of the human service zone d i rector . " " I nd i rect costs" is defined as "salaries , benefits , and operati ng costs i ncu rred in p rovid i ng those goods and services to support human services that a re genera l ly ava i l ab le for the common benefit of mu lt i p le cou nty agencies . These costs include lega l rep resentation ; fac i l it ies and re lated costs , such as uti l it ies and ma intenance ; adm i n istrative support i nclud ing payro l l , accounti ng , bank ing , and coord i nation ; i nformation technology support and equ ipment ; and m isce l laneous goods and services , such as transportat ion , supp l ies , i nsu rance coverage , phone, and mai l serv ices . " (The same defi n it ion of " i nd i rect costs" is p rovided i n Section 1 30 of th is B i l l . ) Othe r defi n it ions p rovided for i n th is sect ion i nc lude "host county" , " human serv ice zones" , "human services", and " loca l ly adm i n istered economic assistance p rograms" .

The p roposed changes in Section 62 of th i s B i l l amends sect ion 50-0 1 . 1 -02 of the North Dakota Centu ry Code that had previously p rovided for the conso l idation of cou nty agencies into mu lt icounty soc ia l service zones. The p roposed changes now p rovide for the creation of human service zones. U nder th is language, counties a re requ i red to comb ine and consol idate the i r cou nty agencies i nto a human service zone . Th is sect ion amends existing lang uage to specify that h u man service zones succeed to a l l the powers and duties enumerated for county agencies and sha l l perform a l l the funct ions and respons ib i l it ies assigned to county agencies by title 50 of the North Dakota Centu ry Code; requ i res cou nties to ident ify other counties to

9

e nter i nto a h u man service zone ag reement with , and to fi le a written ag reement for the creat ion of a h uman service zone with the Department by December 1 , 201 9 . The agreement m ust identify the proposed cou nties of the human service zone , host county , and ident ify human service zone board members . The Department is req u i red to review and approve a l l agreements i n accordance with section 50-0 1 . 1 -0 3 of the North Dakota Centu ry Code , and may mod ify agreements . If counties do not subm it an agreement, the Department sha l l create the human service zone . The board of cou nty commissioners sha l l also subm it a deta i led p lan for operation of the h u man serv ice zone , as specified by sect ion 50-0 1 . 1 -04 of the North Dakota Centu ry Code , by J u ne 1 , 2020, which Department sha l l approve by January 1 , 202 1 . Du ring the deve lopment of th is p lan , the board of county comm iss ioners sha l l p rovide q uarter ly u pdates as requested to Department . The ag reement and p roposed p lan m ust be approved or d isapproved by Department i n accordance with sect ions 50-0 1 . 1 -03 and 50-0 1 . 1 -04 of the North Dakota Century Code .

Section 62 a lso creates new language that p rovides that a cou nty with a popu lation exceed i ng 60 ,000 accord ing to the 20 1 0 Census may subm it an agreement and the p roposed p lan to operate as a s ing le human service zone or conso l idate with other cou nties i nto a h uman service zone; states that cou nties sha l l cons ider leverag ing exist i ng cooperative agreements with othe r counties in order to best meet needs ; estab l i shes that a social service zone p lan must a l low non-residents of the pa rt icipating counties of a human service zone to access services and m ust also conti n ue to p rovide fund ing for i nd i rect costs associated with the service de l ivery of h u ma n serv ices ; and states that the plan must p rovide the human service zone d i rector with authority to h i re and impose d iscip l i ne upon human serv ice zone team members .

Sectio n 62 p rovides the fo l lowing requ i rements for counties' p lans for the creat ion of h u ma n serv ice zones. The plans m ust:

1 . Specify ro le trans itions for human service zone team members as wel l as the proced ures for team member appeals , g rievances , and d iscip l inary actions ;

1 0

2 . Perm it Department authority to red uce FTEs i n comb inat ion with a transfer of the posit ions ;

3 . Specify that reduction i n access po ints may on ly b e made with agreement of the human service zone board , affected county commiss ions , and Department;

4 . I nc lude i nformation regard i ng the h uman service zone's l i ab i l ity coverage;

5 . I nc lude a statement of agreement between the human service zone and Department a l lowing for review of p roposed transfers of staff from the human service zone to the Department , from Department to the human service zone, or among other h uman service zones ;

6 . I nc lude a description of a l l un ique loca l ly provided p rog rams and services that the counties are p ropos ing to conti n ue to p rovide with in the human service zone ; and

7 . Set forth the membersh ip of the human service zone board , which may not cons ist of more than 1 5 members , as determ ined by boards of cou nty commissioners .

The p roposed changes i n sect ion 63 of th is B i l l change word i ng from "mu lt icounty socia l se rv ice d i strict" to "human service zone" ; and removes existi ng l anguage that a l l owed a county den ied approva l to estab l ish a m u lt icounty socia l serv ice d istrict the ab i l ity to appeal the decis ion . New language is added regard ing necessary criteria in determ i n i ng whether a socia l service zone shou ld be approved or estab l ished , i ncl ud i ng the amount of access points for ind ivid ua ls to app ly and rece ive services; the exist i ng pattern of the counties trade area , the s ize of the county popu lat ion , and whethe r the p roposed human service zone is exclud i ng a county that shares an u rban a rea with other counties in the proposed zone , among other cons iderations . Th is sect ion estab l ishes that the number of human service zone created may not exceed n i neteen , and notes that the Department sha l l have fi na l approva l of a l l h u man serv ice zones and sha l l a lso have the authority to estab l ish or mod ify a human serv ice zone. F ina l ly , it requ i res that a l l human service zones m ust be

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i n it ia l ly approved or estab l ished by January 1 , 2020 , and that they may be mod ified thereafter.

The p roposed changes in Sections 64 and 65 of this B i l l re late to sect ion 50-0 1 . 1 -04 of the North Dakota Centu ry Code. Provis ions in Sect ion 64 are effective from August 1 , 2 0 1 9 to December 3 1 , 20 1 9 , and are then i neffective , wh i le Sect ion 65 becomes effective January 1 , 2020 . Sections 64 and 65 change word ing from " m u lt icounty socia l service d istr ict" to "human serv ice zone" ; and a lso adds language stat ing that "the plan must also requ i re the part icipating counties to part ic ipate i n the i nd i rect cost a l location p lan" . Sections 64 and 65 remove existi ng language from subsection 1 of section 50-0 1 . 1 -04 of the North Dakota Century Code stat ing that "the p lan m ust p rovide that al l services provided by county offic ia ls to county agencies u nder th is code be provided by those county offic ia ls res id ing with i n the same county in which the d istrict office of the mu lt icounty social service d istrict is located " and a lso removes language stat ing that "the p lan also may p rovide that the reg iona l d i rector of a reg iona l h uman service center serves as the d i rector of the m u lt icounty socia l service d istrict . " Sect ions 64 and 65 adds language sett ing forth that the Department has authority to resci nd , term inate , or mod ify the human service zone p la n .

Section 65 a lso makes a variety of changes to the provis ions i n subsection 2 of sect ion 50-0 1 . 1 -04 of the North Dakota Centu ry Code . P u rsuant to the p roposed language socia l service zone d i rectors wi l l be requ i red to p repare a p roposed budget for the human service zone for Department approva l . After Department approva l , t he socia l serv ice zone budget wi l l be requ i red to be subm itted to the board of cou nty com m issioners in each county for review. New language estab l ishes that the board of cou nty commiss ioners may not take any act ion to amend or mod ify the amount approved by Department, but that they may make recommendat ions to the Department or h uman service zone d i rector to amend or mod ify the amount p roposed o r budgeted . New language is a lso added specifying that the human serv ice zone 's i ncome sha l l be depos ited i nto a h uman service zone human services fund by the treasurer of the host cou nty where the human service zone office is

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l ocated . The human service zone board is g ranted authority to estab l ish procedu res for the review and approva l of a l l c la ims agai nst th is fund . The county treasu rer of the host county w i l l be requ i red to pay approved or ratified c la ims from the human serv ice zone h uman services funds . New language a lso p rovided that the Department has authority to reca lcu late and adj ust each h uman service zone's formu la payment b iannua l ly based on factors such as actua l expend itu res over the p rio r or cu rrent payment period , cu rrent costs , offered serv ice, need , i ncome , perfo rmance of d uties assigned by the Department, and caseload . Section 65 also removes a s ign ificant amount of lang uage i n subsections 3 and 4 of sect ion 50-0 1 . 1 -04 of the North Dakota Centu ry Code add ress ing the makeup of the govern i ng board of a m u lt icounty social service d istrict ; s im i la r language, however, is added i n Sect ions 72 and 73 of th is B i l l t o he lp determ ine how the human service zone board shou ld be estab l ished , how it 's membersh ip is to be determ i ned , and other cons iderations .

The p roposed language i n Section 66 of th is B i l l creates a new sect ion i n chapter 50-0 1 . 1 of the North Dakota Century Code relati ng to the d uties of human service zone . Th is language establ ishes duties and responsib i l it ies to be performed by the h u ma n serv ice zone under the d i rect ion and supervis ion of the Department, i nc l ud i ng the supervis ion and d i rect ion of al l h uman serv ice activit ies conducted by the human serv ice zone, inc lud ing genera l assistance or other pub l ic assistance ; superv is ion and adm in istrat ion of human services i n the human service zone wh ich a re fi nanced in whole or i n part by funds a l located or d istrib uted by the Department; to adm i n ister p rog rams such as supp lementa l n utrition assistance prog ram , home energy ass istance p rog ram, designated ch i ld welfare serv ices , and other h uman serv ices ; the d uty to charge and co l lect fees and expenses for services p rovided by i ts staff in accordance with pol ic ies and fee schedu les adopted by the Department; the d uty to supervise and adm in ister rep lacement prog rams with s im i la r objectives; d uty to supervise and admin ister experimenta l or p i lot p rojects when necessary; d uty to cooperate with other human service zones to assu re the cond uct of i n it ia l and ongo ing h uman services with respect to appl icants who a re p resent i n other h u ma n serv ice zones; the duty to emp loy a human service zone d i rector who sha l l

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serve as the p resid ing officer of the human service zone board ; and the duty to co l laborate with Department and other human service zones to ensure the provis ion of q ual ity , effective , and efficient human services to North Dakotans .

The proposed language i n Section 67 of th is B i l l creates a new section in chapter 50-0 1 . 1 of the North Dakota Century Code relat ing to the human service zone d i rectors . Th is section requ i res that human serv ice zone d i rectors must be emp loyees of the human service zone and located with i n the human service zone , un less serv ing more than one human service zone ; sha l l serve as the presid i ng officer of the human service zone board ; may serve more than one human serv ice zone ; may h i re , d iscip l i ne , and d i rect the work of human service zone team members , i nc lud ing the d iscretion to h i re a human service zone team member on behalf of the human service zone board ; sha l l notify the Department and appropriate host county staff concern ing various personnel moves regard i ng a human service zone team member; may notify county comm iss ioners , the human service zone board , or other appropriate county staff regard i ng transfers of staff between county and the Department; sha l l establ ish , i n partnersh ip with Department, equ itable compensation for al l h uman service zone team members ; shal l develop a budget for the human service zone i n partnersh ip with the Department and other human service zone d i rectors ; may serve as a designee of Department to supervise Department emp loyees with i n the human service zone ; and are the custod ian designees of the executive d i rector of the Department for any ch i ld in the custody of the Department.

The proposed language in Section 68 of this B i l l creates a new section i n chapter 50-0 1 . 1 of the North Dakota Centu ry Code to a l low a human serv ice zone and the Department to contract with another human service zone or any other person to d ischarge or exercise the i r powers to adm i n ister human services .

The proposed language i n Section 69 of th is B i l l creates a new section i n chapter 50-0 1 . 1 of the North Dakota Centu ry Code to permit the Department to adopt standards and tra in ing requ i rements for adm in istrat ion of human service . I t provides that Department sha l l develop a system of prog ress ive d iscip l i ne to add ress performance issues with i n the human service zone . I t states that Department sha l l

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p rovide ongo ing performance notificat ions to the human service zone board and human service zone d i rector re lated to comp l i ance with the standards of adm i n istrat ion . I t a lso provides authority for the Department to take act ions to rem edy fa i l u re of human service zones to meet these req u i rements , i nc lud i ng the ab i l ity to req u i re add it iona l tra in i ng , to requ i re a corrective action p lan of the human serv ice zone , to term i nate or mod ify a human serv ice zone p lan , to reca lcu late and adj u st payments to the human service zone , o r to recommend d iscip l i na ry action to the human serv ice zone d i rector or the human service zone board .

The p roposed language i n section 7 0 of th is B i l l creates a new sect ion i n chapter 50-0 1 . 1 of the No rth Dakota Century Code, wh ich states that Department must be an active part ic ipant in the h i ring process of the human service zone d i rector and sha l l des ignate at least two ind ivid ua ls to be on the i nterview panel .

The p roposed language i n Section 7 1 of th is B i l l removes exist i ng defi n it ions i n sect ion 50-0 1 . 2-00 . 1 of the North Dakota Centu ry Code, regard ing loca l expenses of adm in i stration and loca l ly adm in istered economic assistance prog rams as " loca l expenses of adm i n istrat ion" is no longer used and " loca l ly adm in istered economic ass istance p rog ram" defin it ion has been moved to Section 61 of th is B i l l . Also p rovided is a defi n it ion for "host county" with rega rd to human service zones.

The p roposed language in Sections 72 and 73 of th is B i l l add resses the estab l i shment of a human service zone board . I t estab l ishes that each of the boards of county comm iss ioners with in a human serv ice zone sha l l appoint the appointed members of the h uman service zone board . It a lso c la rifies that appointed members of the h u man serv ice zone board must cons ist of loca l e lected offic ia ls , state elected offic ia ls , and othe r key commun ity partners , and that each county must be rep resented on the h uman service zone board by at least one county com missioner of that county. I t a lso sets gu ide l ines regard i ng sex, race , and ethn icity of board members , and req u i res the appoi nted members to elect a vice-pres id i ng officer and a secretary and other officers as the zone board determ ines necessary . New language a lso c la rifies that the human services zone d i rector sha l l serve as p res id i ng officer of the human service zone board as a non-appointed member.

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H uman serv ice zone board members wi l l be appointed to th ree-year terms , with the i n it ia l board appo inted to staggered terms . Human service zone board members wi l l be compensated at a rate to be determ ined by the host county comm ission , upon consu ltat ion with other county comm issions in the h uman service zone cons istent with the rate of compensation for members of other appo inted boards with i n the member count ies and not to exceed the compensation and expense re imbursement of members of the leg is lative assemb ly. Lang uage a lso p rovides for payment for members ' m i leage and actual expenses i ncurred i n attend ing meetings and i n other performance of offic ia l d uties .

The p roposed language i n Section 7 4 of th is B i l l estab l ishes the duties of the human service zone board . This i ncl udes p rovid ing i nformation to the Department re lative to the comm u n ity needs of the human service zone res idents , and to advocate to meet those needs ; to review services and prog rams p rovided by the human service zones and to make period ic recommendations for improvement ; to a id and assist i n coord i nat ing h uman serv ice activities with i n the human service zone by p rivate and pub l ic o rgan izations , and to establ ish procedu res for the review and approva l of al l c la ims aga inst the human service zone human services fund . I t a lso i nc ludes authority to h i re , supervise, and take other personne l actions re lated to the human service zone d i rector with d i rect consu ltation and involvement from the Department; and to hear and act on employee g rievances in accordance with the human service zone p l an and i n compl iance with merit system requ i rements .

The p roposed language i n Section 75 of th is B i l l c la rifies that the d uties of county socia l service boards that existed pr ior to the socia l service p i lot p roject created by 2 0 1 7 Senate B i l l 2206 sha l l remain i n effect th rough December 3 1 , 20 1 9 , at wh ich po int they sha l l exp i re . In add it ion , as a resu lt of the p roposed payment structu re for h u man service zones set out i n Section 1 30 , Sect ion 75 removes the socia l service boards ' requ i rement to provide the Department a report of tota l m i l l s levied for h u ma n serv ices and language regard ing the Department re imburs ing county social service boards for expenses of loca l ly adm in istered economic assistance p rograms.

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The p roposed language in Sect ion 76 of th is B i l l perm its the appo inti ng board of county comm iss ioners to adopt a reso l ut ion to remove a n appointed member of a h u man serv ice zone board without cause; but a lso c la rifies that a board of county com miss ioners may not remove the human service zone d i rector as pres id i ng officer of the h u man service zone board .

The p roposed language i n Section 77 of th is B i l l adds "genera l ass istance" word ing i n add it ion to refe rencing county genera l assistance , and notes that a su it ar is ing out of the adm i n istration of laws re lating to support of persons e l ig ib le for genera l ass istance may be brought by or agai nst a human serv ice zone .

The p roposed language in Sect ion 78 of th is B i l l p rov ides a defin it ion of Human Serv ices , match i ng defi n it ions p rovided e lsewhere i n th is B i l l .

The p roposed language i n Section 79 of th is B i l l removes outdated references re lati ng to the structu re of the Department and adds language that the Department is the offic ia l agency of the state with regard to adm in istrat ion of genera l assistance based on the h u man service zone proposal and ch i ld s upport . The amendment rep laces a refe rence to "county social service agencies" with "human service zones" . This section a lso adds new language stat ing that by Aug ust 1 , 20 1 9 , Department sha l l estab l i sh a temp late for the development of human serv ice zone p lans , i n cl ud i ng p rocess and content requ i rements , access po i nt expectations , c l ient g rievance p rocedu res , human resou rces , and loca l ly fu nded p rog rams or services and how those services wi l l be add ressed ; and a req u i rement that Department sha l l deve lop , a long w i th the North Dakota Association of Counties , a p rocess for consu ltat ion and techn ica l assistance for h uman service zone work ing g roups by August 1 , 20 1 9 .

The p roposed language i n Section 80 , 82 , 84 , 85 , 86 , 87 , and 89 , of th is B i l l changes word i n g from "county socia l services" o r "county soc ia l serv ice board " to "human service zone" i n sections 50-06-0 1 . 9 , 50-06-05 . 3 , 50-06-06 . 2 , 50-06-06 . 5 , 50-06-06 . 1 4 , 50-06- 1 2 , a nd 50-06 .2-0 1 of the North Dakota Centu ry Code regard i ng the a uthority of the Department.

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The p roposed language i n Section 8 1 of th is B i l l adds and p laces language to reflect Department 's powers and duties to i nc lude human service zones instead of county socia l serv ice boards and to admin ister a statewide p rogram for state-funded human serv ices , staffing , and admin istration costs re lated to the adm i n istration of h uman serv ices . Section 81 a lso replaces various references to "county" o r "counties" with " human serv ice zone" and removes a citation . I t p rovides that Department may act as decedent 's successor for pu rposes of col lect ing amounts d ue to the Department or human serv ice zone , un less otherwise d i rected or determ i ned by the Department. Section 8 1 a lso add add itional language to add ress the Department's ab i l ity to adm in ister , a l l ocate , and d istribute funds made ava i lab le for k insh ip care services and payments and services in response to the Federa l Fam i ly F i rst P revention Serv ices Act and to contract with another human serv ice zone or any other pub l ic or p rivate person to d ischarge Department's d uties or powers .

The p roposed language in Sect ion 83 of th is B i l l reta ins language effective unt i l December 3 1 , 20 1 9 , that was created u nder the socia l services p i lot p roject that requ i res Department to pay each service area's expenses for socia l service p rograms for ca lendar years after December 3 1 , 20 1 7 . The amendments i n Section 83 a lso estab l ishes that after December 3 1 , 20 1 9 , the Department sha l l pay each h uman serv ice zone's expenses for adm in ister ing human serv ices for al l ca lendar years thereafter, based on the formu la payment amou nt ca lcu lated for each human serv ice zone under Sect ion 1 30 . New language also p rovides that the Executive D i rector of the Department sha l l authorize expend itu res from the human service fi nance fund to re imburse the Department for its costs of p rovid i ng human services that h i stor ica l ly have been provided by a county , human serv ice zone , or for a new serv ice o r p rogram based on state or federa l law.

The p roposed language in Section 88 of th is B i l l c la rifies that the state sha l l bear the cost, in excess of the amount of fu nds p rovided by the federal government , of h u man serv ices provided by the human service zones ; genera l assistance under chapter 50-0 1 of the North Dakota Centu ry Code ; specia l p rojects approved by Department and agree to by any affected human service zone a re prog rams that

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m ust be funded at state expense for amounts i n excess of funds p rovided by the federa l gove rnment ; and p rograms and services un ique to the h uman service zone wh ich have been i ncl uded in the approved human service zone p la n . Add it ional ly, th is sect ion notes that the state sha l l bear the costs of amounts expended for payments to the e lderly and d isable and for expanded service payments for elderly and d isab led .

The p roposed language i n Section 90 of th is B i l l removes and adds defi n it ions with in the "Comprehens ive Human Services - P rog rams" chapter 50-06 . 2 of the North Dakota Centu ry Code. It removes defi n it ions for "county agency" and "county p lan" wh ich a re no longer appl icab le ; adds defi n it ions for "human service zone" , "human serv ice zone p lan " , and "human services" ; and replaces "county agency" with " human serv ice zone" . Add it iona l ly, "qua l if ied service p rovide r" is defi ned to mean a h u man serv ice zone or independent contractor, which can be an i nd iv id ua l or an agency , who ag rees to meet standards for serv ices and operations estab l ished by the Department .

The p roposed changes in Sections 91 and 93 of th is B i l l remove and rep lace language with i n section 50-06 .2-03 and 50-06 .2-06 of the North Dakota Centu ry Code . The word "p rog rams" , located after the words "human services" , is removed as red undant based on the defin ition of "human services" , and in mu lt ip le locat ions refe rences to "county" or "county agencies" a re rep laced with "human service zones" .

The p roposed language i n Section 92 of th is B i l l reta ins the powers and d uties of county agencies as they cu rrently exist re lati ng to h uman services th rough December 3 1 , 20 1 9 . On January 1 , 2020 , section 50-06 .2-04 of the North Dakota Centu ry Code wou ld be amended to provide that human service zones wi l l take on the respons ib i l ity for adm in iste ring comprehens ive human services for i nd ivid uals and fam i l ies at the h uman service zone leve l . At mu lt ip le locat ions "county human services" word i ng is rep laced with "human serv ice zone" to reflect that change. This sectio n reta i ns requ i rements for the creat ion of a human service zone plan to gu ide the efforts of the h uman service zone. Add it iona l ly , the sect ion c la rifies that the

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human serv ice zone sha l l make certa i n services ava i lab le to any i nd ivid ua l request ing serv ice and determ ined e l ig i b le on the basis of a functiona l assessment conducted in accordance with state and federa l l aws and regu lations . I t a lso estab l i shes that a human service zone sha l l subm it annua l ly to the board of county comm iss ioners a budget , approved by the state agency (Department) , conta i n i ng an estimate and support ing data , sett ing forth funds necessary to carry out the p rovis ions of chapter 50-06 .2 of the North Dakota Centu ry Code .

The p roposed change i n Section 94 of th is B i l l removes the defi n it ion of "county agency" and adds the defin it ion of "human serv ice zone" with i n sect ion 50-09-0 1 of the North Dakota Centu ry Code regard ing a id to dependent ch i l d ren .

The p roposed language i n Sect ions 95 through 1 08 o f th is B i l l make changes to sect ions 50-09-02 , 50-09-02 .2 , 50-09-03 , 50-09-04 , 50-09-06 , 50-09-07 , 50-09-08 , 50-09-08 . 2 , 50-09-08 .3 , 50-09-08 .4 , 50-09-09 , 50-09- 1 4 , 50-09-29 , and 50-09-30 of the No rth Dakota Centu ry Code regard i ng a id to dependent ch i l d ren rep lace the references to "county" or "county agencies" to "human service zones" .

The p roposed changes made with i n Section 95 i n rega rds to subsections 20 and 2 1 of sect ion 50-09-02 of the North Dakota Centu ry Code g ive the Department the ab i l ity to dete rm i ne if the human service zone shou ld not adm in ister the ch i ld and fam i ly services and fede ra l payments for foster care and adoption assistance.

The p roposed changes made in Sect ion 96 cla rify that e i ther the human service zone o r state agency ( referr ing to the Department) wi l l be i nvo lved i n the p rocess for p rovid i ng ass istance for adopted ch i l d ren with specia l needs , previously sect ion 50-09-02 .2 of the North Dakota Centu ry Code just add ressed the county agency.

The p roposed changes made in Section 97 of this B i l l c la rify that the h uman service zone has certa i n duties u nder th is chapter 50-09 of the North Dakota Centu ry Code rega rd i n g to aid to dependent ch i ld ren , u n less otherwise d i rected or determ ined by the state agency. I t also updates language that the h uman service zone sha l l submit annua l ly , th rough the human service zone d i rector, to the state agency a budget for

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the human serv ice zone instead of the county subm itt i ng to the board of county com miss ioners .

The p roposed changes made i n Sect ion 98 of th is B i l l a dds language to state that human service zones are req u i red to preserve and p rotect the re l ig ious fa ith of ch i l d ren u nder the i r j u risd iction .

The p roposed changes made i n Sect ion 99 of th is B i l l c la rifies that app l ications for ass istance for a id to dependent ch i ld ren may be made to e ither the human service zone o r state agency.

The p roposed changes made in Sect ion 1 00 of th is B i l l c la rify that when a human serv ice zone o r state agency receives an app l icat ion for ass istance for a id to dependent ch i l d ren ; the human serv ice zone , un less otherwise d i rected by the state agency , sha l l make an investigation and record of the matter.

The p roposed changes made in Sect ion 1 0 1 of th is B i l l estab l ishes that the Depa rtme nt may request from human service zones i nformation deemed necessary to carry out the ch i ld support enforcement prog ram .

The p roposed changes made i n Sect ions 1 03 , 1 04 , 1 07 , and 1 08 of th is B i l l mere ly changes refe rences from "county agencies" to "human serv ice zones" and changes "department" to "state agency" with i n chapter 50-09 of the North Dakota Centu ry Code , re lat i ng to a id to dependent ch i l d ren .

The p roposed changes made i n Sect ion 1 02 of th is B i l l change "department" to "state agency" and adds "human serv ice zone" to the l ist entit ies that a person is i m m u ne from s u it or l iab i l ity u nder any state or fede ra l law for any d isclosu re of i nformation made under chapter 50-09 of the North Dakota Centu ry Code , re lat ing to a id to dependent ch i ld ren .

The p roposed changes made i n Sect ion 1 05 of th is B i l l c la rify that upon comp letion of an app l i cation for assistance for a id to dependent ch i ld ren , a human service zone or the state agency is respons ib le for determ in ing whether the app l icant may be

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p rovided ass istance , what type of assistance may be p rovided , and the date upon wh ich ass istance may beg i n .

The p roposed changes made i n Sect ion 1 06 of th i s B i l l c la rify that an app l icant for tempora ry assistance for needy fam i l ies , who is agg rieved by a h uman service zone or state agency decis ion or delay in making a decis ion , may appeal to the state agency .

The p roposed changes made i n Sect ion 1 09 o f th is B i l l revise t he defi n it ion of "authorized agent" with i n chapter 50- 1 1 of the North Dakota Centu ry Code , re lat ing to foster care . Th is change reflects that the human service zone wi l l now be the Department 's the authorized agent.

The p roposed changes made i n Sect ion 1 1 0 of th is B i l l aga i n reflect that the human service zone wi l l be defi ned as authorized agent for chapter 50-1 1 . 1 of the North Dakota Centu ry Code, re lating to early ch i l dhood services , removes language p rovid i ng a defi n it ion for "county agency" , and p rovides the same defi n it ion for " human serv ice zone" that has been p rovided i n mu lt ip le other locations with in th is B i l l .

The p roposed changes made i n Sect ion 1 1 1 o f th is B i l l change word ing from "county socia l serv ice board " to "human serv ice zone" regard i ng the foster care parent g ri evan ce p rocess.

The p roposed changes made i n Sect ion 1 1 2 of th is B i l l c la rify that a human service zone is now i nvo lved i n the foster care parent g rievance p rocess by rep lacing the cou nty soc ia l service boards in that ro le . New language also c la rifies that if no written reso lut ion is made at the forma l g rievance heari ng , the foster parents may req uest a forma l hearing to be held at a confl ict free human service zone office . The h u ma n serv ice zone d i rector or the i r designee wi l l be respons ib le for p rovid ing a record of th is hear ing and must review a l l p rior contact between the foster care parents and the Department o r human service zone re lat i ng to the g rievance . The human serv ice zone d i rector is then requ i red to make a fi na l determ inat ion re lati ng to the g rievance .

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The p roposed changes made in Sect ion 1 1 3 requ i re that the human service zone or Department take over the authority county agencies previously had to i nvestigate and record the c i rcumstances of each app l icant or recip ient of med ica l assistance , i n o rder to ascerta i n the facts supporti ng the app l ication , or the g rant ing of assistance .

The p roposed changes made i n Sect ion 1 1 4 of th is B i l l p rovide g u ide l i nes for human serv ice zones and the Department to investigate med ica l assistance app l ications . It a l l ows Department to request from human service zones i nformation necessary to ca rry out the med ical support program and a l lows human serv ice zone or Department emp loyees to admin ister oaths and affi rmations .

The p roposed changes made i n Sect ion 1 1 5 of th is B i l l amend defi n it ions in chapter 50-24 . 5 of the No rth Dakota Centu ry Code , re lat ing to a id to aged , b l i nd , and d isab led persons . The defi n it ion for "county agency" is removed and a defin it ion for " h uman serv ice zone" i s added .

The p roposed changes made in Sections 1 1 6 th rough 1 1 8 of th is B i l l changes "cou nty agency" to "human service zone" in sections 50-24 . 5-02 , 50-24 . 5-03 , and 50-24 . 5-07 of the North Dakota Centu ry Code, re lati ng to a id to aged , b l i nd , and d isab led persons .

The p roposed changes i n Sections 1 1 9 and 1 23 of th i s B i l l remove references to sect io n 50-03-08 of the North Dakota Centu ry Code , wh ich is repea led by Section 1 38 of th is B i l l .

The p roposed changes i n Section 1 20 o f th is B i l l amend defi n it ions i n chapter 50-24 . 7 of the North Dakota Centu ry Code , re lat i ng to expanded serv ices payments for e lderly and d isab led . The defin ition for "county agency" is removed and a defi n it ion for " human serv ice zone" is added . Add it iona l ly , qua l ified serv ice p rovider is defined to mean a human service zone or i ndependent contractor, wh ich can be an i nd iv id ua l or an agency, who agrees to meet standards for serv ices and operations estab l ished by the Department.

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The proposed changes i n Section 1 2 1 of th is B i l l reflect that the Department wou ld now supervise and d i rect human services zones, i nstead of county agencies , i n the admin istrat ion of expanded service payments for the e lderly and d isab led .

The p roposed changes i n Section 1 22 of th is B i l l reflects a transfer of powers and duties from counties to the newly created human service zones when it comes to adm in ister ing the expanded service payments for the e lderly and d isab led .

The proposed changes i n Section 1 24 of th is B i l l c la rify defi n it ions under chapter 50-25 . 1 of the North Dakota Centu ry Code, regard i ng ch i ld abuse and neg lect. It estab l ishes that a designee of the human service zone d i rector sha l l serve as the presid ing officer of a loca l ch i ld p rotection team , together with other representatives that the D i rector selects . It removes language requ i ring the county socia l service board to consent to the members the D i rector selects for the loca l ch i ld p rotect ion team . The proposed language replaces the county socia l service board as the Department's authorized agent with the human service zone . The proposed changes replace "county socia l service board" , "county" , and "mu lticounty" with "human service zone . " I t also estab l ishes language saying the Department may coord i nate the o rgan ization of loca l ch i ld p rotect ion teams on a human service zone basis , p reviously the language was mandatory .

The proposed changes i n Section 1 25 of th is B i l l c larify that ch i ld fata l ity review panels sha l l promote interhuman service zones commun ications regard i ng ch i ld death .

The proposed changes i n Section 1 26 of th is B i l l rep laces "county socia l service boards" with "human service zone" and adds "zone" to ensure the Department or the human service zone are not requ i red to imp lement or enforce vu l nerab le adu lt protective services p rovis ions if an appropriation is not p rovided by the leg is latu re to support that implementation i n a zone.

The p roposed changes i n Section 1 27 of th is B i l l , amends defi n it ions i n chapter 50-29 of the North Dakota Centu ry Code, re lati ng to ch i l d ren 's hea lth insurance

24

p rogra m . The defi n it ion for "county agency" is removed and a defi n it ion for " human service zone" is added . The p roposed changes a l so update a legal citation .

The p roposed changes i n Section 1 28 of th is B i l l updates a lega l citat ion and removes language regard ing the duties of the Department rega rd ing ch i l d ren 's hea lth i nsu rance p rog ram that had p reviously requ i red the Department to prov ide re imbursement to counties for expenses occurred i n the adm in istrat ion of the ch i l d ren 's hea lth i nsurance program as re imbursement to the h uman service zone wou ld occu r i n accordance with Section 1 30 o f th is B i l l .

The p roposed changes in Sect ion 1 29 of th is B i l l rep laces "county agency" with " h uman serv ice zone" regard ing the d uties of the human service zone for the ch i l d ren 's hea lth i nsurance prog ram .

The p roposed changes in Sect ion 1 30 of th is B i l l create chapter 50-35 of the North Dakota Centu ry Code, re lati ng to state paid human serv ices . P lease note that Section 1 43 of th is B i l l declares Sect ion 1 30 to be an emergency measure to address p roposed section 50-35-06 of the North Dakota Centu ry Code . Provided be low is ana lysis of each new section created under Sect ion 1 30 :

50-35-0 1 : Provides defi n itions , inc lud ing "department" , "d i rector" , "economic ass istance" , "human service zone" , "human service zone d i rector" , "human serv ices" , and " i nd i rect costs" . The defi n it ion of "economic assistance" m i rrors the defi n it ion of " loca l ly adm in istered econom ic assistance p rograms" cu rrent ly i n sect ion 50-0 1 .2-00 . 1 of the North Dakota Centu ry Code . The defi n it ions for "human service zone" , "human serv ice zone d i rector" and " human services" a re the same defi n it ion as p rovided e lsewhere i n th is B i l l . The defi n it ion of " i nd i rect cost" is the same defi n it ion as p rovided i n Sect ion 61 and wi l l be used to estab l ish the formu la payment to be paid by the Department to the county to cover the county's i n d i rect costs .

50-35-02 : The proposed language estab l ishes that the Department sha l l ad m i n ister a statewide p rog ram for state fund ing of staffing and adm in istrative costs re lated to the adm i n istration of human serv ices . The proposed

25

l anguage deta i ls that payments to human service zones and Department m ust be paid pursuant to formu la p rovided for in the p roposed sect ion 50-35-04 of the North Dakota Centu ry Code , with the fi rst payment i n January 2020 . The language also estab l ishes that the human serv ice zones sha l l cooperate to adopt and imp lement adm in istrative and operat iona l cost-savings methodolog ies and determine options for consol idations . The language also p rovides that du ring the 201 9-20 I nteri m , Department sha l l cons ider options for a l lowing a human service zone to opt i n to state emp loyment . The study by Department must identify u nder what cond it ions a trans it ion to state emp loyment may be des i rab le for a human service zone ; outl i ne the governance p rocess for choos ing to opt in to state employment, inc lud ing a descr iption of the ro le of the human service zone board , county comm issions , and Department; and i nc lude a temp late and potentia l t ime l i ne for any zone choos i ng to make the transition to state emp loyment .

50-35-03 : Estab l ishes p rocedu res for the d i rector of the Department to d istribute formula payments for each human serv ice zone for each ca lendar yea r. The proposed language sets forth that the D i rector has authority to amend and mod ify each human service zone 's formu la payment. P rovides that before June second of the p revious yea r, the d i rector of Department sha l l reca lcu late the tota l formu la payment for each human service zone pursuant to the p roposed section 50-35-04 of the North Dakota Centu ry Code , and that for payments d isbursed after ca lendar year 2020 , the d i rector sha l l subtract from a human service zone's J u ne fifteenth d isbu rsement any amount exceed i ng the l im itation under the p roposed sect ion 50-35-04 of the North Dakota Centu ry Code.

50-35-04 : Estab l ishes p rocedu res for the d i rector of Department to ca lcu late formu la payments to each human serv ice zone based on certa i n factors . Th is p roposed section a lso inc ludes language authorizi ng the d i rector of the Department to authorize expend itu res from the human service fi nance fund to re imbu rse the Department for its costs of p rovid i ng h u man services that have

26

h istor ica l ly been provided by a county , human service zone , o r a new service or p rogram based on federa l o r state law. The proposed language sets forth that the Department may authorize expend itu res from the human service fi nance fund to re imburse the Department for transitiona l costs i ncu rred for imp lement ing the statewide p rog ram for state fund ing . The p roposed language a lso estab l ishes that the d i rector of the Department has authority to reca lcu late and adj ust each h uman service zone's formu la payment b iannua l ly based on a variety of pert inent factors . The p roposed language states that the spend ing authority of the h uman service zone m u st be increased based on the approved , adj usted , or mod ified formu la payment. The p roposed language a lso provides for the d i rector of the Department to ca lcu late payment for i nd i rect costs accord i ng to a formu la estab l ished by the Department .

50-35-05 : The proposed language req u i res that each human service zone i n the state sha l l ma inta i n a human service zone human serv ices fund . Al l expend itu res by the human service zone for human services a re requ i red to be pa id from th is fund . If insuffic ient funds are present i n the h uman service zone human services fund , the d i rector of Department may approve a transfer from the h uman service finance fund to the human service zone human serv ices fund . In add ition , th is section p rovides that the ba lance of funds in a h u man service zone human serv ices fund on January 1 of each year after ca lendar year may not exceed five hund red thousand do l la rs i n a zone that had a n n ua l expend itu res of two m i l l ion do l la rs or g reater i n ca lendar year 2020 , o r a maximum of one hund red thousand do l lars for a zone that had annua l expend itu res of less than two m i l l i on do l lars in ca lendar year 2020 . Th is language is s im i lar to the language used i n 201 7 Senate B i l l 2206.

50-35-06 : Estab l ishes that the county treasurer sha l l transfer the fu l l amount of the serv ice area human services fund cu rrently i n existence to the human serv ice zone human services fund on January 1 , 2020, and p roh i b its the transfer u nt i l January 1 , 2020 , un less approved by the Department . The

27

p roposed language also sets forth that if on January 1 , 202 1 , and each year thereafter , the balance of a h uman serv ice zone human serv ices fund exceeds the l im itat ions i n proposed sect ion 50-35-05 of the North Dakota Centu ry Code , the d i rector of the Department sha l l red uce the human service zone's formu la payment as d i rected i n the p roposed subsect ion 4 of section 50-35-03 of the North Dakota Centu ry Code.

50-35-07 : The proposed language sets forth that the h uman serv ice fund is a specia l fund i n the state treasury . Moneys i n the fund may be used , subject to leg is lat ive appropriation , for the p rovis ion of formu la payments to h uman serv ice zones and payments to the Department .

The p roposed changes i n Sect ion 1 3 1 of th is B i l l rep lace references to "cou nty socia l service" w i th " h u man service zone" i n a sect ion focus ing on records management .

The p roposed changes i n Sect ion 1 32 of th is B i l l removes language t ied to the statefunded socia l services p i lot project as chapter 50-34 of the North Dakota Centu ry Code and the p i lot p roject is effective throug h J u ly 3 1 , 20 1 9 .

The p roposed changes i n Sect ion 1 33 of th is B i l l wi l l cont in ue with the changes made i n 2 0 1 7 Senate B i l l No . 2206 that is set to exp i re after the fi rst two taxable years beg i n n i ng after December 3 1 , 20 1 6 . The p roposed change wi l l remove the cou nty's ab i l ity to levy an annual tax for human serv ices pu rposes .

The p roposed changes i n Sect ion 1 34 of th is B i l l makes changes to reflect that the p roperty tax savi ngs statement provided to taxpayers m ust, for taxable years beg i nn i ng after December 3 1 , 201 8 , ident ify property tax savi ngs rea l ized by the taxpayer u nder the newly created p roposed chapter 50-35 of the North Dakota Centu ry Code i n add it ion to other sou rces of tax re l ief identified in sect ion 57-20-07 . 1 of the North Dakota Centu ry Code.

The p roposed changes in Sect ion 1 35 of th is B i l l u pdates a citat ion to inc lude human serv ice zone formu la payments under sect ion 50-35-03 of the North Dakota Centu ry Code .

28

The p roposed changes i n Section 1 36 of th is B i l l wou ld rep lace "county socia l serv ices board " with "human service zone" regard i ng the defi n it ion of "welfare recip ient" i n sect ion 57-55- 1 0 of the North Dakota Centu ry Code regard ing the d eterm ination of mob i le home tax exemptions and exceptions .

The p roposed changes i n Section 1 37 of th is B i l l rep laces "county genera l ass istance workers" with "human serv ice zone genera l ass istance workers" and "counties" with " human service zones or the department of human services" rega rd ing who can be defined as an employee under chapter 65-0 1 of the North Dakota Centu ry Code, regard ing Workforce Safety and I nsu rance .

Sect ion 1 38 o f th is B i l l repea ls North Dakota Centu ry Code sect ion 50-06-20 . 1 , re lat i ng to the h u man services g rant p rog ram ; section 50-06 . 2-05 , re lat ing to cou nty h u man serv ices p rogram fund ing ; and chapter 50-03 , re lat i ng to the county human serv ices fund . Repeal of these prov is ions wi l l take p lace when th i s B i l l takes effect.

Section 1 39 of th is B i l l repea ls North Dakota Centu ry Code sect ions 50-0 1 -03 , county socia l service board may accept property o r secu rity ; 50-0 1 . 1 -02 . 1 , fi nanc ia l i ncentives for creation of mu lt icounty soc ia l service d i str icts ; 50-0 1 .2-03 . 1 , county soc ia l serv ice boards may contract ; 50-0 1 .2-06 , standard s of adm in istrat ion for county socia l service boards ; 50-06-05 .7 , mu lt icounty ag reement to adm in ister socia l service p rog ram ; 50-06-06 . 1 , I nd ians-genera l assistance contract requ i red ; and 50-25 . 1 -06 . 1 , case load standards for ch i ld abuse and neg lect . Sect ion 1 4 1 of th is B i l l n otes that repea l of the provis ions i n th is sect ion wi l l n ot be effective unt i l January 1 , 2020 .

Section 1 40 of th i s B i l l p rovides for a contingent appropr iat ion and authorization . Th is sect io n a uthorizes the Department , subject to the ava i lab i l ity o f funds , to adj ust o r i ncrease fu l l-t ime equ ivalent posit ions i n various a reas , i nc lud ing up to two h u nd red twenty-th ree positions . Current ly , Senate B i l l No . 20 1 2 is mentioned i n th is B i l l as the Department was ant ic ipati ng that any appropriat ions and fu l l-t ime eq u ivalent pos it ions granted by the Leg is lative assemb ly wou ld be incl uded i n the Department appropriations b i l l , Senate B i l l No . 20 1 2 . The posit ions may be adj usted

29

or i ncreased on ly if one or more human service zones transfers powers and duties associated with one or more prog rams, service , or funct ions from a human service zone to the Department. The language cla rifies that any posit ions added to the Department wou ld be posit ion transfers from the human service zone and m ust not resu lt i n a net add it ion of posit ions de l ivering h u man serv ices p rog rams , services , or functions as p rovided in Department's appropriat ion b i l l , Senate B i l l No. 20 1 2 . Department wou ld have to notify the office of management and report to the budget sect ion after J une 30 , 2020 , if one or more fu l l-t ime equ iva lent positions a re authorized u nder th is section of this B i l l ; and wou ld also have to notify the app ropriations comm ittees of the sixty-seventh leg is lative assemb ly of any transfers . Th is Section then out l ines how many fu l l-time equ iva lent posit ions cou ld be transferred from a number of d ifferent p rog rams . Th is Sections a lso sets forth that the fu nds for the sa laries , wages , and operat ing costs associated with any position added to the Department must be paid for with the l i ne items of sa laries and wages and operati ng costs authorized in Senate B i l l No . 20 1 2 .

Sect io n 1 4 1 of th is B i l l declares effective dates for va rious p rov is ions of th is B i l l , as fo l l ows : Sect ion 64 of th is Act becomes effective on August 1 , 20 1 9 . Sect ions 1 32 , 1 33 , 1 34 , and 1 35 are effective for taxab le years beg i nn i ng after December 3 1 , 20 1 8 . Sect ions 1 , 3 th rough 1 3 , 1 5 , 1 6 through 25 , 27 through 30 , 32 , 33 , 35 , 37 th rough 60 , 65 th rough 74 , 76 through 82 , 84 through 9 1 , 93 th rough 1 29 , 1 3 1 , 1 36 , 1 37 , 1 39 , and 1 40 of th is Act become effective on January 1 , 2020 .

Sect ion 1 42 of th is B i l l p rovides exp i ration dates for Sections 1 4 , 26 , 3 1 , 34 , and 36 of th is Act , a l l of which a re effective th rough December 3 1 , 20 1 9 and exp i re thereafter .

Sect io n 1 43 of th is B i l l is an emergency clause for Section 1 30 of th is B i l l concern ing creatio n of a new chapter 50-35 of the North Dakota Century Code concern ing statepa id h uman services - app l ication , formu la payments - d istrib ut ions by the Department , ca lcu lat ion of formula payment - expend itu res , human service zone

30

h u man services fund - estab l ishment - fund ba lance l im itations , human service zone human serv ices fund - transfer , and human service fi nance fun d .

Th is con cl udes my test imony. I wou ld b e happy to t ry to answer a n y questions the com m ittee may have . Thank you .

3 1

� 1 � ;).,\ ';J-lJ>

3/13/ 1 '1 Testimony P repared for the House H u man Services Comm ittee March 1 2 , 20 1 9 By: Terry Traynor , NDACo Executive D i rector

SNDACo r� . , N0Ril1 OAKf

f

l',:, ,\SSOCt/, r tON Of COUNT IES

RE : Senate B i l l 2 1 24 - Socia l Service Redes ign

Tha n k you , Cha i rman Weisz and committee members , for the opportun ity

to add ress what is l i kely the most s ign ificant and far-reach i ng p iece of

leg i s l at ion to be considered th is Sess ion . As th is committee is aware , the

North Dakota Association of Counties represents a l l 53 cou nt ies of our

state . O u r po l i cy posit ions are deve loped by delegates from each , as wel l

as i nd iv id ua l s specifica l ly representi ng the elected and fu l l -t ime appo i nted

cou nty offic ia ls - i ncl ud ing the cou nty socia l serv ice d i rectors . Col lectively ,

with the amendments i ncorporated by the Senate H uman Services

Committee , we stand in support of Senate B i l l 2 1 24 .

C learly , o u r Associat ion is fu l ly i n support of the cont i n uat ion of state

fund i ng for the de l ivery of county socia l serv ices. Th is has proven to be

(a l though i n some cases s l ightly i nadequate) a much more equ itab le

means of taxpayer support of these vita l serv ices to our c it izens .

We recogn ize that with state fund i ng there is an expectation of g reater

state contro l , and fu rther we do not d isag ree that there are effic iencies that

can be obta i ned . For th is reason we strong ly support the p i l ot projects

u nderway on a prog ram bas is to exp lore where and how these efficiencies

can be ach ieved without erod ing serv ices at the loca l leve l .

The concept of mu lti -county zones , advanced i n SB2 1 24 , has obviously

been successfu l on a vo l untary bas is , as mu lti -county arrangements -

some i n p lace for many years - have improved serv ices and ga i ned

:It { % .;>\>t

�tt?J / 1 � efficiencies . The map on the i nfograph ic i l l ustrates the seven m u lt i-cou nty f1 · 2

d istricts i n-p lace a l ready, and where active d iscuss ions a re on-go ing . Our

Associat ion supports these loca l ly-d riven efforts and we bel i eve that

SB2 1 24 as it comes to you from the Senate provides a reasonab le wi ndow

for cou nt ies to work together towards imp lementation . There a re certa i n ly

counties that wou ld desi re more t ime, and we wou ld not oppose efforts to

g ive them that , we recogn ize and appreciate the g reater flexi b i l ity that was

added i n the Senate .

Fu rther , we are very support ive the other amendments to the b i l l that were

added i n the Senate to add ress county concerns . As it comes to you r

committee , we be l ieve that i t i s i n excel lent shape to cont i n ue the

improvements a l ready beg u n . We urge th is Committee and the ent i re

House to support the needed fund i ng and the budget flexi b i l i ty necessa ry to

make th is transit ion successfu l . P lease g ive SB2 1 24 a Do Pass

Recommendat ion .

SB 2124 conti n ues the Leg is l atu re's efforts to fu l ly fu nd the d i rect costs of h u ma n serv ice de l ivery with state resou rces rather tha n p roperty taxes,

wh i l e a l so e n h a nc i ng service de l ive ry fo r No rth Da kota 's c itizens .

• D i rect de l ive ry of h u m a n services th rough 19 m u lti-cou nty "zones" that preserve a l l cu r rent se rv ice a ccess l ocations - counties

-ith popu l ation over 60,000 ca n be s i ng le..irou nty zon es • Loca l dec i s ion -mak i ng i n zone creation, with

fi n a l p l a n a pp rova l by DHS - zones to be i mp lemented by J a n u a ry 1, 2021

• Zone fi n a nc i a l s i nc l uded with host county fisca l a ud it

• A state fu n d i ng formu l a for d i rect costs that i s tied to a ctua l 2018 expend itu res and state sa l a ry a dj u stments

• Loca l fu nd i ng of i n d i rect costs with a portion re imbu rsed by the fede ra l i n d i rect cost p l an

• An expa nded h u m a n service zone boa rd of county com m iss ione rs, l eg is l ators and other l oca l l e aders to h i re the zone d i rector and

•ensu re l oca l se rv ice n eeds a re add ressed Consu ltation ro l e for DHS in zone d i rector se lection a n d c lea r pa rtic i pation i n eva l uating performan ce of the d i rector and zone

• Creation of fou r zone operationa l su perv isors to p rovide techn ica l ass ista nce, p rogram supervis ion , eva l uation, and su pport to zones - bu t these FTE's wi l l be found with i n exi sti ng zone emp loyment

• A l l zone emp loyees rema i n with i n the state merit system as requ i red by federa l l aw

• Emp loyment a nd sa l a r ies of exi sti ng emp loyees wi l l be p reserved, with tra nsfers & reass ignments p rotected by existi ng ru l es

• A strong p rocess of p rogressive d isc i p l i ne to ensu re performance without endanger ing the resou rces necessa ry for c l i ent services

• Optiona l t ra nsfe r of zone emp loyees to the state for specific services that may be i dentified for "u n itization" ; but a l so a l l ows for zone su pervi s ion of state emp loyees if they phys ica l ly rema i n in the zone office

• U n ique l oca l p rograms to be conti n ued • Statewide cons i stency i n i nd igent bur i a l and

u l ti mate ly genera l a ss i stance to i nc rease effic iency a nd gua ra ntee equa l access

INTERIM WORK

Respond i ng to the Leg is l atu re's d i rection to prepa re a p l a n that p rovides efficient,

effective, q u a l ity h uma n se rvices across the state, a co l l a borative effort was

u nderta ken - and i s ongo ing - to i m p lement that goa l . A co l l a borative tea m

d iv ided i nto groups and spent h u nd reds of hou rs ho l d i ng 50 meeti ngs to deve lop a

susta i n a b le p l a n .

Proposed Timeline


December 1 , 201 9 Zone Agreements

Zone Board


Employed

June 30, 2020 Final Zone Plan

Submittal


Implementation

Zone Creation - This map i l l ustrates the counties who cu rrently have mu lti-county col laborations a long with those who a re i n d iscussions .

CAMADA

DMD£ -{ BLRK! BQTTll,(MJ ROlfTT[ CAW,UlR P[MS,M. - fl)\\lj[R

WILLIAMS ',

Mctt[NRY P:[W

Centra !pDY

wrus _r FOSTfR

KIDDER STIJTSMAN

l lOOIN

EMMONS l RICHLM<D

MdNTOS!i DICK[Y W<.Un

Blue = Existing Multi-County Col laborations � = Counties with Shared Management Yellow = Counties that have i n itiated discussions regarding col laboration �= Counties over the 60,000 threshold Yel low Circle - Southwest 8 Counties dispussing further col laboration

H u m a n S e rv i c e Red e s i g n A l l ows fo r C o n t i n u ed P ro p e rty Tax Re l i ef ·"i

State fu nd i ng wi l l e l im i nate the 20 m i l l a uthority cou nties have u sed i n the

past fo r soci a l services creati ng P ERMAN ENT p roperty tax re l i ef.

•

•

•

:t�

Senate B i l l 2 1 24 - Social Service Redesign House H uman Services Comm ittee

March 1 2 , 20 1 9

% )I ?-t.-f ?J/,'& I , 1 f� . \

Cha i rman Weisz and members of the House H u man Services Committee , I am

Kim Jacobson , D i rector of Agassiz Val ley Socia l Services D istr ict wh ich is a co l laborative

of Tra i l l and Steele Counties . I n add it ion , I am a member of the North Dakota County

Socia l Services D i rector Association and a North Dakota Association of Counties

(N DACo) boa rd member. Thank you for this oppo rtun ity to speak in suppo rt of SB 2 1 24.

For over a decade , cou nties have advocated before the No rth Dakota legis lat ive

bod y u rg i ng that p roperty tax re l ief cou ld be accomp l ished th rough t ransferring socia l

services-re lated ad m in istrative costs . The North Dakota County D i rector Association has

h istorica l l y stressed that such re l ief cou ld be accomp l ished but carefu l work wou ld need

to be done to ensure there were not un i ntended consequences to the vu lnerab le

popu lat ions i n wh ich we serve . To do so , we stressed that reform wou ld on ly be poss ib le

if were ab le to get the r ight people a round the tab le to strateg ize , p lan and i nnovate for

both service and fund ing so l ut ions a long with the rig ht suppo rts to do so .

With the passage of SB 2206 d u ring the 65 th Leg is lat ive Assembly , important

strides were accompl ished . Du ring the past i nterim session , cou nties partnered with the

Department of H uman Services in not on ly implementi ng the fiscal component of SB

2206 , bu t a lso to exp lore ways that socia l services can be redesigned . Th i s was done

with ta lented and committed ind ivid ua ls sitt ing down and worki ng hard to beg in to

redesign o u r system . Du ring i nterim , over 50 meeti ngs were held with a range of state

and county leade rs a long with profess iona l fac i l itators to he lp lead efforts to help ensure

l l P a g e

that we provide even g reater loca l service to vu lnerab le citizens . From these efforts ,

various p i lot projects have been implemented focusing on how best to improve c l ient

service wh i le worki ng co l laborative ly. Th is has yielded improvement i n qua l ity of services

but has a lso assisted us with i ncreasing effic iency and effectiveness.

When Senate B i l l 2 1 24 was fi rst i ntroduced each County D i recto r from across the

state was invited to engage i n a process to co l lective ly review the proposed b i l l . During

that process core concerns were identified and presented to the Senate . Whi le on Senate

side , the County D i rector Association had representat ion on the work g roup that d rafted

the amend ments. The engrossed vers ion of Senate B i l l 2 1 24 has substantia l ly

add ressed our core concerns . Th is so l id ifies ou r support of Senate B i l l 2 1 24 from both

po l icy and budgetary-based perspectives .

Senate B i l l 2 1 24 he lps to frame the b ig p icture . Property-tax re l ief efforts are

permanently ach ieved wh i le we work towards fu rther effic iencies and focus ing on service .

Loca l access poi nts and services are ma inta ined . Local employment is preserved for

zone personne l . Zone boards wi l l be i n p lace to ensure provide loca l overs ight and

gu idance . As n i neteen zones , accounti ng , b i l l i ng , governance , and upper management

costs wi l l be streaml ined . Th is effic iency is apparent not on ly on the socia l service- leve l

but wi l l a lso streaml ine the number of other county departments who provide support to

the zones. In add ition , a h igher leve l of state engagement wi l l be achieved . Together,

we as counties are committed to partner with the Department to bu i ld the futu re of human

service de l ivery system i n North Dakota .

By cou nties partnering to work together to centra l ize ad m in istrative respons ib i l it ies

effective , effective and cons istent adm in istration wi l l resu lt . This wi l l be enhanced with

2 1 P a g e

• i ncreased acco u ntab i l ity and commun ications between zones and the Department as

provided for in Senate B i l l 2 1 24. Uti l iz i ng state funds wi l l a l low us to work together

manag i ng a statewide caseload with an ent i re team com mitted to meeti ng the needs of

North Dakotans .

We have a l ready seen success through the provis ion of p i lot projects . Reg ion V,

i ncl ud i ng Tra i l l and Steele Counties , were part of the i n it ia l Ch i ld P rotective Services P i lot

P roject . Through th is project , Agassiz Va l ley provides ch i ld protect ion supervis ion to the

workers not on ly in Tra i l l and Steele Cou nt ies but a lso to workers in Ransom and Sargent

Counties . Rich land County provides i ntake services for Tra i l l County, Stee le County,

Ransom Cou nty and Sargent County in add it ion to Rich land County. F u rthermore ,

Agass iz Va l l ey Socia l Services has begu n to assist Cass County to he lp leve l h i gh

• caseloads . We have found that shari ng resou rces , both fi nanc ia l and personne l , have

he lped strengthen ou r services with improved effic iency and effectiveness . This was

made poss ib le d ue to a common fund ing sou rce , co l labo ration , i nnovation , and through

e ras ing county bou ndary l i nes .

However, there are a lso opportun it ies for us to work together to ensure we have

team members that specia l ize i n a core a rea and supported by subject-matter expert

supervisors . Th is i s critica l to qua l ity service but a lso to reduc ing the costs of employee

tu rnover and bu rnout . Th is is particu larly crit ical in ou r ch i ld welfa re de l ivery system. The

time has come for us to work together to ensure there are access ib le and qua l ity services

th roughout the state to meet the needs of ou r cit izens .

As cou nt ies , we strong ly suppo rt the fund i ng structu re of SB 2 1 24 that i s based off

• 20 1 8 h i storica l costs , a long with an i nflator, with budgetary flexib i l ity to meet varyi ng

3 I P a g e

service needs . Such flexi b i l ity is crit ica l i n o rder to a l i gn fund ing with redesigned services

and to invest potent ia l savi ngs from un rea l ized capacity to meet service gaps .

SB 2 1 24 a lso encourages county buyin . H uman service zone employees a re local

emp loyees and supported by other county services inc lud ing states attorney services ,

payro l l , employee benefits adm in i strat io n , fisca l services , office space and re lated

maintenance . These are important supports that wi l l be provided to human service zones

i n a loca l ly supported manner. In add it io n , human service zones wi l l be inc luded the host

county-wide fisca l aud it to support fisca l i nteg rity and reporti ng .

We u rge you to render a "Do Pass" vote on SB 2 1 24 . The c l ients we serve a re

the poor and vu lnerab le . The services we provide a re the safety net fo r our cit izens .

The flexi b i l ity to have d iscret ion to a l locate funds where needed is key to ensuri ng

cit izen safety and wel l be ing . As agencies that dea l with cris is s ituat ions , a n imb le a nd

resourcefu l response is needed . F lexi b i l ity and fl u id decis ion-making are key for

provid ing the rig ht service , at the rig ht t ime , to the rig ht ind ivid ua l .

Thank you for th i s opportun ity to speak i n support of SB 2 1 24. I u rge you r

support to enab le the redesign o f ou r service de l ivery system .

4 1 P a g e

� , tJIJ ;>-I �� ?J /2D / 1 '1

P · I

I m p rov i ng p rogra ms i s mo re t h a n l oo k i ng at st ru ctu re : p rocess a n d c u l t u ra l c h a nge m u st a ccom pa ny st ru ctu ra l c h a nge

3 Key Levers for Change • 3 Core Areas

- Process

- Structu re

- Cu ltu re • Focus is on serv ice de l ivery

to the c l ient i n the most effective and efficient way poss ib le

• Seek to remove geog raph ic , pol itica l and cu ltu ra l boundaries to de l iver smart , effic ient and compass ionate human services

• Primary Stakeho lders

- I nd ivid ua ls & Fami l ies

- Taxpayers

- Employees

2

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Zo nes + P i l ots : Wo rk i n g Togeth e r

Zones: Structu re

E l im i nate cou nty bou nda r ies a nd geograph ica l ly

defi ned serv ice a reas

F lex i b le to support each progra ms structu re

E l im i n ates comp l i cated l ayers of h i e ra rchy and

approva l

I n creases fu nd i ng for progra m and decreases

adm i n istrat ion

Zones wi l l co l l a borate with each othe r based on

u n ique needs of the com m u n it ies they se rve

Zones wi l l a l l ow for s ubject matte r experts as

superv isors

Specia lty u n its wi l l be deve loped i n some zones to

prov ide serv ices based on com mun ity need

Pi lots : Culture, Process + Structure

Bu i l d p rocesses a round no cou nty bou nda r ies or

geograph ica l ly defi ned serv ice a reas

Re i nforces a state case load vs . a county case load

Ident if ies the r ight st ructu re for a p rogram based on

the new process

Bu i l ds processes with dec is ion mak i ng at the lowest

poss i b l e l eve l where a pp ropr i ate

Bu i l d s q u a l ity at the sou rce

Improves workflow and t ime l i ness

Creates team owners h i p of the p rocess

Ident if ies effi c ienc ies in p rogra ms that a l l ow us to

sh ift more resou rces to other progra ms in need

3

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''If#' Emphas i s on co l l a boration a nd sha r i ng resou rces

�/20/l'1 p 'i

• • E l im i nat ion of cou nty bounda r ies for both the peop le served •ia:.• and for those provid i ng the service

� Esta�l is h amb it ious goa l s a nd metr ics / t rack goa l s a nd '& metr ics

_& Identify the core p rob lem and provide the r ight so l ut ion to "W the p rob lem to ach ieve the goa l a nd ta rgets

00 Adj ust a nd u pdate the p rocess as needed

-:@- Focus on structu re, p rocess a nd cu l tu re

4

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Wil l i ton -

Dickinson

-

s oux

K

marck

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row

Devi l La ke

-

-Jamestown

M

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CPS P i lot Goal 1 : Conduct the face to face with the chi ld with in 3 days of case assignment.

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% September 17-0ctober 16 October 17-November 16 September 17-December 16

« I �(; JJJj 3/11,/,q

p . 7

12 M o nth s of C PS Assessme nts

TlMELI�S

SFY 20 18

Row Labels ...,. Average of Compliance25 Average of Cornpliance45 Average of Co

B Pilot

Badlands

Southeast

(3 �n- Pilot

La ke Region

North Centra l

Northeast

Northwest

South Centra l

West Centra l

Grand Tota l

7.35% 22.65%

7.99% 17 .84%

7 . 14% 24.22%

12.85% 30.51%

9.86% 33 .97%

13 .65% 32. 1 1%

6 . 16% 22 .00%

1 1 . 16% 30.93%

22 .62% 50.45%

14. 17% 26. 13%

11.22% 28. 19%

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liance62 Average of Compliance121

40.88% 83.97% 32 .34% 74.91%

43 .69% 86.94%

51.09% 89.81%

53 .97% 91 . 78%

46.92% 85 .64%

47.96% 90 .2 1%

50. 14% 90. 1 1%

78 . 10% 94. 79%

45.92% 90.20%

48.07% 88.08%

8

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Goa l 2 : Complete 50% of cases in 25 days, 75% in 45 days and 95% in 62 days.

Base l i ne : Previous 12 Months

• 25 Days • 45 Days • 62 Days

September 17-December 16

9

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10

•• Co l l a borat ion a mong a l l cou nt ies

'iti'i' Centra l i nta ke - work i ng as one i nta ke team

.:!!!: . CPS su perv isor rat io of 1 : 6 ffll1!ffl

� More robust su perv i s ion a n d case staffi ng with CPS .ii. worke rs

[fil Sta nda rd safety p l a n

V Deta i l ed t ime l i n es that a re t racked d a i ly

1 1

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Revised l icensing checkl ist from 13 pages to 4

Same checklist to be used for new l icenses,

unannounced and renewals

Rebui lt the new l icensing process to be provider

d riven

Propose a new structure that shifts the regional rep

the Early Childhood Supervisor in zones

Launch pi lot April 1

16

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II§ K ickoff Date : Apr i l 29/30

o�: Syn ch ron i ze cha nges with SPACES

# j :S8 a., d.'-/

3 -�0-I C/ p . I C/

-$- Hybr id between p rocess management a n d case management

(] Draft p roject p l a n

X Tools for work load portab i l ity

� Speci a l i zat ion for TAN F and LTC

@ Awa it i ng fi n a l data a n a lys i s to set a base l i n e a nd ambit ious ta rget

19

:# / SB do. I d-.'-/ 3 - d,.0- { <j

P - ci O

i¼ ' s� d- 1 aY SB 2 124 conti n ues the Legis latu re's efforts to fu l ly fu nd the d i rect costs of �1

1

human serv ice de l ive ry with state resou rces rather tha n property taxes, wh i l e a l so enha nc i ng service de l ive ry for North Da kota 's c itizens .

. .

_< :W·h a t i s· S·B 2-1 24 '? � ·� ' �. :__ , - ··��- --- =� =-� �--� :_ - ,"--'::_ ��"= - -s, �---L-----�--�--'---'-�-� �

• D i rect de l ivery of h uman services through 19 mu lti -cou nty 11zones" that preserve a l l cu rrent service access l ocations - counties with popu l ation over 60,000 ca n be s i ng lecou nty zones

• Loca l decis ion -mak ing i n zone creation, with fina l p l an a pprova l by DHS - zones to be imp lemented by J a n u a ry 1, 2021

• Zone fi nanci a l s i nc l uded with host cou nty fisca l a ud i t

• A state fund i ng formu l a for d i rect costs that i s tied to actua l 2018 expend itu res and state sa l a ry adj u stments

• Loca l fund i ng of i n d i rect costs with a portion re imbu rsed by the federa l i n d i rect cost p l a n

• An expanded h uman service zone boa rd of cou nty com m iss ioners, l eg is l ators and other l oca l leaders to h i re the zone d i rector and ensure loca l service needs a re addressed

• Consu ltation ro l e for DHS i n zone d i rector se lection a nd c lea r pa rtic i pation i n eva l u ati ng performance of the d i rector and zone

• Creation of fou r zone operationa l supervisors to provide tech n ica l ass ista nce, program supervis ion , eva l uation , a nd support to zones - but these FTE's wi l l b e found with i n existing zone emp loyment

• Al l zone emp loyees rema i n with i n the state merit system as requ i red by fede ra l l aw

• Emp loyment and sa l a r ies of existing emp loyees wi l l be p reserved, with t ra nsfers & reass ignments protected by existi ng r u l es

• A strong process of progressive d isc i p l i n e to ensure performance without enda nger i ng the resou rces necessa ry for c l i ent services

• Optiona l tra nsfer of zone emp loyees to the state for specifi c services that may be identified for "u n itization" ; but a l so a l l ows for zone s upe rv is ion of state emp loyees if they phys ica l ly rema i n in the zone office

• U n i que l oca l p rograms to be continued • Statewide cons istency i n i nd igent b u ri a l a n d

u l timately genera l ass ista nce t o i nc rease effic iency and gua ra ntee equa l access

INTERIM WORK

Respond i ng to the Legi s l atu re's d i rection to p repa re a p l a n that p rovides effic ie nt,

effective, q u a l ity h uman se rvices across the state, a co l l a borative effort was

u nderta ken - and i s ongo i ng - to im p lement that goa l . A co l l a borative tea m

d iv ided i nto groups and spent h u nd reds of hou rs ho l d i ng 50 meeti ngs to deve lop a

susta i na b l e p l a n .

Proposed Timeline


December 1 , 201 9 Zone Agreements

Zone Board


Employed

June 30, 2020 Fina l Zone Plan

Submittal


Implementation

Zone Creation - This map i l l ustrates the counties who cu rrent ly have mu lti-county co l laborations a long with those who are i n d iscussions .

l CA,ltJER TOI ER �

,______, Lakes Dist�

IW.\Sff l

SMSM!N

LOGIN

MdNTOSH OIO<[Y

Blue = Existing Multi-County Collaborations � = Counties with Shared Management Yellow = Counties that have initiated discussions regarding col laboration li!li:ml= Counties over the 60,000 threshold Yel low Circle - Southwest 8 Counties dis�ussing further col laboration

H u m a n Se rv i c e Red e s i g n A l l ows fo r Con t i n u e d P ro p e rty Tax Re l i ef

State fu nd i ng wi l l e l im i nate the 20 m i l l authority cou nties have used i n the

past for socia l serv ices creating P ERMAN ENT property tax re l i ef.

1 9. 8057 . 02001 Title.

Prepared by the Leg islative Council staff for Representative Weisz

March 22, 201 9

PROPOSED AMENDMENTS TO ENGROSSED SENATE B ILL NO. 2 1 24

Page 2 , l ine 7 , after the first semicolon insert "to provide for a report;"

Page 2 , l ine 8, after the first semicolon insert "to provide for the transfer of employees;"

Page 4 , l ine 5 , replace "of the host county in which" with "within"

Page 4 , l ine 6, remove "office is located shal l act as the legal adviser of the human"

Page 4 , replace l ines 7 and 8 with ", by way of agreement, shal l designate a singular state's attorneys office, with in or outside the human service zone. to act as legal adviser of the human service zone. The host county state's attorney shall serve as the legal adviser if no agreement is reached. The agreement may not l imit a state's attorneys individual discretion in court fi l ings and representation . "

Page 4 , l ine 1 2 , after "zone" insert ", un less a different agreement is establ ished by the affected state's attorney"

Page 4, l ine 1 4, overstrike " 1 3 or 14" and insert immediately thereafter " 1 2 or 1 3"

Page 6 , l ine 27, after "compensation" insert "and salary increases"

Page 1 1 , l ine 1 0 , replace "designed" with "designated"

Page 39, l ine 3 1 , overstrike the first "or"

Page 39, l ine 3 1 , remove the overstrike over "oounty sooial"

Page 39, l ine 3 1 , remove "human"

Page 39, l ine 3 1 , rem ove the overstrike over "ooam" and insert immediately thereafter 1 1.....Q[ human service"

Page 57, l ine 28 , remove "and"

Page 57, line 29, after "members" insert ", and agree to seek approval from the department regarding h i ri ng or dismissal of county social services or human service zone employees"

Page 58, l ine 30, after the second "positions" insert "or a human service zone team members separation from employment"

Page 60, remove l ines 22 and 23

Page 60, l ine 24, replace "k. " with "1." Page 60, l ine 26, replace "L." with "k."

Page 60, l ine 28, replace "m. " with "L. Whether the human service zone board is constituted of individuals that represent the population of the human service zone.

n.:." Page 6 1 , l ine 2 , after "thereafter" insert "through a process developed by the department"

Page 6 1 , l ine 23, after "department" insert "through a process developed by the department"

Page No. 1 1 9.8057.0200 1

¼ ( S i> 2-l �j 3--z_ll -{1 Page 63, l ine 2 1 , after "department" insert "through a process developed by the department"

Page 66, l ine 1 7 , replace "As necessary" with "If applicable"

Page 66, l ine 1 8 , after "programs" insert "under the director of the department and"

Page 66, l ine 1 8 , replace "substantia l ly simi lar" with "the"

Page 66, line 1 8 , replace ", benefits, or objectives" with "of enhancing qual ity, effectiveness, and efficiency of programs and services"

Page 66, line 1 9 , after ".11." insert "Cooperate with the department or other human service zones in revising human service zone operations to reflect department guidel ines or best practices that may be based on recommendations from experimental or pi lot programs.

1 2 ."

Page 66, l ine 23, replace " 12 . " with " 1 3 . "

Page 66 , l ine 25, replace "1 3 . " with " 1 4."

Page 67, l ine 7 , after "hire" insert "or separation from employn:1ent"

Page 67 , line 9, after "positions" insert "by the department"

Page 67, l ine 1 6 , replace "in partnership with" with "as agreed upon by"

Page 67 , l ine 1 6 , after "compensation" insert "and salary increases"


Page 68, l ine 20, after "plan" insert ''which may include requiring the reconstituting of the human service zone board or reh iring of a human service zone director as part of a new or modified agreement or plan"

Page 68, l ine 28, after "panel" insert ". The department shal l approve or disapprove of the recommendation for the human service zone director from the human service zone board and interview panel before the human service zone board takes action to hire the human service zone d i rector''

Page 70, l ine 8 , remove ", state elected"

Page 70, l ine 9, remove "officia ls,"

Page 70, l ine 9 , remove "sex, race, and ethnicity must be fairly"

Page 70, remove l ine 1 0

Page 72, l ine 1 3 , replace "Hire, supervise," with "Supervise"


Page 1 26 , l ine 6, after the first "and" insert "salary"

Page 1 26 , l ine 6, after "increases" insert ". The department may l im it future salary increases for human service zone team members who received a salary increase from the county commissioners or county social service board for calendar year 20 1 8 or 201 9 which was above the salary increase provided by the legislative assembly for state employees or who receive a wage above equitable compensation"

Page No. 2 1 9 .8057.0200 1

26 , l ine 23, after "d irector'' insert ", during the period between January 1 , 2020, and December 3 1 , 202 1 ,"

Page 1 26 , l ine 24, after the first "department" insert ", during the period between January 1 , 2020, and December 31, 202 1 "

Page 1 35 , after l ine 1 5 , insert:

"SECTION 1 40. REPORT TO SIXTY-SEVENTH LEGISLATIVE ASSEMBLY -DEPARTMENT OF HUMAN SERVICES. The department of human services shall submit to the appropriations committees of the sixty-seventh legislative assembly a report with metrics that include the cost per unit of work for transactional services or caseloads and other performance metrics as avai lable. The department of human services shal l submit trends in these metrics for selected programs or geographies that have undergone concentrated process improvement efforts under pilot projects or otherwise in collaboration with the department. "

Page 1 35 , l ine 20, replace "two hundred twenty-three" with "thirty-three"

Page 1 36 , l ine 1 3 , replace "two hundred twenty-three" with "thirty-three"

Page 1 36 , remove l ines 1 6 through 2 1

Page 1 36 , l ine 22, replace "c." with "a. "

Page 1 36 , remove l ines 25 through 29

Page 1 37, remove l ines 1 through 3

Page 1 37 , l ine 4 , replace "g. " with "b. "

Page 1 37, l ine 4, replace "One hundred four" with "Sixteen"

Page 1 37, l ine 5 , remove "the supplemental nutrition"

Page 1 37, remove l ines 6 and 7

Page 1 37 , l ine 8 , replace "related activities" with "long-term care el igibi l ity determination"

Page 1 37, remove l ines 9 through 1 1

Page 1 37, l ine 1 2 , replace "i . " with "c. "

Page 1 37, l ine 1 2 , rep lace "Ten" with "Three"

Page 1 37, l ine 1 4, replace "two hundred twenty-eight" with "thirty-three"

Page 1 37 , after l ine 1 7, insert:

"SECTION 1 42. TRANSFER OF EMPLOYEES - HEALTH INSURANCE COVERAGE.

1 . The fol lowing ful l-time equivalent positions of a county or human service zone become ful l-time equivalent positions of the department of human services upon notice of transfer to the human service zone director or county commissioners:

a . Four ful l-time equivalent positions to serve as human service zone operational d irectors to provide supervision and technical assistance to the human service zones.

Page No. 3 1 9.8057 .02001

-if I b. Twenty-seven ful l-time equivalent chi ld care l icensing positions .

c . Two fu l l-time equivalent adoption assistance el igibi l ity determ ination and adoption case management or related admin istration positions.

d. Sixty-four ful l-time equivalent home and community-based services case management positions.

e. Three ful l-time equiva lent positions to assist with the human service zones, human service zone plans, or formula payments , or to relieve human service zones of m iscel laneous duties, includ ing estate recovery.

f. Seven ful l-time equivalent positions to serve as qual ity contro l to the human service zones.

2. Of the one hundred seven ful l-time equ ivalent positions in this section , the department of human services may adjust or increase ful l-time equivalent positions as transfers from one or more host counties for management support to administer the powers and duties transferred .

3. Any employee who becomes a state employee under this section or section 1 4 1 is entitled to receive a salary in an amount not less than the salary received as an employee of the county or host county.

4. The department may l imit future salary increases for an employee who is transferred under this section or section 1 4 1 who received a salary increase from their former county commissioners or county social service board for the calendar years 201 8 or 201 9 above the salary increase provided by the leg islative assembly for state employees or who receive a wage above equitable compensation.

5. Each year of county or host county employment of an employee who is transferred under this section or section 1 4 1 wi l l be considered a year of state employment for purposes of section 54-06-1 4.

6 . Before the transfer of the ful l-time equivalent position from the county or host county to the department of human services, the county or host county shal l pay the employer's share of any premium that is necessary to continue any existing health insurance coverage for an employee who is transferred under this section for one month after the effective date of this transfer.

7 . Any equipment, including technology-related equipment, furnish ings, and supplies in the control and custody of a county or human service zone on the effective date of an employment transfer from the county or host county to the department of human services under this section or section 1 4 1 , must be transferred to the control and custody of the department of human services. "

Page 1 37 , l i ne 1 8, replace "Section" with "Sections"

Page 1 37, l ine 1 8, after "64" insert "and 1 42"

Page 1 37 , l ine 1 8, replace "becomes" with "become"

Page 1 37, l ine 21 , after " 1 39" insert ", 1 40"

Page No. 4 1 9. 8057.02001

•

•

•

Page 1 37 r ' me 22, replace " 1 4 "

Renumber .

0 with "1 4 1 "

accordingly

Page No. 5 1 9 .8057.02001

•

•

�� 50 � '""� 3-2, , -11

19.8057.02003 Title.


March 25, 2019

PROPOSED AMENDMENTS TO ENGROSSED SENAT E BILL NO. 2124

Page 2, line 7, after the first semicolon insert "to provide for a report; "

Page 2, line 8, after the first semicolon insert "to provide for the transfer of employees; "

Page 4, line 5, replace "of the host county in which" with "within"

Page 4, line 6, remove "office is located shall act as the legal adviser of the human"

Page 4, replace lines 7 and 8 with ", by way of agreement, shall designate a singular state's attorneys office, within or outside the human service zone, to act as legal adviser of the human service zone. The host county state's attorney shall serve as the legal adviser if no agreement is reached. The agreement may not limit a state's attorneys individual discretion in court filings and representation. "

Page 4, line 12, after "zone" insert ", unless a different agreement is established by the affected state's attorney"

Page 4, line 14, overstrike "13 or 14" and insert immediately thereafter "12 or 13"


Page 11, line 10, replace "designed" with "designated"

Page 39, line 31, overstrike the first "or"

Page 39, line 31, remove the overstrike over "county social"


Page 39, line 31, remove the overstrike over "19eafe" and insert immediately thereafter 1 1.,_Q[ human service"



Page 58, line 30, after the second "positions" insert "or a human service zone team members separation from employment"


Page 60, line 24, replace "k. " with "i." Page 60, line 26, replace "L." with "k. "

Page 60, line 28, replace "m. " with "L. Whether the human service zone board is constituted of individuals that represent the population of the human service zone.

�I I

• Page 61, line 2, after "thereafter" insert "through a process developed by the department"

Page 61, line 23, after "department" insert "through a process developed by the department"

Page No. 1 19.8057.02003

4t-: ;?.__ £8 2 t 211 3-zb -\ ct

Page 63, line 2 1 , after "department" insert "through a process developed by the department"

Page 66, line 1 7, replace "As necessary" with "If applicable"

Page 66, line 1 8, after "programs" insert "under the director of the department and"

Page 66, line 1 8, replace "substantially similar" with "the"

Page 66, line 1 8, replace ", benefits, or objectives" with "of enhancing quality, effectiveness, and efficiency of programs and services"

Page 66, line 1 9, after "1L" insert "Cooperate with the department or other human service zones in revising human service zone operations to reflect department guidelines or best practices that may be based on recommendations from experimental or pilot programs.

12.,_"

Page 66, line 23, replace " 1 2." with " 1 3."

Page 66, line 25, replace " 1 3." with "H,."

Page 67, line 7, after "hire" insert "or separation from employment"


Page 67, line 1 6, replace "in partnership with" with "as agreed upon by"

Page 67, line 1 6, after "compensation" insert "and salary increases"



Page 68, line 28, after "panel" insert ". The department shall approve or disapprove of the recommendation for the human service zone director from the human service zone board and interview panel before the human service zone board takes action to hire the human service zone director"



Page 70, line 9, remove "sex, race, and ethnicity must be fairly"

Page 70, remove line 1 0

Page 72, line 1 3, replace "Hire, supervise," with "Supervise"


Page 1 26, line 6, after the first "and" insert "salary"

Page 1 26, line 6, after "increases" insert ". The department may limit future salary increases for human service zone team members who received a salary increase from the county

•

•

commissioners or county social service board for calendar year 201 8 or 20 1 9 which

• was above the salary increase provided by the legislative assembly for state employees or who receive a wage above equitable compensation"

Page No. 2 1 9.8057.02003

•

•

•

Page 1 26, line 23, after "director" insert ", during the period between January 1 . 2020. and December 3 1 . 202 1 ."

Page 1 26. line 24, after the f irst "department" insert ", during the period between January 1 . 2020. and December 3 1 . 202 1 "

Page 1 35, after line 1 5, insert:

"SECTION 140. REPORT TO SIXTY-SEVENTH LEGISLATIVE ASSEM B LY -DEPARTMENT O F HU MAN SERVICES. The department of human services shall submit to the appropriations committees of the sixty-seventh legislative assembly a report with metrics that include the cost per unit of work for transactional services or caseloads and other performance metrics as available . The department of human services shall submit trends in these metrics for selected programs or geographies that have undergone concentrated process improvement efforts under pilot projects or otherwise in collaboration with the department . "

Page 1 35, line 20, replace "two hundred twenty-three" with "thirty-three"

Page 1 35. line 26, replace "a" with ":

a . A"

Page 1 35, after line 29, insert:

"b . An increase in county social services employees or human service zone team members delivering human services programs, services, or functions . "

Page 1 36, line 1 3, replace "two hundred twenty-three" with "thirty-three"

Page 1 36, remove lines 1 6 through 21

Page 1 36, line 22, replace "c. " with "a . "

Page 1 36, remove lines 25 through 29

Page 1 37, remove lines 1 through 3

Page 1 37, line 4, replace "g. " with "b . "

Page 1 37, line 4, replace "One hundred four" with "Sixteen"

Page 1 37, line 5, remove "the supplemental nutrition"

Page 1 37, remove lines 6 and 7

Page 1 37, line 8, replace "related activities" with "long-term care eligibility determination"

Page 1 37, remove lines 9 through 1 1

Page 1 37, line 1 2, replace "i . " with "c. "

Page 1 37, line 1 2, replace "Ten" with "Three"

Page 1 37, line 1 4, replace "two hundred twenty-eight" with "thirty-three"

Page 1 37, after line 1 7, insert:

"SECTION 142. TRANSFER OF EMPLOYEES - HEALTH INSURANCE COVERAGE.

Page No. 3 1 9 .8057.02003

*;z SB z t Z-� . 3-3,.LP -f r_ 1. The following full-time equivalent positions of a county or human service

zone become full-time equivalent positions of the department of human services upon notice of transfer to the human service zone director or county commissioners:

• a. Four full-time equivalent positions to serve as human service zone

operational directors to provide supervision and technical assistance to the human service zones.

b . Twenty-seven full-time equivalent child care licensing positions.

c. Two full-time equivalent adoption assistance eligibility determination and adoption case management or related administration positions.





3. Any employee who becomes a state employee under this section or section 141 is entitled to receive a salary in an amount not less than the salary received as an employee of the county or host county.

4. The department may limit future salary increases for an employee who is transferred under this section or section 141 who received a salary increase from their former county commissioners or county social service board for the calendar years 2018 or 2019 above the salary increase provided by the legislative assembly for state employees or who receive a wage above equitable compensation.



•

Any equipment, including technology-related equipment, furnishings, and supplies in the control and custody of a county or human service zone on the effective date of an employment transfer from the county or host

• county to the department of human services under this section or

Page No. 4 19.8057.02003

•

•

•

� � S B Z J 2--t/ /'flA,� '3 -Zb - t i

section 141, �e transferred to the controWind custody of the department of human services. 1 ? /4 f �<Y--.


a. A net addition of positions delivering human services programs, services, or functions under the appropriation provided in Senate Bill No. 2012, as approved by the sixty-sixth legislative assembly.

b . An increase in county social services employees or human services zone team members delivering human services programs, services, or functions. "

Page 137, line 18, replace "Section" with "Sections"

Page 137, line 18, after "64" insert "and 142"

Page 137, line 18, replace "becomes" with "become"

Page 137, line 21, after "139" insert ", 140"



Page No. 5 19. 8057.02003

1 9 .8057.02002 Title.

Prepared by the Leg islative Council staff for Representative Weisz

March 25, 201 9

PROPOSED AMENDMENTS TO ENGROSSED SENATE B ILL NO. 2 1 24

Page 1 , l ine 1 , replace "five" with ''four"

Page 25, l ine 25, after "1 5 . " insert ""Human service zone director" means a departf!1ent of human services employee who oversees the operation and budget of a human service zone and serves as presiding officer of the human service zone board and authorized agent of the human service zone.

1 6. "

Page 25, l ine 26, replace "1 6 . " with "1 7 . "

Page 26 , l i ne 1 , replace " 1 7 . " with "1 8 . "

Page 27 , l ine 6 , replace "1 8 . " with "1 9 . "

Page 27, l ine 8 , replace " 1 9 . " with "20 . "

Page 27 , l i ne 1 6 , replace "20. " with "21 . "

Page 27, l ine 1 7 , replace "2 1 . " with "22 ."

Page 28, l ine 3 , replace "22 . " with "23."

Page 34, l ine 29, overstrike "d irector of the"

Page 43, l ine 25, overstrike "director"

Page 56, l ine 1 , replace "human service zone team member" with "department of human services employee"

Page 56, l ine 3, after "board" insert "and authorized agent of the human services zone"

Page 66, l ine 23, replace "Employ a" with "Cooperate with the"

Page 66, l ine 24, after "board" insert "and authorized agent of the human service zone"

Page 67, l ine 1 , replace "human service zone" with "department of human services"

Page 67, l ine 3, after "board" insert "and authorized agent of the human service zone"

Page 67, l ine 2 1 , replace the first "department" with "human service zone"

Page 67, l ine 2 1 , replace "department employees" with "human service zone team members"

Page 67, l ine 23, after "department" insert "and human service zone"

Page 67, l ine 24, after "department" insert "or human service zone"

Page 68, remove l ines 24 through 28

Page 72, l ine 1 3, remove "Hire, supervise, and take other personnel actions related to the human service zone"

Page 72, remove l ines 1 4 through 1 8

Page No. 1 1 9. 8057 .02002

Af 3 5 B u 2-J'/

Page 72, l ine 1 9 , remove "6. " 3 _,ZJ..p -- l ; Page 1 23, l ine 29, replace "human service zone team member" with "department of human

services employee"

Page 1 23 , l ine 31 , after "board" insert "and authorized agent of the human service zone"

Page 1 37 , l ine 1 9 , after "Sections" insert " 1 3 1 , "

Page 1 37 , l ine 1 9, after the second comma insert "and"

Page 1 37 , l ine 1 9, remove ", and 1 35"

Page 1 37 , l ine 2 1 , remove "74, 76 through 82, 84 through 91 , 93 through 1 29, 1 3 1 , 1 36 , 1 37 , 1 39 , "

Page 1 37 , l i ne 22 , replace "and 1 40" with "73 , 75 through 8 1 , 83 through 90, 92 through 1 28, 1 30, 1 35, 1 36 , 1 38 , and 1 39"

Page 1 37, l ine 25, replace " 1 30" with "1 29"


Page No. 2 1 9.8057.02002

S u m ma ry of SB2 124,

Sect ion 1 C l a r ifies the zones states atto rney

Sect ion 10 I s the defi n it ion of a h uman Se rv ice zone .

Sect ion 18 Aga i n Defi nes a H uman Se rv ice zone a nd a l so defi nes H u ma n Services .

Sect ion 61 Defi nes Host cou nty, H u ma n Serv ice zone, zone d i recto r, a nd i nd i rect costs .

Sect ion 62 sets dead l i nes fo r the transfe r . Dec. 1 2019 fo r cou nt ies to i n d icate the i r zone make u p . The boa rd of cou nty comm iss ione rs sha l l s u bm it a p l a n by J u ne l 2020. The Dept must a pprove the p l a n s by J a n . 202 1 I t a l so sets out some cr ite r ia for the zone makeup, and dut ies of the zone .

Sect ion 63 Sets ou t the gu i de l i nes fo r esta b l i s h i ng the c r ite r ia u sed fo r the zone makeu p . The dept has fi n a l say in app rova l fo r the zone dete rm i nat ion . Zones must be esta b l i s hed by J a n . 1 2020.

Sect ion 65 Dete rm i nes zones budget. Payments wi l l be made sem i a n n u a l ly.

Sect ion 66 Dut ies of h uman se rvice zones

Sect ion 67 Dut ies of Zone d i rectors

Sect ion 70 G ives the Dept oversight over the zone d i recto r h i r i ng

Sect ions 72 a nd 73 esta b l i shes zone boa rds a nd the i r ma ke u p

Sect ion 130 h a s the fo rmu la that i s u sed to dete rm i ne payments t o each zone

Sect ion 140 Ha s the t ra nsfe r of 107 cou nty pos it ions to State emp loyees with f lex i b i l ity fo r a n add it iona l 33 pos it ions .

S . B . 2 1 24 : OHS Testimony - Execut ive Summary Overview of Social (human) Services • The m ission of DHS is to provide qual ity, effic ient , and effective human services that improve the l ives of people • To improve l ives , DHS enables access to social determ inants of health when commun ity resou rces are insuffic ient • Socia l services is an essentia l l i n k to connect citizens with a range of prog rams across social determ inants of hea lth

s (3 2 ( .24 3 -2/2; - 1 9

# ( p , 2

• To better encompass the ro le of "social services" i n connecti ng people to socia l determ inants of health , we have proposed sh i ft ing to the term "human services" in S .B . 2 1 24

201 7 5 .8 . 2206 Study Context and Results • S ince the 1 990s , socia l (human) services costs have been absorbed by the state i ncrementa l ly • I n 201 7- 1 9 , the state took over fund ing of social services i n the 20 1 7 S .B . 2206 p i lot , keep ing overa l l organ izationa l structure intact • Payment du ri ng 201 7- 1 9 , then , has been d riven by caseload amounts across each of the prog rams at the county leve l ; for refe rence ,

these overa l l caseloads are shown (see charts) • The 201 7-20 1 9 leg is lative session in 201 7 S .B . 2206 a lso created an i nter im study to analyze p i lot and develop implementation p lan • From the outset of the study, there has been recogn it ion that N D does not have comparab le sca le to states that have state-supervised ,

county-admin istered programs • Studies of SNAP admin istrative costs ind icate that the county-admin istered model is correlated with h igher costs • But improving prog rams is more than looking at structu re : process and cu ltura l change must accompany structu ra l change • To examine hol istic change , the 201 7 S .B . 2206 inter im study incl uded 4 committees focused on each area of social (human) services • Each committee subm itted recommendations that h igh l ig hted a number of d rivers of program improvements , though barriers exist today • To address process/cu ltu ra l barrie rs , DHS and counties have improved prog rams through Theory of Constra int (TOC) method • The fi rst TOC p i lot project - on CPS assessments - has shown early prog ress i n partici pati ng counties • Going forward , the department wi l l conti nue us ing the TOC method to br ing conti nuous improvement to process/cultu re • However, entering a state of conti nuous improvement h i nges crucia l ly on the structu ra l changes incl uded i n S .B . 2 1 24 • As we have examined structure , process , and cu ltu re , gu id ing pri ncip les emerged as fixed points for pol icy, inc lud ing no reduction in

access Key Components of Pol icy in Engrossed S .B . 2 1 24 Zone structure and timeline for zone formation: • Today's model of del iver ing socia l (human) services can be d isjo inted and i nefficient , result ing in worse outcomes for cl ients • S .B . 2 1 24 would sh ift de l ivery of social (human) services from counties to zones , a hybrid state/county structu re • Proposed time l ine for the formation of human service zones has several m i lestones , with complet ion at start of 202 1 • The department's approva l of a zone ag reement and p lan wi l l depend on severa l factors , bu i ld ing on mu lt icounty d istr ict model • Human service zone d i rectors are zone employees respons ib le for management of staff, budgeting , operations & outcomes • The zone board is composed of representatives from each county in zone and responsib le for supervis ing operations Zone funding and fiscal note: • Severa l pri ncip les for zone budgeting are reflected in S .B . 2 1 24 and fiscal note , expand ing on the benefits of the p i lot form ula • The flexib i l ity of zone fund ing is meant to increase responsiveness to commun ity needs and enable innovation • The fiscal note associated with S . B . 2 1 24 of $ 1 82 .3m wi l l su pport transit ion to new model of human service zones Other major provisions in SB 2 124 inc lude provis ions re lated to state 's attorney duties , ind igent buria ls , and termi nation of parental r ig hts

B i l l Overv iew

s e) 1. , ;) l/ 3 -2 8- (9 Jt I

• D i rect de l ivery of human services i n up to 1 9 mu lt i-county "zones" that preserve a l l cu rrent service access locat ions - counties with popu lat ion over 60 , 000 may be s ing le county zones

p I j

• Local decis ion-making i n zone creation , with fi na l p lan approva l by OHS - zone agreement by January 1 , 2020 ; zones to be fu l ly implemented by January 1 , 2021

• U n ique loca l programs to be conti nued • A state fund ing formu la for d i rect costs that is t ied to actual 201 8 expend itu res and state

salary adjustments • Local fund ing of i nd i rect costs with a port ion re imbursed th rough the i nd i rect cost p lan • An expanded human service zone board composed of county commiss ioners , leg is lators and

other local l eaders that wou ld h i re the zone d i rector and ensu re loca l service needs are add ressed

• Consu ltat ion role for OHS i n zone d i rector se lect ion and c lear part ic i pation i n eva luati ng performance of the d i rector and zone

• Creation of fou r zone operat ional supervisors to provide techn ica l ass istance , p rog ram su pervis ion , eva luat ion , and support to zones - but these FTE's wi l l be found with i n existi ng zone emp loyment

• Al l zone employees w i l l remai n with i n the state 's merit system as requ i red by federa l l aw. Employment and sa laries of exist ing emp loyees wi l l be preserved , with transfers and reass ignments protected by a l l exist ing ru les

• A process of progress ive d iscip l i ne to ensure performance without endangeri ng the resou rces necessary for cl ient services

• Optiona l transfer of zone employees to the state for specifi c services that may be identified for specia l ization ; but a lso a l l ows for zone supervis ion of state emp loyees if they phys ica l l y rema in i n t he zone office

• Statewide cons istency i n i nd igent buria l and u lt i mate ly genera l ass istance to i ncrease effic iency and guarantee equa l access

Revised fisca l note for S . B . 2 1 24

Line Item -------------Projection of CY1 8 and CY1 9 program-related costs


Sub-tota l : Historica l Costs

Revenue (M M IS Revenue Estimate)






Total

Estimated Amount 1 , $ Rationale / Description of Calculation

1 59 ,206 ,697 = [CY1 8 actuals]2 + [CY1 9 projection]3 - Underfund = 80 ,2 1 3 , 303 + 80 , 993 , 394 - 2 , 000 ,000

5 , 550, 522

1 64,757,21 9

(5 , 306 ,627)

7 ,832 , 1 43

1 67,282,735

1 , 396 ,37 1

2 , 800 ,000

820 ,894

1 72 ,300,000

Estimate for the indirect costs is 25% of the last available full 1 2 months of data plus the costs for preparing indirect cost allocation plan


2 times the amount distributed from M M IS in CY1 8. Monies distributed to the counties from the Medicaid Management Information system (M M IS ) support costs for services like home & community-based services Inflationary increases are based on 2% / 2% inflators for salaries , benefits other than health, and operating; est. health benefits are inflated at 7.5% each year

The same roles at various counties are paid very differently due to historical contingencies reinforced through the rate-per case formula ; this amount would allow for bringing up compensation of lower-paid counties to 0.85 compa-ratio

Funds to support preventative services and enhanced review of residential placements under Qualified Residential Treatment Provider (QRTP) provisions

Funds to support unforeseen county expenses (e.g. , burials , overpayments ) , program pilots , and scaling of best practices from pilots

1 rhe ,e est,m , 'e� cou ld adJust t ase• 01 n , t ru •nt y cl a• ib lr t da ta 'rom count ies 2 [CY 1 8 actua ls] a re reported based on data for actua l Sa la ries Benefi ts . and Operat ing 0"t �,ayr1 ent� om the count ies for C 'v 1 i [CY ' 9 pr 1ert , r I , 1 lrcu la ted as the [CY 1 8 actua ls ] with any i nf lator of 6 4°1, for on ly the estima ted hea l th benefits port io n of coun ty oc 1 erv1cec, pend ing .

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