CALIFORNIA STATUTES AND CODES
SECTIONS 18260
WELFARE AND INSTITUTIONS CODE
SECTION 18260
18260. (a) The department may conduct a demonstration project in up
to 20 counties, to allow flexible use of federal and state foster
care funds by utilizing a federal capped allocation model over a
five-year period, based on the terms and conditions of the federal
Title IV-E waiver. Participation shall be at the option of each
county, subject to state approval, provided that each county has
entered into a memorandum of understanding (MOU) with the department,
as described in subdivision (c). The department shall not be
required to conduct any demonstration projects under this section if
no county elects to participate. It is the intent of the Legislature
that this project will improve outcomes or safety for children, and
that the state shall provide immediate assistance, as needed, if the
department finds that children's health, safety, or well-being has
declined, or is at risk of declining, as a result of a county's
participation in the project.
(b) The department is authorized to conduct the demonstration
project in order to provide participating counties with flexibility
in their use of state and federal foster care maintenance and
administrative funds that were previously restricted to payment for
the care and supervision of children in out-of-home placements and
administrative expenditures. Any county, state, or federal savings in
the foster care program that occur as a result of the demonstration
project shall be reinvested by the counties in child welfare services
program improvements. These foster care savings will support the
counties in developing a broader and more responsive array of
services that will contribute to improved outcomes for children and
families. Any unexpended state and federal funds may be retained by
each county for expenditure in subsequent fiscal years for purposes
consistent with this section.
(c) The department shall work with county welfare directors and
other stakeholders to develop the terms and conditions of the MOU.
The MOU shall incorporate the terms and conditions of the federal
approval of the use of federal funds for the demonstration project,
additional conditions as described in this section, and provisions
deemed by the department and counties as reasonably necessary to
fulfill the purpose of the demonstration project and to ensure
compliance with its conditions and with this section. Provisions of
the MOU shall include, but shall not be limited to, all of the
following:
(1) The MOU shall specify the time periods for the county's
participation in the demonstration project, and shall set forth
procedures for the county to opt out of participation in the
demonstration project. A county electing to opt out of the
demonstration project shall provide written notice to the department
of its intent to do so in accordance with the MOU.
(2) The county is responsible for ensuring that adequate funds are
available to protect children at risk of abuse and neglect, by
out-of-home placement or otherwise, until funds are appropriated to
the county through the Budget Act, including provisional language in
the Budget Act that authorizes midyear funding adjustments, for this
purpose.
(3) The MOU shall specify the allocation methodology for the
capped amount of federal funds that will be allocated to the county
for the demonstration project, as well as the county's share of cost.
(4) The MOU shall specify the methodology for the provision of
state General Fund resources that a county shall receive under the
waiver and the liability for the county and the state for costs in
excess of the capped federal amount.
(d) The county and state share of costs for the demonstration
project shall be determined notwithstanding Sections 15200 and 10100.
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