Child Placing Organizations

Exempts nonprofit child placing organizations from financial

HOUSE OF REPRESENTATIVES                H.B. NO.1568       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Children are a precious resource, and the State
 2 takes seriously its responsibility to oversee child placing
 3 organizations and institutions and foster homes.  However,
 4 sometimes regulation can lead to inadvertent overregulation,
 5 which stifles initiative in the private sector.  While most child
 6 placing organizations are for-profit institutions, some are
 7 nonprofits with volunteer staff, who do their work for the
 8 children on a shoestring.  State administrative rules require
 9 for-profits and nonprofits alike to meet the same standards of
10 character and quality, but they are also both required to meet
11 the same financial requirement of an annual or biennial audit.
12 This is a severe hardship on nonprofit child placing agencies.
13      The purpose of this Act is to exempt nonprofit child placing
14 organizations and institutions from having to undergo financial
15 audits.
16      SECTION 2.  Section 346-17, Hawaii Revised Statutes, is
17 amended to read as follows:
18      "346-17  Child placing organizations, child caring
19 institutions, and foster boarding homes; authority over and



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                                     H.B. NO.1568       

 1 investigation of.  No child placing organization shall engage in
 2 the investigation, placement, and supervision of minor children
 3 in foster care unless it meets with the standards of conditions,
 4 management, and competence set by the department of human
 5 services[.]; provided that the department shall not require a
 6 nonprofit child placing organization having gross revenues of
 7 less than $50,000 per year to obtain or file an audit as a
 8 condition of its certification or renewal.
 9      No child caring institution shall be allowed to receive
10 minor children for care and maintenance unless it meets with the
11 standards of conditions, management, and competence to care for
12 and train children set by the department[.]; provided that the
13 department shall not require a nonprofit child placing
14 institution having gross revenues of less than $50,000 per year
15 to obtain or file an audit as a condition of its certification or
16 renewal.
17      No foster boarding home shall receive for care and
18 maintenance any child unless it meets with the standards of
19 conditions, management, and competence set by the department.
20      The department shall make rules relating to (1) standards
21 for the organization and administration of child placing
22 organizations, (2) standards of conditions, management, and
23 competence for the care and training of minor children in child

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                                     H.B. NO.1568       

 1 caring institutions, and (3) standards of conditions and
 2 competence of operation of foster boarding homes as may be
 3 necessary to protect the welfare of children.
 4      All rules of the department shall have the force and effect
 5 of law, and any violation thereof or of this section shall be
 6 punishable by a fine of not more than $200.
 7      As a condition for a certificate of approval, any
 8 organization, institution, or home shall meet the standards to
 9 assure the reputable and responsible character of its operators
10 and employees by complying with the requirements of a criminal
11 history record check under section 346-19.6.
12      Upon approval of any such organization, institution, or
13 home, the department or its authorized agents shall issue a
14 certificate of approval which shall continue in force for one
15 year or for two years if the organization, institution, or home
16 meets the criteria established by the department, unless sooner
17 revoked for cause.  The certificate shall be renewed by the
18 department or its authorized agents, after annual or biennial
19 investigation, if the investigation discloses that the
20 organization, institution, or home continues to meet with the
21 standards set by the department.  The certificate of approval
22 shall be a permit to operate the child placing organization,
23 child caring institution, or foster boarding home, and no person

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                                     H.B. NO.1568       

 1 or organization shall operate or maintain such organization,
 2 institution, or home without the certificate.
 3      Any child placing organization, child caring institution, or
 4 foster boarding home shall be subject to investigation at any
 5 time and in such manner, place, and form as may be prescribed by
 6 the department or its authorized agents."
 7      SECTION 3.  Statutory material to be repealed is bracketed.
 8 New statutory material is underscored.
 9      SECTION 4.  This Act shall take effect upon its approval.
11                           INTRODUCED BY:  _______________________