Be it enacted by the General Assembly of the State of Indiana:
homes and state hospitals to the community.
(3) Study and make recommendations for the state to use state employees or contract with a private entity to manage and implement home and community based services waivers under 42 U.S.C. 1396n(c).
(4) Study and make recommendations regarding state funding needed to provide supplemental room and board costs for individuals who otherwise qualify for residential services under the home and community based services waivers.
(5) Monitor and recommend changes for improvements in the implementation of home and community based services waivers managed by the state or by a private entity.
(6) Review and make recommendations regarding the implementation of the comprehensive plan prepared by the developmental disabilities task force established by P.L.245-1997, SECTION 1.
(7) Review and make recommendations regarding the development by the division of disability, aging, and rehabilitative services of a statewide plan to address quality assurance in community based services.
(8) Annually review the infants and toddlers with disabilities program established under
IC 12-17-15. IC 12-12.7-2.
SECTION 2. IC 5-10-8-7.3, AS AMENDED BY P.L.246-2005, SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.3. (a) As used in this section, "covered individual" means an individual who is:
(1) covered under a self-insurance program established under section 7(b) of this chapter to provide group health coverage; or
(2) entitled to services under a contract with a prepaid health care delivery plan that is entered into or renewed under section 7(c) of this chapter.
(b) As used in this section, "early intervention services" means services provided to a first steps child under
IC 12-12.7-2 and 20 U.S.C. 1432(4).
(c) As used in this section, "first steps child" means an infant or toddler from birth through two (2) years of age who is enrolled in the Indiana first steps program and is a covered individual.
(d) As used in this section, "first steps program" refers to the program established under
IC 12-17-15 IC 12-12.7-2 and 20 U.S.C.
1431 et seq. to meet the needs of:
(1) children who are eligible for early intervention services; and
IC 12-17-15-2. IC 12-12.7-2-2.
(6) For purposes of IC 12-18-3 and IC 12-18-4, the domestic violence prevention and treatment council established by IC 12-18-3-1.
(7) For purposes of IC 12-21-4, the meaning set forth in IC 12-21-4-1.
(8) For purposes of IC 12-28-5, the meaning set forth in IC 12-28-5-1.
SECTION 5. IC 12-7-2-69, AS AMENDED BY P.L.234-2005, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 69. (a) "Division", except as provided in subsections (b) and (c), refers to any of the following:
(1) The division of disability, aging, and rehabilitative services established by IC 12-9-1-1.
(2) The division of family resources established by IC 12-13-1-1.
(3) The division of mental health and addiction established by IC 12-21-1-1.
(b) The term refers to the following:
(1) For purposes of the following statutes, the division of disability, aging, and rehabilitative services established by IC 12-9-1-1:
(A) IC 12-9.
(B) IC 12-10.
(C) IC 12-11.
(D) IC 12-12.
(E) IC 12-12.5.
(F) IC 12-12.7.
(2) For purposes of the following statutes, the division of family resources established by IC 12-13-1-1:
(A) IC 12-13.
(B) IC 12-14.
(C) IC 12-15.
(D) IC 12-16.
(E) IC 12-17.2.
(F) IC 12-18.
(G) IC 12-19.
(H) IC 12-20.
(3) For purposes of the following statutes, the division of mental health and addiction established by IC 12-21-1-1:
(A) IC 12-21.
(B) IC 12-22.
ARTICLE 12.7. CHILD DEVELOPMENT SERVICES
Chapter 1. Bureau of Child Development Services
Sec. 1. The bureau of child development services is established within the division.
Sec. 2. The director shall organize the bureau in the manner necessary to carry out the bureau's duties. However, the bureau must include a unit of services for infants and toddlers with disabilities.
Sec. 3. The bureau shall do the following:
(1) Plan, establish, and operate programs and services relating to child development services.
(2) Design all necessary state plans for child development services required for the receipt and disbursement of any money available to the state from the federal government.
(3) Direct the disbursement and administer the use of money from all sources for child development programs administered under this article.
Chapter 2. Infants and Toddlers With Disabilities Program Sec. 1. As used in this chapter, "agency" means a department, a commission, a council, a board, a bureau, a division, a service, an office, or an administration that is responsible for providing services to infants and toddlers with disabilities and their families, including the following:
(1) The division of mental health and addiction.
(2) The state department of health.
(3) The division of family resources.
(4) The division of disability, aging, and rehabilitative services.
(5) The department of education.
(6) The department of child services.
Sec. 2. As used in this chapter, "council" refers to the interagency coordinating council established by section 7 of this chapter.
Sec. 3. (a) As used in this chapter, "early intervention services" means developmental services that meet the following conditions:
(1) Are provided under public supervision.
(2) Are designed to meet the developmental needs of infants and toddlers with disabilities in at least one (1) of the areas specified in section 4(a)(1) of this chapter.
(3) Meet all required state and federal standards.
(4) Are provided by qualified personnel, including the following:
(A) Early childhood special educators, early childhood educators, and special educators.
(B) Speech and language pathologists and audiologists.
(C) Occupational therapists.
(D) Physical therapists.
(F) Social workers.
(I) Family therapists.
(J) Orientation and mobility specialists.
(K) Pediatricians and other physicians.
(5) To the maximum extent appropriate, are provided in natural environments, including the home and community settings in which children without disabilities participate.
(6) Are provided in conformity with an individualized family service plan adopted in accordance with 20 U.S.C. 1435.
(b) The term includes the following services:
(1) Family training, counseling, and home visits.
(2) Special instruction.
(3) Speech and language pathology, audiology, and sign language and cued language services.
(4) Occupational therapy.
(5) Physical therapy.
(6) Psychological services.
(7) Service coordination services.
(8) Medical services only for diagnostic, evaluation, or consultation purposes.
(9) Early identification, screening, and assessment services.
(10) Other health services necessary for an infant or a toddler to benefit from the services.
(11) Vision services.
(12) Supportive technology services.
(13) Transportation and related costs that are necessary to enable an infant or a toddler and the infant's or toddler's family to receive early intervention services.
Sec. 4. (a) As used in this chapter, "infants and toddlers with disabilities" means individuals from birth through two (2) years of age who need early intervention services because the individuals
meet the following conditions:
(1) Are experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures, in at least one (1) of the following:
(A) Cognitive development.
(B) Physical development.
(C) Communication development.
(D) Social or emotional development.
(E) Adaptive development.
(2) Have a diagnosed physical or mental condition that has a high probability of resulting in developmental delay.
(b) The term may also include, under rules adopted by the division, individuals from birth through two (2) years of age who are at risk of having substantial developmental delays if early intervention services are not provided.
Sec. 5. The purposes of this chapter are as follows:
(1) To enhance the development and minimize the potential for developmental delay of infants and toddlers with disabilities.
(2) To reduce educational costs to the state by minimizing the need for special education and related services after infants and toddlers with disabilities reach school age.
(3) To minimize the likelihood of institutionalization and maximize the potential for independent living of individuals with disabilities.
(4) To enhance the capacity of families to meet the special needs of infants and toddlers with disabilities.
(5) To comply with 20 U.S.C. 1431 through 1445.
Sec. 6. (a) The division shall do the following:
(1) Carry out the general administration and supervision of programs and activities receiving assistance under this chapter, monitor programs and activities implemented by the state, regardless of whether the programs and activities are receiving assistance under this chapter, and ensure that the state complies with 20 U.S.C. 1431 through 1445 in implementing this chapter.
(2) Identify and coordinate all available resources from federal, state, local, and private sources, including public and private insurance coverage and using all existing applicable resources to the full extent of the resources.
(3) Develop procedures to ensure that early intervention
services are provided to infants and toddlers with disabilities
and their families in a timely manner pending the resolution
of disputes among public agencies and providers.
(4) Resolve disputes within an agency or between agencies.
(5) Enter into formal interagency agreements that define the financial responsibility of each agency for paying for early intervention services consistent with Indiana law and procedures for resolving disputes, including all additional components necessary to ensure meaningful cooperation and coordination.
(6) Develop and implement utilization review procedures for services provided under this chapter.
(b) The state shall designate an individual or entity responsible for assigning financial responsibility among appropriate agencies under this chapter.
Sec. 7. The interagency coordinating council is established.
Sec. 8. (a) The council consists of at least fifteen (15) but not more than twenty-five (25) members appointed by the governor as follows:
(1) At least twenty percent (20%) of the members must be individuals who:
(A) are parents, including minority parents, of infants or toddlers with disabilities or of children who are less than thirteen (13) years of age with disabilities; and
(B) have knowledge of or experience with programs for infants and toddlers with disabilities.
At least one (1) of the members described in this subdivision must be a parent of an infant or toddler with a disability or of a child less than seven (7) years of age with a disability.
(2) At least twenty percent (20%) of the members must be public or private providers of early intervention services.
(3) At least one (1) member must be a member of the general assembly.
(4) Each of the state agencies involved in the provision of or payment for early intervention services to infants and toddlers with disabilities and their families must be represented by at least one (1) member. The members described in this subdivision must have sufficient authority to engage in policy planning and implementation on behalf of the state agency the member represents.
(5) At least one (1) member must be involved in personnel
(6) At least one (1) member must:
(A) represent a state educational agency responsible for preschool services to children with disabilities; and
(B) have sufficient authority to engage in policy planning and implementation on behalf of the agency.
(7) At least one (1) member must represent the department of insurance created by IC 27-1-1-1.
(8) At least one (1) member must represent an agency or program that is:
(A) located in Indiana; and
(B) authorized to participate in the Head Start program under 42 U.S.C. 9831 et seq.
(9) At least one (1) member must represent a state agency responsible for child care.
(10) At least one (1) member must represent the office of Medicaid policy and planing established by IC 12-8-6-1.
(11) At least one (1) member must be a representative designated by the office of coordinator for education of homeless children and youths.
(12) At least one (1) member must be a state foster care representative from the department of child services established by IC 31-33-1.5-2.
(13) At least one (1) member must represent the division of mental health and addiction established by IC 12-21-1-1.
(b) To the extent possible, the governor shall ensure that the membership of the council reasonably represents the population of Indiana.
Sec. 9. (a) The governor shall make the initial appointments under section 8 of this chapter with staggered terms and subsequent appointments for terms of three (3) years.
(b) A council member may be reappointed for succeeding terms.
Sec. 10. (a) The governor shall:
(1) designate a member of the council to serve as the chairperson of the council; or
(2) require the council to designate a chairperson from within its membership.
(b) A member of the council who is a representative of the division may not serve as chairperson of the council.
(c) A chairperson may be reappointed for succeeding terms.
Sec. 11. Any of the following may call a meeting of the council:
and toddlers with disabilities and preschool special education
programs written reports concerning the implementation of
each agency's respective programs.
(5) Make recommendations to the various agencies concerning improvements to each agency's delivery of services.
(6) Otherwise comply with 20 U.S.C. 1441.
Sec. 16. (a) To the extent that the services are appropriate, the council shall advise and assist the department of education regarding the transition of toddlers with disabilities to preschool special education services under IC 20-35.
(b) The council may advise and assist the division and the department of education regarding the provision of appropriate services for children who are less than six (6) years of age.
Sec. 17. (a) A family shall participate in the cost of programs and services provided under this chapter to the extent allowed by federal law according to the following cost participation schedule:
Percentage of Copayment Maximum
Federal Income Per Monthly
Poverty Level Treatment Cost Share
At But Not
Least More Than
0% 250% $ 0 $ 0
251% 350% $ 3 $ 24
351% 450% $ 6 $ 48
451% 550% $ 15 $ 120
551% 650% $ 25 $ 200
651% 750% $ 50 $ 400
751% 850% $ 75 $ 600
851% 1000% $ 100 $ 800
1001% $ 120 $ 960
(b) A cost participation plan used by the division for families to participate in the cost of the programs and services provided under this chapter:
(A) be based on income and ability to pay;
(B) provide for a review of a family's cost participation amount:
(i) annually; and
(ii) within thirty (30) days after the family reports a reduction in income; and
(C) allow the division to waive a required copayment if
other medical expenses or personal care needs expenses for
any member of the family reduce the level of income the
family has available to pay copayments under this section;
(2) may allow a family to voluntarily contribute payments that exceed the family's required cost participation amount;
(3) must require the family to allow the division access to all health care coverage information that the family has concerning the infant or toddler who is to receive services;
(4) must require families to consent to the division billing third party payors for early intervention services provided;
(5) may allow the division to waive the billing to third party payors if the family is able to demonstrate financial or personal hardship on the part of the family member; and
(6) must require the division to waive the family's monthly copayments in any month for those services for which it receives payment from the family's health insurance coverage.
(c) Funds received through a cost participation plan under this section must be used to fund programs described in section 18 of this chapter.
Sec. 18. Upon the recommendations of the council, the division shall adopt rules under IC 4-22-2 providing for a statewide system of coordinated, comprehensive, multidisciplinary, interagency programs that provide appropriate early intervention services to all infants and toddlers with disabilities and their families to the extent required under 20 U.S.C. 1431 through 1445.
Sec. 19. The budget agency shall annually report to the health finance commission, the budget committee, and the commission on mental retardation and developmental disabilities the following information concerning the funding of the program under this chapter:
(1) The total amount billed to a federal or state program each state fiscal year for services provided under this chapter, including the following programs:
(B) The children's health insurance program.
(C) The federal Temporary Assistance for Needy Families (TANF) program (45 CFR 265).
(D) Any other state or federal program.
(2) The total amount billed each state fiscal year to an insurance company for services provided under this chapter and the total amount reimbursed by the insurance company.
used under this chapter in accordance with 20 U.S.C. 1440(a).
(11) Procedural safeguards with respect to programs under this chapter as required under 20 U.S.C. 1439.
(12) Policies and procedures relating to the establishment and maintenance of standards to ensure that personnel necessary to carry out this chapter are appropriately and adequately prepared and trained, including the following:
(A) The establishment and maintenance of standards that are consistent with any state approved or recognized certification, licensing, registration, or other comparable requirements that apply to the area in which the personnel are providing early intervention services.
(B) To the extent the standards are not based on the highest requirements in Indiana applicable to the specific profession or discipline, the steps the state is taking to require the retraining or hiring of personnel that meet appropriate professional requirements in Indiana.
(13) A system for compiling data on the following:
(A) The number of infants and toddlers with disabilities and their families in Indiana in need of appropriate early intervention services, which may be based on a sampling of data.
(B) The number of infants, toddlers, and families of infants and toddlers served.
(C) The types of services provided, which may be based on a sampling of data.
(D) Other information required under 20 U.S.C. 1431 through 1445.
SECTION 12. IC 12-17-19-19, AS ADDED BY P.L.1-2005, SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19. Notwithstanding IC 4-13-2-20 and IC 12-8-10-7 and in addition to the authorization to enter into contracts for services under section 18(b) of this chapter, a contract issued by the division for programs administered by the bureau of child care services, including a contract for the administration of the programs authorized under
IC 12-17-15 IC 12-12.7-2 and this chapter, may include a
provision for advance funding if the provision is not inconsistent with
the terms of any applicable federal law or regulation and any of the
following conditions is met:
(1) The annual contract amount is at least fifty thousand dollars ($50,000) and the advance funding is not more than one-sixth
(1/6) of the contract amount.
(2) The annual contract amount is less than fifty thousand dollars ($50,000) and the advance funding is not more than one-half (1/2) of the contract amount.
(3) The advance funding is in the form of interim payments, with subsequent reconciliation of the amounts paid under the contract and the cost of the services actually provided.
SECTION 13. IC 12-17-19-25, AS ADDED BY P.L.1-2005, SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 25. (a) Each step ahead proposal must provide for the implementation of a preschool or developmental child care program for preschool children.
(b) The goals of the preschool or developmental child care program for preschool children are to:
(1) enhance the child's readiness for learning and facilitate the transition from home to school when the preschool child reaches the age of compulsory school attendance;
(2) identify developmental problems or concerns in preschool children and make referrals to the appropriate service providers or to provide the appropriate services;
(3) prevent disruptive employment conditions for parents who are employed; and
(4) ensure a continuity in access to step ahead programs as each preschool child nears the age of compulsory school attendance.
(c) To qualify for an implementation grant under this chapter for preschool or developmental child care programs for preschool children, the eligible entity implementing a preschool or developmental child care program for preschool children must demonstrate cooperation with the following programs within the county:
(1) Public schools, particularly those public schools that provide preschool or special education preschool services.
(2) Head Start programs under 42 U.S.C. 9831 et seq.
(3) Infants and toddlers with disabilities programs under
IC 12-17-15. IC 12-12.7-2.
(4) County health department programs.
(5) Private industry council programs.
(6) Women, Infants, and Children (WIC) programs under 42 U.S.C. 1786 et seq.
(7) Community mental retardation and mental health centers that provide services to preschool children with disabilities.
(8) The county office of family and children.
IC 20-35-6, and IC 20-35-8.
(b) The governor shall appoint, upon the recommendation of the state superintendent, a director of special education who serves at the pleasure of the governor. The amount of compensation of the director shall be determined by the budget agency with the approval of the governor. The director has the following duties:
(1) To do the following:
(A) Have general supervision of all programs, classes, and schools for children with disabilities, including those conducted by public schools, the Indiana School for the Blind and Visually Impaired, the Indiana School for the Deaf, the department of correction, the state department of health, the division of disability, aging, and rehabilitative services, and the division of mental health and addiction.
(B) Coordinate the work of schools described in clause (A).
For programs for preschool children with disabilities as required under IC 20-35-4-9, have general supervision over programs, classes, and schools, including those conducted by the schools or other state or local service providers as contracted for under IC 20-35-4-9. However, general supervision does not include the determination of admission standards for the state departments, boards, or agencies authorized to provide programs or classes under this chapter.
(2) To adopt, with the approval of the state board, rules governing the curriculum and instruction, including licensing of personnel in the field of education, as provided by law.
(3) To inspect and rate all schools, programs, or classes for children with disabilities to maintain proper standards of personnel, equipment, and supplies.
(4) With the consent of the state superintendent and the budget agency, to appoint and determine salaries for any assistants and other personnel needed to enable the director to accomplish the duties of the director's office.
(5) To adopt, with the approval of the state board, the following:
(A) Rules governing the identification and evaluation of children with disabilities and their placement under an individualized education program in a special education program.
(B) Rules protecting the rights of a child with a disability and the parents of the child with a disability in the identification, evaluation, and placement process.