C.S., In Interest of

• Decision Date: 25 May 1994
• Docket Number: No. 93-741,93-741
• Citation: 516 N.W.2d 851
• Parties: In the Interest of C.S., A Minor Child, State of Iowa, Appellant.
• Court: Iowa Supreme Court

Page 851

516 N.W.2d 851

In the Interest of C.S., A Minor Child State of Iowa, Appellant.

No. 93-741.

Supreme Court of Iowa.

May 25, 1994.

Bonnie J. Campbell, Atty. Gen., John M. Parmeter, Special Asst. Atty. Gen., and Charles K. Phillips, Asst. Atty. Gen., for appellant.

Randall C. Wilson, Des Moines, for appellee mother.

David A. Adams, Des Moines, for appellee minor child.

Michael Bandstra of Youth Law Center, Des Moines, amicus curiae.

Considered by HARRIS, P.J., and LARSON, CARTER, SNELL, and TERNUS, JJ.

TERNUS, Justice.

The juvenile court ordered C.S., a child in need of assistance, to be placed in a treatment facility in Colorado that charged $360 per day. We must decide whether the juvenile court had authority to order placement in this facility when certain statutory and administrative provisions restrict the funding available for such a placement. We conclude that the legislature has validly limited the juvenile court's ability to order such a placement. Therefore, we reverse.

I. Statutory Framework.

Iowa Code chapter 232 (1993) governs child in need of assistance proceedings. The juvenile court is given exclusive jurisdiction over these cases. Iowa Code § 232.61 (1993). A "child in need of assistance" includes a minor who is in need of treatment to cure or alleviate a serious mental illness and whose parent is unable or unwilling to provide such treatment. Id. § 232.2(6)(f).

Upon petition and hearing, the court decides whether the juvenile is a child in need of assistance. Id. § 232.96. If the juvenile is adjudicated a child in need of assistance, the court must hold a dispositional hearing to decide "the least restrictive disposition appropriate considering all the circumstances of the case." Id. § 232.99. After the dispositional hearing the court may order the child to remain in the custody of his parents or may transfer custody to a relative or other suitable person, to a suitable private agency, facility or institution that is licensed to care for children, or to the Department of Human Services (Department). Id. § 232.102(1).

If custody is transferred to the Department, the juvenile court must specify "the nature and category of disposition which will serve the best interests of the child." Id. § 232.102(7). The Department must then submit a case permanency plan for carrying out the court's order, including the care and services to be provided. Id. §§ 232.2(4), 232.102(7). If the court specifies group foster care placement when it transfers custody to the Department, the Department is required to "make every reasonable effort to place the child within Iowa, in the least restrictive setting available, and in close proximity to the parents' home, consistent with the child's best interests and special needs...." Id. § 232.102(7).

In 1992 the general assembly enacted several new laws and amended others in an attempt to control spending on group foster care. See 1992 Iowa Acts chs. 1229, 1241, 1247. One of the new statutes set caps on the number of children who could be placed in group foster care at any one time. Id. ch. 1229, § 10 (codified at Iowa Code § 232.143 (1993)). Special committees were organized in each of the Department's regions to establish a plan for containing the number of children in group foster care within a specified target figure. Iowa Code § 232.143(2) (1993). These committees also had the responsibility to develop strategies for alternative placements "in order to contain expenditures for services provided to children within the amount appropriated by the general assembly for that purpose." Id. Finally, the legislature limited state payment for group foster care to placements that complied with the regional plans. Id. §§ 232.143(3), 234.35(1).

The 1992 legislation also mandated that the Department and judicial department establish regional out-of-state placement committees. 1992 Iowa Acts ch. 1229, § 17 (codified at Iowa Code § 232.187(1) (1993)). The general assembly stated that its intent was that the out-of-state placement committees reduce out-of-state group foster care placements by twenty-five percent during a specified period. Id.

An out-of-state placement committee reviews cases of children referred to an out-of-state facility. Iowa Code § 232.187(1)(c) (1993). The committee must make findings and recommendations to the court within ten working days of the referral. Id. § 232.187(1)(e). The Department cannot pay the cost of any out-of-state group foster care placement more than 125 miles from the child's home unless the committee approves the placement. Id. §§ 232.187(1)(f), 234.35(3).

Other payment provisions contained in the Code and the Department's rules are pertinent to this case. Iowa Code section 232.141(4) states that expenses of care and treatment ordered by the court shall be paid by the state. However, payment is limited to providers who have a contract with the Department. Id. § 234.35(2).

The Department is required to prescribe rules for eligible services and allowable rates of reimbursement. Id. § 232.141(5). The Department may not reimburse any provider at a rate greater than that established by rule. Id. The legislature has specified the formula for setting the rates for foster care. Id. §§ 234.35(1), 234.38; see also 1992 Iowa Acts ch. 1247, § 46 (amending Iowa Code § 234.38 to eliminate previously enacted rate increases for the 1993-1994 fiscal year and subsequent fiscal years).

Pursuant to these statutes, the Department has set the maximum allowable reimbursement rate for public and private group foster care facilities licensed in Iowa at $75.11 per child per day. Iowa Admin.Code r. 441.156(9) (1992). In its 1992 appropriations bill for foster care, the legislature expressed its intent that "the average reimbursement rates paid for placement of children out-of-state shall not exceed the maximum reimbursement rate paid to providers in this state." 1992 Iowa Acts ch. 1241, § 12(1)(d). To carry out this directive, the Department enacted a rule that establishes the same rate for reimbursement of out-of-state group foster care facilities as has been set for in-state facilities. Iowa Admin.Code r. 441.156(9) (1992).

II. Background Facts and Proceedings.

C.S., born in 1976, was a physically and sexually abused child. He was placed in foster care early in life. His parents' parental rights were eventually terminated and A.S. adopted C.S. in 1988.

C.S. remained in A.S.'s home for a period of time. However, in 1990 he began having aggressive outbursts. After numerous psychiatric hospitalizations, C.S. was adjudicated to be a child in need of assistance in December 1992. His adjudication was based on his need for treatment of a serious mental illness and the fact that A.S. was unable to financially provide for further treatment. See Iowa Code § 232.2(6)(f) (1991). In its adjudication order the court ordered the Department to explore possible placements for C.S.

A dispositional hearing took place on January 14, 1993. The court placed C.S. in the custody of the Department for purposes of a residential placement. The Department was ordered to develop a case permanency plan within a reasonable time and submit a definite, concrete plan for placement ten days before the scheduled review date in March.

Temporary and permanent placement of C.S. proved difficult. It was necessary to place C.S. in five different facilities in the two months between the dispositional hearing in January and the review hearing in March. Because of C.S.'s multiple and difficult problems, the Department took the unusual step of forming a case planning team. This team met several times with A.S. and her attorney to discuss permanent placement options.

By the time of the March review hearing, the Department's team had identified Orchard Place in Des Moines, Iowa as the preferred placement if that facility would accept C.S. In addition, the Colorado Boys Ranch in Denver, Colorado had said it would admit C.S. immediately. The Annie Wittenmyer Youth Center in Davenport, Iowa also agreed to accept C.S. but would not have a bed for him until June. Finally, the State Juvenile Home in Toledo, Iowa was a possible alternative if C.S. were given priority status on the waiting list.

On March 16, 1993, the dispositional review hearing took place. A case permanency plan discussing the options outlined above was presented. The court found that the Department had identified two facilities that could meet C.S.'s needs: the Colorado Boys Ranch and Orchard Place. A decision on C.S.'s admission to Orchard Place was expected to be made on or about April 13, 1993. The court ordered the Department's caseworker to inform the court and counsel by April 15, 1993 whether C.S. had been admitted to Orchard Place. The court stated that if C.S. was not admitted to Orchard Place, an order would be entered placing the child in the custody of the Colorado Boys Ranch.

On April 12, 1993, the out-of-state placement committee met and voted not to approve an out-of-state placement at the Colorado Boys Ranch for C.S. On April 13 Orchard Place denied admission to C.S. On that same day, the caseworker informed the juvenile court officer handling C.S.'s case that the out-of-state placement committee had refused approval of the Colorado Boys Ranch. The caseworker also told him that the Annie Wittenmyer facility would admit C.S. on May 7, rather than the later June admission date.

The court entered an order on April 13 transferring custody of C.S. to the Colorado Boys Ranch. The juvenile court officer took C.S. to that facility the next day. The court ordered the Department to pay the charges for this placement.

The Department filed a motion to reconsider and modify the April order on May 10, 1993, on the basis that several statutes and administrative rules prevented the Department from paying for the out-of-state placement. Motions not pertinent to this appeal were also filed by A.S. and C.S. The...