The Special Committee is directed to study the implementation of the child welfare rate regulation system provided under s. 49.343, Stats. The committee shall advise the Department of Children and Families (DCF) on the creation of administrative rules for implementing the rate regulation system, including: (a) standards for determining whether a proposed rate is appropriate to the level of services to be provided, the qualifications of a residential care center, group home, or child welfare agency to provide those services, and the reasonable and necessary costs of providing those services; (b) factors for DCF to consider in reviewing a proposed rate; and (c) procedures for reviewing proposed rates, including rate resolution procedures for mediating an agreed-to rate when negotiations fail to produce an agreed-to rate. The committee shall also examine alternative methods of reducing the cost of out-of-home care placements for children.