BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 12
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          ASSEMBLY THIRD READING
          AB 12 (Beall and Bass)
          As Amended  January 25, 2010
          Majority vote 

           HUMAN SERVICES      5-0         APPROPRIATIONS      13-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Beall, Ammiano, Tom       |Ayes:|De Leon, Ammiano,         |
          |     |Berryhill, Portantino,    |     |Bradford, Charles         |
          |     |Torres                    |     |Calderon, Coto, Davis,    |
          |     |                          |     |Fuentes, Hall, John A.    |
          |     |                          |     |Perez, Skinner, Solorio,  |
          |     |                          |     |Audra Strickland,         |
          |     |                          |     |Torlakson                 |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen                   |
           ----------------------------------------------------------------- 

           SUMMARY  :  Requires California to opt in to federal financial  
          participation in kinship guardianship assistance payments and  
          extends transitional foster care services for eligible youth  
          between 18 and 21 years of age pursuant to the federal Fostering  
          Connections to Success and Increasing Adoptions Act of 2008  
          (Fostering Connections Act).  Specifically,  this bill  :

          1)Requires the Department of Social Services (DSS) to exercise  
            its option under federal law to enter into kinship  
            guardianship assistance agreements with relative guardians of  
            children who exit foster care.  In order to create a federally  
            funded Kin-GAP program, makes conforming changes which  
            include, but are not limited to, the following additions or  
            revisions to existing statutes governing California's  
            Kinship-Guardianship Assistance Payment Program (Kin-GAP)  
            program:

             a)   Establishes eligibility criteria, including but not  
               limited to, that the child is a sibling of an eligible  
               child or that the child:

               i)     Has been removed from home pursuant to a voluntary  
                 placement agreement, or adjudicated as a dependent or  








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                 ward of the juvenile court, and returning home would be  
                 contrary to the child's welfare;

               ii)    Has been eligible for foster care maintenance  
                 payments while residing in the relative caregiver's home  
                 for at least six months; and,

               iii)   Demonstrates a strong attachment to the relative,  
                 who has a strong, permanent commitment to caring for the  
                 child.

             b)   Requires that DSS negotiate and enter into a written  
               assistance agreement with the relative guardian, which  
               applies regardless of the guardian's state of residence and  
               specifies, among other information: 

               i)     The amount of aid, which shall be based on specified  
                 criteria and shall not exceed the rate paid for children  
                 in a foster family home; and, 

               ii)    Additional services and assistance for which the  
                 child and guardian are eligible and a procedure for  
                 applying for additional services, as needed.

             c)   Requires the state to pay the total cost of nonrecurring  
               expenses of obtaining legal guardianship of the child, not  
               to exceed $2,000.

          2)Creates a process for converting eligible existing  
            state-funded Kin-GAP cases to the newly established federally  
            funded Kin-GAP with minimal disruption to the guardian and  
            child, and no break in the assistance payments.

          3)Requires DSS to negotiate with the federal Department of  
            Health and Human Services on behalf of the counties  
            participating in the Child Welfare Demonstration Capped  
            Allocation Project to ensure that those counties receive  
            reimbursement for the above- described kinship guardianship  
            agreements outside of the provisions of their current waiver.

          4)Establishes a state-funded Kin-GAP program to continue to  
            provide benefits on behalf of children who are not eligible  
            for the federally funded Kin-GAP program described above.   
            Makes many, but not all, of the same changes, additions or  








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            revisions to existing statutes governing California's Kin-GAP  
            program in order to create this state-funded Kin-GAP.

          5)Specifies that Kin-GAP payments shall continue after the  
            filing of a petition pursuant to Welfare and Institutions Code  
            (WIC) Section 388 to change, modify or set aside a court order  
            unless and until the juvenile court orders the child removed  
            from the home, terminates guardianship or grants other  
            requested relief. 

          6)Requires the federally funded Kin-GAP opt-in begin after the  
            Director of DSS issues a declaration that increased federal  
            financial participation under the American Recovery and  
            Reinvestment Act (ARRA), or subsequent federal legislation is  
            no longer available.

          7)Establishes the intent of the Legislature to exercise the  
            option afforded states under the federal Fostering Connections  
            Act to receive federal financial participation for current or  
            former dependent children or wards of the juvenile court who  
            receive support up to 21 years of age as follows:

             a)   Effective January 1, 2012, extends foster care to  
               eligible youth up to 19 years of age;

             b)   Effective January 1, 2013, extends foster care to  
               eligible youth up to 20 years of age; and,

             c)   Effective January 1, 2014, extends foster care to  
               eligible youth up to 21 years of age.

          8)Defines "nonminor dependents" as current or former dependents  
            or wards of the juvenile court who are between 18 and 21 years  
            of age, are in foster care, and are participating in a  
            transitional independent living case plan (TILP) pursuant to  
            the federal Fostering Connections Act.  Allows for the payment  
            of aid, following specified procedures and due process  
            requirements, on behalf of an otherwise eligible nonminor  
            dependent who also meets at least one of the following five  
            conditions:

             a)   Is completing secondary education or an equivalent  
               credential;









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             b)   Is enrolled in a postsecondary or vocational education  
               institution;

             c)   Is participating in a program designed to promote, or  
               remove barriers to, employment; 

             d)   Is employed for at least 80 hours per month; or,

             e)   Is incapable of doing one of the above due to a medical  
               condition, and that incapability is supported by regularly  
               updated case plan information. 

          9)Changes eligibility for the adoption assistance program (AAP)  
            and Kin-GAP assistance to also include otherwise eligible  
            youth between the ages of 18 and 21 for whom an adoption  
            assistance agreement was entered into or Kin-GAP aid began  
            after the age of 16 and who meet one of the above-described  
            five conditions.  

          10)Requires the county welfare or probation department, or  
            tribe, to notify all foster youth, including those receiving  
            Kin-GAP and AAP, who attain 16 years of age and are under  
            their jurisdiction of the existence of the aid described  
            above.

          11)Declares that the juvenile court has within its  
            "jurisdiction" any nonminor dependent.  Authorizes the court  
            to terminate "dependency or delinquency jurisdiction" over the  
            nonminor between the ages of 18 and 21.  Allows a nonminor  
            under the age of 21 to petition for the court to resume its  
            dependency jurisdiction and requires a court hearing on such a  
            petition.  Further requires that the court resume dependency  
            jurisdiction and order a new TILP within 60 days if it finds  
            that the nonminor is eligible for dependency jurisdiction.

          12)Authorizes the placement of nonminor dependents in  
            "supervised independent living" (SIL) settings.  Defines a SIL  
            setting as a supervised setting specified in a nonminor  
            dependent's TILP, pursuant to federal law.  Exempts SIL  
            settings from licensure under the Community Care Facilities  
            Act.  Establishes the rate paid on behalf of youth in SIL  
            settings as equivalent to the per child, per month rates paid  
            to foster family homes.









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          13)Requires the court, at the last review hearing before a  
            foster child turns 18, to ensure that the child's TILP  
            includes a plan for the child to meet one of the criteria for  
            eligibility as a nonminor dependent and that the child has  
            been informed of the right to seek termination of dependency  
            jurisdiction at any time after reaching the age of majority  
            and before the age of 21.  Requires the child welfare or  
            probation department to report to the court, at the hearing  
            closest to and before a dependent child's 18th birthday and  
            each review hearing thereafter whether specified information,  
            documents and services have been provided.  

          14)Requires that case plans for nonminor dependents be developed  
            with, and signed by, the nonminor and include specified  
            information. 

          15)Requires that the status of a nonminor dependent be reviewed  
            periodically.  Establishes the frequency of review as  
            determined by the court, but at least every six months, until  
            dependency jurisdiction is terminated.  Specifies that courts  
            shall not order hearings to terminate parental rights of a  
            nonminor dependent's parent(s).  Requires the court to hold a  
            specified hearing before terminating dependency jurisdiction  
            for a nonminor dependent.

          16)Adds nonminor dependents to existing categories of youth who  
            may retain specified cash resources and remain eligible to  
            receive specified social services and to those who may receive  
            CalWORKs while in the approved home of a relative foster  
            caregiver.

          17)Specifies that nothing in the above provisions gives legal  
            custody of a person who has attained the age of 18 to a county  
            welfare or probation department or otherwise abrogates rights  
            that a person who has reached the age of 18 has under state  
            law.  Unless otherwise specified, declares that the rights of  
            a dependent child and responsibilities of specified  
            departments and other entities toward them also apply to  
            nonminor dependents. 

          18)Requires DSS, by specified dates, to revise or adopt  
            specified regulations to implement the above provisions.  In  
            some instances, directs DSS to prepare for this implementation  
            by releasing instructions to apply for set periods prior to  








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            the adoption of regulations.  Authorizes implementation of  
            regulatory changes via emergency regulations.

          19)Makes other related changes.

           EXISTING LAW  : 

          1)Establishes a system of child welfare services, including  
            foster care, for children who have been or are at risk of  
            being abused or neglected.  

          2)Establishes the Kin-GAP program to enhance family preservation  
            and stability by recognizing that many dependent children are  
            in long-term, stable placements with relatives that allow for  
            their dependency cases to be dismissed.  Sets the rate paid on  
            behalf of a child in a placement supported by Kin-GAP as  
            equivalent to the rate paid to foster family homes.  WIC  
            Sections 11360; 11364.

          3)Authorizes the juvenile court to retain jurisdiction over a  
            child who has been adjudicated a dependent because of abuse or  
            neglect until the ward or dependent child attains the age of  
            21 years.  WIC Section 303.  

          4)Specifies that Aid to Families with Dependent Children-Foster  
            Care (AFDC-FC) benefits and Kin-GAP assistance shall be paid  
            on behalf of a child in foster care or a guardianship under  
            the age of 18 who meets additional eligibility criteria.  WIC  
            Sections 11363; 11401.  Exempts from this age-based  
            requirement foster children and children in guardianships  
            between the ages of 18 and 19 who are pursuing specified  
            education-related goals.  WIC Section11403.

          5)Establishes AAP with the intent to reduce the number of  
            children in foster care and provide stable, secure homes for  
            children who meet specified eligibility requirements.  WIC  
            Section 16115.5; 16120.  Specifies that the amount of adoption  
            assistance benefit, if any, shall be negotiated based on the  
            needs of the child and circumstances of the family and  
            included in an adoption assistance agreement.  WIC Sections  
            16119 (d)(1); 16120.05.  Specifies as criteria for receipt of  
            AAP benefits that the child is under the age of 18, or is  
            under the age of 21, and has a handicap that warrants the  
            continuation of assistance.  WIC Section 16120.








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          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee extending Foster Care, KinGAP and AAP to age 21, once  
          fully implemented, will cost between $100 million and $155  
          million per year ($65 million to $100 million General Fund).

          Also, as noted in the May 20, 2009 Appropriations Committee  
          analysis, the LAO found that, "While there would initially be  
          increased costs to implementing AB 12, we estimate that by full  
          program implementation (in 2011-12 and beyond) the net cost of  
          the program would be in the range of $5 million to $41 million.   
          We note that the cost of AB 12 would be significantly less in  
          2009-10 if the date of shifting Kin-GAP to a Title IV-E program  
          was delayed until the ARRA federal fiscal relief period ends on  
          September 30, 2010." 

          Amendments taken in the Appropriations Committee effectively  
          delay the transition to the federally funded Kin-GAP until after  
          the increased federal financial participation through ARRA is no  
          longer available, therefore significantly reducing the cost of  
          AB 12, as suggested by the LAO.  In addition, the staggered  
          extension of foster care support to age 21 over the course of  
          three years beginning in 2012 would allow for California's  
          continued economic recovery, and for no budget year expenses as  
          a result of AB 12.

           COMMENTS  :  In October, 2008, President Bush signed one of the  
          most significant pieces of child welfare legislation in recent  
          history.  Along with multiple new requirements for states, the  
          federal Fostering Connections Act offered states the opportunity  
          to opt in to new federal funding streams if they choose to  
          provide kinship-guardianship benefits to relative guardians  
          and/or foster care to 18 to 21-year-old youth in conformity with  
          federal law.  This bill, enacting the California Fostering  
          Connections Act, would enable the state to exercise both of  
          these options.  With regard to kinship-guardianship benefits,  
          this bill would allow California to draw down federal funds for  
          what has been a state-funded program for over a decade.  
           
          With recently revised federal policy instruction for the federal  
          Fostering Connections Act, provisions of the bill related to the  
          conversion of California's existing Kin-GAP caseload to the new  
          federally funded Kin-GAP will no longer apply.  The revised  
          instruction will allow California to draw down federal financial  








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          participation for its state-funded relative guardianship  
          program.

          According to the author of this bill, the federal Fostering  
          Connections Act, "provides California with an unprecedented  
          opportunity to access federal funding to improve the lives of  
          our state's most vulnerable youth...The [bill's provisions]  
          represent both fiscally and socially responsible improvements to  
          California's foster care system.  As a result, California would  
          utilize federal funds to meet costs currently borne by the state  
          and counties, and realize proven savings from declines in  
          unemployment, homelessness, teen pregnancy, public assistance,  
          and the other costly outcomes for young adults who 'age out' of  
          foster care."  These changes would also implement critical  
          recommendations of the California Judicial Council's Blue Ribbon  
          Commission on Children in Foster Care.


           Analysis Prepared by  :    Michelle Doty Cabrera / HUM. S. / (916)  
          319-2089 


                                                                FN: 0003628