BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           595 (Adams)
          
          Hearing Date:  07/13/2009           Amended: As introduced
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Human  
          Services 5-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 595 conforms state law to federal law by  
          requiring background checks and by prohibiting persons convicted  
          of specified offenses from becoming foster or adoptive parents.  
          Specifically, this bill:

          1) Prohibits the Department of Social Services (DSS) or other  
          approving authority from issuing a license or certificate of  
          approval to any foster family home or certified family home  
          applicant who has not obtained both a California and an FBI  
          criminal record clearance or an authorized exemption.

          2) Prohibits DSS from granting an exemption issuing a license or  
          certificate of approval  
          for a foster care placement in any home where the foster family  
          applicant or certified family home applicant, or any other  
          person, as specified, in those homes has a specified felony  
          conviction.

          3) Provides that the prohibition on exemptions described above  
          does not apply to exemptions granted prior to the enactment of  
          this bill and, further, that it shall remain in effect only to  
          the extent required by federal law as a condition of receipt of  
          federal funding under Title IV-E of the Social Security Act.

          This bill also repeals the January 1, 2010 sunset date on  
          certain DSS authority regarding children placed in the home of a  
          relative or any prospective guardian or other person who is not  
          a licensed or certified foster parent, including allowing DSS to  
          delegate criminal background check exemption authority to  
          counties so that they may continue to issue criminal records  
          exemptions in accordance with state and federal law.

          This bill is an urgency measure, to take effect immediately, in  
          order to secure necessary federal foster care funding. 
          _________________________________________________________________ 
          ____










                            Fiscal Impact (in thousands)

           Major Provisions                 2009-10                 2010-11       
            2011-11          Fund
           Eliminates exemption authority              $250*                
          $250                           $250              General

          Avoids non-compliance                   (1,600,000)     
          (1,600,000) (1,600,000)        Federal

          Eliminates placement procedure     ***Substantial savings,  
          likely more              General
          sunset                                                    than  
          $300,000 annually ***

          * DSS received an augmentation in its 2009-10 budget to conform  
          with the new federal Adam Walsh Protection Act, including  
          implementing the provisions in this bill.
          _________________________________________________________________ 
          ____
          Page 2
          AB 595 (Adams)
          
          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.

          States are required, for approval of their State Plans for Title  
          IV-E of the Social Security Act, to comply with federal law, and  
          federal funding is contingent on State Plan approvals.  
          California receives about $1.6 billion in Title IV-E funds  
          annually, which is the fiscal backbone of its foster care  
          system. In order to comply with the federal Adam Walsh Child  
          Protection Act, state law and DSS practice must be changed. In  
          2008, AB 2561 (Aghazarian) was enacted to bring the state into  
          compliance with the Adam Walsh Act. DSS was also appropriated  
          funds in the Budget Act specific to conforming to the new  
          federal law. Some of the provisions enacted in AB 2561 were  
          inadvertently chaptered out of the legislation, leaving  
          California statutorily non-compliant with federal law. This bill  
          is sponsored by the administration and is intended to bring  
          California's child welfare statute into compliance with federal  
          law in order to ensure that the state continues to receive full  
          federal funding for its child welfare services program.

          In order to comply with federal law, this bill would prohibit  
          the currently permitted granting of exemptions to foster care  










          provider applicants or prospective adoptive parents if they or  
          other designated individuals were convicted of specified  
          felonies at any time or other felonies within the previous 5  
          years. DSS predicts that approximately 100 placements would be  
          denied annually under this new provision and county child  
          welfare agencies would be tasked with finding alternative  
          housing for the child involved in each case. Eliminating the DSS  
          exemption process would decrease DSS workload, but would require  
          counties to seek alternative placements. To the extent that  
          children had to be placed in group homes and other more  
          expensive facilities, the state would pay a portion of those  
          reimbursement costs, under existing law.

          Although the bill is keyed as a state-mandated local program,  
          because it conforms to new federal mandates and also provides  
          federal funding, it is unlikely to be reimbursable by the state.  
          There is, however, a state financial share in foster care, and  
          these provisions will incur substantial new costs.  
          Non-compliance with federal foster care law, however, risks up  
          to $1.6 billion in federal foster care funding. The extent of  
          the penalty depends on whether the federal government denies the  
          state Case Plan outright for non-compliance, or simply penalizes  
          a portion of funding.

          The degree to which the new cost created by this bill is already  
          being absorbed and will continue to be absorbed in the DSS  
          budget is unclear, but it is likely these costs are incurred  
          without legislation. DSS received funding in the 2009-10 Budget  
          for activities related to complying with the Adam Walsh Act.  
          Ceasing to issue the newly prohibited exemptions is among the  
          activities the funding was supposed to support. Thus, in this  
          budget year, there is no net cost to this bill. In future years,  
          those costs would have to be budgeted for, but it is likely the  
          provisions are being de facto enacted by DSS anyway, and that  
          the costs are being incurred. Namely, DSS knows the exemptions  
          are prohibited and is not going to grant them any longer. Thus,  
          without statute specifically prohibiting DSS from using its  
          discretion to grant exemptions, DSS can simply deny all  
          exemption requests and incur the same fiscal impact. 

          Page 3
          AB 595 (Adams)

          In addition to providing for federal compliance, this bill  
          eliminated a sunset date on provisions that simplify the process  
          for quickly placing a foster child with a relative. 











          Existing law allows DSS to implement specified safeguards  
          (monitoring, background checks, etc.) in lieu of fully licensing  
          relative caregivers as foster parents. These provisions in  
          current law allow children to be placed quickly with relatives,  
          instead of placing them in another foster home or shelter while  
          their relatives go through a full licensing process to become  
          foster parents (as an individual who is certified to house  
          foster children who are strangers). If these provisions sunset,  
          those relatives will have to go through a full licensing  
          process, which is time-consuming and more expensive, and the  
          social worker would have to find the child another temporary  
          placement during the process. Eliminating the sunset will save  
          state and county time and money.