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.