BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2474| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: AB 2474 Author: Beall (D) & Blakeslee (R) Amended: 4/8/10 in Assembly Vote: 21 SENATE HUMAN SERVICES COMMITTEE : 3-0, 6/10/10 AYES: Liu, Runner, Yee NO VOTE RECORDED: Romero, Vacancy ASSEMBLY FLOOR : 74-0, 5/6/10 - See last page for vote SUBJECT : Community care facilities: foster family agencies SOURCE : California Alliance for Child and Family Services DIGEST : This bill extends by one year, to January1, 2012, the sunset provision on the requirement for certain foster family agencies to employ one full-time social work supervisor for every eight social workers. ANALYSIS : Existing law 1. Establishes a system of community care facilities licensing, administered by the Department of Social Services (DSS), to license and approve out-of-home placements for abused and neglected children. CONTINUED AB 2474 Page 2 2. Establishes foster family agencies (FFAs) as nonprofit organizations that recruit, train, certify, and provide support for foster parents who care for children with intensive care needs as an alternative to group home placement. 3. Provides for the licensure and regulation of FFAs by DSS, and applies social worker personnel requirements. 4. Reduces the FFA rate effective October 1, 2009 by 10 percent, and allows FFAs flexibility in applying the reduction, provided the amount paid to foster families providing care to foster children was not reduced more than 10 percent. 5. Requires treatment FFAs to employ at least one full-time social work supervisor for every eight social workers in the agency, and sunsets this provision January 1, 2011. This bill extends by one year, to January1, 2012, the sunset provision on the requirement for certain foster family agencies to employ one full-time social work supervisor for every eight social workers. Background Established in 1985 as an alternative to group home placements, FFAs are not-for-profit agencies that train, recruit and certify foster parents. Statewide, there are an estimated 250 FFAs providing care and treatment to approximately 18,500 foster children. Initially intended as an alternative to group home placement for children with higher service needs, FFAs now provide placements to almost half of all foster children in nonrelative placements in California. DSS distinguishes between two types of FFAs for the purposes of rate setting and regulations. "Treatment foster care", also referred to as "therapeutic foster care" provides a higher level of care to children with needs that cannot be met in foster family homes, and who would otherwise require a group home placement. FFAs may also certify a family home seeking to adopt a foster child as a CONTINUED AB 2474 Page 3 "nontreatment foster care" placement. FFA and other foster care provider rates were cut by 10% as part of the state budget passed last year, effective October 1, 2009. While the group home rate cut was stayed and group home rates were ordered increased by 32% as part of a lawsuit already pending prior to the budget reductions, California Alliance of Child and Family Services v. John Wagner, et al ., FFAs were not represented in the group homes lawsuit and, as such, are still subject to the rate decrease. Acknowledging the impact of the 10% FFA rate cut, last year, the Legislature approved, and the Governor signed SB 597 (Liu), Chapter 339, Statutes of 2009, which included a provision allowing treatment FFAs to adjust the ratio of social work supervisors to social workers to the current 1:8 ratio. The ratio change will expire, however, on January 1, 2011. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/14/10) California Alliance for Child and Family Services (source) Aldea Children & Family Services Alternative Family Services Association of Community Human Service Agencies County Welfare Directors Association of CA (CWDA) Crittenton Services for Children and Families David & Margaret Youth and Family Services Family Care Network Five Acres - Boys' & Girls' Aid Society of Los Angeles Innte Circle Foster Family Agency Kinship Center Lillliput Children's Services President/CEO, Hathaway-Sycamores Child & Family Services Rebekah Children's Services Rosemary Children's Services Transitions Children's Services Valley Teen Ranch Victor Youth Services Youth For Change CONTINUED AB 2474 Page 4 ARGUMENTS IN SUPPORT : The sponsor of this bill, the California Alliance for Child and Family Services, writes, "In budget year 2009-10, FFA rates were cut by 10% and prior to that cut, FFA rates had been frozen for 14 out of the past 19 years. As a result, the FFA rates to cover the cost of care and social work for foster children has declined to just 63% of what it originally was in 1990. In order to absorb the 10% rate cut, many FFAs were forced to lay off social workers, are borrowing money to keep operating, are spending down their savings, are fundraising in an increasingly competitive environment or have shut down their programs. "In order to absorb some small measure of relief from the 10% cut, the Legislature approved and the Governor signed SB 597 (Liu) in 2009 allowing FFAs to use a one-to-eight ratio for social worker supervisors to social workers, rather than the one-to-six ratio. This provision was only approved for one year and it expires on January 1, 2011. Savings incurred to FFAs from increasing this ratio is estimated to be 1% of their total budget. "In light of the dire budget constraints of the State, [this bill]will extend the deadline allowing the ratio of Foster Family Agency social workers to go from a 1:6 ratio to a 1:8 ratio by one more year, until January 1, 2012. At a minimum, the FFAs need some flexibility within the rate-setting and community care licensing systems." ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Miller, Monning, Nava, Nestande, Niello, Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, CONTINUED AB 2474 Page 5 Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NO VOTE RECORDED: Bass, Block, De La Torre, Gilmore, Mendoza, Vacancy CTW:do 6/14/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED