BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 159
                                                                  Page A
          Date of Hearing:   March 22, 2011

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                Jim Beall Jr., Chair
                     AB 159 (Beall) - As Amended:  March 15, 2011
           
          SUBJECT  :  Community care facilities:  foster family agencies.

           SUMMARY  :  Extends by four years, to January 1, 2016, the sunset 
          provision on the requirement for certain foster family agencies 
          to employ one full-time social work supervisor for every eight 
          social workers. 

           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.

          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.  Health and Safety Code (HSC) Section 1502.

          3)Provides for the licensure and regulation of FFAs by DSS, and 
            applies social worker personnel requirements. 

          4)Requires DSS to differentiate between treatment FFAs, 
            providing mental health treatment services to foster youth, 
            and nontreatment FFAs, and to develop licensing regulations 
            accordingly.  HSC 1506 (c).

          5)Provides Aid to Families with Dependent Children Foster Care 
            (AFDC-FC) payments with a state and county share-of-cost for 
            care and supervision provided to children in foster care.  
            Welfare and Institutions Code (WIC) Section 11460.

          6)Reduces the FFA rate effective October 1, 2009 by 10%, 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%.  WIC 11463 (j).

          7)Requires treatment FFAs to employ at least one full-time 









                                                                  AB 159
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            social work supervisor for every eight social workers in the 
            agency, and sunsets this provision January 1, 2012.  HSC 
            1506.3.

          FISCAL EFFECT  :  Unknown.

           COMMENTS  :   

           Background:   Established in 1985 as an alternative to group home 
          placements, FFAs are not-for-profit agencies that train, recruit 
          and certify foster parents.  According to DSS, there are 464 
          FFAs in California providing care and treatment to approximately 
          11,817 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 "nontreatment foster care" placement.  

          FFA and other foster care provider rates were cut by 10% as part 
          of the state budget effective on October 1, 2009.  Acknowledging 
          the impact of the 10% FFA rate cut, SB 597 (Liu), Chapter 339, 
          Statutes of 2009, adjusted the ratio of FFA supervisor to staff 
          ratio from 1:6 to the existing 1:8 ratio.  The change initially 
          was set to expire on January 1, 2011, but was extended by one 
          more year to January 1, 2012 with the passage of AB 2474 (Beall) 
          Chapter 43, Statutes of 2010.

          Prior to SB 597, social work supervisor/social worker ratios had 
          been set forth in regulations (Title 22, Division 6, Chapter 
          8.8), which distinguished between the ratios applied to 
          treatment and nontreatment agencies.  Treatment FFAs had been 
          required to employ one social work supervisor for every six 
          social workers, whereas nontreatment FFAs had to adhere to the 
          1:8 supervisor/social worker ratio.

          Also according to state laws and regulations, FFA social work 
          supervisors must meet minimum education and experience 
          standards, including the requirement to have a master's degree 









                                                                  AB 159
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          in social work or a related field.  Social work supervisors are 
          responsible for, among other assigned duties, training, 
          oversight and review of social workers' casework, and ensuring 
          that their agency social workers perform their duties in 
          compliance with applicable laws, regulations, policies and 
          procedures.

          According to the Council on Accreditation<1> (COA) standards, 
          supervisor-to-social worker ratios generally should not exceed 
          the 1:8 ratio, as they cite research to suggest that supportive, 
          quality supervision can lead to better service delivery to 
          children and families, better productivity, and less turnover 
          among social work staff.  The COA standards do not, however, 
          delineate the standards that should be applied to the 
          treatment/nontreatment categories of services overseen by a 
          social work supervisor, as found in the under state regulation.

          According to the author, "Nonprofit foster family agencies 
          provide an important placement alternative to group homes by 
          offering certified foster homes and the children they care for 
          with additional services and supports.  We must continue to 
          support this more family-centered alternative, while still 
          ensuring the available funding is applied where it is most 
          needed - to the direct services provided to foster children.  In 
          taking the approach offered by Ýthis bill], the state would 
          allow FFAs flexibility in the program administration, at a 
          reasonable level."  

          The sponsor of this bill, the California Alliance for Child and 
          Family Services, writes:

               FFA Rates have been cut by 10% for the past two years 
               and prior to that cut, FFA rates had been frozen for 
               15 out of the past 19 years.  As a result, the FFA 
               rate to cover the cost of care and social work for 
               foster children has declined to just 70% of what it 
               originally was in 1990.  In order to absorb these 
               cuts, many FFAs have been forced to lay off social 
               workers, are borrowing money to keep operating, are 
               spending down savings, are fundraising in an 
               ----------------------
          <1> COA is an international, independent, nonprofit child and 
          family service and behavioral healthcare accrediting 
          organization founded in 1977 by the Child Welfare League of 
          America and Family Service America, currently known as the 
          Alliance for Children and Families.








                                                                  AB 159
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               increasingly competitive environment or have shut down 
               their programs?.

               In light of the dire budget constraints of the State, 
               AB 159 will extend the deadline allowing the ratio of 
               Foster Family Agency social workers to go from a 1:6 
               ratio to 1:8 ratio until January 1, 2016.  While this 
               may seem minor, it could make the difference between 
               an FFA having to borrow more money to remain in 
               operation or close down altogether.  Under the current 
               rate reductions, FFAs need some flexibility within the 
               rate-setting and community care licensing systems.

           Author's Amendments:

           The author wishes to amend the bill to strike the 2016 sunset 
          extension date and directly tie the 10% rate reduction set forth 
          in WIC 11463 (j) to the temporary ratio change set forth under 
          HSC 1506.3.  The author proposes to do this by requiring the 
          director of the Department of Social Services to inform the 
          legislature when the FFA rate reaches at least the amount paid 
          to FFAs prior to the 10% rate reduction, and repeals the ratio 
          change set forth under HSC 1506.3 effective the date of the 
          director's declaration.

           PRIOR/RELATED LEGISLATION:
           
          AB 2474 (Beall) Chapter 43, Statutes of 2010 extended by one 
          year, from 2011 to January 1, 2012, the sunset provision on the 
          requirement for FFAs to employ one full-time social work 
          supervisor for every eight social workers.

          SB 597 (Liu), Chapter 339, Statutes of 2009, adjusted the ratio 
          of FFA supervisor to staff ratio from one social work supervisor 
          to six social workers to the existing 1:8 ratio.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           California Alliance of Child and Family Services (Sponsor)
          Alliance Human Services, Inc.
          American Federation of State, County, and Municipal Employees 
          (AFSCME), AFL-CIO
          Aspiranet









                                                                  AB 159
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          Association of Community Human Services Agencies (ACHSA)
          California Communities United Institute (CalComUI)
          County Welfare Directors Association of California (CWDA)
          David & Margaret Youth and Family Services
          Family Care Network, Inc.
          Hathaway-Sycamores Child and Family Services
          Kinship Center
          Lilliput Children's Services
          San Diego Center for Children
          Transitions Children's Services
          Walden Family Services

          Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Michelle Doty Cabrera / HUM. S. / (916) 
          319-2089