BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1712 (Beall) - Minor and nonminor dependents: out-of-home
placement.
Amended: August 6, 2012 Policy Vote: HS 5-0, JUD 4-0
Urgency: Yes Mandate: Yes
Hearing Date: August 16, 2012
Consultant: Jolie Onodera
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: AB 1712, an urgency measure, would revise and
expand the California Fostering Connections to Success Act of
2010, as follows:
Expands the definition of "relative" for purposes of
both the federal- and age extended state-funded Kin-GAP
programs to include guardians who are non-related extended
family members, tribal kin, or current caregivers of foster
children, as specified.
Extends eligibility for the age extended state-funded
Kin-GAP program to nonfederally eligible nonminor former
wards and dependents, as defined, whose Kin-GAP negotiated
agreement payments commenced prior to 16 years of age.
Provides for the provision of various services and
eligibility to be extended to nonminor dependents including
the court-appointed special advocate (CASA) program,
continuation of family reunification (FR) services subject
to specified conditions, the option of adult adoption or
tribal customary adoption, and by extension, Adoption
Assistance Program (AAP) benefits, the payment of
nonrecurring expenses for AAP placement, the availability
of Private Adoption Agency Reimbursement Program (PAARP)
funds to assist in the completion of adoptions, and the
provision of permanent placement services, to be defined as
supportive transition services, for nonminor dependents.
Expands the duties of foster care public health nurses
(PHNs) to include assisting nonminor dependents in
accessing health and mental health care, coordinating the
delivery of services, and advocating for the care that
meets the needs of the nonminor dependent.
Fiscal Impact:
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Increased federal funding of approximately $1 million in
2012-13, assuming an October 1, 2012, effective date,
increasing to over $12.5 million by 2016-17 due to the
expanded definition of "relative", thereby increasing
eligibility for the federal Kin-GAP program. A higher level
of county cost savings (Local Revenue Fund 2011(LRF)) is
assumed, as nonrelated legal guardianships would have
otherwise been supported by realigned Foster Care funding
for assistance and administrative costs at greater cost.
Additionally, counties will realize ongoing significant
county child welfare services (CWS) administrative cost
savings potentially in the millions of dollars (LRF) for
cases transferred to both the federal and extended age
state Kin-GAP programs that otherwise would have been
provided for ongoing county child welfare agency case
management services.
Increased state Kin-GAP grant and administrative costs
of less than $250,000 (General Fund) in 2012-13, increasing
to approximately $4.3 million (General Fund) per year
assuming a shift of a small number of nonfederally eligible
nonminor former wards and dependents, whose negotiated
agreement payments commenced prior to 16 years of age, from
the federal Kin-GAP program to the age extended
state-funded Kin-GAP program.
Potential ongoing future state-reimbursable costs for
the extension and expansion of services to nonminor
dependents, including FR and supportive transition
services, AAP benefits, nonrecurring adoption expenses,
PAARP payments for nonminor dependents, and expanded duties
on PHNs.
Background: The California Fostering Connections to Success Act
of 2010, enacted by AB 12 (Beall/Bass) Chapter 559/2010,
exercised the state option under the federal Fostering
Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351) of extending benefits for youth up to age
21 in the Foster Care, Adoption Assistance, and Kinship
Guardianship Assistance Payment (Kin-GAP) programs. AB 12
aligned the state's existing Kin-GAP program with requirements
in order to draw down federal funds and provided for a
three-year phase in of extended benefits up to age 21 that was
intended to reduce the upfront costs of program expansion.
Significant clean-up legislation was pursued through AB 212
AB 1712 (Beall)
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(Beall) Chapter 459/2011, in response to issues identified just
prior to initial implementation of the Act on January 1, 2012.
Additionally, the recently enacted child welfare services
realignment budget trailer bill, SB 1013 (Committee on Budget
and Fiscal Review) Chapter 35/2012, made significant changes to
the Act by 1) transferring authority for approval of
Transitional Housing Placement Plus Foster Care (THP+FC)
providers from the counties to the Department of Social Services
(DSS) for licensure and 2) eliminating the potential gap in
eligibility for specified nonminor dependents turning 19 years
of age during 2012 (and 20 years of age in 2013) who might
otherwise have been ineligible to receive continued assistance
due to the staggered implementation dates established pursuant
to AB 12.
Federal guidance released in July 2010 by the Administration for
Children and Families (ACF) pursuant to program instruction
ACYF-CB-PI-10-11 authorizes states to define the term "relative"
for the purposes of the federal Kin-GAP program, subject to an
approved Title IV-E plan amendment, to include a reasonable
interpretation of relative, either limiting the term to include
biological and legal familial ties or specifying a plan that
more broadly includes tribal kin, extended family and friends,
or other fictive kin.
This bill makes various changes to existing law to address
additional issues that have been identified subsequent to the
recent implementation of the California Fostering Connections to
Success Act of 2010.
Prior Legislation: AB 12 (Beall) Chapter 559/2010 enacted the
California Fostering Connections to Success Act of 2010, and
authorized the state to exercise the option of extending
benefits in the Foster Care, Kin-GAP, Fed-GAP, and AAP to age 21
for youth who meet specified criteria. AB 12 also provided for
the alignment of the Kin-GAP program with federal requirements
in order to receive federal financial participation.
AB 212 (Beall) Chapter 459/2011, the follow-up legislation to AB
12, made various technical and substantive changes to law in
order to ensure the proper implementation of the California
Fostering Connections Act of 2010.
SB 1013 (Committee on Budget and Fiscal Review) Chapter 35/2012
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transferred the authority to approve THP+FC providers from the
counties to the DSS for licensure and eliminated the potential
gap in eligibility for nonminors reaching specified ages who
would otherwise have been ineligible for continued benefits due
to the staggered implementation dates for extended benefits
established under AB 12.
Staff Comments: By expanding the definition of "relative" as
authorized pursuant to federal guidance, this bill increases
eligibility for the federal Kin-GAP program (subject to federal
approval of a state plan amendment) to include placements with
guardians who are nonrelated extended family members, tribal
kin, and current caregivers of foster children, potentially
resulting in a significant amount of increased federal financial
participation (FFP).
Nonminor former wards and dependents of nonrelated guardians are
not currently eligible for state- or federally-funded Kin-GAP,
but are eligible for benefits under the Foster Care program, and
require ongoing county child welfare agency case management.
This bill expands the definition of relative for federally
funded Kin-GAP for guardianships ordered in juvenile court on or
after October 1, 2012, thereby increasing FFP for federal
Kin-GAP assistance and administrative costs. Based on a federal
share of 50 percent, an average monthly federal Kin-GAP benefit
payment of $688, and a Kin-GAP administrative cost of $42 per
case, increased FFP of approximately $1 million is estimated in
2012-13, increasing to over $12.5 million by 2016-17.
Fiscal responsibility for Foster Care, AAP, federal Kin-GAP, and
CWS was realigned to the counties under 2011Public Safety
Realignment. As a result, the increased FFP received under
federal Kin-GAP is estimated to result in a corresponding level
of county cost savings (LRF), as nonrelated legal guardianships
would have otherwise been supported by realigned Foster Care
funding for assistance and administrative costs. Additionally,
counties will realize ongoing significant CWS administrative
cost savings potentially in the millions of dollars (LRF) for
cases transferred to the both the federal and age extended
state-funded Kin-GAP programs that otherwise would have been
provided for ongoing county child welfare agency case management
services under foster care.
Under the federal Kin-GAP program, at 18 years of age, the
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continuation of state- or federally-funded Kin-GAP to nonminors
is limited to nonminors whose Kin-GAP negotiated agreement
payments commenced on or after 16 years of age. This bill
provides that the benefits of the age extended state-funded
Kin-GAP program be available upon the nonminor's attainment of
18 years of age, if the nonminor otherwise meets eligibility
criteria and who was under 16 years of age at the time the
Kin-GAP negotiated agreement payments commenced.
Based on a combined average monthly state Kin-GAP benefit and
administrative cost of $663 would result in increased state
costs of less than $250,000 (General Fund) in 2012-13,
increasing to approximately $4.3 million (General Fund) per year
assuming a shift of nonfederally eligible nonminor former wards
and dependents. This estimate is based on the assumption that a
small number of nonminors per month would transfer to the age
extended state Kin-GAP program commencing in 2013. Based on the
existing caseload of 780 placements with nonrelated legal
guardians, it is assumed a subset will turn 18 years of age each
month, and of those turning 18, only a subset of those
individuals would have commenced Kin-GAP payments prior to age
16 and continue to meet all eligibility requirements. To the
extent the actual number of cases is determined to be
significantly higher, the impact to the state would also be
commensurately greater.
This bill provides codified legislative findings and
declarations stating, "The continuation of state-funded Kin-GAP
to nonminors impacted by the expanded definition of "relative
guardian" is necessary to ensure that inadvertent fiscal
disincentives are not created for foster parents who want to
become the legal guardians of foster children and that nonminors
continue to be eligible for Kin-GAP state-funded assistance
payments in lieu of state-funded assistance payments that they
would otherwise be entitled to receive?"
Staff notes that while preserving the continuity of assistance
payments for these nonminors would result in significant cost
savings in the Foster Care and CWS programs that are now funded
through Local Realignment funds as well as draw down significant
federal funds, the provision of age extended state Kin-GAP
benefits will also result in potentially significant ongoing
increased state General Fund costs.
AB 1712 (Beall)
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This bill provides for the provision of various services and
eligibility to be extended to nonminor dependents, including FR
and supportive transition services, as well as the expansion of
duties of foster care public health nurses (PHNs) to include
assisting nonminor dependents in accessing health and mental
health care, coordinating the delivery of services, and
advocating for the care that meets the needs of the nonminor
dependent. Although the costs for these services have been
realigned to the counties, to the extent the provisions of this
bill result in increased costs not covered under Local
Realignment funding provided to the counties could result in
future state-reimbursable costs for the extension and expansion
of these services to nonminors.
Proposed Author Amendments: Delete the proposed amendments to
the Education Code and make various other technical changes.