BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2019| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2019 Author: Hill (D) Amended: 8/7/12 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE : 4-0, 6/26/12 AYES: Evans, Harman, Corbett, Leno NO VOTE RECORDED: Blakeslee SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 72-0, 5/3/12 (Consent) - See last page for vote SUBJECT : Foster Care SOURCE : Author DIGEST : This bill makes technical, non-substantive changes to the administration of the Foster Family Home and Small Family Home Insurance Fund and expands the current prohibition against discriminating denial or termination of insurance to those who are foster parents in certified foster homes. ANALYSIS : Existing law establishes the Foster Family Home and Small Family Home Insurance Fund to pay, on behalf of foster family homes and small family homes, as defined, claims of foster children, their parents, guardians, or guardians ad litem resulting from occurrences peculiar to CONTINUED AB 2019 Page 2 the foster-care relationship and the provision of foster-care services. Existing law provides that the fund may sue and be sued. Existing law provides that a foster family home is a residential facility providing 24-hour care for six or fewer foster children that is the residence of the foster parent. Existing law similarly defines small family home, except that the foster children have mental disorders or development or physical disabilities requiring special care and supervision. Existing law provides that the Fund is not liable for specified damages or acts, including, among other things, any loss arising out of a dishonest, fraudulent, criminal, or intentional act. Existing law requires that any claim against the fund be filed with the Fund in accordance with claims procedures and on forms prescribed by the Department of Social Services (DSS) or its designated contract agency, and that any claim against the Fund filed by a foster parent or a third party be submitted to the Fund within the applicable period of limitations for the appropriate civil action underlying the claim, as specified. Existing law provides that if a claim is not submitted to the Fund within the applicable time, there shall be no recourse against the fund. Existing law requires DSS approve or reject a claim within 180 days after it is presented. Existing law provides that no person may bring a civil action against a foster parent for which the Fund is liable unless that person has first filed a claim against the Fund and the claim has been rejected, or the claim has been filed, approved, and paid, and damages in excess of the payment are claimed. Existing law mandates that all processing of decisions and reports, payment of claims, and other administrative actions relating to the fund be conducted by the DSS or its designated contract agency. Existing law states the legislative intent to maintain the Fund at an adequate level to meet anticipated liabilities. CONTINUED AB 2019 Page 3 Existing law provides that if a person entitled to bring an action other than for the recovery of real property, as specified, is, at the time the cause of action accrued either under the age of majority or insane, the time of the disability is not part of the time limited for the commencement of the action. Existing law provides that such tolling of the statute of limitations does not apply to causes of actions against a public entity or public employee for which a claim is required to be presented in accordance with specified sections of law. Existing case law provides that there was no such exception in the tolling statute for an action involving a claim against the Fund pursuant to the Health and Safety Code. Existing law requires that an action for assault, battery, or injury to, or for the death of, an individual caused by the wrongful act or neglect of another, be brought within two years. This bill amends the above to require that the Legislature maintain the Fund at an adequate level to meet anticipated liabilities. This bill requires DSS or its designated agency, as specified, to notify the claimant of the decision to reject or approve a claim within 15 days of the decision. This bill provides that the applicable statute of limitations for the underlying claim would toll from the date the claim against the fund has been filed until the date the department or designated agency, as specified, has notified the person that the department has either rejected or approved the claim. Existing law prohibits an admitted insurer, licensed to issue and issuing homeowner's or tenant's policies, as described, from (1) failing or refusing to accept an application for that insurance or to issue that insurance to an applicant or (2) canceling that insurance, solely on the basis that the applicant or policyholder is engaged in foster home activities in a licensed foster family home or licensed small family home, as defined. CONTINUED AB 2019 Page 4 This bill expands the above protection to applicants or policyholders engaged in foster home activities in certified family homes, as specified. This bill makes other technical, non-substantive changes. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/7/12) Aspiranet American Federation of State, County and Municipal Employees, AFL-CIO ARGUMENTS IN SUPPORT : According to the author: The laws governing the Fund's coverage have not been revisited since 1986, yet there have been many changes in the foster care system. In 1986, about 86 Ýpercent] of foster children were in homes licensed by the state or counties and 14 Ýpercent] were in homes certified by Foster Family Agencies ÝFFA]. Today, nearly half of children in foster care are placed a certified home. These homes should have the same protections as those afforded to licensed foster homes-this means not having to worry about being denied insurance coverage for being a foster parent. This protection is especially important, given the outcome of Garcia v. W&W Community Development. In this case, the court made it very clear that FFAs are not responsible or liable for certified homes. Absent coverage by the Fund, the state should make it as easy as possible for certified foster parents to be able to buy insurance coverage to protect their resources. Also, by extending the statute of limitations for claims that go through the Fund, this bill takes an important step in ensuring that any child that is harmed while in foster care has the same right to due process as anyone else. As it relates to the expansion, Aspiranet points out that this part of the bill "reflects changes that have occurred in the foster care system since this section of the CONTINUED AB 2019 Page 5 insurance code was first put into law in 1986." Specifically, at the time that the Legislature first discovered that foster parents were unable to obtain homeowner or tenant's insurance coverage and passed legislation to prohibit discrimination against foster parents by insurance carriers, solely based on their status as a foster parent in licensed homes, Aspiranet points out that the vast majority of foster homes were directly operated under county or state supervision. In contrast, it notes that in the 25 years since, the landscape has changed such that the percentage of those in homes operated under licensure by private non-profit agencies has risen substantially. ASSEMBLY FLOOR : 72-0, 5/3/12 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman, Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Yamada, John A. Pérez NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger Hernández, Jones, Smyth, Williams RJG:n 8/8/12 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED