BILL ANALYSIS Ó
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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
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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.
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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.
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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
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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
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