BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1319
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          Date of Hearing:   June 26, 2012

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                Jim Beall Jr., Chair
                      SB 1319 (Liu) - As Amended:  June 11, 2012

           SENATE VOTE  :  37-0
           
          SUBJECT  :  Child Welfare

           SUMMARY  :  This bill makes five statutory changes to the Health 
          and Safety and the Welfare and Institutions Code relating to 
          services for at-risk children and foster youth.  Specifically, 
           this bill  :   

          1)Deletes the statutory sunset for "crisis nurseries," thus 
            allowing "crisis nurseries" to operate as a temporary 
            placement option for at risk youth under the age of six.

          2)Deletes the requirement that foster family homes be subjected 
            to civil penalties for violations of Section 1548 of the 
            Health and Safety Code.

          3)Deletes the statutory sunset for licensed community treatment 
            facilities serving seriously emotionally disturbed children or 
            wards and dependents of the court to have nursing staff 
            on-call rather than onsite if the facility meets specified 
            conditions.

          4)Preserves the provisional rate setting methodology for 
            "severely emotionally disturbed" (SED) children placed in 
            group home settings until the Department of Mental Health can 
            establish a permanent rate methodology.

          5)Allows the Director of the Department of Social Services (DSS) 
            to extend a waiver of regulations to counties in increments of 
            three years to continue to participate in performance 
            agreements with the DSS to provide foster youth with 
            alternatives to group home care through the expansion of 
            family-based services programs. 

           EXISTING LAW  

          1)Establishes the California Community Care Licensing Act 
            (CCCLA), to provide for the development and licensure of 







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            community care facilities for the mentally ill, 
            developmentally and physically disabled, and children and 
            adults who require special services.

          2)Provides the authority to the Department of Social Services to 
            establish regulations for the licensing of community care 
            facilities.

          3)Defines a "crisis nursery" as a facility licensed by DSS to 
            provide short-term, 24 hour residential care and supervision 
            for children under the age of six, who are voluntarily placed 
            by their parent or guardian due to a family crisis or 
            stressful situation for not more than 30 days. 

          4)Sunsets the authorizing statute for crisis nurseries on 
            January 1, 2014.

          5)Defines a foster family agency as a facility that recruits, 
            trains and certified foster family homes and foster parents 
            for the temporary or permanent placement of foster youth and 
            requires them to operate as private non-profit organizations. 

          6)Defines a foster family home as a residential placement 
            providing 24-hour care for six or fewer foster children by 
            foster parent or parents and their family.

          7)Requires foster family homes to be licensed and subject to the 
            CCCFA, which includes specified fines and penalties. 

          8)Requires the Department of Mental Health (DMH) to establish 
            program standards regulations for community treatment 
            facilities that provide services to seriously emotional 
            disturbed children and wards and dependents of the court, as 
            defined. 

          9)Defines a "community treatment facility" as a facility that 
            provides mental health treatment services to children in a 
            group setting, is able to provide secure containment, and 
            complies with program requirements established by DMH. 

          10)Until January 1, 2013, allows community treatment facilities 
            to have one registered nurse onsite in lieu of having 24-hour 
            onsite licensed nursing staff as long as the facility:

             a)   Does not use mechanical restraints.







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             b)   Does not admit children who need 24-hour nursing 
               coverage.

             c)   Has other medical or nursing staff available and can 
               provide services within one hour.

             d)   Has all of its other direct care staff trained in first 
               aid and cardiopulmonary resuscitation and other emergency 
               intervention techniques and methods, as provided by DSS. 

          11)Establishes a process by which foster care providers licensed 
            as group homes are funded pursuant to their rate 
            classification level, as specified. 

          12)Allows the Director of DSS to waive foster care payment 
            regulations or group home operation requirements for counties 
            requesting to enter into performance agreements with nonprofit 
            child services agencies to develop services not available in 
            their community, as specified.  

          13)Allows the Director of DSS to extend the waiver for a period 
            of up to an additional three years. 

           FISCAL EFFECT  :  Unknown

























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           COMMENTS  :   

           Crisis Nurseries  
          Established in 2004 by SB 855 (Machado), Chapter 664, Statutes 
          of 2004, crisis nurseries were established as a separate 
          licensing category to provide a temporary housing and shelter 
          facility placement option for parents.  The goal of crisis 
          nurseries are to prevent the need for child welfare services and 
          to provide an alternative placement option for families with 
          young children who are facing difficult or extreme challenges, 
          financial, health, or otherwise.  

          Prior to SB 855's adoption, child nurseries were subject to 
          licensure as a group home under the CCCLA.  According to the 
          Assembly Human Services August 26, 2004 analysis of SB 855, the 
          author argued that group home licensing requirements were 
          "inappropriate for crisis nurseries, since the demands of very 
          young children who are voluntarily placed by a parent are less 
          serious than those of older children who have been removed from 
          parental custody by county child protective services workers due 
          to abuse or neglect."  Further, operators of crisis nurseries 
          argued "that the costs of complying with group home regulations 
          are excessive and threaten their viability." 

          To allow for the monitoring and evaluation of this licensing 
          category, SB 855 was approved with a sunset of January 1, 2008.  
          That sunset was extended by two subsequent measures to establish 
          the current sunset of January 1, 2014 to provide additional time 
          to DSS to establish licensing regulations.  Crisis nurseries 
          were originally allowed to serve a limited number of foster 
          youth, however, that authority was eliminated effective January 
          1, 2012 pursuant to SB 1214, Chapter 519, Statutes of 2010.  
          This limits the role of crisis nurseries to only serve children 
          under the age of six who are voluntarily placed by their parent 
          or guardian under their temporary care.

          Should this sunset be allowed to take effect, crisis nurseries 
          would again have to comply with group home licensing 
          requirements under the CCCLA.  According to the California 
          Alliance of Child and Family Services, co-sponsor of this 
          measure, "there have been no significant problems in the care 
          provided to young children by crisis nurseries." 

           Foster Family Homes Penalties  







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          Under current law, foster family homes and certified family 
          homes of foster family agencies are subject to specific civil 
          penalties under the Health and Safety Code.  Specifically, 
          foster family homes and certified family homes are subject to 
          civil penalties for violating the following requirements:

             1)   Operating, establishing, managing, conducting, or 
               maintaining a community care facility without a current 
               valid license, except for a juvenile hall operated by a 
               county, or a public recreation program.  (Health and Safety 
               Code 1508)
             2)   Failing to comply with criminal background check and 
               clearance requirements.  (Health and Safety Code 1522)
             3)   Operating an "unlicensed community care facility" not 
               exempt from licensure.  (Health and Safety Code 1503.5)

          In 2008, the state adopted AB 978 (Benoit), Chapter 291, 
          Statutes of 2008, which permitted counties and DSS to levy civil 
          penalties upon foster family homes, but exempted certified 
          family homes for any serious violation of the CCCFA.  However, 
          according to the County Welfare Directors Association, this 
          exemption should have also included foster family homes.  This 
          allowance for foster family homes to be subject to civil 
          penalties for each day they violate the CCCFA is substantial, as 
          it creates a significant financial disincentive for people to 
          become foster care providers.  There are already a number of 
          mechanisms in place to provide for the proper proportional 
          response to violations of the CCCFA, which include the authority 
          of a county welfare agency (CWA) or DSS to require a corrective 
          action plan for a foster family home to remedy minor violation, 
          to temporarily suspend, suspend or revoke their license, or to 
          remove the foster youth from the home.

           Community Treatment Centers Nursing Staff Requirements
           Since 2003, the state has adopted several measures to allow for 
          community treatment centers not required by DMH to have 24-hour 
          onsite licensed nursing staff to have on staff at least one 
          licensed nursing staff available to respond to needed care 
          within one hour.  This permission was initially adopted in 2003 
          by AB 1370 (Yee), Chapter 575, Statutes of 2003 with a sunset of 
          January 1, 2007.  This sunset has been extended an additional 
          two times via legislation.  This measure would now eliminate 
          that sunset and permanently allow community treatment centers 
          that meet specified conditions to have on staff and on call 







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          rather than onsite licensed nursing staff.

          The Legislature has three times prior established and extended 
          this sunset, which has allowed for the efficient and appropriate 
          care of children in specified community treatment centers under 
          the oversight of DMH.  It is appropriate to allow this sunset to 
          be lifted to remove the limitation of this permission.  Should 
          the Legislature deem this permission unnecessary, it can always 
          revisit this issue via legislation. 

           Rate Setting Methodology for Foster Care Group Homes Serving SED 
          Children
           With the repeal of AB 3632 of 1984 by AB 114, the education 
          budget trailer bill for the 2011-12 state budget, it transferred 
          the responsibility to provide mental health services to special 
          education students from county mental health departments to 
          county offices of education.  As a part of this transfer, it 
          created an ambiguity as to how rate classification levels (RCL) 
          are calculated for foster care group homes serving special needs 
          children with mental health needs.  Group home funding is set 
          based upon its RCL.

          Prior to the repeal of AB 3632, a group home serving both foster 
          youth and special education children with mental health needs 
          was allowed to count both categories of children towards the 
          calculation of its RCL.  However, according to the California 
          Alliance of Child and Family Services, which is a co-sponsor of 
          this measure, DSS is interpreting AB 114 to limit the RCL 
          calculation to only the number of foster youth served and not 
          special education pupils with mental health needs.  This results 
          in a lower funding rate equivalent to lower service needs of 
          children in care, even though the group home continues to serve 
          high needs children. 

          This measure would allow a group home's rate classification to 
          be provisionally calculated based upon the all children served 
          in the by the group home until DSS issues revised regulations or 
          policies via All County Letter(s) governing the setting of a 
          group home's RCL. 

           Performance Agreement Waivers  
          Current law allows the Director of DSS to provide waivers of 
          foster care payments or the operation of group homes to enable 
          CWAs to enter into agreements with local non-profit child and 
          family services agencies to provide alternatives to group home 







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          care.  The purpose is to provide an alternative placement to a 
          locked juvenile facility, such as a camp-oriented group home or 
          other less restrictive environment to provide for a more 
          positive youth environment.

          Initially established by SB 933 (Thompson), Chapter 311, 
          Statutes of 1998, waivers were authorized to be in effect for 
          three years with an additional three-year extension as requested 
          by the CWA.  Since the establishment of this waiver authority, 
          one additional measure was adopted (AB 388 (Torres/Hagman), 
          Chapter 445, Statutes of 2009), which allowed for an additional 
          three-year waiver extension.  This measure would allow the 
          Director of DSS to extend the waiver in increments of three 
          years, as long as the CWA submits a report and independent 
          evaluation of the performance agreement, and provides adequate 
          justification for the waiver and demonstrates its ability to 
          continue to comply with the performance agreement.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Boys Republic
          California State Association of Counties (CSAC)
          California Alliance of Child and Family Services
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089