BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 1521 (Liu) - Child welfare services. Amended: April 10, 2012 Policy Vote: Human Services 7-0 Urgency: No Mandate: Yes Hearing Date: May 24, 2012 Consultant: Jolie Onodera SUSPENSE FILE. Bill Summary: SB 1521 would revise existing state law to meet the standards of compliance effectuated with recent changes to federal law that affect funding for a variety of child welfare services, as specified. Fiscal Impact: Annual ongoing costs potentially in excess of $200,000 (General Fund) to the Department of Social Services (DSS) to have county agencies provide annual credit reports to foster youth age 16 and older, as specified, and require county welfare departments and probation departments to provide assistance in interpreting the consumer credit disclosure to youth on an annual basis. Annual ongoing costs of $90,000 (General Fund) to the DSS to comply with the educational stability requirements for foster youth pursuant to federal law. Minor costs to DSS to effectuate the CAPTA and AAP reporting requirements. In the absence of the specified changes to current law, California could be at risk of federal penalties and loss of federal funds. Background: Child Abuse Prevention and Treatment Act (CAPTA) In order to receive federal CAPTA funds, states are required to submit state plans which meet the requirements specified under federal law. California receives approximately $3 million in CAPTA funds annually. The CAPTA Reauthorization Act of 2010 (Public Law (P.L.) 111-320) added a requirement that states have a mechanism in place to ensure that reunification of a dependent child with a parent who is a registered sex offender (RSO) is not required. SB 1521 (Liu) Page 1 Caseworker Visit Assurances Prior federal law enacted required that 90 percent of children in care be visited monthly by their caseworker and prescribed fiscal penalties for failing to meet this requirement. It also required states to develop a plan to meet the requirement. Existing state statute reflects these threshold and plan requirements. California has been penalized by the federal government for failing to meet this threshold for the past two years. The Child and Family Services Improvement and Innovation Act of 2011 (P.L. 112-34) raised the caseworker visit requirement from 90 percent to 95 percent, effective in October 2014, and added a requirement (also effective in October 2014) that 50 percent of all such visits be in the child's home. Documentation of Adoption Assistance Program (AAP) Savings As a result of the federal Fostering Connections to Success and Increasing Adoptions Act of 2008 (P.L. 110-351), the practice of determining eligibility for AAP funding by the use of 1996 Aid to Families with Dependent Children income limits is being phased out, resulting in increasing numbers of children who are eligible for federal AAP funding and thus reducing the state-only share of costs. P.L. 110-351 required that states reinvest in child welfare programs any savings of state funds realized due to increased federal funding. P.L. 112-34 adds a requirement that states document how such savings are reinvested. Promoting Safe and Stable Families Program (PSSF) PSSF provides approximately $33 million annually for counties to offer services aimed at either preventing the removal of children from their families, or ensuring permanency for children who have been removed. P.L. 112-34 expanded the services eligible for this federal funding to include mentoring services. Because state statute implementing PSSF duplicates federal definitions regarding services, changes need to be made to reflect the current definitions. Educational Stability P.L. 110-351 required that states provide, in a foster youth's case plan, assurances that the youth's placement takes into consideration his or her educational stability. P.L. 112-34 clarifies that these assurances must be made for each placement of a child, not merely the first placement. Existing state SB 1521 (Liu) Page 2 statute does not reflect this requirement. Credit Reports for Foster Youth P.L. 112-34 enacted a requirement that each foster youth age 16 and older receive an annual consumer credit report until juvenile court jurisdiction is terminated, and that the youth receive assistance in interpreting and resolving any inaccuracies in his or her credit report. Current state statute contains a similar requirement; however, this statute does not fully meet the requirements of federal law, and its implementation has been delayed until July, 2013, beyond the date by which the federal requirement must be met. Proposed Law: This bill would revise existing law to meet or exceed standards in federal law to ensure continued receipt of federal funds for child welfare services: Provides that reunification services need not be provided to the parent or guardian of a dependent of the court when the court finds that the parent or guardian has been required to register on a sex offender registry pursuant to the Adam Walsh Child Protection and Safety Act of 2006. Makes clarifying and federal conformity changes to current statute requiring credit report disclosures be provided to emancipating foster youth. Specifically, this bill requires that following the child's 16th birthday credit disclosures shall be requested each year and that the county social worker or probation officer shall ensure that the dependent child receives assistance with interpreting the credit disclosure. Requires counties to document and report on how savings attributable to federal changes to the Adoption Assistance Program are spent in accordance with federal requirements. Requires that assessments of training programs serving county child protective services social workers include certain workforce data information including education, qualifications and demographics of social workers; number of persons trained; and additional information as deemed necessary by the department. Clarifies that foster care case plans include educational stability assurances, as specified, for each new placement instead of only assuring it for the initial placement. Specifically, case plans must include an assurance that each placement takes into account the SB 1521 (Liu) Page 3 appropriateness of the current educational setting and the proximity to the school the child was enrolled in at the time of placement; and an assurance that the placement agency has coordinated with the person making educational decisions for the child and the local educational agencies to ensure that the child remains in the school in which the child is enrolled at the time of placement. Effective October 1, 2014, implements new federal law requiring that 95 percent of children in foster care be visited each month and effective October 1, 2011 that 50 percent of the total caseworker visits occur in the child's home. Adds certain services to the allowable reunification services provided to a child in foster care and to their parents or guardians under the Promoting Safe and Stable Families program. Specifically, the added services are peer to peer mentoring and support groups for parents and primary caregivers, as well as services and activities to facilitate access to and visitation of children with parents and siblings. Staff Comments: Staff notes that in the absence of the aforementioned specified changes to current law, California could be at risk of federal penalties and loss of federal funds. Child Abuse Prevention and Treatment Act (CAPTA) In California, reunification is always at the discretion of the court; therefore, in practice, California already complies with the federal requirement. The proposed statutory change explicitly reflects this compliance to satisfy the requirements of the CAPTA. The change in the state plan is estimated to result in minor and absorbable costs to the DSS. Caseworker Visit Assurances P.L. 112-34 raised the caseworker visit requirement from 90 to 95 percent, effective in October 2014, and added a requirement that 50 percent of all such visits be in the child's home. Changes to this provision of law are not projected to result in increased costs to the DSS. Documentation of Adoption Assistance Program (AAP) Savings Phasing out the "AFDC look-back" will result in increasing numbers of children who are eligible for federal AAP funding and thus reduce the state-only share of this cost. P.L. 110-351 SB 1521 (Liu) Page 4 required that states reinvest in child welfare programs any savings of state funds realized due to increased federal funding. P.L. 112-34 adds a requirement that states document how such savings are reinvested. The additional administrative costs associated with this requirement are unknown, but are estimated to be minor and absorbable within existing DSS resources. Promoting Safe and Stable Families Program (PSSF) P.L. 112-34 expanded the services eligible for this federal funding to include mentoring services. Because state statute implementing PSSF duplicates federal definitions regarding services, changes need to be made to reflect the current definitions. Expanding the definition of services will not change the overall level of PSSF funding and is not anticipated to result in any impact to the DSS. Educational Stability P.L. 110-351 required that states provide, in a foster youth's case plan, assurances that the youth's placement takes into consideration his or her educational stability. P.L. 112-makes clear that these assurances must be made for each placement of a child, not merely the first placement. Current California statute does not reflect this requirement. There is no estimated fiscal impact of this change in the current year as these costs are currently budgeted. Annual ongoing costs to the DSS are estimated at $90,000 (General Fund). Credit Reports for Foster Youth Providing each foster youth age 16 and older with an annual consumer credit report until juvenile court jurisdiction is terminated, as well as providing the youth with assistance in interpreting and resolving any inaccuracies in his or her credit report will result in increased costs to the state and counties. Current state statute contains a similar requirement; however, this statute does not fully meet the requirements of federal law, and its implementation has been delayed until July, 2013, beyond the date by which the federal requirement must be met. The estimated annual ongoing cost to comply with the federal provisions is $200,000 (General Fund). Staff notes the Governor's proposed constitutional amendment (A.G. File No. 12-0009) specifies that certain unanticipated costs related to realignment would be shared between the state SB 1521 (Liu) Page 5 and local governments. Specifically, the state would be required to fund at least half of any new local costs resulting from certain changes in federal statutes or regulations. Should the proposal be approved, the General Fund costs associated with the provisions described above could be greater.