BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 787 (Stone) - Foster care. Amended: June 14, 2013 Policy Vote: HS 6-0, JUD 7-0 Urgency: No Mandate: Yes Hearing Date: August 19, 2013 Consultant: Jolie Onodera This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 787 would make various changes to the California Fostering Connections to Success Act (the Act) to ensure the continued implementation of the Act, as specified. Fiscal Impact: Potential minor state costs for extended foster care and adoption assistance benefits for former nonminor dependents (NMDs) whose guardian, relative, or adoptive parent passed away prior to the NMD's 21st birthday. Annual benefit and case management costs would be in the range of $15,000 to $40,000 (General Fund) per case, depending on the placement type. Potentially significant ongoing state costs in the hundreds of thousands to low millions of dollars (General Fund) for probation NMDs placed by probation officers into approved placements not currently authorized under existing law. Increased county administrative costs of about $35,000 (General Fund) per year for county assessments conducted 90 days prior to a youth's 18th birthday. This estimate assumes a 45-minute assessment at a cost of $57 per youth for 600 youth turning 18 per year. Ongoing county cost savings of $2.3 million (2011 Local Revenue Fund) for the removal of case management requirements for NMD placements with nonrelated legal guardians (NRLGs). This estimate assumes an average of 425 NMDs would not require case management services at a cost of $450 per case per month. 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 AB 787 (Stone) Page 1 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 (Beall) Chapter 459/2011 and AB 1712 (Beall) Chapter 846/2012 to address various issues identified subsequent to implementation of the initial legislation. This bill makes additional changes to ensure the continued successful implementation of the Act. Proposed Law: This bill would make the following changes to the Act, as follows: Authorizes re-entry into extended foster care and adoption assistance for former NMDs who reached permanency but whose guardian, relative, or adoptive parent passed away prior to the NMD's 21st birthday. Revises foster care disposition statute to authorize probation officers to place NMDs into approved transitional services placements. Provides a definition of "transition dependent" to allow these youth subject to the court's transition jurisdiction to be eligible for extended foster care benefits. Removes state case management requirements prospectively for nonminors placed with NRLGs to align statute with case management requirements under federal Title IV-E eligible NRLG requirements. Clarifies the juvenile court's authority and the process required to terminate dependency for a NMD but maintain jurisdiction over the youth as a nonminor. Requires counties to assess a youth in a voluntary placement agreement 90 days prior to the youth's 18th birthday to determine whether a petition for foster care should be filed with the court. Makes other clarifying and technical changes. Related Legislation: AB 985 (Cooley) 2013 would extend eligibility for extended state Kin-GAP benefits to age 21 to youth who attain 18 years of age while receiving federal or state Kin-GAP benefits and who entered the program prior to reaching the age of 16, subject to specified criteria. This bill is currently on this committee's Suspense File. Prior Legislation: AB 12 (Beall/Bass) Chapter 559/2010 enacted the California Fostering Connections to Success Act of 2010, and AB 787 (Stone) Page 2 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 to Success Act of 2010. AB 1712 (Beall) Chapter 846/2012 expanded the definition of "relative" for purposes of both the federal and 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, and extended eligibility for non-related legal guardian placements to age 21. Staff Comments: Authorizing extended foster care and adoption assistance benefits for former NMDs whose guardian, relative, or adoptive parent passed away prior to the NMD's 21st birthday is estimated to result in minor annual benefit and case management costs in the range of $15,000 to $40,000 (General Fund) per case, depending on the placement type. By expanding the placement options of probation NMDs to include the extended foster care placement types of supervised independent living placements (SILPs) and transitional housing placement (THP-Plus) placements, the provisions of this bill could result in potentially significant ongoing state costs in the hundreds of thousands to low millions of dollars (General Fund) for probation NMDs placed by probation officers into approved placements not currently authorized under existing law. According to the Department of Social Services, the THP-Plus placement average cost per case is $3,000 per month and the SILP placement average cost per case is $835 per month. For every 100 probation NMDs that enter into voluntary agreements for continued placement and care that otherwise would not have occurred, annual costs could range from $1 million to $3.6 million (General Fund). This bill would require counties to assess a youth in a voluntary placement agreement 90 days prior to the youth's 18th birthday to determine whether a petition for foster care should be filed with the court. This activity is estimated to result in AB 787 (Stone) Page 3 increased county administrative costs of about $35,000 (General Fund) per year for county assessments based on a 45-minute assessment at a cost of $57 per youth for 600 youth turning 18 years old per year. Removing the state case management requirements prospectively for nonminors placed with NRLGs to align statute with case management requirements under federal Title IV-E requirements is estimated to result in ongoing county cost savings of $2.3 million (2011 Local Revenue Fund). This estimate assumes an average of 425 NMDs would not require case management services at a cost of $450 per case per month. Prior to Fiscal Year (FY) 2011-12, the state and counties contributed to the non-federal share of foster care and child welfare services expenditures. AB 118 (Committee on Budget) Chapter 40/2011 and ABX1 16 Chapter 13/2011 realigned state funding to the counties through the 2011 Local Revenue Fund (LRF) for various programs, including but not limited to foster care and child welfare services. As a result, beginning in FY 2011-12 and for each fiscal year thereafter, non-federal funding and expenditures for foster care and child welfare services activities are funded through the 2011 LRF. Proposition 30, passed by the voters in November 2012, among other provisions, eliminated any potential mandate funding liability for any new program or higher level of service provided by counties related to the realigned programs. Although the provisions of this bill create a mandate on local agencies, any increased costs would not appear to be subject to reimbursement by the state. Rather, Proposition 30 specifies that for legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for realigned programs, the provisions shall apply to local agencies only to the extent that the state provides annual funding for the cost increase. As the ongoing county administrative cost savings ($2.3 million) may not cover the additional costs associated with this measure, the provisions of this bill may apply only to the extent that the state provides annual funding for the potential cost increase.