BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 985 (Cooley) - Kinship guardianship assistance payment  
          (Kin-GAP) program. 
          
          Amended: August 12, 2013        Policy Vote: Human Services 6-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 12, 2013                           
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 985 would expand eligibility for extended state  
          Kin-GAP benefits to age 21 to youth who attain 18 years of age  
          while receiving federal or state KinGAP benefits and who entered  
          the program prior to reaching the age of 16, subject to  
          specified criteria. 

          Fiscal Impact: 
              Annual state Kin-GAP payment and administrative costs  
              (General Fund) of $1.2 million in FY 2013-14 (6 months),  
              $7.8 million in FY 2014-15, $11.5 million in FY 2015-16, and  
              $14.2 million once fully implemented. This estimate reflects  
              the cumulative effect as cases extend to age 21 and assumes  
              over 1,500 average monthly Kin-GAP cases once fully  
              implemented at a cost of $679 per month.
              Ongoing state costs potentially in the range of $100,000  
              (General Fund) per year for disability determinations by  
              county social workers.

          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  
          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  








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          address various issues identified subsequent to implementation  
          of the initial legislation. 

          Under existing federal law, states are eligible to receive  
          federal reimbursement for the Kin-GAP program, which serves  
          youth who exit the juvenile dependency system to achieve  
          permanency in the home of a relative, non-relative extended  
          family member, or tribal member caregiver. Under the federal  
          act, youth who enter the Kin-GAP program are eligible for  
          extended Kin-GAP benefits to age 21 only if the youth was over  
          the age of 16 at the time that a Kin-GAP agreement was  
          negotiated (with the exception of youth who have a physical or  
          mental disability that warrant continuation of assistance). The  
          extended state Kin-GAP program eligibility requirements are  
          consistent with the federal Kin-GAP program in this regard.

          Proposed Law: This bill would extend 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 the following  
          criteria:
              For youth who have attained 18 years of age in the  state   
              Kin-GAP program, state Kin-GAP benefits may continue to age  
              21 if: 
                  o         The relative guardian continues to be  
                    responsible for the support of the youth.
                  o         The youth meets one or more of the following  
                    conditions:
                       �              Completing high school or a program  
                         leading to an equivalent credential.
                       �              Enrolled in a postsecondary or  
                         vocational education program.
                       �              Participating in a program or  
                         activity designed to promote or remove barriers  
                         to employment.
                       �              Employed at least 80 hours per  
                         month.
                       �              Is incapable of activity due to a  
                         medical condition supported by information in the  
                         case plan.
              For youth who have attained 18 years of age while receiving  
               federal  Kin-GAP benefits, but are no longer eligible under  
              that program, state Kin-GAP benefits may continue to age 21  
              if:








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                  o         The youth's relationship to the kinship  
                    guardian is related to the child by blood, adoption,  
                    or affinity within the fifth degree of kinship,  
                    including stepparents, stepsiblings, and all relatives  
                    whose status is preceded by the words "great,"  
                    "great-great," or "grand" or the spouse of any of  
                    those persons even if the marriage was terminated by  
                    death or dissolution (excludes non-related extended  
                    family members).
                  o         The youth was under 16 years of age at the  
                    commencement of Kin-GAP payments.
                  o         The guardian continues to be responsible for  
                    the support of the youth.
                  o         The youth meets one or more of the  
                    educational/employment provisions noted above for the  
                    state Kin-GAP program.
              For both state and federal Kin-GAP programs, requires  
              county social workers to, at the time of redetermination of  
              eligibility closest to the child's 18th birthday, determine  
              whether the child has a mental or physical disability that  
              warrants continuation of assistance, as specified. 
              Retains the provision under the federal Kin-GAP program  
              authorizing continuation equivalent level of vocational or  
              technical training on a full-time basis, who are reasonably  
              expected to complete the educational or training program  
              before age 19.

          Prior Legislation: AB 12 (Beall/Bass) Chapter 559/2010 enacted  
          the California Fostering Connections to Success Act of 2010, and  
          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  








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          foster children, as specified, and extended eligibility for  
          non-related legal guardian placements to age 21.

          Staff Comments: By expanding state Kin-GAP payments to youth  
          currently receiving state or federal Kin-GAP who were receiving  
          benefits prior to age 16, the provisions of this bill will  
          result in ongoing increased costs to the state. The Department  
          of Social Services (DSS) data indicates 1,369 Kin-GAP youth who  
          will turn 18 years of age in 2013-14 who could potentially be  
          eligible for extended Kin-GAP benefits. Assuming 80 percent of  
          18 year olds will remain in extended Kin-GAP to age 19, 39  
          percent will extend to age 20, and nearly 33 percent will extend  
          to age 21, the estimated ongoing costs for extending Kin-GAP  
          benefits to these nonminors based on an average Kin-GAP grant of  
          $679 per month and an administrative cost per case of $57 per  
          month is $1.2 million in FY 2013-14 (6 months), $7.8 million in  
          FY 2014-15, $11.5 million in FY 2015-16, and $14.2 million  once  
          fully implemented. The rising costs reflect the cumulative  
          effect of the cohorts of nonminors turning 19, 20, and 21 years  
          of age each year, adjusted for the reduced percentage of  
          nonminors estimated to extend each year.