BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 522|
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THIRD READING
Bill No: SB 522
Author: Hueso (D)
Amended: 4/8/13
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 6-0, 4/23/13
AYES: Yee, Berryhill, Emmerson, Evans, Liu, Wright
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Dependent Children: supplemental reports:
Supplemental Security Income Benefits
SOURCE : Childrens Advocacy Institute
DIGEST : This bill requires a foster youths periodic review to
include a supplemental report with information regarding whether
a county has applied to be a representative payee for
Supplemental Security Income (SSI) benefits for a foster child
and whether the county or any individual from the county has
been appointed to receive the SSI benefits.
ANALYSIS :
Existing federal law:
1. Provides for the payment of (SSI), under Title XVI of the
Social Security Act (Act) for certain disabled children from
families with low incomes and minimal assets.
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2. Provides for the payment of Social Security benefits, under
Title II of the Act to the children of workers who have
retired, become disabled, or died.
3. Permits, upon a determination by the Commissioner of Social
Security, payments to be made to another individual, or an
organization.
4. Requires that in most cases the Social Security
Administration (SSA) select and assign a representative
payee, such as an individual, organization, or a government
entity, to manage SSI and Social Security payments for
children, including those in foster care.
5. Establishes a representative payee preference list for SSI
benefits. For beneficiaries under age 18, the preference
order is a custodial natural or adoptive parent, a
noncustodial natural or adoptive parent, a custodial relative
or stepparent, a noncustodial relative or stepparent, a
noncustodial relative or close friend, and then an authorized
social agency or custodial institution.
6. Requires SSA to provide written notice to the aided
individual when the initial determination to make a benefit
payment to a representative payee is made, unless the
individual is under the age of 15, is an unemancipated minor
under the age of 18, or is legally incompetent, in which case
notice is provided to the legal representative of the aided
individual.
Existing state law:
1. Requires a county, when determining eligibility for Aid to
Families with Dependent Children - Foster Care payments, to
determine whether the child is currently in receipt of
benefits pursuant to Title II or Title XVI of the Act. If
so, requires the county to apply to become the child's
representative payee, as appropriate, during the time the
child is placed in foster care.
2. Requires a county, when a foster youth in receipt of SSI
payments is approaching his/her 18th birthday, to provide
information to the youth regarding the continuation of
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his/her disability status in order to retain SSI eligibility,
and regarding the process for becoming his/her own payee, or
designating an appropriate representative payee, as
specified.
3. Permits a nonminor dependent who receives SSI to serve as
their own payee, if permitted by SSA, even when they remain
in the state's care as a nonminor dependent.
4. Requires that every youth between the ages of 16 and 17
be screened by the county for potential SSI eligibility, and
if possible to be timed to allow for a determination of
eligibility to occur prior to the youth's emancipation from
care.
This bill requires that a county's supplemental report to the
court include a factual discussion regarding whether the county
has applied to become the child's representative payee for SSI
benefits and whether the county, or any other individual known
to the county, has been appointed to serve as the representative
payee for a child in foster care.
Background
California foster youth receiving SSI/State Supplemental
Payments (SSP) .
SSP, established under Title XVI of the Act are available for
certain children with disabilities if the children have low
incomes and few assets. California, like most states,
supplements SSI with a SSP. In order to be eligible, youth may
not have more than $2,000 worth of assets and may not
participate in gainful activities worth more than $1,000 per
month.
The Department of Social Services (DSS) receives monthly reports
from counties regarding the number of youth who apply for
SSI/SSP and whether the applications are approved or denied.
This year, DSS reports the submission of an average of 1,150
applications monthly and, of those, an average of 700 denials.
DSS instructions to the county convey the importance for
children and youth to be informed if an application is being
filed on their behalf. In addition, DSS instructions state that
it is the county's responsibility to provide emancipating youth
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potentially eligible for SSI with information about his/her
potential SSI eligibility.
Prior Legislation
AB 1110 (Lara, 2011) would have required social workers to
include in their supplemental reports to the court, specified
information about a foster youth's SSI benefits. Additionally,
would have required a county to provide written notice to the
child's counsel 30 days in advance of the county filing to be
appointed as the representative payee of a foster child. Would
have authorized a child's counsel to request an accounting of
how a foster child's SSI benefits are being expended if the
county is the child's representative payee. Would have required
a child's status review to make certain determinations regarding
a child welfare agencies actions pertaining to a child's SSI
benefits. The bill was held in the Assembly Appropriations
Committee.
AB 1331 (Evans, Chapter 465, Statutes of 2007) requires counties
to screen all youth between the ages of 16 and 17 for SSI
eligibility.
AB 1633 (Evans, Chapter 641, Statutes of 2006) required DSS to
convene a workgroup to develop best-practice guidelines for
county welfare departments pertaining to the SSI benefits of
foster youth. Requires counties to assist in the application
process for an eligible child, to apply to become the
representative payee, if no other appropriate party is available
to serve, and requires a county to establish a maintenance
account for each child to contain SSI payments.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
To the extent adding a factual discussion in the periodic
supplemental reports to the court on the subject of SSI
benefits for foster youth results in increased time for
social workers to research and complete the reports,
increased costs could potentially be the responsibility of
the state. To the extent on average an additional five
minutes per report is required for the initial supplemental
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report, increased state costs (non-reimbursable) of $275,000
(General Fund) could result. It is assumed subsequent
reports would require minimal additional time to update,
however, ongoing additional workload would be incurred as new
youth entered the foster care caseload.
Potential increase in foster care grant costs to the extent
the provisions of this bill result in fewer counties serving
as representative payees for foster youth, or serve as
representative payees for a reduced period of time. For
every 100 foster youth whose SSI benefits would no longer be
available to cover the cost of care, increased foster care
costs of $850,000 (Federal/Local Revenue Fund) could result.
SUPPORT : (Verified 5/24/13)
Children's Advocacy Institute (source)
National Center for Youth Law
ARGUMENTS IN SUPPORT : According to the author's office, this
bill will ensure that counties inform foster youth and their
legal counsel when a county applies to appoint itself as a
representative payee for SSI benefits. The author's office
states that this policy change will ensure that the child and
his/her lawyer are able to engage in a discussion about the
proper use of SSI payments on behalf of the child.
The author's office notes that, in administering SSI benefits
for children, including children in foster care, the SSA is
required to appoint a representative payee that will serve the
child's best needs. In the case of foster youth, SSA often
appoints the county welfare agency to be the representative
payee, and the county may use the SSI payments to cover
specified costs associated with the care of the child.
This bill's sponsor, Children's Advocacy Institute (CAI), states
that outcomes for foster youth are poor, and that many youth
exit care with no financial resources and low educational
attainment. CAI writes that, parents of children provide a
median of $50,000, as well as other forms of support, to each of
their own children after age 18 to support the child's
self-sufficiency.
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JL:k 5/24/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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