BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 522 (Hueso) - Dependent children: supplemental reports - SSI
benefits.
Amended: April 8, 2013 Policy Vote: Human Services 6-0
Urgency: No Mandate: Yes (See Staff
Comments)
Hearing Date: May 23, 2013 Consultant: Jolie Onodera
SUSPENSE FILE.
Bill Summary: SB 522 would require social workers to include in
the periodic supplemental reports to the court, information
regarding whether a county has applied to be a representative
payee for Supplemental Security Income (SSI) benefits for a
foster youth and whether the county, or any other individual
known to the county, has been appointed to receive the SSI
benefits.
Fiscal Impact:
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 5 minutes
per report is required for the initial supplemental 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.
Background: The SSI program, authorized by Title XVI of the
Social Security Act, is an assistance program for low-income
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aged, blind, and disabled adults and children that provides a
cash grant to pay for basic needs such as food, clothing, and
housing. California supplements the federal SSI payment with a
State Supplementary Payment (SSP) grant. As of January 2013, the
SSI/SSP disabled minor payment standard is $773.40 ($710
SSI/$63.40 SSP). It is estimated that approximately 15 to 20
percent of foster youth are eligible for SSI upon emancipation.
Pursuant to federal law, when a SSI beneficiary is unable to
manage his/her own benefits, a representative payee must be
appointed by the Social Security Administration (SSA). In most
cases, a relative or close friend is appointed. In the case of
foster youth, however, current state law requires a county to
apply to become the youth's representative payee if no other
appropriate person is available during the time the youth is
placed in foster care. The county is then authorized to utilize
the SSI payment to cover specified costs associated with the
care of the youth.
Excerpts from the Congressional Research Service report, Child
Welfare: Social Security and SSI Benefits for Children in Foster
Care (April 2011) state:
"In recent years, some child welfare advocates have legally
challenged states' practice of using foster children's SSI and
Title II benefits to reimburse the cost of providing foster care
to those children. The most prominent case, Washington State
Department of Social and Health Services v. Guardianship Estate
of Keffeler, reached the U.S. Supreme Court in 2002, The Supreme
Court ruled unanimously (in 2003) that the state of Washington
could, as the representative payee for a foster child receiving
Social Security or SSI benefits, use the child's benefits to
reimburse itself for the cost of that child's foster care. "
"The [Supreme] court noted that the use of funds to reimburse
the Washington State Department of Social and Health Services
for foster care was consistent with the regulatory requirement
that such funds be spent for the "use and benefit of the
beneficiary" and with the regulatory definition of "current
maintenance" that includes "costs incurred in obtaining food,
shelter, clothing, medical care, and personal comfort items."
Under existing law, the status of every foster youth must be
reviewed at least every six months by the court to consider the
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safety of the child and the continuing appropriateness of the
placement. A supplemental report is required to be filed with
the court for each of these reviews. Each report must include a
factual discussion of prescribed subjects such as consideration
of child protective services, other siblings, parent
involvement, and educational decisions for the youth. This bill
would require social workers to add to the supplemental reports
a discussion about SSI eligibility, application status, and the
representative payee for the foster youth.
Proposed Law: This bill would require social workers to include
in each periodic supplemental report to the court a factual
discussion on 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 by the federal SSA to serve as the representative
payee for a child who is receiving SSI benefits while in the
county's custody.
Related Legislation: AB 1110 (Lara) 2011 would have required
social workers to include specified information about a foster
youth's SSI benefits in the periodic supplemental reports to the
court. This bill was held in the Assembly Committee on
Appropriations.
AB 1331 (Evans) Chapter 465/2007 required counties to screen all
foster youth between the ages of 16 and 17 years of age for
SSI eligibility.
AB 1633 (Evans) Chapter 641/2006 required the DSS to convene a
workgroup to develop best-practice guidelines for county welfare
departments pertaining to SSI benefits of foster youth. This
bill required counties to assist in the application process for
an eligible child, to apply to become the representative payee
if no other appropriate party was available, and required
counties to establish maintenance accounts for each child
receiving SSI payments.
Staff Comments: By requiring social workers to include
additional information in the supplemental reports to the
courts, the provisions of this bill could result in increased
costs to the state. To the extent researching the information
and adding a discussion in the periodic reports to the court on
the subject of SSI benefits for foster youth results in
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increased time on average of 5 minutes per initial 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, as it is assumed most
youth would not have a change in circumstances. However, ongoing
additional workload would be incurred as new youth entered
foster care and an initial report with the discussion on SSI
benefits would be required.
Ensuring counties notify the youth and his or her attorney of
its intention to appoint itself as the representative payee
would provide the youth, or his or her attorney, the opportunity
to notify the SSA that there might be a parent, relative, or
other person close to the youth who might be a consideration as
the representative payee. Staff notes that DSS instructions to
counties convey the importance for youth to be informed if an
SSI application is being filed on their behalf.
To the extent the inclusion of information on SSI benefits and
the appointed representative payee in supplemental reports
results in fewer counties prospectively serving as the
representative payee in lieu of other appointees, or to the
extent counties serve as the representative payee for a shorter
length of time, for example, to enable an older foster youth to
prepare for emancipation, there could be a potential increase in
ongoing foster care grant costs. 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) per year could result.
Prior to Fiscal Year (FY) 2011-12, the state and counties
contributed to the non-federal share of various social service
programs. 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 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 these activities
including child foster care and child welfare services are
funded through the 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
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provided by counties related to the realigned programs. Although
the provisions of this bill are 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.