BILL ANALYSIS Ó
SB 522
Page 1
Date of Hearing: August 21, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
SB 522 (Hueso) - As Amended: August 5, 2013
Policy Committee: Human
ServicesVote:7 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill expands the Foster Family Home and Small Family Home
Insurance Fund (FFH/SFH Fund) liability insurance coverage for
foster parents, to include all criminal or intentional acts
committed against a foster child, unless committed by the foster
parents themselves. In addition, this bill requires county
welfare agencies to include SSI benefits information in a foster
youth's supplemental report to the juvenile court.
FISCAL EFFECT
1)The defendant in the Brandon S. v. The State of California
lawsuit that drove previous bills on the subject of limiting
liability for foster parents was asking for $250,000 in
damages. Under this bill, it is likely he would have received
those damages from the fund. Depending on how many similar
cases are brought forward, it could cost the fund in excess of
$250,000 per case (FFH/SFH Fund).
2)To the extent an additional five minutes of social worker time
per report is required for each initial supplemental report,
increased state costs of $275,000 GF could result. It is
assumed subsequent reports would require minimal additional
time to update, however, ongoing additional workload would be
incurred as new youth enter the foster care caseload.
3)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 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,
SB 522
Page 2
increased foster care costs of $850,000 (Federal/Local Revenue
Fund) could result.
COMMENTS
1)Purpose . The sponsor of the measure, the Children's Advocacy
Institute (CAI) contends that the bill is intended to fix a
drafting error and restore the Foster Family Home and Small
Home Insurance Fund liability insurance coverage for foster
parents to its originally intended purpose, thereby increasing
coverage and protection for foster parents. CAI contends that
this will promote the recruitment of quality foster parents
with assets to protect, and ensure that a foster child will be
able to receive compensation from the fund for their injuries,
as intended when the fund was enacted.
In terms of SSI benefits information, CAI notes that the bill
requires that the supplemental report required as part of a
foster youth's periodic review also includes information
regarding whether the county has applied to be a
representative payee for SSI benefits for a foster child, and
whether the county has been appointed to serve as the
representative payee for a child who is receiving SSI benefits
while in the county's custody. They hope this notice will
ensure that all parties, including the child and the child's
attorney, can be part of the discussion as to who should serve
as the payee and how these benefits should be used to serve
the best interests of the child as required by both state and
federal law.
2)Foster Family Home and Small Family Home Insurance Fund . The
fund was created by the Legislature in 1986 to provide gap
liability coverage to licensed foster family homes and small
family homes. Prior to the creation of the fund, licensed
foster family home operators state they were routinely denied
homeowner's and other types of insurance based on their status
as foster parents, or related activities. The fund, along
with companion changes in policy governing insurance coverage
(INS 676.7), allowed foster family homes indemnification for
liability incurred during the course of providing related
services. This effort was aimed at ensuring the state could
recruit and retain qualified foster family providers.
Once licensed, a foster family home is covered by the fund for
claims totaling up to $300,000 in a single year for valid
SB 522
Page 3
claims submitted by foster children or their parents or
guardians that occur as a result of the activities of the
foster parent, while the child resides in the home. The
original $300,000 cap was enacted in 1986 and has not changed
in the over twenty years since.
3)Supplemental Security Income (SSI) benefits are federal
disability benefits available under Title XVI of the Social
Security Act for certain low-income individuals, including
children, with disabilities. In addition to income and asset
limitations, eligibility for children may be determined on the
basis of a severe mental or physical impairment which impacts
a child's functioning and ability to work, or a child may be
presumptively eligible if he or she is blind or has a
significant developmental disability.
SSI provides cash assistance to help pay for basic needs such
as food, clothing and housing. In California, qualifying for
SSI also makes the beneficiary categorically eligible for
Medi-Cal, which includes access to mental health services. A
2007 report by the Congressional Research Service, estimated
there were approximately 30,000 children nationwide in foster
care eligible for SSI benefits due to disability. According
to the California Department of Social Services, approximately
15% of youth who age out of foster care are eligible for SSI.
Federal Old-Age, Survivors, and Disability Insurance (OSDI)
Social Security benefits may also be paid to a child under
Title II of the Social Security Act on behalf of working
parents who have retired, become disabled, or died.
Pursuant to federal law, when a Social Security and/or SSI
beneficiary is unable to manage his or her own benefits, a
representative payee must be appointed by the Social Security
Administration (SSA). Typically, this person might be a
relative or close acquaintance. California law requires the
county to apply to become the representative payee for a
foster child in its custody when there is no other appropriate
person available. As the representative payee, the county may
use the child's SSI benefit to offset the cost of the care it
provides to the child in foster care. In fact, in 2003 the
Supreme Court unanimously upheld the right of the states to
offset the costs of foster care with its ruling in Washington
State Department of Social and Health Services v. Guardianship
Estate of Danny Keffeler, 537 U.S. 371. The Court noted in
SB 522
Page 4
its ruling that prohibiting a state from doing so could
disadvantage children in foster care because the state would
not maintain the child's SSI eligibility.
The child's benefits must be used, to promote the best
interests of the child which may include using the benefits to
pay for food, clothing, shelter or other items the child
needs. If there are benefits over what is spent each month on
the child's basic needs, then those benefits must be deposited
into a maintenance account for the youth, which can only
accumulate up to the SSI resource limit of $2,000 before it
must be spent down on allowed expenses. A youth may not have
more than $2,000 in resources as it would jeopardize his or
her SSI eligibility. Any funds remaining in the youth's
maintenance account when he or she emancipates, are paid out
to the youth.
4)Related Legislation . In 2011, AB 1110 (Lara) would have
required additional reporting and court oversight concerning
the receipt of Supplemental Security (SSI) income for foster
youth. That bill was held on this committee's Suspense File.
AB 863 (Bonilla of 2011) was substantially similar to AB 2206
(Hill, 2010) and was held on this committee's Suspense File.
AB 2206 (Hill of 2010) would have limited the Foster Family
Home and Small Family Home Insurance Fund liability exclusions
to only those criminal or intentional acts committed by a
foster parent. This bill was held on this committee's
Suspense File.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081