BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 403 (Mark Stone) - Public social services:  foster care  
          placement:  funding
          
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          |Version: July 16, 2015          |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 27, 2015   |Consultant: Jolie Onodera       |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  AB 403 states the intent of the Legislature to improve  
          California's child welfare system and its outcomes through the  
          use of comprehensive initial child assessments, increasing the  
          use of home-based family care and the provision of services and  
          supports to home-based family care providers, reducing the use  
          of congregate care placement settings, and creating faster paths  
          to permanency to reduce the duration of a child's involvement in  
          the child welfare and juvenile justice systems. 
          This bill, among its numerous provisions, establishes the  
          framework for the commencement of the development of the reforms  
          to the existing foster care placement system and payment  
          structures through the codification of a number of  
          recommendations included in the Department of Social Services'  
          report, California's Child Welfare Continuum of Care Reform  
          (CCR). 








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          Fiscal  
          Impact:  
            Local child welfare and probation agencies  :  Major initial  
            investments in the tens of millions of dollars (General Fund*)  
            annually over a number of years to local agencies for  
            increased costs for activities including but not limited to  
            comprehensive initial child assessments, recruitment,  
            retention, and support services (including staffing, training,  
            specialized care, and child care) for home-based family care  
            providers, increased services costs for higher rates for  
            wraparound services, foster family agencies (FFAs), and  
            short-term residential treatment centers (STRTCs), performance  
            and outcome measurement and data collection, and accelerated  
            statewide implementation of the Resource Family Approval (RFA)  
            process.  
            2015 Budget Act  :  Includes initial funding to support  
            recommendations in the CCR report consisting of $20.3 million  
            ($17.2 million General Fund) to increase foster parent and  
            relative caregiver recruitment, retention, and training  
            efforts, and $7.3 million ($4.3 million General Fund) to fund  
            a 15 percent increase in FFA social worker rates.  
            DSS licensing, oversight, and administration  :  Significant  
            one-time and ongoing costs (General Fund) for the development  
            of revised rate structures, multiple sets of regulations for  
            new and revised licensing categories and RFA due process  
            procedures, stakeholder workgroup activities, development and  
            implementation of a system of governmental monitoring and  
            oversight, the development of revised training curricula, and  
            automation system changes. The magnitude and duration of these  
            costs will be dependent on the complexity and structure of the  
            processes developed, which are undetermined at this time. 
            DHCS administration  :  Significant one-time costs (General  
            Fund) to promulgate regulations regarding program standards,  
            oversight, enforcement, and due process for the mental health  
            certification of STRTCs and FFAs that provide intensive or  
            therapeutic treatment services, and to collaborate with DSS on  
            a monitoring and oversight program. 
            EPSDT/specialty mental health services  :  Major costs  
            potentially in the millions to tens of millions of dollars  
            (Federal Funds/Local Revenue Fund 2011(Behavioral Health  
            Subaccount)) annually for increased services and  








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            administration for both new and existing cases to the extent  
            the bill's reforms result in more appropriate placements and  
            assessments of need for children entitled to these services.  
            Pursuant to 2011 Realignment, responsibility for specialty  
            mental health and EPSDT services rests with the counties. 
            Long-term impact  :  Unknown, potentially significant future  
            cost savings to the child welfare and juvenile justice systems  
            to the extent the reforms result in better-informed and  
            appropriate initial placements provided with targeted  
            services, coupled with greater use of family-based care and  
            declining use and duration of congregate care placements and  
            costs, resulting in shorter and/or fewer stays in the child  
            welfare and juvenile justice systems. This overall savings is  
            predicated on numerous interdependent factors including but  
            not limited to the availability of adequate capacity and  
            quality of placement options for youth, the successful  
            provision of services to meet the individual needs of each  
            child, an effective system of monitoring and local interagency  
            coordination to ensure identified services are being provided  
            and transitions to home-based family care are made timely, the  
            rates developed for STRTCs/FFAs and the number of GH  
            placements from each RCL level transitioned to the  
            restructured rates, successful efforts to maximize federal  
            financial participation, the ability of families to meet the  
            specialized needs of this population, and performance measures  
            and standards developed including data collection to enable  
            analysis and accountability. 
            Proposition 30*  :  Provides that to the extent this legislation  
            has an overall effect of increasing the costs already borne by  
            a local agency for programs or levels of service mandated by  
            2011 Realignment, it shall apply to local agencies only to the  
            extent that the state provides annual funding for the cost  
            increase. Recognizing the wide variation between counties in  
            geographic size, population of impacted children, and the  
            level and costs of services and supports currently being  
            provided, as well as the varying impacts and timing of this  
            measure on local agencies within each county (including child  
            welfare, county probation, county mental health), the point at  
            which each local agency's overall costs may decrease will  
            likewise vary. At this time, the methodology including  
            baseline assumptions for calculating this "overall effect"  
            pursuant to Proposition 30 is unclear.     
            Annual THP-Plus FC COLA  :  To the extent the specified  
            provision in this bill is determined to codify existing law  








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            with regard to the rate structure established by the workgroup  
            pursuant to WIC §§ 11402(b) and 11403.3(a)(1)(B), no new state  
            costs.    


          Author  
          Amendments:  Make numerous substantive and technical changes,  
          including but not limited to the following:
                 Revises legislative intent language in Section 1 of the  
               bill to state that if, rather than when, overall costs to a  
               local agency are reduced, annual funding by the state to  
               the local agency will only be provided as described in  
               Section 36 of Article XIII of the California Constitution. 


                 Adds legislative intent and conforming language in  
               various sections of the bill with regard to continuing the  
               commitment to protecting the essential tribal relations and  
               best interests of an Indian child by promoting practices in  
               accordance with the federal Indian Child Welfare Act and  
               other applicable laws.


                 Revises and/or extends various implementation dates for  
               transition, licensure, placement, and rates. 


                 Deletes the provision requiring the case plan to be  
               developed in collaboration with the child and family team  
               (CFT), as well as the requirement that the probation  
               officer consider the recommendations of the CFT in  
               determination of the appropriate placement of the ward. 


                 Deletes the provision requiring the probation officer to  
               document the rationale for any inconsistencies between the  
               CFT recommendations and the final placement of the ward.


                 Specifies the state agencies shall attempt to minimize  
               duplicative audits and reviews to reduce the administrative  
               burden on providers.










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                 Provides that funding for recruitment, retention, and  
               support of foster parents, relative caregivers, and  
               resource families shall be subject to appropriation by the  
               Legislature. 


                 Provides that DSS, CDE, and special education local plan  
               area (SELPA) directors shall work together to address the  
               funding formula currently based in part on the DSS rate  
               classification level (RCL) system. Specifies that the RCL  
               for group homes set by DSS will sunset pursuant to this  
               act. Prior to the sunset of the RCL, requires the  
               departments and SELPA directors to work together to develop  
               an alternative basis for its bed allowance formula.


                 Requires the DSS to work with stakeholders, including  
               other state departments, such as the Department of Health  
               Care Services, legislative staff, counties, and advocates,  
               to address critical issues in the initial and ongoing  
               implementation of this act. Requires the work with  
               stakeholders to include the development of timelines and  
               key milestones for implementation of this act, including a  
               process to monitor progress. Requires the DSS, in  
               consultation with stakeholders, to measure and track  
               changes in the number of out-of-home placements that are  
               available to county placing agencies, as specified. 


                 Requires the stakeholder process to address subject  
               areas including but not limited to the following:
                  o         Rate development for STRTCs, FFAs, and other  
                    caregivers.
                  o         Assessments.
                  o         Retention and recruitment of home-based family  
                    caregivers.
                  o         Availability of core services, including  
                    specialty mental health services.
                  o         Meeting the needs of specialized populations  
                    within the child welfare system.
                  o         The mental health certification process.
                  o         Simplification of the licensure and approval  
                    process for resource families.
                  o         Outcomes, accountability measures, and data  








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                    collection.


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