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 ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 16, 2015 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- *********** 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). AB 403 (Mark Stone) Page 1 of ? 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 AB 403 (Mark Stone) Page 2 of ? 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 AB 403 (Mark Stone) Page 3 of ? 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. AB 403 (Mark Stone) Page 4 of ? 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 AB 403 (Mark Stone) Page 5 of ? collection. -- END --