BILL ANALYSIS Ó AB 423 Page 1 Date of Hearing: April 28, 2015 ASSEMBLY COMMITTEE ON HUMAN SERVICES Chu, Chair AB 423 (Cooley) - As Amended April 23, 2015 SUBJECT: CalWORKs: relative caregivers SUMMARY: Requires counties to take certain steps to assist foster youth placed with relative caregivers in obtaining foster care benefits and further expands eligibility for the receipt of an infant supplement. Specifically, this bill: 1)Requires counties, immediately upon placing a child who has been removed from his or her home into the home of a relative, to initiate an application for California Work Opportunity and Responsibility to Kids (CalWORKs) assistance on behalf of the child. Further specifies that, if a relative caregiver is also needy, he or she has the responsibility for applying for CalWORKs to cover his or her own needs. 2)Requires county welfare departments, at the same time the CalWORKs application is initiated, to evaluate and approve or deny the relative's home for purposes of Aid to Families with Dependent Children-Foster Care (AFDC-FC) eligibility, as specified. 3)Requires counties, in cases where a child is found to be AB 423 Page 2 ineligible for AFDC-FC, to initiate and complete an application and determine eligibility for the Approved Relative Caregiver Funding Option (ARC) Program, where applicable, as specified. 4)Requires county welfare departments, upon determining that a child is ineligible for AFDC-FC benefits, to explain the specific basis for this determination. 5)States that the application date for AFDC-FC, ARC, or CalWORKs benefits shall be the date the child was placed with the relative. 6)Adds information on the ARC program to a list of information to be provided in a notice given to adult relatives of a removed child explaining the various options to participate in the care and placement of a child, as specified. 7)Requires a county social worker or eligibility worker to explain the eligibility requirements and benefit amounts for AFDC-FC, CalWORKs, and the ARC program to a relative who has requested placement of a child, as specified. Further requires the county to explain any actions the relative could take to affect the child's eligibility for those programs. 8)Entitles a teen parent who is detained or placed in the home of a relative caregiver, as specified, to an infant supplement, as defined. 9)States legislative intent to ensure that children placed with relatives are able to access state funding in an equal amount and in a similar manner to children in other types of foster care placements. 10)States that receipt of ARC program payments shall begin AB 423 Page 3 immediately upon determination that a child is not eligible for AFDC-FC, as specified, and that the initiation of such payment shall not be dependent upon completion of any application. Further states that, to the extent that an application or related information is required, as specified, the county shall complete the application or supply necessary information on behalf of the relative caregiver. 11)Permits an approved relative caregiver to receive payments on behalf of a child, as specified, regardless of whether the child resides outside the county of jurisdiction pursuant to his or her placement. Further requires the county of jurisdiction to be responsible for providing the ARC payment to the relative caregiver. 12)Requires an infant supplement for a child, as specified, to be included in the provider rate when that child is living with a parent who receives ARC benefits. 13)States that an ARC program relative or CalWORKs relative may be designated as a whole family foster home. 14)States that, if aid is paid on behalf of a child whose parent or guardian is receiving reunification services, the county welfare department shall determine whether referral of the case to the local child support agency is in the best interest of the child, as specified. 15)Requires the county to screen every youth who is in foster care and who has been determined to be ineligible for AFDC-FC benefits for Supplemental Security Income (SSI) program eligibility, as specified. Further requires the county to submit an SSI application to the federal Social Security Administration (SSA) on behalf of a youth who is determined through screening to be likely eligible for benefits. AB 423 Page 4 16)Stipulates that no continuous appropriation, as specified, shall be made from the General Fund to counties in order to implement this act. EXISTING LAW: 1)States that the purpose of foster care law is to provide maximum safety and protection for children who are being physically, sexually or emotionally abused, neglected, or exploited and to ensure the safety, protection, and physical and emotional well-being of children at risk of such harm. (WIC 300.2) 2)Declares the intent of the Legislature to, whenever possible: preserve and strengthen a child's family ties, reunify a foster child with his or her relatives, or when family reunification is not possible or likely, to develop a permanent alternative. Further states the intent of the Legislature to reaffirm its commitment to children who are in out-of-home placement to live in the least restrictive, most family-like setting and as close to the child's family as possible, as specified. (WIC 16000) 3)Requires out-of-home placement of a child in foster care to be based upon selection of a safe setting that is the least restrictive or most family-like and the most appropriate setting available and in close proximity to the parent's home, the child's school, and best suited to meet the child's special needs and best interests. Further requires the selection of placement to consider, in order of priority, placement with relatives, nonrelated extended family members, tribal members, and foster family homes, certified homes of foster family agencies, intensive treatment or multidimensional treatment foster care homes, group care placements, such as group homes and community treatment facilities, and residential treatment, as specified. (WIC AB 423 Page 5 16501.1(c)(1)) 4)Establishes AFDC-FC as aid provided on behalf of needy children in foster care, and specifies eligibility requirements. (WIC 11400 and 11402) 5)Requires the county welfare department, immediately following the placement of a child into the home of a relative or nonrelative extended family member, to evaluate and approve or deny the home for purposes of AFDC-FC eligibility, as specified. (WIC 309(d)(2) and 361.45(b)) 6)Establishes the ARC program as an optional program for counties for the purpose of making the amount paid to approved relative caregivers to care for non-federally-eligible children equal to the amount paid on behalf of children who are eligible. (WIC 11461.3) 7)Establishes in federal law the Temporary Assistance for Needy Families (TANF) program, which provides block grants to states to develop and implement their own state welfare-to-work programs designed to provide cash assistance and other supports and services to low-income families. (42 USC § 601 et seq.) 8)Establishes the state's TANF program, the California Work Opportunity and Responsibility to Kids (CalWORKs) program, which provides cash assistance and other supports and services to low-income families and is administered by the counties. (WIC 11200 et seq.) AB 423 Page 6 9)Establishes the State Supplementary Program for Aged, Blind and Disabled, which is intended to supplement SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. (WIC 12000 et seq.) 10)Provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.) 11)Defines "whole family foster home" to mean a new or existing family home that provides foster care for a minor or nonminor dependent parent and his or her child, and is specifically recruited and trained to assist the parenting foster youth in the development of the skills necessary to provide a safe, stable, and permanent home for his or her child, as specified. (WIC 11400) 12)Requires the AFDC-FC or Kinship Guardianship Assistance Payment (Kin-GAP) Program rate paid to a provider on behalf of a youth who has a child living with him or her to include an amount for care and supervision of that youth's child. (WIC 11465(a)) 13)Establishes guidelines for child support payment collection for CalWORKs participants and sanctions for failure to comply with reporting requirements, as specified. (WIC 11477.02) FISCAL EFFECT: Unknown COMMENTS: AB 423 Page 7 Relative caregivers: When a child must be removed from his or her home, placement with a relative is often favored. Like other foster care providers, relative caregivers are eligible to receive certain benefits on behalf of children in order to provide for their support; however, eligibility rules can differ for relatives in comparison to nonrelatives. For all caregivers, eligibility for federal AFDC-FC benefits is maintained at the 1996 level, meaning that the family from which a child was removed had to be earning an income under the maximum amount allowable to receive AFDC in 1996 at the time the child was removed. For a family of three, that maximum monthly amount is $723. Approximately 56% of foster youth are not eligible for federal benefits. For nonrelative caregivers providing care for a child who does not meet federal income limits, there is a state-only AFDC-FC option available, with rates equal to those of the federal program. This option is not available to relative caregivers, however. Non-federally-eligible relative caregivers can instead apply for CalWORKs for the child, which offers a benefit significantly lower than that provided through the basic federal or state-funded foster care rate (e.g., the 2014 basic foster care rate for a 12-year-old is $800, while the CalWORKs maximum aid payment for that child is $369 in a high-cost county). SB 855 (Committee on Budget and Fiscal Review), Chapter 29, Statutes of 2014, established the Approved Relative Caregiver Funding Option (ARC) Program to use state funds to provide the basic foster care payment to foster children placed in the homes of relatives. The ARC program is optional for counties, and 35 counties have opted in thus far. The ARC program does not provide certain components included in AFDC-FC foster care benefits. These included specialized care increments for youth with special needs and an infant supplement AB 423 Page 8 for parenting foster youth. Need for this bill: According to the author, "Foster children are some of the most vulnerable in our state. It is vitally important that we do everything we can to help them succeed. This includes funding for caregivers, support services, and an expanded safety net for older children as they transition out of the foster care system. The ARC program is an important step forward in making sure that relative caregivers are given the same funding as nonrelatives, but not all counties have opted into the program. In counties that don't opt in, those children who do not qualify for federal foster care benefits are still eligible to receive CalWORKs but often their relative caregivers do not understand how to navigate the system in order to ensure the benefits these children are entitled to. [This bill] clarifies procedures and application requirements for counties that opt into the ARC program, as well requiring counties that do not opt into the program to screen foster children in relative placements to see if they qualify for CalWORKs funding." PRIOR LEGISLATION: AB 1882 (Cooley), 2014, was similar to this bill. It died in the Senate Appropriations Committee. SB 855 (Committee on Budget and Fiscal Review), Chapter 29, Statutes of 2014, among other things, established the ARC program. REGISTERED SUPPORT / OPPOSITION: Support California Communities United Institute Children Now California Youth Connection (CYC) AB 423 Page 9 Opposition None on file. Analysis Prepared by: Daphne Hunt / HUM. 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