BILL ANALYSIS Ó AB 423 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 423 (Cooley) - As Amended April 23, 2015 ----------------------------------------------------------------- |Policy |Human Services |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill 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: AB 423 Page 2 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. 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. 3)Requires counties, in cases where a child is found to be ineligible for AFDC-FC, to initiate and complete an application and determine eligibility for the Approved Relative Caregiver Funding Option (ARC) Program, where applicable. States that ARC program payments shall begin immediately upon determination that a child is not eligible for AFDC-FC. 4)States that the application date for AFDC-FC, ARC, or CalWORKs benefits shall be the date the child was placed with the relative. 5)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, and to explain any actions the relative could take to affect the child's eligibility for those programs. 6)Entitles a teen parent who is detained or placed in the home of a relative caregiver to an infant supplement. AB 423 Page 3 7)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, and to submit an SSI application on behalf of a youth if potentially eligible. FISCAL EFFECT: 1)Potentially major ongoing state costs (GF*) to immediately initiate applications and determine eligibility for AFDC-FC, CalWORKs, or ARC program benefits for foster children placed with relative caregivers. 2)Ongoing potentially significant increase in AFDC-FC, CalWORKs, and ARC payments due to mandating eligibility for aid from the date of placement. Every one additional month of aid for 8,500 relative placements could cost in the range of $2.9 million to $7.3 million (GF*) depending on whether the county has opted into the ARC program. 3)Potentially significant ongoing state costs for CWDs to provide an explanation of the eligibility requirements and benefit amounts of the programs to relative caregivers. Assuming 30 minutes of social worker time for 8,500 relative placements would cost about $325,000 (GF*). 4)Potentially significant ongoing state costs of about $235,000 (GF*) for CWDs to screen for SSI eligibility, assuming 30 minutes of social worker time. As existing law requires counties to screen for SSI for foster youth between the age of 16 and 17 years, no additional costs are assumed for this age group. 5)Potentially significant ongoing state costs of about $250,000 (GF*) to provide the infant supplement of $411 per month to an estimated 50 cases statewide. AB 423 Page 4 *Pursuant to Proposition 30 (November 2012) any legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) only apply to local agencies to the extent that the state provides annual funding for the cost increase. COMMENTS: 1)Purpose. 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. 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." 2)Background: When a child is 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 differ for relatives in comparison to nonrelatives. AB 423 Page 5 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. 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. Established in 2014, the Approved Relative Caregiver Funding Option (ARC) Program uses 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, however, does not provide certain components included in AFDC-FC foster care benefits, including an infant supplement for parenting foster youth. 3)Prior Legislation: AB 423 Page 6 a) AB 1882 (Cooley), 2014, was similar to this bill. It was held on Senate Appropriations Committee's Suspense File. b) SB 855 (Committee on Budget and Fiscal Review), Chapter 29, Statutes of 2014, among other things, established the ARC program. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081