BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 423


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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          423 (Cooley) - As Amended April 23, 2015


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          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:  










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          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.










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          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.









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          *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.










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            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:










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             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