BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 423


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          ASSEMBLY THIRD READING


          AB  
          423 (Cooley)


          As Amended  May 28, 2015


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes |Ayes                |Noes                 |
          |                |      |                    |                     |
          |                |      |                    |                     |
          |----------------+------+--------------------+---------------------|
          |Human Services  |7-0   |Chu, Mayes,         |                     |
          |                |      |Calderon, Lopez,    |                     |
          |                |      |Maienschein,        |                     |
          |                |      |                    |                     |
          |                |      |                    |                     |
          |                |      |Mark Stone,         |                     |
          |                |      |Thurmond            |                     |
          |                |      |                    |                     |
          |----------------+------+--------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                     |
          |                |      |Bonta, Calderon,    |                     |
          |                |      |Chang, Daly,        |                     |
          |                |      |Eggman, Gallagher,  |                     |
          |                |      |                    |                     |
          |                |      |                    |                     |
          |                |      |Eduardo Garcia,     |                     |
          |                |      |Gordon, Holden,     |                     |
          |                |      |Jones, Quirk,       |                     |
          |                |      |Rendon, Wagner,     |                     |
          |                |      |Weber, Wood         |                     |
          |                |      |                    |                     |








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          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  
            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 CalWORKs benefits for the  
            child shall be the date the child was placed with the relative.










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          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  
            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  








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            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.


          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)Establishes AFDC-FC as aid provided on behalf of needy children  
            in foster care, and specifies eligibility requirements.   








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            (Welfare and Institutions Code (WIC) Sections 11400 and 11402)


          2)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 Sections 309(d)(2) and 361.45(b))


          3)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  
            Section 11461.3)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill will result in:


          1)Potentially major ongoing state costs (General Fund (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 CalWORKs payments  
            due to mandating eligibility for aid from the date of placement.  
             


          3)Potentially significant ongoing state costs for county welfare  
            departments (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  








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            minutes of social worker time.  As existing law requires  
            counties to screen for SSI for foster youth between the age of  
            16.5 and 17.5 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.


          *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:


          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.









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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 (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 (Budget and Fiscal Review Committee), 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  
          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  








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          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." 




          Analysis Prepared by:                                               
                          Daphne Hunt / HUM. S. / (916) 319-2089  FN:  
          0000792