BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 423
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          |Author:   |Cooley                                                |
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          |Version:  |May 28, 2015           |Hearing    |July 14, 2015    |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sara Rogers                                           |
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                      Subject:  CalWORKs:  relative caregivers


            SUMMARY
          
          This bill requires a county, immediately following the placement  
          of a child in the home of a relative, to initiate an application  
          for CalWORKs in order to ensure that the child receives funding  
          while eligibility determinations for other foster care benefits  
          are pending. It also provides that, if the child is found to be  
          ineligible for federal foster care payments, the county shall  
          determine eligibility for the Approved Relative Caregiver  
          Funding Option Program if the county has opted into the program.  
          The bill also 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.


            ABSTRACT
          
          Existing law:

          1) Establishes a juvenile court's jurisdiction over a child who  
            has suffered, or is at substantial risk of suffering, serious  
            physical harm inflicted non-accidentally upon the child by the  
            child's parent or guardian. (WIC 300) 


          2) Establishes multiple programs of support for dependent or  







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            former dependent children and the families that care for them.  
            Each of the federally reimbursed programs has a corollary  
            state-only funded program for children who are not eligible  
            under Aid to Families with Dependent Children (AFDC) income  
            eligibility criteria from 1996. These include:


                     Aid to Families with Dependent Children-Foster Care   
                 (AFDC-FC), (WIC 11401)
                     Kinship Guardianship Assistance Payment Program  
                 (Kin-GAP), (WIC 11360; WIC 11385)
                     Adoption Assistance Program, (WIC 16115)
                     Non Relative Legal Guardianship (WIC 11405)
                     CalWORKs (for children who are ineligible for  
                 federal IV-E funding in foster care and residing with  
                 relatives). (WIC 11250)


          1) Establishes the Approved Relative Caregiver Funding Option  
            program to provide counties with the option of making the  
            amount paid to approved relative caregivers caring for  
            non-federally eligible children equal to the amount paid on  
            behalf of children who are federally eligible. (WIC 11461.3) 


          2)Provides that the following funding shall be used for the  
            Approved Relative Caregiver Funding Option Program:


               a.     The applicable regional per-child CalWORKs grant.
               b.     Appropriated general fund resources.
               c.     County funds. only to the extent required.(WIC  
                 11461.3)

          3) Requires that a child who cannot be left in the home of a  
            parent or guardian be placed by a county social worker in a  
            foster home, with priority going to a relative of the child or  
            nonrelative extended family member. (WIC 309) 


          4)Requires that immediately following the placement of a child  
            who has been temporarily detained into the home of a relative  
            or a nonrelative extended family member, the county welfare  
            department must evaluate and approve or deny the home for  








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            purposes of AFDC-FC benefit eligibility. (WIC 309 (d)(2)) 


          This bill:

          1)States legislative findings that relative placements are the  
            most utilized type of foster placement in California and that  
            by establishing the Approved Relative Caregiver Funding Option  
            Program, the Legislature intends 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 placements.


          2)Requires a county, immediately following the placement of a  
            child in the home of a relative, to initiate an application  
            for CalWORKs in order to ensure that the child receives  
            funding while eligibility determinations are pending for other  
            benefits. Provides that if the relative caregiver is also  
            needy, the relative caregiver shall be responsible for  
            applying for CalWORKs benefits to cover his or her own needs.


          3)Requires a county welfare department to concurrently initiate  
            an application for CalWORKs, initiate the application for  
            AFDC-FC, and evaluate the home for AFDC-FC eligibility. 


          4)If the child is found to be ineligible for AFDC-FC, requires  
            the county to initiate and complete the application for, and  
            determine eligibility for, the Approved Relative Caregiver  
            Funding Option Program, if the child is placed with a relative  
            and the county has opted into the program.


          5)Requires that if a county determines that the child is not  
            eligible for AFDC-FC benefits, the county welfare department  
            shall explain the specific basis for this determination and  
            screen the child for eligibility for the federal Supplemental  
            Security Income program, as specified.


          6)Provides that a minor or nonminor foster youth who has been  
            placed in the home of a relative caregiver and who is a teen  








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            parent with a child living in the same home or placement,  
            shall receive an infant supplement, as specified.


          7)Requires that receipt of Approved Relative Caregiver 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,  
            the county shall complete the application or supply necessary  
            information on behalf of the relative caregiver. 


          8)Permits an approved relative caregiver to receive payments on  
            behalf of a child, regardless of whether the child is placed  
            outside the county of jurisdiction. Further requires the  
            county of jurisdiction to be responsible for providing the  
            Approved Relative Caregiver payment.


          9)Requires an infant supplement for a child to be included in  
            the provider rate when that child is living with a parent who  
            receives Approved Relative Caregiver benefits. 


          10)States that an Approved Relative Caregiver or CalWORKs  
            relative may be designated as a whole family foster home. 


          11)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. 


          12)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 on behalf of a youth who is determined through  
            screening to be likely eligible for benefits. 








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          13)Stipulates that no continuous appropriation, as specified,  
            shall be made from the General Fund to counties in order to  
            implement this act. 


          14)Currently does not incorporate chaptering language from SB 79  
            (Senate Committee on Budget,  Chapter 20, Statutes of 2015)


            FISCAL IMPACT
          
          An Assembly Appropriations analysis states that this bill incurs  
          the following potentially significant ongoing costs:


           State GF costs (due to Proposition 30) for counties to  
            immediately initiate applications and determine eligibility  
            for AFDC-FC, CalWORKs, or ARC program benefits for foster  
            children placed with relative caregivers. 


           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. 


           State costs for county welfare departments to provide an  
            explanation of the eligibility requirements and benefit  
            amounts of programs to relative caregivers. Assuming 30  
            minutes of social worker time for 8,500 relative placements,  
            it would cost about $325,000 (GF). 


           State costs of about $235,000 (GF) for county welfare  
            departments 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. 









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           State costs of about $250,000 (GF) to provide the infant  
            supplement of $411 per month to an estimated 50 cases  
            statewide. 


            BACKGROUND AND DISCUSSION
          
          Purpose of the 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. 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." 


           Assistance for foster children 

          State statute establishes multiple programs to support children  
          in foster care, including AFDC-FC, Kin-GAP, adoption assistance  
          and payments to non-relative legal guardians. However, income  
          eligibility requirements for the AFDC-FC program are frozen at  
          the 1996 AFDC standards - meaning that in order for a child to  
          be eligible for federal AFDC-FC funding, he or she must have  
          been removed from a family that has a monthly income of below  
          $734, regardless of the income of the family member who is now  
          caring for the foster child. As a result, the proportion of  
          federally eligible foster youth is declining over time, shifting  
          the cost of the program to state-only funding, and increasing  
          the numbers of relative caregivers who are ineligible for  
          federal funding.










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          For a federally-eligible foster youth placed with a relative,  
          the federally-funded payment averages approximately $923 per  
          month. Current statute allows a child who does not meet federal  
          AFDC-FC eligibility criteria and is cared for by a nonrelative  
          to receive a state-only foster care payment equal to the federal  
          AFDC-FC payment. This practice is consistent across the various  
          types of foster care placements, except for when a child is  
          placed with a relative. A basic foster care rate for a  
          12-year-old is $800. In California, families caring for  
          relatives who are ineligible for AFDC-FC federal payments are  
          paid through the CalWORKs program, with the child receiving a  
          single benefit allocation of approximately $369 per month in a  
          high-cost county). 


          In response to this payment inequity and the impact it has on  
          the ability of relatives to care for children in the foster care  
          system, SB 855 (Committee on Budget and Fiscal Review, Chapter  
          29, Statutes of 2014) created the Approved Relative Caregiver  
          Funding Option Program, allowing counties to pay approved  
          relative caregivers the same amount paid on behalf of children  
          who are eligible for foster care payments.  


          This year's Human Services trailer bill included additional  
          clean up language that sought to increase federal participation  
          and streamline eligibility processes for families, including the  
          following provisions:

                 If the approved relative caregiver is needy, his or her  
               assistance unit size will include the number of Approved  
               Relative Caregiver children, or non-minor dependents, for  
               purposes of determining program income and eligibility of  
               the CalWORKs assistance unit only, however for purposes of  
               calculating the grant amount foster children are excluded.
                 Overpayments will be collected pursuant to existing  
               foster care program requirements.
                 The county with court jurisdiction of the child has  
               payment responsibly for Approved Relative Caregiver  
               children.
                 An approved relative caregiver is exempt from Statewide  
               Fingerprint Imaging Systems, reporting, immunization, and  
               other CalWORKs requirements.
                 Creation of an annual increase for the caregiver, as  








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               specified, to ensure that the caregiver payments get a full  
               California Necessities Index (CNI) adjustment.

          Relative caregivers

          A county's first priority for placement is in the home of a  
          relative, unless the placement would not be in the best  
          interests of the child. Caseworkers are required to make  
          diligent efforts to locate relatives, but if a relative is not  
          immediately found a child may be placed in a licensed or  
          certified foster home. Although "relative" for purposes of  
          preferential consideration is limited to grandparents, siblings,  
          aunts or uncles, the statutory definition of "relative" is  
          broad, based on a 5th degree of separation standard. This means  
          that placement within this broader network of relatives may  
          cause the child to receive far less aid and other services than  
          if they were placed in a stranger's home. 


          Nearly one-third of the nearly 63,000 non-probation foster youth  
          are placed with relatives, most of them with non-guardian  
          relatives. Another 123 probation foster youth, of the nearly  
          4,000, are placed with relatives.  Children who have medical or  
          mental health needs, parenting youth, or youth on probation are  
          the least likely to find permanent homes and instead are more  
          likely to remain in "long term foster care" in residential  
          placements (such as a group home). Outcomes data collected by  
          CDSS shows that nearly 10 percent of non-probation foster youth  
          and 15 percent of probation youth age out of the systems without  
          a "permanent connection." For these youth, recruiting and  
          supporting relative caregivers is a key to a successful  
          transition to adulthood. However, without sufficient financial  
          support and services these distant relatives are often unable to  
          care for the youth. The Approved Relative Caregiver Funding  
          Option program, which all but 15 counties have opted in to,  
          equalizes the financial aid payments for these families, though  
          many other services and supports remain unavailable to them.


          Under both state and federal law, relative and non-relative  
          caregivers are required to be approved by the caseworker using  
          specific standards, including a Department of Justice background  
          check. This process can be lengthy. Beginning in 2017, the  
          resource family approval process for foster families will  








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          simplify this process, although there may still be delays for a  
          few caregivers. 


          Prior Legislation:


          AB 1882 (Cooley, 2014) was similar to this bill. It was held on  
          Senate Appropriations Committee's Suspense File. 


          SB 855 (Committee on Budget and Fiscal Review, Chapter 29,  
          Statutes of 2014) among other things, established the ARC  
          Funding Option program. 








            COMMENTS
          
          Following extensive negotiations with the County Welfare  
          Directors Association of California and CDSS, the author  
          proposes several amendments to this bill. Currently this bill  
          requires counties who have opted into the Approved Relative  
          Caregiver (ARC) program to provide ARC payments immediately upon  
          a determination that a child is not federally eligible for  
          foster care payments, even if the family has not yet been  
          formally approved as a relative caregiver. The relative  
          caregiver process involves a more thorough background clearance  
          than is required for initial relative placement. Due to backlogs  
          at the court level in entering arrest disposition and other  
          information, some criminal record clearances can take months or  
          longer. Instead of initiating ARC payments prior to approval,  
          the author proposes to amend the bill to instead ensure that  
          families are quickly enrolled in CalWORKs pending the formal  
          caregiver approval. The author also intends to limit to 120  
          days, the length of time that an approved Relative Caregiver  
          must wait to receive payments while a criminal record clearance  
          is pending.









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          For the 15 counties that have not opted into the Approved  
          Relative Caregiver program, the process to apply for CalWORKs is  
          simplified and made automatic. The current process for relative  
          caregivers to receive CalWORKs requires a full application  
          process, including documenting employment and income information  
          that is not relevant to being paid as a foster caregiver. As  
          proposed to be amended, this bill would require non-ARC counties  
          to utilize a streamlined CalWORKs application.  


          The specific amendments proposed by the author are as follows:
          
          Amendment 1:  Page 5, line 10:  
               
           (d) (2) (A) Immediately following the placement of a child in  
          the home of a relative, the county shall initiate an application  
          for CalWORKs pursuant to Article 2 (commencing with Section  
          11250) on behalf of the child in order to ensure that the child  
          receives funding while eligibility determinations for other  
          benefits are pending.  The county shall utilize the shortened  
          CalWORKs application and simplified CalWORKs eligibility  
          standards that pertain to determining a foster child's CalWORKs  
          eligibility for the Approved Relative Caregiver Funding Option  
          Program pursuant to Sections 11253.5 and 11461.3. The  
          application date for CalWORKs and the beginning date of aid  
          shall be the date the child was placed with the relative.   If  
          the relative caregiver is also needy, the relative caregiver  
          shall be responsible for applying for CalWORKs benefits to cover  
          his or her own needs.   


           Amendment 2:  Page 5, line 22:  Insert the following at the end  
          of the paragraph:


          (B) Concurrently with initiating the application for CalWORKs  
          pursuant to this paragraph, the county welfare department shall  
          also evaluate and approve or deny the home for purposes of  
          AFDC-FC eligibility pursuant to Section 11402. The placing  
          agency shall initiate the application for AFDC-FC and determine  
          eligibility. If the child is found to be ineligible for AFDC-FC,  
          the county shall initiate and complete the application for, and  
          determine eligibility for, the Approved Relative Caregiver  








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          Funding Option Program if the child is placed with a relative  
          and the county has opted into the program pursuant to Section  
          11461.3.  If an application was submitted for purposes of  
          determining CalWORKs eligibility pursuant to subparagraph (A)  
          that contains all necessary information to determine eligibility  
          for the Approved Relative Caregiver Funding Option Program, a  
          new application need not be initiated for purposes of complying  
          with this subparagraph. The beginning date of aid for the  
          Approved Relative Caregiver funding shall be either the date of  
          placement or the date of approval of the home pursuant to  
          Section 309(d)(2), whichever is later, and shall be no later  
          than 30 days after the date of placement, unless the county  
          documents the need for additional time to complete the home  
          approval process because of a need to obtain additional records  
          or documentation to determine whether a criminal conviction can  
          be waived, or similar circumstances. If additional time is  
          necessary, the beginning date of aid for the Approved Relative  
          Caregiver Funding Option Program shall be the date of approval  
          but funding must commence no later than 120 days after the date  
          of placement  .  If the child is transferring from CalWORKs to ARC  
          but remains in the home of the same related caregiver, the  
          effective date of program transfer is the first month following  
          the request for change of program.  
           
          Amendment 3:  Page 5, line 29 - 30:  


          (C) If the county determines that the child is not eligible for  
          AFDC-FC benefits, the county welfare department shall explain  
          the specific basis for this determination and shall screen the  
          child for eligibility for the federal Supplemental Security  
          Income program in accordance with Section 13758  .  The application  
          date for CalWORKs for the child shall be the date the child was  
          placed with the relative  .  

          Amendment 4:  Page 9, line 1:  After "pending" add the  
          following:


           The county shall utilize the shortened CalWORKs application and  
              simplified CalWORKs eligibility standards that pertain to  
          determining a foster child's CalWORKs eligibility for the  
          Approved Relative Caregiver Funding Option Program pursuant to  
          Sections 11253.5 and 11461.3. The application date for CalWORKs  








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          and the beginning date of aid shall be the date the child was  
          placed with the relative.  If the relative caregiver is also  
          needy, the relative caregiver shall be responsible for applying  
          for CalWORKs benefits to cover his or her own needs.   


           Amendment 5:  Page 9, line 13:  Insert the following at the end  
          of the paragraph:


           If an application was submitted for purposes of determining  
          CalWORKs eligibility pursuant to subparagraph (A) that contains  
          all necessary information to determine eligibility for the  
          Approved Relative Caregiver Funding Option Program, a new  
          application need not be initiated for purposes of complying with  
          this subparagraph. The beginning date of aid for the Approved  
          Relative Caregiver funding shall be either the date of placement  
          or the date of approval of the home pursuant to Section  
          309(d)(2), whichever is later, and shall be no later than 30  
          days after the date of placement, unless the county documents  
          the need for additional time to complete the home approval  
          process because of a need to obtain additional records or  
          documentation to determine whether a criminal conviction can be  
          waived, or similar circumstances.  If additional time is  
          necessary, the beginning date of aid for the Approved Relative  
          Caregiver Funding Option Program shall be the date of approval  
          but funding must commence no later than 120 days after the date  
          of placement.  


           Amendment 6:  Page 9, line 20 - 21:  Strike the line beginning  
          with "CalWORKs" and ending with "relative" as follows:


          (C) If the county determines that the child is not eligible for  
          AFDC-FC benefits, the county welfare department shall explain  
          the specific basis for this determination and shall screen the  
          child for eligibility for the federal Supplemental Security  
          Income program in accordance with Section 13758.   The application  
          date for CalWORKs for the child shall be the date the child was  
          placed with the relative  .  


          Amendment 7:  Page 22, lines 30 - 38:  Amend subsection (e) (4)  








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          as follows: 


          (e) (4) Receipt of funding through the Approved Relative  
          Caregiver Funding Option Program shall begin immediately upon a  
          finding that the child is not eligible for AFDC-FC pursuant to  
          subdivision (a) of Section 11404  and   approval of the home  
          consistent with the timelines included in subdivision (B) of  
          section 309.   and initiation of payment shall not be dependent  
          upon completion of any application  .  To the extent that an  
          application or other information is required to determine county  
          share of costs or for the utilization of CalWORKs funding, the  
          county shall complete that application, or provide that  
          information, on behalf of the relative caregiver  to the extent  
          possible prior to requesting information from the relative  
          caregiver. If an application was submitted for purposes of  
          determining CalWORKs eligibility pursuant to section 309(d)  
          (2)(A) or 361.45(b)(1)  that contains all necessary information  
          to determine eligibility for the Approved Relative Caregiver  
          Funding Option Program, a new application need not be initiated.

           Amendment 8:  Page 27, line 31:  Add a new sentence at the end  
          of the paragraph to read:

          (a)? developed pursuant to Section 13752.   The screening shall  
            occur no later than 120 days after the child is placed or upon  
            concluding that the child is not eligible for AFDC-FC  
            benefits, whichever is later.   

            PRIOR VOTES
          
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          |Assembly Floor:                                            |78 - |
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          |Assembly Appropriations Committee:                         |17 - |
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          |Assembly Human Services Committee:                         |7 -  |
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            POSITIONS








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          Support:
               Alliance for Children's Rights
               California Alliance of Child and Family Services
               California Communities United
               California Department of Social Services
               California Youth Connection
               Children's Advocacy Institute
               Children's Law Center
               Children Now
               Dependency Legal Group of San Diego
               Hillsides
               Lilliput Children's Services
               OC Kinship & Support Org.
               Public Counsel's Children's Rights Project
               
          Oppose:
               None received.
                                      -- END --