BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 423 (Cooley) - CalWORKs:  relative caregivers
          
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          |Version: July 16, 2015          |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 17, 2015   |Consultant: Jolie Onodera       |
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          This bill meets the criteria for referral to the Suspense File.




          Bill  
          Summary:  AB 423 would require a county welfare department (CWD)  
          to immediately initiate specified application, eligibility  
          determinations, and screenings of a foster child upon placement  
          in the home of a relative. This bill would also require an  
          infant supplement, as specified, to be paid under the CalWORKs  
          and the Approved Relative Caregiver Funding Option (ARC) Program  
          to a teen parent who is placed with his or her child in the home  
          of a relative caregiver, as specified. This bill would also  
          revise the provisions of the ARC Program, as specified.


          Fiscal  
          Impact:  
           Potentially major ongoing state costs (General Fund*) to  
            immediately initiate applications and determine eligibility  
            for AFDC-FC, CalWORKs, and ARC program benefits for foster  
            children placed with relative caregivers. 







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           Ongoing potentially major increase in AFDC-FC, CalWORKs, and  
            ARC payments due to provision mandating eligibility for aid  
            from the date of placement with the relative. Every one  
            additional month of aid for 8,500 relative placements could  
            cost in the range of $2.9 million to $7.3 million (General  
            Fund*) depending on whether the county has opted into the ARC  
            Program. 
           Potentially significant ongoing state costs for CWDs to  
            provide an explanation in-person or by telephone 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  
            (General Fund*). 
           Potentially significant ongoing state costs of about $250,000  
            (General Fund*) 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. 
           Potentially significant ongoing state costs of about $250,000  
            (General Fund*) 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.


          Background:  Existing law requires each county to provide cash assistance  
          and other social services through the California Work  
          Opportunity and Responsibility to Kids (CalWORKs) program using  
          federal Temporary Assistance for Needy Families (TANF) block  
          grant funds, state, and county funds. Existing law specifies the  
          amounts of cash aid and supplemental amounts to be paid each  
          month to CalWORKs recipients. 
          Existing law establishes the Aid to Families with Dependent  
          Children-Foster Care (AFDC-FC) program under which counties  
          provide payments to foster care providers on behalf of qualified  
          children. Under existing law, a child is eligible for AFDC-FC if  
          he or she is placed in the approved home of a relative and is  








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          otherwise eligible for federal financial participation in the  
          AFDC-FC payment, as specified. Under existing law, if a county  
          welfare department places a child who is in temporary custody or  
          subject to the jurisdiction of the juvenile court with a  
          relative or NREFM, the county is required to evaluate and  
          approve or deny the home for purposes of AFDC-FC eligibility. 

          Existing law enacted by SB 855 (Committee on Budget and Fiscal  
          Review) Chapter 29/2014, the Human Services budget trailer bill,  
          among other provisions, established the ARC Program, and  
          appropriates no less than $30 million annually from the General  
          Fund for this program. This program requires counties that opt  
          to participate in the program to pay an approved relative  
          caregiver a per child per month rate in return for the care and  
          supervision of an AFDC-FC ineligible child placed with the  
          relative caregiver that is equal to the basic rate paid to  
          foster care providers for an AFDC-FC child.


          Proposed Law:  
           This bill would require a CWD to immediately initiate specified  
          application, eligibility determinations, and screenings of a  
          foster child upon placement in the home of a relative caregiver,  
          as follows: 
                 Requires a county to immediately initiate the  
               application for CalWORKs utilizing the shortened CalWORKs  
               application and simplified eligibility standards that  
               pertain to determining a foster child's eligibility.  
               Specifies that the beginning date of aid shall be the date  
               the child was placed with the relative.


                 Requires that concurrently with initiating the CalWORKs  
               application, the CWD to evaluate and approve or deny  
               AFDC-FC eligibility. 


                 If found ineligible for AFDC-FC, requires the CWD to  
               initiate the application for and determine eligibility for  
               ARC, if applicable. Specifies that if an application was  
               submitted for CalWORKs eligibility containing all necessary  
               information to determine eligibility for ARC, no new  
               application is required. 









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                 Specifies the beginning date of aid for the ARC Program,  
               as specified.


                 If found ineligible for AFDC-FC, requires the CWD to  
               explain the specific basis for this determination and shall  
               screen the child for eligibility for SSI/SSP. 


                 Requires county social workers or eligibility workers to  
               explain, in person or by telephone, the eligibility  
               requirements and benefit amounts for the AFDC-FC, CalWORKs,  
               and ARC programs, as well as any actions the relative could  
               take to affect the child's eligibility for those programs. 


                 Requires all youth in foster care who have been  
               determined federally ineligible to be screened by the CWD  
               for potential eligibility for SSI/SSP, as specified. 


                 Requires an infant supplement, as specified, to be paid  
               under the CalWORKs and ARC programs to a teen parent who is  
               placed with his or her child in the home of a relative  
               caregiver, as specified.


                 Includes codified legislative intent language stating,  
               "The Legislature recognizes the importance of approved  
               relative caregivers to the state's child welfare system.  
               Relative placements are the most utilized type of foster  
               placement in California. In establishing the Approved  
               Relative Caregiver Funding Option Program pursuant to this  
               section, 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."


                 Requires receipt of funding through the ARC Program to  
               begin immediately upon a finding that a child is ineligible  
               for AFDC-FC and approval of the home, as specified.  
               Requires the county to complete the application, to the  








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               extent an application or other information is required.




          Prior  
          Legislation:  AB 1882 (Cooley) 2014 was similar to this measure  
          and would have required a CWD to immediately initiate specified  
          application, eligibility determinations, and screenings of a  
          foster child upon placement in the home of a relative or  
          nonrelative extended family member. This bill would have also  
          required an infant supplement, as specified, to be paid under  
          the CalWORKs and the ARC Program to a teen parent who is placed  
          with his or her child in the home of a relative caregiver, as  
          specified. This bill was held on the Suspense File of this  
          Committee.
          SB 855 (Committee on Budget and Fiscal Review) Chapter 29/2014,  
          the Human Services budget trailer bill, among other provisions,  
          established the ARC Program, and appropriates no less than $30  
          million annually from the General Fund for this program. This  
          program requires counties that opt to participate in the program  
          to, effective January 1, 2015, pay an approved relative  
          caregiver a per child per month rate in return for the care and  
          supervision of an AFDC-FC ineligible child placed with the  
          relative caregiver that is equal to the basic rate paid to  
          foster care providers for an AFDC-FC child.




          Staff  
          Comments:  By requiring county welfare departments to  
          immediately initiate specified application, eligibility  
          determinations, and screenings of a foster child upon placement  
          in the home of a relative caregiver, this bill imposes a  
          state-mandated local program due to the higher level of service  
          mandated on CWDs, potentially requiring a subvention of funds  
          from the state. Although CWDs do initiate and determine  
          eligibility for programs, existing law does not specify  
          immediate initiation of applications and determinations of  
          eligibility for CalWORKs concurrently with AFDC-FC, or require  
          an explanation of the specific basis for the determination  
          followed by a screening for SSI of these cases. 
          This bill requires CWDs to screen youth for SSI eligibility upon  








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          determination of ineligibility for AFDC-FC. Assuming 30 minutes  
          of social worker time per screening, ongoing state costs of  
          about $250,000 (General Fund*) are estimated. As existing law  
          requires counties to screen for SSI for foster youth between the  
          ages of 16 and 17 years, the costs noted above do not include  
          inclusion of this age group. 

          Additionally, requiring CWDs to provide an explanation in-person  
          or by telephone of the eligibility requirements and benefit  
          amounts of the AFDC-FC, CalWORKs, and ARC programs to relative  
          caregivers will result in additional workload to CWDs. Assuming  
          30 minutes per explanation for 8,500 relative placements would  
          cost about $325,000 (General Fund*) annually. To the extent  
          additional time is required for eligibility workers to provide  
          further information to caregivers would result in additional  
          ongoing costs. 

          By mandating eligibility for aid from the date of placement with  
          the relative, this bill could result in the receipt of aid  
          earlier and for additional months for about 8,500 relative  
          placements. For every one additional month of aid provided,  
          ongoing costs could range from $2.9 million to $7.3 million,  
          depending on the program (CalWORKs vs. AFDC-FC or ARC). 

          This bill also requires the provision of the infant supplement  
          to be paid in the CalWORKs and ARC programs to a teen parent who  
          is placed with his or her child in the home of a relative  
          caregiver, as specified. This provision is estimated to result  
          in annual costs of about $250,000 (General Fund*) to provide the  
          infant supplement of $411 per month to an estimated 50 cases  
          statewide. 

          Prior to FY 2011-12, the state and counties contributed to the  
          non-federal share of child welfare services expenditures. AB 118  
          (Committee on Budget) Chapter 40/2011 and ABX1 16 Chapter  
          13/2011 realigned state funding to the counties through the 2011  
          Local Revenue Fund (LRF) for various programs, including child  
          welfare services and foster care. As a result, beginning in FY  
          2011-12 and for each fiscal year thereafter, non-federal funding  
          and expenditures for foster care and child welfare services  
          activities are funded through the LRF. 

          Proposition 30 was passed by the voters in November 2012, and  
          among other provisions, eliminated any potential mandate funding  








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          liability for any new program or higher level of service  
          mandated on the counties related to realigned programs,  
          including child welfare services and foster care. Rather,  
          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  
          only apply to local agencies to the extent that the state  
          provides annual funding for the cost increase. Local agencies  
          are not obligated to provide programs or levels of service  
          required by legislation above the level for which funding has  
          been provided. 

          To the extent it is determined that the provisions of this bill  
          impose a higher level of service on local agencies or result in  
          an increase in overall costs already borne by counties for the  
          provision of child welfare services and foster care, the state  
          could potentially elect to, but not be required to, provide  
          funding for the cost increase.


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