BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1997


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          1997 (Mark Stone)


          As Amended  May 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Human Services  |7-0  |Bonilla, Grove,       |                    |
          |                |     |Calderon, Lopez,      |                    |
          |                |     |Maienschein,          |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Mark Stone, Thurmond  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |








                                                                    AB 1997


                                                                    Page  2





           ------------------------------------------------------------------ 


          SUMMARY:  Adopts changes to further facilitate implementation of  
          Continuum of Care Reform (CCR) recommendations to better serve  
          children and youth in California's child welfare services  
          system.  Specifically, this bill:  


          1)Adopts changes regarding accreditation and licensure of Foster  
            Family Agencies (FFAs) and Short-Term Residential Treatment  
            Centers (STRTCs) in order to allow sufficient time for  
            accreditation, as specified.
          2)Adopts changes regarding Resource Family Approval (RFA):


             a)   Provides for the Department of Social Services (DSS)  
               licensure and oversight of resource families, as specified.
             b)   Requires, on and after January 1, 2017, a county to  
               approve resource families in lieu of licensing foster  
               family homes (FFHs) and approving relative and nonrelative  
               extended family members and further requires the existing  
               licensure or approval and oversight processes to continue  
               to be administered for FFHs and relatives or nonrelative  
               extended family members licensed or approved prior to  
               January 1, 2017, until the license or approval is revoked  
               or forfeited, as specified.


             c)   Provides for FFA RFA application and approval/denial  
               processes, as specified.


             d)   Defines "Resource Family Approval" to mean that the  
               applicant or resource family successfully meets the home  
               environment assessment and permanency assessment standards  
               and states that such approval is in lieu of a certification  
               of approval issued by a licensed FFA, as specified.









                                                                    AB 1997


                                                                    Page  3






             e)   Establishes that the DSS is responsible for requiring  
               FFAs to monitor resource families, as specified, and  
               further provides for specified responsibilities of FFAs  
               regarding resource families. 


             f)   Requires all certified family home and foster family  
               home applications received prior to January 1, 2017, to be  
               processed and applicable certification and oversight  
               processes to continue for foster homes certified by an FFA  
               or licensed prior to January 1, 2017, until the  
               certification, licensure, or approval is revoked or  
               forfeited, as specified. 


             g)   Stipulates that approved relatives and nonrelative  
               extended family members, licensed FFHs, or approved  
               adoptive homes that have completed the license or approval  
               process prior to statewide implementation of the RFA  
               program shall not be considered part of the program and  
               further requires the otherwise applicable assessment and  
               oversight processes to continue to be administered for  
               families and facilities not included in the program.  


             h)   Prohibits a county, upon implementation of the RFA  
               program, from accepting new applications for the licensure  
               of FFHs, the approval of relative and nonrelative extended  
               family members, or the approval of prospective guardians  
               and adoptive homes. 


             i)   Authorizes DSS to waive regulations that pose a barrier  
               to the early implementation and operation of the RFA  
               program, as specified. 


             j)   States that there is not fundamental right to approval  








                                                                    AB 1997


                                                                    Page  4





               as a resource family, and that approval as a resource  
               family does not guarantee an initial, continued, or  
               adoptive placement of a child or the establishment of legal  
               guardianship of a child with a resource family.


             aa)  Requires a county to conduct an unannounced inspection  
               of a resource family home during the annual update, as  
               specified, and to inspect resource family homes as often as  
               necessary to ensure the quality of care provided. 


             bb)    Specifies that, in addition to other placements,  
               children with varying designations and needs, developmental  
               disabilities, mental disorders, or physical disabilities  
               may be placed with a resource family, as specified. 
             cc)    States Legislative intent that public and private  
               efforts to recruit foster parents not be competitive and  
               that the total number of foster parents be increased.


             dd)    Provides for consistency and parity for all resource  
               families with basic rates to be developed by DSS and  
               requires the basic rate for resource families to be  
               annually adjusted by the change in the California  
               Necessities Index (CNI), as specified.


          3)Adopts additional changes:
             a)   Requires private Short-Term Residential Treatment  
               Centers (STRTCs) to be organized and operated on a  
               nonprofit basis and further, includes STRTCs in existing  
               statute pertaining to the monitoring and oversight of the  
               use of psychotropic medications in group homes.
             b)   Requires an out-of-state group home to have a current  
               license, or equivalent approval, in good standing issued by  
               the appropriate authority(s) in the state in which it is  
               operating in order to receive certification from DSS and  
               further, clarifies that out-of-state group homes, as with  








                                                                    AB 1997


                                                                    Page  5





               in-state group homes, may be granted an extension, as  
               specified.
             c)   Includes in the definition of "mandated reporter" an  
               individual certified by a licensed FFA as a certified  
               family home and an individual approved as a resource  
               family, as specified.
             d)   Provides for the establishment of interim, provisional,  
               and probationary rates for STRTCs and FFAs, as specified.


             e)   Specifies that, for youth 13 years old or older,  
               approval of placement in an STRTC by the chief probation  
               officer, as specified, shall take place only if the  
               placement is longer than 12 months.  


             f)   Adopts clarifying changes regarding criminal record  
               exemptions and due process rights, as specified.


             g)   Extends by one year, to January 1, 2019, the amount of  
               time that community treatment facility programs granted an  
               extension have to acquire nationally recognized  
               accreditation, as specified.  


             h)   Extends by one year, to January 1, 2019, the time until  
               current FFA rate-setting system is repealed, as specified.


             i)   Makes additional technical amendments, including changes  
               to conform to state and federal law.


          EXISTING LAW:  


          1)States that the purpose of foster care law is to provide  
            maximum safety and protection for children who are being  








                                                                    AB 1997


                                                                    Page  6





            physically, sexually or emotionally abused, neglected, or  
            exploited and to ensure the safety, protection, and physical  
            and emotional well-being of children at risk of such harm.   
            (WIC 300.2)


          2)Requires placement of a child in foster care to be based upon  
            selection of a safe setting that is the least restrictive  
            family setting that promotes normal childhood experiences and  
            the most appropriate setting that meets the child's individual  
            needs and is available, in close proximity to the parent's  
            home, the child's school, and best suited to meet the child's  
            special needs and best interests.  Further requires the  
            selection of placement to consider, in order of priority,  
            placement with relatives, nonrelated extended family members,  
            and tribal members; foster family homes, resource families,  
            and nontreatment certified homes of foster family agencies;  
            followed by treatment and intensive certified homes of foster  
            family agencies; or multidimensional treatment foster care  
            homes or therapeutic foster care homes; group care placements  
            in the order of short-term residential treatment centers,  
            group homes, community treatment facilities, and  out-of-state  
            residential treatment, as specified.  (WIC 16501.1(d)(1))


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, the Governor's 2016-17 Budget (including May  
          Revision) includes $182 million ($127 million General Fund) to  
          continue to implement Continuum of Care Reform (CCR) contained  
          in AB 403 (Stone), Chapter 773, Statutes of 2015, including all  
          of the provisions of this bill.


          COMMENTS:  


          Continuum of Care Reform:  The Legislature has worked and  
          continues to work with various entities in and around the Child  
          Welfare Services (CWS) system to focus on family reunification  








                                                                    AB 1997


                                                                    Page  7





          and permanency by seeking ways to best address the needs of  
          foster youth through less restrictive, more supportive  
          placements and services.  SB 1013 (Senate Budget and Fiscal  
          Review) Chapter 35, Statutes of 2012, realigned CWS to counties,  
          established a moratorium on the licensing of new group homes,  
          and required DSS to convene a stakeholder workgroup.  This  
          workgroup was charged with examining the use of group homes in  
          California and providing recommendations to the Legislature and  
          the Governor on how to reform this use.  In January 2015, DSS  
          submitted the CCR workgroup report to the Legislature, which  
          included general and fiscal recommendations, alongside  
          recommendations on home-based family care, residential  
          treatment, and performance measures and outcomes.  


          AB 403:  AB 403 (Stone), Chapter 773, Statutes of 2015, adopted  
          myriad changes aimed at implementing a number of recommendations  
          from the DSS CCR report.  These included establishing a sunset  
          for existing licensure, rate-setting and other provisions for  
          group homes and FFAs and establishing interim provisions.  AB  
          403 provided for licensure of STRTCs and FFAs and requires DSS  
          to develop a new payment structure for both. 


          Need for this bill:  According to the author, "[This bill]  
          builds upon comprehensive 2015 legislation that advances  
          California's long-standing goal to move away from the use of  
          long-term group home care by increasing youth placement in  
          family settings and by transforming existing group home care  
          into places where youth who are not ready to live with families  
          can receive short term, intensive treatment.  Ultimately, when  
          children enter foster care, they need a safe, comfortable, and  
          supportive place to stay, whether that is with a relative, a  
          foster family, or in a short-term center.  Recent changes to the  
          law have been designed to provide options along the continuum of  
          care spectrum to meet these needs.  The technical and policy  
          updates in this measure follow up on the new law to provide  
          youth with the support they need in foster care to return to  
          their families or to find a permanent home if returning to their  








                                                                    AB 1997


                                                                    Page  8





          families is not an option."


          PRIOR LEGISLATION:


          AB 403 (Stone), Chapter 773, Statutes of 2015, implemented  
          Continuum of Care Reform (CCR) recommendations to better serve  
          children and youth in California's child welfare services  
          system.    


          SB 1013 (Senate Budget and Fiscal Review) Chapter 35, Statutes  
          of 2012, realigned the child welfare services system to  
          counties, established a moratorium on the licensing of new group  
          homes, and required DSS to convene a workgroup to discuss and  
          recommend changes to the continuum of care within child welfare  
          services and how to reform the use of congregate care.




          Analysis Prepared by:                                             
                          Daphne Hunt / HUM. S. / (916) 319-2089  FN:  
          0003367