BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:              AB 1997
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          |Author:   |Mark Stone                                            |
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          |----------+-----------------------+-----------+-----------------|
          |Version:  |June 21, 2016          |Hearing    |June 28, 2016    |
          |          |                       |Date:      |                 |
          |----------+-----------------------+-----------+-----------------|
          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Mareva Brown                                          |
          |:         |                                                      |
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                                Subject:  Foster care


            SUMMARY
          
          This 261-page bill cleans up elements of AB 403 (Stone, Chapter  
          773, Statutes of 2015), which implemented the Continuum of Care  
          Reform effort. Included in this cleanup are changes to the  
          requirements for mental health certification of a short term  
          residential treatment center (STRTC) and modifications to  
          probation placement oversight. It establishes additional  
          protocols around the Resource Family Approval process, which  
          moves from a pilot program to a statewide mandate in January  
          2017. It requires the basic rate paid to all families be the  
          same regardless of approval process and other changes. This bill  
          additionally deletes the option to extend the provisional  
          license of a foster family agency (FFA) or STRTC if it fails to  
          obtain accreditation within specified time frames and authorizes  
          the California Department of Social Services (CDSS) to revoke  
          the license if accreditation is not obtained within 24 months of  
          licensure. It makes other conforming and technical changes,  
          including deletion of statutory language that will become  
          obsolete on January 1, 2017, when this bill is enacted, such as  
          licensure categories and requirements for group homes. 

            ABSTRACT
          
          Existing law:

            1)  Establishes a system of juvenile dependency for children  








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              who are or are at risk of being physically, sexually or  
              emotionally abused, being neglected or being exploited to  
              ensure their safety, protection and physical and emotional  
              well-being. (WIC 300, et seq.)


            2)  Requires the state, through CDSS and county welfare  
              departments, to establish and support a public system of  
              child welfare services to protect and promote the welfare of  
              children. (WIC 10600 and 16500)


            3)  Establishes the category of STRTC, defined as a  
              residential facility licensed by CDSS and operated by any  
              public agency or private organization that provides  
              short-term, specialized, and intensive treatment, and  
              24-hour care and supervision to children. The care and  
              supervision provided by a short-term residential treatment  
              center shall be nonmedical, except as otherwise permitted by  
              law. (HSC 1502 (a)(18))


            4)  Provides for licensure of a Foster Family Agency, defined  
              to mean a public or private agency engaged in the  
              recruiting, certifying, and training of, and providing  
              professional support to, foster parents, or in finding homes  
              or other places for placement for children for temporary or  
              permanent care, as an alternative to group care. (HSC  
              1502(a)(4))




            5)  Establishes California's Medicaid program, Medi-Cal,  
              though which eligible low-income individuals receive health  
              care and mental health services, including foster youth,  
              eligible recipients of the Adoption Assistance Program, and  
              Kin-Gap. Under Medi-Cal, establishes the federal Early and  
              Periodic Screening, Diagnosis and Treatment (EPSDT) program  
              to provide comprehensive and preventive health services  
              including specialty mental health services to Medi-Cal  
              beneficiaries under the age of 21. (WIC 14000 et seq., 42  
              USC Section 1396 et seq and 42 CFR 435.145.)










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            6)  Establishes the Resource Family approval process, a  
              unified, family friendly, and child-centered process to  
              replace the existing multiple processes for licensing foster  
              family homes, approving relatives and nonrelative extended  
              family members as foster care providers, and approving  
              adoptive families. The process includes a home study,  
              psychosocial assessment, background check, and other  
              elements. (WIC 16519.5)


            7)  Establishes in statute the basic rate for a foster child  
              and codifies modifications to that rate. (WIC 11461)




            8)  Restricts the placement of children younger than 6 into a  
              group home or STRTC, except in specified circumstances and  
              requires that the child remain no longer than 120 days, with  
              extensions of 60 days only under specified circumstances and  
              with written approval of the director or deputy director of  
              the county child welfare or probation department. Similarly  
              restricts the placement duration of a child aged 6-12 years  
              old to a treatment facility for no longer than six months  
              with written authorization required to extend the stay. (WIC  
              361.2)


          This bill:

          Makes changes to the STRTC and FFA structure, licensure and  
          certification, including:
          
            1)  Requires an FFA or STRTC to include with an application a  
              letter of recommendation from county placing agencies to  
              identify a need for the program prior to licensure. 

            2)  Requires FFA social workers to meet core competencies to  
              participate in the assessment and evaluation of an  
              applicant, as specified, and clarifies that a social worker  
              may obtain a degree more advanced than a master's degree. 

            3)  Defines the components of an FFA's plan of operation  









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              including a demonstrated ability to support the needs of  
              differing children and their families, a demonstrated  
              ability to provide or obtain treatment services, as  
              appropriate, 

            4)  Prohibits an FFA from considering an applicant who has had  
              a denial within the preceding year or a previous rescission,  
              revocation or exemption denial, but permits an FFA to  
              continue to review an application if it determines that the  
              previous denial, rescission or revocation were due to  
              circumstances that have been corrected or no longer exist.

            5)  Deletes the ability of an FFA or STRTC to receive a  
              provisional license in order to obtain accreditation,  
              provides each FFA with a 24-month window to receive the  
              accreditation and permits CDSS to revoke licensure if  
              accreditation is not obtained in that time.  
          


          Clarifies the role of the probation department in placing youth  
          into an STRTC

            6)  Requires that if a child is placed in an STRTC through the  
              probation department, and is older than 13 years old, the  
              chief probation officer must review and approve the  
              placement if it exceeds 12 months and no less frequently  
              than every 12 months thereafter.

            7)  Requires that a court review the placement decision of a  
              probation department for necessity and appropriateness. 
          
          Revises the Resource Family Approval (RFA) Process in the  
          following ways:

            8)  Establishes the RFA as the only method to approving homes  
              within a foster family agency, sunsets provisions that allow  
              for certification of homes under the prior statute and  
              requires an FFA to document various aspects of the RFA  
              process.

            9)  Requires an FFA to make an announced annual inspection  
              visit, and authorizes inspection of resource family homes as  
              often as necessary to ensure the quality of care.









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            10) Clarifies that a licensed or certified foster home or  
              existing approved resource family home shall forfeit its  
              current licensure, certification or approval concurrent with  
              its approval as a resource family by an FFA or a county. 

            11) Requires CDSS to develop a basic rate that ensures that a  
              child placed in a licensed foster family home, a certified  
              family home, or with a resource family approved by a county  
              or foster family agency is eligible for the same basic rate.  


            12) Clarifies that there is no fundamental right to resource  
              family approval.

          Makes the following changes to Mental Health components
          
            13) Prohibits an STRTC from providing specialty mental health  
              services without a current mental health program approval  
              from the county mental health plan or state DHCS, and  
              requires that a licensed STRTC that has not obtained a  
              program approval to provide children in its care access to  
              appropriate mental health services. 

            14) Authorizes DHCS and county mental health plans to suspend  
              or revoke a mental health program approval, impose monetary  
              penalties, place a mental health program on probation or  
              require a program to prepare and comply with a corrective  
              action plan.

            15) Provides DHCS and county mental health plans with  
              authority to issue a provisional mental health approval for  
              up to one year and requires DHCS and CDSS to issue  
              regulations defining due process for centers that are  
              seeking to appeal any part of the licensure and program  
              approval process.

            16) Establishes that out-of-state group homes must have a  
              mental health program approval equivalent to California's to  
              accept placement of California youth. 

            17) Clarifies the role of the interagency placement committee  
              in assessing children for placement in to STRTCs, including  
              into those facilities that do not have specialty mental  









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              health treatment components. 

            18) Removes the requirement for FFAs to obtain a mental health  
              certification or program approval and deletes references to  
              treatment throughout the bill. 

            19) Replaces the requirement that an FFA document how it will  
              provide treatment services, with the requirement that an FFA  
              submit a copy of its program statement to all placing  
              agencies. 
          
          Makes technical and other changes including:

            20) Requires DHCS and CDSS to identify a dispute resolution  
              process to address disputed interagency placement committee  
              assessments or determinations of a child's service need.
              
            FISCAL IMPACT
          
          According to an analysis by the Assembly Committee on  
          Appropriations, the Governor's 2016-17 Budget includes $182  
          million ($127 million GF) to continue to implement CCR contained  
          in AB 403 (Stone, Chapter 773, Statutes of 2015), including all  
          of the provisions of this bill.

            BACKGROUND AND DISCUSSION
          
          Purpose of the bill:

          The author states that while most youth in foster care are  
          placed with resource families about 3,000 youth live in group  
          placements, where they often stay for years. These long stays  
          are problematic because foster youth who live in congregate care  
          settings are more likely than those who live with families to  
          suffer a variety of negative short- and long-term outcomes, the  
          author states. These can include lifelong institutionalized  
          behaviors, and increased likelihood of involvement with the  
          criminal justice system as well as low educational attainment. 

          In 2015, the author carried an Administration-sponsored bill to  
          implement a Continuum of Care Reform effort, beginning a  
          multi-year reform process. AB 403 (Stone, Chapter 773, Statutes  
          of 2015) advanced California's long-standing goal to move away  
          from the use of long-term group home care by increasing youth  









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          placement into family settings, strengthening training and  
          supports for those families and transforming existing group home  
          care into short term residential treatment centers. 

          This bill makes numerous technical amendments and policy  
          clarifications to ensure that stakeholders and the  
          Administration can most effectively and efficiently implement  
          provisions of the new law, according to the author.

          Child Welfare system
          
          California's county-based child welfare system is designed to  
          protect children at risk of child abuse and neglect or  
          exploitation by providing intensive services to families to  
          allow children to remain in their homes, or by arranging  
          temporary or permanent placement of the child in the safest and  
          least restrictive environment possible. Approximately 62,000  
          children and youth in California are in foster care or roughly 1  
          in 7 foster children nationwide. 

          For more than a decade California has implemented prevention and  
          early intervention efforts to strengthen families and reduce the  
          number of children in out-of-home foster care placements,  
          resulting in a decline from more than 100,000 youths in foster  
          care in 1999 to the current 62,000.  About 85 percent were  
          removed from their families due to neglect, 8 percent due to  
          physical abuse, and 2 percent due to sexual abuse.<1> The median  
          length of time California children spent in foster care was  
          about 15 months, as of 2012.

          At the same time the population was declining, there was a  
          growing national consensus in the field of child welfare that  
          institutionalized settings should be used sparingly.  The  
          placement of maltreated children in group care settings has been  
          increasingly viewed as a temporary solution in instances where  
          emergency or crisis treatment is warranted.  Yet, as of January  
          2015, 48 percent of youth placed in group homes in California  
          through the child welfare services system had been there more  
          than two years, and 23 percent had been there more than five  
          years.


          Continuum of Care Reform effort



          ---------------------------
          <1> "Foster Care in California," Kidsdata.org, February 2016








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          In 2012, CDSS convened a working group to recommend changes to  
          the current rate-setting system, services, and programs serving  
          children and families in the continuum of foster care settings.  
          The three-year effort came in response to statutory requirements  
          in budget trailer bill (SB 1013, Chapter 25, Statutes of 2012),  
          which mandated the workgroup consider, at a minimum, reforms to  
          programs provided by Foster Family Agencies and group homes, and  
          how to ensure the provision of services in family-like settings,  
          including after care services, when appropriate.


          In January 2015, the Department published the "California's  
          Child Welfare Continuum of Care Reform" report. It outlined an  
          interdependent approach to improving California's child welfare  
          system by improving assessments of children and families,  
          emphasizing home-based family care placements of children and  
          changing the goals for congregate care placements. "Children  
          should live in their communities in home-based family care  
          settings," the report noted. (p. 5) "Through this report's  
          proposed restructuring of placements and services, children and  
          youth will be able to receive their necessary services without  
          being rotated between programs and placements."


          The report emphasized that reform efforts cannot focus on  
          stand-alone innovations, but rather must be an interconnected  
          system with an array of services for youth and families. It  
          noted that underpinning the change in service delivery is the  
          belief that "all children, including those in out-of-home care,  
          deserve to grow up in families and develop a sense of  
          community." One recommendation of the report, included in AB  
          403, was to provide all foster youth with access to a child and  
          family team - instead of relying solely on a single social  
          worker - and empowering those child and family teams to utilize  
          a more consistent assessment tool that identifies the needs of  
          the child. Another key element was to limit the use of group  
          care to short-term treatment with targeted mental health  
          components. 


          AB 403
          
          AB 403 (Stone, Chapter 773, Statutes of 2015) enacted major  









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          components of the CCR effort. The bill eliminated the licensure  
          category of children's group homes and declared Legislative  
          intent to improve California's child welfare system by using  
          comprehensive initial child assessments, increasing the use of  
          and the supports to home-based family care and relying less on  
          congregate care. The bill targeted the delivery of appropriate  
          treatment and services to the child regardless of living  
          arrangement, rather than using the placement setting to drive  
          decisions about services which historically has caused a child  
          to "fail upwards" into higher levels of care.  Overall, it  
          emphasized the creation of supports for resource families to  
          decrease group care.

          Short Term Residential Treatment Centers (STRTCs)

          AB 403 bill created a new licensure category to replace the  
          eliminated group home category, effective January 1, 2017. All  
          STRTCs are required to have national accreditation from an  
          entity identified by CDSS. The bill permitted two-year  
          conditional extensions to individual group homes and an interim  
          rate structure for group homes that were unable to transition to  
          the new STRTC model within the given time frame. 

          AB 403 also required that placement of a child into a STRTC is  
          authorized only when the case plan indicates that placement is  
          to provide short-term, specialized and intensive treatment for  
          the child, the case plan specifies the need for, nature of, and  
          anticipated duration of this treatment. The case plan must  
          include a plan for transitioning the child to a less restrictive  
          environment and the projected timeline for doing so.  It  
          required that placements lasting longer than six-months to be  
          documented and approved by the deputy director or director of  
          the county child welfare agency. The STRTCs are intended to  
          replace the existing group homes with the highest rate  
          classification levels - RCL 13 and 14 - which currently require  
          certification by DHCS to provide specialty mental health  
          services.

          Under AB 403, STRTCs are permitted to address mental health  
          treatment in two ways. An STRTC that is certified by DHCS or a  
          county mental health plan may only accept children who have been  
          assessed as meeting medical necessity required for specialty  
          mental health care under the EPSDT program or who have been  
          assessed as being Seriously Emotionally Disturbed. An STRTC  









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          without a mental health certification is permitted to be  
          licensed, however it only is authorized serve children who are  
          assessed as being seriously emotionally disturbed and meeting  
          medical necessity criteria for specialty mental health care if  
          the STRTC arranges for a Medi-Cal eligible child to receive  
          treatment. 

          This bill clarifies the process for an STRTC to obtain mental  
          health approval and makes continued licensure by CDSS contingent  
          upon obtaining the mental health approval. It permits emergency  
          placements of youth and children into STRTCs pending further  
          evaluation. For children with behavioral challenges that are not  
          diagnosed as needing specialty mental health services by a  
          county mental health plan, this bill permits an STRTC to remain  
          licensed and to provide children in its care access to  
          appropriate mental health services. 


          Foster Family Agencies (FFAs)

          Private Foster Family Agencies are used by county placing  
          departments for children who require more intensive care than a  
          typical foster family home, but do not need the intensive  
          services of a group home, or an STRTC. FFAs recruit, certify and  
          train foster parents and provide social workers and other  
          supports to the foster families. There are two types of FFA  
          programs, "treatment foster care," and "nontreatment foster  
          care." Treatment foster care is defined as meeting the service  
          needs of a child that may require a higher level of care, such  
          as residential placement, if not referred to an FFA. An FFA  
          providing nontreatment services typically certifies a home for  
          placement of a child pending the adoption of that child by the  
          family, according to information on the CDSS website.

          AB 403 maintained the licensure category of FFAs, but required  
          all FFAs to become accredited, mandated new rates be  
          established, permitted probation departments to place youth into  
          a certified home of an FFA and permitted mental health  
          certification for programs that provide intensive services,  
          according to law.

          This bill removes the requirement that an FFA seek and obtain  
          mental health program approval, however an FFA may still secure  
          mental health treatment for children living within the FFA's  









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          foster homes. 


          Rates 


          With the establishment of new types of treatment and the new  
          STRTC category, AB 403 required CDSS to create a new payment  
          structure for STRTCs and for FFAs, effective January 1, 2017.  
          These rates were expected to be released in March 2016, however  
          CDSS was delayed in releasing them and they were unveiled with  
          the May Revise. In response to stakeholder concerns about the  
          methodology for creating the rates, the Senate and Assembly  
          budget committees adopted special reporting language requiring  
          CDSS to work with stakeholders through the summer of 2016, and  
          to report back on Aug. 10th the results of those conversations  
          in order to determine if rate adjustments are necessary.

          Resource Family Approval

          Prior to AB 403, the Legislature approved and CDSS enacted a  
          pilot project to combine the review and approval processes of  
                                                                        California's various foster care and adoption programs into a  
          single approval process, the Resource Family Approval Process.  
          AB 403 made the pilot statewide, effective January 1, 2017. 

          This bill clarifies the process for conducting an RFA for a  
          family member who is sheltering a foster child. The typical RFA  
          process requires a background check, psychosocial assessment and  
          home study prior to the placement of a child in a foster home.  
          However many family placements are done on an emergency basis,  
          without the ability to establish approval prior to placement.  
          This bill establishes a process for emergency placement of a  
          child with a relative, pending final approval through the RFA  
          process.

          Out of state placements

          California statute requires that any out-of-state group home  
          meet at least the same rigorous standards it would have to meet  
          in California. It requires CDSS or its designee - typically a  
          county child welfare agency - to perform initial and continuing  
          inspections of out-of-state group homes in order to either  
          certify that the out-of-state group home meets all licensure  









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          standards required of group homes operated in California or that  
          the department has granted a waiver to a specific licensing  
          standard upon a finding that there exists no adverse impact to  
          health and safety. AB 403 mandated that after January 1, 2017,  
          the licensing standards applicable to out-of-state group homes  
          be the same as those required of STRTCs, unless the out-of-state  
          group home is granted an extension or waiver, as specified. In  
          January 2016, there were 62 youths placed in out-of-state  
          placements from the child welfare system, and 252 from the  
          probation, or delinquency, system, as reflected in the chart on  
          the next page. This bill extends the requirement for mental  
          health certification to out-of-state placements.


                                                                           
                       California Department of Social Services

          
          
          Related 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  
          and required statewide implementation of the Resource Family  
          Approval Process.    

          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 the Department of Social Services 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.

            COMMENTS
          
          This bill continues to be fine-tuned, and will likely see  
          additional technical changes in the next committee. The  
          committee recommends the following amendments: 

             1.   Out-of-state: Foster children who are placed out of  
               state are subject to the same requirements as those placed  
               in California short-term residential treatment centers.  









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               Staff therefore recommends clarifying this language, as  
               follows:
          
           Family Code Section 7911.1 
           (c) (1) The State Department of Social Services or its designee  
          shall perform initial and continuing inspection of out-of-state  
          group homes in order to either certify that the out-of-state  
          group home meets all licensure standards required of group homes  
          operated in California or that the department has granted a  
          waiver to a specific licensing standard upon a finding that  
          there exists no adverse impact to health and safety.
           
          (2) (A) On and after January 1, 2017, the licensing standards  
          applicable to out-of-state group homes certified by the  
          department, as described in paragraph (1), shall be those  
          required of short-term residential treatment centers operated in  
          this state, unless the out-of-state group home is granted an  
          extension pursuant to subdivision (d) of Section 11462.04 of the  
          Welfare and Institutions Code, or has otherwise been granted a  
          waiver pursuant to this subdivision.. 
           
          (B) On and after January 1, 2017  , the licensing standards  
          applicable to out-of-state group homes certified by the  
          department, as described in paragraph (1),  shall also include   
           an out-of-state group home shall satisfy  the licensing standards  
          for mental health program approval in Section 1562.01 of the  
          Health and Safety Code  . These standards can also be met  if the  
          out-of-state group home has an equivalent mental health program  
          approval in the state in which it is operating.  If an  
          out-of-state group home cannot meet licensing standards for  
          equivalent mental health program approval, no children shall be  
          placed in that facility.
           
          (3) In order to receive certification, the out-of-state group  
          home shall have a current license, or an equivalent approval, in  
          good standing issued by the appropriate authority or authorities  
          of the state in which it is operating.


             2.   Program approval: The creation of short-term residential  
               treatment centers requires the collaboration of county  
               welfare agencies, which are responsible for placement and  
               oversight of foster children, and county behavioral health  
               departments, which are responsible for approving both the  









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               centers for Medi-Cal certification, and the children for  
               the level of needed services. Staff recommends tracking  
               both processes to identify problems that may arise:
          
                WIC 1562.01 
                (a) The department shall license short-term residential  
               treatment centers, as defined in paragraph (18) of  
               subdivision (a) of Section 1502, pursuant to this chapter.  
               A short-term residential treatment center shall comply with  
               all requirements of this chapter that are applicable to  
               group homes and to the requirements of this section.

               (b) (1) A short-term residential treatment center shall  
               have national accreditation from an entity identified by  
               the department pursuant to the process described in  
               paragraph (5) (6) of subdivision (b) of Section 11462 of  
               the Welfare and Institutions Code.

               (2) A short-term residential treatment center applicant  
               shall submit documentation of accreditation or application  
               for accreditation with its application for licensure.

               (3) A short-term residential treatment center shall have up  
               to 24 months from the date of licensure to obtain  
               accreditation.

               (4) A short-term residential treatment center shall provide  
               documentation to the department reporting its accreditation  
               status at 12 months and at 18 months after the date of  
               licensure. 

               (5) This subdivision does not preclude the department from  
               requesting additional information from the short-term  
               residential treatment center regarding its accreditation  
               status.

               (6) The department may revoke a short-term residential  
               treatment center's license pursuant to Article 5  
               (commencing with Section 1550) for failure to obtain  
               accreditation within the timeframes specified in this  
               subdivision.

               (c) (1) A short-term residential treatment center shall  
               have up to 12 months from the date of licensure to obtain  









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               in good standing a mental health program approval that  
               includes a Medi-Cal mental health certification, as set  
               forth in Sections 4096.5 and 11462.01 of the Welfare and  
               Institutions Code.

               (2) A short-term residential treatment center shall  
               maintain the program approval described in paragraph (1) in  
               good standing during their licensure. 

                (3) The Department shall track the number of licensed  
               short-term residential treatment centers that were unable  
               to obtain a mental health program approval and provide that  
               information annually to the Legislature in the budget  
               process.
                

             3.   Dispute resolution: One significant element of this bill  
               is the addition of mental health certification or program  
               approval required for STRTCs. After significant  
               negotiation, the Departments of Social Services and Health  
               Care Services and the county welfare and behavioral health  
               directors have largely agreed upon the approach in this  
               bill. Still unresolved is a dispute resolution process in  
               case local entities cannot agree whether to approve a  
               specific child for specialty mental health treatment. Staff  
               recommends the following clarification:
          
           WIC 4096
           (e)(4) The State Department of Health Care Services and the  
          State Department of Social Services shall identify a dispute  
          resolution process currently operated jointly under an  
          identified ombudsman program of each department to jointly  
          review a disputed interagency placement committee assessment or  
          determination made pursuant to subdivision (e).  The departments  
          shall report the identified dispute resolution process to the  
          policy and fiscal committees of the Legislature no later than  
          January 1, 2017, and shall track the number of disputes reported  
          and resolved and provide them to the Legislature annually  
          through the budget process.  

             4.   Confidential proceedings: This bill requires the closure  
               of administrative hearings involving foster care providers  
               who are appealing violations, including those of exclusion  
               from being around foster children, citations for licensing  









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               violations and others. While juvenile dependency  
               proceedings are traditionally closed, the required closure  
               of administrative hearings broadens this requirement, and  
               may make confidential the documentation of the  
               administrative hearings. The stated purpose of these  
               amendments is to ensure privacy for foster youth who may be  
               witnesses or victims in these circumstances; however a more  
               targeted approach has not been evaluated. Given the late  
               nature of these amendments and the pending questions, staff  
               recommends deleting the following two sections and  
               continuing the conversation about confidential proceedings  
               in subsequent cleanup bills, as follows:


               Delete the following: 
                Section 1551.3 is added to the Health and Safety Code, to  
               read:
               A proceeding conducted pursuant to Section 1534, 1551, or  
               1558 against a foster family home or certified family home  
               of a foster family agency shall be confidential and not  
               open to the public in order to preserve the confidential  
               information of a child in accordance with Section 1536,  
               Section 11167.5 of the Penal Code, and Sections 827 and  
               10850 of the Welfare and Institutions Code. Notwithstanding  
               this requirement, an administrative law judge may admit  
               those persons deemed to have a direct and legitimate  
               interest in the particular case or the work of the court on  
               a case-by-case basis and with any admonishments,  
               limitations, and protective orders as may be necessary to  
               preserve the confidential nature of the proceedings.
           

               Delete amended sections of 16519.6.
           (n) (1) A proceeding conducted pursuant to this section shall  
          be confidential and not open to the public in order to preserve  
          the confidential information of a child in accordance with  
          Sections 827 and 10850, Section 1536 of the Health and Safety  
          Code, and Section 11167.5 of the Penal Code. Notwithstanding  
          this requirement, an administrative law judge may admit persons  
          deemed to have a direct and legitimate interest in the  
          particular case or the work of the court on a case-by-case basis  
          and with any admonishments, limitations, and protective orders  
          as may be necessary to preserve the confidential nature of the  
          proceedings.









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              5.   Contracting: This bill requires an STRTC contract with a  
               county mental health plan for specialty services for the  
               children in its care. However, this contracting requirement  
               does not establish rates for the services to be provide, as  
               is customary. Staff recommends the following clarifying  
               amendment:

               WIC 11462.01.


               (a) (1) No later than 12 months following the date of  
               initial licensure, a short-term residential treatment  
               center, as defined in subdivision (ad) of Section 11400 of  
               this code and paragraph (18) of subdivision (a) of Section  
               1502 of the Health and Safety Code, shall obtain a  
               contract  , subject to an agreement on rates and terms and  
               conditions,  with a county mental health plan to provide  
               specialty mental health services and demonstrate the  
               ability to meet the therapeutic needs of each child, as  
               identified in any of the following:

               (A) A mental health assessment.
               (B) The child's case plan.
               (C) The child's needs and services plan.
               (D) Other documentation demonstrating the child has a  
               mental health need.
               (2) A short-term residential treatment center shall comply  
               with any other mental health program approvals required by  
               the State Department of Health Care Services or by a county  
               mental health plan to which mental health program approval  
               authority has been delegated.

             6.   Rates: This bill revises the rate-setting mechanism from  
               one formalized in statute to one set by All County Letter,  
               without reference to the need for codification. CDSS said  
               it was not its intent to remove the Legislature's  
               traditional role in establishing rates by statute.  However  
               the Department's rates for these new levels of care are  
               still being evaluated, and were released just a month ago  
               in the Governor's May Revise.  The Legislative budget  
               committees required in Trailer Bill that CDSS continue to  
               discuss rates with various stakeholders through the summer  
               and fall. As the rates for current year are the subject of  









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               ongoing conversations with stakeholders, it is appropriate  
               to allow rates this year to be therefore set through All  
               County Letter, however  staff recommends clarifying that the  
               Legislature's role in establishing and codifying rates  
               through the annual budget process is unchanged going  
               forward beginning with the budget enacted for 2017-2018, as  
               follows:  

                WIC 11460  .
               (a) (1) Foster care providers shall be paid a per child per  
               month rate in return for the care and supervision of the  
               AFDC-FC child placed with them. The department is  
               designated the single organizational unit whose duty it  
               shall be to administer a state system for establishing  
               rates in the AFDC-FC program. State functions shall be  
               performed by the department or by delegation of the  
               department to county welfare departments or Indian tribes,  
               consortia of tribes, or tribal organizations that have  
               entered into an agreement pursuant to Section 10553.1.

               (2)(A) Foster care providers that care for a child in a  
               home-based setting described in paragraph (1) of  
               subdivision (g) of Section 11461, or in a certified home or  
               an approved resource family of a foster family agency,  
               shall be paid the per child per month rate as set forth in  
                paragraph (4) of  subdivision (g) of Section 11461.  

               (B) The basic rate paid to either a certified family home  
               or an approved resource family  by a foster family agency  
               shall be paid by the agency to the certified family home or  
               approved resource family  from the rate that is paid to the  
               agency pursuant to Section 11463.
                
               WIC 11461(g)
                (4)(A)(i)  For the 2016-17 fiscal year  , the department shall  
               develop a basic rate in coordination with the development  
               of the foster family agency rate authorized in Section  
               11463 that ensures a child placed in a home-based setting  
               described in paragraph (1), and a child placed in a  
               certified family home or with a resource family approved by  
               a foster family agency,  is eligible for the same basic  
               rate set forth in this paragraph. 
                
               (ii)The rates developed pursuant to this paragraph shall  









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               not be lower than the rates proposed as part of the May  
               Revision of the Governor's budget in May of 2016.
                
               (iii)  A certified family home of a foster family agency  
               shall be paid the basic rate set forth in this paragraph  
               only through  December 31, 2019   December 31, 2017.

                (B) The basic rate paid to either a certified family home  
               or a resource family approved by a foster family agency  
               shall be paid by the agency to the certified family home or  
               approved resource family from  the rate that is paid to the  
               agency pursuant to Section 11463.
                
                 (C) The basic rate shall be annually adjusted on July 1 by  
               the annual percentage change in the California Necessities  
               Index applicable to the calendar year within which each  
               July 1 occurs. Notwithstanding the rulemaking provisions of  
               the Administrative Procedure Act (Chapter 3.5 (commencing  
               with Section 11340) of Part 1 of Division 3 of Title 2 of  
               the Government Code), the annually adjusted basic rates  
               shall be published annually by all county letter.
                
                (D)   (C)  Notwithstanding the rulemaking provisions of the  
               Administrative Procedure Act (Chapter 3.5 (commencing with  
               Section 11340) of Part 1 of Division 3 of Title 2 of the  
               Government Code), the basic rates and the manner in which  
               they are determined shall be set forth in written  
               directives until regulations are adopted.  

                (E)   (D)  The basic rates set forth in written directives or  
               regulations pursuant to subparagraph  (D)   (C)  of paragraph  
               (4) of subdivision (g) shall become inoperative on December  
               31, 2017, unless a later enacted statute, that becomes  
               operative on or before December 31, 2017, deletes or  
               extends the dates on which they become inoperative.  


               WIC 11462
                (c) The department shall establish rates pursuant to  
               subdivisions (a) and (b) commencing January 1, 2017. The  
               rate structure shall include an interim rate, a provisional  
               rate for new short-term residential treatment centers, and  
               a probationary rate. The department may supplement the rate  
               with a one-time reimbursement for accreditation fees in an  









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               amount and manner determined by the department in written  
               directives.
               (1)  Initial i  nterim rates developed pursuant to this  
               section shall be effective January 1, 2017  through December  
               31, 2017, unless a later enacted statute extends them  .  The  
               interim rates shall be evaluated and an ongoing payment  
               structure shall be set no later than January 1, 2020. 
                (  2) Initial interim rates developed pursuant to this  
               subdivision shall not be lower than the rates proposed as  
               part of the May Revision of the Governor's budget in May of  
               2016.
               (3)       Notwithstanding the rulemaking provisions of the  
               Administrative Procedure Act (Chapter 3.5 (commencing with  
               Section 11340) of Part 1 of Division 3 of Title 2 of the  
               Government Code), the initial interim, provisional, and  
               probationary rates and the manner in which they are  
               determined shall be set forth in written directives until  
               regulations are adopted
               (4) It is the intent of the Legislature to establish an  
               ongoing payment structure no later than January 1, 2020.

                 (2)   (5)  Consistent with Section 11466.01, for provisional  
               and probationary rates, the following shall be established:
               (A) Terms and conditions, including the duration of the  
               rate.
               (B) An administrative review process for rate  
               determinations, including denials, reductions, and  
               terminations.
               (C) An administrative review process that includes a  
               departmental review, corrective action, and a protest with  
               the department. Notwithstanding the rulemaking provisions  
               of the Administrative Procedure Act (Chapter 3.5  
               (commencing with Section 11340) of Part 1 of Division 3 of  
               Title 2 of the Government Code), this process shall be  
               disseminated by written directive pending the promulgation  
               of regulations.
                     



           PRIOR VOTES
          
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          |Assembly Floor:                                            |80 - |









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          |Assembly Appropriations Committee:                         |20 - |
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          |-----------------------------------------------------------+-----|
          |Assembly Human Services Committee:                         |7 -  |
          |                                                           |0    |
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            POSITIONS
                                          
          Support:       
               The California Department of Social Services (Sponsor)
               The National Association of Social Workers

          Oppose:
               None.



                                      -- END --