BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2552


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          ASSEMBLY THIRD READING


          AB  
          2552 (Holden)


          As Amended  May 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Human Services  |7-0  |Bonilla, Grove,       |                    |
          |                |     |Calderon, Lopez,      |                    |
          |                |     |Maienschein,          |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Mark Stone, Thurmond  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |19-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Holden, Jones,        |                    |
          |                |     |Obernolte, Quirk,     |                    |








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          |                |     |Santiago, Wagner,     |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Requires counties that participate in the Approved  
          Relative Caregiver (ARC) Funding Option Program to pay approved  
          relative caregivers an annual clothing allowance of $240 for  
          each child eligible for benefits for a cumulative total of three  
          years and with a sunset date of January 1, 2020. 


          EXISTING LAW:  


          1)Establishes a state and local system of child welfare  
            services, including foster care, for children who have been  
            adjudged by the court to be at risk or have been abused or  
            neglected, as specified.  (Welfare and Institutions Code  
            Section (WIC) 202)


          2)States the intent of the Legislature to preserve and  
            strengthen a child's family ties whenever possible and to  
            reunify a foster youth with his or her biological family  
            whenever possible, or to provide a permanent placement  
            alternative, such as adoption or guardianship.  (WIC 16000)


          3)Requires a social worker, within 30 days of taking a child  
            into temporary custody or whenever appropriate to identify and  
            locate all adults who are related to the child by blood,  
            adoption, or affinity within the fifth degree of kinship and  
            provide for the purposes of informing them of their right to  
            participate in the care and placement of the child, as  
            specified.  (WIC Code 309(e)) 









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          4)Establishes the ARC program as an optional program for  
            counties to provide funding to non-federally eligible foster  
            children equal to the rates paid to federally eligible foster  
            children.  (WIC 11461.3)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill may result in potentially significant costs  
          of approximately $750,000 (General Fund) beginning in 2016-17  
          and $1.5 million (General Fund) in 2017-18 and 2018-19 to  
          provide the clothing allowance.  The State General Fund  
          appropriation for the ARC program is capped at $30 million.   
          Currently ARC expenditures by counties do not use the entire  
          amount of General Fund available and the unused portion is  
          returned to the General Fund.  If, including the clothing  
          allowance, the total ARC payments do not exceed the $30 million  
          available, a smaller amount would be returned to the General  
          Fund, but the overall cost would already be accounted for in the  
          state budget.  If, however, the additional amount spent results  
          in total ARC expenditures exceeding the amount of General Fund  
          appropriation, the difference would be a General Fund cost since  
          Proposition 30 requires any new benefits mandated by the State  
          to be paid for by the State.


          COMMENTS: 


          Child Welfare Services:  The purpose of California's Child  
          Welfare Services (CWS) system is to protect children from abuse  
          and neglect and provide for their health and safety.  The CWS  
          system seeks to help children who have been removed from their  
          homes reunify with their parents or guardians, whenever  
          appropriate.  There are currently over 62,000 children and youth  
          in California's child welfare system; over 7,600 of these youth  
          are between the ages of 18 and 20.










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          CalWORKs:  The California Work Opportunity and Responsibility to  
          Kids (CalWORKs) program provides monthly income assistance and  
          employment-related services aimed at moving children out of  
          poverty and helping families meet basic needs.  Federal funding  
          for CalWORKs comes from the Temporary Assistance for Needy  
          Families (TANF) block grant.  The average 2015-16 monthly cash  
          grant for a family of three on CalWORKs (one parent and two  
          children) is $506.55, and the maximum monthly grant amount for a  
          family of three, if the family has no other income and lives in  
          a high-cost county, is $704.  According to recent data from the  
          California Department of Social Services, over 497,000 families  
          rely on CalWORKs, including over one million children.  Nearly  
          60% of cases include children under 6 years old. 


          Aid for Dependent Children-Foster Care (AFDC-FC) and federally  
          eligible vs. non-federally eligible foster youth:  AFDC-FC  
          provides foster care benefits to youth and can be either  
          federally-funded or state-only funded.  In order to be federally  
          eligible for foster care, the home from which the child was  
          removed must meet Aid for Dependent Children (AFDC) eligibility  
          criteria from 1996 AFDC in the month the petition is filed or in  
          any of the 6 months prior to the month the petition is filed.   
          In 1996, the income limit for a family of 3 to qualify for AFDC  
          was $723.  Because some foster youth are ineligible to receive  
          federally funded foster care benefits, the State of California  
          created State AFDC-FC, which is a blend of State and County  
          funds and provides funding to foster children placed with  
          non-relative foster parents at the same rate as foster youth who  
          are federally eligible.  However, prior to 2014, all foster  
          youth who were placed with relative caregivers and who were  
          determined to be federally ineligible for AFDC-FC received  
          CalWORKs benefits and were funded at much lower rates than their  
          non-federally eligible counterparts who were placed with  
          non-relative foster parents.  In response to this discrepancy,  
          the State created the Approved Relative Caregiver Program.


          ARC Program:  Established in 2014 by SB 855 (Budget and Fiscal  








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          Review Committee), Chapter 29, Statutes of 2014, the ARC program  
          increased payments to children placed with relative caregivers  
          who do not qualify for state or federal foster care benefits.   
          Previously, these children were only eligible for CalWORKs  
          benefit rate levels, which are much lower than foster care  
          benefits.  The ARC program is county-optional and provides State  
          General Fund dollars for participating counties to increase the  
          monthly payments to approved relative caregivers in an amount  
          equal to the basic federal foster care rate.  A county may opt  
          out of the program at any time, but must meet notification and  
          other requirements.  Eligibility criteria require that relative  
          caregivers must be approved and live in California and meet  
          health and safety standards that mirror those for licensed  
          foster parents; and children must be under the jurisdiction of  
          the juvenile court in a county that has opted into the ARC  
          program and not federally eligible under Title IV-E of the  
          Social Security Act.  Those participating in an ARC program do  
          not receive special care increments, such as clothing allowances  
          and infant care supplements.  Currently 48 of California's 58  
          counties have opted into the ARC program and serve a total of  
          approximately 6,252 adult relative caregivers.  Los Angeles  
          County serves nearly 54% of the program's caregivers with  
          approximately 3,431 adult relative caregivers served, according  
          to information from DSS.


          Need for this bill:  According to the author's office, "Relative  
          caregivers are the backbone of our child welfare system.   
          Relative foster placements are more cost effective, tend to lead  
          to more long term placement stability, and offer better  
          connections to the child's community, but these children still  
          don't receive funding equal to what they would receive with a  
          non-relative.  [This bill] lessens the discrepancy by providing  
          additional funds to the families in the Approved Relative  
          Caregiver Program, in the form of a clothing allowance.  The  
          clothing allowance would consist of an additional $240 a year  
          for three years, distributed monthly, in counties that have  
          opted into the program."









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          PRIOR LEGISLATION:


          AB 1882 (Cooley) of 2014, would have required a county child  
          welfare agency to determine whether relative foster caregivers  
          are eligible for assistance under the CalWORKs program or  
          through the Supplemental Security Income program.  It died in  
          the Senate Appropriations Committee. 


          SB 855 (Budget and Fiscal Review Committee), Chapter 29,  
          Statutes of 2014, established the ARC Program and established  
          that participation for counties is optional.


          Analysis Prepared by:                                             
                          Kelsy Castillo / HUM. S. / (916) 319-2089  FN:  
          0003337