BILL NUMBER: AB 390 CHAPTERED 09/28/99 CHAPTER 547 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 1999 APPROVED BY GOVERNOR SEPTEMBER 28, 1999 PASSED THE ASSEMBLY AUGUST 26, 1999 PASSED THE SENATE AUGUST 23, 1999 AMENDED IN SENATE AUGUST 16, 1999 AMENDED IN SENATE JULY 12, 1999 AMENDED IN ASSEMBLY MAY 28, 1999 INTRODUCED BY Assembly Member Scott FEBRUARY 11, 1999 An act to amend Sections 16118, 16119, 16120.05, and 16121.05 of the Welfare and Institutions Code, relating to human services. LEGISLATIVE COUNSEL'S DIGEST AB 390, Scott. Adoption assistance. Existing law provides for the payment, by the State Department of Social Services and counties, of cash assistance to eligible families that adopt eligible children, and bases the amount of the payment on the needs of the child and the resources of the family to meet those needs. Existing law specifies what county shall be responsible for determining a child's eligibility under the Adoption Assistance Program and for providing financial aid. This bill would revise the responsibility of counties with respect to children relinquished for adoption prior to a determination of eligibility to make the county in which the relinquishing parent resides responsible for the eligibility determination and for providing financial aid. This bill would revise the adoptive program eligibility standards and would revise the basis for determining the negotiated amount of the adoption assistance cash benefits. The bill would also revise references to renewal of the adoption assistance agreement to refer instead to a reassessment of the child's needs. Existing law requires the department to determine when an adoption assistance overpayment has been made to an adoptive family when a child has not received services for which the adoption assistance benefits were authorized and to recover overpayment of adoption assistance benefits. This bill would recast that requirement to specify that the adoption overpayments would result if the adoptive parents are no longer legally responsible for the support of the child, the child is no longer receiving support from the adoptive parents, or the adoptive family has committed fraud. By increasing the responsibilities of counties, this bill would result in a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 16118 of the Welfare and Institutions Code is amended to read: 16118. (a) The department shall establish and administer the program to be carried out by the department or the county pursuant to this chapter. The department shall adopt any regulations necessary to carry out the provisions of this chapter. (b) The department shall keep any records necessary to evaluate the program's effectiveness in encouraging and promoting the adoption of children eligible for the Adoption Assistance Program. (c) The department or the county responsible for providing financial aid in the amount determined in Section 16120 shall have responsibility for certifying that the child meets the eligibility criteria and for determining the amount of financial assistance needed by the child and the adopting family. (d) The department shall actively seek and make maximum use of federal funds that may be available for the purposes of this chapter. All gifts or grants received from private sources for the purpose of this chapter shall be used to offset public costs incurred under the program established by this chapter. (e) For purposes of this chapter, the county responsible for determining the child's Adoption Assistance Program eligibility status and for providing financial aid in the amount determined in Sections 16120 and 16120.1 shall be the county that at the time of the adoptive placement would otherwise be responsible for making a payment pursuant to Section 11450 under the CalWORKs program or Section 11461 under the Aid to Families with Dependent Children-Foster Care program if the child were not adopted. When the child has been voluntarily relinquished for adoption prior to a determination of eligibility for such a payment, the responsible county shall be the county in which the relinquishing parent resides. The responsible county for all other eligible children shall be the county where the child is physically residing prior to placement with the adoptive family. The responsible county shall certify eligibility on a form prescribed by the department. SEC. 2. Section 16119 of the Welfare and Institutions Code is amended to read: 16119. (a) At the time application for adoption of a child who is potentially eligible for Adoption Assistance Program benefits is made, and at the time immediately prior to the finalization of the adoption decree, the department or the licensed adoption agency, whichever is appropriate, shall provide the prospective adoptive family with information, in writing, on the availability of Adoption Assistance Program benefits, with an explanation of the difference between these benefits and foster care payments. The department or the licensed adoption agency shall also provide the prospective adoptive family with information, in writing, on the availability of reimbursement for the nonrecurring expenses incurred in the adoption of the Adoption Assistance Program eligible child. The department or licensed adoption agency shall also provide the prospective adoptive family with information on the availability of mental health services through the Medi-Cal program or other programs. (b) The department or the licensed agency shall encourage families that elect not to sign an adoption assistance agreement to sign a deferred adoption assistance agreement. (c) The department or the county, whichever is responsible for determining the child's eligibility for the Adoption Assistance Program, shall assess the needs of the child and the circumstances of the family. (d) (1) The amount of an adoption assistance cash benefit, if any, shall be a negotiated amount based upon the needs of the child and the circumstances of the family. There shall be no means test used to determine an adoptive family's eligibility for the Adoption Assistance Program. In those instances where an otherwise eligible child does not require a cash benefit, Medi-Cal eligibility may be established for the child, as needed. (2) For purposes of paragraph (1), "circumstances of the family" includes the family's ability to incorporate the child into the household in relation to the lifestyle, standard of living, and future plans and to the overall capacity to meet the immediate and future needs, including education, of the child. (e) The department or the licensed adoption agency shall inform the prospective adoptive family regarding the county responsible for providing financial aid to the adoptive family in an amount determined pursuant to Sections 16120 and 16120.1. (f) The department or the licensed adoption agency shall inform the prospective adoptive family that the adoptive parents will continue to receive benefits in the agreed upon amount unless one of the following occurs: (1) The department determines that the adoptive parents are no longer legally responsible for the support of the child. (2) The department determines that the child is no longer receiving support from the adoptive family. (3) The adoption assistance payment exceeds the amount that the child would have been eligible for in a licensed foster home. (4) The adoptive parents demonstrate a need for an increased payment. (5) The adoptive parents voluntarily reduce or terminate payments. (6) The adopted child has an extraordinary need that was not anticipated at the time the amount of the adoption assistance was originally negotiated. SEC. 3. Section 16120.05 of the Welfare and Institutions Code is amended to read: 16120.05. The adoption assistance agreement shall, at a minimum, specify the amount and duration of assistance. The date for reassessment of the child's needs shall be set at the time of the initial negotiation of the adoption assistance agreement, and shall, thereafter be set at each subsequent reassessment. The interval between any reassessments may not exceed two years. The adoption assistance agreement shall also specify the responsibility of the adopting family for reporting changes in circumstances that might negatively affect their ability to provide for the identified needs of the child. SEC. 4. Section 16121.05 of the Welfare and Institutions Code is amended to read: 16121.05. (a) The department may recover any overpayments of financial assistance under the Adoption Assistance Program, and shall develop regulations that establish the means to recoup them, including an appropriate notice of action and appeal rights, when the department determines either of the following applies: (1) The adoptive parents are no longer legally responsible for the support of the child. (2) The child is no longer receiving support from the adoptive family. (3) The adoptive family has committed fraud in its application for, or reassessment of, the adoption assistance. (b) Children on whose behalf an adoption assistance agreement had been executed prior to October 1, 1992, shall continue to receive adoption assistance in accordance with the terms of that agreement. (c) Payment shall begin on or after the effective date of an adoption assistance agreement, or a deferred adoption assistance agreement, or a final decree of adoption, provided the adoption assistance agreement has been signed by all required parties prior to or at the time the adoption decree is issued by the court. (d) Children on whose behalf an aid for adoption of children agreement had been executed prior to October 1, 1982, shall continue to receive aid for adoption of children benefits in accordance with the terms of that agreement. This aid for adoption of children agreement may be renewed, provided total benefits do not exceed five years. Prior to the end of the five-ygear period, if there is a continuing need related to a chronic health condition of the child that necessitated the initial financial assistance, the time period for which it may be given shall be determined by the department or the agency, but shall not extend past the time that the child reaches 18 years of age. Prior to the expiration of the extension period, if there is a continuing need, a parent may petition the department or the designated licensed adoption agency for a new period of termination. The department or the agency shall make its determination regarding the financial ability of the parents to meet the continuing medical needs of the child's health condition at the time of adoption, taking into consideration community resources. SEC. 5. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.