BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                       Senator S. Joseph Simitian, Chair


          BILL NO:       AB 1633                                      
          A
          AUTHOR:        Evans                                        
          B
          VERSION:       June 20, 2005
          HEARING DATE:  June 28, 2005                                
          1
          FISCAL:        Senate Appropriations                        
          6
                                                                      
          3
          CONSULTANT:                                                 
          3
          Sue North
                                        

                                     SUBJECT
                                         
              Foster Youth and Supplemental Security Income/State  
                        Supplementary Payment (SSI/SSP)

                                     SUMMARY  

          Creates a policy to extend foster care placement beyond age  
          18 when a foster child is pursuing a high school  
          equivalency certificate.  Requires the Department of Social  
          Services (DSS) to convene a workgroup to establish 'best  
          practices' guidelines by December, 2006 for county welfare  
          departments to follow in assisting foster children to  
          receive federal benefits under the Social Security Act.

                                     ABSTRACT  

          Current federal law establishes benefits for various child  
          beneficiaries under different Titles of the Social Security  
          Act (e.g., survivor benefits, support for disabled  
          children, etc.).  Current state law requires county welfare  
          departments to make an effort to research and secure, when  
          appropriate, any income for which foster children and youth  
          are eligible.

                                                         Continued---



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          This bill requires a workgroup to be established by DSS to  
          establish "best practices" guidelines by December 31, 2006  
          to address at least the following elements:

             1.   When and how to screen children for SSI/SSP  
               eligibility;

             2.   Assisting children in the application and appeals  
               process of SSI/SSP;

             3.   Informing parents and caretakers when a child  
               leaves foster care of potential eligibility for  
               SSI/SSP; and

             4.   Maximizing the federal benefits received for the  
               maintenance of children currently in the county's  
               custody in foster care.
          This bill also requires counties to apply to become the  
          'representative payee' under the rules of the Social  
          Security Administration during the time a child is in  
          foster care and to establish a no-cost interest-bearing  
          account for all children for whom the county serves as such  
          a representative payee.  The funds contained in these  
          accounts would only be available for purposes and uses of  
          the child, subject to the requirements of federal law. When  
          appropriate, the county would further be directed to  
          establish dedicated accounts designed to accrue up to the  
          $2000 maximum allowable under SSI/SSP rules which would  
          provide the foster child who becomes an adult the resources  
          to pay for allowable expenditures such as education, job  
          training, special equipment or housing modifications, etc.

          As a child approaches his or her 18th birthday, this bill  
          would also require counties to provide information to the  
          youth regarding federal requirements for establishing  
          continuing disability as an adult in order to sustain  
          SSI/SSP benefits, as well as ways to change representative  
          payee or to become one's own payee as an adult.  When no  
          appropriate party is available to serve as representative  
          payee, the county shall continue to offer to serve such a  
          function for the foster child as an adult.

          Current law allows a foster youth beyond 18 to continue to  
          receive foster care benefits during that year if the youth  
          is attending high school or in training on a full-time  




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          basis. The bill also adds similar eligibility beyond the  
          age of 18 when the person is in the process of pursuing a  
          high school equivalency certificate.

          Finally, this bill contains a variety of findings and  
          declarations including a declaration that the legislature  
          intends to enact legislation relating to educational  
          opportunities and resources for foster youth through the  
          education of judges and lawyers who have contact with the  
          youth to inform them of their rights and access to  
          resources.

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee  
          analysis, costs of this bill range from $100,000 for DSS to  
          convene a workgroup and publish best practice guidelines to  
          an annual unknown increase in costs to conduct  SSI/SSP  
          related eligibility work.  In addition, there are unknown  
          but significant on-going increases in SSI/SSP benefits to  
          the extent this bill adds new clients to this program.   
          There may be off-setting savings to the extent that SSI/SSP  
          benefits improve outcomes for current and former foster  
          youth.

                            BACKGROUND AND DISCUSSION  

          The author cites a 2002 DSS statistic that only 3% of the  
          85,000 children receiving federal SSI/SSP benefits are in  
          the foster care system.  She argues there are undoubtedly  
          more eligible children in foster care for whom no one has  
          focused the time and energy on reviewing their possible  
          eligibility.  Not only would their status on SSI/SSP  
          decrease state and local governments share of cost of  
          support, but some of the funds (up to $2000) to which these  
          children are entitled could be accumulated in a bank  
          account to help them become established in community living  
          once they reach the age of majority.  This bill is designed  
          to highlight the problem and some possible solution through  
          the development of "best practices" guidelines to be used  
          by counties in the future to do a better job of assisting  
          these children and youth as they emancipate into adulthood.
           
          Comments:
           




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          1.  Although it is implied throughout this bill, nowhere is  
          there a clear policy statement that the funds identified  
          belong to the youth.  At age 18, should not the  
          emancipating foster youth know and be entitled to take  
          their money if they so desire?  Should not this bill be  
          amended to make the rights of the now adult former foster  
          child clear?

          2.  There are a variety of bureaucratic requirements  
          associated with the federal SSI/SSP program to which a  
          recipient can be held financially responsible after the  
          fact and become subject to overpayment payback  
          requirements.  Especially in the case of foster children  
          who are minors, they can face penalties over something  
          someone else, in this case the county welfare department,  
          may have done on their behalf but done incorrectly. Should  
          not this bill make explicit the need to inform emancipating  
          youth what course they can take if they are sanctioned in  
          the future for something that occurred while they were  
          minors?

           Assembly votes:
           Assembly Human Services  6-1 
          Assembly Appropriations  13-5
          Assembly Floor      52-26

                                    POSITIONS  

          Support:  California Coalition for Youth
                    National Center for Youth Law
                    AFSCME
                    Children's Advocacy Institute
                    National Association of Social Workers,  
          California Chapter

          Oppose:None received






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