BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1743
                                                                  Page  1

          Date of Hearing:   April 12, 2005

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Dave Jones, Chair
             AB 1743 (Committee on Judiciary) - As Introduced:  March 2,  
                                        2005

                                  PROPOSED CONSENT

           SUBJECT  :   CHILD SUPPORT:  COMPROMISE of CalWORKs and  
          Foster-Care Debt for Reunited Families

           KEY ISSUE  :   In order to facilitate family reunification and  
          help keep children close to their families, should the child  
          support compromise program for PARENTS OF children in foster  
          care be expanded to include all foster care CASES, as well as  
          Kin-GAP CASES WHERE CHILDREN ARE PLACED WITH relative  
          caregivers?

                                      SYNOPSIS

          This non-controversial Committee bill, sponsored by the County  
          Welfare Directors Association of California, seeks to clean-up  
          and expand the program established by AB 1449 in 2001 to limit  
          child support collection from parents with children in foster  
          care if such collection efforts would interfere with  
          reunification efforts.  This bill would (1) clarify code section  
          references to ensure that the law applies to all types of foster  
          care placements, not just federally funded foster care; (2)  
          align required periodic reviews with the annual eligibility  
          redeterminations now required for CalWORKs and foster care; and  
          (3) expand the program to include cases under the Kinship  
          Guardianship Assistance Payments Program (Kin-GAP).  Under  
          Kin-GAP, relatives can assume permanent guardianship of children  
          in their care and receive financial assistance.  Kin-GAP not  
          only saves the state, counties and the courts money by  
          dismissing the dependency court case and eliminating case  
          management for the child welfare department, but it also helps  
          preserve ties between a child and his or her family since the  
          child is placed with a relative.  The Family Law Section of the  
          State Bar supports this bill, and there is no known opposition.

           SUMMARY  :   Cleans-up and expands the family reunification-child  
          support compromise program for foster care cases.  Specifically,  
           this bill  :  








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          1)Requires the Department of Social Services (DSS), in  
            consultation with the Department of Child Support Services  
            (DCSS), to establish regulations by which the county welfare  
            department can determine if it is contrary to the best  
            interests of a child to refer his or her case to the local  
            child support agency for child support services, to include  
            not only federally funded foster care cases, but all other  
            foster care cases, as well as Kin-GAP cases.

          2)Requires the county child welfare department to review  
            annually the determination that it is contrary to the best  
            interest of the child to refer his or her case to the local  
            child support agency for child support collection, coinciding  
            with required CalWORKs and foster-care eligibility  
            redeterminations.



           EXISTING LAW  :

          1) Requires DCSS to establish regulations for the compromise of  
             child support arrearages owed as reimbursement for public  
             assistance when the child is returned to the custody of the  
             obligor in either of the following circumstances:  (a) the  
             child had been adjudged a dependent of the juvenile court,  
             but has since been reunified with the obligor pursuant to an  
             order of the juvenile court; or (b) the child had been placed  
             with a guardian or relative caregiver, who received public  
             assistance for the child, and the child has since been  
             returned to the home of the obligor.  (Family Code Section  
             17550.)

          2) Provides that the compromise is only appropriate where the  
             obligor parent has an income less that 250% of the federal  
             poverty level, and the local child support agency (LCSA)  
             determines, pursuant to regulations, that the compromise is  
             necessary for the support of the child.  Prior to  
             compromising the debt, the LCSA is required to consult with  
             the county child welfare department.  (Family Code Section  
             17550.)

          3) Requires DSS to establish regulations by October 1, 2002,  
             defining cases in which it would be contrary to the best  
             interest of the child for the county welfare department to  








                                                                  AB 1743
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             refer a case to an LCSA for establishment of a support order  
             for the reimbursement of public assistance (AFDC-FC).   
             (Family Code Section 17552.)

          4) Requires DSS and DCSS to report to the Governor and the  
             Legislature on the results of foster care-child support  
             collection limitation program no later than October 1, 2003.   
             (Uncodified Section 5, AB 1449 (Keeley), Chapter 463 of the  
             Statutes of 2001.)

          5) Directs DCSS to establish a compromise of arrears program for  
             compromise of state-owed child support arrears for obligors  
             who are unable to pay their child support debt.  (Family Code  
             Section 17560.)

          6) States the legislative intent that the Kinship Guardianship  
             Assistance Payment Program (Kin-GAP) is intended to enhance  
             family preservation and stability by recognizing that many  
             children are in long-term, stable placements with relatives,  
             that these placements are the permanent plan for the child,  
             that dependencies can be dismissed with legal guardianship  
             granted to the relative, and that there is no need for  
             continued governmental intervention in the family life  
             through ongoing, scheduled court and social services  
             supervision of the placement.  (Welfare & Institutions Code  
             Section 11361.)

           FISCAL EFFECT  :   As currently in print, this bill is keyed  
          fiscal.

           COMMENTS  :   This bill seeks to clean-up and expand the program  
          to limit child support collection from parents with children in  
          foster care if such collection efforts would interfere with  
          reunification efforts.  According to the author:

               Child support obligations can make it difficult for  
               parents of children in foster care to successfully  
               reunify with their children.  This, in turn, can  
               result in longer stays in foster care, increasing both  
               the trauma to children and the costs to the state and  
               counties.  AB 1449 (Kelley), Chapter 463 of the  
               Statutes of 2001, made reunification easier by  
               alleviating some of the burden of reimbursing the  
               state for public assistance when a child has returned  
               to the home of the obligor and the reduction of the  








                                                                  AB 1743
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               payments is necessary to help the parent or guardian  
               support the child.

          In addition to the provisions regarding arrearage collections,  
          AB 1449 also allowed county child welfare agencies to decide  
          up-front to forego the commencement of child support, if it is  
          determined that the collection of child support would conflict  
          with reunification efforts. 

          This bill seeks to clean-up and expand AB 1449 (Keeley) in three  
          areas to ensure the goals of that legislation are achieved.   
          First, this bill would clarify code section references to make  
          clear that the law applies to all types of foster care  
          placements, not just federally funded foster care.  There is no  
          policy rational for applying the program to only parents with  
          children in federally funded foster care, rather it appears to  
          have been an oversight in the original legislation.  

          Second, this bill would align required periodic reviews with the  
          annual eligibility redeterminations now required for CalWORKs  
          and foster care under Welfare & Institutions Code Sections 11265  
          and 11401.5.  Those review periods just changed last year, after  
          AB 1449, which required six-month reviews, was already enacted.   
          This bill would align the review periods, eliminating  
          unnecessary work and providing for greater case management  
          efficiency.

          Finally, this bill would expand the program to include Kin-GAP.   
          Under Kin-GAP, relatives can assume permanent guardianship of  
          children in their care and receive financial assistance.   
          Kin-GAP not only saves the state, counties and courts money by  
          dismissing the dependency court case and eliminating case  
          management for the child welfare department, but it also helps  
          preserve ties between a child and his or her family since the  
          child is placed with a relative.  Requiring child support in  
          Kin-GAP cases may make a relative who is considering whether to  
          assume the guardianship of a child reluctant to become a  
          guardian.  This bill would put Kin-GAP cases on par with foster  
          care cases and help keep children close to their families.

          The original legislation required both DCSS and DSS to report  
          results of the program to the Legislature by October 1, 2003.   
          DSS, which has only just now promulgated regulations to begin  
          the program, has not yet done a study.  DCSS reported that from  
          October 2002 - June 2004 through the Family Reunification  








                                                                  AB 1743
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          Compromise of Assigned Arrearages Program it approved 3,137  
          applications for compromise.  The total amount compromised was  
          nearly $18 million.  These cases include federal and state  
          foster care cases, as well as Kin-GAP cases.  DCSS was unable to  
          provide data indicating how much might have been collected if  
          the arrearages have not been compromise, although the department  
          suggests that would have been a very low amount, or what affect  
          the compromise program has had on family reunification, although  
          anecdotally it appears to be effective.

          The County Welfare Directors Association of California, the  
          bill's sponsor, finds that this bill is necessary to clean-up  
          consensus items identified by county welfare departments and DSS  
          as they worked to implement AB 1449:  "AB 1743 will provide the  
          necessary clarifications to enable CDSS and the county child  
          welfare agencies to fully implement the intent of AB 1449."

          The Family Law Section of the State Bar supports the bill,  
          holding that the policy of the reunification program is to "not  
          burden parents with child support (that is probably  
          uncollectible) who are in the process of reunification with  
          their children.  The bill extends the law to KIN GAP where a  
          relative such as a grandmother is receiving money to care for a  
          child while the parent is rehabilitated.  The family law section  
          supports this policy."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County Welfare Directors Association of California (sponsor)
          Family Law Section of the State Bar of California

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Leora Gershenzon / JUD. / (916)  
          319-2334