BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1743
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1743 (Judiciary Committee)
          As Amended June 20, 2005
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |77-0 |(April 28,      |SENATE: |34-0 |(August 15,    |
          |           |     |2005)           |        |     |2005)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:   JUD.  

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

          1)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  
            (LCSA) for child support services, to include not only  
            federally funded foster care cases, but all other foster care  
            cases, as well as Kinship Guardianship Assistance Payment  
            Program (Kin-GAP) cases.

          2)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 LCSA for child support  
            collection, coinciding with required California Work  
            Opportunity and Responsibility to Kids (CalWORKs) and  
            foster-care eligibility redeterminations.

           The Senate amendments  clarify that the family  
          reunification-child support compromise program applies to  
          CalWORKs cases where the child is subject to the jurisdiction of  
          the juvenile court under Welfare & Institutions Code Section 300  
          and has been removed from the parental home and placed with a  
          caretaker relative by court order.

           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  








                                                                  AB 1743
                                                                  Page  2

             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.  

          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 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.  
              

          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  
             refer a case to an LCSA for establishment of a support order  
             for the reimbursement of public assistance (AFDC-FC).  

          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,  
             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.  

          6) States the legislative intent that 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.  

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar,  
          except as set forth above.









                                                                  AB 1743
                                                                  Page  3

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

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

          In addition to the provisions regarding arrearage collections,  
          AB 1449 also allows 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 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 requires six-month reviews, was already enacted.   
          This bill would align the review periods, eliminating  
          unnecessary work and providing for greater case management  
          efficiency.









                                                                  AB 1743
                                                                  Page  4

          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  
          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 had not been compromised, although DCSS 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, this  
          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 this 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."

           








                                                                 AB 1743
                                                                  Page  5

          Analysis Prepared by  :    Leora Gershenzon / JUD. / (916)  
          319-2334 


                                                               FN: 0011646