BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           1758 (Figueroa)
          
          Hearing Date:  5/15/06          Amended: 5/2/06
          Consultant: Nora Lynn           Policy Vote: Judiciary 3-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   
          SB 1758 requires adoption facilitators operating in California  
          to meet specified educational or experiential standards and be  
          registered by the Department of Social Services; increases the  
          amount of the surety bond they are required to post to $50,000;  
          restricts internet advertisements displaying minor children; and  
          authorizes increased civil penalties for violating these  
          requirements.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Registration           Likely less than $150; fully offset by  
          fees                   Special*
          Fraud manual           $50        $25         $25       Special*
          Task force, regulations$50        $25         $25       Special*
          Website                $50        $25         $25       Special*
          _____
          * Technical Assistance Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria to be placed on the  
          Suspense file.

          Adoption facilitators are defined in current law as persons or  
          organizations who advertise for the purpose of soliciting  
          parties to an adoption, locating children for adoption, or who  
          act as an intermediary between the parties to an adoption. They  
          are required to obtain a business license and post a $10,000  
          bond.

          SB 1758 places registration, education and increased bond  
          requirements on adoption facilitators that are somewhat  
          analogous to existing registry requirements placed on adoption  
          service providers. This bill requires adoption facilitators to  










          register with DSS by submitting: a disclosure form; proof of  
          completion of at least two years of courses with one year  
          focused on social work or a related field; a business license;  
          and government issued identification. For those who can show  
          more than five years' experience working in direct adoption  
          services, the education component is waived. In addition the  
          prospective registrant must show proof of posting a $50,000 bond  
          and submit fingerprint cards. DSS is required to post  
          information about adoption facilitators' compliance with  
          registry requirements on its website, along with an adoption  
          fraud manual, which it is also required to make available at  
          county adoption orientations. In addition, SB 1758 authorizes  
          parties aggrieved by violations of these requirements to bring  
          civil action and authorizes actual damages plus treble the  
          amount of damages or $1,000, whichever is greater, as well as  
          attorney's fees and costs.

          There are an estimated 50 adoption facilitators in California  
          who operate independently 
                                   -- continued --
          Page 2
          SB 1758 (Figueroa)


          from a licensed public or private adoption agency or an adoption  
          attorney and who would be required to register by SB 1758. Staff  
          notes that some adoption facilitators who are based outside the  
          state but who operate in California may also meet the definition  
          of "adoption facilitator" and be required to register pursuant  
          to this measure. 

          Staff estimates annual costs of less than $150,000 for the  
          department to dedicate two staff to process the registration  
          applications and bonds and address questions raised by  
          licensees, applicants and adoptive parents. These costs will be  
          fully offset by the filing fee SB 1758 authorizes the department  
          to levy on those seeking registration.

          Although SB 1758 addresses costs associated with the  
          registration system and bond processing, it does not specify how  
          other duties placed on DSS by the department -the task force,  
          preparation of a fraud manual and placing information about  
          registrants on the department's website - are to be met. STAFF  
          RECOMMENDS permitting the department to recover all costs  
          associated with the bill's requirements through annual filing  
          fees and that the fee be set by regulation.











          SB 1758 requires the department to create a task force to study  
          adoption facilitators' activities and make recommendations for  
          future legislation. It does not describe the task force's  
          membership, to whom it is to report, how often it is to meet, if  
          its members are to be paid for their time via salary or  
          reimbursement for travel and per diem, or if it is the author's  
          intention that the task force sunset once legislative  
          recommendations are made. STAFF RECOMMENDS clarifying the task  
          force's membership, to whom it is to report, how often it is to  
          meet, if its members are to receive a salary or reimbursement  
          for travel and per diem, and a sunset date.

          STAFF NOTES SB 1758 does not specify a fund for deposit of fees  
          received from potential and renewing registrants. The committee  
          may wish to create an Adoption Facilitator Fund for receipt of  
          these fees.