BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1758
                                                                  Page  1

          Date of Hearing:   August 16, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                  SB 1758 (Figueroa) - As Amended:  August 7, 2006 

          Policy Committee:                              JudiciaryVote:7 -  
          2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill strengthens the regulation of adoption facilitators.  
          Specifically, this bill: 

          1)Increases the surety bond that adoption facilitators are  
            required to maintain from $10,000 to $25,000.

          2)Requires the Department of Social Services (DSS) to create and  
            maintain a statewide adoption facilitator registry.

          3)Authorizes DSS to adapt the existing registry process it uses  
            for adoption service providers.

          4)Requires adoption facilitators to provide DSS with a  
            disclosure form containing information about their educational  
            background and identity, including fingerprint cards.

          5)Authorizes DSS to submit the fingerprint cards to the  
            Department of Justice for a criminal background check.

          6)Requires DSS to post on its Internet Website information that  
            shows whether an adoption facilitator is in compliance with  
            registration and bond requirements.

          7)Prohibits adoption facilitators from using a photolisting to  
            advertise minor children available for adoption.

          8)Allows DSS to impose fees that cover the costs of implementing  
            this legislation.

           FISCAL EFFECT  








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          Implementing this legislation would likely cost approximately  
          $250,000 a year.  According to information provided by the  
          author, there are currently 50 adoption facilitators in  
          California.  In order to offset the costs of this legislation,  
          each facilitator would need to be charged an annual fee of  
          $5,000.
           
          COMMENTS  


           1)Rationale.   The intent of this legislation is to increase  
            consumer protections for families that use adoption  
            facilitators for private adoption.  According to the author,  
            adoption facilitators play a significant role in the adoption  
            process but receive little oversight and regulation. Existing  
            requirements of a $10,000 bond and valid business license are  
            insufficient to provide consumers with adequate protection as  
            "[m]ost facilitators charge more than double the bond amount."  
             This bill comes as a response to consumer complaints.


           2)Background  . Couples seeking to adopt have several options,  
            among them proceeding through a state licensed adoption agency  
            or adoption facilitator. Adoption facilitators are not  
            currently licensed by the state and are subject only to a  
            $10,000 bonding requirement. These facilitators locate  
            children available for adoption and act as intermediaries in  
            the adoption process, all for a substantial fee. Current  
            regulations concerning adoption facilitators were enacted in  
            1996 and remain in their original form. 


            Last year, Napa police raided a local adoption facilitator  
            that purported to offer Kazak, Russian, Vietnamese, Ukrainian  
            and Guatemalan children. The raid was prompted by reports that  
            the facilitator had defrauded several families out of  
            thousands of dollars. Further investigation revealed numerous  
            stories of families who were shown videos of foreign children,  
            only to later find out that those children did not exist or  
            were not available for adoption in that country. Some of these  
            individuals spent over $30,000 in fees and travel costs to go  
            see what they thought would be their adopted child. Many  
            families were either told the child was not available or  
            presented with alternate children to adopt. Other families,  








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            however, were satisfied, and received children through this  
            facilitator. 


           3)Related Legislation  .


             a)   SB 1393 (Florez), would create an expedited procedure  
               for intercountry adotions. (This bill is set to be heard in  
               this committee today.) 


             b)   SB 2035 (Killea), Chapter 1135, Statutes of 1996,  
               enacted current regulations concerning adoption  
               facilitators including the $10,000 bond. 


             c)   SB 1674 (Scott), 2002, would amend existing law  
               concerning advertisement and disclosure by facilitators.  
               (Held in the Senate Judiciary Committee.) 


             d)   AB 550 (Zettel), 2001 would prohibit a court from making  
               an order of adoption before home-study performed. (Held in  
               the Senate Judiciary Committee.) 


           



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081