BILL ANALYSIS
AB 154
Page 1
ASSEMBLY THIRD READING
AB 154 (Evans)
As Amended April 14, 2009
Majority vote
HUMAN SERVICES 7-0 APPROPRIATIONS 17-0
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|Ayes:|Beall, Ammiano, Tom |Ayes:|De Leon, Nielsen, |
| |Berryhill, Hall, Logue, | |Ammiano, |
| |Portantino, Torres | |Charles Calderon, Davis, |
| | | |Duvall, Fuentes, Hall, |
| | | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, |
| | | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Krekorian |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Conforms state law to new federal requirements related
to the adoption assistance program. Specifically, this bill :
1)Requires, in conformity with federal law, that any savings
from recent changes in eligibility for federal funding to
support adoption assistance payments must be spent for the
provision of foster care and adoption services.
2)Adds to existing requirements for disclosures from the
department or licensed adoption agency to prospective adoptive
families the requirement to inform the family of their
potential eligibility for state and federal tax credits.
EXISTING FEDERAL LAW :
1)Requires states that receive funding for foster care and
adoption assistance under Title IV-E of the Social Security
Act to enter into specified agreements with adoptive parents
of children with special needs. 42 United States Code (USC)
673(a)(1)(A) Requires state plans for the provision of foster
care and adoption assistance to include assurances that the
state will inform any individual who is or is considering
adopting a child in foster care of potential eligibility for a
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federal tax credit. 42 USC 671(a)(33).
2)Allows states to make adoption assistance payments to adoptive
parents of a child with special needs, as defined. 42 USC
673(a)(1)(B) Specifies that the amount of assistance payments
shall be determined through agreement between the adoptive
parent(s) and the state or local agency, with consideration of
the circumstances of the adopting parent(s) and needs of the
child. 42 USC 673(a)(2)(D).
3)Defines children eligible for federal financial participation
in adoption assistance payments as those who would have met
the requirements of the Aid to Families with Dependent
Children (AFDC) program as it was in effect in 1996, among
other basis for eligibility. 42 USC 673(a)(2)(A). Broadens
eligibility requirements to phase-out this link to 1996 AFDC
standards by age-group over a period from the year 2010 until
it is eliminated in 2018, and to provide additional exceptions
that begin in 2010. 42 USC 673(e).
4)Requires states to spend an amount equal to savings in state
expenditures due to the above changes in federal eligibility
for adoption assistance support on the provision of child
welfare services to children and families, including
post-adoption services. 42 USC 673(a)(8). Requires states to
also expend adoption incentive payments on child welfare
services to children and families, including post-adoption
services. 42 USC 673b(f).
EXISTING STATE LAW :
1)Establishes the Adoption Assistance Program (AAP) with the
intent to reduce the number of children in foster care and
provide stable, secure homes for children who meet specified
eligibility requirements. Welfare and Institutions Code (WIC)
16115.5; 16120 Specifies that the amount of adoption
assistance benefit, if any, shall be negotiated based on the
needs of the child and circumstances of the family and
included in an adoption assistance agreement. WIC 16119
(d)(1); WIC 16120.05.
2)Requires the department or licensed adoption agency receiving
application for adoption of a child potentially eligible for
AAP benefits to provide the prospective adoptive family with
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written information on AAP benefits and other information, as
specified. WIC 16119(a)
3)Specifies the intent of the Legislature to reinvest any
incentive payments received through the Adoption and Safe
Families Act of 1997 (P.L. 105-89) into the child welfare
system in order to provide adoption services. WIC 16131.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)The current requirement that federal eligibility for AAP be
contingent on AFDC eligibility requirements will be fully
phased out by October 2018. At that point, the state will be
drawing down an additional $60 million in federal Title IV-E
funding. Under this bill and the requirements of federal law,
$50 million in additional General Fund will be reinvested in
the foster care and adoptions programs.
2)Workload associated with informing adoptive parents of the
available state and federal tax credits should be minor and
absorbable within existing resources.
COMMENTS : The changes proposed by this bill are necessary to
conform state law to new federal requirements created by the
Fostering Connections to Success and Increasing Adoptions Act of
2008 (P.L. 110-351) (Fostering Connections Act).
AAP in California : California's AAP was created to reduce the
number of children in foster care and help to provide stable,
secure adoptive homes for eligible children. In 2007-08,
California provided adoption assistance benefits on behalf of an
average monthly caseload of nearly 77,000 children with special
needs. The amount of AAP support is based on the child's needs
and family's circumstances, with eligibility periodically
reassessed. Payments continue until the child reaches age 18,
unless a mental or physical disability creates eligibility until
the age of 21. For children who are federally eligible, the
costs of AAP benefits are shared among the federal government,
state and relevant county. For children who are not
federally-eligible, the costs are shared by the state and county
only.
Recent changes allow federal support of adoption assistance for
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more children with special needs and require reinvestment of
resulting savings to the state : A child adopted from foster
care today is eligible for federal financial participation in
adoption assistance benefits if, among other requirements, the
home the child was removed from has an income that meets the
state's AFDC income eligibility standard that was in place on
July 16, 1996 (without taking into account inflation). One of
the major changes created by the Fostering Connections Act is
the gradual (between federal fiscal years 2010 and 2018, phased
in by age group) de-linking of a child's eligibility for federal
adoption assistance from these outdated AFDC income
requirements. As a result, the Fostering Connections Act will
increase the number of children with special needs who can be
adopted with federal support.
Beginning October 1, 2010, children adopted at age 16 or over
will no longer need to meet the old AFDC standard. By 2018, the
"look-back" to old AFDC standards as a basis for federal
financial participation will be phased out completely.
Beginning October 1, 2010 the Fostering Connections Act also
creates exceptions to the old AFDC eligibility standard for
children who have spent extended time in foster care (more than
five years) or who are to be adopted together with a sibling who
is eligible for federal support. In addition, children who are
eligible for Supplemental Security Income benefits based solely
on the medical and disability requirements are considered
children with special needs and eligible for adoption
assistance.
The Fostering Connections Act requires states to spend an amount
equal to the savings in state expenditures due to changed
eligibility for federal financial participation in adoption
assistance payments on the provision of services to children or
families, including post-adoption services. Provisions of AB
154 conform state law to this requirement without offering any
specific guidance about how those funds shall be used (e.g. in
which programs or services).
Related legislation : Several bills introduced this session
include provisions to implement various sections of the federal
Fostering Connections Act, including AB 12 (Beall and Bass), AB
938 (Committee on Judiciary), AB 1067 (Brownley), AB 500
(Conway), AB 770 (Torres) and AB 1402 (Bass). Most relevant to
AB 154 is SB 597 (Liu), which contains a provision that is
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substantially similar to the tax credit disclosure provision of
AB 154.
AB 47 (Ma and Niello) of 2008, would increase the amount of
adoption-related tax credits available to Californians who adopt
foster youth aged 12 or older or who were recently living in a
group home or residential treatment facility. AB 47 has been
referred to the Committee on Revenue and Taxation.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089
FN: 0001187