BILL ANALYSIS
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 154
A
AUTHOR: Evans
B
VERSION: April 14, 2009
HEARING DATE: June 23, 2009
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FISCAL: To Appropriations
5
4
CONSULTANT:
Lane
SUBJECT
Adoption assistance: federal law
SUMMARY
Conforms state law to new federal requirements related to
the adoption assistance program.
ABSTRACT
Current 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)
2)Requires state foster care and adoption plans 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 federal tax credit. 42 USC
671(a)(33)
3)Allows states to make adoption assistance payments to
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adoptive parents of a child with special needs. 42 USC
673(a)(1)(B)
4)Specifies that the amount of assistance payments shall be
determined through agreement between the adoptive parent
and the state or local agency, with consideration of the
circumstances of the adopting parent and the needs of the
child. 42 USC 673(a)(2)(D).
5)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. 42 USC 673(a)(2)(A).
6)Broadens eligibility requirements to phase-out, from 2010
to 2018, the link to 1996 AFDC standards by age-group,
and to provide additional exceptions that begin in 2010.
42 USC 673(e).
7)Requires states to spend an amount equal to savings in
state expenditures, due to changes in federal eligibility
for adoption assistance support, on providing child
welfare services to children and families, including
post-adoption services. 42 USC 673(a)(8).
8)Requires states to expend adoption incentive payments on
child welfare services to children and families,
including post-adoption services. 42 USC 673b(f).
Current 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; WIC 16120.
2)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.
3)Requires the department or licensed adoption agency
receiving application for adoption of a child potentially
eligible for AAP benefits to provide the prospective
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adoptive family with written information on AAP benefits.
WIC 16119(a)
4)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.
This bill
1)Requires the State Department of Social Services (DSS) to
act in accordance to federal law to utilize any savings
in state funds realized from the change in federal
funding for adoption assistance resulting for the
provision of foster care and adoption services.
2)Requires DSS or a licensed adoption agency inform
prospective adoptive families of their potential
eligibility for a federal and state tax credits.
3)Expresses the intent of the Legislature to conform state
statutes to the Fostering Connections to Success and
Increasing Adoptions Act of 2008, and to expend savings
resulting from changes in eligibility for adoption
assistance on services, including, but not limited to,
post-adoption assistance.
FISCAL IMPACT
According to the Assembly Appropriations Committee, changes
in federal adoption assistance will, by October 2018,
provide California an additional $60 million per year in
Title IV-E funding; this bill and federal law will require
an additional General Fund expenditure of $50 million in
foster care and adoptions programs. The Appropriations
Committee also finds minor and absorbable the workload
associated with informing adoptive parents of the available
state and federal tax credits.
BACKGROUND AND DISCUSSION
Adoption Assistance Program (AAP) in California
California's AAP was created to reduce the number of
children in foster care and help to provide stable, secure
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adoptive homes for eligible children. In 2007-08,
California provided adoption assistance benefits to 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, state, and county governments.
For children who are not federally-eligible, the costs are
shared by the state and county.
Related legislation
SB 597 (Liu) contains a provision that is substantially
similar to the tax credit disclosure provision of AB 154.
AB 47 (Ma) proposes to increase the amount of
adoption-related tax credits available to Californians who
adopt foster youth aged 12 or older or foster children who
were recently living in a group home or residential
treatment facility. The Assembly Appropriations Committee
is in possession of AB 47.
Previous votes
Assembly Floor 79-0
Assembly Appropriations 17-0
Assembly Human Services 7-0
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).
POSITIONS
Support: American Federation of State, County and
Municipal Employees
California Adoption Lawyers
California Youth Connection
County Welfare Directors Association of
California
Family Law Section, State Bar of California
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Judicial Council
Youth Law Center
Oppose: None received
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