BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 154
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 154 (Evans)
          As Amended  September 2, 2009
          Majority vote
           
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          |ASSEMBLY:  |79-0 |(June 1, 2009)  |SENATE: |39-0 |(September 4,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    HUM. S.  

           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.

          3)Adds double-jointing language to avoid chaptering out issues  
            with SB 597 (Liu) of 2009.

           The Senate amendments  add double-jointing language to avoid  
          chaptering out issues with SB 597 (Liu) of 2009.

           AS PASSED BY TH E ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.

           FISCAL EFFECT  :  None

           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 (Fostering Connection Act) (P.L. 110-351) (Fostering  
          Connections Act).  

           The 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 adoptive homes  








                                                                  AB 154
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          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  
          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 Aid to Families with Dependent Children (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  








                                                                  AB 154
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          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).

          AB 47 (Ma and Niello) of 2009, 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 was held  
          under submission on the Assembly Appropriations Committee.

           
          Analysis Prepared by  :     Frances Chacon / HUM. S. / (916)  
          319-2089 


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