BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 488
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          ASSEMBLY THIRD READING
          AB 488 (Torres and Hagman)
          As Amended  April 21, 2009
          Majority vote 

           HUMAN SERVICES      6-0         APPROPRIATIONS      16-0        
           
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          |Ayes:|Beall, Ammiano, Tom       |Ayes:|De Leon, Nielsen,         |
          |     |Berryhill, Logue,         |     |Ammiano,                  |
          |     |Portantino, Torres        |     |Charles Calderon,         |
          |     |                          |     |Krekorian, Duvall,        |
          |     |                          |     |Fuentes, Monning, Harkey, |
          |     |                          |     |Miller, John A. Perez,    |
          |     |                          |     |Price, Skinner, Solorio,  |
          |     |                          |     |Audra Strickland,         |
          |     |                          |     |Torlakson                 |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes the Department of Social Services  
          (department) to renew or extend for up to an additional three  
          years specified performance agreements with private, non-profit  
          agencies that serve children.

           EXISTING LAW  :

          1)Establishes a system of child welfare services, including  
            foster care, for children who have been or are at risk of  
            being abused or neglected.  Establishes foster care placement  
            options for dependents and wards placed in foster care,  
            including foster homes, relative and nonrelative extended  
            family members' homes, Foster Family Agency-supervised homes,  
            and group homes.  Sets rates of financial assistance for  
            varying caregivers and providers.  Requires documentation that  
            placement is necessary to meet treatment needs of child as  
            condition of eligibility for placement in group home.

          2)Allows counties to enter into performance agreements with  
            private, nonprofit agencies to encourage innovation, develop  
            services for children that are not available in the community  
            and promote change in the child welfare system.  Limits these  
            agreements to a period of up to three years.  Requires  
            counties to provide reports on the agreements to the  








                                                                  AB 488
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            department within three months of the end of an agreement.   
            Requires the director to make those reports available to the  
            Legislature upon request.  Welfare and Institutions Code (WIC)  
            Section 18987.61.

          3)Authorizes the director to waive regulations, except those  
            pertaining to health and safety, which govern foster care  
            payments or the operation of group homes to enable counties to  
            implement the agreements.  Allows waivers under specified  
            circumstances--when the agreement offers a worthwhile test of  
            innovation, the regulatory requirement prevents implementation  
            of the agreement and the county proposes to monitor the waiver  
            regulation via performance measures.  Requires the director to  
            notify policy and fiscal committees of the Legislature of when  
            and why a waiver of regulations was granted.  WIC Section  
            18987.62.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, negligible costs associated with this legislation.  
          Without the extension of the waiver, these children would need  
          to be placed in other group homes and residential facilities  
          that require comparable monthly payments. 

           COMMENTS  :  Authorization for the performance agreements  
          addressed by this bill was created by SB 933 (Thompson), Chapter  
          311, Statutes of 1998.  Although the department confirms that  
          Boys Republic is currently the only provider operating under a  
          waiver based on this type of agreement, there are no statutory  
          provisions that limit the agreements to Boys Republic or any  
          narrow group of providers.  SB 933 was a comprehensive bill that  
          contained many changes to the licensing, oversight, safety and  
          practice standards, and rates of payment to group homes for  
          children, in addition to creating the option for performance  
          agreements and related regulatory waivers addressed by this  
          bill.  

          Author's stated purpose for bill:  According to the author, the  
          department approved waiver applications from eight counties that  
          place youth at the main campus in Chino of a provider called  
          Boys Republic.  Boys Republic states in its letter that this  
          campus serves 140 youth between the ages of 13 and 17.  The  
          author states that "the overall goal of the waiver project is to  
          demonstrate that under a more flexible rate framework," youth  
          with complex needs placed at Boys Republic can satisfy specific  








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          performance outcome measures, including measures related to  
          community transition, educational achievement and public safety.  
           Also according to the author, a secondary goal is to  
          demonstrate that fewer staff with longer tenure and higher  
          levels of training is a cost-effective approach to providing  
          care.  

          Arguments in support of this bill:  Boys Republic states that  
          this bill is a "short-term but necessary solution to a  
          longer-term problem. . .", which allows more time for the  
          adjustment of rate structures under current law that penalize  
          large campus programs serving older adolescents.  As a result,  
          the organization states that a successful model of serving youth  
          will not have to be abandoned and higher level placements will  
          be avoided.  In its support of this bill, Los Angeles County's  
          Probation Department states that it is "extremely pleased with  
          the results of the performance agreement to date" and views Boys  
          Republic as "a valued and successful placement resource."
           
           Arguments against this bill:  In opposition, the American  
          Federation of State, County and Municipal Employees (AFSCME),  
          AFL-CIO states that "under the thin veil of innovation, this  
          bill seeks to allow private companies to provide children's  
          services to counties under less regulation than otherwise  
          allowed.  Reducing these regulations will directly affect the  
          quality of care given to this vulnerable population..."  

           
          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 



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