BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 665
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 665 (Torrico)
          As Amended  July 23, 2009
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(June 1, 2009)  |SENATE: |36-0 |(September 1,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    HUM. S.  

           SUMMARY  :  Expands the use of Improving Adoption Incentive bonus  
          dollars.  Specifically,  this bill :  

          1)Expands, from only "adoptions" to "any legal permanency  
            outcome," the number of ways the state is allowed to expend  
            federal Improving Adoption Incentive bonus dollars.  Legal  
            permanency outcomes would include, but not be limited to,  
            adoption, guardianship and reunification.

          2)Specifies that the bonus dollars be appropriated continuously  
            to the Department of Social Services (DSS) for allocation to  
            counties or to the department for counties in which DSS serves  
            as the adoption agency, regardless of the fiscal year, based  
            on documented legal permanency outcomes for older children in  
            each county.

          3)Requires counties or DSS to expend incentive bonuses to  
            improve or sustain legal permanency outcomes for older  
            children.

          4)Updates the name, from Adoption Promotion Act of 2003 to the  
            Fostering Connections to Success and Increasing Adoptions Act  
            of 2008 (Fostering Connections Act), of the federal  
            legislation that authorized the adoption incentive payments to  
            states.

           The Senate amendments  delete the provisions that:

          1)Require counties to reinvest the additional savings from  
            successful permanent placements for older children into  
            additional activities that would result in the same outcomes.

          2)Specify that the incentive payments received from the federal  








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            government would be continuously appropriated to DSS, and  
            instead, make these payments subject to the annual Budget Act  
            process.
           
          EXISTING LAW  :

          1)Provides for child welfare services, which are an array of  
            social services whose purpose is to protect and promote the  
            well-being of children, including foster care children.

          2)Creates, under the federal Fostering Connections Act, a  
            monetary incentive system for states that increase finalized  
            adoptions for foster care youth year over year, and federal  
            law specifies that these incentive dollars be reinvested back  
            into children and family services.

          3)Defines, under federal law, "older child adoption" as the  
            final adoption of a child who has attained age nine and who at  
            the time of adoptive placement, was in foster care under the  
            supervision of the state.

          4)Requires, under state law, that California reinvest the  
            federal adoption incentive funds back into the foster care  
            system "in order to provide adoption services for older  
            children."

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

          FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, the state is expected to receive approximately $1  
          million in new federal adoption incentive bonus funds.  This  
          bill would allow those funds to be spent on a broader range of  
          permanency options for older foster children.

           COMMENTS  :  According to the author, at any given time,  
          approximately 45,000 (60%) of all foster youth in California are  
          nine years of age or older.  It is well documented that as a  
          foster youth ages, he or she is less likely to find a permanent  
          home.  What is also well documented is that high percentages of  
          foster youth who do not find a permanent family, exit foster  
          care, and may find themselves homeless and/or incarcerated.  

          This bill seeks to ensure that federal incentive payments  
          awarded to California for its successful efforts in increasing  








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          the number adoptions of foster youth, ages nine or older, will  
          be distributed to counties to fund additional activities that  
          would further increase permanent homes for this group of  
          children.  The incentive dollars may be used for services such  
          as post adoption services, family finding to locate relatives,  
          guardianship recruitment of adoptive families who will make  
          homes for entire sibling sets, preparing youth for permanency,  
          and numerous other services for children and family.  The author  
          believes that the current language in statute needs to be  
          aligned with recent changes in federal law.

            Adoption Incentive Grant program:  In October of 2008, President  
          Bush and Congress passed some of the most significant foster  
          care legislation in recent time.  The Fostering Connections to  
          Success and Increasing Adoptions Act (Act), among other  
          important provisions, renewed the 11-year-old federal Adoption  
          Incentive Grant Program (Program).  The Program was created to  
          provide financial rewards to states for increasing numbers of  
          adoptions from foster care above established baselines.  The Act  
          made the following significant changes:

          1)Renewed the Program for five additional years;

          2)Doubled the incentive bonuses to states, from $4,000 to  
            $8,000, per adoption of older foster youth;

          3)Doubled the bonuses, from $2,000 to $4,000, for adoptions of  
            special needs foster youth;

          4)Created a $1,000 payment per foster care youth adopted that  
            exceeds the state's highest rate of all adoptions from foster  
            care; and,

          5)Updated the adoption baseline year, from 2002 to 2007, that  
            states receive incentives.

          Bonuses are calculated on the number of increased adoptions year  
          over federal fiscal year (FFY) by the incentive amount per  
          category of child (e.g., special needs foster youth, older  
          foster youth) using the Adoption and Foster Care Analysis and  
          Reporting System (AFCARS).  The federal Program stipulates that  
          the bonus money must be reinvested into services for children  
          and families and that the funds cannot be used to supplant  
          existing programs or as a match for other foster care federal  
          funds.  California would receive the bonus money one year later  








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          and will have 24 months to expend it.  The author states that  
          directing this money to counties will not create a negative  
          fiscal impact on state general funds.

          Per AFCARS, in FFY 2008, California finalized 7,580 adoptions,  
          and in FFY 2007, 7,481.  The difference represents an increase  
          of 99 more adoptions resulting in $1.093 million in federal  
          bonuses.  California would receive this money on 2009-10.

           Senate amendments
           When older children are successfully placed in permanent homes  
          not only does the child benefit but the state also realizes  
          savings by no longer having to fund the remaining years that the  
          child would have otherwise spent in foster care.  Under this  
          bill, the county would have been required to take those savings  
          and reinvest them into activities that would improve permanency  
          outcomes for other older children.  According to the author's  
          office, the deletion of this provision was necessary because it  
          implied a state mandate to track these additional savings and a  
          methodology to carry this out was not possible at this time.

           Related legislation  :  AB 12 (Beall and Bass) 2009-10 opts  
          California in to new federal laws that allow for federal  
          financial participation in kinship-guardianship assistance  
          payments, beginning   January 1, 2010, and transitional foster  
          care services for eligible youth between the ages of 18 and 21  
          years old, beginning October 1, 2010.

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


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