BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 2129                                      
          A
          AUTHOR:        Bass                                         
          B
          VERSION:       June 2, 2010 
          HEARING DATE:  June 10, 2010                                
          2
          FISCAL:        Appropriations                               
          1
                                                                      
          2
          CONSULTANT:                                                 
          9
          Park
                                        
                                     SUBJECT
                                         
                   Foster care: residentially based services

                                     SUMMARY  

          Extends to July 1, 2014, the deadline for the Department of  
          Social Services (DSS) to develop a plan to transform the  
          current statewide system of group homes into a system of  
          residentially based services. Requires DSS to conduct a  
          review of the county residentially based services program,  
          as specified, and allows DSS to terminate the county's  
          participation in the residentially based services reform  
          project for specified reasons. Provides that voluntary  
          agreements between counties and private nonprofit agencies  
          to test alternative program design and funding models for  
          transforming individual group home programs into  
          residentially based services programs terminate on or  
          before January 1, 2015.
          
                                     ABSTRACT  

          Existing law:
          
          1.Provides for the establishment and support of a statewide  
            child welfare system through the Department of Social  
                                                         Continued---



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            Services (DSS) and county welfare departments. Includes  
            services related to foster care placement of dependent  
            children.

          2.Requires children removed from their parents for abuse or  
            neglect to be placed in one of various placements,  
            including a licensed group home.  Provides for the  
            licensing and regulation of community care facilities,  
            including group homes, by DSS.

          3.Provides for the Aid to Families with Dependent  
            Children-Foster Care (AFDC-FC) program, which provides  
            for the funding of foster care placements through a  
            combination of federal, state, and county funds.   
            Establishes rates of care for children placed in licensed  
            or approved family homes and group homes.

          4.Requires DSS to convene a workgroup of designated public  
            and private stakeholders to develop a plan for  
            transforming the current system of group care for foster  
            children or youth, and for children with serious  
            emotional disorders into a system of residentially based  
            services, as defined.  Requires DSS, by January 1, 2011,  
            to provide a copy of the plan developed by the workgroup  
            to the Legislature.

          5.Requires DSS to encourage counties and private nonprofit  
            agencies to develop voluntary agreements to test  
            alternative program design and funding models to achieve  
            specified objectives. Authorizes voluntary agreements  
            between counties and nonprofit agencies to transfer all  
            or part of an existing group home program into a  
            residentially based services program, if specified  
            conditions are met, and provides that such agreements are  
            valid for a period not to exceed five years, from January  
            1, 2008.

          6.Authorizes DSS to waive otherwise applicable regulatory  
            provisions and approve alternative funding models, in  
            order to facilitate implementation of these agreements.  
            Requires the waiver and alternative funding model to be  
            cost neutral to the General Fund for payments under the  
            AFDC-FC program, measured on an annual basis. Permits  
            higher AFDC-FC payments to be made when children or youth  
            are initially placed in a residentially based services  




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            program, with savings to be offset through shorter  
            lengths of stay in foster care or reduction of reentries  
            into foster care, through pre-discharge and  
            post-discharge support.

          This bill:

          1.Extends from January 1, 2011, to July 1, 2014, the  
            deadline for DSS to develop a plan to transform the  
            current statewide system of group homes into a system of  
            residentially based services.

          2.Provides that voluntary agreements between counties and  
            private nonprofit agencies to test alternative program  
            design and funding models for transforming individual  
            group home programs into residentially based services  
            programs terminate on or before January 1, 2015.

          3.Requires any upfront costs for the project to be offset  
            by other program savings identified by DSS to ensure that  
            there are no net General Fund costs in each fiscal year,  
            and clarifies that the authority to make higher AFDC-FC  
            payments for children and youth enrolled in a  
            residentially based services program is not affected by  
            changes made to payments to group homes under current  
            law.

          4.Requires DSS to conduct a review of the county  
            residentially based services program no sooner than 18  
            months after the first child is enrolled in the program,  
            to determine whether children are moving from  
            residentially based services group residential care  
            facilities into lower levels of care or exiting from  
            foster care to permanent families in a timely manner, as  
            described in the county's approved residentially based  
            services plan.

          5.Allows DSS to terminate the county's participation in the  
            residentially based services reform project with 60 days  
            advance notice to the county, if DSS determines, based on  
            its review, that the county is not achieving timely  
            movement into lower levels of care, or exits from foster  
            care to permanent families with associated savings.
                                         





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                                 FISCAL IMPACT  

          According to the Assembly Appropriations Committee  
          analysis, the original cost for the project was estimated  
          to be in excess of $250,000 for DSS to collaborate with  
          stakeholders to develop an alternative to the current group  
          home system and to report to the Legislature annually on  
          the progress being made toward developing an alternative  
          system.  The analysis states that delaying the completion  
          date for the project should not increase costs and may  
          allow DSS to secure funding for the effort from private  
          foundations, thus saving state General Fund dollars.

          Recent amendments added a requirement for DSS to conduct a  
          review of the county residentially based services program.   
          The cost of this requirement has not yet been analyzed by a  
          fiscal committee.


                            BACKGROUND AND DISCUSSION  

          Author's statement
          The author states that this measure would amend provisions  
          of legislation enacted in 2007 (AB 1453 (Soto), Chapter  
          466, Statutes of 2007), which was intended to begin the  
          reform of the role of group homes in California's foster  
          care system, beginning with the development of  
          demonstration projects for residentially based services  
          (RBS) in four counties.  The author believes that it is  
          necessary to update the deadlines and other provisions of  
          the original 2007 legislation, in order to allow this  
          reform effort to continue to move forward and to  
          facilitate the implementation of the RBS demonstration  
          projects.

          The author notes there was a delay in DSS developing the  
          proper mechanism for receipt of private funding, resulting  
          in the delay in starting the project and the need for  
          additional time to accomplish the project's goals.

          Framework for residentially based services
          In the spring of 2005, the California Alliance of Child and  
          Family Services, the sponsor of both AB 1453 and this  
          measure, convened a workgroup of youth, child and family  
          advocates, public and private agencies, and service  




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          providers to meet monthly to develop a consensus for  
          improving the quality and effectiveness of group home  
          services and clarifying the role of these services within  
          the foster care system.  From this process, the Alliance  
          released the "Framework for a New System for  
          Residentially-Based Services in California" in March 2006.   
          The framework document "provides for a system of  
          residentially based services designed to enhance services  
          and expedite permanent family placement for children  
          receiving group home care by reforming the way group homes  
          are utilized, the range of services they offer and how they  
          are reimbursed for these services." 

          Under the RBS model, providers are authorized to provide  
          the range of behavioral and/or therapeutic interventions  
          necessary to overcome major obstacles preventing children  
          from living safely in their own homes or other stable  
          family setting, including two new categories of services  
          that providers are not authorized or funded to deliver  
          under the existing traditional model for group homes in  
          California.  These are family support services while the  
          children are in residential care to prepare families to be  
          able to successfully care for their children when they are  
          discharged, and post-discharge services necessary to make  
          sure that children are able to remain with their families  
          after they leave residential treatment.

          AB 1453 required DSS to convene a workgroup of  
          stakeholders, which would be responsible for developing an  
          operational plan for implementing RBS programs on a  
          statewide basis and submitting that plan to the Legislature  
          by January 1, 2011.  In order to obtain knowledge and  
          experience upon which to base this operational plan for  
          statewide implementation of RBS programs, AB 1453  
          authorized DSS to select up to four counties (or consortia  
          of counties) to enter into voluntary agreements with  
          private nonprofit agencies to test alternative program  
          designs and funding models for transforming their existing  
          group homes into RBS programs.  AB 1453 authorized these  
          voluntary agreements to be valid for a period of up to five  
          years, starting January 1, 2008.

          Progress on AB 1453
          According to the author and supporters, though the  
          solicitation and selection of participating counties by the  




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          State, the solicitation and selection of participating  
          providers by the counties, and the review and approval of  
          county-provider and State-county agreements (including  
          requests for waivers) have been time-consuming,  
          implementation is now moving ahead rapidly.

          The author and sponsor state that DSS has approved four  
          sites for the development of RBS demonstration projects:   
          Los Angeles, Sacramento, San Bernardino, and San Francisco  
          counties.   These four sites are working in partnership  
          with a total of ten nonprofit agencies to develop RBS  
          program designs and funding models.  County-provider  
          agreements have been finalized for Los Angeles and San  
          Bernardino counties and submitted to DSS for final  
          approval, which is anticipated shortly.  It is anticipated  
          that the first children may be placed into these RBS  
          demonstration programs by July 1.  County-provider  
          agreements are now in the final stages of development in  
          Sacramento and San Francisco counties.

          The author notes that many of the workload tasks that DSS  
          and the counties would otherwise have been required to  
          accomplish with their own limited staff resources have been  
          performed over the past two years by consultants paid for  
          by Casey Family Programs, which has made a multi-year  
          commitment to provide financial support for the  
          administrative costs associated with California's RBS  
          reform, including an evaluation.  While costs were funded  
          by Casey Family Programs, the consultants were selected by  
          DSS and the participating counties, and included a number  
          of retired State and county staff.

          Arguments in support
          The California Alliance of Child and Family Services, the  
          sponsor of the measure, states that the timeframes in AB  
          1453, which developed the RBS demonstration project, were  
          overly optimistic, but the implementation is now moving  
          ahead rapidly.  The County Welfare Directors Association of  
          California states that progress is being made on this  
          issue, and it is reasonable to provide DSS with extra time  
          to ensure a comprehensive plan is submitted.

          The Los Angeles County Office of Education writes that the  
          bill would give the RBS demonstration projects adequate  
          time to operate and to provide knowledge and experience  




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          upon which to develop an operational plan for the statewide  
          implementation of these programs.  The American Federation  
          of State, County and Municipal Employees states that the  
          measure is a step in the right direction, as the state  
          should begin moving away from placing children in group  
          homes and emphasize a new vision of care that will focus on  
          the therapeutic nature of a family-based living  
          environment.

          Related/prior legislation
          AB 1453 (Soto), Chapter 466, Statutes of 2007, added the  
          provisions directing DSS to convene a workgroup to develop  
          a plan to transform the current statewide system of group  
          homes into a system of residentially based services and, in  
          the interim, permit some counties to enter into voluntary  
          agreements with private nonprofit agencies to transform  
          individual group home programs.


                                   PRIOR VOTES
           
          Assembly Floor:     74 - 0
          Assembly Appropriations:15 - 0
          Assembly Human Services:6 - 0

                                    POSITIONS  

          Support:  California Alliance of Child and Family Services  
          (sponsor)
                    American Federation of State, County and  
          Municipal Employees
                    Aspiranet
                    County Welfare Directors Association of  
               California
                    Los Angeles County Office of Education

          Oppose:None received 



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