BILL ANALYSIS
AB 2206
Page 1
Date of Hearing: April 28, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2206 (Hill) - As Introduced: February 18, 2010
Policy Committee: Human
ServicesVote:5 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill expands the Foster Family Home and Small Family Home
Insurance Fund (FFH/SFH Fund) liability insurance coverage for
foster parents, to include all criminal or intentional acts
committed against a foster child, unless committed by the foster
parents themselves.
FISCAL EFFECT
1)The defendant in the Brandon S. v. The State of California
lawsuit that drives this legislation was asking for $250,000
in damages. Under this bill, it is likely that he would have
received those damages from the fund. Depending on how many
similar cases are brought forward, it could cost the fund in
excess of $200,000 per case (FFH/SFH Fund).
2)The Foster Family Home and Small Family Home Insurance Fund is
estimated to carry an on-going surplus of $4.3 million. To
the extent this legislation increases payments from the fund
to foster families or foster children, that on-going surplus
could decrease.
COMMENTS
1)Rationale . The author's intent is for this bill to increase
the protections for foster parents by allowing their liability
insurance to cover any criminal or intentional acts
perpetrated against a foster child, unless those acts are
specifically committed by the foster parents themselves.
Notably, this legislation would protect parents from liability
if their minor children commit criminal acts against foster
AB 2206
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children in their home. The author hopes that this increased
coverage and protection will help recruit and retain good
foster parents.
In addition, this bill would help ensure that a foster child,
their birth parents, or guardians, will be able to receive
payments from the fund for criminal and intentional acts
committed against the child, as long as those acts are not
committed by the foster parents.
This bill seeks to amend existing law following an Appeals
Court ruling which upheld the lower court's decision for the
defendant in the case of Brandon S. v. The State of California
ex rel. Foster Family Home and Small Family Home Insurance
Fund ((2009) 174 Cal.App.4th 815). The case concerned a
foster child who was sexually abused by the minor stepson of
his licensed foster parent. The child, Brandon S., filed a
claim with the Fund seeking damages for emotional and physical
injuries, but because the stepson admitted to the molestation
charge, Brandon's claim was denied on the basis that all
criminal and intentional acts are excluded from coverage in
statute.
According to the author of this bill, the Brandon S. case,
"changed the historic interpretation of the Fund coverage,
putting the personal assets of foster parents at risk when a
third party intentionally harms a foster child." The author
goes on to assert that, "If foster parents are held
financially responsible for any damages to the child under
their care, even if it was out of their control, it will make
it increasingly difficult for the State to recruit and retain
foster parents."
2)Background . The Fund was created by the Legislature in 1986 to
provide gap liability coverage to licensed foster family homes
and small family homes. Prior to the creation of the Fund,
licensed foster family home operators cited they were
routinely denied homeowner's and other types of insurance
based on their status as foster parents, or related
activities. The Fund, along with companion changes in policy
governing insurance coverage (INS 676.7), allowed foster
family homes indemnification for liability incurred during the
course of providing related services. This effort was aimed
at ensuring the state could recruit and retain qualified
foster family providers.
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Once licensed, a foster family home is covered by the Fund for
claims totaling up to $300,000 in a single year for valid
claims submitted by foster children or their parents or
guardians that occur as a result of the activities of the
foster parent, while the child resides in the home. The
original $300,000 cap was enacted in 1986 and has not changed
in the over twenty years since. According to DSS, in fiscal
year 2008-2009, there were 22 new claims submitted to the
Fund, of which $346,999 were paid in claim settlements. In
2009-2010 thus far, there have been 13 new claims submitted
and $115,000 has been paid in claim settlements. The Fund
averages 30-35 claim requests per year.
3)Related Legislation . SB 706 (Florez) 2004 was a DSS-sponsored
bill that would have narrowed the scope of the Fund and would
have, among other provisions, specified that losses arising
from criminal, intentional or fraudulent acts by a foster
parent or a person residing in the home were excluded from
liability, even if there was a related allegation of
negligence. This bill died in the Assembly Judiciary
Committee without a hearing.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081