BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 2474
                                                                  Page A
          Date of Hearing:   April 27, 2010

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                Jim Beall Jr., Chair
                  AB 2474 (Beall, Jr.) - As Amended:  April 8, 2010
           
          SUBJECT  :  Community care facilities:  foster family agencies.

           SUMMARY  :  Extends by one year, to January 1, 2012, the sunset  
          provision on the requirement for certain foster family agencies  
          to employ one full-time social work supervisor for every eight  
          social workers.

           EXISTING LAW  :

          1)Establishes a system of community care facilities licensing,  
            administered by the Department of Social Services (DSS), to  
            license and approve out-of-home placements for abused and  
            neglected children.

          2)Establishes foster family agencies (FFAs) as nonprofit  
            organizations that recruit, train, certify, and provide  
            support for foster parents who care for children with  
            intensive care needs as an alternative to group home  
            placement.  Health and Safety Code (HSC) Section 1502.

          3)Provides for the licensure and regulation of FFAs by DSS, and  
            applies social worker personnel requirements. 

          4)Requires DSS to differentiate between treatment FFAs,  
            providing mental health treatment services to foster youth,  
            and nontreatment FFAs, and to develop licensing regulations  
            accordingly.  HSC 1506 (c).

          5)Provides Aid to Families with Dependent Children Foster Care  
            (AFDC-FC) payments with a state and county share-of-cost for  
            care and supervision provided to children in foster care.   
            Welfare and Institutions Code (WIC) Section 11460.

          6)Reduces the FFA rate effective October 1, 2009 by 10%, and  
            allows FFAs flexibility in applying the reduction, provided  
            the amount paid to foster families providing care to foster  
            children was not reduced more than 10%.  WIC 11463 (j).

          7)Requires treatment FFAs to employ at least one full-time  









                                                                  AB 2474
                                                                  Page B
            social work supervisor for every eight social workers in the  
            agency, and sunsets this provision January 1, 2011.  HSC 1506  
            (k).

           FISCAL EFFECT  :  Unknown.

           COMMENTS  : 
           
           Background:   Established in 1985 as an alternative to group home  
          placements, FFAs are not-for-profit agencies that train, recruit  
          and certify foster parents.  Statewide, there are an estimated  
          250 FFAs providing care and treatment to approximately 18,500  
          foster children.  Initially intended as an alternative to group  
          home placement for children with higher service needs, FFAs now  
          provide placements to almost half of all foster children in  
          nonrelative placements in California.  

          DSS distinguishes between two types of FFAs for the purposes of  
          rate setting and regulations.  "Treatment foster care", also  
          referred to as "therapeutic foster care" provides a higher level  
          of care to children with needs that cannot be met in foster  
          family homes, and who would otherwise require a group home  
          placement.  FFAs may also certify a family home seeking to adopt  
          a foster child as a "nontreatment foster care" placement.  

          FFA and other foster care provider rates were cut by 10% as part  
          of the state budget passed last year, effective October 1, 2009.  
           While the group home rate cut was stayed and group home rates  
          were ordered increased by 32% as part of a lawsuit already  
          pending prior to the budget reductions,  California Alliance of  
          Child and Family Services v. John Wagner, et al  ., FFAs were not  
          represented in the group homes lawsuit and, as such, are still  
          subject to the rate decrease.

          Acknowledging the impact of the 10% FFA rate cut, last year, the  
          Legislature approved, and the Governor signed SB 597 (Liu),  
          Chapter 339, Statutes of 2009, which included a provision  
          allowing treatment FFAs to adjust the ratio of social work  
          supervisors to social workers to the current 1:8 ratio.  The  
          ratio change will expire, however, on January 1, 2011.

          Prior to the passage of SB 597, social work supervisor/social  
          worker ratios had been set forth in regulations (Title 22,  
          Division 6, Chapter 8.8), which distinguished between the ratios  
          applied to treatment and nontreatment agencies.  Treatment FFAs  









                                                                  AB 2474
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          were required to employ one social work supervisor for every six  
          social workers, whereas nontreatment FFAs had to adhere to the  
          1:8 supervisor/social worker ratio.

          According to the Council on Accreditation<1> (COA) standards,  
          supervisor-to-social worker ratios generally should not exceed  
          the 1:8 ratio, as they cite research to suggest that supportive,  
          quality supervision can lead to better service delivery to  
          children and families, better productivity, and less turnover  
          among social work staff.  The COA standards do not, however,  
          apply the same treatment/nontreatment delineation as found in  
          state regulations.

          According to the author, "Nonprofit foster family agencies  
          provide an important placement alternative to group homes by  
          offering certified foster homes and the children they care for  
          with additional services and supports.  We must continue to  
          support this more family-centered alternative, while still  
          ensuring the available funding is applied where it is most  
          needed-to the direct services provided to foster children.  In  
          taking the approach offered by [this bill], the state would  
          allow FFAs flexibility in the program administration, at a  
          reasonable level."  

          The sponsor of this bill, the California Alliance for Child and  
          Family Services, writes:

               In budget year 2009-10, FFA rates were cut by 10% and  
               prior to that cut, FFA rates had been frozen for 14  
               out of the past 19 years.  As a result, the FFA rates  
               to cover the cost of care and social work for foster  
               children has declined to just 63% of what it  
               originally was in 1990.  In order to absorb the 10%  
               rate cut, many FFAs were forced to lay off social  
               workers, are borrowing money to keep operating, are  
               spending down their savings, are fundraising in an  
               increasingly competitive environment or have shut down  
               their programs.  

               In order to absorb some small measure of relief from  
               ----------------------
          <1> COA is an international, independent, nonprofit child and  
          family service and behavioral healthcare accrediting  
          organization founded in 1977 by the Child Welfare League of  
          America and Family Service America, currently known as the  
          Alliance for Children and Families.








                                                                  AB 2474
                                                                  Page D
               the 10% cut, the Legislature approved and the Governor  
               signed SB 597 (Liu) in 2009 allowing FFAs to use a  
               one-to-eight ratio for social worker supervisors to  
               social workers, rather than the one-to-six ratio.   
               This provision was only approved for one year and it  
               expires on January 1, 2011.  Savings incurred to FFAs  
               from increasing this ratio is estimated to be 1% of  
               their total budget.

               In light of the dire budget constraints of the State,  
               [this bill]will extend the deadline allowing the ratio  
               of Foster Family Agency social workers to go from a  
               1:6 ratio to a 1:8 ratio by one more year, until  
               January 1, 2012.  At a minimum, the FFAs need some  
               flexibility within the rate-setting and community care  
               licensing systems.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Alliance for Child and Family Services (sponsor)
          Aldea Children & Family Services
          Alternative Family Services
          Association of Community Human Service Agencies
          County Welfare Directors Association of CA (CWDA)
          Crittenton Services for Children and Families
          David & Margaret Youth and Family Services
          Family Care Network
          Five Acres - Boys' & Girls' Aid Society of Los Angeles
          Innte Circle Foster Family Agency
          Kinship Center
          Lillliput Children's Services
          President/CEO, Hathaway-Sycamores Child & Family Services
          Rebekah Children's Services
          Rosemary Children's Services
          Transitions Children's Services
          Valley Teen Ranch
          Victor Youth Services
          Youth For Change

           Opposition 
           
          None on file.
           









                                                                 AB 2474
                                                                  Page E
          Analysis Prepared by  :    Michelle Doty Cabrera / HUM. S. / (916)  
          319-2089