BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 159                                      
          A
          AUTHOR:        Beall                                       
          B
          VERSION:       March 24, 2011
          HEARING DATE:  June 14, 2011                               
          1
          FISCAL:        Appropriations                              
          5
                                                                     
          9
          CONSULTANT:                                                
          Park
                                        

                                     SUBJECT
                                         
               Community care facilities: foster family agencies

                                     SUMMARY  

          Changes the sunset provision on the requirement for certain 
          foster family agencies to employ one full-time social work 
          supervisor for every eight social workers, as specified.

                                     ABSTRACT  

          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. 
                                                         Continued---



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          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 
            percent, 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 percent.  WIC 11463 (j).

          7.Requires treatment FFAs to employ at least one full-time 
            social work supervisor for every eight social workers in 
            the agency, and sunsets this provision January 1, 2012.  
            HSC 1506.3.

          This bill:
          1.Deletes the January 1, 2012, sunset date for the one to 
            eight ratio of social work supervisors to social workers 
            in the foster family agency, and, instead, sunsets this 
            ratio when the total foster family agency rate paid to 
            licensed FFAs is restored to at least the rate effective 
            on September 30, 2009, and the DSS director issues a 
            declaration to that effect to the Legislature, as 
            specified.  Repeals the ratio of the date of the 
            declaration.  

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, costs 
          associated with DSS issuing a declaration to the 
          Legislature would be minor and absorbable within existing 
          resources.

                            BACKGROUND AND DISCUSSION  

          Author's statement
          The author writes that nonprofit foster family agencies 




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          (FFAs) provide an important placement alternative to group 
          homes by offering certified foster homes and the children 
          they care for with additional services and supports.  The 
          author notes that ABX4 4 (Evans) of 2009, the Human 
          Services budget trailer bill, applied a 10 percent rate 
          reduction to FFAs, effective October 1, 2009.  The author 
          states that this rate reduction effectively reduced the 
          capacity of FFAs to cover costs to less than 63 percent for 
          2009-10, and that, over the last two decades, FFA costs, as 
          measured by the California Necessities Index, have 
          increased by over 76 percent while their rates have 
          increased by less than 24 percent.

          The author believes that FFAs cannot continue to operate 
          within the existing requirements of the foster care 
          rate-setting and community care licensing systems.  The 
          author points to enacted legislation allowing FFAs to 
          adjust the ratio for social work supervisors to social 
          workers, similar to this legislation.  The author states 
          that AB 159 would address the continuing problem of 
          inadequate rate, created by the 10 percent rate cut, by 
          extending the adjusted 1 to 8 ratio for social work 
          supervisors to social workers until the rate cut is fully 
          restored.

          Foster Family Agencies
          Established in 1985 as an alternative to group home 
          placements, FFAs are not-for-profit agencies that train, 
          recruit and certify foster parents.  County placement 
          agencies use licensed private non-profit FFAs to place 
          children who require more intensive care in foster family 
          homes with training and support services as an alternative 
          to group homes.

          According to DSS, there are 464 FFAs in California 
          providing care and treatment to approximately 11,817 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 has statutory responsibility for developing, 
          implementing, and maintaining a rate setting system for 
          FFAs receiving Aid to Families with Dependent 
          Children-Foster Care (AFDC-FC) funds.  DSS distinguishes 




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          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 
          percent as part of the state budget effective on October 1, 
          2009.  Acknowledging the impact of the 10 percent FFA rate 
          cut, SB 597 (Liu), Chapter 339, Statutes of 2009, adjusted 
          the ratio of FFA supervisor to staff ratio from 1:6 to the 
          existing 1:8 ratio.  The change initially was set to expire 
          on January 1, 2011, but was extended by one more year to 
          January 1, 2012 with the passage of AB 2474 (Beall) Chapter 
          43, Statutes of 2010.

          Prior to 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 had been 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.

          State law and regulations require FFA social work 
          supervisors to meet minimum education and experience 
          standards, including the requirement to have a master's 
          degree in social work or a related field.  Social work 
          supervisors are responsible for, among other assigned 
          duties, training, oversight, and review of social workers' 
          casework, and ensuring that their agency social workers 
          perform their duties in compliance with applicable laws, 
          regulations, policies, and procedures.

          According to the Council on Accreditation (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, delineate the standards that should be 




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          applied to the treatment versus nontreatment categories of 
          services overseen by a social work supervisor, as found 
          under state regulation.

          Prior legislation
          AB 2474 (Beall) Chapter 43, Statutes of 2010 extended by 
          one year, from 2011 to January 1, 2012, the sunset 
          provision on the requirement for FFAs to employ one 
          full-time social work supervisor for every eight social 
          workers.

          SB 597 (Liu), Chapter 339, Statutes of 2009, adjusted the 
          ratio of FFA supervisor to staff ratio from one social work 
          supervisor to six social workers to the existing 1:8 ratio. 
           

          Arguments in support
          The sponsor of this bill, the California Alliance for 
          Child and Family Services (CACFS), writes that FFA 
          rates have been cut by 10 percent for the past two 
          years and prior to that cut, FFA rates had been frozen 
          for 15 out of the past 19 years.  The group writes 
          that, as a result, the FFA rate to cover the cost of 
          care and social work for foster children has declined 
          to just 70 percent of what it originally was in 1990.  
          The group notes that, in order to absorb these cuts, 
          many FFAs have been forced to lay off social workers, 
          are borrowing money to keep operating, are spending 
          down savings, are fundraising in an increasingly 
          competitive environment or have shut down their 
          programs.  The group states that, under the current 
          rate reductions, FFAs need some flexibility within the 
          rate-setting and community care licensing systems, 
          and, while this may seem minor, it could make the 
          difference between an FFA having to borrow more money 
          to remain in operation or close down altogether.  

          The National Association of Social Workers, California 
          Chapter, writes that,  although it prefers the previous 
          ratio of 1:6 supervisors to social workers, it understand 
          the budget constraints that the state is facing, and that 
          it would be appropriate to return to the 1:6 ratio when the 
          state's fiscal situation has improved.






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                                   PRIOR VOTES
           

          Assembly Floor:     73 - 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, 
                                   AFL-CIO
                    Aspiranet
                    County Welfare Directors Association of 
               California
                    National Association of Social Workers - 
               California Chapter
                    1 individual

          Oppose:None received


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