BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1697
                                                                  Page  1

          Date of Hearing:   April 24, 2012

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                Jim Beall Jr., Chair
                    AB 1697 (Perea) - As Amended:  March 29, 2012
           
          SUBJECT  :  Foster youth:  placement

           SUMMARY  :  Requires the State Department of Social Services (DSS) 
          to designate a separate data entry field in the Child Welfare 
          Services Case Management System (CWS/CMS) for a county welfare 
          agency to record information on the reasons for placement of a 
          child with a foster family agency or group home, and requires 
          county welfare agencies to file this information with the system 
          when the placement is made.   

           EXISTING LAW  

          1)Through DSS and county welfare departments, establishes a 
            system of child welfare services, including foster care, for 
            children who have been or are at risk of being abused or 
            neglected.

          2)Provides for the licensure and regulation of foster family 
            homes, small family homes, group homes, and foster family 
            agencies by DSS.

          3)Defines "foster family agency" (FFA) as any organization 
            engaged in the recruiting, certifying, and training of, and 
            providing professional support to, foster parents, or in 
            finding homes or other places for placement of children for 
            temporary or permanent care who require that level of care as 
            an alternative to a group home.  

          4)Establishes the Child Welfare Services/Case Management System 
            (CWS/CMS) to automate the case management, services planning, 
            and information gathering functions of child welfare services. 
             Welfare & Institutions Code � 16501.5.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  


           Foster Family Agencies







                                                                 AB 1697
                                                                 Page  2


           Established in 1985 as an alternative to group home placements, 
          FFAs are for the placement of children who require more 
          intensive care as an alternative to group homes.  By statute, 
          FFAs are organized and operated on a non-profit basis and are 
          engaged in the following activities:  Recruiting, certifying, 
          and training foster parents, providing professional support to 
          foster parents, and finding homes or other temporary or 
          permanent placements for children who require more intensive 
          care.  There are two types of FFA programs, "treatment foster 
          care or therapeutic foster care," and "nontreatment foster 
          care."  An agency providing treatment service to a child has 
          determined that the child has services needs which:  cannot be 
          provided in an available family home, would require group home 
          placement if the child was not referred to an FFA, and can be 
          met by the program offered by the FFA to which the child is 
          being referred.  In contrast, a FFA providing nontreatment 
          services certifies a home for placement of a child pending the 
          adoption of the child by that family.  Statewide, there are an 
          estimated 264 FFAs providing care and treatment to approximately 
          18,500 foster children.  

           State Auditor Report  
          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.  A recent report from the California State 
          Auditor on the state's child welfare system notes that, while 
          the number of children in placement has dramatically decreased 
          in the last 10 years, the percentage of children placed with 
          FFAs-whose monthly compensation is significantly higher than 
          state- or county-licensed foster homes-has continued to 
          increase.  Child Welfare Services:  California Can and Must 
          Provide Better Protection and Support for Abused and Neglected 
          Children, California State Auditor, Bureau of State Audits, 
          Report 2011-101.1 (October 2011) (BSA Report), p. 2.  "A 
          potential explanation for this trend is that, in contrast to 
          requirements related to group home placements, �DSS] does not 
          require county CWS agencies to document the treatment needs of 
          children placed with �FFAs]."  Id.

          As noted in the BSA Report, CWS agencies report that, although 
          placement in licensed foster homes is prioritized over FFAs, 
          factors such as the lack of licensed foster homes and 
          convenience result in increased FFA placements.  Id.at 37-39.  







                                                                  AB 1697
                                                                  Page  3

          The BSA says that:

               We estimate that the growth in the percentage of 
               placements with foster family agencies, which have 
               dramatically higher rates than licensed foster homes, 
               has resulted in spending an additional $327 million in 
               foster care payments between 2001 and 2010-costing an 
               additional $61 million in 2010 alone.  The payment 
               rates of �FFAs] ? assume that children placed with 
               these agencies will have elevated treatment needs that 
               would otherwise land the children in even more 
               expensive group homes.  

          Id. at 35.  For placements in group homes and specialized 
          treatment facilities, DSS requires a written justification 
          in the child's case plan.  Id. at 36.  However, "�a]lthough 
          the payment rate of �FFAs] is more than double that of 
          state- or county-licensed foster homes," the BSA Report 
          notes, "�DSS] regulations do not require county CWS 
          agencies to document their justification for placing 
          children with the more expensive agencies."  Id. at 35.

          In its recommendations, the BSA Report says that DSS should 
          create and monitor compliance with clear requirements 
          specifying that children placed with FFAs must have 
          elevated treatment needs that would require a group home 
          placement if not for the existence of these agencies' 
          programs.  At a minimum, the BSA Report recommends, DSS 
          should:

                 Revise its regulations so licensed foster homes have 
               higher priority than foster family agencies for children 
               that do not have identified treatment needs.


                 Require county CWS agencies to file in the CWS/CMS a 
               detailed justification for any child placed with a foster 
               family agency.


                 Create a mechanism by which it can efficiently check for 
               compliance with the needs-justification requirement.


          Id. at 42-43.







                                                                  AB 1697
                                                                  Page  4


           Child Welfare Services/Case Management System
           CWS/CMS is the automated system used by DSS and the 58 
          California county child welfare services (CWS) agencies.  The 
          CWS program is a federally required program operated by each of 
          the 50 states.  In 1989, SB 370, Chapter 1294, Statutes of 1989, 
          authorized the development and implementation of a statewide 
          computer system to automate the case management, services 
          planning, and information gathering functions of child welfare 
          services.  CWS/CMS is California's version of the federal 
          Statewide Automated Child Welfare Information System (SACWIS).  
          CWS/CMS is designed to:  Provide CWS workers with immediate 
          access to child, family and case-specific information in order 
          to make appropriate and timely case decisions; provide CWS 
          workers with current and accurate information to effectively and 
          efficiently manage their caseloads and take appropriate and 
          timely case management actions; provide state and county 
          administrators with the information needed to administer 
          programs and monitor and evaluate the achievement of program 
          goals and objectives; provide state and county CWS agencies with 
          a common database and definition of information from which to 
          evaluate CWS; and, consolidate the collection and reporting of 
          information for CWS programs pursuant to state and federal 
          requirements.

           This bill
           This bill is intended to implement the recommendations of the 
          BSA Report with respect to FFAs and the CWS/CMS.  It would 
          require that a separate data field be established in the CWS/CMS 
          for CWS agencies to record information regarding the reasons for 
          a child's placement with an FFA or group home.  It would also 
          require a county welfare agency to file this information with 
          the system when this placement is made.  

          The presumption is that, if DSS begins requiring a written 
          justification for placement with FFAs, these types of relatively 
          costly placements would decline over time.  While there would be 
          expected substantial savings, the BSA Report does note that some 
          of the resulting savings would have to be redirected to, for 
          example, foster parent recruitment and training.

          In support of this bill, the Children's Law Center of California 
          (CLC) notes that "too many foster children move in and out of 
          foster placements or group homes with alarming frequency.  This 
          lack of consistency creates serious issues of stability for 







                                                                  AB 1697
                                                                  Page  5

          children who have already endured great trauma before even 
          entering our system."  This bill, CLC says, "would lead to 
          greater accountability within the system regarding placement 
          changes as well as a better systemic understanding of how to 
          reduce the number of potentially traumatic and expensive moves 
          for foster children."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Children's Law Center of California (CLC)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089