BILL ANALYSIS �
AB 2019
Page 1
Date of Hearing: April 25, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2019 (Hill) - As Amended: April 18, 2012
Policy Committee: Human
ServicesVote:6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill modifies requirements regarding the Foster Family Home
and Small Family Home Insurance Fund. Specifically, this bill:
1)Requires the Department of Social Services (DSS) or its
designated agency notify a claimant within 15 days of the
decision to approve or reject a claim.
2)Requires the fund to be maintained at an adequate level to
meet anticipated liabilities.
3)Provides that a statute of limitations period for a cause of
action arising out of the same occurrence for which a claim
has been filed with the fund shall be tolled from the date a
claim is filed until the date the department notifies the
claimant of a decision.
4)Prohibits an insurer from failing to accept an application or
cancelling a policy for homeowner's or renter's insurance
solely because the applicant or policy owner is a certified
foster parent.
FISCAL EFFECT
Costs associated with this legislation would be minor and
absorbable within existing DSS resources.
COMMENTS
1)Rationale . The intent of this legislation is to ensure that
the statute of limitations on a legal claim does not expire
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prior to the determination on the claim against the Fund. By
extending the statute of limitations, the author argues that
foster children will be able to seek restitution through the
court system. The author notes, "By extending the statutes of
limitations for claims that go through the Fund, this bill
takes an important step in ensuring that any child that is
harmed while in foster care has the same right to due process
as anyone else."
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.
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
since. According to DSS, in fiscal year 2009-2010, there were
13 new claims submitted to the Fund, of which $287,000 were
paid in claim settlements. In 2010-2011 thus far, there have
been eight new claims submitted and $14,500 has been paid in
claim settlements. The annual GF appropriation is $1.096
million for the Fund.
3)Related Legislation . In 2011, AB 863 (Bonilla) would have
limited the Fund liability exclusions to only those criminal
or intentional acts committed by a foster parent. That bill
was held on this committee's Suspense File.
In 2010, a substantially similar bill to AB 863, AB 2206
(Hill), was held on this committee's Suspense File.
SB 706 (Florez) 2004 was a DSS-sponsored bill that would have
narrowed the scope of the Fund and would have, among other
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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. That bill died
in the Assembly Judiciary Committee without a hearing.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081