BILL ANALYSIS �
AB 2019
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2019 (Hill)
As Amended August 7, 2012
Majority vote
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|ASSEMBLY: |72-0 |(May 3, 2012) |SENATE: |37-0 |(August 13, |
| | | | | |2012) |
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Original Committee Reference: HUM. S.
SUMMARY : Establishes requirements regarding the Foster Family
Home and Small Family Home Insurance Fund (Fund). Specifically,
this bill :
1)Requires the Department of Social Services (DSS) or designated
agency to notify a claimant of the decision to approve or
reject a claim within 15 days of the decision.
2)Provides that an applicable 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 not commence until
the date DSS, or designated agency, has notified the person
that the department has either rejected or approved the claim.
3)Requires the Fund to be maintained at an adequate level to
meet anticipated liabilities.
4)Prohibits homeowner's or tenant's insurance policy issuers
from failing to accept an application for that insurance or
cancelling that insurance solely because the applicant or
policyholder is engaged in foster home activities in a
certified family home.
The Senate amendments clarify that a certified family home of a
foster family agency is not eligible for the Fund, but retains
the prohibition of a homeowner's or tenant's insurance policy
issuers from failing to accept an application for that insurance
or cancelling that insurance solely because the applicant or
policyholder is engaged in foster home activities in a certified
family home.
AS PASSED BY THE ASSEMBLY , this bill allowed certified family
homes of foster family agencies to be eligible for claims
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against the Fund, in addition to what is noted in the summary
above.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
Background : Established in 1986 (SB 1159 (Royce), Chapter 1330,
Statutes of 1986) as a response to concerns about foster parent
liability, the Fund was originally created to protect families
from losing their homeowners insurance when they took in foster
children. The Fund started as a pilot project and was expanded
statewide when it was found by the counties to be a useful tool
for recruiting foster parents.
Funds are accessible by aggrieved foster children or their
guardians for a non-intentional injury that occurs while in
foster care placement. The Fund provides defense and
indemnification for foster parents who are facing potential
liability for injuries to foster children in their care.
Statutes of limitations : Statutes of limitations restrict the
time within which legal proceedings may be brought. Statutes of
limitations are designed to prevent fraudulent and stale claims
from arising after all evidence has been lost or after the facts
have become obscure through the passage of time or the defective
memory, death, or disappearance of witnesses.
Statutes of limitations are relevant to the Fund in two ways:
First, claims must be filed with the Fund within the applicable
statute of limitations period for a civil action based on the
same occurrence for which the claim is made. Second, a claim
against the Fund and determination by the Fund are prerequisites
to filing a civil claim. Therefore, the statute of limitations
on the legal claim runs and may even expire prior to the
determination on the claim against the Fund. The latter
situation is exacerbated by the fact that, as the Bureau of
State Audits (BSA) noted, claims are often not acted on within
the required 180 days. This bill addresses this issue by
providing that any limitations period for filing a court action
based on the same occurrence for which a claim is made against
the Fund "shall not commence until" the claim has been accepted
or rejected. The author says that, "by extending the statutes
of limitations for claims that go through the Fund, this bill
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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."
Insurance discrimination : This bill also addresses the fact
that foster homes certified by Foster Family Agencies (FFAs) do
not have the same protections against discrimination with
respect to homeowners' and tenants' insurance policies as do
licensed foster homes and licensed small family homes. "Absent
coverage by the Fund," the author says, "the state should make
it as easy as possible for certified foster parents to be able
to buy insurance coverage to protect their resources." To
afford certified homes the same access to homeowners' or
renters' insurance as foster family homes and small family homes
to the extent claims are not covered by the Fund, this bill adds
to the prohibitions on insurance discrimination against licensed
foster family homes or licensed small family homes, protection
for certified family homes.
Aspiranet, an FFA, notes in support of this bill that "�t]this
bill does not deal with all of the issues raised in the �BSA]
audit, but it provides one step forward in treating foster
parents alike in terms of their ability to receive homeowner and
tenant insurance coverage on the private market." Aspiranet
says that "this could help with the recruitment and retention of
families who might be interested in becoming foster parents, but
have concerns about obtaining appropriate homeowners and tenets
insurance as they care for foster children in their homes."
Prior legislation : AB 2206 (Hill) of 2010, would have limited
the Fund liability exclusions to only those criminal or
intentional acts committed by a foster parent. AB 2206 was held
in the Assembly Appropriations Committee.
SB 706 (Florez) of 2004, 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. SB 706 died in the Assembly Judiciary Committee
without a hearing.
AB 1467 (Alby) of 1997, clarified the scope of coverage of the
Fund by, among other things, including members of the foster
parent's household under the exclusion of liability from the
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Fund for immoral or sexual behavior. AB 1467 passed the
Assembly but died after it was not heard in the Senate Health
and Human Services Committee.
SB 470 (Royce), Chapter 195, Statutes of 1988, removed a sunset
date, allowing for continuation of the Fund.
SB 1159 (Royce), Chapter 1330, Statutes of 1986, established the
Fund and prohibited insurance carriers from rejecting any
applicant or policyholder solely on the basis that they were
foster parents.
Analysis Prepared by : Chris Reefe / HUM. S. / (916) 319-2089
FN: 0004783