BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1013 (Budget and Fiscal Review Committee)
          As Amended  June 25, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately 

           SENATE VOTE  :Vote not relevant  
           
           Summary  :  Contains necessary statutory and technical changes to 
          implement provisions of the Budget Act of 2012 related to 2011 
          Realignment and Child Welfare Services.  Specifically,  this 
          bill  :
          
          1)Proposed Flexibilities for Counties.

             a)   Makes statutory changes to make the following programs 
               optional for counties and to create more flexibility within 
               requirements related to them: 

               i)     Specialized Care Increments that can be used to 
                 supplement basic care and supervision rates in order to 
                 pay for additional care and supervision needs; and,

               ii)    Clothing allowances for children living in foster 
                 family homes (because of their incorporation into 
                 recently revised rates applicable to foster family 
                 homes).

             b)   Makes statutory changes to revise, or create more 
               flexibility within, requirements related to the following 
               programs, which already offer some degree of county option:

               i)     The Transitional Housing Program (THP)-Plus, which 
                 provides housing and supportive services to former foster 
                 youth ages 18-24;

               ii)    The Specialized Training for Adoptive Parents (STAP) 
                 program, which is intended to facilitate the adoption of 
                 children who are HIV-positive or who were born to mothers 
                 with substance-abuse problems;

               iii)   The Options for Recovery Program, which is intended 
                 to recruit and train specialized foster caregivers; 









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               iv)    The Supportive Transitional Emancipation Program 
                 (STEP), which is intended to assist youth who have exited 
                 the foster care system while they are participating in an 
                 educational or training program, or activity consistent 
                 with their transitional independent living plan up to 21 
                 years of age;

               v)     The Kinship Support Services Program (KSSP), which 
                 provides community-based family support services to 
                 relative caregivers and the children they are caring for; 
                 and,

               vi)    Stipends that supplement the Independent Living 
                 Program and may support youth who have exited the foster 
                 care system by assisting with bus passes, housing rental 
                 deposits, work-related equipment, or other needs.



          2)Accountability and Oversight.

             a)   Clarifies that counties shall continue to be responsible 
               for and accountable to the Department of Social Services 
               (DSS) for defined program performance measures, and 
               requires DSS to monitor county performance, on an ongoing 
               basis and via a comprehensive review at least once every 
               five years.

             b)   Specifies that process guides for county 
               self-assessments shall include a description of the process 
               by which DSS and counties shall develop agreed upon 
               performance targets for improvements, and that counties 
               shall submit updates to the department regarding their 
               progress no less than annually.  Authorizes DSS to require 
               a corrective action plan from a county that has not met its 
               performance targets.

             c)   Clarifies that DSS is authorized to conduct or have 
               conducted audits and reviews related to child welfare 
               programs, along with due process requirements regarding 
               counties' notice, opportunity to respond, and the potential 
               consequences of such an audit or review. 

             d)   Requires specified reporting related to the 2011 








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               realignment of Child Welfare Services (CWS) programs, 
               including a requirement for DSS to annually report a 
               summary of outcome and expenditure data that allows for 
               monitoring of changes over time and indicates the degree to 
               which programs are meeting designated outcome measures.

             e)   Requires counties to report to DSS on the expenditure of 
               savings realized as a result of maximizing available 
               federal adoption assistance funding.

          3)Congregate Care, the Continuum of Care and Needs 
            Assessment-Related Reforms. 

             a)   Revises the selection criteria that apply to out-of-home 
               foster care placements and the placement-related 
               documentation required in a child welfare services case 
               plan. 

             b)   Requires DSS to establish, in consultation with 
               specified entities, a workgroup to develop recommended 
               revisions to the current Aid to Families with Dependent 
               Children-Foster Care rate setting system, and to submit 
               these recommendations to the Legislature by a specified 
               date.

             c)   Requires DSS, with the advice and assistance of 
               stakeholders, to establish a working group to develop 
               performance standards and outcome measures for providers of 
                 out-of-home care placements, as specified.

             d)   Raises, on an interim basis, the monthly care and 
               supervision payment rates applicable to Intensive Treatment 
               Foster Care (ITFC) placement settings.  The rates would 
               range from $4,034 to $5,581 per month, rather than $2,985 
               to $4,476 per month.  These placement settings are intended 
               to offer lower-cost, family based care to children and 
               youth who would otherwise be served in more expensive and 
               restrictive congregate care settings. 

          4)Repeals of Sunsets and Changes to Make Specified Programs 
            Statewide.

             a)   Amends existing law related to the development of a 
               unified, family friendly, and child-centered resource 








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               family approval process to replace the existing multiple 
               processes for licensing foster family homes, approving 
               relatives and nonrelative extended family members as foster 
               care providers, and approving adoptive families.  Specifies 
               selection process for counties that will be early 
               implementation counties and process for authorizing 
               statewide implementation.

             b)   Eliminates provisions that would otherwise cause 
               statutes that prohibit peace officers from, without a 
               warrant, taking into temporary custody a newborn who tested 
               positive for exposure to illegal drugs and who is the 
               subject of a proposed adoption to sunset on January 1, 
               2013. 

             c)   Eliminates provisions that would otherwise cause the 
               statutes authorizing tribal customary adoptions to sunset 
               on January 1, 2014.  Tribal customary adoption means 
               adoption by and through the tribal custom, traditions, or 
               law of an Indian child's tribe.  Termination of parental 
               rights is not required to effect the tribal customary 
               adoption.

             d)   Allows specified nonminor dependents to continue to 
               receive assistance during a window of time in which they 
               might otherwise have a gap in eligibility (e.g., if they 
               received assistance as an 18-year-old in 2012, but attained 
               19 years of age prior to January 1, 2013, when 19-year-old 
               nonminor dependents become eligible to remain in the foster 
               care system).  Further, ensures that otherwise eligible 
               nonminor dependents between 20 and 21 years can benefit 
               from continued support, effective January 1, 2014.

          5)Technical Changes.

             a)   Authorizes or requires county adoption agencies to 
               perform activities for which 2011 realignment funding has 
               been directed to them without needing to be licensed by 
               DSS.

             b)   Requires funding and expenditures for specified child 
               welfare and adoption programs to be consistent with 
               specified provisions relating to the Local Revenue Fund 
               2011, commencing with the 2011-12 fiscal year.








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             c)   Establishes a new framework and sharing ratios for the 
               remittance of the federal share of foster care 
               overpayments.

             d)   Specifies of the shares of costs required of tribes, 
               consortiums of tribes, or tribal organizations that enter 
               into an agreement with the state regarding the care and 
               custody of Indian children and jurisdiction over Indian 
               child custody proceedings.

             e)   Repeals several obsolete references or provisions.

          6)Other. 

             a)   Requires counties to expend funds for family 
               preservation and support services in a manner that will 
               maximize eligibility for federal financial participation 
               under the Promoting Safe and Stable Families program.

             b)   Requires counties to submit specified data regarding 
               Independent Living Program expenditures to DSS and 
               restricts, consistent with federal requirements, the amount 
               that can be spent on housing.  Further, requires them to 
               ensure that eligible foster youth receive information 
               about, and are provided with an opportunity to complete, 
               the National Youth in Transition Database survey.

             c)   Revises the licensing or certification standards 
               applicable to categories of transitional housing, including 
               the Transitional Housing Program-Plus for former foster 
               youth who have emancipated from the foster care system and 
               who are 18-24 years olds, as well as the Transitional 
               Housing Placement-Plus Program-Foster Care program, which 
               is intended to serve nonminor dependents between the ages 
               of 18 and 20, inclusive. 

             d)   Increases the basic care and supervision rates paid to 
               foster families certified by foster family agencies, to 
               bring them into parity with the basic rates paid to 
               licensed foster family homes (which were recently increased 
               as a result of litigation).  Establishes an annual 
               cost-of-living adjustment applicable to these rates.  
               Specifies that these changes shall not change the remaining 








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               components of the foster family agency rate.

             e)   Specifies that after July 1, 2011, counties may allow 
               designated former state employees of DSS who become 
               employed by counties to retain, as a county employee, 
               specified benefits they had accumulated as state employees.

             f)   Authorizes DSS to implement rule changes related to 
               specified provisions of this bill by means of all-county 
               letters or similar instructions until regulations are 
               adopted.  Further, authorizes the department, in limited 
               circumstances and after consultation with stakeholders, to 
               implement newly enacted federal laws by means of all-county 
               letters or similar instructions that would expire 15 months 
               after issuance.

          7)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment.

           COMMENTS  :  The 2011-12 Budget realigned $1.6 billion in state 
          funding for the CWS, foster care, and adoptions programs, to the 
          counties.  For the first year of the 2011 realignment, no 
          changes were made to state law governing CWS and adoptions 
          programs.  During the 2012-13 budget process, however, the 
          Administration proposed programmatic trailer bill language 
          related to the following major themes, all of which are 
          addressed by this trailer bill: 

          1)Proposed Flexibilities for Counties; 

          2)Accountability and Oversight; 

          3)Congregate Care and Continuum of Care-Related Reforms and 
            Needs Assessment; and,

          4)Technical Changes.  

          The CWS system includes child abuse prevention, emergency 
          response to allegations of abuse and neglect, supports for 
          family maintenance and reunification, and out-of-home foster 
          care.  The system includes federal, state, and county agencies, 
          juvenile courts, and private providers of care and services.  
          Federal and state laws establish the legal, regulatory, and 
          fiscal frameworks that govern the roles and responsibilities of 








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          these entities and individuals.  In general, CWS programs are 
          some of the more highly regulated among federally supported 
          human services programs.  Existing law also establishes the 
          California Child and Family Service Review System administered 
          by DSS to review all county child welfare systems.

          The total 2011-12 Budget for CWS (excluding adoptions) is $5.2 
          billion ($2.5 billion federal funds, $1.6 billion 2011 
          realignment funds, and $1.1 billion county funds).  
          Approximately half of those funds support counties to administer 
          or provide these programs and half support payments to families 
          and other providers of foster care.  The total 2011-12 Budget 
          for adoptions programs includes $121 million ($64 million 2011 
          realignment funding).  DSS regulates, provides oversight, and 
          maintains records for: 1) adoptions that occur through public 
          agencies; 2) adoptions that occur through private agencies; 3) 
          independent adoptions that are handled by a private attorney; 
          and, 4) adoptions of children from other countries.  Before the 
          2011 realignment, there were seven DSS district offices that 
          also directly provided agency adoption services to 28 counties 
          and independent adoption services to 55 counties.  The remaining 
          counties were licensed by DSS to provide those services 
          directly.  


           Analysis Prepared by  :   Nicole Vazquez / BUDGET / (916) 319-2099


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