BILL ANALYSIS                                                                                                                                                                                                    �



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          SENATE THIRD READING
          SB 1319 (Liu)
          As Amended  June 11, 2012
          Majority vote 

           SENATE VOTE  :37-0  
           
           HUMAN SERVICES      6-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Beall, Jones, Ammiano,    |Ayes:|Fuentes, Harkey,          |
          |     |Grove, Hall, Portantino   |     |Blumenfield, Bradford,    |
          |     |                          |     |Charles Calderon, Campos, |
          |     |                          |     |Davis, Donnelly, Gatto,   |
          |     |                          |     |Hall, Hill, Lara,         |
          |     |                          |     |Mitchell, Nielsen, Norby, |
          |     |                          |     |Solorio, Wagner           |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :  Makes five statutory changes to the Health and Safety 
          and the Welfare and Institutions Code relating to services for 
          at-risk children and foster youth.  Specifically,  this bill  :   

          1)Deletes the statutory sunset for "crisis nurseries," thus 
            allowing "crisis nurseries" to operate as a temporary 
            placement option for at risk youth under the age of six.

          2)Deletes the requirement that foster family homes be subjected 
            to civil penalties for violations of Health and Safety Code 
            Section 1548.

          3)Deletes the statutory sunset for licensed community treatment 
            facilities serving seriously emotionally disturbed children or 
            wards and dependents of the court to have nursing staff 
            on-call rather than onsite if the facility meets specified 
            conditions.

          4)Preserves the provisional rate setting methodology for 
            "severely emotionally disturbed" (SED) children placed in 
            group home settings until the Department of Mental Health can 
            establish a permanent rate methodology.

          5)Allows the Director of the Department of Social Services (DSS) 








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            to extend a waiver of regulations to counties in increments of 
            three years to continue to participate in performance 
            agreements with the DSS to provide foster youth with 
            alternatives to group home care through the expansion of 
            family-based services programs. 

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, costs associated with this legislation should be 
          minor and absorbable within existing DSS resources.
           
           COMMENTS  :   

           Crisis Nurseries  .  Established in 2004 by SB 855 (Machado), 
          Chapter 664, Statutes of 2004, crisis nurseries were established 
          as a separate licensing category to provide a temporary housing 
          and shelter facility placement option for parents.  The goal of 
          crisis nurseries are to prevent the need for child welfare 
          services and to provide an alternative placement option for 
          families with young children who are facing difficult or extreme 
          challenges, financial, health, or otherwise.  

          To allow for the monitoring and evaluation of this licensing 
          category, SB 855 was approved with a sunset of January 1, 2008.  
          That sunset was extended by two subsequent measures to establish 
          the current sunset of January 1, 2014, to provide additional 
          time to DSS to establish licensing regulations.  Crisis 
          nurseries were originally allowed to serve a limited number of 
          foster youth, however, that authority was eliminated effective 
          January 1, 2012, pursuant to SB 1214 (Wolk), Chapter 519, 
          Statutes of 2010.  This limits the role of crisis nurseries to 
          only serve children under the age of six who are voluntarily 
          placed by their parent or guardian under their temporary care.

          Should this sunset be allowed to take effect, crisis nurseries 
          would again have to comply with group home licensing 
          requirements under the California Community Care Licensing Act 
          (CCCLA).  According to the California Alliance of Child and 
          Family Services, co-sponsor of this measure, "there have been no 
          significant problems in the care provided to young children by 
          crisis nurseries." 

           Foster Family Homes Penalties  .  In 2008, the state adopted AB 
          978 (Benoit), Chapter 291, Statutes of 2008, which permitted 
          counties and DSS to levy civil penalties upon foster family 








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          homes, but exempted certified family homes for any serious 
          violation of the California Community Care Facilities Act 
          (CCCFA).  However, according to the County Welfare Directors 
          Association, this exemption should have also included foster 
          family homes.  This allowance for foster family homes to be 
          subject to civil penalties for each day they violate the CCCFA 
          is substantial creates a significant financial disincentive for 
          people to become foster care providers.  There are already a 
          number of mechanisms in place to provide for the proper 
          proportional response to violations of the CCCFA, which include 
          the authority of a county welfare agency (CWA) or DSS to require 
          a corrective action plan for a foster family home to remedy a 
          minor violation, and to temporarily suspend, suspend or revoke 
          their license, including removing the foster youth from the 
          home.

           Community Treatment Centers Nursing Staff Requirements  .  Since 
          2003, the state has adopted several measures to allow for 
          community treatment centers to have on staff rather than onsite 
          at least one licensed nursing staff available to respond to 
          needed care within one hour.  This permission was initially 
          adopted in 2003 by AB 1370 (Yee), Chapter 575, Statutes of 2003, 
          with a sunset of January 1, 2007.  This sunset has been extended 
          an additional two times via legislation.  This measure would now 
          eliminate that sunset and permanently allow community treatment 
          centers that meet specified conditions to have nursing staff on 
          call.

          The Legislature has three times prior established and extended 
          this sunset, which has allowed for the efficient and appropriate 
          care of children in specified community treatment centers under 
          the oversight of the Department of Mental Health (DMH).  It is 
          appropriate to allow this sunset to be lifted to remove the 
          limitation of this permission.  Should the Legislature deem this 
          permission unnecessary, it can always revisit this issue via 
          legislation. 

           Rate Setting Methodology for Foster Care Group Homes Serving SED 
          Children  .  With the repeal of AB 3632 of 1984 by AB 114 (Brown), 
          Chapter 1747, of Statutes of 1984, the education budget trailer 
          bill for the 2011-12 state budget, it transferred the 
          responsibility to provide mental health services to special 
          education students from county mental health departments to 
          county offices of education.  As a part of this transfer, it 








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          created an ambiguity as to how rate classification levels (RCL) 
          are calculated for foster care group homes serving special needs 
          children with mental health needs.  Group home funding is set 
          based upon its RCL.

          Prior to the repeal of AB 3632, a group home serving both foster 
          youth and special education children with mental health needs 
          was allowed to count both categories of children towards the 
          calculation of its RCL.  However, according to the California 
          Alliance of Child and Family Services, which is a co-sponsor of 
          this measure, DSS is interpreting AB 114 to limit the RCL 
          calculation to only the number of foster youth served and not 
          special education pupils with mental health needs.  This results 
          in a lower funding rate equivalent to lower service needs of 
          children in care, even though the group home continues to serve 
          high needs children. 

          This measure would allow a group home's rate classification to 
          be provisionally calculated based upon all children served by 
          the group home until DSS issues revised regulations or policies 
          via All County Letter(s) governing the setting of a group home's 
          RCL. 

           Performance Agreement Waivers  .  Current law allows the Director 
          of DSS to provide waivers of foster care payments or the 
          operation of group homes to enable CWAs to enter into agreements 
          with local non-profit child and family services agencies to 
          provide alternatives to group home care.  The purpose is to 
          provide an alternative placement to a locked juvenile facility, 
          such as a camp-oriented group home or other less restrictive 
          environment to provide for a more positive youth environment.

          Initially established by SB 933 (Thompson), Chapter 311, 
          Statutes of 1998, waivers were authorized to be in effect for 
          three years with an additional three-year extension as requested 
          by the CWA.  Since the establishment of this waiver authority, 
          one additional measure was adopted (AB 388 (Torres and Hagman), 
          Chapter 445, Statutes of 2009), which allowed for an additional 
          three-year waiver extension.  This measure would allow the 
          Director of DSS to extend the waiver in increments of three 
          years, as long as the CWA submits a report and independent 
          evaluation of the performance agreement, and provides adequate 
          justification for the waiver and demonstrates its ability to 
          continue to comply with the performance agreement.  








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           Analysis Prepared by  :    Chris Reefe / HUM. S. / (916) 319-2089 


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