Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1712 (Beall) – Minor and nonminor dependents: out-of-home placement.
Amended: August 6, 2012
Urgency: Yes
Hearing Date: August 16, 2012
Policy Vote: HS 5-0, JUD 4-0
Mandate: Yes
Consultant: Jolie Onodera
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: AB 1712, an urgency measure, would revise and expand the California
Fostering Connections to Success Act of 2010, as follows:
 Expands the definition of “relative” for purposes of both the federal- and age
extended state-funded Kin-GAP programs to include guardians who are nonrelated extended family members, tribal kin, or current caregivers of foster
children, as specified.
 Extends eligibility for the age extended state-funded Kin-GAP program to
nonfederally eligible nonminor former wards and dependents, as defined, whose
Kin-GAP negotiated agreement payments commenced prior to 16 years of age.
 Provides for the provision of various services and eligibility to be extended to
nonminor dependents including the court-appointed special advocate (CASA)
program, continuation of family reunification (FR) services subject to specified
conditions, the option of adult adoption or tribal customary adoption, and by
extension, Adoption Assistance Program (AAP) benefits, the payment of
nonrecurring expenses for AAP placement, the availability of Private Adoption
Agency Reimbursement Program (PAARP) funds to assist in the completion of
adoptions, and the provision of permanent placement services, to be defined as
supportive transition services, for nonminor dependents.
 Expands the duties of foster care public health nurses (PHNs) to include
assisting nonminor dependents in accessing health and mental health care,
coordinating the delivery of services, and advocating for the care that meets the
needs of the nonminor dependent.
Fiscal Impact:
 Increased federal funding of approximately $1 million in 2012-13, assuming an
October 1, 2012, effective date, increasing to over $12.5 million by 2016-17 due
to the expanded definition of “relative”, thereby increasing eligibility for the federal
Kin-GAP program. A higher level of county cost savings (Local Revenue Fund
2011(LRF)) is assumed, as nonrelated legal guardianships would have otherwise
been supported by realigned Foster Care funding for assistance and
administrative costs at greater cost. Additionally, counties will realize ongoing
significant county child welfare services (CWS) administrative cost savings
potentially in the millions of dollars (LRF) for cases transferred to both the federal
and extended age state Kin-GAP programs that otherwise would have been
provided for ongoing county child welfare agency case management services.
AB 1712 (Beall)
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Increased state Kin-GAP grant and administrative costs of less than $250,000
(General Fund) in 2012-13, increasing to approximately $4.3 million (General
Fund) per year assuming a shift of a small number of nonfederally eligible
nonminor former wards and dependents, whose negotiated agreement payments
commenced prior to 16 years of age, from the federal Kin-GAP program to the
age extended state-funded Kin-GAP program.
Potential ongoing future state-reimbursable costs for the extension and
expansion of services to nonminor dependents, including FR and supportive
transition services, AAP benefits, nonrecurring adoption expenses, PAARP
payments for nonminor dependents, and expanded duties on PHNs.
Background: The California Fostering Connections to Success Act of 2010, enacted by
AB 12 (Beall/Bass) Chapter 559/2010, exercised the state option under the federal
Fostering Connections to Success and Increasing Adoptions Act of 2008 (Public Law
110-351) of extending benefits for youth up to age 21 in the Foster Care, Adoption
Assistance, and Kinship Guardianship Assistance Payment (Kin-GAP) programs. AB 12
aligned the state’s existing Kin-GAP program with requirements in order to draw down
federal funds and provided for a three-year phase in of extended benefits up to age 21
that was intended to reduce the upfront costs of program expansion.
Significant clean-up legislation was pursued through AB 212 (Beall) Chapter 459/2011,
in response to issues identified just prior to initial implementation of the Act on January
1, 2012. Additionally, the recently enacted child welfare services realignment budget
trailer bill, SB 1013 (Committee on Budget and Fiscal Review) Chapter 35/2012, made
significant changes to the Act by 1) transferring authority for approval of Transitional
Housing Placement Plus Foster Care (THP+FC) providers from the counties to the
Department of Social Services (DSS) for licensure and 2) eliminating the potential gap
in eligibility for specified nonminor dependents turning 19 years of age during 2012 (and
20 years of age in 2013) who might otherwise have been ineligible to receive continued
assistance due to the staggered implementation dates established pursuant to AB 12.
Federal guidance released in July 2010 by the Administration for Children and Families
(ACF) pursuant to program instruction ACYF-CB-PI-10-11 authorizes states to define
the term “relative” for the purposes of the federal Kin-GAP program, subject to an
approved Title IV-E plan amendment, to include a reasonable interpretation of relative,
either limiting the term to include biological and legal familial ties or specifying a plan
that more broadly includes tribal kin, extended family and friends, or other fictive kin.
This bill makes various changes to existing law to address additional issues that have
been identified subsequent to the recent implementation of the California Fostering
Connections to Success Act of 2010.
Prior Legislation: AB 12 (Beall) Chapter 559/2010 enacted the California Fostering
Connections to Success Act of 2010, and authorized the state to exercise the option of
extending benefits in the Foster Care, Kin-GAP, Fed-GAP, and AAP to age 21 for youth
who meet specified criteria. AB 12 also provided for the alignment of the Kin-GAP
program with federal requirements in order to receive federal financial participation.
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AB 212 (Beall) Chapter 459/2011, the follow-up legislation to AB 12, made various
technical and substantive changes to law in order to ensure the proper implementation
of the California Fostering Connections Act of 2010.
SB 1013 (Committee on Budget and Fiscal Review) Chapter 35/2012 transferred the
authority to approve THP+FC providers from the counties to the DSS for licensure and
eliminated the potential gap in eligibility for nonminors reaching specified ages who
would otherwise have been ineligible for continued benefits due to the staggered
implementation dates for extended benefits established under AB 12.
Staff Comments: By expanding the definition of “relative” as authorized pursuant to
federal guidance, this bill increases eligibility for the federal Kin-GAP program (subject
to federal approval of a state plan amendment) to include placements with guardians
who are nonrelated extended family members, tribal kin, and current caregivers of foster
children, potentially resulting in a significant amount of increased federal financial
participation (FFP).
Nonminor former wards and dependents of nonrelated guardians are not currently
eligible for state- or federally-funded Kin-GAP, but are eligible for benefits under the
Foster Care program, and require ongoing county child welfare agency case
management. This bill expands the definition of relative for federally funded Kin-GAP for
guardianships ordered in juvenile court on or after October 1, 2012, thereby increasing
FFP for federal Kin-GAP assistance and administrative costs. Based on a federal share
of 50 percent, an average monthly federal Kin-GAP benefit payment of $688, and a KinGAP administrative cost of $42 per case, increased FFP of approximately $1 million is
estimated in 2012-13, increasing to over $12.5 million by 2016-17.
Fiscal responsibility for Foster Care, AAP, federal Kin-GAP, and CWS was realigned to
the counties under 2011Public Safety Realignment. As a result, the increased FFP
received under federal Kin-GAP is estimated to result in a corresponding level of county
cost savings (LRF), as nonrelated legal guardianships would have otherwise been
supported by realigned Foster Care funding for assistance and administrative costs.
Additionally, counties will realize ongoing significant CWS administrative cost savings
potentially in the millions of dollars (LRF) for cases transferred to the both the federal
and age extended state-funded Kin-GAP programs that otherwise would have been
provided for ongoing county child welfare agency case management services under
foster care.
Under the federal Kin-GAP program, at 18 years of age, the continuation of state- or
federally-funded Kin-GAP to nonminors is limited to nonminors whose Kin-GAP
negotiated agreement payments commenced on or after 16 years of age. This bill
provides that the benefits of the age extended state-funded Kin-GAP program be
available upon the nonminor’s attainment of 18 years of age, if the nonminor otherwise
meets eligibility criteria and who was under 16 years of age at the time the Kin-GAP
negotiated agreement payments commenced.
Based on a combined average monthly state Kin-GAP benefit and administrative cost of
$663 would result in increased state costs of less than $250,000 (General Fund) in
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2012-13, increasing to approximately $4.3 million (General Fund) per year assuming a
shift of nonfederally eligible nonminor former wards and dependents. This estimate is
based on the assumption that a small number of nonminors per month would transfer to
the age extended state Kin-GAP program commencing in 2013. Based on the existing
caseload of 780 placements with nonrelated legal guardians, it is assumed a subset will
turn 18 years of age each month, and of those turning 18, only a subset of those
individuals would have commenced Kin-GAP payments prior to age 16 and continue to
meet all eligibility requirements. To the extent the actual number of cases is determined
to be significantly higher, the impact to the state would also be commensurately greater.
This bill provides codified legislative findings and declarations stating, “The continuation
of state-funded Kin-GAP to nonminors impacted by the expanded definition of “relative
guardian” is necessary to ensure that inadvertent fiscal disincentives are not created for
foster parents who want to become the legal guardians of foster children and that
nonminors continue to be eligible for Kin-GAP state-funded assistance payments in lieu
of state-funded assistance payments that they would otherwise be entitled to receive…”
Staff notes that while preserving the continuity of assistance payments for these
nonminors would result in significant cost savings in the Foster Care and CWS
programs that are now funded through Local Realignment funds as well as draw down
significant federal funds, the provision of age extended state Kin-GAP benefits will also
result in potentially significant ongoing increased state General Fund costs.
This bill provides for the provision of various services and eligibility to be extended to
nonminor dependents, including FR and supportive transition services, as well as the
expansion of duties of foster care public health nurses (PHNs) to include assisting
nonminor dependents in accessing health and mental health care, coordinating the
delivery of services, and advocating for the care that meets the needs of the nonminor
dependent. Although the costs for these services have been realigned to the counties,
to the extent the provisions of this bill result in increased costs not covered under Local
Realignment funding provided to the counties could result in future state-reimbursable
costs for the extension and expansion of these services to nonminors.
Proposed Author Amendments: Delete the proposed amendments to the Education
Code and make various other technical changes.