Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and supplemental security income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care and nearing emancipation to be screened by the county for potential eligibility for federal Supplemental Security Income and requires that screening to occur when the foster youth is at least 16 years and 6 months of age and not older than 17 years and 6 months of age.

This bill, among other things, would require a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the childs benefits are not used to pay for, or to reimburse, the placing agency for any costs of the childs care and supervision, as defined. The bill would make these requirements operative January 1, 2024, or 30 days after the department issues the necessary all-county letters and informing materials to county placing agencies, whichever is later. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

Existing law requires the State Department of Social Services to convene a workgroup to develop best practice guidelines for county welfare departments to assist eligible children who are in the states or a countys custody and are qualified in obtaining federal social security and supplemental security income benefits. Existing law requires that workgroup to make recommendations to the department, by December 31, 2006, regarding the feasibility and cost-effectiveness of reserving a designated amount of foster childrens social security and SSI/SSP benefits in lieu of reimbursing the county and the state for care and maintenance, and, in making those recommendations, to consider that the reserved benefits would be for the purpose of assisting the foster child in the transfer to self-sufficient living in a manner consistent with federal law.

This bill would repeal the requirement for that workgroup to make the above-described recommendations regarding feasibility and cost-effectiveness.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and supplemental security income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care and nearing emancipation to be screened by the county for potential eligibility for federal Supplemental Security Income and requires that screening to occur when the foster youth is at least 16 years and 6 months of age and not older than 17 years and 6 months of age.

This bill, among other things, would require a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the childs benefits are not used to pay for, or to reimburse, the placing agency for any costs of the childs care and supervision, as defined. The bill would make these requirements operative January 1, 2024, or 30 days after the department issues the necessary all-county letters and informing materials to county placing agencies, whichever is later. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

Existing law requires the State Department of Social Services to convene a workgroup to develop best practice guidelines for county welfare departments to assist eligible children who are in the states or a countys custody and are qualified in obtaining federal social security and supplemental security income benefits. Existing law requires that workgroup to make recommendations to the department, by December 31, 2006, regarding the feasibility and cost-effectiveness of reserving a designated amount of foster childrens social security and SSI/SSP benefits in lieu of reimbursing the county and the state for care and maintenance, and, in making those recommendations, to consider that the reserved benefits would be for the purpose of assisting the foster child in the transfer to self-sufficient living in a manner consistent with federal law.

This bill would repeal the requirement for that workgroup to make the above-described recommendations regarding feasibility and cost-effectiveness.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and supplemental security income (SSI) benefits for, among others, blind and disabled children. Existing law requires every youth who is in foster care and nearing emancipation to be screened by the county for potential eligibility for federal Supplemental Security Income and requires that screening to occur when the foster youth is at least 16 years and 6 months of age and not older than 17 years and 6 months of age.

This bill, among other things, would require the assistance the county provides to the foster youth with respect to those benefits to include applicable financial literacy training and support. The bill would require the county to document that assistance in the youths transitional independent living plan. The bill would require the above-described screening to occur within 60 days of the childs entry into foster care, as specified. The bill would also require a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the childs benefits are not used to pay for, or to reimburse, the placing agency for any costs of the childs care. care and supervision, as defined. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

Existing law requires the State Department of Social Services to convene a workgroup to develop best practice guidelines for county welfare departments to assist eligible children who are in the states or a countys custody and are qualified in obtaining federal social security and supplemental security income benefits. Existing law requires that workgroup to make recommendations to the department, by December 31, 2006, regarding the feasibility and cost-effectiveness of reserving a designated amount of foster childrens social security and SSI/SSP benefits in lieu of reimbursing the county and the state for care and maintenance, and, in making those recommendations, to consider that the reserved benefits would be for the purpose of assisting the foster child in the transfer to self-sufficient living in a manner consistent with federal law.

This bill would repeal the requirement for that workgroup to make the above-described recommendations regarding feasibility and cost-effectiveness.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and supplemental security income (SSI) benefits for, among others, blind and disabled children. Existing law, effective 30 days after the State Department of Social Services issues specified guidance to county placing agencies, requires the county to provide information relating to SSI payments to a foster youth receiving those benefits at least 6 months before their 18th birthday. Existing law requires the county to provide certain information regarding the federal requirement that the youth establish continuing disability as an adult, if necessary, in order to continue receiving SSI benefits beyond their 18th birthday, and information regarding the process for the youth to become their own payee, or designate an appropriate representative payee, as necessary. Existing law requires the county to assist the youth in fulfilling those requirements, as appropriate. Existing law requires every youth who is in foster care and nearing emancipation to be screened by the county for potential eligibility for federal Supplemental Security Income and requires that screening to occur when the foster youth is at least 16 years and 6 months of age and not older than 17 years and 6 months of age.

This bill would additionally apply certain of those provisions to benefits the foster youth is receiving from the federal Veterans Benefits Administration. The bill bill, among other things, would require the assistance the county provides to the foster youth with respect to those benefits to include applicable financial literacy training and support. The bill would require the county to document that assistance in the youths transitional independent living plan. The bill would require the above-described screening to occur within 60 days of the childs entry into foster care, as specified. The bill would also require a placing agency to act in accordance with specified guidelines and pursuant to certain requirements when acting as the representative payee or in any other fiduciary capacity for a child or youth, including, among other requirements, ensuring that the childs benefits are not used to pay for, or to reimburse, the placing agency for any costs of the childs care. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the out-of-home placement, including foster care placement, of children who are unable to remain in the custody and care of their parents. Existing law, the federal Social Security Act, provides for benefits for eligible beneficiaries, including survivorship and disability benefits and supplemental security income (SSI) benefits for, among others, blind and disabled children. Existing law, effective 30 days after the State Department of Social Services issues specified guidance to county placing agencies, requires the county to provide information relating to SSI payments to a foster youth receiving those benefits at least 6 months before their 18th birthday. Existing law requires the county to provide certain information regarding the federal requirement that the youth establish continuing disability as an adult, if necessary, in order to continue receiving SSI benefits beyond their 18th birthday, and information regarding the process for the youth to become their own payee, or designate an appropriate representative payee, as necessary. Existing law requires the county to assist the youth in fulfilling those requirements, as appropriate.

This bill would additionally apply certain of those provisions to benefits the foster youth is receiving from the federal Veterans Benefits Administration. The bill would require the assistance the county provides to the foster youth with respect to those benefits to include applicable financial literacy training and support. The bill would require the county to document that assistance in the youths transitional independent living plan. By increasing county duties with respect to foster youth, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

GOVERNOR'S VETO

GV Bill Id:AB 1512

Author:(Bryan and Bauer-Kahan)

As Enrolled Ver:September 18, 2023

2/3 vote

SUMMARY

Expands the information counties are required to provide to foster youth receiving Social Security Income (SSI) benefits who are approaching their 18th birthday, to include information regarding all federal Social Security Administration (SSA) benefits, and requires counties to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care and supervision. Requires the county, prior to applying to be appointed representative payee, to send a written notice of the intent to be appointed to the child's counsel and parents or legal guardians.

Senate amendments

1. Removed the requirement for the county to provide information on financial literacy training and support, and to document that assistance in the youth's transitional independent living plan at least six months before a youth's 18th birthday, when a foster youth is receiving payments from the SSA.
2. Clarified the role of the placing agency when acting in accordance with the Guide for Organizational Representative Payees, including providing an account, on request, instead of every six months, of how, and in what amount, the child's resources have been conserved.
3. Removed the requirement for specified court reports to document how the county is complying with these provisions, including the amounts spent or designated and for what purpose.
4. Clarified that the placing agency is required to promptly notify the child, the child's attorney, and the child's parents before, or concurrent with, specified information regarding actions taken by the SSA on the child's behalf, and to provide this information upon request.
5. Specified that at least 30 days before the child's exit from foster care to permanency, the placing agency, if they are the representative payee, is required to collaborate with the child, the child's attorney, and the child's parents to begin transfer or control and responsibility for any funds conserved to the child's parent, guardian, adoptive parent, or the child, if the child has exited after 18 years of age, unless the child chooses to select another representative payee.
6. Removed the requirement for the placing agency to develop a written plan for the future use and control of any funds conserved under these provisions.
7. Limited the requirement for the county to screen every youth who is in foster care for potential eligibility for SSA benefits, to apply only to foster youth over 16 years of age and not older than 17 years of age, and remove the requirement for this screening to occur within 60 days of the child's entry into foster care and annually thereafter.
8. Clarified that counties are not precluded from screening youth for eligibility prior to the youth attaining 16 years of age.
9. Established an operative date of January 1, 2024, or 30 days after CDSS issues the necessary all-county letters and informing materials to county placing agencies, whichever is later

Governor's Veto Message

This bill would require counties to take additional actions relating to foster youth eligibility for all federal Social Security Administration (SSA) benefits and would prohibit using a child's benefits to pay for any costs of the child's care.

I share the author's commitment to ensure that foster youth receive the benefits and support services they need. However, this bill creates implementation challenges that should be considered as part of the annual budget process. Both Supplemental Security Income (SSI) and foster care benefits are intended to provide for the daily care and supervision of youth, including costs for housing and food. If counties are not permitted to use SSI to cover the cost of providing

care to foster youth, the General Fund will need to offset those costs. This was not contemplated as part of the budget process.

In partnership with the Legislature, we enacted a budget that closed a shortfall of more than $30 billion through balanced solutions that avoided deep program cuts and protected education, health care, climate, public safety, and social service programs that are relied on by millions of Californians. This year, however, the Legislature sent me bills outside of this budget process that, if all enacted, would add nearly $19 billion of unaccounted costs in the budget, of which $11 billion would be ongoing.

With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications, such as this measure.

COMMENTS

Federal Social Security Administration benefits and foster youth. Foster youth can be eligible for different types of federal benefits under the SSA, such as survivor benefits, SSI benefits, and disability benefits. This bill strikes references to SSI benefits and broadens the references to include the various forms of federal benefits that foster youth can be eligible for, and that counties are required to screen for eligibility when a foster youth is at least 16 years of age and not older than 17 years of age. Many children who come into child welfare services custody suffer not only from abuse or neglect, but also have serious physical or mental disabilities. These children with disabilities may qualify for additional assistance through federal social security benefits and/or the federal Supplemental Security Income program and the State Supplemental Payment (SSI/SSP). Following the legislative efforts to ensure best practices for youth maintaining SSI eligibility on foster care, in 2008, the SSA granted the state approval to allow California's disabled foster youth to apply for SSI/SSP benefits prior to age 18; in early 2010, the SSA issued a nationwide directive allowing other states to follow suit.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee" - which can be a relative, adult friend, or the county - receives the check. Existing law suggests that the county should be the payee of last resort - applying only when no other appropriate party is available to serve. As the representative payee, the county may use the child's SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child's SSI eligibility.

The payee must use that money to pay for things like medical care, housing, clothing, food and personal comfort items. When there is money left over from SSA payments that are not needed to pay for such items, the payee deposits the money into a bank account called a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Maintenance accounts cannot exceed $2,000 (due to federal SSI rules). If assets exceed $2,000, the youth can lose SSI eligibility. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth's basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements. If the county has been serving as a foster youth's representative payee, when they reach 18 years of age, the county is required to assist these youth in receiving their own SSA checks or to find a responsible adult to be appointed as the representative payee. County social workers are required to help with transition planning which may include keeping SSA benefits after exiting foster care. If a youth is already receiving SSI when they reach 18 years of age, the SSA will ask for information related to the disability around the time the youth turns 18 to make a determination whether they will qualify for SSI under the adult rules, a practice called an "Age 18 Redetermination." For SSA to find that a youth is eligible for SSI as an adult, they must have a medical condition that keeps them from working. California led the way in the nation for establishing laws that work to ensure youth are appropriately screened for SSI eligibility while in care. AB 1633 (Evans) established a workgroup whereby counties and child welfare stakeholders developed best practice guidelines for establishing and maintaining social security eligibility for youth in foster care. Recommendations issued by the workgroup were included in a subsequent bill, AB 1331 (Evans), Chapter 465, Statutes of 2007, which required all counties to screen foster youth and submit applications on their behalf between the ages of 16 years and six months and 17 years and six months as a means of ensuring SSI benefits are in place when the youth turns 18. This bill would require counties to screen youth who are in foster care for potential eligibility for SSA benefits, not just SSI benefits. This bill would update current practices to require counties to notify the child, the child's attorney, and the child's parents or guardians about any application for benefits administered by the SSA made on the child's behalf, any application by the placing agency to become a representative payee, any decisions or communications from the SSA regarding an application for benefits, and any action taken by the agency regarding an application for benefits. This bill would also require a placing agency to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care and supervision, and that the benefits are conserved in a way that avoids termination of benefits as result of exceeding the federal asset, resource, or income limits.

Equity Implications. Foster youth are among our state's most vulnerable populations. Close to 31% of transition-age foster youth experience homelessness, another 25% come into contact with the justice system within two years of aging out of foster care and about 20% report having a health condition or disability that limits their daily activities. Only 50% complete their high school education, and less than 10% attain a college degree. California's foster youth population is disproportionately Black and Latino when compared to their non-foster youth peers. Foster youth face significant barriers while in the system and have even more challenges as they transition out of the child welfare system and into adulthood and self-sufficiency. This bill would ensure that eligible foster youth have increased resources for a stable and independent life while in care and after they exit care into adulthood.

According to the Author

"With [this bill], California will join a national movement of states ending the archaic practice of recouping the costs of a child's time in foster care through collecting their survivor's and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child's care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. In 2021 the Department of Child and Family Services in Los Angeles County (DCFS) collected about $5.4 million in revenue through this practice. While this $5.4 million accounts for only 0.18% of DCFS's budget, for youth with disabilities or youth who have lost a parent, this money could be the difference between going to college or going to prison. [This bill] will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system."

Arguments in Support

According to co-sponsor, Los Angeles County, "Current law allows a county placing agency to intercept and utilize a youth's SSA benefits to "offset" or reimburse itself for the youth's foster care costs. This practice prevents youth from receiving the value of the benefits to which they are entitled. [This bill] would amend the law to ensure that conserving youths' SSA benefits becomes the standard practice in Los Angeles County and throughout California..."

The Children's Advocacy Institute (CAI) writes in support, "CAI believes the requirements of this bill represent the bare minimum of what is legally and morally required of us when it comes to these children and their funds. Several other states have taken action to cease this outdated and harmful practice. It is time for California to join their ranks."

Arguments in Opposition

No opposition on file

FISCAL COMMENTS

According to the Senate Appropriations Committee on September 1, 2023:

1. Unknown one-time General Fund costs, likely hundreds of thousands, for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
2. Unknown ongoing costs, likely millions to tens of millions, to counties (General Fund and federal funds).
3. To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

VOTES

ASM HUMAN SERVICES: 7-0-1

YES: Jackson, Sanchez, Alanis, Arambula, Bonta, Bryan, Calderon

ABS, ABST OR NV: Garcia

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

ASSEMBLY FLOOR: 79-0-1

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Gabriel

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Caballero, Grove, Limón

ASSEMBLY FLOOR: 80-0-0

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones‑Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

UPDATED

VERSION: September 18, 2023

CONSULTANT: Jessica Langtry / HUM. S. / (916) 319-2089 FN: 0002516

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1512

Author:(Bryan and Bauer-Kahan)

As Amended Ver:September 8, 2023

Majority vote

SUMMARY

Expands the information counties are required to provide to foster youth receiving Social Security Income (SSI) benefits who are approaching their 18th birthday, to include information regarding all federal Social Security Administration (SSA) benefits, and requires counties to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care and supervision. Requires the county, prior to applying to be appointed representative payee, to send a written notice of the intent to be appointed to the child's counsel and parents or legal guardians.

Senate Amendments

1. Remove the requirement for the county to provide information on financial literacy training and support, and to document that assistance in the youth's transitional independent living plan at least six months before a youth's 18th birthday, when a foster youth is receiving payments from the SSA.
2. Clarify the role of the placing agency when acting in accordance with the Guide for Organizational Representative Payees, including providing an account, on request, instead of every six months, of how, and in what amount, the child's resources have been conserved.
3. Remove the requirement for specified court reports to document how the county is complying with these provisions, including the amounts spent or designated and for what purpose.
4. Clarify that the placing agency is required to promptly notify the child, the child's attorney, and the child's parents before, or concurrent with, specified information regarding actions taken by the SSA on the child's behalf, and to provide this information upon request.
5. Specify that at least 30 days before the child's exit from foster care to permanency, the placing agency, if they are the representative payee, is required to collaborate with the child, the child's attorney, and the child's parents to begin transfer or control and responsibility for any funds conserved to the child's parent, guardian, adoptive parent, or the child, if the child has exited after 18 years of age, unless the child chooses to select another representative payee.
6. Remove the requirement for the placing agency to develop a written plan for the future use and control of any funds conserved under these provisions.
7. Limit the requirement for the county to screen every youth who is in foster care for potential eligibility for SSA benefits, to apply only to foster youth over 16 years of age and not older than 17 years of age, and remove the requirement for this screening to occur within 60 days of the child's entry into foster care and annually thereafter.
8. Clarify that counties are not precluded from screening youth for eligibility prior to the youth attaining 16 years of age.
9. Establish an operative date of January 1, 2024, or 30 days after CDSS issues the necessary all-county letters and informing materials to county placing agencies, whichever is later.

COMMENTS

Federal Social Security Administration benefits and foster youth. Foster youth can be eligible for different types of federal benefits under the SSA, such as survivor benefits, SSI benefits, and disability benefits. This bill strikes references to SSI benefits and broadens the references to include the various forms of federal benefits that foster youth can be eligible for, and that counties are required to screen for eligibility when a foster youth is at least 16 years of age and not older than 17 years of age. Many children who come into child welfare services custody suffer not only from abuse or neglect, but also have serious physical or mental disabilities. These children with disabilities may qualify for additional assistance through federal social security benefits and/or the federal Supplemental Security Income program and the State Supplemental Payment (SSI/SSP). Following the legislative efforts to ensure best practices for youth maintaining SSI eligibility on foster care, in 2008, the SSA granted the state approval to allow California's disabled foster youth to apply for SSI/SSP benefits prior to age 18; in early 2010, the SSA issued a nationwide directive allowing other states to follow suit.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee" - which can be a relative, adult friend, or the county - receives the check. Existing law suggests that the county should be the payee of last resort - applying only when no other appropriate party is available to serve. As the representative payee, the county may use the child's SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child's SSI eligibility.

The payee must use that money to pay for things like medical care, housing, clothing, food and personal comfort items. When there is money left over from SSA payments that are not needed to pay for such items, the payee deposits the money into a bank account called a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Maintenance accounts cannot exceed $2,000 (due to federal SSI rules). If assets exceed $2,000, the youth can lose SSI eligibility. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth's basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements. If the county has been serving as a foster youth's representative payee, when they reach 18 years of age, the county is required to assist these youth in receiving their own SSA checks or to find a responsible adult to be appointed as the representative payee. County social workers are required to help with transition planning which may include keeping SSA benefits after exiting foster care. If a youth is already receiving SSI when they reach 18 years of age, the SSA will ask for information related to the disability around the time the youth turns 18 to make a determination whether they will qualify for SSI under the adult rules, a practice called an "Age 18 Redetermination." For SSA to find that a youth is eligible for SSI as an adult, they must have a medical condition that keeps them from working. California led the way in the nation for establishing laws that work to ensure youth are appropriately screened for SSI eligibility while in care. AB 1633 (Evans) established a workgroup whereby counties and child welfare stakeholders developed best practice guidelines for establishing and maintaining social security eligibility for youth in foster care. Recommendations issued by the workgroup were included in a subsequent bill, AB 1331 (Evans), Chapter 465, Statutes of 2007, which required all counties to screen foster youth and submit applications on their behalf between the ages of 16 years and six months and 17 years and six months as a means of ensuring SSI benefits are in place when the youth turns 18. This bill would require counties to screen youth who are in foster care for potential eligibility for SSA benefits, not just SSI benefits. This bill would update current practices to require counties to notify the child, the child's attorney, and the child's parents or guardians about any application for benefits administered by the SSA made on the child's behalf, any application by the placing agency to become a representative payee, any decisions or communications from the SSA regarding an application for benefits, and any action taken by the agency regarding an application for benefits. This bill would also require a placing agency to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care and supervision, and that the benefits are conserved in a way that avoids termination of benefits as result of exceeding the federal asset, resource, or income limits.

Equity Implications. Foster youth are among our state's most vulnerable populations. Close to 31% of transition-age foster youth experience homelessness, another 25% come into contact with the justice system within two years of aging out of foster care and about 20% report having a health condition or disability that limits their daily activities. Only 50% complete their high school education, and less than 10% attain a college degree. California's foster youth population is disproportionately Black and Latino when compared to their non-foster youth peers. Foster youth face significant barriers while in the system and have even more challenges as they transition out of the child welfare system and into adulthood and self-sufficiency. This bill would ensure that eligible foster youth have increased resources for a stable and independent life while in care and after they exit care into adulthood.

According to the Author

"With [this bill], California will join a national movement of states ending the archaic practice of recouping the costs of a child's time in foster care through collecting their survivor's and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child's care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. In 2021 the Department of Child and Family Services in Los Angeles County (DCFS) collected about $5.4 million in revenue through this practice. While this $5.4 million accounts for only 0.18% of DCFS's budget, for youth with disabilities or youth who have lost a parent, this money could be the difference between going to college or going to prison. [This bill] will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system."

Arguments in Support

According to co-sponsor, Los Angeles County, "Current law allows a county placing agency to intercept and utilize a youth's SSA benefits to "offset" or reimburse itself for the youth's foster care costs. This practice prevents youth from receiving the value of the benefits to which they are entitled. [This bill] would amend the law to ensure that conserving youths' SSA benefits becomes the standard practice in Los Angeles County and throughout California..."

The Children's Advocacy Institute (CAI) writes in support, "CAI believes the requirements of this bill represent the bare minimum of what is legally and morally required of us when it comes to these children and their funds. Several other states have taken action to cease this outdated and harmful practice. It is time for California to join their ranks."

Arguments in Opposition

No opposition on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee on September 1, 2023:

1. Unknown one-time General Fund costs, likely hundreds of thousands, for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
2. Unknown ongoing costs, likely millions to tens of millions, to counties (General Fund and federal funds).
3. To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

VOTES:

ASM HUMAN SERVICES: 7-0-1

YES: Jackson, Sanchez, Alanis, Arambula, Bonta, Bryan, Calderon

ABS, ABST OR NV: Garcia

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

ASSEMBLY FLOOR: 79-0-1

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Gabriel

UPDATED

VERSION: September 8, 2023

CONSULTANT: Jessica Langtry / HUM. S. / (916) 319-2089 FN: 0002399

 THIRD READING  

Bill No: AB 1512

Author: Bryan (D) and Bauer-Kahan (D), et al.

Amended: 9/8/23 in Senate

Vote: 21

SENATE HUMAN SERVICES COMMITTEE: 4-0, 7/13/23

AYES: Alvarado-Gil, Ochoa Bogh, Menjivar, Wahab

NO VOTE RECORDED: Hurtado

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 79-0, 6/1/23 - See last page for vote

SUBJECT: Foster care payments

SOURCE: Alliance for Children's Rights

Children's Law Center of California

County of Los Angeles Board of Supervisors

Youth Law Center

DIGEST:

This bill revises requirements for counties to screen foster youth eligibility for benefits to include all federal Social Security Administration (SSA) benefits, including Supplemental Security Income (SSI) benefits, regardless of age, and requires counties to ensure the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care. This bill also requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf.

Senate Floor Amendments of 9/8/23 make the requirements of the bill operative January 1, 2024, or 30 days after the department issues the necessary all-county letters and informing materials to county placing agencies, whichever is later.

ANALYSIS:

Existing law:

1. Establishes in federal law the “SSI for the Aged, Blind, and Disabled Program” to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 USC 1381-1383(f))
2. Provides that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 CFR 416.645)
3. Establishes the “State Supplementary Payment” (SSP) for people who are aged, blind or disabled, which is intended to supplement federal SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC §12000 et seq.)
4. Defines “nonminor dependent” (NMD) as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a TILP, as specified. (WIC §11400(v))
5. Defines “Aid to Families with Dependent Children--Foster Care” (AFDC-FC) to mean the aid provided on behalf of needy children in foster care and defines eligibility for minors and NMDs (WIC §11400 et seq).
6. States legislative intent that NMDs who have had their eligibility for SSI established be able to maintain that eligibility even when they remain in the state’s care as a NMD, and to facilitate this, states further legislative intent that the county child welfare agency ensure that the youth receives an SSI payment during at least one month of each 12- month period while the youth is an NMD and that the county child welfare agency supplement that SSI payment that a youth receives during this one-month period with nonfederal AFDC-FC benefits. (WIC §13754(a))
7. Requires counties to provide information on how, and assist the youth with, establishing continuing disability as an adult and how to become their own payee or designate an appropriate representative payee to all foster youth who are receiving SSI payments and approaching their 18th birthday, as provided. (WIC §13753)
8. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs, and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC §13754(b)(1)-(2))
9. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC §13754(c))
10. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC §13757(a)(1))
11. Requires the county SSI screening only to occur when the foster youth is 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC §13757(a)(2))

This bill:

1. Broadens existing statutory requirements that a county provide information and assist a youth or NMD in establishing SSI benefits, including appealing denials, to apply to all benefits administered by the SSA.
2. Requires a county that is applying to be the representative payee on behalf of a child in its custody to send a written notice of the intent to be appointed representative payee to the child’s counsel and the child’s parents or legal guardians.
3. Requires a county to help a NMD who has chosen a representative payee that is not the county to understand any restrictions on the use of federal SSA funds and assist in communicating any changes to the SSA if those changes would affect the nonminor dependents eligibility for benefits from the SSA.
4. If a county is the representative payee, adds to other mandates the requirement to ensure the child or nonminor dependent’s benefits are used for the child or nonminor dependent, as specified.
5. Requires that a county that is serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, must act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and shall do all of the following:
   1. Ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and supervision and are conserved for the child, as specified.
   2. Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interest is served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal limits, including establishing and maintaining a dedicated account, as specified, a Plan Achieve Self-Support (“PASS”) account, a 529A plan, including a CalABLE account, an individual development account, an individual or pooled special needs trust on behalf of the child, or other viable account type, and preserves eligibility for other benefits to which the child may be entitled.
   3. Provide, upon request, an accounting to the child if the child is 12 years of age or older, and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal Social Security Administration, have been conserved.
6. Requires the county placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians if any of the following occurs:
   1. Any application for benefits administered by the federal Social Security Administration made by the agency on the child’s behalf, as defined.
   2. Any application by the placing agency to become a representative payee for benefits administered by the SSA on the child’s behalf.
   3. Any decisions or communications from the SSA regarding an application for benefits, as specified.
   4. Any action taken by the agency regarding an application for benefits, as specified.
7. Requires at least 30 days before the child’s exit from foster care to permanency, if the placing agency is the representative payee, the placing agency shall collaborate with the child, the child’s attorney, and the child’s parents or guardians if the child is exiting to reunification or the child’s guardian or adoptive parent if the child is exiting to guardianship or adoption, to begin transfer or control and responsibility for any funds conserved under this section to the child’s parent, guardian, adoptive parent, or the child if the child has exited after 18 years of age, unless the child chooses to select another representative payee.
8. Provides that these requirements shall become operative January 1, 2024, or 30 days after the department issues the necessary all-county letters and informing materials to county placing agencies, whichever is later.
   

Comments

Author’s statement. According to the author, this bill enables California to “join a national movement of states ending the archaic practice of recouping the costs of a child’s time in foster care through collecting their survivor’s and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child’s care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. AB 1512 will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system.”

Child Welfare Services. More than 50,000 children are under the jurisdiction of California’s child welfare system due to allegations of abuse, neglect or exploitation, according to data produced by UC Berkeley’s Child Welfare Indicators website. The child welfare system is designed to protect children by providing intensive services to families in order to keep them together under the supervision of a juvenile dependency judge. However, if maintaining the family is determined not to be in the best interest of the child, the county’s child welfare agency arranges for and monitors temporary or permanent placement of the child in the safest and least-restrictive environment possible. Often children are placed with relatives, non-related extended family members (NREFM), or foster parents.

It is the state’s goal to reunify a foster child or youth with their biological family whenever possible. In instances where reunification is not possible, it is the state’s goal to provide a permanent placement alternative, such as adoption or guardianship. In that circumstance, the state’s priority is to place children with other relatives or nonrelative extended family members. In 2022, county child welfare agencies received 440,212 reports of abuse or neglect. Of these, 51,806 reports contained allegations that were substantiated and 19,953 children were removed from their homes and placed into foster care.

Disability Benefits for Foster Youth. Under current law, California’s counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. This may include children in foster care with disabilities who are from low-income families, qualifying them for SSI. Others may be eligible for survivor benefits because one or both of their parents died.

Advocates report that counties often fail to notify the youth or their attorneys that they are applying for benefits, or whether they have been approved. It is common practice, advocates say, for a county to automatically apply to serve as representative payees for the youth and use the youth’s funds to reimburse themselves for the costs of the child’s care. While this practice is legal, there have been various articles and research studies questioning the practice.

Federal regulations dictate that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, the funds shall be conserved or invested on behalf of the beneficiary. Any investment must show clearly that the payee holds the property in trust for the beneficiary.

Related/Prior Legislation

SB 187 (Committee on Budget and Fiscal Review, Chapter 50, Statutes of 2022) required youth under the supervision of a county welfare agency, probation department or tribal organization to be screened once they are 16 years or older and to screen NMDs in specified circumstances. Required the county to submit an application of behalf of any NMDs whose screening indicates they are likely to be eligible for SSI or SSA benefits, among other changes.

SB 1300 (Durazo, 2022), would have revised the requirements that counties must complete before, and upon, a foster youth who is receiving federal SSI payments reaches their 18th birthday. It was held on the Assembly Appropriations Committee suspense file.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

• Unknown one-time General Fund costs, likely hundreds of thousands, for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
• Unknown ongoing costs, likely millions to tens of millions, to counties (General Fund and federal funds).
• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

SUPPORT: (Verified 9/11/23)

Alliance for Children's Rights (co-source)

Children's Law Center of California (co-source)

County of Los Angeles Board of Supervisors (co-source)

Youth Law Center (co-source)

Advokids
Alliance for Boys and Men of Color
Aspiranet
Bay Area Legal Aid
California Alliance of Caregivers
California Catholic Conference
California Youth Connection
Center for The Rights of Abused Children
Children Now
Children's Legal Services of San Diego
Childrens Advocacy Institute
Coalition of California Welfare Rights Organizations
County of Los Angeles
Dependency Advocacy Center
Dependency Legal Services
Family Violence Appellate Project
Grace Institute - End Child Poverty in Ca
John Burton Advocates for Youth
Justice in Aging
Law Foundation of Silicon Valley
Legal Aid Foundation of Los Angeles
Los Angeles County
National Association of Social Workers, California Chapter
National Institute for Criminal Justice Reform
Promises2kids
Public Counsel
San Diego; County of
William E. Morris Institute for Justice
Youth Will

OPPOSITION: (Verified 9/11/2023)

None received

ASSEMBLY FLOOR: 79-0, 6/1/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Gabriel

Prepared by: Heather Hopkins / HUMAN S. / (916) 651-1524

9/11/23 18:20:10

**** END ****

 THIRD READING  

Bill No: AB 1512

Author: Bryan (D) and Bauer-Kahan (D), et al.

Amended: 9/1/23 in Senate

Vote: 21

SENATE HUMAN SERVICES COMMITTEE: 4-0, 7/13/23

AYES: Alvarado-Gil, Ochoa Bogh, Menjivar, Wahab

NO VOTE RECORDED: Hurtado

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23

AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener

ASSEMBLY FLOOR: 79-0, 6/1/23 - See last page for vote

SUBJECT: Foster care payments

SOURCE: Alliance for Children's Rights

Children's Law Center of California

County of Los Angeles Board of Supervisors

Youth Law Center

DIGEST:

This bill revises requirements for counties to screen foster youth eligibility for benefits to include all federal Social Security Administration (SSA) benefits, including Supplemental Security Income (SSI) benefits, regardless of age, and requires counties to ensure the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care. This bill also requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf.

ANALYSIS:

Existing law:

1. Establishes in federal law the “SSI for the Aged, Blind, and Disabled Program” to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 USC 1381-1383(f))
2. Provides that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 CFR 416.645)
3. Establishes the “State Supplementary Payment” (SSP) for people who are aged, blind or disabled, which is intended to supplement federal SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.)
4. Defines “nonminor dependent” (NMD) as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a TILP, as specified. (WIC 11400(v))
5. Defines AFDC-FC to mean the aid provided on behalf of needy children in foster care and defines eligibility for minors and nonminor dependents (WIC 11400 et seq).
6. States legislative intent that NMDs who have had their eligibility for SSI established be able to maintain that eligibility even when they remain in the state’s care as a NMD, and to facilitate this, states further legislative intent that the county child welfare agency ensure that the youth receives an SSI payment during at least one month of each 12- month period while the youth is an NMD and that the county child welfare agency supplement that SSI payment that a youth receives during this one-month period with nonfederal AFDC-FC benefits. (WIC 13754(a))
7. Requires counties to provide information on how, and assist the youth with, establishing continuing disability as an adult and how to become their own payee or designate an appropriate representative payee to all foster youth who are receiving SSI payments and approaching their 18th birthday, as provided. (WIC 13753)
8. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs, and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC 13754(b)(1)-(2))
9. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC 13754(c))
10. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC 13757(a)(1))
11. Requires the county SSI screening only to occur when the foster youth is 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC 13757(a)(2))

This bill:

1. Broadens existing statutory requirements that a county provide information and assist a youth or nonminor dependent in establishing SSI benefits, including appealing denials, to apply to all benefits administered by the Social Security Administration (SSA).
2. Requires a county that is applying to be the representative payee on behalf of a child in its custody to send a written notice of the intent to be appointed representative payee to the child’s counsel and the child’s parents or legal guardians.
3. Requires a county to help a nonminor dependent who has chosen a representative payee that is not the county to understand any restrictions on the use of federal Social Security Administration funds and assist in communicating any changes to the SSA if those changes would affect the nonminor dependents eligibility for benefits from the SSA.
4. If a county is the representative payee, adds to other mandates the requirement to ensure the child or nonminor dependent’s benefits are used for the child or nonminor dependent, as specified.
5. Requires that a county that is serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, must act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and shall do all of the following:
   1. Ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and supervision and are conserved for the child, as specified.
   2. Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interest is served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal limits, including establishing and maintaining a dedicated account, as specified, a Plan Achieve Self-Support (“PASS”) account, a 529A plan, including a CalABLE account, an individual development account, an individual or pooled special needs trust on behalf of the child, or other viable account type, and preserves eligibility for other benefits to which the child may be entitled.
   3. Provide, upon request, an accounting to the child if the child is 12 years of age or older, and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal Social Security Administration, have been conserved.
6. Requires the county placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians if any of the following occurs:
   1. Any application for benefits administered by the federal Social Security Administration made by the agency on the child’s behalf, as defined.
   2. Any application by the placing agency to become a representative payee for benefits administered by the SSA on the child’s behalf.
   3. Any decisions or communications from the SSA regarding an application for benefits, as specified.
   4. Any action taken by the agency regarding an application for benefits, as specified.
7. Requires at least 30 days before the child’s exit from foster care to permanency, if the placing agency is the representative payee, the placing agency shall collaborate with the child, the child’s attorney, and the child’s parents or guardians if the child is exiting to reunification or the child’s guardian or adoptive parent if the child is exiting to guardianship or adoption, to begin transfer or control and responsibility for any funds conserved under this section to the child’s parent, guardian, adoptive parent, or the child if the child has exited after 18 years of age, unless the child chooses to select another representative payee.

Comments

According to the author, this bill will enable California to “join a national movement of states ending the archaic practice of recouping the costs of a child’s time in foster care through collecting their survivor’s and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child’s care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. AB 1512 will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system.”

Child Welfare Services More than 50,000 children are under the jurisdiction of California’s child welfare system due to allegations of abuse, neglect or exploitation, according to data produced by UC Berkeley’s Child Welfare Indicators website. The child welfare system is designed to protect children by providing intensive services to families in order to keep them together under the supervision of a juvenile dependency judge. However, if maintaining the family is determined not to be in the best interest of the child, the county’s child welfare agency arranges for and monitors temporary or permanent placement of the child in the safest and least-restrictive environment possible. Often children are placed with relatives, non-related extended family members (NREFM), or foster parents.

It is the state’s goal to reunify a foster child or youth with their biological family whenever possible. In instances where reunification is not possible, it is the state’s goal to provide a permanent placement alternative, such as adoption or guardianship. In that circumstance, the state’s priority is to place children with other relatives or nonrelative extended family members. In 2022, county child welfare agencies received 440,212 reports of abuse or neglect. Of these, 51,806 reports contained allegations that were substantiated and 19,953 children were removed from their homes and placed into foster care.

Disability Benefits for Foster Youth Under current law, California’s counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. This may include children in foster care with disabilities who are from low-income families, qualifying them for a Social Security program called Supplemental Security Income, or SSI. Others may be eligible for survivor benefits because one or both of their parents died.

Advocates report that counties often fail to notify the youth or their attorneys that they are applying for benefits, or whether they have been approved. It is common practice, advocates say, for a county to automatically apply to serve as representative payees for the youth and use the youth’s funds to reimburse themselves for the costs of the child’s care. While this practice is legal, there have been various articles and research studies questioning the practice.

Federal regulations dictate that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, the funds shall be conserved or invested on behalf of the beneficiary. Any investment must show clearly that the payee holds the property in trust for the beneficiary.

Related/Prior Legislation

SB 187 (Committee on Budget and Fiscal Review, Chapter 50, Statutes of 2022) required youth under the supervision of a county welfare agency, probation department or tribal organization to be screened once they are 16 years or older and to screen nonminor dependents in specified circumstances. Required the county to submit an application of behalf of any nonminor dependent whose screening indicates they are likely to be eligible for SSI or SSA benefits, among other changes.

SB 1300 (Durazo of 2022), would have revised the requirements that counties must complete before, and upon, a foster youth who is receiving federal SSI payments reaches their 18th birthday. It was held on the Assembly Appropriations Committee suspense file.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

According to the Senate Appropriations Committee:

• Unknown one-time General Fund costs, likely hundreds of thousands, for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
• Unknown ongoing costs, likely millions to tens of millions, to counties (General Fund and federal funds).
• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

SUPPORT: (Verified 9/2/23)

Alliance for Children's Rights (co-source)

Children's Law Center of California (co-source)

County of Los Angeles Board of Supervisors (co-source)

Youth Law Center (co-source)

Advokids

Alliance for Boys and Men of Color

Aspiranet

Bay Area Legal Aid

California Alliance of Caregivers

California Catholic Conference

California Youth Connection

Center for The Rights of Abused Children

Children Now

Children's Legal Services of San Diego

Childrens Advocacy Institute

Coalition of California Welfare Rights Organizations

County of Los Angeles

Dependency Advocacy Center

Dependency Legal Services

Family Violence Appellate Project

Grace Institute - End Child Poverty in California

John Burton Advocates for Youth

Justice in Aging

Law Foundation of Silicon Valley

Legal Aid Foundation of Los Angeles

Los Angeles County

National Association of Social Workers, California Chapter

National Institute for Criminal Justice Reform

Promises2kids

Public Counsel

San Diego; County of

William E. Morris Institute for Justice

Youth Will

OPPOSITION: (Verified 9/2/2023)

None received

ASSEMBLY FLOOR: 79-0, 6/1/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Gabriel

Prepared by: Heather Hopkins / HUMAN S. / (916) 651-1524

9/4/23 10:27:44

**** END ****

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1512 (Bryan) - Foster care payments

Bill Summary:

AB 1512 would revise and expand the existing requirements for counties to screen foster youth for eligibility for federal Supplemental Security Income (SSI) benefits, as specified.

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2023

Fiscal Impact:

• Unknown one-time General Fund costs, likely hundreds of thousands, for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
• Unknown ongoing costs, likely millions to tens of millions, to counties (General Fund and federal funds).
• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

Author Amendments:

Author amendments, among other provisions, include the following:

• Delete the requirement to provide financial literacy training and support.
• Revise the duties of the placing agency when acting as the representative payee.
• Delete the requirement that the screening occur within 60 days of the child’s entry into foster care and annually thereafter.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1512 (Bryan) - Foster care payments

Bill Summary:

AB 1512 would revise and expand the existing requirements for counties to screen foster youth for eligibility for federal Supplemental Security Income (SSI) benefits, as specified.

Fiscal Impact:

• The California Department of Social Services estimates the following:
• One-time General Fund costs of $750,000 for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
• Unknown ongoing costs, likely in the millions to tens of millions, to counties (General Fund and federal funds).
• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

Background:

Foster youth can be eligible for different types of federal benefits under the Social Security Administration (SSA), such as survivor benefits and SSI benefits. The SSI program provides income support to eligible individuals who are aged 65 or older, blind or disabled. SSI benefits are available to qualified blind or disabled children. Under current law, counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. If a foster youth is already receiving SSI benefits and approaching their 18^th birthday, counties must provide information on how, and assist the foster youth with, establishing continuing disability as an adult for purposes of maintaining SSI eligibility beyond their 18^th birthday.

Current law requires the county to apply to be the appointed representative payee for SSI benefits on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Counties serving as representative payees for a foster child’s SSI benefits must follow certain practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized income and expenditures from the account, creation of procedures for disbursing money from the account, and limitations on the purposes for which deductions may be made from the accounts.

Proposed Law:

Specific provisions of the bill would:

• Require every foster youth, not just youth over 16 year of age, to be screened by the county for potential eligibility for all federal Social Security Administration (SSA), not just SSI, benefits.
• Require counties to assist foster youth approaching 18 years of age who are receiving any SSA, not just SSI, benefits, on how to maintain SSA benefit eligibility beyond their 18^th birthday.
• Add requirements for counties related to when a county becomes a representative payee for benefits administered by the federal SSA on the child’s behalf, including ensuring that the child’s SSA benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care.

Related Legislation:

SB 1300 (Durazo, 2022) would have expanded requirements for counties to assist foster youth in applying for SSI benefits. The bill was held on the suspense file in the Assembly Appropriations Committee.

-- END --

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1512 (Bryan) - Foster care payments

Bill Summary:

AB 1512 would revise and expand the existing requirements for counties to screen foster youth for eligibility for federal Supplemental Security Income (SSI) benefits, as specified.

Fiscal Impact:

• The California Department of Social Services estimates the following:
• One-time General Fund costs of $750,000 for automation system changes to the Child Welfare Services California Automated Response and Engagement System (CARES).
• Unknown ongoing costs, likely in the millions to tens of millions, to counties (General Fund and federal funds).
• To the extent the bill increases county costs already borne by a local agency for programs or levels of service mandated by the 2011 Realignment, the bill would apply to local agencies only to the extent that the state provides annual funding for the cost increases.

Background:

Foster youth can be eligible for different types of federal benefits under the Social Security Administration (SSA), such as survivor benefits and SSI benefits. The SSI program provides income support to eligible individuals who are aged 65 or older, blind or disabled. SSI benefits are available to qualified blind or disabled children. Under current law, counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. If a foster youth is already receiving SSI benefits and approaching their 18^th birthday, counties must provide information on how, and assist the foster youth with, establishing continuing disability as an adult for purposes of maintaining SSI eligibility beyond their 18^th birthday.

Current law requires the county to apply to be the appointed representative payee for SSI benefits on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Counties serving as representative payees for a foster child’s SSI benefits must follow certain practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized income and expenditures from the account, creation of procedures for disbursing money from the account, and limitations on the purposes for which deductions may be made from the accounts.

Proposed Law:

Specific provisions of the bill would:

• Require every foster youth, not just youth over 16 year of age, to be screened by the county for potential eligibility for all federal Social Security Administration (SSA), not just SSI, benefits.
• Require counties to assist foster youth approaching 18 years of age who are receiving any SSA, not just SSI, benefits, on how to maintain SSA benefit eligibility beyond their 18^th birthday.
• Add requirements for counties related to when a county becomes a representative payee for benefits administered by the federal SSA on the child’s behalf, including ensuring that the child’s SSA benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care.

Related Legislation:

SB 1300 (Durazo, 2022) would have expanded requirements for counties to assist foster youth in applying for SSI benefits. The bill was held on the suspense file in the Assembly Appropriations Committee.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Alvarado-Gil, Chair

2023 - 2024 Regular

Subject: Foster care payments

SUMMARY

This bill revises requirements for counties to screen foster youth eligibility for benefits to include all federal Social Security Administration (SSA) benefits, including Supplemental Security Income (SSI) benefits, regardless of age, and requires counties to ensure the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care. This bill also requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf.

ABSTRACT

Existing Law:

1. Establishes in federal law the “SSI for the Aged, Blind, and Disabled Program” to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 USC 1381-1383(f))
2. Provides that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 CFR 416.645)
3. Establishes the “State Supplementary Payment” (SSP) for people who are aged, blind or disabled, which is intended to supplement federal SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (WIC 12000 et seq.)
4. Provides that a child who has suffered, or is at substantial risk of suffering, abuse or neglect, as defined, by the child’s parent or guardian is within the jurisdiction of the juvenile court, which may adjudge the child a dependent child. (WIC 300)
5. States that the purpose of foster care law is to provide maximum safety and protection for children who are currently being physically, sexually, emotionally abused, neglected, or exploited, and to ensure the safety, protection, and physical and emotional well-being of children who are at risk of harm. (WIC 300.2)
6. Defines “nonminor dependent” (NMD) as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a TILP, as specified. (WIC 11400(v))
7. Further provides that an NMD shall retain all of their legal decision-making authority as an adult, as provided. (WIC 303(a)(d))
8. States legislative intent that NMDs access the same benefits, services, and supports, and exercise the same choices available to all dependents, and states further intent that NMDs who receive SSI benefits can serve as their own payee, as provided, and be assisted in receiving that direct payment by the county child welfare department. (WIC 13754(a))
9. Defines AFDC-FC to mean the aid provided on behalf of needy children in foster care and defines eligibility for minors and nonminor dependents (WIC 11400 et seq).
10. States legislative intent that NMDs who have had their eligibility for SSI established be able to maintain that eligibility even when they remain in the state’s care as a NMD, and to facilitate this, states further legislative intent that the county child welfare agency ensure that the youth receives an SSI payment during at least one month of each 12-month period while the youth is an NMD and that the county child welfare agency supplement that SSI payment that a youth receives during this one-month period with nonfederal AFDC-FC benefits. (WIC 13754(a))
11. Requires counties to provide information on how, and assist the youth with, establishing continuing disability as an adult and how to become their own payee or designate an appropriate representative payee to all foster youth who are receiving SSI payments and approaching their 18th birthday, as provided. (WIC 13753)
12. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs, and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC 13754(b)(1)-(2))
13. Requires a county at the time of determining eligibility for AFDC-FC payments, also to determine whether the child is currently in receipt of benefits pursuant to Title II or Title XVI of the Social Security Act. If so, the county shall apply to become the child’s representative payee, as appropriate, during the time the child is placed in foster care. (WIC 11401.6)
14. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC 13754(c))
15. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC 13757(a)(1))
16. Requires the county SSI screening only to occur when the foster youth is 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC 13757(a)(2))
17. Requires, in the case of a youth receiving federally funded AFDC-FC benefits, the county to forego federally funded AFDC-FC and instead use nonfederal AFDC-FC resources to fund the placement in the month of the SSI application or in the month after making an application, and to subsequently reclaim federally funded AFDC-FC in order to ensure the youth meets all of the SSI eligibility requirements in a single month while the application is pending, as provided by federal law and regulation. Further requires the county child welfare agency to forego the federally funded AFDC-FC benefit and instead use nonfederal AFDC-FC resources to supplement the SSI benefit that the youth receives during at least one month of every 12-month period, in instances where an NMD has been approved for SSI benefits. (WIC 13757(b)-(c))

This Bill:

1. Broadens existing statutory requirements that a county provide information and assist a youth or nonminor dependent in establishing SSI benefits, including appealing denials, to apply to all benefits administered by the Social Security Administration (SSA).

1. Adds to the required list of supports a county must provide to a youth the requirement to provide “applicable financial literacy training and support,” and to document that assistance in the youth’s transitional independent living plan.
2. Requires a county that is applying to be the representative payee on behalf of a child in its custody to send a written notice of the intent to be appointed representative payee to the child’s counsel and the child’s parents or legal guardians.
3. Requires a county to help a nonminor dependent who has chosen a representative payee that is not the county to understand any restrictions on the use of federal Social Security Administration funds and assist in communicating any changes to the SSA if those changes would affect the nonminor dependents eligibility for benefits from the SSA.
4. If a county is the representative payee, adds to other mandates the requirement to ensure the child or nonminor dependent’s benefits are used for the child or nonminor dependent, as specified.
5. Declares Legislative findings that the State of California has utilized federal benefits administered by the federal Social Security Administration to offset the cost of foster care placement and that the utilization of these funds to support youth and young adults with their transition to adulthood would meet an urgent need for a population that is at high risk of homelessness. Further states Legislative findings that it is in a child’s best interests to ensure that federal benefits for which they are eligible are available for their current and future use.
6. Expresses Legislative intent that no federal SSA benefit received by a child or youth in foster care be utilized by the county placing agency to offset the cost of the child or youth’s care, and that placing agencies shall instead conserve those funds for the future use of the beneficiary.
7. Requires that a county that is serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, must act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and shall do all of the following:
   1. Ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and are conserved for the child, as specified.
      
   2. Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interest is served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal limits, including establishing and maintaining a dedicated account, as specified, a Plan Achieve Self-Support (“PASS”) account, a 529A plan, including a CalABLE account, an individual development account, an individual or pooled special needs trust on behalf of the child, or other viable account type, and preserves eligibility for other benefits to which the child may be entitled.
      
   3. Provide, at least once every 6 months, an accounting to the child if the child is 12 years of age or older, and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal Social Security Administration, have been conserved.
      
   4. Document in specified regular court reports how the county is complying with this subdivision, including the amounts spent or designated and for what purpose, as specified, and the county’s consideration of the child’s best interests, consistent with federal guidance.
8. Requires the county placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, and to document those notifications in the child’s court reports, if any of the following occurs:
   1. Any application for benefits administered by the federal Social Security Administration made by the agency on the child’s behalf, as defined.
      
   2. Any application by the placing agency to become a representative payee for benefits administered by the SSA on the child’s behalf.
      
   3. Any decisions or communications from the SSA regarding an application for benefits, as specified.
      
   4. Any action taken by the agency regarding an application for benefits, as specified.
9. Requires the county placing agency within 30 days of the child’s exit from foster care, to collaborate with the child, the child’s attorney, and the child’s parents or guardians if the child is exiting to reunification or the child’s guardian or adoptive parent if the child is exiting to guardianship or adoption, to develop a written plan in the best interests of the child for the future use and control of any funds conserved, as specified.
10. Expands requirements for a county to screen foster youth older than 16 for eligibility for SSI disability benefits to apply to children of all ages in foster care within 60 days of entry into foster care and annually thereafter. Expands the screening to apply to all benefits administered by the federal Social Security Administration.

FISCAL IMPACT

An analysis by the Assembly Committee on Appropriations identified estimated ongoing General Fund (GF) costs of approximately $50 million annually to offset the loss of SSA/SSI benefit reimbursement to counties. In addition, the committee estimated ongoing GF costs of approximately $6 million annually for county social workers to screen all youth for SSA benefits, submit applications as necessary and perform associated duties. Although these county costs are mandated by the state, they are not reimbursable, but instead must be paid by the state pursuant to Proposition 30 of 2012.

BACKGROUND AND DISCUSSION

Purpose of the Bill:

According to the author, this bill will enable California to “join a national movement of states ending the archaic practice of recouping the costs of a child’s time in foster care through collecting their survivor’s and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child’s care—despite federal law explicitly placing the financial responsibility of care on foster care agencies.”

The author cites a CalMatters article^[1] that reported the Department of Child and Family Services in Los Angeles County collected about $5.4 million in revenue for about 600 children in its care through this practice in 2021. “AB 1512 will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system.”

Child Welfare Services

More than 50,000 children are under the jurisdiction of California’s child welfare system due to allegations of abuse, neglect or exploitation, according to data produced by UC Berkeley’s Child Welfare Indicators website. The child welfare system is designed to protect children by providing intensive services to families in order to keep them together under the supervision of a juvenile dependency judge. However, if maintaining the family is determined not to be in the best interest of the child, the county’s child welfare agency arranges for and monitors temporary or permanent placement of the child in the safest and least-restrictive environment possible. Often children are placed with relatives, non-related extended family members (NREFM), or foster parents.

It is the state’s goal to reunify a foster child or youth with their biological family whenever possible. In instances where reunification is not possible, it is the state’s goal to provide a permanent placement alternative, such as adoption or guardianship. In that circumstance, the state’s priority is to place children with other relatives or nonrelative extended family members. In 2022, county child welfare agencies received 440,212 reports of abuse or neglect. Of these, 51,806 reports contained allegations that were substantiated and 19,953 children were removed from their homes and placed into foster care.

Disability Benefits for Foster Youth

Under current law, California’s counties are required to screen foster youth over the age of 16 for potential eligibility for SSI benefits. This may include children in foster care with disabilities who are from low-income families, qualifying them for a Social Security program called Supplemental Security Income, or SSI. Others may be eligible for survivor benefits because one or both of their parents died.

Advocates report that counties often fail to notify the youth or their attorneys that they are applying for benefits, or whether they have been approved. It is common practice, advocates say, for a county to automatically apply to serve as representative payees for the youth and use the youth’s funds to reimburse themselves for the costs of the child’s care. While this practice is legal, there have been various articles and research studies questioning the practice.

Federal law permits a representative payee be appointed for a minor or other individual who is deemed unable to serve as their own payee.^[2] For a foster youth, federal regulations establish a priority list for designating representative payees, with child welfare agencies ranked last:

1) A natural or adoptive parent who has custody of the beneficiary, or a guardian;

2) A natural or adoptive parent who does not have custody of the beneficiary, but is contributing toward their support and is demonstrating strong concern for their well-being;

3) A natural or adoptive parent who does not have custody of the beneficiary and is not contributing toward their support but is demonstrating strong concern for their well-being;

4) A relative or stepparent who has custody of the beneficiary;

5) A relative who does not have custody, but is contributing toward the beneficiary's support and is demonstrating concern for their well-being;

6) A relative or close friend who does not have custody of the beneficiary but is demonstrating concern for the beneficiary's well-being; and

7) An authorized social agency or custodial institution.

Federal regulations dictate that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, the funds shall be conserved or invested on behalf of the beneficiary. Any investment must show clearly that the payee holds the property in trust for the beneficiary.^[3]

Other States

The practice of using children’s disability or death benefits to pay for their care is relatively common. According to a November 2021 report by the Congressional Research Service,^[4] about 27,000 children in foster care per year receive disability benefits from the SSI program or other benefits from the Social Security Administration based on the retirement, disability, or death of a parent. The report noted that in more than 80 percent of these cases, the SSA appoints the state child welfare agency as the child’s representative payee to receive and manage the SSI/Social Security benefits on the child’s behalf. “Data reported for state FY 2018 indicate that 38 states and the District of Columbia were able to use about $179 million in SSI/Social Security benefits received on behalf of children in foster care to offset the child welfare agency’s cost of providing care for those children,” according to the report, which noted that various stakeholders have argued in support of, or against, using the benefits for children in care to cover the cost of foster care.

A June 2021 report by the U.S. General Accounting Office^[5] found that 42 states reported using SSI and/or Social Security funds in lieu of state funds to cover foster care costs, including for items such as housing and food. Twenty-nine states reported using SSI/Social Security funds to cover other expenses that the state would not have covered through a foster care maintenance payment, such as educational technology or personal items, with an example being a high school class ring. Of the 42 states that applied for children’s SSI benefits, 37 reported that they also conserved SSI/Social Security funds for children in care.

Related/Prior Legislation:

SB 187 (Committee on Budget and Fiscal Review, Chapter 50, Statutes of 2022) required youth under the supervision of a county welfare agency, probation department or tribal organization to be screened once they are 16 years or older and to screen nonminor dependents in specified circumstances. Required the county to submit an application of behalf of any nonminor dependent whose screening indicates they are likely to be eligible for SSI or SSA benefits, among other changes.

SB 1300 (Durazo of 2022), would have revised the requirements that counties must complete before, and upon, a foster youth who is receiving federal SSI payments reaches their 18th birthday. It was held on the Assembly Appropriations Committee suspense file.

AB 1331 (Evans, Chapter 465, Statues 2007), required counties to screen emancipating foster youth to determine their potential eligibility for SSI and to make applications for those youth who may be eligible.

AB 212 (Beall, Chapter 459, Statutes of 2011), made various clarifying and substantive changes to the California Fostering Connections to Success Act in order to ensure proper implementation on January 1, 2012, and other changes to existing state law in order to comply with various provisions of federal law.

AB 1110 (Lara of 2011), would have required additional reporting and court oversight concerning the receipt of SSI income for foster youth. AB 1110 was held on the Appropriations Committee suspense file.

AB 1633 (Evans, Chapter 641, Statutes of 2005), developed best practices to improve access to federal disability benefits for foster youth, among other things.

COMMENTS

Children in foster care notoriously have poor outcomes once they emancipate, including heightened rates of homelessness, struggles to stay in college and other financial challenges. Advocates argue that funds from SSI should be set aside to help disabled foster youth when they exit care rather than used to defray county costs for the child’s care.

PRIOR VOTES

POSITIONS

Support:

Alliance for Children's Rights (Co-Sponsor)

Children's Law Center of California (Co-Sponsor)

County of Los Angeles Board of Supervisors (Co-Sponsor)

Youth Law Center (Co-Sponsor)

Aspiranet
Bay Area Legal Aid
California Alliance of Caregivers
California Catholic Conference
California Youth Connection
Children Now
Grace Institute - End Child Poverty in Ca
John Burton Advocates for Youth
Justice in Aging
Legal Aid Foundation of Los Angeles
National Association of Social Workers, California Chapter
Public Counsel
San Diego; County of
William E. Morris Institute for Justice

Oppose:

None received

-- END --

1. https://calmatters.org/california-divide/2022/07/foster-care-youth-california/ ↑

2. 20 CFR § 416.621 ↑

3. 20 CFR § 416.645 ↑

4. “Children in Foster Care and Social Security Administration Benefits: Frequently Asked

   Questions” https://crsreports.congress.gov/product/pdf/R/R46975 ↑

5. GAO, Social Security Administration: New Data Exchanges for Some States Provide Limited Information on Foster Care Beneficiaries ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 1512

Author:(Bryan and Bauer-Kahan)

As Amended Ver:April 6, 2023

Majority vote

SUMMARY

Revises requirements for counties to screen foster youth eligibility for benefits to now include all the federal Social Security Administration (SSA) benefits including Social Security Income (SSI) benefits, regardless of age, and requires counties to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care. Requires the placing agency to promptly notify the child, the child's attorney, and the child's parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child's behalf.

Major Provisions

1. Requires the placing agency, when serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, to:
2. Act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and to ensure that the child's benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child's care and are conserved in accordance with specified requirements;
3. Monitor any applicable federal asset, resource, or income limits for the child's benefits and ensure that the child's best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits,
4. Provide, at least once every six months, an accounting to the child if the child is 12 years of age or older and the child's attorney of how, and in what amount, the child's resources, including any benefits administered by the federal SSA, have been conserved; and,
5. Document in specified court reports how the county is complying with these provisions, including the amounts spent or designated and for what purpose, consistent with specified accounting reports, and the county's consideration of the child's best interests, consistent with federal guidance.
6. Requires the placing agency to promptly notify the child, the child's attorney, and the child's parents or guardians, of all of the following:
7. Any application for benefits administered by the federal SSA made by the agency on the child's behalf;
8. Any application by the placing agency to become a representative payee for benefits administered by the federal SSA on the child's behalf;
9. Any decisions or communications from the federal SSA regarding an application for benefits, as described; and,
10. Any action taken by the agency regarding an application for benefits, as described.
11. Requires the county placing agency to summarize in specified court reports how the county is complying with 2) above.
12. Requires, within 30 days of the child's exit from foster care, the placing agency to collaborate with the child, the child's attorney, and the child's parents or guardians if the child is exiting to reunification or the child's guardian or adoptive parent if the child is exiting to guardianship or adoption, to develop a written plan in the best interests of the child for the future use and control of any funds conserved under these provisions.
13. Requires every youth, regardless of age, who is in foster care under the supervision of the county child welfare department, juvenile probation department, or tribal organization, if the tribal organization requests the screening from the county, to be screened by the county for potential eligibility for federal SSA benefits.
14. Revises the screening to occur within 60 days of the child's entry into foster care, and annually thereafter and requires, to the extent possible, for a foster youth approaching 18 years of age, the application be timed to allow for a determination of eligibility by the federal SSA before the youth's 18th birthday.
15. Strikes references to "SSI payments" when enumerating the requirements counties must complete at least six months before a foster youth's 18th birthday, to instead include "payments from the federal SSA" and requires counties to assist the youth with any applicable financial literacy training and support, and to document that assistance in the youth's transitional independent living plan.
16. Requires the county, prior to applying to be appointed representative payee, to send a written notice of the intent to be appointed to the child's counsel and parents or legal guardians.
17. Strikes references to "federal Supplemental Security Income payments" and "SSI benefits" and instead includes "federal SSA benefits" when enumerating the requirements for counties when identifying an appropriate representative payee for a nonminor dependent (NMD) who is receiving federal SSA benefits, and adds the following requirements for the county:
18. Assist the NMD or their representative payee in understanding any restrictions on the use of federal SSA funds and communicating any changes in the NMD's foster care case to the federal SSA if those changes would affect the NMD's eligibility for, or the amount of, benefits from the federal SSA;
19. Provide the NMD with any information maintained in their case file that may assist them in establishing and maintaining federal SSA benefits upon request of the NMD, and, if the NMD requests, to obtain a federal SSA benefits advocate to assist in communicating and coordinating with that federal SSA benefits advocate; and,
20. Ensure the child or NMD's benefits are used for the child or NMD, consistent with the intent of these provisions to ensure that the youth's benefits are not used to pay for any costs of the child's care.

COMMENTS

Federal Social Security Administration benefits and foster youth. Foster youth can be eligible for different types of federal benefits under the SSA, such as survivor benefits, SSI benefits, and disability benefits. This bill strikes references to SSI benefits and broadens the references to include the various forms of federal benefits that foster youth can be eligible for, and that counties are required to screen for eligibility, regardless of age.

Many children who come into child welfare services custody suffer not only from abuse or neglect, but also have serious physical or mental disabilities. These children with disabilities may qualify for additional assistance through federal social security benefits and/or the federal Supplemental Security Income program and the State Supplemental Payment (SSI/SSP). Following the legislative efforts to ensure best practices for youth maintaining SSI eligibility on foster care, in 2008, the SSA granted the state approval to allow California's disabled foster youth to apply for SSI/SSP benefits prior to age 18; in early 2010, the SSA issued a nationwide directive allowing other states to follow suit.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee" - which can be a relative, adult friend, or the county - receives the check. Existing law suggests that the county should be the payee of last resort - applying only when no other appropriate party is available to serve. As the representative payee, the county may use the child's SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child's SSI eligibility.

The payee must use that money to pay for things like medical care, housing, clothing, food and personal comfort items. When there is money left over from SSA payments that are not needed to pay for such items, the payee deposits the money into a bank account called a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Maintenance accounts cannot exceed $2,000 (due to federal SSI rules). If assets exceed $2,000, the youth can lose SSI eligibility. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth's basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements. If the county has been serving as a foster youth's representative payee, when they reach 18 years of age, the county is required to assist these youth in receiving their own SSA checks or to find a responsible adult to be appointed as the representative payee. County social workers are required to help with transition planning which may include keeping SSA benefits after exiting foster care. If a youth is already receiving SSI when they reach 18 years of age, the SSA will ask for information related to the disability around the time the youth turns 18 to make a determination whether they will qualify for SSI under the adult rules, a practice called an "Age 18 Redetermination." For SSA to find that a youth is eligible for SSI as an adult, they must have a medical condition that keeps them from working.

California led the way in the nation for establishing laws that work to ensure youth are appropriately screened for SSI eligibility while in care. AB 1633 established a workgroup whereby counties and child welfare stakeholders developed best practice guidelines for establishing and maintaining social security eligibility for youth in foster care. Recommendations issued by the workgroup were included in a subsequent bill, AB 1331 (Evans), Chapter 465, Statutes of 2007, which required all counties to screen foster youth and submit applications on their behalf between the ages of 16 years and six months and 17 years and six months as a means of ensuring SSI benefits are in place when the youth turns 18. This bill would require counties to screen every youth, regardless of age, who are in foster care for potential eligibility for SSA benefits.

This bill would update the current practices to require counties to notify the youth and attorneys about the status of their application and benefits, and work to identify other adults to serve as the representative payee, rather than the county, and ensure the youth's SSA benefits are not used to pay for, or to reimburse the placing agency for any costs of the child's care, and can instead be used for unmet current needs or conserve remaining funds in appropriate accounts for the child's future use.

Equity Implications: Foster youth are among our state's most vulnerable populations. Close to 31% of transition-age foster youth experience homelessness, another 25% come into contact with the justice system within two years of aging out of foster care and about 20% report having a health condition or disability that limits their daily activities. Only 50% complete their high school education, and less than 10% attain a college degree. California's foster youth population is disproportionately Black and Latino when compared to their non-foster youth peers. Foster youth face significant barriers while in the system and have even more challenges as they transition out of the child welfare system and into adulthood and self-sufficiency. AB 1512 would ensure that eligible foster youth have increased resources for a stable and independent life while in care and after they exit care into adulthood.

According to the Author

"With [this bill], California will join a national movement of states ending the archaic practice of recouping the costs of a child's time in foster care through collecting their survivor's and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child's care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. In 2021 the Department of Child and Family Services in Los Angeles County (DCFS) collected about $5.4 million in revenue through this practice. While this $5.4 million accounts for only 0.18% of DCFS's budget, for youth with disabilities or youth who have lost a parent, this money could be the difference between going to college or going to prison. [This bill] will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system."

Arguments in Support

According to Children's Legal Services of San Diego, a co-sponsor of this bill, "Although California has made significant efforts to link transition aged youth in foster care to SSA benefits, there is no requirement in state law for counties to regularly update the court, the youth themselves, or court-appointed counsel about the status of an SSA benefits application or how SSA benefits are used. In practice, youth may never learn that they were eligible for SSA benefits during or after their time in foster care, nor that the county was actually receiving benefits on their behalf, or know anything about how they were spent. Although there are several different types of savings accounts and trusts that could be established to put SSA benefits toward a youth's current unmet needs or future needs, youth in foster care typically are not informed about these options. As a result of that lack of knowledge and information sharing, this critical avenue of long-term support may be cut short."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee on May 17, 2023:

1. Estimated ongoing General Fund (GF) costs of approximately $50 million annually to offset the loss of SSA/SSI benefit reimbursement to counties.
2. Estimated ongoing GF costs of approximately $6 million annually for county social workers to screen all youth for SSA benefits, submit applications as necessary and perform associated duties. Although these county costs are mandated by the state, they are not reimbursable, but instead must be paid by the state pursuant to Proposition 30 of 2012. Proposition 30 requires legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) applies to local agencies only to the extent the state provides annual funding for the cost increase.

The author is requesting $46 million in the budget for this proposal.

VOTES

ASM HUMAN SERVICES: 7-0-1

YES: Jackson, Sanchez, Alanis, Arambula, Bonta, Bryan, Calderon

ABS, ABST OR NV: Garcia

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: April 6, 2023

CONSULTANT: Jessica Langtry / HUM. S. / (916) 319-2089 FN: 0000646

Date of Hearing: May 17, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1512

Author:(Bryan) – As Amended Ver:April 6, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill revises requirements for counties to screen foster youth eligibility for benefits to include all federal Social Security Administration (SSA) benefits, including Supplemental Security Income (SSI) benefits, regardless of age, and requires counties to ensure the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care. This bill also requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf.

Among its provisions, this bill:

1. States legislative intent that no federal SSA benefit received by a child or youth in foster care can be utilized by the county placing agency to offset the cost of the child or youth’s care, and that placing agencies must instead conserve those funds for the future use of the beneficiary.
2. Requires the county placing agency, when serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, to act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and to do all of the following:
3. Ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and are conserved in accordance with (b) below.
4. Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, as specified, and preserves eligibility for other benefits to which the child may be entitled.
5. Provide, at least once every six months, an accounting to the child if the child is 12 years of age or older and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal SSA, have been conserved.
6. Document in specified court reports how the county is complying with these provisions, including the amounts spent or designated and for what purpose, consistent with specified accounting reports, and the county’s consideration of the child’s best interests, consistent with federal guidance.
7. Requires the county placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf, any application by the placing agency to become a representative payee for benefits administered by the federal SSA on the child’s behalf, any decisions or communications from the federal SSA regarding an application for benefits, and any action taken by the agency regarding an application for benefits, as described.
8. Requires, within 30 days of the child’s exit from foster care, the placing agency to collaborate with the child, the child’s attorney, and the child’s parents or guardians or the child’s guardian or adoptive parent as applicable, to develop a written plan in the best interests of the child for the future use and control of funds conserved under these provisions.
9. Requires every youth, regardless of age, who is in foster care to be screened by the county for potential eligibility for federal SSA benefits.
10. Revises the county screen each child for eligibility within 60 days of the child’s entry into foster care, and annually thereafter and requires, to the extent possible, for a foster youth approaching 18 years of age, the application be timed to allow for a determination of eligibility by the federal SSA before the youth’s 18th birthday.

FISCAL EFFECT:

1. Estimated ongoing General Fund (GF) costs of approximately $50 million annually to offset the loss of SSA/SSI benefit reimbursement to counties.
2. Estimated ongoing GF costs of approximately $6 million annually for county social workers to screen all youth for SSA benefits, submit applications as necessary and perform associated duties. Although these county costs are mandated by the state, they are not reimbursable, but instead must be paid by the state pursuant to Proposition 30 of 2012. Proposition 30 requires legislation enacted after September 30, 2012, that has an overall effect of increasing the costs already borne by a local agency for programs or levels of service mandated by realignment (including child welfare services and foster care) applies to local agencies only to the extent the state provides annual funding for the cost increase.

The author is requesting $46 million in the budget for this proposal.

COMMENTS:

1. Purpose. According to the author:

With [this bill], California will join a national movement of states ending the archaic practice of recouping the costs of a child’s time in foster care through collecting their survivor’s and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child’s care—despite federal law explicitly placing the financial responsibility of care on foster care agencies.

1. Background. Under existing federal and state laws, foster youth may be eligible for federal benefits under the Social Security Administration, including SSI benefits, survivor benefits, and disability benefits. County placing agencies in California are required to screen and apply for SSI benefits on behalf of eligible youth in their care who are over the age of 16.

This bill broadens the reference to federal benefits that counties must screen for to include any form of federal benefits under the SSA that foster youth may be eligible for, and requires counties to screen all foster youth within 60 days of the child’s entry into foster care for eligibility, regardless of age.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a "representative payee," a relative, adult friend, or the county, receives the check. Existing law suggests the county should be the payee of last resort - applying only when no other appropriate party is available to serve.

The representative payee must use the benefit money to pay for basic needs, such as medical care, housing, clothing, food and personal comfort items, for the youth. If SSA payments are not needed for such items, the payee must deposit the money into a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Per federal rules, a maintenance account cannot exceed $2,000. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth’s basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements. As the representative payee, a county may use the child’s SSA benefit to offset the cost of foster care the county provides to the child.

Advocates report that county placing agencies often fail to notify the youth and their attorneys they are applying for benefits, and report that after the youth has been approved for benefits, county placing agencies automatically apply to serve as representative payees for the youth and use the youth’s funds to reimburse themselves for the costs of the child’s care. While this practice is legal, it is increasingly being called into question by youth advocates and others.

This bill changes the current county practice of offsetting its costs with federal SSA benefits from the foster youth they serve, and instead allows these youth to keep the funds.

Additionally, this bill updates current practices to require counties to notify youth and attorneys about the status of their application and benefits, and work to identify other adults to serve as the representative payee, rather than the county.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 25, 2023

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Corey A. Jackson, Chair

ABPCA Bill Id:AB 1512 (

Author:Bryan) – As Amended Ver:April 6, 2023

SUBJECT: Foster care payments

SUMMARY: Revises requirements for counties to screen foster youth eligibility for benefits to now include all the federal Social Security Administration (SSA) benefits including Social Security Income (SSI) benefits, regardless of age, and requires counties to ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care. Requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of any application for benefits administered by the federal SSA made by the agency on the child’s behalf. Specifically, this bill:

1. States legislative intent that no federal SSA benefit received by a child or youth in foster care can be utilized by the county placing agency to offset the cost of the child or youth’s care, and that placing agencies must instead conserve those funds for the future use of the beneficiary.
2. Makes findings and declarations that the State of California has utilized federal benefits administered by the federal SSA to offset the cost of foster care placement, and that the utilization of these funds to support youth and young adults with their transition to adulthood would meet an urgent need for a population that is at high-risk of homelessness.
3. Requires the placing agency, when serving as the representative payee or in any other fiduciary capacity for a child or youth receiving federal SSA benefits, to act in accordance with the Guide for Organizational Representative Payees, as published by the federal SSA, and to do all of the following:
4. Ensure that the child’s benefits are not used to pay for, or to reimburse the placing agency for, any costs of the child’s care and are conserved in accordance with (b) below;
5. Monitor any applicable federal asset, resource, or income limits for the child’s benefits and ensure that the child’s best interests are served by conserving the benefits in a way that avoids termination of those benefits as a result of exceeding the federal asset, resource, or income limits, including establishing and maintaining a dedicated account, a Plan Achieve Self-Support (“PASS”) account, a 529A plan, including a CalABLE account, an individual development account, an individual or pooled special needs trust on behalf of the child, or other viable account type, and preserves eligibility for other benefits to which the child may be entitled;
6. Provide, at least once every six months, an accounting to the child if the child is 12 years of age or older and the child’s attorney of how, and in what amount, the child’s resources, including any benefits administered by the federal SSA, have been conserved; and,
7. Document in specified court reports how the county is complying with these provisions, including the amounts spent or designated and for what purpose, consistent with specified accounting reports, and the county’s consideration of the child’s best interests, consistent with federal guidance.
8. Requires the placing agency to promptly notify the child, the child’s attorney, and the child’s parents or guardians, of all of the following:
9. Any application for benefits administered by the federal SSA made by the agency on the child’s behalf;
10. Any application by the placing agency to become a representative payee for benefits administered by the federal SSA on the child’s behalf;
11. Any decisions or communications from the federal SSA regarding an application for benefits, as described; and,
12. Any action taken by the agency regarding an application for benefits, as described.
13. Requires the county placing agency to summarize in specified court reports how the county is complying with 3) above.
14. Requires, within 30 days of the child’s exit from foster care, the placing agency to collaborate with the child, the child’s attorney, and the child’s parents or guardians if the child is exiting to reunification or the child’s guardian or adoptive parent if the child is exiting to guardianship or adoption, to develop a written plan in the best interests of the child for the future use and control of any funds conserved under these provisions.
15. Requires every youth, regardless of age, who is in foster care under the supervision of the county child welfare department, juvenile probation department, or tribal organization, if the tribal organization requests the screening from the county, to be screened by the county for potential eligibility for federal SSA benefits.
16. Revises the screening to occur within 60 days of the child’s entry into foster care, and annually thereafter and requires, to the extent possible, for a foster youth approaching 18 years of age, the application be timed to allow for a determination of eligibility by the federal SSA before the youth’s 18th birthday.
17. Strikes references to “SSI payments” when enumerating the requirements counties must complete at least six months before a foster youth’s 18th birthday, to instead include “payments from the federal SSA” and requires counties to assist the youth with any applicable financial literacy training and support, and to document that assistance in the youth’s transitional independent living plan (TILP).
18. Requires the county, prior to applying to be appointed representative payee, to send a written notice of the intent to be appointed to the child’s counsel and parents or legal guardians.
19. Strikes references to “federal Supplemental Security Income payments” and “SSI benefits” and instead includes “federal SSA benefits” when enumerating the requirements for counties when identifying an appropriate representative payee for an nonminor dependent (NMD) who is receiving federal SSA benefits, and adds the following requirements for the county:
20. Assist the NMD or their representative payee in understanding any restrictions on the use of federal SSA funds and communicating any changes in the NMD’s foster care case to the federal SSA if those changes would affect the NMD’s eligibility for, or the amount of, benefits from the federal SSA;
21. Provide the NMD with any information maintained in their case file that may assist them in establishing and maintaining federal SSA benefits upon request of the NMD, and, if the NMD requests, to obtain a federal SSA benefits advocate to assist in communicating and coordinating with that federal SSA benefits advocate; and,
22. Ensure the child or NMD’s benefits are used for the child or NMD, consistent with the intent of these provisions to ensure that the youth’s benefits are not used to pay for any costs of the child’s care.
23. Strikes obsolete language and makes conforming changes.

EXISTING LAW:

1. Establishes in federal law the “SSI for the Aged, Blind, and Disabled Program” to provide cash assistance to meet the basic needs of aged and blind individuals and individuals with disabilities. (42 United States Code 1381-1383(f))
2. Provides that if payments are not needed for the beneficiary's current maintenance or reasonably foreseeable needs, they shall be conserved or invested on behalf of the beneficiary. (20 Code of Federal Regulations 416.645)
3. Establishes the “State Supplementary Payment” (SSP) for people who are aged, blind or disabled, which is intended to supplement federal SSI and provide persons whose need results from age, blindness or disability with assistance and services that help them meet basic needs and maintain or increase independence. Further provides that eligibility requirements for SSP match federal SSI criteria, and requires a minimum level of SSP benefits to be provided in order to maintain federal Medicaid funding, as specified. (Welfare and Institutions Code Section (WIC) 12000 et seq.)
4. Provides that a child who has suffered, or is at substantial risk of suffering, abuse or neglect, as provided, by the child’s parent or guardian is within the jurisdiction of the juvenile court, which may adjudge the child a dependent child. (WIC 300)
5. States that the purpose of foster care law is to provide maximum safety and protection for children who are currently being physically, sexually, emotionally abused, neglected, or exploited, and to ensure the safety, protection, and physical and emotional well-being of children who are at risk of harm. (WIC 300.2)
6. Defines “nonminor dependent” as a current or former foster youth who is a current dependent child or ward of the juvenile court, or who is a nonminor under transition jurisdiction of the juvenile court, who is between 18 and 21 years of age, in foster care under the responsibility of the county welfare department, county probation department, or Indian tribe, and participating in a TILP, as specified. (WIC 11400(v))
7. Provides that the court may have within its jurisdiction any NMD, between the age of majority and 21 years of age, as defined. Further provides that an NMD shall retain all of their legal decision-making authority as an adult, as provided. (WIC 303(a)(d))
8. Defines “eligible for financial participation” to mean that the payment is consistent with a federally approved state plan authorizing federal financial participation an Federal Aid to Families with Dependent Children-Foster Care (AFDC-FC) payment. Further, prohibits, until and unless federal financial participation is obtained, no payment of AFDC-FC to be made from either state or county funds on behalf of a child determined to be eligible for AFDC-FC solely as a result of certain litigation, as specified. (WIC 11402.1)
9. States legislative intent that NMDs access the same benefits, services, and supports, and exercise the same choices available to all dependents, and states further intent that NMDs who receive SSI benefits can serve as their own payee, as provided, and be assisted in receiving that direct payment by the county child welfare department. (WIC 13754(a))
10. States legislative intent that NMDs who have had their eligibility for SSI established, as provided, be able to maintain that eligibility even when they remain in the state’s care as a NMD, and to facilitate this, states further legislative intent that the county child welfare agency ensure that the youth receives an SSI payment during at least one month of each 12-month period while the youth is an NMD and that the county child welfare agency supplement that SSI payment that a youth receives during this one-month period with nonfederal AFDC-FC benefits. (WIC 13754(a))
11. Requires counties to provide information on how, and assist the youth with, establishing continuing disability as an adult and how to become their own payee or designate an appropriate representative payee to all foster youth who are receiving SSI payments and approaching their 18th birthday, as provided. (WIC 13753)
12. Requires the county to apply to be the appointed representative payee on behalf of a child beneficiary in its custody when no other appropriate party is available to serve. Further requires the county to provide information to NMDs, and assist NMDs with becoming their own payee or finding and designating an appropriate representative. (WIC 13754(b)(1)-(2))
13. Requires counties serving as representative payees for a foster child or youth’s SSI benefits to follow certain best practices, including the creation of no-cost, interest bearing maintenance accounts for each child the county serves as representative payee for, itemized expenditures from the account, creation of procedures for disbursing money from the account, limitations on the purposes for which deductions may be made from the accounts, as provided. (WIC 13754(c))
14. Requires the county to screen every youth in foster care who is nearing emancipation for potential eligibility for the federal SSI program, utilizing best practice guidelines, as provided. (WIC 13757(a)(1))
15. Requires the county SSI screening only to occur when the foster youth is at 16 to 17 years of age and requires an application be submitted to the SSA on behalf of a youth who is screened as being likely to be eligible for SSI. Further requires, to the extent possible, the application be timed to allow for a determination of eligibility by the SSA prior to the youth’s emancipation from care including, if appropriate, the suspension of SSI benefits for no more than 12 months. (WIC 13757(a)(2))
16. Requires, in the case of a youth receiving federally funded AFDC-FC benefits, the county to forego federally funded AFDC-FC and instead use nonfederal AFDC-FC resources to fund the placement in the month of the SSI application or in the month after making an application, and to subsequently reclaim federally funded AFDC-FC in order to ensure the youth meets all of the SSI eligibility requirements in a single month while the application is pending, as provided by federal law and regulation. Further requires the county child welfare agency to forego the federally funded AFDC-FC benefit and instead use nonfederal AFDC-FC resources to supplement the SSI benefit that the youth receives during at least one month of every 12-month period, in instances where an NMD has been approved for SSI benefits. (WIC 13757(b)-(c))

FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.

COMMENTS:

Background: Child Welfare Services (CWS). California’s CWS system exists to protect children from abuse and neglect, and in doing so, provides for their health, safety, and overall well-being. When suspicions of abuse or neglect arise, often as a result of a report by a mandated reporter like a doctor or teacher, Child Protective Services is tasked with investigating the report. If the allegation of abuse or neglect is substantiated, it is then determined whether it is in the best interest of the child to remain in their parent’s custody or be placed within the CWS system. If a child is suspected to be at risk of neglect, abuse, or abandonment, the juvenile court holds legal jurisdiction, and the CWS system appoints a social worker to ensure that the needs of a youth are met.

The California Department of Social Services secures federal funding to support child welfare services programs, provides statewide best practices training for social workers, and conducts program regulatory oversight and administration, and is responsible for the development of policy while also providing direct services such as adoption placements. Foster parents receive a monthly payment to meet the needs of the youth placed in their care and is intended to cover food, clothing, transportation, and vary based on the child, their age and any special needs they may have.

As of January 1, 2023, there are 52,265 youth between birth and up to 21 years old in foster care.

Federal Social Security Administration benefits and foster youth. Foster youth can be eligible for different types of federal benefits under the SSA such as survivor benefits, SSI benefits, and disability benefits. This bill strikes references to SSI benefits and broadens the references to include the various forms of federal benefits that foster youth can be eligible for, and that counties are required to screen for eligibility regardless of age.

If the child in foster care has a biological parent who has died, then they may be eligible to receive survivors’ benefits, which are based on the work history of their deceased parent. Eligibility and benefit amounts are determined by the worker's contributions to Social Security through either payroll taxes or self-employment taxes.

Some youth with disabilities nearing their transition out of foster care are eligible for SSI, which is a needs-based program administered by the SSA. SSI provides payments to people with low-income who are aged, blind, or disabled and who meet strict eligibility rules. SSA determines low-income status based on current income and resources. SSA defines adult disability as the inability to engage in substantial gainful activity because of any medically determinable physical or mental impairment which has lasted for a continuous period of not less than 12 months, or be expected to result in death. SSA defines disability differently for children. Most children in foster care are not eligible for SSI payments, even if they meet the childhood disability definition, because their federal foster care payments exceed the income limit for SSI eligibility. An individual must meet both income and need standards to qualify and provides monthly benefits to qualified retired and disabled workers and their dependents, and to survivors of insured workers.

Typically, foster youth under 18 years of age who receive federal SSA benefits do not receive their benefits check directly. Instead, a person called a "representative payee", - which can be a relative, adult friend, or the county - receives the check. Existing law suggests that the county should be the payee of last resort - applying only when no other appropriate party is available to serve.

As the representative payee, the county may use the child’s SSA benefit to offset the cost of the care it provides to the child in foster care. In fact, in 2003 the Supreme Court unanimously upheld the right of the states to offset the costs of foster care with its ruling in Washington State Department of Social and Health Services v. Guardianship Estate of Danny Keffeler, 537 U.S. 371. The Court noted in its ruling that prohibiting a state from doing so could disadvantage children in foster care because the state would not maintain the child’s SSI eligibility.

The payee must use that money to pay for things like medical care, housing, clothing, food and personal comfort items. When there is money left over from SSA payments that are not needed to pay for such items, the payee deposits the money into a bank account called a "maintenance account" which can be accessed by the youth when they reach 18 years of age. Maintenance accounts cannot exceed $2,000 (due to federal SSI rules). If assets exceed $2,000, the child/youth can lose SSI eligibility. Counties work with the youth and caregiver to spend down the funds in the maintenance account to meet youth’s basic needs, pursuant to AB 1633 (Evans), Chapter 641, Statutes of 2005, and federal requirements.

If the county has been serving as a foster youth’s representative payee, when they reach 18 years of age, the county is required to assist these youth in receiving their own SSA checks or to find a responsible adult to be appointed as the representative payee. County social workers are required to help with transition planning which may include keeping SSA benefits after exiting foster care. If a youth is already receiving SSI when they reach 18 years of age, the SSA will ask for information related to the disability around the time the youth turns 18 to make a determination whether they will qualify for SSI under the adult rules, a practice called an "Age 18 Redetermination." For SSA to find that a youth is eligible for SSI as an adult, they must have a medical condition that keeps them from working.

California led the way in the nation for establishing laws that work to ensure youth are appropriately screened for SSI eligibility while in care. AB 1633 established a workgroup whereby counties and child welfare stakeholders developed best practice guidelines for establishing and maintaining social security eligibility for youth in foster care. Recommendations issued by the workgroup were included in a subsequent bill, AB 1331 (Evans), Chapter 465, Statutes of 2007, which required all counties to screen foster youth and submit applications on their behalf between the ages of 16 years and six months and 17 years and six months as a means of ensuring SSI benefits are in place when the youth turns 18. This bill would require counties to screen every youth, regardless of age, who are in foster care for potential eligibility for SSA benefits.

Many children who come into CWS custody suffer not only from abuse or neglect, but also have serious physical or mental disabilities. These children with disabilities may qualify for additional assistance through federal social security benefits and/or the federal Supplemental Security Income program and the State Supplemental Payment (SSI/SSP).

Following the legislative efforts to ensure best practices for youth maintaining SSI eligibility on foster care, in 2008, the SSA granted the state approval to allow California's disabled foster youth to apply for SSI/SSP benefits prior to age 18; in early 2010, the SSA issued a nationwide directive allowing other states to follow suit.

This bill would update the current practices to require counties to notify the youth and attorneys about the status of their application and benefits, and work to identify other adults to serve as the representative payee, rather than the county, and ensure the youth’s SSA benefits are not used to pay for, or to reimburse the placing agency for any costs of the child’s care, and can instead be used for unmet current needs or conserve remaining funds in appropriate accounts for the child’s future use.

Author’s Statement: According to the Author, “With [this bill], California will join a national movement of states ending the archaic practice of recouping the costs of a child’s time in foster care through collecting their survivor’s and/or disability benefits. However, these agencies fail to notify the youth, their loved ones, and their attorneys that they are doing so. Instead, they apply to be representative payees for the youth and use the funds to reimburse themselves for the costs of the child’s care—despite federal law explicitly placing the financial responsibility of care on foster care agencies. In 2021 the Department of Child and Family Services in Los Angeles County (DCFS) collected about $5.4 million in revenue through this practice. While this $5.4 million accounts for only 0.18% of DCFS’s budget, for youth with disabilities or youth who have lost a parent, this money could be the difference between going to college or going to prison. [This bill] will require counties to instead use this money for the best interest of the youth and/or conserve the funds for the youth to access when they have aged out of the system.”

Need for this bill: Currently, county placing agencies in California are required to screen and apply for disability and survivor benefits on behalf of eligible youth in their care who are over the age of 16. Advocates report that these agencies often fail to notify the youth and their attorneys that they are applying for benefits, and report that after the youth has been approved for benefits, county placing agencies automatically apply to serve as representative payees for the youth and use the youth’s funds to reimburse themselves for the costs of the child’s care. While this practice is legal, there have been numerous articles questioning this practice. A CalMatters article from July of 2022 entitled, “California counties siphon Social Security benefits from some foster kids”, stated, “When she was 15 and had been a ward of the courts for half her life, Kristina [last name omitted] learned the cost of her stays in group homes and with foster families was coming out of her own pocket. She had qualified for monthly survivor benefits checks, a Social Security program for children whose parents had died. Instead of the hundreds of dollars a month going to her or toward savings, it went to Butte County, she said, to cover checks issued to her foster care providers.”

The author states that DCFS has estimated that in any given month, it receives the benefits of about 600 children in its custody, equating to about $5.4 million in revenue in 2021, which is less than 0.18% of the FY23 DCFS budget. This bill would change the current county practice of offsetting its costs with federal SSA benefits from the foster youth they serve, and instead allow these vulnerable youth to keep the funds for which they were determined to be eligible.

Equity Implications: Foster youth are among our state’s most vulnerable populations. Close to 31% of transition-age foster youth experience homelessness, another 25% come into contact with the justice system within two years of aging out of foster care and about 20% report having a health condition or disability that limits their daily activities. Only 50% complete their high school education, and less than 10% attain a college degree. California’s foster youth population is disproportionately Black and Latino when compared to their non-foster youth peers. Foster youth face significant barriers while in the system and have even more challenges as they transition out of the child welfare system and into adulthood and self-sufficiency. AB 1512 would ensure that eligible foster youth have increased resources for a stable and independent life while in care and after they exit care into adulthood.

RELATED AND PRIOR LEGISLATION:

SB 1300 (Durazo) of 2022, would have revised the requirements that counties must complete before, and upon, a foster youth who is receiving federal SSI payments reaches their 18th birthday. SB 1300 was held on the Assembly Appropriations Committee suspense file.

AB 1331 (Evans), Chapter 465, Statues 2007, required counties to screen emancipating foster youth to determine their potential eligibility for SSI and to make applications for those youth who may be eligible.

AB 212 (Beall), Chapter 459, Statutes of 2011, made various clarifying and substantive changes to the California Fostering Connections to Success Act in order to ensure proper implementation on January 1, 2012, and other changes to existing state law in order to comply with various provisions of federal law.

AB 12 (Beall), Chapter 559, Statutes of 2010, the “California Fostering Connections to Success Act”, provided an option for continued jurisdiction of federally eligible NMDs or former dependents of the juvenile court who are between the ages of 18 and 21.

AB 1633 (Evans), Chapter 641, Statutes of 2005, developed best practices to improve access to federal disability benefits for foster youth, among other things.

AB 1110 (Lara) of 2011, would have required additional reporting and court oversight concerning the receipt of SSI income for foster youth. AB 1110 was held on the Appropriations Committee suspense file.

REGISTERED SUPPORT / OPPOSITION:

Support

Alliance for Boys and Men of Color (Co-Sponsor)

Alliance for Children's Rights (Co-Sponsor)

Children's Legal Services of San Diego (Co-Sponsor)

Childrens Advocacy Institute (Co-Sponsor)

County of Los Angeles (Co-Sponsor)

Youth Law Center (Co-Sponsor)

Advokids

California Alliance of Caregivers

California Youth Connection (CYC)

Children Now

Coalition of California Welfare Rights Organizations

Dependency Advocacy Center

Dependency Legal Services

John Burton Advocates for Youth

Law Foundation of Silicon Valley

Public Counsel

Youth Will

Opposition

None on file

Analysis Prepared by: Jessica Langtry / HUM. S. / (916) 319-2089