2009 California Welfare and Institutions Code - Section 11450-11469.1 :: Article 6. Computation And Payment Of Aid Grants

11450.  (a) (1) Aid shall be paid for each needy family, which shall
include all eligible brothers and sisters of each eligible applicant
or recipient child and the parents of the children, but shall not
include unborn children, or recipients of aid under Chapter 3
(commencing with Section 12000), qualified for aid under this
chapter. In determining the amount of aid paid, and notwithstanding
the minimum basic standards of adequate care specified in Section
11452, the family's income, exclusive of any amounts considered
exempt as income or paid pursuant to subdivision (e) or Section
11453.1, averaged for the prospective quarter pursuant to Sections
11265.2 and 11265.3, and then calculated pursuant to Section 11451.5,
shall be deducted from the sum specified in the following table, as
adjusted for cost-of-living increases pursuant to Section 11453 and
paragraph (2). In no case shall the amount of aid paid for each month
exceed the sum specified in the following table, as adjusted for
cost-of-living increases pursuant to Section 11453 and paragraph (2),
plus any special needs, as specified in subdivisions (c), (e), and
(f):

  Number
  of
  eligible
  needy
  persons
  in                                     Maximum
  the same home                            aid
  1.................................      $ 326
  2.................................       535
  3.................................       663
  4.................................       788
  5.................................       899
  6.................................      1,010
  7.................................      1,109
  8.................................      1,209
  9.................................      1,306
  10 or more........................      1,403

   If, when, and during those times that the United States government
increases or decreases its contributions in assistance of needy
children in this state above or below the amount paid on July 1,
1972, the amounts specified in the above table shall be increased or
decreased by an amount equal to that increase or decrease by the
United States government, provided that no increase or decrease shall
be subject to subsequent adjustment pursuant to Section 11453.
   (2) The sums specified in paragraph (1) shall not be adjusted for
cost of living for the 1990-91, 1991-92, 1992-93, 1993-94, 1994-95,
1995-96, 1996-97, and 1997-98 fiscal years, and through October 31,
1998, nor shall that amount be included in the base for calculating
any cost-of-living increases for any fiscal year thereafter.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of Section 11453.05, and no
further reduction shall be made pursuant to that section.
   (b) When the family does not include a needy child qualified for
aid under this chapter, aid shall be paid to a pregnant mother for
the month in which the birth is anticipated and for the three-month
period immediately prior to the month in which the birth is
anticipated in the amount that would otherwise be paid to one person,
as specified in subdivision (a), if the mother, and child, if born,
would have qualified for aid under this chapter. Verification of
pregnancy shall be required as a condition of eligibility for aid
under this subdivision. Aid shall also be paid to a pregnant woman
with no other children in the amount which would otherwise be paid to
one person under subdivision (a) at any time after verification of
pregnancy if the pregnant woman is also eligible for the Cal-Learn
Program described in Article 3.5 (commencing with Section 11331) and
if the mother, and child, if born, would have qualified for aid under
this chapter.
   (c) The amount of forty-seven dollars ($47) per month shall be
paid to pregnant mothers qualified for aid under subdivision (a) or
(b) to meet special needs resulting from pregnancy if the mother, and
child, if born, would have qualified for aid under this chapter.
County welfare departments shall refer all recipients of aid under
this subdivision to a local provider of the Women, Infants and
Children program. If that payment to pregnant mothers qualified for
aid under subdivision (a) is considered income under federal law in
the first five months of pregnancy, payments under this subdivision
shall not apply to persons eligible under subdivision (a), except for
the month in which birth is anticipated and for the three-month
period immediately prior to the month in which delivery is
anticipated, if the mother, and the child, if born, would have
qualified for aid under this chapter.
   (d) For children receiving AFDC-FC under this chapter, there shall
be paid, exclusive of any amount considered exempt as income, an
amount of aid each month which, when added to the child's income, is
equal to the rate specified in Section 11460, 11461, 11462, 11462.1,
or 11463. In addition, the child shall be eligible for special needs,
as specified in departmental regulations.
   (e) In addition to the amounts payable under subdivision (a) and
Section 11453.1, a family shall be entitled to receive an allowance
for recurring special needs not common to a majority of recipients.
These recurring special needs shall include, but not be limited to,
special diets upon the recommendation of a physician for
circumstances other than pregnancy, and unusual costs of
transportation, laundry, housekeeping services, telephone, and
utilities. The recurring special needs allowance for each family per
month shall not exceed that amount resulting from multiplying the sum
of ten dollars ($10) by the number of recipients in the family who
are eligible for assistance.
   (f) After a family has used all available liquid resources, both
exempt and nonexempt, in excess of one hundred dollars ($100), with
the exception of funds deposited in a restricted account described in
subdivision (a) of Section 11155.2, the family shall also be
entitled to receive an allowance for nonrecurring special needs.
   (1) An allowance for nonrecurring special needs shall be granted
for replacement of clothing and household equipment and for emergency
housing needs other than those needs addressed by paragraph (2).
These needs shall be caused by sudden and unusual circumstances
beyond the control of the needy family. The department shall
establish the allowance for each of the nonrecurring special need
items. The sum of all nonrecurring special needs provided by this
subdivision shall not exceed six hundred dollars ($600) per event.
   (2) Homeless assistance is available to a homeless family seeking
shelter when the family is eligible for aid under this chapter.
Homeless assistance for temporary shelter is also available to
homeless families which are apparently eligible for aid under this
chapter. Apparent eligibility exists when evidence presented by the
applicant, or which is otherwise available to the county welfare
department, and the information provided on the application documents
indicate that there would be eligibility for aid under this chapter
if the evidence and information were verified. However, an alien
applicant who does not provide verification of his or her eligible
alien status, or a woman with no eligible children who does not
provide medical verification of pregnancy, is not apparently eligible
for purposes of this section.
   A family is considered homeless, for the purpose of this section,
when the family lacks a fixed and regular nighttime residence; or the
family has a primary nighttime residence that is a supervised
publicly or privately operated shelter designed to provide temporary
living accommodations; or the family is residing in a public or
private place not designed for, or ordinarily used as, a regular
sleeping accommodation for human beings. A family is also considered
homeless for the purpose of this section if the family has received a
notice to pay rent or quit. The family shall demonstrate that the
eviction is the result of a verified financial hardship as a result
of extraordinary circumstances beyond their control, and not other
lease or rental violations, and that the family is experiencing a
financial crisis that could result in homelessness if preventative
assistance is not provided.
   (A) (i) A nonrecurring special need of sixty-five dollars ($65) a
day shall be available to families of up to four members for the
costs of temporary shelter, subject to the requirements of this
paragraph. The fifth and additional members of the family shall each
receive fifteen dollars ($15) per day, up to a daily maximum of one
hundred twenty-five dollars ($125). County welfare departments may
increase the daily amount available for temporary shelter as
necessary to secure the additional bedspace needed by the family.
   (ii) This special need shall be granted or denied immediately upon
the family's application for homeless assistance, and benefits shall
be available for up to three working days. The county welfare
department shall verify the family's homelessness within the first
three working days and if the family meets the criteria of
questionable homelessness established by the department, the county
welfare department shall refer the family to its early fraud
prevention and detection unit, if the county has such a unit, for
assistance in the verification of homelessness within this period.
   (iii) After homelessness has been verified, the three-day limit
shall be extended for a period of time which, when added to the
initial benefits provided, does not exceed a total of 16 calendar
days. This extension of benefits shall be done in increments of one
week and shall be based upon searching for permanent housing which
shall be documented on a housing search form; good cause; or other
circumstances defined by the department. Documentation of a housing
search shall be required for the initial extension of benefits beyond
the three-day limit and on a weekly basis thereafter as long as the
family is receiving temporary shelter benefits. Good cause shall
include, but is not limited to, situations in which the county
welfare department has determined that the family, to the extent it
is capable, has made a good faith but unsuccessful effort to secure
permanent housing while receiving temporary shelter benefits.
   (B) A nonrecurring special need for permanent housing assistance
is available to pay for last month's rent and security deposits when
these payments are reasonable conditions of securing a residence, or
to pay for up to two months of rent arrearages, when these payments
are a reasonable condition of preventing eviction.
   The last month's rent or monthly arrearage portion of the payment
(i) shall not exceed 80 percent of the family's total monthly
household income without the value of food stamps or special needs
for a family of that size and (ii) shall only be made to families
that have found permanent housing costing no more than 80 percent of
the family's total monthly household income without the value of food
stamps or special needs for a family of that size.
   However, if the county welfare department determines that a family
intends to reside with individuals who will be sharing housing
costs, the county welfare department shall, in appropriate
circumstances, set aside the condition specified in clause (ii) of
the preceding paragraph.
   (C) The nonrecurring special need for permanent housing assistance
is also available to cover the standard costs of deposits for
utilities which are necessary for the health and safety of the
family.
   (D) A payment for or denial of permanent housing assistance shall
be issued no later than one working day from the time that a family
presents evidence of the availability of permanent housing. If an
applicant family provides evidence of the availability of permanent
housing before the county welfare department has established
eligibility for aid under this chapter, the county welfare department
shall complete the eligibility determination so that the denial of
or payment for permanent housing assistance is issued within one
working day from the submission of evidence of the availability of
permanent housing, unless the family has failed to provide all of the
verification necessary to establish eligibility for aid under this
chapter.
   (E) (i) Except as provided in clauses (ii) and (iii), eligibility
for the temporary shelter assistance and the permanent housing
assistance pursuant to this paragraph shall be limited to one period
of up to 16 consecutive calendar days of temporary assistance and one
payment of permanent assistance. Any family that includes a parent
or nonparent caretaker relative living in the home who has previously
received temporary or permanent homeless assistance at any time on
behalf of an eligible child shall not be eligible for further
homeless assistance. Any person who applies for homeless assistance
benefits shall be informed that the temporary shelter benefit of up
to 16 consecutive days is available only once in a lifetime, with
certain exceptions, and that a break in the consecutive use of the
benefit constitutes permanent exhaustion of the temporary benefit.
   (ii) A family that becomes homeless as a direct and primary result
of a state or federally declared natural disaster shall be eligible
for temporary and permanent homeless assistance.
   (iii) A family shall be eligible for temporary and permanent
homeless assistance when homelessness is a direct result of domestic
violence by a spouse, partner, or roommate; physical or mental
illness that is medically verified that shall not include a diagnosis
of alcoholism, drug addiction, or psychological stress; or, the
uninhabitability of the former residence caused by sudden and unusual
circumstances beyond the control of the family including natural
catastrophe, fire, or condemnation. These circumstances shall be
verified by a third-party governmental or private health and human
services agency, except that domestic violence may also be verified
by a sworn statement by the victim, as provided under Section
11495.25. Homeless assistance payments based on these specific
circumstances may not be received more often than once in any
12-month period. In addition, if the domestic violence is verified by
a sworn statement by the victim, the homeless assistance payments
shall be limited to two periods of not more than 16 consecutive
calendar days of temporary assistance and two payments of permanent
assistance. A county may require that a recipient of homeless
assistance benefits who qualifies under this paragraph for a second
time in a 24-month period participate in a homelessness avoidance
case plan as a condition of eligibility for homeless assistance
benefits. The county welfare department shall immediately inform
recipients who verify domestic violence by a sworn statement pursuant
to clause (iii) of the availability of domestic violence counseling
and services, and refer those recipients to services upon request.
   (iv) If a county requires a recipient who verifies domestic
violence by a sworn statement to participate in a homelessness
avoidance case plan pursuant to clause (iii), the plan shall include
the provision of domestic violence services, if appropriate.
   (v) If a recipient seeking homeless assistance based on domestic
violence pursuant to clause (iii) has previously received homeless
avoidance services based on domestic violence, the county shall
review whether services were offered to the recipient and consider
what additional services would assist the recipient in leaving the
domestic violence situation.
   (vi) The county welfare department shall report to the department
through a statewide homeless assistance payment indicator system,
necessary data, as requested by the department, regarding all
recipients of aid under this paragraph.
   (F) The county welfare departments, and all other entities
participating in the costs of the AFDC program, have the right in
their share to any refunds resulting from payment of the permanent
housing. However, if an emergency requires the family to move within
the 12-month period specified in subparagraph (E), the family shall
be allowed to use any refunds received from its deposits to meet the
costs of moving to another residence.
   (G) Payments to providers for temporary shelter and permanent
housing and utilities shall be made on behalf of families requesting
these payments.
   (H) The daily amount for the temporary shelter special need for
homeless assistance may be increased if authorized by the current
year's Budget Act by specifying a different daily allowance and
appropriating the funds therefor.
   (I) No payment shall be made pursuant to this paragraph unless the
provider of housing is a commercial establishment, shelter, or
person in the business of renting properties who has a history of
renting properties.
   (g) The department shall establish rules and regulations ensuring
the uniform application statewide of this subdivision.
   (h) The department shall notify all applicants and recipients of
aid through the standardized application form that these benefits are
available and shall provide an opportunity for recipients to apply
for the funds quickly and efficiently.
   (i) Except for the purposes of Section 15200, the amounts payable
to recipients pursuant to Section 11453.1 shall not constitute part
of the payment schedule set forth in subdivision (a).
   The amounts payable to recipients pursuant to Section 11453.1
shall not constitute income to recipients of aid under this section.
   (j) For children receiving Kin-GAP pursuant to Article 4.5
(commencing with Section 11360) of Chapter 2, there shall be paid,
exclusive of any amount considered exempt as income, an amount of aid
each month, which, when added to the child's income, is equal to the
rate specified in Section 11364.

11450.01.  (a) Notwithstanding any other provision of law,
commencing October 1, 1992, the maximum aid payments specified in
paragraph (1) of subdivision (a) of Section 11450 in effect on July
1, 1992, shall be reduced by 4.5 percent.
   (b) (1) The department shall seek the approval from the United
States Department of Health and Human Services that is necessary to
reduce the maximum aid payments specified in subdivision (a) by an
additional amount equal to 1.3 percent of the maximum aid payments
specified in paragraph (1) of subdivision (a) of Section 11450 in
effect on July 1, 1992.
   (2) The reduction provided by this subdivision shall be made on
the first day of the month following 30 days after the date of
approval by the United States Department of Health and Human
Services.

11450.015.  Notwithstanding any other provision of law, the maximum
aid payments in effect on June 30, 1993, in accordance with paragraph
(1) of subdivision (a) of Section 11450 as reduced by subdivisions
(a) and (b) of Section 11450.01, shall be reduced by 2.7 percent
beginning the first of the month following 60 days after the
enactment of this section.

11450.017.  Notwithstanding any other provision of law, the maximum
aid payment in effect on June 30, 1994, in accordance with paragraph
(1) of subdivision (a) of Section 11450 as reduced by subdivisions
(a) and (b) of Section 11450.01 and Section 11450.015, shall be
reduced by 2.3 percent beginning the first of the month following 50
days after the effective date of this section.

11450.018.  (a) Notwithstanding any other provision of law, the
maximum aid payment in accordance with paragraph (1) of subdivision
(a) of Section 11450 as reduced by subdivisions (a) and (b) of
Section 11450.01, Section 11450.015, and Section 11450.017, shall be
reduced by 4.9 percent for counties in Region 2, as specified in
Section 11452.018.
   (b) Notwithstanding any other provision of law, through October
31, 1998, the maximum aid payment in accordance with paragraph (1) of
subdivision (a) of Section 11450, as reduced by subdivision (a) and
(b) of Section 11450.01, Section 11450.015, Section 11450.017, and
subdivision (a) shall be reduced by 4.9 percent.
   (c) Prior to implementing the reductions specified in subdivisions
(a) and (b), the director shall apply for and obtain a waiver from
the United States Department of Health and Human Services of Section
1396a(c)(1) of Title 42 of the United States Code. The reduction
shall be implemented to the extent the waiver is granted and only so
long as the waiver is effective. This subdivision shall not apply if
either the federal waiver process set forth at Section 1315 of Title
42 of the United States Code or Section 1396a(c) is repealed or
modified such that a waiver is not necessary to implement subdivision
(a) or (b).
   (d) This section shall become operative and the reductions
specified in subdivisions (a) and (b) shall commence on the first day
of the month following 30 days after the receipt of federal approval
or on the first day of the month following 30 days after a change in
federal law that allows states to reduce aid payments without any
risk to federal funding under Title XIX of the Social Security Act,
whichever is earlier, but no earlier than October 1, 1995.

11450.019.  Effective the first day of the month following 90 days
after a change in federal law that allows states to reduce aid
payments without any risk to federal funding under Title XIX of the
Social Security Act contained in Subchapter XIX (commencing with
Section 1396) of Chapter 7 of Title 42 of the United States Code, the
reductions in maximum aid payments specified in Sections 11450.01,
11450.015, and 11450.017 shall not be applied when all of the parents
or caretaker relatives of the aided child living in the home of the
aided child meet one of the following conditions:
   (a) The individual is disabled and receiving benefits under
Section 12200 or 12300.
   (b) The individual is a nonparent caretaker who is not included in
the assistance unit with the child.
   (c) The individual is disabled and is receiving State Disability
Insurance benefits or Worker's Compensation Temporary Disability
benefits.

11450.02.  Notwithstanding any other provision of law, commencing
July 1, 2009, the maximum aid payments in effect September 1, 2007,
as specified in paragraph (1) of subdivision (a) of Section 11450,
shall be reduced by 4 percent.

11450.03.  (a) Notwithstanding the maximum aid payments specified in
paragraph (1) of subdivision (a) of Section 11450, families that
have resided in this state for less than 12 months shall be paid an
amount calculated in accordance with paragraph (1) of subdivision (a)
of Section 11450, not to exceed the maximum aid payment that would
have been received by that family from the state of prior residence.
   (b) This section shall not become operative until the date of
approval by the United States Secretary of Health and Human Services
necessary to implement the provisions of this section so as to ensure
the continued compliance of the state plan for the following:
   (1) Title IV of the federal Social Security Act (Subchapter 4
(commencing with Section 601) of Chapter 7 of Title 42 of the United
States Code).
   (2) Title IX of the federal Social Security Act (Subchapter 19
(commencing with Section 1396) of Chapter 7 of Title 42 of the United
States Code).

11450.04.  (a) For purposes of determining the maximum aid payment
specified in subdivision (a) of Section 11450 and for no other
purpose, the number of needy persons in the same family shall not be
increased for any child born into a family that has received aid
under this chapter continuously for the 10 months prior to the birth
of the child. For purposes of this section, aid shall be considered
continuous unless the family does not receive aid during two
consecutive months. This subdivision shall not apply to applicants
for, or recipients of, aid unless notification is provided pursuant
to this section.
   (b) This section shall not apply with respect to any of the
following children:
   (1) Any child who was conceived as a result of an act of rape, as
defined in Sections 261 and 262 of the Penal Code, if the rape was
reported to a law enforcement agency, medical or mental health
professional or social services agency prior to, or within three
months after, the birth of the child.
   (2) Any child who was conceived as a result of an incestuous
relationship if the relationship was reported to a medical or mental
health professional or a law enforcement agency or social services
agency prior to, or within three months after, the birth of the
child, or if paternity has been established.
   (3) Any child who was conceived as a result of contraceptive
failure if the parent was using an intrauterine device, a Norplant,
or the sterilization of either parent.
   (c) This section shall not apply to any child born on or before
November 1, 1995.
   (d) (1) This section shall not apply to any child to whom it would
otherwise apply if the family has not received aid for 24
consecutive months while the child was living with the family.
   (2) This section shall not apply to any child conceived when
either parent was a nonneedy caretaker relative.
   (3) This section shall not apply to any child who is no longer
living in the same home with either parent.
   (e) One hundred percent of any child support payment received for
a child born into the family, but for whom the maximum aid payment is
not increased pursuant to this section, shall be paid to the
assistance unit. Any such child support payment shall not be
considered as income to the family for the purpose of calculating the
amount of aid for which the family is eligible under this article.
   (f) Commencing January 1, 1995, each county welfare department
shall notify applicants for assistance under this chapter, in
writing, of the provisions of this section. The notification shall
also be provided to recipients of aid under this chapter, in writing,
at the time of recertification, or sooner. The notification required
by this section shall set forth the provisions of this section and
shall state explicitly the impact these provisions would have on the
future aid to the assistance unit. This section shall not apply to
any recipient's child earlier than 12 months after the mailing of an
informational notice as required by this subdivision.
   (g) (1) The department shall seek all appropriate federal waivers
for the implementation of this section.
   (2) The department shall implement this section commencing on the
date the Director of Social Services executes a declaration, that
shall be retained by the director, stating that the administrative
actions required by paragraph (1) as a condition of implementation of
this section have been taken by the United States Secretary of
Health and Human Services.
   (h) Subdivisions (a) to (g), inclusive, shall become operative on
January 1, 1995.

11450.2.  (a) The department shall implement a system to provide for
supplemental payments to needy families qualified for aid under this
chapter, when, because of a change in reported financial
circumstances occurring between the "budget month" and the "payment
month," a family's net available income for the payment month is less
than 80 percent of the amount set forth in subdivisions (a) and (b)
of Section 11450, as adjusted for cost-of-living increases pursuant
to Section 11453, except as provided in subdivision (c) of Section
11453. The system shall provide all of the following:
   (1) Families shall be informed of the availability of supplemental
payments and of the necessity that a family request the payments in
order for them to be provided. This information shall be provided in
writing at the time of application in the written statements of
recipients' rights, and shall also be provided orally by the
eligibility worker at the time of the initial interview and at each
annual redetermination. A request form shall be sent monthly to all
families which have reported income.
   (2) That supplemental payments shall be paid in an amount
necessary to raise the family's net available income in the payment
month to 80 percent of the amount set forth in subdivision (a) of
Section 11450, as adjusted for cost-of-living increases pursuant to
Section 11453, except as provided in subdivision (c) of Section
11453.
   (3) That supplemental payments shall not be considered income when
calculating the amount of the grant to be paid in future months.
   (4) That supplemental payments or written notice of action shall
be issued within seven working days of a request. Payments shall only
be issued for those months in which a request has been made and a
family is eligible for the supplement. A request shall be made in the
month for which the supplemental payment is requested.
   (5) That no supplemental payment shall be made to any family if,
under the federal Aid to Families with Dependent Children program,
the payments would be counted as income, regardless of the source of
the funding for the aid payment of the family.
   (6) That no overpayment or underpayment shall be determined for a
supplemental payment which was correctly computed based on the family'
s reasonable estimate of the income and other circumstances for the
payment month. A family shall not be eligible for more than one
supplemental payment per month.
   (b) For purposes of this section:
   (1) "Budget month" and "payment month" shall be consistent with
the use of these terms in Section 11450.5.
   (2) "Net available income" means the sum of the following:
   (A) Total net nonexempt income in the payment month without
deduction of either the thirty dollars ($30) plus one-third of earned
income or the thirty dollars ($30) disregard deductions.
   (B) Any child or spousal support received by the family pursuant
to Section 602(a)(8)(A)(vi) of Title 42 of the United States Code and
as that statute may hereafter be amended.
   (C) The grant for the payment month before overpayment
adjustments.
   (3) "Needy family" means a family aided pursuant to this chapter.
This includes a family that is in a single month of suspension
resulting from the receipt of income.
   (4) "Grant" means the amount of aid paid to the needy family
pursuant to subdivision (a) of Section 11450, but does not include
any amounts paid pursuant to subdivision (e) of Section 11450 or
Section 11453.1.

11450.3.  (a) The director may establish, within the department, the
Emergency Housing Apartment Program Demonstration Project.
   (b) The director may, by formal order, waive the operation of
specific provisions in paragraph (2) of subdivision (f) of Section
11450, as required for participation in the Emergency Housing
Apartment Program Demonstration Project. The order establishing the
waiver shall limit the operation of the demonstration project to San
Francisco or Contra Costa County, or both, for no more than five
years of operation, and shall not result in the reduction or
elimination of any family's eligibility for assistance under
paragraph (2) of subdivision (f) of Section 11450. The order
establishing the waiver shall not take effect unless and until the
following conditions have been met:
   (1) The United States Department of Health and Human Services has
approved federal financial participation for the demonstration
project.
   (2) A comprehensive plan, including an analysis of the expected
costs and savings, has been published in a newspaper of general
circulation in the county or counties conducting the demonstration
project and filed with the policy and fiscal committees of each house
of the Legislature.
   (c) The county or counties participating in the demonstration
project authorized by this section shall submit an annual report to
the department on the demonstration project. The county or counties
shall additionally collect and report any data and findings as
required by the department and shall cooperate with the department in
evaluating the demonstration project.
   (d) It is the intent of the Legislature that funding for the
demonstration project authorized by this section be contained in
annual Budget Act appropriations.

11450.4.  (a) It is the intent of the Legislature to establish an
emergency assistance for needy families program to serve the shelter
needs of homeless families apparently eligible for aid pursuant to
subdivision (a) of Section 11450. To this end, the State Department
of Social Services shall conduct negotiations with the United States
Department of Health and Human Services on establishing an emergency
assistance program to address the temporary and permanent shelter
needs of homeless families currently served under paragraph (2) of
subdivision (f) of Section 11450.
   (b) (1) Upon receiving federal approval for an emergency
assistance program and prior to implementation, the department shall
notify the appropriate policy and fiscal committees of the
Legislature of its intent to implement the emergency assistance
program. The notification shall identify those portions of paragraph
(2) of subdivision (f) of Section 11450 which are intended to be
superseded by the emergency assistance program.
   (2) Except as provided in this subdivision, the emergency
assistance program for which notification is submitted to the
Legislature pursuant to paragraph (1) shall become effective the
first day after 120 calendar days of continuous session of the
Legislature after the date on which the notification is transmitted,
or at a later date as may be indicated in the notification, unless,
prior to the end of the 120-calendar-day period, either house of the
Legislature adopts by a majority vote of the duly elected and
qualified members thereof a resolution indicating disapproval of the
proposed emergency assistance program.
   (3) As used in this section, "120 calendar days of continuous
session" shall be deemed broken only by an adjournment sine die, but
in computing the 120 calendar days for the purposes of this section,
days on which either house is not in session because of a recess of
more than 10 days shall not be included.
   (c) Upon implementation of the emergency assistance program, the
department shall cease implementation of those portions of paragraph
(2) of subdivision (f) of Section 11450 which are superseded by the
emergency assistance program.

11450.5.  For purposes of computing and paying aid grants under this
chapter, the director shall adopt regulations establishing a
budgeting system. Nothing in this section, or Sections 11004, 11257
and 11450, or any other provision of this code, shall be interpreted
as prohibiting the establishment of, or otherwise restricting the
operation of, any budgeting system adopted by the director.

11450.5.  For purposes of computing and paying aid grants under this
chapter, the director shall adopt regulations establishing a
budgeting system consistent with Sections 11265.1, 11265.2, and
11265.3. Nothing in this section, or Sections 11004, 11257 and 11450,
or any other provision of this code, shall be interpreted as
prohibiting the establishment of, or otherwise restricting the
operation of, any budgeting system adopted by the director.

11450.8.  No payment of aid pursuant to Section 11450 shall be made
to a family for a month in which the amount the family would receive
is less than ten dollars ($10). The family shall be considered in
receipt of aid for all other purposes.

11450.9.  (a) (1) The department shall designate as energy
assistance payments any increase in the maximum aid payments provided
pursuant to Section 11450 made on or after the first day of the
first session of the Legislature which is convened after the
effective date of this section.
   (2) Increases subject to paragraph (1) shall include any increase
provided pursuant to Sections 11453 and 11453.05.
   (b) The designation required by subdivision (a) shall be made to
the extent allowed by federal law to increase food stamp allotments
to recipients of assistance under this chapter.
   (c) The department shall notify the federal government of the
designation made pursuant to subdivision (a) no later than 60 days
after it has submitted a report on the study required by subdivision
(d).
   (d) It is the intent of the Legislature that the department
designate the maximum amount of aid payments made under this chapter
as energy assistance payments to the extent allowed under federal law
to increase food stamp allotments to recipients of assistance under
this chapter.

11450.10.  Whenever the department is informed pursuant to either
Section 857 or 1764.5 that a minor is being incarcerated for a period
of at least 30 consecutive days, the department shall determine
whether the minor is a part of a family for whom benefits are being
received pursuant to Section 11450. In any case where it is
determined that a child identified pursuant to this section is a part
of a family for whom aid is being received pursuant to Section
11450, the department shall notify the county welfare department in
the county in which the incarcerated youth resides prior to the first
day of the month following the receipt of the notification by the
Department of the Youth Authority or by the county juvenile hall or
other county juvenile facility.

11450.11.  Whenever a county welfare department is informed that a
child who is incarcerated is also a member of a family receiving
benefits pursuant to Section 11450, the county welfare department
shall seek reimbursement of any overpayments pursuant to existing law
and regulation.

11450.12.  (a) An applicant family shall not be eligible for aid
under this chapter unless the family's income, exclusive of the first
ninety dollars ($90) of earned income for each employed person, is
less than the minimum basic standard of adequate care, as specified
in Section 11452.
   (b) A recipient family shall not be eligible for further aid under
this chapter if income, exclusive of amounts exempt under Section
11451.5, equals or exceeds the maximum aid payment specified in
Section 11450.

11450.12.  (a) An applicant family shall not be eligible for aid
under this chapter unless the family's income, exclusive of the first
ninety dollars ($90) of earned income for each employed person, is
less than the minimum basic standard of adequate care, as specified
in Section 11452.
   (b) A recipient family shall not be eligible for further aid under
this chapter if reasonably anticipated income, less exempt income,
averaged over the quarter pursuant to Sections 11265.2 and 11265.3,
and exclusive of amounts exempt under Section 11451.5, equals or
exceeds the maximum aid payment specified in Section 11450.

11450.13.  In calculating the amount of aid to which an assistance
unit is entitled in accordance with Section 11320.15, the maximum aid
payment, adjusted to reflect the removal of the adult or adults from
the assistance unit, shall be reduced by the gross income of the
adult or adults removed from the assistance unit, less any amounts
exempted pursuant to Section 11451.5. Aid may be provided in the form
of cash or vouchers, at the option of the county.

11450.13.  In calculating the amount of aid to which an assistance
unit is entitled in accordance with Section 11320.15, the maximum aid
payment, adjusted to reflect the removal of the adult or adults from
the assistance unit, shall be reduced by the gross income of the
adult or adults removed from the assistance unit, averaged over the
quarter pursuant to Sections 11265.2 and 11265.3, and less any
amounts exempted pursuant to Section 11451.5. Aid may be provided in
the form of cash or vouchers, at the option of the county.

11450.16.  (a) For purposes of determining eligibility under this
chapter, and for computing the amount of aid payment under Section
11450, families shall be grouped into assistance units.
   (b) Every assistance unit shall include at least one of the
following persons:
   (1) One of each of the following:
   (A) An eligible child.
   (B) The caretaker relative of an otherwise eligible child who is
not receiving aid under Section 11250 because that child is receiving
benefits under Title XVI of the Social Security Act (Subchapter 16
(commencing with Section 1381), of Chapter 7 of Title 42 of the
United States Code), or Kin-GAP payments under Section 11364, or
foster care payments under Section 11461.
   (2) A pregnant woman who is eligible for payments under
subdivision (c) of Section 11450.
   (c) Every assistance unit shall, in addition to the requirements
of subdivision (b), include the eligible parents of the eligible
child and the eligible siblings, including half-siblings, of the
eligible child when those persons reside in the same home as the
eligible child. This subdivision shall not apply to any convicted
offender who is permitted to reside at the home of the eligible child
as part of a court-imposed sentence and who is considered an absent
parent under Section 11250.
   (d) An assistance unit may, at the option of the family comprising
the assistance unit, also include the nonparent caretaker relative
of the eligible child, the spouse of the parent of the eligible
child, otherwise eligible nonsibling children in the care of the
caretaker relative of the eligible child, and the alternatively
sentenced offender parent exempted under subdivision (c).
   (e) If two or more assistance units reside in the same home, they
shall be combined into one assistance unit when any of the following
circumstances occur:
   (1) There is a common caretaker relative for the eligible
children.
   (2) One caretaker relative marries another caretaker relative.
   (3) Two caretaker relatives are the parents of an eligible child.
   (f) For purposes of this section, "caretaker relative" means the
parent or other relative, as defined by regulations adopted by the
department, who exercises responsibility and control of a child.

11451.  Any county may, in its discretion, pay from its own funds
additional sums for the care of any needy child, and the state and
county may pay such aid as is needed for the adequate care of the
family from other state or county funds.

11451.5.  (a) Notwithstanding Section 11008 and except as provided
by subdivision (f) of Section 11322.6, the following amounts shall be
exempt from the calculation of the income of the family for purposes
of subdivision (a) of Section 11450:
   (1) If disability-based unearned income does not exceed two
hundred twenty-five dollars ($225), both of the following amounts:
   (A) All disability-based unearned income plus any amount of not
otherwise exempt earned income equal to the amount of the difference
between the amount of disability-based unearned income and two
hundred twenty-five dollars ($225).
   (B) Fifty percent of all not otherwise exempt earned income in
excess of the amount applied to meet the differential applied in
subparagraph (A).
   (2) If disability-based unearned income exceeds two hundred
twenty-five dollars ($225), both of the following amounts:
   (A) All of the first two hundred twenty-five dollars ($225) in
disability-based unearned income.
   (B) Fifty percent of all earned income.
   (b) For purposes of this section:
   (1) Earned income means gross income received as wages, salary,
employer provided sick leave benefits, commissions, or profits from
activities such as a business enterprise or farming in which the
recipient is engaged as a self-employed individual or as an employee.
   (2) Disability-based unearned income means State Disability
Insurance benefits, private disability insurance benefits, Temporary
Workers' Compensation benefits, and social security disability
benefits.
   (3) Unearned income means any income not described in paragraph
(1) or (2).

11451.5.  (a) Except as provided by subdivision (f) of Section
11322.6, the following income, averaged over the quarter pursuant to
Sections 11265.2 and 11265.3, shall be exempt from the calculation of
the income of the family for purposes of subdivision (a) of Section
11450:
   (1) If disability-based unearned income does not exceed two
hundred twenty-five dollars ($225), both of the following amounts:
   (A) All disability-based unearned income plus any amount of not
otherwise exempt earned income equal to the amount of the difference
between the amount of disability-based unearned income and two
hundred twenty-five dollars ($225).
   (B) Fifty percent of all not otherwise exempt earned income in
excess of the amount applied to meet the differential applied in
subparagraph (A).
   (2) If disability-based unearned income exceeds two hundred
twenty-five dollars ($225), both of the following amounts:
   (A) All of the first two hundred twenty-five dollars ($225) in
disability-based unearned income.
   (B) Fifty percent of all earned income.
   (b) For purposes of this section:
   (1) Earned income means gross income received as wages, salary,
employer provided sick leave benefits, commissions, or profits from
activities such as a business enterprise or farming in which the
recipient is engaged as a self-employed individual or as an employee.
   (2) Disability-based unearned income means state disability
insurance benefits, private disability insurance benefits, temporary
workers' compensation benefits, and social security disability
benefits.
   (3) Unearned income means any income not described in paragraph
(1) or (2).

11452.  (a) (1) Minimum basic standards of adequate care shall be
distributed to the counties and shall be binding upon them. The
standards are determined on the basis of the schedule set forth in
this section, as adjusted for cost-of-living increases or decreases
pursuant to Section 11453, which schedule is designed to ensure:
   (A) Safe, healthful housing.
   (B) Minimum clothing for health and decency.
   (C) Low-cost adequate food budget meeting recommended dietary
allowances of the National Research Council.
   (D) Utilities.
   (E) Other items including household operation, education and
incidentals, recreation, personal needs, and insurance.
   (F) Allowance for essential medical, dental, or other remedial
care to the extent not otherwise provided at public expense.
   (2) The schedule of minimum basic standards of adequate care is as
follows:

  Number of eligible                 Minimum basic
  needy persons in                   standards of
  the same family                    adequate care
  1...............................       $ 341
  2...............................        560
  3...............................        694
  4...............................        824
  5...............................        940
  6...............................       1,057
  7...............................       1,160
  8...............................       1,265
  9...............................       1,371
  10..............................       1,489

   plus fourteen dollars ($14) for each additional needy person.

   (3) (A) No adjustment shall be made under this section for the
1990-91 and 1991-92 fiscal years to reflect any change in the cost of
living. Elimination of the cost-of-living adjustment pursuant to
this subparagraph shall satisfy the requirements of Section 11453.05,
and no further reduction shall be made pursuant to that section.
   (B) Any cost-of-living adjustment under this section for the
1991-92 fiscal year and any subsequent fiscal year pursuant to
Section 11453 shall not include any adjustment to reflect increases
for the cost of living for the 1990-91 and 1991-92 fiscal years.
   (C) For the 1992-93, 1993-94, 1994-95, 1995-96 fiscal years, and
through October 31, 1996, a cost-of-living adjustment equivalent to
70 percent of the amount calculated pursuant to subdivision (a) of
Section 11453 shall be made under this section. This adjustment, by
reducing the cost-of-living adjustment that would otherwise have been
made, shall satisfy the requirements of Section 11453.05, and no
further reduction shall be made pursuant to that section.
   (b) The minimum basic standard of adequate care shall also include
the amount or amounts resulting from an allowance for recurring
special needs, as specified in subdivision (e) Section 11450, and the
amount or amounts resulting from the granting of a nonrecurring
special need, equal to the amounts specified in paragraphs (1) and
(2) of subdivision (f) of Section 11450.
   (c) The department shall establish rules and regulations assuring
the uniform application statewide of the provisions of this section.

11452.018.  (a) Notwithstanding any other provision of law, the
minimum basic standards of adequate care, as set forth in Section
11452, and as adjusted pursuant to any other provision of law, shall
be changed for each county to reflect regional variations in housing
cost based on the lowest quartile rent in each county as reported in
the Decennial Census data for 1990.
   (b) Counties are assigned to one of two regions and the minimum
basic standards of adequate care for counties in those regions are
reduced as follows:
   (1) Region 1 shall include all counties with lowest quartile rents
of four hundred dollars ($400) or more. There shall be no reduction
in minimum basic standard of adequate care for counties in Region 1.
Region 1 shall consist of the following counties:
   (A) Alameda County
   (B) Contra Costa County
   (C) Los Angeles County
   (D) Marin County
   (E) Monterey County
   (F) Napa County
   (G) Orange County
   (H) San Diego County
   (I) San Francisco County
   (J) San Luis Obispo County
   (K) San Mateo County
   (L) Santa Barbara County
   (M) Santa Clara County
   (N) Santa Cruz County
   (O) Solano County
   (P) Sonoma County
   (Q) Ventura County
   (2) Region 2 shall include all counties with lowest quartile rents
below four hundred dollars ($400). There shall be a 4.9 percent
reduction in the minimum basic standard of adequate care for counties
in Region 2. Region 2 shall consist of the following counties:
   (A) Alpine County
   (B) Amador County
   (C) Butte County
   (D) Calaveras County
   (E) Colusa County
   (F) Del Norte County
   (G) El Dorado County
   (H) Fresno County
   (I) Glenn County
   (J) Humboldt County
   (K) Imperial County
   (L) Inyo County
   (M) Kern County
   (N) Kings County
   (O) Lake County
   (P) Lassen County
   (Q) Madera County
   (R) Mariposa County
   (S) Mendocino County
   (T) Merced County
   (U) Modoc County
   (V) Mono County
   (W) Nevada County
   (X) Placer County
   (Y) Plumas County
   (Z) Riverside County
   (AA) Sacramento County
   (AB) San Benito County
   (AC) San Bernardino County
   (AD) San Joaquin County
   (AE) Shasta County
   (AF) Sierra County
   (AG) Siskiyou County
   (AH) Stanislaus County
   (AI) Sutter County
   (AJ) Tehama County
   (AK) Trinity County
   (AL) Tulare County
   (AM) Tuolumne County
   (AN) Yolo County
   (AO) Yuba County
   (c) This section shall be operative during such time as
subdivision (a) of Section 11450.018 is operative.

11453.  (a) Except as provided in subdivision (c), the amounts set
forth in Section 11452 and subdivision (a) of Section 11450 shall be
adjusted annually by the department to reflect any increases or
decreases in the cost of living. These adjustments shall become
effective July 1 of each year, unless otherwise specified by the
Legislature. For the 2000-01 fiscal year to the 2003-04 fiscal year,
inclusive, these adjustments shall become effective October 1 of each
year. The cost-of-living adjustment shall be calculated by the
Department of Finance based on the changes in the California
Necessities Index, which as used in this section means the weighted
average changes for food, clothing, fuel, utilities, rent, and
transportation for low-income consumers. The computation of annual
adjustments in the California Necessities Index shall be made in
accordance with the following steps:
   (1) The base period expenditure amounts for each expenditure
category within the California Necessities Index used to compute the
annual grant adjustment are:

  Food...............................       $ 3,027
  Clothing (apparel and upkeep)......           406
  Fuel and other utilities...........           529
  Rent, residential..................         4,883
  Transportation.....................         1,757
  Total..............................       $10,602

   (2) Based on the appropriate components of the Consumer Price
Index for All Urban Consumers, as published by the United States
Department of Labor, Bureau of Labor Statistics, the percentage
change shall be determined for the 12-month period ending with the
December preceding the year for which the cost-of-living adjustment
will take effect, for each expenditure category specified in
subdivision (a) within the following geographical areas: Los
Angeles-Long Beach-Anaheim, San Francisco-Oakland, San Diego, and, to
the extent statistically valid information is available from the
Bureau of Labor Statistics, additional geographical areas within the
state which include not less than 80 percent of recipients of aid
under this chapter.
   (3) Calculate a weighted percentage change for each of the
expenditure categories specified in subdivision (a) using the
applicable weighting factors for each area used by the State
Department of Industrial Relations to calculate the California
Consumer Price Index (CCPI).
   (4) Calculate a category adjustment factor for each expenditure
category in subdivision (a) by (1) adding 100 to the applicable
weighted percentage change as determined in paragraph (2) and (2)
dividing the sum by 100.
   (5) Determine the expenditure amounts for the current year by
multiplying each expenditure amount determined for the prior year by
the applicable category adjustment factor determined in paragraph
(4).
   (6) Determine the overall adjustment factor by dividing (1) the
sum of the expenditure amounts as determined in paragraph (4) for the
current year by (2) the sum of the expenditure amounts as determined
in subdivision (d) for the prior year.
   (b) The overall adjustment factor determined by the preceding
computation steps shall be multiplied by the schedules established
pursuant to Section 11452 and subdivision (a) of Section 11450 as are
in effect during the month of June preceding the fiscal year in
which the adjustments are to occur and the product rounded to the
nearest dollar. The resultant amounts shall constitute the new
schedules which shall be filed with the Secretary of State.
   (c) (1) No adjustment to the maximum aid payment set forth in
subdivision (a) of Section 11450 shall be made under this section for
the purpose of increasing the benefits under this chapter for the
1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, and
1997-98 fiscal years, and through October 31, 1998, to reflect any
change in the cost of living. For the 1998-99 fiscal year, the cost
of living adjustment that would have been provided on July 1, 1998,
pursuant to subdivision (a) shall be made on November 1, 1998. No
adjustment to the maximum aid payment set forth in subdivision (a) of
Section 11450 shall be made under this section for the purpose of
increasing the benefits under this chapter for the 2005-06 and
2006-07 fiscal years to reflect any change in the cost-of-living.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of Section 11453.05, and no
further reduction shall be made pursuant to that section.
   (2) No adjustment to the minimum basic standard of adequate care
set forth in Section 11452 shall be made under this section for the
purpose of increasing the benefits under this chapter for the 1990-91
and 1991-92 fiscal years to reflect any change in the cost of
living.
   (3) In any fiscal year commencing with the 2000-01 fiscal year to
the 2003-04 fiscal year, inclusive, when there is any increase in tax
relief pursuant to the applicable paragraph of subdivision (a) of
Section 10754 of the Revenue and Taxation Code, then the increase
pursuant to subdivision (a) of this section shall occur. In any
fiscal year commencing with the 2000-01 fiscal year to the 2003-04
fiscal year, inclusive, when there is no increase in tax relief
pursuant to the applicable paragraph of subdivision (a) of Section
10754 of the Revenue and Taxation Code, then any increase pursuant to
subdivision (a) of this section shall be suspended.
   (4) Notwithstanding paragraph (3), an adjustment to the maximum
aid payments set forth in subdivision (a) of Section 11450 shall be
made under this section for the 2002-03 fiscal year, but the
adjustment shall become effective June 1, 2003.
   (5) No adjustment to the maximum aid payment set forth in
subdivision (a) of Section 11450 shall be made under this section for
the purpose of increasing benefits under this chapter for the
2007-08, 2008-09, and 2009-10 fiscal years.
   (6) For the 2010-11 fiscal year and each fiscal year thereafter,
no adjustment to the maximum aid payment set forth in subdivision (a)
of Section 11450 shall be made under this section unless otherwise
specified by statute.
   (d) For the 2004-05 fiscal year, the adjustment to the maximum aid
payment set forth in subdivision (a) shall be suspended for three
months commencing on the first day of the first month following the
effective date of the act adding this subdivision.
   (e) Adjustments for subsequent fiscal years pursuant to this
section shall not include any adjustments for any fiscal year in
which the cost of living was suspended pursuant to subdivision (c).

11453.1.  (a) It is the intent of this section to assure that the
food purchasing power provided by benefits available from food stamps
under the federal Food Stamp Program (Chapter 51 (commencing with
Section 2011), Title 7, United States Code) shall continue to be
available to recipients of aid under this chapter, if, when and
during such times as federal law is amended to preclude food stamp
benefits to such recipients, but does expressly permit the equivalent
of such benefits to be provided as cash benefits to such recipients.
   (b) It is the further intent of this section to protect the
financial interest of the state and counties by accomplishing the
conversion of food stamp benefits in such a manner that the
conversion does not result in state and county costs of aid exceeding
the costs in the base year, as hereinafter defined in this section.
   (c) If federal law is amended to preclude the provision of food
stamp benefits pursuant to the federal Food Stamp Program to
applicants or recipients of aid under this chapter, when such federal
law becomes operative, such of the following provisions for
converting food stamp benefits to cash benefits as is consistent with
the intent of this section shall become operative immediately:
   (1) The bonus value of food stamps shall be paid in addition to
the amounts payable pursuant to subdivision (a) of Section 11450,
provided that aggregate state and county expenditures pursuant to
that section and this section do not thereby exceed the base-year
costs.
   (2) If aggregate state and county expenditures pursuant to
subdivision (a) of Section 11450 and this section in any fiscal year
would, by virtue of the operation of subsection (1) of subdivision
(c) of this section, result in an increase over the aggregate of such
expenditures in the base year, the bonus value of food stamps paid
pursuant to this section shall be reduced, on a pro rata basis, by
such amount as will reduce aggregate state and county expenditures
under that section and this section to an amount equal to the
aggregate state and county expenditures in the base year.
   (d) For the purposes of this section, "base year" means that year
designated by federal law as the year fixing the limit on nonfederal
expenditures for programs established to implement programs under
Part A of Title 4 of the Social Security Act.
   (e) For purposes of this section, "bonus value of food stamps"
means the dollar amount that federal law permits to be paid to a
child or a family of given size as a cash benefit in lieu of benefits
under the federal Food Stamp Program.
   (f) For purposes of this section, "aggregate state and county
expenditure" is defined as expenditure made under subdivision (a) of
Section 11450 and this section, after deducting any federal
reimbursements or credits, and excluding any cost-of-living increment
paid pursuant to Section 11453.

11453.2.  A county shall issue vouchers or vendor payments for at
least rent and utilities payments, for any assistance unit in which
any parent or caretaker relative has been subject to sanction of a
consecutive period of not less than three months. Vouchers or vendor
payments shall continue until the parent or caretaker relative is no
longer subject to the sanction.

11454.  (a) A parent or caretaker relative shall not be eligible for
aid under this chapter when he or she has received aid under this
chapter or from any state under the Temporary Assistance for Needy
Families program (Part A (commencing with Section 401) of Title IV of
the federal Social Security Act (42 U.S.C. Sec. 601 et seq.) for a
cumulative total of 60 months.
   (b) No month in which aid has been received prior to January 1,
1998, shall be taken into consideration in computing the 60-month
limitation provided for in subdivision (a).
   (c) Subdivision (a) shall not be applicable when all parent or
caretaker relatives of the aided child who are living in the home of
the child meet any of the following requirements:
   (1) They are 60 years of age or older.
   (2) They meet one of the conditions specified in paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (3) They are not included in the assistance unit.
   (4) They are receiving benefits under Section 12200 or Section
12300, State Disability Insurance benefits or Workers' Compensation
Temporary Disability Insurance, if the disability significantly
impairs the recipient's ability to be regularly employed or
participate in welfare-to-work activities.
   (5) They are incapable of maintaining employment or participating
in welfare-to-work activities, as determined by the county, based on
the assessment of the individual and the individual has a history of
participation and full cooperation in welfare-to-work activities.
   (d) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed.

11454.  (a) A parent or caretaker relative shall not be eligible for
aid under this chapter when he or she has received aid under this
chapter or from any state under the Temporary Assistance for Needy
Families program (Part A (commencing with Section 401) of Title IV of
the federal Social Security Act (42 U.S.C. Sec. 601 et seq.) for a
cumulative total of 60 months.
   (b) No month in which aid has been received prior to January 1,
1998, shall be taken into consideration in computing the 60-month
limitation provided for in subdivision (a), or the 48-month
limitation provided for in subdivision (e).
   (c) Subdivision (a) shall not be applicable when all parent or
caretaker relatives of the aided child who are living in the home of
the child meet any of the following requirements:
   (1) They are 60 years of age or older.
   (2) They meet one of the conditions specified in paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (3) They are not included in the assistance unit.
   (4) They are receiving benefits under Section 12200 or Section
12300, State Disability Insurance benefits or Workers' Compensation
Temporary Disability Insurance, if the disability significantly
impairs the recipient's ability to be regularly employed or
participate in welfare-to-work activities.
   (5) They are incapable of maintaining employment or participating
in welfare-to-work activities, as determined by the county, based on
the assessment of the individual and the individual has a history of
participation and full cooperation in welfare-to-work activities.
   (d) A month in which an individual is under sanction for
noncompliance pursuant to Section 11327.5 shall be taken into
consideration in computing the 60-month time limit on receipt of cash
assistance pursuant to subdivision (a), but shall not be counted for
purposes of the receipt of welfare-to-work services pursuant to
Section 11320.
   (e) The 60-month benefit limit provided for in subdivision (a)
shall apply, except that aid may not be received for more than 48
cumulative months in any 60-month period. The adult may return to the
assistance unit 12 months after receiving aid for the 48 cumulative
months. In the absence of a sanction pursuant to Section 11327.5, the
full grant shall be restored at the time the adult returns to the
assistance unit.
   (f) This section shall become operative on July 1, 2011.
   (g) Counties shall notify families of the reduction in time
limitations specified in this section, within a reasonable time
following the effective date of this section.

11454.5.  (a) Any month in which the following conditions exist
shall not be counted as a month of receipt of aid for the purposes of
subdivision (a) of Section 11454:
   (1) The recipient is exempt from participation under Article 3.2
(commencing with Section 11320) due to disability, or advanced age in
accordance with paragraph (3) of subdivision (b) of Section 11320.3,
or due to caretaking responsibilities that impair the recipient's
ability to be regularly employed, in accordance with paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (2) The recipient is eligible for, participating in, or exempt
from, the Cal-Learn Program provided for pursuant to Article 3.5
(commencing with Section 11331) or is participating in another teen
parent program approved by the department.
   (3) The cost of the cash aid provided to the recipient for the
month is fully reimbursed by child support, whether collected in that
month or any subsequent month.
   (4) The family is a former recipient of cash aid under this
chapter and currently receives only child care, case management, or
supportive services pursuant to Section 11323.2 or Article 15.5
(commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code.
   (5) To the extent provided by federal law, the recipient lived in
Indian country, as defined by federal law, or an Alaskan native
village in which at least 50 percent of the adults living in the
Indian country or in the village are not employed.
   (6) The recipient has been excused from participation for good
cause pursuant to paragraph (1) of subdivision (f) of Section
11320.3. This paragraph shall become inoperative on July 1, 2011.
   (7) The recipient is exempt from participation due to caretaking
responsibilities that impair the recipient's ability to be regularly
employed, or is otherwise exempt, in accordance with paragraph (7) of
subdivision (b) of Section 11320.3. This paragraph shall become
inoperative on July 1, 2011.
   (b) In cases where a lump-sum diversion payment is provided in
lieu of cash aid under Section 11266.5, the month in which the
payment is made or the months calculated pursuant to subdivision (f)
of Section 11266.5 shall count against the limits specified in
Section 11454.

11454.6.  (a) Notwithstanding Section 15200, to the extent that the
exemptions from the time limits on aid specified in paragraphs (1),
(2), (4), and (5) of subdivision (c) of Section 11454 and subdivision
(a) of Section 11454.5 exceed 20 percent of the number of families
aided in a county, for a period as determined by the United States
Department of Health and Human Services, for purposes of measuring
the hardship exemption for time limits, the county shall be
responsible for the amount of aid that would otherwise have been paid
through federal Temporary Assistance for Needy Families block grant
funds pursuant to Section 11450, with respect to those persons exempt
under either paragraphs (1), (2), (4), and (5) of subdivision (c) of
Section 11454 or subdivision (a) of Section 11454.5 that exceed the
20 percent hardship exemption during the period determined by the
United States Department of Health and Human Services and provided
for in federal law.
   (b) Subdivision (a) shall not apply if the statewide percentage of
families aided during that period is 20 percent or less.
   (c) The department may determine that a county has good cause for
exceeding the 20-percent limitation provided for in subdivision (a).
Under this determination, the county share may be reduced or waived
by the department.
   (d) It is the intent of the Legislature that the steering
committee as specified in Section 10544.317 review this provision to
ensure that:
   (1) The state does not exceed the limit on hardship exemptions as
provided in federal law.
   (2) Counties are not penalized for circumstances beyond their
control and that statewide flexibility for allocation of the
percentages is assured.
   (3) Recipients will have access to the hardship exemption,
regardless of their county of origin.

11455.  If on the first day of the month a child is eligible for
aid, aid for the entire month shall be paid.

11457.  (a) Money from noncustodial parents for child or spousal
support with respect to whom an assignment under Section 11477 has
been made shall be paid directly to the local child support agency
and shall not be paid directly to the family. Absent parent support
payments, when collected by or paid through any public officer or
agency, shall be transmitted to the county department providing aid
under this chapter until a procedure is established under subdivision
(b).
   (b) The Department of Child Support Services, by regulation, shall
work in conjunction with the California State Association of
Counties, the County Welfare Director's Association, the Child
Support Director's Association, and other pertinent stakeholders to
establish procedures not in conflict with federal law, for the
collection and distribution of noncustodial parent support payments.
   (c) If an amount collected as child or spousal support represents
payment on the required support obligation for future months, the
amount shall be applied to such future months. However, no such
amounts shall be applied to future months unless amounts have been
collected which fully satisfy the support obligation assigned under
subdivision (a) of Section 11477 for the current months and all past
months.

11458.  The county may cancel, suspend or revoke aid under this
chapter for cause. Upon instructions from the department, the county
shall cancel, suspend or revoke aid under this chapter.
   Upon request of the department, an immediate report of every
suspension of aid shall be made to the department stating the reason
for the suspension and showing the action of the county in approving
the suspension.

11460.  (a) Foster care providers shall be paid a per child per
month rate in return for the care and supervision of the AFDC-FC
child placed with them. The department is designated the single
organizational unit whose duty it shall be to administer a state
system for establishing rates in the AFDC-FC program. State functions
shall be performed by the department or by delegation of the
department to county welfare departments or Indian tribes that have
entered into an agreement pursuant to Section 10553.1.
   (b) "Care and supervision" includes food, clothing, shelter, daily
supervision, school supplies, a child's personal incidentals,
liability insurance with respect to a child, and reasonable travel to
the child's home for visitation.
   (1) For a child placed in a group home, care and supervision shall
also include reasonable administration and operational activities
necessary to provide the items listed in this subdivision.
   (2) For a child placed in a group home, care and supervision may
also include reasonable activities performed by social workers
employed by the group home provider which are not otherwise
considered daily supervision or administration activities.
   (c) It is the intent of the Legislature to establish the maximum
level of state participation in out-of-state foster care group home
program rates effective January 1, 1992.
   (1) The department shall develop regulations that establish the
method for determining the level of state participation for each
out-of-state group home program. The department shall consider all of
the following methods:
   (A) A standardized system based on the level of care and services
per child per month as detailed in Section 11462.
   (B) A system which considers the actual allowable and reasonable
costs of care and supervision incurred by the program.
   (C) A system which considers the rate established by the host
state.
   (D) Any other appropriate methods as determined by the department.
   (2) State reimbursement for the AFDC-FC group home rate to be paid
to an out-of-state program on or after January 1, 1992, shall only
be paid to programs which have done both of the following:
   (A) Submitted a rate application to the department and received a
determination of the level of state participation.
   (i) The level of state participation shall not exceed the current
fiscal year's standard rate for rate classification level 14.
   (ii) The level of state participation shall not exceed the rate
determined by the ratesetting authority of the state in which the
facility is located.
   (iii) The level of state participation shall not decrease for any
child placed prior to January 1, 1992, who continues to be placed in
the same out-of-state group home program.
   (B) Agreed to comply with information requests, and program and
fiscal audits as determined necessary by the department.
   (3) State reimbursement for an AFDC-FC rate paid on or after
January 1, 1993, shall only be paid to a group home organized and
operated on a nonprofit basis.
   (d) A foster care provider that accepts payments, following the
effective date of this section, based on a rate established under
this section, shall not receive rate increases or retroactive
payments as the result of litigation challenging rates established
prior to the effective date of this section. This shall apply
regardless of whether a provider is a party to the litigation or a
member of a class covered by the litigation.
   (e) Nothing shall preclude a county from using a portion of its
county funds to increase rates paid to family homes and foster family
agencies within that county, and to make payments for specialized
care increments, clothing allowances, or infant supplements to homes
within that county, solely at that county's expense.

11461.  (a) For children placed in a licensed or approved family
home with a capacity of six or less, or in an approved home of a
relative or nonrelated legal guardian, or the approved home of a
nonrelative extended family member as described in Section 362.7, the
per child per month rates in the following schedule shall be in
effect for the period July 1, 1989, through December 31, 1989:

  Age                                    Basic rate
  0-4.................................     $ 294
  5-8.................................      319
  9-11................................      340
  12-14...............................      378
  15-20...............................      412

   (b) (1) Any county that, as of October 1, 1989, has in effect a
basic rate that is at the levels set forth in the schedule in
subdivision (a), shall continue to receive state participation, as
specified in subdivision (c) of Section 15200, at these levels.
   (2) Any county that, as of October 1, 1989, has in effect a basic
rate that exceeds a level set forth in the schedule in subdivision
(a), shall continue to receive the same level of state participation
as it received on October 1, 1989.
   (c) The amounts in the schedule of basic rates in subdivision (a)
shall be adjusted as follows:
   (1) Effective January 1, 1990, the amounts in the schedule of
basic rates in subdivision (a) shall be increased by 12 percent.
   (2) Effective May 1, 1990, any county that did not increase the
basic rate by 12 percent on January 1, 1990, shall do both of the
following:
   (A) Increase the basic rate in effect December 31, 1989, for which
state participation is received by 12 percent.
   (B) Increase the basic rate, as adjusted pursuant to subparagraph
(A) by an additional 5 percent.
   (3) (A) Except as provided in subparagraph (B), effective July 1,
1990, for the 1990-91 fiscal year, the amounts in the schedule of
basic rates in subdivision (a) shall be increased by an additional 5
percent.
   (B) The rate increase required by subparagraph (A) shall not be
applied to rates increased May 1, 1990, pursuant to paragraph (2).
   (4) Effective July 1, 1998, the amounts in the schedule of basic
rates in subdivision (a) shall be increased by 6 percent.
Notwithstanding any other provision of law, the 6-percent increase
provided for in this paragraph shall, retroactive to July 1, 1998,
apply to every county, including any county to which paragraph (2) of
subdivision (b) applies, and shall apply to foster care for every
age group.
   (5) Notwithstanding any other provision of law, any increase that
takes effect after July 1, 1998, shall apply to every county,
including any county to which paragraph (2) of subdivision (b)
applies, and shall apply to foster care for every age group.
   (6) The increase in the basic foster family home rate shall apply
only to children placed in a licensed foster family home receiving
the basic rate or in an approved home of a relative or nonrelative
extended family member, as described in Section 362.7 or nonrelated
legal guardian receiving the basic rate. The increased rate shall not
be used to compute the monthly amount that may be paid to licensed
foster family agencies for the placement of children in certified
foster homes.
   (d) (1) (A) Beginning with the 1991-92 fiscal year, the schedule
of basic rates in subdivision (a) shall be adjusted by the percentage
changes in the California Necessities Index, computed pursuant to
the methodology described in Section 11453, subject to the
availability of funds.
   (B) In addition to the adjustment in subparagraph (A) effective
January 1, 2000, the schedule of basic rates in subdivision (a) shall
be increased by 2.36 percent rounded to the nearest dollar.
   (C) Effective January 1, 2008, the schedule of basic rates in
subdivision (a), as adjusted pursuant to subparagraph (B), shall be
increased by 5 percent, rounded to the nearest dollar. The increased
rate shall not be used to compute the monthly amount that may be paid
to licensed foster family agencies for the placement of children in
certified foster family homes, and shall not be used to recompute the
foster care maintenance payment that would have been paid based on
the age-related, state-approved foster family home care rate and any
applicable specialized care increment, for any adoption assistance
agreement entered into prior to October 1, 1992, or in any subsequent
reassessment for adoption assistance agreements executed before
January 1, 2008.
   (2) (A) Any county that, as of the 1991-92 fiscal year, receives
state participation for a basic rate that exceeds the amount set
forth in the schedule of basic rates in subdivision (a) shall receive
an increase each year in state participation for that basic rate of
one-half of the percentage adjustments specified in paragraph (1)
until the difference between the county's adjusted state
participation level for its basic rate and the adjusted schedule of
basic rates is eliminated.
   (B) Notwithstanding subparagraph (A), all counties for the
1999-2000 fiscal year and the 2007-08 fiscal year shall receive an
increase in state participation for the basic rate of the entire
percentage adjustment described in paragraph (1).
   (3) If a county has, after receiving the adjustments specified in
paragraph (2), a state participation level for a basic rate that is
below the amount set forth in the adjusted schedule of basic rates
for that fiscal year, the state participation level for that rate
shall be further increased to the amount specified in the adjusted
schedule of basic rates.
   (e) (1) As used in this section, "specialized care increment"
means an approved amount paid with state participation on behalf of
an AFDC-FC child requiring specialized care to a home listed in
subdivision (a) in addition to the basic rate. On the effective date
of this section, the department shall continue and maintain the
current ratesetting system for specialized care.
   (2) Any county that, as of the effective date of this section, has
in effect specialized care increments that have been approved by the
department, shall continue to receive state participation for those
payments.
   (3) Any county that, as of the effective date of this section, has
in effect specialized care increments that exceed the amounts that
have been approved by the department, shall continue to receive the
same level of state participation as it received on the effective
date of this section.
   (4) (A) Except for subparagraph (B), beginning January 1, 1990,
specialized care increments shall be adjusted in accordance with the
methodology for the schedule of basic rates described in subdivision
(c) and (d). No county shall receive state participation for any
increases in a specialized care increment which exceeds the
adjustments made in accordance with this methodology.
   (B) Notwithstanding subdivision (e) of Section 11460, for the
1993-94 fiscal year, an amount equal to 5 percent of the State
Treasury appropriation for family homes shall be added to the total
augmentation for the AFDC-FC program in order to provide incentives
and assistance to counties in the area of specialized care. This
appropriation shall be used, but not limited to, encouraging counties
to implement or expand specialized care payment systems, to recruit
and train foster parents for the placement of children with
specialized care needs, and to develop county systems to encourage
the placement of children in family homes. It is the intent of the
Legislature that in the use of these funds, federal financial
participation shall be claimed whenever possible.
   (f) (1) As used in this section, "clothing allowance" means the
amount paid with state participation in addition to the basic rate
for the provision of additional clothing for an AFDC-FC child,
including, but not limited to, an initial supply of clothing and
school or other uniforms.
   (2) Any county that, as of the effective date of this section, has
in effect clothing allowances, shall continue to receive the same
level as it received on the effective date of this section.
   (3) (A) Commencing in the 2007-08 fiscal year, for children whose
foster care payment is the responsibility of Colusa, Plumas, and
Tehama Counties, the amount of the clothing allowance may be up to
two hundred seventy-four dollars ($274) per child per year.
   (B)  Each county listed in subparagraph (A) that elects to receive
the clothing allowance shall submit a Clothing Allowance Program
Notification to the department within 60 days after the effective
date of the act that adds this paragraph.
   (C) The Clothing Allowance Program Notification shall identify the
specific amounts to be paid and the disbursement schedule for these
clothing allowance payments.
   (4) Beginning January 1, 1990, except as provided in paragraph
(5), clothing allowances shall be adjusted annually in accordance
with the methodology for the schedule of basic rates described in
subdivision (c) and (d). No county shall be reimbursed for any
increases in clothing allowances which exceed the adjustments made in
accordance with this methodology.
   (5) For the 2000-01 fiscal year and each fiscal year thereafter,
without a county share of cost, notwithstanding subdivision (c) of
Section 15200, each child shall be entitled to receive a supplemental
clothing allowance of one hundred dollars ($100) per year subject to
the availability of funds. The clothing allowance shall be used to
supplement, and not supplant, the clothing allowance specified in
paragraph (1).

11461.1.  It is the intent of the Legislature to ensure quality care
for children who are placed in foster family homes. Therefore, the
State Department of Social Services is directed to work with
counties, foster parent associations, representatives of the
community colleges, representatives of foster youth organizations,
legislative staff members, and other interested parties concerning
training requirements, experience, and retention of foster parents
and the capacity of foster homes.

11461.5.  (a) The department may establish a rate to supplement the
basic rate specified in subdivision (a) of Section 11461 for the
provision of additional shelter needs for AFDC-FC children who are
placed in out-of-home care with their siblings.
   (b) The department shall develop regulations for the rate
specified in subdivision (a).
   (c) The department shall amend the state plan to receive
appropriate funding from the federal government, for implementation
of this section, under Title IV-E of the federal Social Security Act,
Part E (commencing with Section 670) of Subchapter 4 of Chapter 7 of
Title 42 of the United States Code. The plan amendment shall be
submitted within 90 days of notification that federal funds are
available for the purposes of this section.
   (d) Subdivisions (a) and (b) shall be implemented only if, and
upon the date that, the director executes a declaration, that shall
be retained by the director, stating that the director has determined
that the federal government has approved the state plan amendments
required by subdivision (c), and federal funding in accordance with
those state plan amendments becomes available.

11462.  (a) (1) Effective July 1, 1990, foster care providers
licensed as group homes, as defined in departmental regulations,
including public child care institutions, as defined in Section
11402.5, shall have rates established by classifying each group home
program and applying the standardized schedule of rates. The
department shall collect information from group providers beginning
January 1, 1990, in order to classify each group home program.
   (2) Notwithstanding paragraph (1), foster care providers licensed
as group homes shall have rates established only if the group home is
organized and operated on a nonprofit basis as required under
subdivision (h) of Section 11400. The department shall terminate the
rate effective January 1, 1993, of any group home not organized and
operated on a nonprofit basis as required under subdivision (h) of
Section 11400.
   (3) (A) The department shall determine, consistent with the
requirements of this chapter and other relevant requirements under
law, the rate classification level (RCL) for each group home program
on a biennial basis. Submission of the biennial rate application
shall be made according to a schedule determined by the department.
   (B) The department shall adopt regulations to implement this
paragraph. The adoption, amendment, repeal, or readoption of a
regulation authorized by this paragraph is deemed to be necessary for
the immediate preservation of the public peace, health and safety,
or general welfare, for purposes of Sections 11346.1 and 11349.6 of
the Government Code, and the department is hereby exempted from the
requirement to describe specific facts showing the need for immediate
action.
   (b) A group home program shall be initially classified, for
purposes of emergency regulations, according to the level of care and
services to be provided using a point system developed by the
department and described in the report, "The Classification of Group
Home Programs under the Standardized Schedule of Rates System,"
prepared by the State Department of Social Services, August 30, 1989.
   (c) The rate for each RCL has been determined by the department
with data from the AFDC-FC Group Home Rate Classification Pilot
Study. The rates effective July 1, 1990, were developed using 1985
calendar year costs and reflect adjustments to the costs for each
fiscal year, starting with the 1986-87 fiscal year, by the amount of
the California Necessities Index computed pursuant to the methodology
described in Section 11453. The data obtained by the department
using 1985 calendar year costs shall be updated and revised by
January 1, 1993.
   (d) As used in this section, "standardized schedule of rates"
means a listing of the 14 rate classification levels, and the single
rate established for each RCL.
   (e) Except as specified in paragraph (1), the department shall
determine the RCL for each group home program on a prospective basis,
according to the level of care and services that the group home
operator projects will be provided during the period of time for
which the rate is being established.
   (1) (A) For new and existing providers requesting the
establishment of an RCL, and for existing group home programs
requesting an RCL increase, the department shall determine the RCL no
later than 13 months after the effective date of the provisional
rate. The determination of the RCL shall be based on a program audit
of documentation and other information that verifies the level of
care and supervision provided by the group home program during a
period of the two full calendar months or 60 consecutive days,
whichever is longer, preceding the date of the program audit, unless
the group home program requests a lower RCL. The program audit shall
not cover the first six months of operation under the provisional
rate. Pending the department's issuance of the program audit report
that determines the RCL for the group home program, the group home
program shall be eligible to receive a provisional rate that shall be
based on the level of care and service that the group home program
proposes it will provide. The group home program shall be eligible to
receive only the RCL determined by the department during the
pendency of any appeal of the department's RCL determination.
   (B) A group home program may apply for an increase in its RCL no
earlier than two years from the date the department has determined
the group home program's rate, unless the host county, the primary
placing county, or a regional consortium of counties submits to the
department in writing that the program is needed in that county, that
the provider is capable of effectively and efficiently operating the
proposed program, and that the provider is willing and able to
accept AFDC-FC children for placement who are determined by the
placing agency to need the level of care and services that will be
provided by the program.
   (C) To ensure efficient administration of the department's audit
responsibilities, and to avoid the fraudulent creation of records,
group home programs shall make records that are relevant to the RCL
determination available to the department in a timely manner. Except
as provided in this section, the department may refuse to consider,
for purposes of determining the rate, any documents that are relevant
to the determination of the RCL that are not made available by the
group home provider by the date the group home provider requests a
hearing on the department's RCL determination. The department may
refuse to consider, for purposes of determining the rate, the
following records, unless the group home provider makes the records
available to the department during the fieldwork portion of the
department's program audit:
   (i) Records of each employee's full name, home address,
occupation, and social security number.
   (ii) Time records showing when the employee begins and ends each
work period, meal periods, split shift intervals, and total daily
hours worked.
   (iii) Total wages paid each payroll period.
   (iv) Records required to be maintained by licensed group home
providers under Title 22 of the California Code of Regulations that
are relevant to the RCL determination.
   (D) To minimize financial abuse in the startup of group home
programs, when the department's RCL determination is more than three
levels lower than the RCL level proposed by the group home provider,
and the group home provider does not appeal the department's RCL
determination, the department shall terminate the rate of a group
home program 45 days after issuance of its program audit report. When
the group home provider requests a hearing on the department's RCL
determination, and the RCL determined by the director under
subparagraph (E) is more than three levels lower than the RCL level
proposed by the group home provider, the department shall terminate
the rate of a group home program within 30 days of issuance of the
director's decision. Notwithstanding the reapplication provisions in
subparagraph (B), the department shall deny any request for a new or
increased RCL from a group home provider whose RCL is terminated
pursuant to this subparagraph, for a period of no greater than two
years from the effective date of the RCL termination.
   (E) A group home provider may request a hearing of the department'
s RCL determination under subparagraph (A) no later than 30 days
after the date the department issues its RCL determination. The
department's RCL determination shall be final if the group home
provider does not request a hearing within the prescribed time.
Within 60 days of receipt of the request for hearing, the department
shall conduct a hearing on the RCL determination. The standard of
proof shall be the preponderance of the evidence and the burden of
proof shall be on the department. The hearing officer shall issue the
proposed decision within 45 days of the close of the evidentiary
record. The director shall adopt, reject, or modify the proposed
decision, or refer the matter back to the hearing officer for
additional evidence or findings within 100 days of issuance of the
proposed decision. If the director takes no action on the proposed
decision within the prescribed time, the proposed decision shall take
effect by operation of law.
   (2) Group home programs that fail to maintain at least the level
of care and services associated with the RCL upon which their rate
was established shall inform the department. The department shall
develop regulations specifying procedures to be applied when a group
home fails to maintain the level of services projected, including,
but not limited to, rate reduction and recovery of overpayments.
   (3) The department shall not reduce the rate, establish an
overpayment, or take other actions pursuant to paragraph (2) for any
period that a group home program maintains the level of care and
services associated with the RCL for children actually residing in
the facility. Determinations of levels of care and services shall be
made in the same way as modifications of overpayments are made
pursuant to paragraph (2) of subdivision (b) of Section 11466.2.
   (4) A group home program that substantially changes its staffing
pattern from that reported in the group home program statement shall
provide notification of this change to all counties that have placed
children currently in care. This notification shall be provided
whether or not the RCL for the program may change as a result of the
change in staffing pattern.
   (f) (1) The standardized schedule of rates for the 2002-03,
2003-04, 2004-05, 2005-06, 2006-07, and 2007-08 fiscal years is:

                                FY 2002-03, 2003-
       Rate        Point Ranges        04,
                                  2004-05, 2005-
                                 06, 2006-07, and
  Classification                     2007-08
       Level                      Standard Rate
         1             Under 60       $1,454
         2               60- 89       1,835
         3               90-119       2,210
         4              120-149       2,589
         5              150-179       2,966
         6              180-209       3,344
         7              210-239       3,723
         8              240-269       4,102
         9              270-299       4,479
        10              300-329       4,858
        11              330-359       5,234
        12              360-389       5,613
        13              390-419       5,994
        14             420 & Up       6,371

   (2) (A) For group home programs that receive AFDC-FC payments for
services performed during the 2002-03, 2003-04, 2004-05, 2005-06,
2006-07, 2007-08, 2008-09, and 2009-10 fiscal years, the adjusted RCL
point ranges below shall be used for establishing the biennial rates
for existing programs, pursuant to paragraph (3) of subdivision (a)
and in performing program audits and in determining any resulting
rate reduction, overpayment assessment, or other actions pursuant to
paragraph (2) of subdivision (e):

                    Adjusted Point
       Rate             Ranges
                 for the       2002-
  Classification     03, 2003-04,
                  2004-05, 2005-06,
                  2006-07, 2007-08,
                  2008-09, and 2009-
       Level       10 Fiscal Years
         1             Under 54
         2              54- 81
         3              82-110
         4             111-138
         5             139-167
         6             168-195
         7             196-224
         8             225-253
         9             254-281
        10             282-310
        11             311-338
        12             339-367
        13             368-395
        14             396 & Up

   (B) Notwithstanding subparagraph (A), foster care providers
operating group homes during the 2002-03, 2003-04, 2004-05, 2005-06,
2006-07, 2007-08, 2008-09, and 2009-10 fiscal years shall remain
responsible for ensuring the health and safety of the children placed
in their programs in accordance with existing applicable provisions
of the Health and Safety Code and community care licensing
regulations, as contained in Title 22 of the Code of California
Regulations.
   (C) Subparagraph (A) shall not apply to program audits of group
home programs with provisional rates established pursuant to
paragraph (1) of subdivision (e). For those program audits, the RCL
point ranges in paragraph (1) shall be used.
   (D) Rates applicable for the 2009-10 fiscal year pursuant to the
act that adds this subparagraph shall be effective October 1, 2009.
   (3) (A) For group home programs that receive AFDC-FC payments for
services performed during the 2009-10 fiscal year the adjusted RCL
point ranges below shall be used for establishing the biennial rates
for existing programs, pursuant to paragraph (3) of subdivision (a)
and in performing program audits and in determining any resulting
rate reduction, overpayment assessment, or other actions pursuant to
paragraph (2) of subdivision (e):

            Rate             Adjusted Point Ranges
       Classification           for the 2009-10
           Level                  Fiscal Year
             1                     Under 39
             2                       39-64
             3                       65-90
             4                      91-115
             5                      116-141
             6                      142-167
             7                      168-192
             8                      193-218
             9                      219-244
             10                     245-270
             11                     271-295
             12                     296-321
             13                     322-347
             14                    348 & Up

   (B) Notwithstanding subparagraph (A), foster care providers
operating group homes during the 2009-10 fiscal year shall remain
responsible for ensuring the health and safety of the children placed
in their programs in accordance with existing applicable provisions
of the Health and Safety Code and community care licensing
regulations as contained in Title 22 of the California Code of
Regulations.
   (C) Subparagraph (A) shall not apply to program audits of group
home programs with provisional rates established pursuant to
paragraph (1) of subdivision (e). For those program audits, the RCL
point ranges in paragraph (1) shall be used.
   (g) (1) (A) For the 1999-2000 fiscal year, the standardized rate
for each RCL shall be adjusted by an amount equal to the California
Necessities Index computed pursuant to the methodology described in
Section 11453. The resultant amounts shall constitute the new
standardized schedule of rates, subject to further adjustment
pursuant to subparagraph (B).
   (B) In addition to the adjustment in subparagraph (A), commencing
January 1, 2000, the standardized rate for each RCL shall be
increased by 2.36 percent, rounded to the nearest dollar. The
resultant amounts shall constitute the new standardized schedule of
rates.
   (2) Beginning with the 2000-01 fiscal year, the standardized
schedule of rates shall be adjusted annually by an amount equal to
the CNI computed pursuant to Section 11453, subject to the
availability of funds. The resultant amounts shall constitute the new
standardized schedule of rates.
   (3) Effective January 1, 2001, the amount included in the standard
rate for each Rate Classification Level (RCL) for the salaries,
wages, and benefits for staff providing child care and supervision or
performing social work activities, or both, shall be increased by 10
percent. This additional funding shall be used by group home
programs solely to supplement staffing, salaries, wages, and benefit
levels of staff specified in this paragraph. The standard rate for
each RCL shall be recomputed using this adjusted amount and the
resultant rates shall constitute the new standardized schedule of
rates. The department may require a group home receiving this
additional funding to certify that the funding was utilized in
accordance with the provisions of this section.
   (4) Effective January 1, 2008, the amount included in the standard
rate for each RCL for the wages for staff providing child care and
supervision or performing social work activities, or both, shall be
increased by 5 percent, and the amount included for the payroll taxes
and other employer-paid benefits for these staff shall be increased
from 20.325 percent to 24 percent. The standard rate for each RCL
shall be recomputed using these adjusted amounts, and the resulting
rates shall constitute the new standardized schedule of rates.
   (5) The new standardized schedule of rates as provided for in
paragraph (4) shall be reduced by 10 percent, effective October 1,
2009, and the resulting rates shall constitute the new standardized
schedule of rates.
   (6) The rates of licensed group home providers, whose rates are
not established under the standardized schedule of rates, shall be
reduced by 10 percent, effective October 1, 2009.
   (h) The standardized schedule of rates pursuant to subdivisions
(f) and (g) shall be implemented as follows:
   (1) Any group home program that received an AFDC-FC rate in the
prior fiscal year at or above the standard rate for the RCL in the
current fiscal year shall continue to receive that rate.
   (2) Any group home program that received an AFDC-FC rate in the
prior fiscal year below the standard rate for the RCL in the current
fiscal year shall receive the RCL rate for the current year.
   (i) (1) The department shall not establish a rate for a new
program of a new or existing provider, or for an existing program at
a new location of an existing provider, unless the provider submits a
letter of recommendation from the host county, the primary placing
county, or a regional consortium of counties that includes all of the
following:
   (A) That the program is needed by that county.
   (B) That the provider is capable of effectively and efficiently
operating the program.
   (C) That the provider is willing and able to accept AFDC-FC
children for placement who are determined by the placing agency to
need the level of care and services that will be provided by the
program.
   (D) That, if the letter of recommendation is not being issued by
the host county, the primary placing county has notified the host
county of its intention to issue the letter and the host county was
given the opportunity 30 days to respond to this notification and to
discuss options with the primary placing county.
   (2) The department shall encourage the establishment of consortia
of county placing agencies on a regional basis for the purpose of
making decisions and recommendations about the need for, and use of,
group home programs and other foster care providers within the
regions.
   (3) The department shall annually conduct a county-by-county
survey to determine the unmet placement needs of children placed
pursuant to Section 300 and Section 601 or 602, and shall publish its
findings by November 1 of each year.
   (j) The department shall develop regulations specifying
ratesetting procedures for program expansions, reductions, or
modifications, including increases or decreases in licensed capacity,
or increases or decreases in level of care or services.
   (k) (1) For the purpose of this subdivision, "program change"
means any alteration to an existing group home program planned by a
provider that will increase the RCL or AFDC-FC rate. An increase in
the licensed capacity or other alteration to an existing group home
program that does not increase the RCL or AFDC-FC rate shall not
constitute a program change.
   (2) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the rate
for a group home program shall not increase, as the result of a
program change, from the rate established for the program effective
July 1, 2000, and as adjusted pursuant to subparagraph (B) of
paragraph (1) of subdivision (g), except as provided in paragraph
(3).
   (3) (A) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the
department shall not establish a rate for a new program of a new or
existing provider or approve a program change for an existing
provider that either increases the program's RCL or AFDC-FC rate, or
increases the licensed capacity of the program as a result of
decreases in another program with a lower RCL or lower AFDC-FC rate
that is operated by that provider, unless both of the following
conditions are met:
   (i) The licensee obtains a letter of recommendation from the host
county, primary placing county, or regional consortium of counties
regarding the proposed program change or new program.
   (ii) The county determines that there is no increased cost to the
General Fund.
   (B) Notwithstanding subparagraph (A), the department may grant a
request for a new program or program change, not to exceed 25 beds,
statewide, if both of the following conditions are met:
   (i) The licensee obtains a letter of recommendation from the host
county, primary placing county, or regional consortium of counties
regarding the proposed program change or new program.
   (ii) The department determines that the new program or program
change will result in a reduction of referrals to state hospitals
during the 1998-99 fiscal year.
   (l) General unrestricted or undesignated private charitable
donations and contributions made to charitable or nonprofit
organizations shall not be deducted from the cost of providing
services pursuant to this section. The donations and contributions
shall not be considered in any determination of maximum expenditures
made by the department.
   (m) The department shall, by October 1 of each year, commencing
October 1, 1992, provide the Joint Legislative Budget Committee with
a list of any new departmental requirements established during the
previous fiscal year concerning the operation of group homes, and of
any unusual, industrywide increase in costs associated with the
provision of group care that may have significant fiscal impact on
providers of group homes care. The committee may, in fiscal year
1993-94 and beyond, use the list to determine whether an
appropriation for rate adjustments is needed in the subsequent fiscal
year.

11462.01.  (a) Commencing July 1, 1994, a group home program shall
be classified at RCL 13 or RCL 14 if the program meets all of the
following requirements:
   (1) The group home program is providing, or has proposed to
provide, the level of care and services necessary to generate
sufficient points in the ratesetting process to be classified at RCL
13 if the rate application is for RCL 13 or to be classified at RCL
14 if the rate application is for RCL 14.
   (2) (A) (i) The group home provider shall agree not to accept for
placement into a group home program AFDC-FC funded children,
including voluntary placements and seriously emotionally disturbed
children placed out-of-home pursuant to an individualized education
program developed under Section 7572.5 of the Government Code, who
have not been approved for placement by an interagency placement
committee, as described by Section 4096. The approval shall be in
writing and shall indicate that the interagency placement committee
has determined the child is seriously emotionally disturbed, as
defined by Section 5600.3 and subject to Section 1502.4 of the Health
and Safety Code, and that the child needs the level of care provided
by the group home.
   (ii) For purposes of clause (i), group home providers who accept
seriously emotionally disturbed children who are assessed and placed
out-of-home pursuant to an individualized education program developed
under Section 7572.5 of the Government Code shall be deemed to have
met the interagency placement committee approval for placement
requirements of clause (i) if the individualized education program
assessment indicates that the child has been determined to be
seriously emotionally disturbed, as defined in Section 5600.3 and
subject to Section 1502.4 of the Health and Safety Code, and needs
the level of care described in clause (i).
   (B) (i) Nothing in this subdivision shall prevent the emergency
placement of a child into a group home program prior to the
determination by the interagency placement committee pursuant to
subclause (i) of subparagraph (A) if a licensed mental health
professional, as defined in the department's AFDC-FC ratesetting
regulations, has evaluated, in writing, the child within 72 hours of
placement, and determined the child to be seriously emotionally
disturbed and in need of the care and services provided by the group
home program.
   (ii) The interagency placement committee shall, within 30 days of
placement pursuant to clause (i), make the determination required by
clause (i) of subparagraph (A).
   (iii) If, pursuant to clause (ii), the placement is determined to
be appropriate, the committee shall transmit the approval, in
writing, to the county placing agency and the group home provider.
   (iv) If, pursuant to clause (ii) the placement is determined not
to be appropriate, the child shall be removed from the group home and
referred to a more appropriate placement, as specified in
subdivision (f).
   (C) Commencing December 15, 1992, with respect to AFDC-FC funded
children, only those children who are approved for placement by an
interagency placement committee may be accepted by a group home under
this subdivision.
   (3) The group home program is certified by the State Department of
Mental Health pursuant to Section 4096.5.
   (b) The department shall not establish a rate for a group home
requesting a program change to RCL 13 or RCL 14 unless the group home
provider submits a recommendation from the host county or the
primary placing county that the program is needed and that the
provider is willing and capable of operating the program at the level
sought. For purposes of this subdivision, "host county," "primary
placing county," and "program change" mean the same as defined in the
department's AFDC-FC ratesetting regulations.
   (c) The effective date of rates set at RCL 13 or RCL 14 shall be
the date that all the requirements are met, but not prior to July 1
of that fiscal year. Nothing in this section shall affect RCL 13 or
RCL 14 ratesetting determinations in prior years.
   (d) Any group home program that has been classified at RCL 13 or
RCL 14 pursuant to the requirements of subdivision (a) shall be
reclassified at the appropriate lower RCL with a commensurate
reduction in rate if either of the following occurs:
   (1) The group home program fails to maintain the level of care and
services necessary to generate the necessary number of points for
RCL 13 or RCL 14, as required by paragraph (1) of subdivision (a).
The determination of points shall be made consistent with the
department's AFDC-FC ratesetting regulations for other rate
classification levels.
   (2) The group home program fails to maintain a certified mental
health treatment program as required by paragraph (3) of subdivision
(a).
   (3) In the event of a determination under paragraph (1), the group
home may appeal the finding or submit a corrective action plan. The
appeal process specified in Section 11466.6 shall be available to RCL
13 and RCL 14 group home providers. During any appeal, the group
home shall maintain the appropriate level of care.
   (e) The interagency placement committee shall periodically review,
but no less often than that required by current law, the placement
of the child. If the committee determines that the child no longer
needs, or is not benefiting from, placement in a RCL 13 or RCL 14
group home, the committee shall require the removal of the child and
a new disposition.
   (f) (1) (A) If, at any time subsequent to placement in an RCL 13
or RCL 14 group home program, the interagency placement committee
determines either that the child is not seriously emotionally
disturbed or is not in need of the care and services provided by the
group home program, it shall notify, in writing, both the county
placing agency and the group home provider within 10 days of the
determination.
   (B) The county placing agency shall notify the group home
provider, in writing, within five days from the date of the notice
from the committee, of the county's plan for removal of the child.
   (C) The county placing agency shall remove the child from the
group home program within 30 days from the date of the notice from
the interagency placement committee.
   (2) (A) If a county placing agency does not remove a child within
30 days from the date of the notice from the interagency placement
committee, the group home provider shall notify the interagency
placement committee and the department, in writing, of the county's
failure to remove the child from the group home program.
   (B) The group home provider shall make the notification required
by subparagraph (A) within five days of the expiration of the 30-day
removal period. If notification is made, a group home provider shall
not be subject to an overpayment determination due to failure of the
county placing agency to remove the child.
   (3) Any county placing agency that fails to remove a child from a
group home program under this paragraph within 30 days from the date
of the notice from the interagency placement committee shall be
assessed a penalty in the amount of the state and federal financial
participation in the AFDC-FC rate paid on behalf of the child
commencing on the 31st day and continuing until the child is removed.
   (g) (1) If any RCL 13 or RCL 14 group home provider discovers that
it does not have written approval for placement of any AFDC-FC
funded child placed on or after December 15, 1992, from the
interagency placement committee, it shall notify the county placing
agency, in writing, and shall request the county to obtain approval
from the interagency placement committee or remove the child from the
group home program. A group home provider shall have 30 days from
the child's first day of placement to discover the placement error
and to notify the county placing agency.
   (2) Any county placing agency that receives notification pursuant
to paragraph (2) of subdivision (f) shall obtain approval for
placement from the interagency placement committee or remove the
child from the group home program within 30 days from the date of the
notice from the group home provider. The program shall not be
reclassified to a lower RCL for a violation of the provisions
referred to in this paragraph.
   (3) (A) If a county placing agency does not have the placement of
a child approved by the interagency placement committee or removed
from the group home within 30 days from the date of the notice from
the group home provider, the group home provider shall notify the
county placing agency and the department, in writing, of the county's
failure to have the placement of the child approved or remove the
child from the group home program.
   (B) The group home provider shall make the notification required
by subparagraph (A) within five days after the expiration of the
30-day approval or removal period. If notification is made, a group
home provider shall not be subject to an overpayment determination
due to failure of the county placing agency to remove the child.
   (C) Any group home provider that fails to notify the county
placing agency pursuant to subparagraph (A) shall be assessed a
penalty in the amount of the AFDC-FC rate paid to the group home
provider on behalf of the child commencing on the 31st day of
placement and continuing until the county placing agency is notified.
   (4) Any county placing agency that fails to have the placement of
a child approved or to have the child removed from the group home
program within 30 days shall be assessed a penalty in the amount of
the state and federal financial participation in the AFDC-FC rate
paid on behalf of the child commencing on the 31st day of placement
and continuing until the child is removed.
   (h) The department shall develop regulations to obtain payment of
assessed penalties as provided in this section. For audit purposes
and the application of penalties for RCL 13 and RCL 14 programs, the
department shall apply statutory provisions that were in effect
during the period for which the audit was conducted.
   (i) (1) Nothing in this subparagraph shall prohibit a group home
classified at RCL 13 or RCL 14 for purposes of the AFDC-FC program,
from accepting private placements of children.
   (2) In cases where a referral is not from a public agency and no
public funding is involved, there shall be no requirement for public
agency review or determination of need.
   (3) Children subject to paragraphs (1) and (2) shall have been
assessed as seriously emotionally disturbed, as defined in Section
5600.3 and subject to Section 1502.4 of the Health and Safety Code,
by a licensed mental health professional, as defined in Sections 629
to 633, inclusive, of Title 9 of the California Code of Regulations.
   (j) A child shall not be placed in a group home program classified
at an RCL 13 or RCL 14 if the placement is paid for with county-only
funds unless the child is assessed as seriously emotionally
disturbed, as defined in Section 5600.3, subject to Section 1502.4 of
the Health and Safety Code, by a licensed mental health
professional, as defined in Sections 629 to 633, inclusive, of Title
9 of the California Code of Regulations.

11462.02.  Notwithstanding paragraph (2) of subdivision (a) of
Section 11462, a foster care provider licensed as a group home may
also have a rate established if the group home is operated by the
County of San Mateo, as provided by subdivision (h) of Section 11400.

11462.03.  (a)  Notwithstanding subdivision (c) of Section 11462,
the data obtained by the department pursuant to that subdivision
using 1985 calendar year costs shall be updated and revised by
January 1, 1994. The department may use unaudited cost data submitted
by group home providers and shall submit its best estimate of what
the costs would have been had fiscal audits been completed.
   (b) When the department updates the 1985 calendar year costs using
unaudited cost information submitted by group home providers, the
department shall adjust costs by applying offsets and reasonableness
adjustments to the unaudited cost data. The department shall report
both adjusted and unadjusted cost data pursuant to this section and
subdivision (c) of Section 11462.

11462.05.  By October 1, 1995, the department shall review and
recommend to the appropriate policy and fiscal committees of the
Legislature, a new or revised ratesetting system for facilities
receiving reimbursement under Sections 11462 and 11462.01. The
department shall conduct this review and develop recommendations with
the advice and assistance of county placement agencies, group home
provider associations, and other individuals and organizations as
designated by the director. The recommendations shall be based on the
department's review and evaluation of the current program
classification system, group home actual cost data, and information
from the group home program statements and level of care assessments
specified in Section 11467.

11462.06.  (a) For purposes of the administration of this article,
including the setting of group home rates, the department shall deem
the reasonable costs of leases for shelter care for foster children
to be allowable costs. Reimbursement of shelter costs shall not
exceed 12 percent of the fair market value of owned, leased, or
rented buildings, including any structures, improvements, edifices,
land, grounds, and other similar property that is owned, leased, or
rented by the group home and that is used for group home programs and
activities, exclusive of idle capacity and capacity used for
nongroup home programs and activities. Shelter costs shall be
considered reasonable in relation to the fair market value limit as
described in subdivision (b).
   (b) For purposes of this section, fair market value of leased
property shall be determined by either of the following methods, as
chosen by the provider:
   (1) The market value shown on the last tax bill for the cost
reporting period.
   (2) The market value determined by an independent appraisal. The
appraisal shall be performed by a qualified, professional appraiser
who, at a minimum, meets standards for appraisers as specified in
Chapter 6.5 (commencing with Section 3500) of Title 10 of the
California Code of Regulations. The appraisal shall not be deemed
independent if performed under a less-than-arms-length agreement, or
if performed by a person or persons employed by, or under contract
with, the group home for purposes other than performing appraisals,
or by a person having a material interest in any group home which
receives foster care payments. If the department believes an
appraisal does not meet these standards, the department shall give
its reasons in writing to the provider and provide an opportunity for
appeal.
   (c) (1) The department may adopt emergency regulations in order to
implement this section, in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (2) The adoption of emergency regulations pursuant to this section
shall be deemed to be an emergency and considered by the Office of
Administrative Law as necessary for the immediate preservation of the
public peace, health and safety, or general welfare.
   (3) Emergency regulations adopted pursuant to this section shall
be exempt from the review and approval of the Office of
Administrative Law.
   (4) The emergency regulations authorized by this section shall be
submitted to the Office of Administrative Law for filing with the
Secretary of State and publication in the California Code of
Regulations.
   (d) (1) Commencing July 1, 2003, any group home provider with a
self-dealing lease transaction for shelter costs, as defined in
Section 5233 of the Corporations Code, shall not be eligible for an
AFDC-FC rate.
   (2) Notwithstanding paragraph (1), providers that received an
approval letter for a self-dealing lease transaction for shelter
costs during the 2002-03 fiscal year from the Charitable Trust
Section of the Department of Justice shall be eligible to continue to
receive an AFDC-FC rate until the date that the lease expires, or is
modified, extended, or terminated, whichever occurs first. These
providers shall be ineligible to receive an AFDC-FC rate after that
date if they have entered into any self-dealing lease transactions
for group home shelter costs.

11462.07.  Notwithstanding subdivision (h) of Section 11462, for the
1999-2000 fiscal year, a group home program that received an AFDC-FC
rate for the 1998-99 fiscal year at or above the standard rate for
its RCL for that fiscal year shall have its rate increased by the
same percentages and on the same effective dates as provided for in
subparagraphs (A) and (B) of paragraph (1) of subdivision (g) of
Section 11462.

11462.1.  (a) No later than February 1, 1997, the department shall
establish a proposal for a basic rate for the care and supervision of
children subject to Section 300 or Section 602 who are placed in
out-of-home care facilities, regardless of the type of placement. In
addition, the proposal shall include a rate structure with
incremental rates for various service components provided to children
subject to Section 300 or Section 602 who are placed in out-of-home
care to facilitate the provision of those services according to the
individual needs of each child.
   (b) The rate structure proposed pursuant to subdivision (a) shall,
in the aggregate, cost no more than the aggregate cost of the rate
structure in effect on January 1, 1997.
   (c) The department, in developing the rate structure proposal
required by this section, shall seek and consider the advice and
participation of county welfare and probation departments, group home
providers, foster family agencies, group home associations, the
Foster Parent Association, representatives of the Legislature, and
other interested parties.
   (d) The department shall provide the proposal to the chairs of the
appropriate policy committees and fiscal committees in the Senate
and the Assembly by February 1, 1997. Any change to the current rate
system proposed by the department pursuant to this section shall
require statutory authorization.

11462.2.  (a) Notwithstanding Section 11462, when the director
determines that a rate established pursuant to that section for a
multistate group home facility which operates in more than two states
and which provides high impact adventure programs and which first
offered these programs in the State of Arizona, is less than the
established national rate for the multistate group home facility, and
when the director determines that the multistate group home facility
is otherwise licensed but would not be available due to the
operation of Section 11462, the director may at his or her discretion
establish a rate comparable to the rate paid in other states.
   (b) When the director establishes a rate pursuant to this section,
the facility shall be subject to audits by the department, or other
public or private audit agency with which the department contracts,
no less often than every three years.

11462.4.  Notwithstanding Section 11342.610 of the Government Code,
group homes and foster family agencies shall be deemed small
businesses and the department shall project the impact on group homes
and foster family agencies of any new regulations which will affect
those community care facilities.

11462.61.  (a) For audits performed prior to June 30, 1988, on group
homes which received funds on behalf of children receiving
assistance under the AFDC-FC program, the department shall not offset
or adjust current payments made pursuant to Section 11462 unless the
department determines both the following facts exist:
   (1) The proposed adjusted allowable costs, as defined in paragraph
(1) of subdivision (b) of Section 11462, per child per month, for
the current year are less than the current paid rate.
   (2) The same facts or conditions exist in the current year which
resulted in the audit adjustment, for each of the audit adjustments,
during the year which was the subject of the prior audit.
   (b) The department is not required to perform a field audit to
make the determination specified in paragraphs (1) and (2) of
subdivision (a).
   (c) Nothing in this section restricts or limits the department's
authority to recover a final audit overpayment for any year which was
the subject of an audit.

11462.7.  (a) To the extent federal financial participation is
available, the department shall set a foster care rate for crisis
nurseries, as defined in Section 1516 of the Health and Safety Code
and subdivision (t) of Section 11400.
   (b) The rate structure required to implement this section shall be
adopted as emergency regulations in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The adoption of these regulations shall be
deemed an emergency and necessary for the immediate preservation of
the public peace, health and safety, or general welfare.
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, emergency
regulations adopted to implement this section shall not be subject to
the review and approval of the Office of Administrative Law. These
regulations shall become effective immediately upon filing with the
Secretary of State.
   (c) Until the department adopts emergency regulations for
establishing a rate for crisis nurseries, the rates shall be
established using the foster care ratesetting system for group homes
and subject to all of the requirements of Article 6 (commencing with
Section 11450) of Chapter 2 of Part 3 of Division 9.
   (d) Volunteers shall not be included in staff-to-child ratios used
in the rate level determination.
   (e) This section shall remain in effect only until July 1, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2011, deletes or extends that date.

11463.  (a) (1) The department, with the advice, assistance, and
cooperation of the counties and foster care providers, shall develop,
implement, and maintain a ratesetting system for foster family
agencies.
   (2) No county shall be reimbursed for any percentage increases in
payments, made on behalf of AFDC-FC funded children who are placed
with foster family agencies, that exceed the percentage
cost-of-living increase provided in any fiscal year beginning on
January 1, 1990, as specified in subdivision (c) of Section 11461.
   (b) The department shall develop regulations specifying the
purposes, types, and services of foster family agencies, including
the use of those agencies for the provision of emergency shelter
care. A distinction, for ratesetting purposes, shall be drawn between
foster family agencies that provide treatment of children in foster
families and those that provide nontreatment services.
   (c) The department shall develop and maintain regulations
specifying the procedure for the appeal of department decisions about
the setting of an agency's rate.
   (d) On and after July 1, 1998, the schedule of rates, and the
components used in the rate calculations specified in the department'
s regulations, for foster family agencies shall be increased by 6
percent, rounded to the nearest dollar. The resultant amounts shall
constitute the new schedule of rates for foster family agencies.
   (e) (1) On and after July 1, 1999, the schedule of rates and the
components used in the rate calculations specified in the department'
s regulations for foster family agencies shall be adjusted by an
amount equal to the California Necessities Index computed pursuant to
Section 11453, rounded to the nearest dollar, subject to the
availability of funds. The resultant amounts shall constitute the new
schedule of rates for foster family agencies, subject to further
adjustment pursuant to paragraph (2).
   (2) In addition to the adjustment specified in paragraph (1),
commencing January 1, 2000, the schedule of rates and the components
used in the rate calculations specified in the department's
regulations for foster family agencies shall be increased by 2.36
percent, rounded to the nearest dollar. The resultant amounts shall
constitute the new schedule of rates for foster family agencies.
   (f) For the 1999-2000 fiscal year, foster family agency rates that
are not determined by the schedule of rates set forth in the
department's regulations, shall be increased by the same percentage
as provided in subdivision (e).
   (g) For the 2000-01 fiscal year and each fiscal year thereafter,
without a county share of cost, notwithstanding subdivision (c) of
Section 15200, the foster family agency rate shall be supplemented by
one hundred dollars ($100) for clothing per year per child in care,
subject to the availability of funds. The supplemental payment shall
be used to supplement, and shall not be used to supplant, any
clothing allowance paid in addition to the foster family agency rate.
   (h) In addition to the adjustment made pursuant to subdivision
(e), the component for social work activities in the rate calculation
specified in the department's regulations for foster family agencies
shall be increased by 10 percent, effective January 1, 2001. This
additional funding shall be used by foster family agencies solely to
supplement staffing, salaries, wages, and benefit levels of staff
performing social work activities. The schedule of rates shall be
recomputed using the adjusted amount for social work activities. The
resultant amounts shall constitute the new schedule of rates for
foster family agencies. The department may require a foster family
agency receiving this additional funding to certify that the funding
was utilized in accordance with the provisions of this section.
   (i) The increased rate provided by subparagraph (C) of paragraph
(1) of subdivision (d) of Section 11461 shall not be used to compute
the monthly amount that may be paid to licensed foster family
agencies for the placement of children in certified foster homes.
   (j) The total foster family agency rate by age group in effect as
of January 1, 2008, paid to licensed foster family agencies for the
placement of children in certified foster family homes, shall be
reduced by 10 percent, effective October 1, 2009. The foster family
agency shall have flexibility in applying the reduction, however, no
more than 10 percent shall be deducted from the child base and
increment, as defined in departmental regulations.
   (k) Effective October 1, 2009, the total foster family agency rate
by age group, in effect for those agency rates that are not
determined by the schedule of rates set forth in the department's
regulations, shall be reduced by the same percentage and in the same
manner as provided for in subdivision (j).
   (l) (1) The department shall determine, consistent with the
requirements of this section and other relevant requirements under
law, the rate category for each foster family agency on a biennial
basis. Submission of the biennial rate application shall be according
to a schedule determined by the department.
   (2) The department shall adopt regulations to implement this
subdivision. The adoption, amendment, repeal, or readoption of a
regulation authorized by this subdivision is deemed to be necessary
for the immediate preservation of the public peace, health and
safety, or general welfare, for purposes of Sections 11346.1 and
11349.6 of the Government Code, and the department is hereby exempted
from the requirement to describe specific facts showing the need for
immediate action.

11463.5.  (a) The department may perform or have performed audits on
all foster family agencies which have received funds on behalf of
children receiving assistance under the AFDC-FC program.
   (b) The department shall develop and maintain a system for the
recovery of overpayments. The department shall seek recovery of
unauthorized funds but it shall attempt to do so in a manner which
does not jeopardize overall availability of placements for foster
children. Nothing in this subdivision shall preclude the department
from revoking the license of, or initiating legal procedures against,
a foster family agency which violates relevant laws and regulations.
   (c) The department shall provide exit interviews with providers
wherein deficiencies found are explained and the opportunity exists
for foster family agencies to respond.
   (d) The department shall develop and maintain regulations
specifying the procedure for the appeal of audit findings.

11464.  (a) The Legislature finds and declares all of the following:
   (1) Children who are consumers of regional center services and
also receiving Aid to Families with Dependent Children-Foster Care
(AFDC-FC) or Adoption Assistance Program (AAP) benefits have special
needs that can require care and supervision beyond that typically
provided to children in foster care. Clarifying the roles of the
child welfare and developmental disabilities services systems will
ensure that these children receive the services and support they need
in a timely manner and encourage the successful adoption of these
children, where appropriate.
   (2) To address the extraordinary care and supervision needs of
children who are consumers of regional center services and also
receiving AFDC-FC or AAP benefits, it is necessary to provide a rate
for care and supervision of these children that is higher than the
average rate they would otherwise receive through the foster care
system and higher than the rate other children with medical and other
significant special needs receive.
   (3) Despite the enhanced rate provided in this section, some
children who are consumers of regional center services and also
receiving AFDC-FC or AAP benefits may have care and supervision needs
that are so extraordinary that they cannot be addressed within that
rate. In these limited circumstances, a process should be established
whereby a supplement may be provided in addition to the enhanced
rate.
   (4) Children who receive rates pursuant to this section shall be
afforded the same due process rights as all children who apply for
AFDC-FC and AAP benefits pursuant to Section 10950.
   (b) Rates for children who are both regional center consumers and
recipients of AFDC-FC benefits under this chapter shall be determined
as provided in Section 4684 and this section.
   (c) (1) The rate to be paid for 24-hour out-of-home care and
supervision provided to children who are both consumers of regional
center services pursuant to subdivision (d) of Section 4512 and
recipients of AFDC-FC benefits under this chapter shall be two
thousand six dollars ($2,006) per child per month.
   (2) (A) The county, at its sole discretion, may authorize a
supplement of up to one thousand dollars ($1,000) to the rate for
children three years of age and older, if it determines the child has
the need for extraordinary care and supervision that cannot be met
within the rate established pursuant to paragraph (1). The State
Department of Social Services and the State Department of
Developmental Services, in consultation with stakeholders
representing county child welfare agencies, regional centers, and
children who are both consumers of regional center services and
recipients of AFDC-FC or AAP benefits, shall develop objective
criteria to be used by counties in determining eligibility for and
the level of the supplements provided pursuant to this paragraph. The
State Department of Social Services shall issue an all-county letter
to implement these criteria within 120 days of the effective date of
this act. The criteria shall take into account the extent to which
the child has any of the following:
   (i) Severe impairment in physical coordination and mobility.
   (ii) Severe deficits in self-help skills.
   (iii) Severely disruptive or self-injurious behavior.
   (iv) A severe medical condition.
   (B) The caregiver may request the supplement described in
subparagraph (A) directly or upon referral by a regional center.
Referral by a regional center shall not create the presumption of
eligibility for the supplement.
   (C) When assessing a request for the supplement, the county shall
seek information from the consumer's regional center to assist in the
assessment. The county shall issue a determination of eligibility
for the supplement within 90 days of receipt of the request. The
county shall report to the State Department of Social Services the
number and level of rate supplements issued pursuant to this
paragraph.
   (d) (1) The rate to be paid for 24-hour out-of-home care and
supervision provided for children who are receiving services under
the California Early Start Intervention Services Act, are not yet
determined by their regional center to have a developmental
disability, as defined in subdivisions (a) and (l) of Section 4512,
and are receiving AFDC-FC benefits under this chapter, shall be eight
hundred ninety-eight dollars ($898) per child per month. If a
regional center subsequently determines that the child is an
individual with a developmental disability as that term is defined by
subdivisions (a) and (l) of Section 4512, the rate to be paid from
the date of that determination shall be consistent with subdivision
(c).
   (2) The rates to be paid for 24-hour out-of-home nonmedical care
and supervision for children who are recipients of AFDC-FC and
consumers of regional center services from a community care facility
licensed pursuant to Chapter 3 (commencing with Section 1500) of
Division 2 of the Health and Safety Code and vendored by a regional
center pursuant to Section 56004 of Title 17 of the California Code
of Regulations, shall be the facility rate established by the State
Department of Developmental Services.
   (e) Rates paid pursuant to this section are subject to all of the
following requirements:
   (1) The rates paid to the foster care provider under subdivision
(c) and paragraph (1) of subdivision (d) are only for the care and
supervision of the child, as defined in subdivision (b) of Section
11460 and shall not be applicable to facilities described in
paragraph (2) of subdivision (d).
   (2) Regional centers shall separately purchase or secure the
services that are contained in the child's Individualized Family
Service Plan (IFSP) or Individual Program Plan (IPP), pursuant to
Section 4684.
   (3) In the event that the schedule of basic foster care rates, as
specified in Section 11461, is increased on or after July 1, 2008,
the rates in subdivisions (c), (d), and (f) shall be similarly
adjusted. No county shall be reimbursed for any increase in this rate
that exceeds the adjustments made in accordance with this
methodology.
   (f) (1) The AFDC-FC rates paid on behalf of a regional center
consumer who is a recipient of AFDC-FC prior to July 1, 2007, shall
remain in effect unless a change in the placement warrants
redetermination of the rate or if the child is no longer AFDC-FC
eligible. However, AFDC-FC rates paid on behalf of these children
that are lower than the rates specified in paragraph (1) of
subdivision (c) or paragraph (1) of subdivision (d), respectively,
shall be increased as appropriate to the amount set forth in
paragraph (1) of subdivision (c) or paragraph (1) of subdivision (d),
effective July 1, 2007, and shall remain in effect unless a change
in the placement or a change in AFDC-FC eligibility of the child
warrants redetermination of the rate.
   (2) For a child who is receiving AFDC-FC benefits or for whom a
foster care eligibility determination is pending, and for whom an
eligibility determination for regional center services pursuant to
subdivision (a) of Section 4512 is pending or approved, and for whom,
prior to July 1, 2007, a State Department of Developmental Services
facility rate determination request has been made and is pending, the
rate shall be the State Department of Developmental Services
facility rate determined by the regional center through an
individualized assessment, or the rate established in paragraph (1)
of subdivision (c), whichever is greater. The rate shall remain in
effect until the child is no longer eligible to receive AFDC-FC, or,
if still AFDC-FC eligible, is found ineligible for regional center
services as an individual described in subdivision (a) of Section
4512. Other than the circumstances described in this section,
regional centers shall not establish facility rates for AFDC-FC
purposes.
   (g) (1) The department shall adopt emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and for the
purposes of that chapter, including Section 11349.6 of the Government
Code, on or before July 1, 2009.
   (2)  The adoption of regulations pursuant to paragraph (1) shall
be deemed an emergency and necessary for the immediate preservation
of the public peace, health, safety, and general welfare. The
regulations authorized by this subdivision shall remain in effect for
no more than 180 days, by which time final regulations shall be
adopted.
   (h) (1) The State Department of Social Services and the State
Department of Developmental Services shall provide to the Joint
Legislative Budget Committee, on a semiannual basis, the data set
forth in paragraph (2) to facilitate Legislative review of the
outcomes of the changes made by the addition of this section and the
amendments made to Sections 4684 and 16121 by the act adding this
section. The first report shall be submitted on October 1, 2007, with
subsequent reports submitted on March 1 and October 1 of each year.
   (2) The following data shall be provided pursuant to this
subdivision:
   (A) The number of, and services provided to, children who are
consumers of regional center services and who are receiving AAP or
AFDC-FC, broken out by children receiving the amount pursuant to
paragraph (1) of subdivision (c), the amount pursuant to paragraph
(1) of subdivision (d), and the level of supplement pursuant to
subparagraph (A) of paragraph (2) of subdivision (c).
   (B) A comparison of services provided to these children and
similar children who are regional center consumers who do not receive
AFDC-FC or AAP benefits, broken out by children receiving the amount
pursuant to paragraph (1) of subdivision (c), the amount pursuant to
paragraph (1) of subdivision (d), and the level of supplement
pursuant to subparagraph (A) of paragraph (2) of subdivision (c).
   (C) The number and nature of appeals filed regarding services
provided or secured by regional centers for these children,
consistent with Section 4714, broken out by children receiving the
amount pursuant to paragraph (1) of subdivision (c), the amount
pursuant to paragraph (1) of subdivision (d), and the level of
supplement pursuant to subparagraph (A) of paragraph (2) of
subdivision (c).
   (D) The number of these children who are adopted before and after
the act adding this section, broken out by children receiving the
amount pursuant to paragraph (1) of subdivision (c), the amount
pursuant to paragraph (1) of subdivision (d), and the level of
supplement pursuant to subparagraph (A) of paragraph (2) of
subdivision (c).
   (E) The number and levels of supplements requested pursuant to
subparagraph (B) of paragraph (2) of subdivision (c).
   (F) The number of appeals requested of the decision by counties to
deny the request for the supplement pursuant to subparagraph (A) of
paragraph (2) of subdivision (c).
   (G) The total number and levels of supplements authorized pursuant
to subparagraph (A) of paragraph (2) of subdivision (c) and the
number of these supplements authorized upon appeal.

11465.  (a) When a child is living with a parent who receives
AFDC-FC or Kin-GAP benefits, the rate paid to the provider on behalf
of the parent shall include an amount for care and supervision of the
child.
   (b) For each category of eligible licensed community care
facility, as defined in Section 1502 of the Health and Safety Code,
the department shall adopt regulations setting forth a uniform rate
to cover the cost of care and supervision of the child in each
category of eligible licensed community care facility.
   (c) (1) On and after July 1, 1998, the uniform rate to cover the
cost of care and supervision of a child pursuant to this section
shall be increased by 6 percent, rounded to the nearest dollar. The
resultant amounts shall constitute the new uniform rate.
   (2) (A) On and after July 1, 1999, the uniform rate to cover the
cost of care and supervision of a child pursuant to this section
shall be adjusted by an amount equal to the California Necessities
Index computed pursuant to Section 11453, rounded to the nearest
dollar. The resultant amounts shall constitute the new uniform rate,
subject to further adjustment pursuant to subparagraph (B).
   (B) In addition to the adjustment specified in subparagraph (A),
on and after January 1, 2000, the uniform rate to cover the cost of
care and supervision of a child pursuant to this section shall be
increased by 2.36 percent, rounded to the nearest dollar. The
resultant amounts shall constitute the new uniform rate.
   (3) Subject to the availability of funds, for the 2000-01 fiscal
year and annually thereafter, these rates shall be adjusted for cost
of living pursuant to procedures in Section 11453.
   (4) On and after January 1, 2008, the uniform rate to cover the
cost of care and supervision of a child pursuant to this section
shall be increased by 5 percent, rounded to the nearest dollar. The
resulting amount shall constitute the new uniform rate.
   (d) (1) Notwithstanding subdivisions (a) to (c), inclusive, the
payment made pursuant to this section for care and supervision of a
child who is living with a teen parent in a whole family foster home,
as defined in Section 11400, shall equal the basic rate for children
placed in a licensed or approved home as specified in subdivisions
(a) to (d), inclusive, of Section 11461.
   (2) The amount paid for care and supervision of a dependent infant
living with a dependent teen parent receiving AFDC-FC benefits in a
group home placement shall equal the infant supplement rate for group
home placements.
   (3) The caregiver shall provide the county child welfare agency or
probation department with a copy of the shared responsibility plan
developed pursuant to Section 16501.25 and shall advise the county
child welfare agency or probation department of any subsequent
changes to the plan. Once the plan has been completed and provided to
the appropriate agencies, the payment made pursuant to this section
shall be increased by an additional two hundred dollars ($200) per
month to reflect the increased care and supervision while he or she
is placed in the whole family foster home.
   (4) In any year in which the payment provided pursuant to this
section is adjusted for the cost of living as provided in paragraph
(1) of subdivision (c), the payments provided for in this subdivision
shall also be increased by the same procedures.
   (5) A Kin-GAP relative who, immediately prior to entering the
Kin-GAP program, was designated as a whole family foster home shall
receive the same payment amounts for the care and supervision of a
child who is living with a teen parent they received in foster care
as a whole family foster home.

11465.5.  (a) The department shall conduct five-year pilot projects
in Alameda County, Contra Costa County, Sacramento County, Solano
County, Tulare County, and Yuba County, at the option of each county,
and any additional counties that submit a plan and secure approval
by the department in accordance with objective selection criteria
that shall be established by the department and any evaluation
contractor utilized under subdivision (e). The department shall not
be required to conduct any pilot projects under this section if no
county elects to participate.
   (b) The Legislature finds and declares that this program will
enhance family preservation and stability by recognizing that many
children are in long-term, stable placements with relatives, that
these placements are the permanent plan for the child, that
dependencies can be dismissed pursuant to Section 388 with custody or
guardianship to the relative caretaker, and that there is no need
for continued government intervention in the family life through
ongoing, scheduled court and social services supervision of the
placement.
   (c) Participation by a relative in a pilot project shall be
voluntary, and the county shall nominate cases for participation. The
county and a relative shall execute a long-term kinship care
agreement, to be developed by the department, which specifies the
details of this arrangement.
   (d) Each pilot project shall, at a minimum, ensure all of the
following:
   (1) Only a child who is a dependent of the court, who has been in
a stable placement with a relative for not less than one year after
the initial permanency planning hearing placing the child with that
relative, and who is receiving federal AFDC-FC payments shall be
eligible under this section.
   (2) Each participating child's AFDC-FC and Medi-Cal eligibility is
maintained, in order to adequately support the long-term placement.
   (3) A child participating in a pilot project shall continue to
receive the basic foster care payment rate in accordance with Section
11461.
   (4) The eligible cases shall be dismissed pursuant to Section 388,
with custody or guardianship to be given to the relative caretaker.
   (5) A relative shall have adequate legal protection and consent
authority.
   (e) The department and the pilot counties, or an entity
contracting with the department and the pilot counties, shall conduct
an evaluation of the pilot projects. The evaluation shall include
outcome measures that address the quality of care provided to
participating children and the overall cost-effectiveness of the
projects for participating counties and the state. The pilot project
shall be deemed a success if at least 75 percent of the children
participating achieve permanent placement through either adoption by
a relative or legal guardianship by a relative. The results of the
evaluation shall be provided to the Legislature and the Governor
three years after the date of implementation of the pilot projects.
   (f) Any savings that accrue to the department as a result of this
section shall revert to the General Fund. Savings that accrue to a
participating county shall, however, accrue to that county's social
services subaccount in its local health and welfare trust fund.
   (g) This section shall become operative only if the director
executes a declaration, that shall be retained by the director,
stating that the necessary federal approval for implementation of
this section has been obtained, and only for the duration of that
approval.

11465.6.  (a) Up to five counties selected by the department, and at
the discretion of the counties, may implement a countywide program
for licensed family homes and relative caregivers receiving payments
under this chapter under which they may receive reimbursement for the
cost of licensed child care for each foster child under 13 years of
age in the care of the licensed family home or the relative
caregiver, during any period that any of the following apply:
   (1) The foster parent or relative caregiver is working outside the
home.
   (2) The foster parent or relative caregiver is participating in
foster care training.
   (3) The foster parent or relative caregiver is fulfilling
necessary foster care-related administrative duties, such as
conferences and judicial reviews that are not ordinarily parental
duties.
   (b) A foster family home shall only receive a reimbursement for
child care that is provided by a licensed provider and if an
agreement has been documented in the child's case plan.
   (c) The cost for reimbursements authorized by this section shall
be shared equally between the state and the county. Funds
appropriated pursuant to Chapter 6 (commencing with Section 17600) of
Part 5 shall not be used to meet the county match requirement under
this section.
   (d) The department shall, in consultation with participating
counties, establish rates of child care reimbursement under this
section.
   (e) Of the five counties to be selected, the department shall
select, at minimum, one large county, one medium county, and one
small county, based on population size if a county from each category
submits a written expression of its desire to participate. In
addition, the department shall give priority to any county that meets
both of the following criteria:
   (1) The county has experienced a net loss in the total number of
licensed foster family homes.
   (2) The county has demonstrated a deficit in the number of
licensed foster family beds for the county's population of foster
children requiring out-of-home placement.
   (f) Each participating county shall report to the department on an
annual basis. The information to be reported to the department shall
be determined by the department in consultation with the County
Welfare Director's Association. At a minimum, the annual report shall
include the number of foster parents claiming a child care
reimbursement, the number of children served under this section, and
an analysis of the impact of the child care reimbursement on the
recruitment and retention of licensed foster home providers. The
department shall provide the appropriate policy and fiscal committees
of the Legislature with a report of the use of child care pursuant
to this section on or before June 30, 2003.
   (g) The department may issue emergency regulations for the purpose
of implementing this section.

11466.1.  (a) (1) The department shall adopt regulations that shall
specify the type of information requested from group homes, including
reasonable timeframes. All group home providers shall upon request
of the department for any records, or for any information contained
in records pertaining to an individual group home program, make the
requested records or information available to the department for
inspection or copying. The information required to be made available
pursuant to this section shall include, but not be limited to,
information necessary to establish a rate, collect group home
provider sustained overpayments in a timely and efficient manner, or
to perform a fiscal or program audit. This section shall not be
construed to modify applicable rules of confidentiality.
   (2) Group home providers, upon request of the department, shall
allow timely access to a group home provider's records and facilities
in order to conduct a fiscal or program audit.
   (3) Group home providers shall allow the department immediate
access to group home program information or access to a facility if
the deputy director of the children and family services division of
the department serves the group home provider with notice that, in
the opinion of the deputy director, the immediate access to a
facility or group home program information is required based on one
of the following conditions or circumstances:
   (A) A temporary suspension order has been served on a group home
provider.
   (B) Based on reliable evidence, the department has a valid basis
for believing that proceedings have been, or will shortly be,
instituted against a group home provider in a state or federal court
for purposes of determining whether the provider is insolvent or
bankrupt under appropriate state or federal law.
   (C) A group home provider is, or will shortly be taking, action
that might reasonably hinder or defeat the department's ability to
collect overpayments in the future.
   (4) The department shall adopt regulations that specify timeframes
and penalties for failure to submit requested information or allow
facility access that may include reduction or termination of the
AFDC-FC rate. Penalties shall not be imposed until the group home has
been given a reasonable opportunity to respond or provide access.
   (b) The department shall apply and enforce only those statutes and
regulations that are made available to group home providers, in
writing, for any period for which a rate is effective.
   (c) The department shall consult with representatives of group
home providers concerning the development of those standards and the
modification of existing standards. Group home providers shall
receive written notice of, and have the opportunity to comment upon,
new and modified standards proposed by the department.
   (d) The department shall make available to group home providers,
in writing, any new or modified standards prior to the beginning of
the period upon which a rate is calculated, if possible, or as
quickly as it is administratively practical to do so. Notwithstanding
subdivisions (b) and (c), in the event of an unanticipated
circumstance or unusual expenditure, the department may exercise its
discretion in interpreting what is an allowable or a reasonable
expenditure. However, the department shall make those interpretations
available to group home providers, in writing, as quickly as it is
practical to do so.

11466.2.  (a) (1) The department shall perform or have performed
group home program and fiscal audits as needed. Group home programs
shall maintain all child-specific, programmatic, personnel, fiscal,
and other information affecting group home ratesetting and AFDC-FC
payments for a period not less than five years.
   (2) Notwithstanding paragraph (1), the department shall not
establish an overpayment based upon a nonprovisional program audit
conducted on less than a one-year audit period.
   (3) Notwithstanding paragraph (2), the department may conduct
audits covering a period of less than 12 months. Based upon the
findings of these audits, the department may reduce a group home
program's AFDC-FC rate or RCL pursuant to this paragraph.
   (A) In an audit of a period of less than 12 months, if a provider'
s audited RCL is no more than three levels below the paid RCL, the
provider's rate and RCL will be reduced to the audited RCL. The
provider will be allowed the opportunity to bring a program into
compliance with the paid RCL.
   (B) In an audit of a period of less than 12 months, if the
provider's audited RCL is more than three levels below the paid RCL,
the department shall conduct an audit as identified in paragraph (2)
of subdivision (a) of Section 11466.2. The provider will be allowed
the opportunity to bring a program into compliance with the paid RCL.
   (C) A group home provider may request a hearing of the department'
s RCL determination under subparagraph (A) no later than 30 days
after the date the department issues its RCL determination. The
department's RCL determination shall be final if the group home
provider does not request a hearing within the prescribed time.
Within 60 days of receipt of the request for hearing, the department
shall conduct a hearing on the RCL determination. The standard of
proof shall be the preponderance of the evidence and the burden of
proof shall be on the department. The hearing officer shall issue the
proposed decision within 45 days of the close of the evidentiary
record. The director shall adopt, reject, or modify the proposed
decision, or refer the matter back to the hearing officer for
additional evidence or findings within 100 days of issuance of the
proposed decision. If the director takes no action on the proposed
decision within the prescribed time, the proposed decision shall take
effect by operation of law.
   (b) (1) The department shall develop regulations to correct a
group home program's RCL, and to adjust the rate and to recover any
overpayments resulting from an overstatement of the projected level
of care and services.
   (2) The department shall modify the amount of the overpayment
pursuant to paragraph (1) in cases where the level of care and
services provided per child in placement equals or exceeds the level
associated with the program's RCL. In making this modification, the
department shall determine whether services other than child care
supervision were provided to children in placement in an amount that
is at least proportionate, on a per child basis, to the amount
projected in the group home's rate application. In cases where these
services are provided in less than a proportionate amount, staffing
for child care supervision in excess of its proportionate share shall
not be substituted for nonchild care supervision staff hours.
   (c) (1) In any audit conducted by the department, the department,
or other public or private audit agency with which the department
contracts, shall coordinate with the department's licensing and
ratesetting entities so that a consistent set of standards, rules,
and auditing protocols are maintained. The department, or other
public or private audit agency with which the department contracts,
shall make available to all group home providers, in writing, any
standards, rules, and auditing protocols to be used in those audits.
   (2) The department shall provide exit interviews with providers
whenever deficiencies found are explained and the opportunity exists
for providers to respond. The department shall adopt regulations
specifying the procedure for the appeal of audit findings.

11466.21.  (a) In accordance with subdivision (b), as a condition to
receive an AFDC-FC rate for a group home program or a foster family
agency program that provides treatment services, the following shall
apply:
   (1) Any provider who receives in combined federal funds an amount
at or above the federal funding threshold in accordance with the
federal Single Audit Act, as amended, and Office of Management and
Budget (OMB) Circular A-133, shall arrange to have a financial audit
conducted on an annual basis, and shall submit the annual financial
audit to the department in accordance with regulations adopted by the
department.
   (2) Any provider who receives in combined federal funds an amount
below the federal funding threshold in accordance with the federal
Single Audit Act, as amended, and Office of Management and Budget
(OMB) Circular A-133, shall submit to the department a financial
audit on its most recent fiscal period at least once every three
years. The department shall provide timely notice to the providers of
the date that submission of the financial audit is required. That
date of submission of the financial audit shall be established in
accordance with regulations adopted by the department.
   (3) The scope of the financial audit shall include all of the
programs and activities operated by the provider and shall not be
limited to those funded in whole or in part by the AFDC-FC program.
The financial audits shall include, but not be limited to, an
evaluation of the accounting and control systems of the provider.
   (4) The provider shall have its financial audit conducted by
certified public accountants or by state-licensed public accountants
who have no direct or indirect relationship with the functions or
activities being audited, or with the provider, its board of
directors, officers, or staff.
   (5) The provider shall have its financial audits conducted in
accordance with Government Auditing Standards issued by the
Comptroller General of the United States and in compliance with
generally accepted accounting principles applicable to private
entities organized and operated on a nonprofit basis.
   (6) (A) Each provider shall have the flexibility to define the
calendar months included in its fiscal year.
   (B) A provider may change the definition of its fiscal year.
However, the financial audit conducted following the change shall
cover all of the months since the last audit, even though this may
cover a period that exceeds 12 months.
   (b) (1) In accordance with subdivision (a), as a condition to
receive an AFDC-FC rate that becomes effective on or after July 1,
2000, a provider shall submit a copy of its most recent financial
audit report, except as provided in paragraph (3).
   (2) The department shall terminate the rate of a provider who
fails to submit a copy of its most recent financial audit pursuant to
subdivision (a). A terminated rate shall only be reinstated upon the
provider's submission of an acceptable financial audit.
   (3) Effective July 1, 2000, a new provider that has been
incorporated for fewer than 12 calendar months shall not be required
to submit a copy of a financial audit to receive an AFDC-FC rate for
a new program. The financial audit shall be conducted on the provider'
s next full fiscal year of operation. The provider shall submit the
financial audit to the department in accordance with subdivision (a).
   (c) The department shall implement this section through the
adoption of emergency regulations.

11466.22.  (a) It is the intent of the Legislature to ensure overall
program integrity in the AFDC-FC program through the establishment
of an effective and efficient process for the collection of group
home provider sustained overpayments. Furthermore, the intent of the
Legislature is to ensure that children placed in an AFDC-FC group
home program receive the level of care and supervision commensurate
with the group home program's rate classification level.
   (b) For the purposes of this section, a group home provider is a
licensee of one or more group homes, as defined in subdivision (h) of
Section 11400, receiving foster care maintenance payments under the
AFDC-FC program. The department may collect a sustained overpayment
from the party responsible for the sustained overpayment, regardless
of whether the party remains in the business of providing group home
programs, and regardless of whether the party remains licensed by the
department.
   (c) For the purposes of this section, a group home provider
overpayment is an overpayment that results in an audit period when a
group home provider receives a rate reimbursement to which it is not
entitled. If a group home provider receives a rate reimbursement to
which it is not entitled, it shall be liable to repay the
overpayment.
   (d) (1) Overpayments shall be determined by either a group home
provider audit or a group home provider self-reporting an
overpayment.
   (2) If an informal hearing is not requested, or on the 60th day
after an informal decision if a provider or the department does not
file a notice of intent to file a formal appeal, or on the 30th day
following a formal appeal hearing decision, whichever is latest, a
group home provider overpayment shall be sustained for collection
purposes and the department shall issue a demand letter for repayment
of the sustained overpayment.
   (3) The department shall establish a voluntary repayment agreement
procedure with a maximum repayment period of nine years. The
procedure shall take into account the amount of the overpayment,
projected annual income of the program that caused the overpayment, a
minimum repayment amount, including principal and interest, of 3
percent of annual income prorated on a monthly basis, simple interest
for the first seven years of the voluntary repayment agreement on
the overpayment amount based on the Surplus Money Investment Fund,
and simple interest for the eighth and ninth years of the voluntary
repayment agreement based on the prime rate at that time plus 3
percent. The department may adopt regulations permitting the
director, at his or her discretion, to renegotiate the volunteer
repayment agreement if the director determines that the agreement
would cause severe harm to children in placement.
   (4) The department shall establish an involuntary overpayment
collection procedure, that shall take into account the amount of the
overpayment, projected annual income, a minimum required repayment
amount, including principal and interest, of 5 percent of the annual
income prorated on a monthly basis, simple interest on the
overpayment amount based on the Surplus Money Investment Fund, and a
maximum repayment period of seven years. The department may establish
regulations permitting the director at his or her discretion to
renegotiate the involuntary payment agreement if the director
determines that the agreement would cause severe harm to children in
placement.
   (e) The department shall develop regulations for recovery of any
group home provider sustained overpayments. The regulations shall
prioritize collection methods, that shall include voluntary repayment
agreement procedures, involuntary overpayment collection procedures,
including the use of a statutory lien, rate request denials, rate
decreases without an RCL reduction, and rate terminations.
   (f) Whenever the department determines that a group home provider
sustained overpayment has occurred, the department shall recover from
the group home provider the full amount of the sustained
overpayment, and simple interest on the sustained overpayment amount,
pursuant to methods described in subdivision (e), against the group
home provider's income or assets.
   (g) If a provider is successful in its appeal of a collected
overpayment, it shall be repaid the collected overpayment plus simple
interest based on the Surplus Money Investment Fund.

11466.23.  (a) It is the intent of the Legislature to comply with
the federal requirements of the Improper Payments Act of 2002 with
respect to the remittance of the federal share of foster care
overpayments.
   (b) For the purposes of this section, a federal foster care or
adoption assistance overpayment is defined as any amount of aid paid
to which a foster care provider or adoption assistance recipient was
not entitled, including any overpayment identified by a foster care
provider as described in Section 11400, or federal Adoption
Assistance Program recipient as described in Chapter 2.1 (commencing
with Section 16115) of Part 4.
   (c) Counties shall be required to remit the appropriate amount of
federal funds upon identification of the overpayment, following the
completion of due process.
   (1) Counties shall not be required to repay the overpayment when
any of the following occurs:
   (A) The amount is legally uncollectible, including any amount
legally uncollectible pursuant to Section 11466.24.
   (B) The cost of collection exceeds the overpayment.
   (C) The foster family agency or group home is no longer in
business or licensed by the department.
   (2) Remittance of overpayments of federal AFDC-FC funds and
federal AAP funds not excluded by paragraph (1) shall be shared by
the state and the counties based on a 40 percent state, 60 percent
county sharing ratio. Upon actual collection of any overpayments from
providers or recipients, the county shall ensure that the total
amount reimbursed to the state reflects the federal and state share
of the overpayment costs, as specified. All overpayments of federal
AFDC-FC funds and federal AAP funds included in paragraph (1) shall
be repaid completely with state funds.
   (3) Nothing in this section shall inhibit existing county
authority to collect overpayments.
   (4) Nothing in this section shall inhibit existing county
responsibility to remit voluntary overpayments upon collection.
   (d) (1) The department shall adopt regulations to implement this
section by December 31, 2008. Notwithstanding Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, the department, in consultation and coordination
with the County Welfare Directors Association, may adopt emergency
regulations to implement this section.
   (2) The adoption of emergency regulations pursuant to subdivision
(a) shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health, safety, or
general welfare. The emergency regulations authorized by this section
shall be submitted to the Office of Administrative Law for filing
with the Secretary of State and shall remain in effect for no more
than 180 days, by which time final regulations shall be adopted.
   (e) The department may only require counties to remit payment of
the federal share for overpayments upon identification that occur on
or after the effective date of regulations adopted pursuant to this
section.

11466.235.  (a) The department, in consultation and coordination
with the County Welfare Directors Association (CWDA), shall update
existing regulations and establish new regulations where lacking for
the identification, determination, tracking, notification, and
collection of foster care and adoption assistance overpayments by
county agencies to foster care providers or adoption assistance
recipients, and shall specify the required actions of county
agencies, as appropriate, to recoup overpayments. In addition, the
department, in consultation with the CWDA, shall develop specific
processes to implement collection and repayment of overpaid federal
AFDC-FC funds, including the development of a Notice of Action (NOA),
due process procedures, voluntary repayment procedures, involuntary
repayment procedures, and the accrual of interest. It is the intent
of the Legislature that the recovery of unauthorized funds is done in
a manner that does not jeopardize overall availability of placements
for foster or adoptive children or the best interests of the foster
or adoptive child.
   (b) (1) No later than October 1, 2007, the department shall
implement a process to obtain all necessary state approvals of
advanced planning documents for counties to implement automated
solutions designed to minimize overpayments, and to submit the
documents to the appropriate federal authority within 30 days of
original submission by the county to the state. The process shall
include a template to be used by counties for expedited state and
federal approval of advanced planning documents designed to minimize
overpayments.
   (2) No later than December 31, 2007, the department shall
implement a process for counties to obtain, at no charge, all
necessary data from the Child Welfare Services Case Management System
(CWS/CMS) to implement automated solutions designed to minimize
overpayments, such as the system used by Alameda County, or a similar
solution. The department shall notify the budget committees of the
Legislature and the CWDA by October 1, 2007, if the department
believes that the extract of this data could jeopardize the
structural and data integrity of the information within the CWS/CMS.
The department shall work with CWDA to mitigate these risks, if
found.
   (c) (1) The department shall modify existing regulations and adopt
new regulations to implement this section by December 31, 2008.
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, the department, in
consultation with the CWDA, may adopt emergency regulations to
implement this section.
   (2) The adoption of emergency regulations pursuant to paragraph
(1) shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health, safety, or
general welfare. The emergency regulations authorized by this section
shall be submitted to the Office of Administrative Law for filing
with the Secretary of State and shall remain in effect for no more
than 180 days, by which time final regulations shall be adopted.

11466.24.  (a) In accordance with this section, a county shall
collect an overpayment, discovered on or after January 1, 1999, made
to a foster family home, an approved home of a relative, an approved
home of a nonrelative extended family member, or an approved home of
a nonrelative legal guardian, for any period of time in which the
foster child was not cared for in that home, unless any of the
following conditions exist, in which case a county shall not collect
the overpayment:
   (1) The cost of the collection exceeds that amount of the
overpayment that is likely to be recovered by the county. The cost of
collecting the overpayment and the likelihood of collection shall be
documented by the county. Costs that the county shall consider when
determining the cost-effectiveness to collect are total
administrative, personnel, legal filing fee, and investigative costs,
and any other applicable costs.
   (2) The child was temporarily removed from the home and payment
was owed to the provider to maintain the child's placement, or the
child was temporarily absent from the provider's home, or on runaway
status and subsequently returned, and payment was made to the
provider to meet the child's needs.
   (3) The overpayment was exclusively the result of a county
administrative error or both the county welfare department and the
provider were unaware of the information that would establish that
the foster child was not eligible for foster care benefits.
   (4) The provider did not have knowledge of, and did not contribute
to, the cause of the overpayment.
   (b) (1) After notification by a county of an overpayment to a
foster family home, an approved home of a relative or a nonrelative
extended family member, or an approved home of a nonrelative legal
guardian, and a demand letter for repayment, the foster parent,
approved relative, or approved nonrelative legal guardian may request
the county welfare department to review the overpayment
determination in an informal hearing, or may file with the department
a request for a hearing to appeal the overpayment determination.
Requesting an informal hearing shall not preclude a payee from
seeking a formal hearing at a later date. The county welfare
department shall dismiss the overpayment repayment request if it
determines the action to be incorrect through an initial review prior
to a state hearing, or through a review in an informal hearing held
at the request of the foster parent, relative, or nonrelative legal
guardian.
   (2) If an informal hearing does not result in the dismissal of the
overpayment, or a formal appeal hearing is not requested, or on the
30th day following a formal appeal hearing decision, whichever is
later, the foster family provider overpayment shall be sustained for
collection purposes.
   (3) The department shall adopt regulations that ensure that the
best interests of the child shall be the primary concern of the
county welfare director in any repayment agreement.
   (c) (1) The department shall develop regulations for recovery of
overpayments made to any foster family home, approved home of a
relative, or approved home of a nonrelative legal guardian. The
regulations shall prioritize collection methods, that shall include
voluntary repayment agreement procedures and involuntary overpayment
collection procedures. These procedures shall take into account the
amount of the overpayment and a minimum required payment amount.
   (2) A county shall not collect an overpayment through the use of
an involuntary payment agreement unless a foster family home, an
approved home of a relative, or an approved home of a nonrelative
legal guardian has rejected the offer of a voluntary overpayment
agreement, or has failed to comply with the terms of the voluntary
overpayment agreement.
   (3) A county shall not be permitted to collect an overpayment
through the offset of payments due to a foster family home, an
approved home of a relative, or an approved home of a nonrelative
legal guardian unless this method of repayment is requested by the
provider in a voluntary repayment agreement, or other circumstances
defined by the department by regulation.
   (d) If a provider is successful in its appeal of a collected
overpayment, it shall be repaid the collected overpayment plus simple
interest based on the Surplus Money Investment Fund.
   (e) A county may not collect interest on the repayment of an
overpayment.
   (f) There shall be a one-year statute of limitations from the date
upon which the county determined that there was an overpayment.

11466.25.  Interest begins to accrue on a group home provider
overpayment on the date of the issuance of the final audit report.

11466.3.  (a) The department shall offer a voluntary repayment
agreement procedure to group home providers that owe a sustained
overpayment. A group home provider may enter into a voluntary
repayment agreement with the department to repay a sustained
overpayment. The voluntary repayment agreement shall, at a minimum,
meet the requirements developed pursuant to paragraph (3) of
subdivision (d) of Section 11466.2.
   (b) The department shall charge simple interest on the voluntary
repayment agreement in accordance with paragraph (3) of subdivision
(d) of Section 11466.2.

11466.31.  When it has been determined that a group home provider
participating in the AFDC-FC program owes an overpayment that is due
and payable, the department may implement involuntary offset
collection procedures to collect sustained overpayments from a group
home provider if the provider does not enter into a voluntary
repayment agreement with the department or the provider has three
outstanding payments on a voluntary repayment agreement before the
overpayment is repaid.
   The minimum monthly overpayment offset amount from monthly rate
reimbursements shall be determined using the involuntary collection
procedures developed pursuant to paragraph (4) of subdivision (d) of
Section 11466.2. Overpayments shall be offset against current monthly
rate reimbursement payments due and payable to a group home provider
under this chapter.

11466.32.  (a) If a group home provider that owes a sustained
overpayment pursuant to paragraph (2) of subdivision (d) of Section
11466.2 does not enter into a voluntary repayment agreement with the
department, or the provider has three outstanding payments on a
voluntary repayment agreement before the overpayment is repaid, in
addition to the monthly overpayment offset amount, 50 percent of any
increases resulting from California Necessities Index (CNI)
adjustments and group home provider's rate adjustments to the
standard rate that are due to a group home provider shall be withheld
until the sustained overpayment amount is collected. Once the
overpayment amount is collected, the group home provider shall begin
to prospectively receive the full amount of any California
Necessities Index and rate adjustment to which it is entitled.
   (b) Any group home provider subject to involuntary repayment of a
sustained overpayment pursuant to Section 11466.31 shall be
ineligible to receive an RCL increase until the repayment is
completed or until the host county or the primary placement county
provide the department with a request for waiver of this paragraph.

11466.33.  (a) If any amount is due and payable to the department as
a result of sustained overpayment to a group home provider for care
and services in the AFDC-FC program, the department may file, in the
office of any county clerk of any county in which the group home
provider has real or personal property, a certificate if any of the
following conditions are met:
   (1) No informal hearing is requested and if a provider has not
submitted a voluntary repayment agreement with the first payment, and
60 days have elapsed from the notice of audit results.
   (2) No formal appeal is requested and if a provider has not
submitted a voluntary repayment agreement along with the first
payment, and 60 days have elapsed from the notice of the informal
hearing decision.
   (3) A provider has not submitted a voluntary repayment agreement
along with the first payment, and 30 days have elapsed after an
adverse appeal decision by a hearing officer that sustains an
overpayment.
   (b) The certificate provided for pursuant to subdivision (a) shall
contain:
   (1) The amount due, owing, and unpaid, plus simple interest on the
amount owing and unpaid beginning on the date the certificate is
filed.
   (2) A statement that the department has complied with this section
prior to the filing of the certificate.
   (3) A request that a lien be recorded against the group home
provider in the amount set forth in the certificate.
   (c) The county clerk immediately upon the filing of the
certificate shall record the lien for the State of California against
the group home provider in the amount set forth in the certificate.
The lien may be filed in the chain of title of the property.
   (d) The department shall pay the cost of the first lien, and group
home providers shall be responsible for any subsequent liens on a
sustained overpayment.
   (e) For the first certificate filed by the department pursuant to
this section, the county shall waive all filing fees.

11466.34.  (a) (1) At any time within 10 years of the recording of a
lien pursuant to Section 11466.33, the department may bring an
action, in a superior court in the county in which the lien is filed,
seeking a judgment to establish the lien as a judgment lien.
   (2) If a judgment is obtained pursuant to paragraph (1), the
county recorder shall record the lien as a judgment lien.
   (b) An abstract of a judgment obtained pursuant to subdivision (a)
or a copy thereof may be recorded with the county recorder of any
county. From the time of recording, the judgment shall constitute a
lien upon all real or personal property of the group home provider in
that county owned by the group home provider at the time, or that
the group home provider may afterwards, but before the lien expires,
acquire. The judgment lien shall continue for 10 years from the time
of recording of the abstract of judgment obtained pursuant to
subdivision (a), unless sooner released or otherwise discharged.
   (c) The judgment lien may, within 10 years from the date of
recording of the abstract of judgment or within 10 years from the
date of the last extension of the lien in the manner provided in this
section, be extended by recording a new abstract in the office of
the county recorder of any county. From the date of that recording,
the lien shall be extended for 10 years, unless sooner released or
otherwise discharged.
   (d) The department may release any lien imposed pursuant to this
chapter, at the provider's cost, in which case any judgment
pertaining to that lien is for all purposes null and void, if all of
the following conditions are met:
   (1) No temporary suspension order or license revocation actions by
the department's community care licensing division is pending
against a provider.
   (2) A provider has made at least three timely payments on a
voluntary repayment agreement.
   (3) The provider submits to the department corroborative evidence
that it is unable to obtain a loan from an institutional lender
unless the lien is released.
   (e) Execution shall issue upon a judgment obtained pursuant to
this section upon request of the department in the same manner as
execution may issue upon other judgments. Sale shall be held under
that execution as prescribed in the Code of Civil Procedure. In all
proceedings under this section, the director or his or her authorized
agents may act on behalf of the state.

11466.35.  (a) Any licensee who has been determined to owe a
sustained overpayment under this chapter, and who, subsequent to
notice of the sustained overpayment, has its group home rate
terminated, shall be ineligible to apply or receive a rate for any
future group home program until the overpayment is repaid.
   (b) A rate application shall be denied for a group home provider
that meets either of the following conditions:
   (1) A provider owing a sustained overpayment under this chapter,
upon the occurrence of any additional sustained overpayment, shall be
ineligible to apply or receive a rate for an existing or future
group home program until the sustained overpayments are repaid,
unless a voluntary repayment agreement is approved by the department.
   (2) A provider incurring a sustained overpayment that constitutes
more than 60 percent of the provider's annual rate reimbursement
shall be ineligible to apply or receive a rate for any existing or
future group home programs until the sustained overpayments are
repaid, unless a voluntary repayment agreement is approved by the
department.

11466.36.  (a) The department may terminate a group home rate if any
of the following conditions are met:
   (1) The director determines that, based upon the findings of a
hearing officer, a rate application or information submitted by a
provider was fraudulently submitted to the department.
   (2) A provider with an outstanding sustained overpayment incurs a
second sustained overpayment, and is unable to repay the sustained
overpayments.
   (3) A provider has a sustained overpayment that represents 100
percent of a provider's annual rate reimbursement.
   (b) This chapter shall not be construed to affect the department's
authority under other provisions of law for collection of group home
provider sustained overpayments.

11466.5.  The department shall collect group home cost data and
monitor the cost of providing care and supervision, and social work
services, to AFDC-FC recipients. These data shall include, but not be
limited to, the costs incurred by group homes for employee wages and
benefits.

11466.6.  A group home provider who disagrees with the rate
determined by the department or adjusted by a program audit shall
request an appeal by the director or the director's designee. The
department shall adopt regulations establishing procedures for the
departmental appeal process.

11467.1.  (a) It is the intent of the Legislature that standards be
developed to address the specific needs of very young children, from
birth to six years of age, experiencing the trauma of separation from
their family who must be placed in out-of-home care. These standards
shall provide normative guidelines differentiated by the needs
specific to infants from birth to two years of age, toddlers from two
years of age to four years of age, and preschool from four years of
age to six years of age and shall reflect the needs of all children
for a family-like setting that provides culturally appropriate
nurturing, and safety.
   (b) The department shall assess the needs of young children and
adopt standards in consultation with interested parties that shall
include the following:
   (1) A representative of a public interest law firm specializing in
children's issues.
   (2) A representative of an advocacy group representing children
with developmental disabilities.
   (3) A representative of the California Association of Children's
Homes.
   (4) A representative of the Association for Minority Adolescents
in Residential Care Homes.
   (5) A representative of the California Association of Services for
Children.
   (6) A representative of the County Welfare Directors Association.
   (7) A representative of the National Association of Social
Workers.
   (8) A developmental psychologist specializing in children in
shelter care.
   (9) A psychiatrist specializing in the emotional development of
young children.
   (10) A pediatrician.
   (11) An expert in family reunification issues.
   (12) A specialist in the treatment of alcohol and other drug
abuse.
   (13) A representative of the Child Welfare League of America.
   (14) A representative of the State Department of Developmental
Services.
   (15) A representative of the Association of Regional Center
Agencies.
   (c) The department shall develop standards that include, but are
not limited to, all of the following:
   (1) The elements of a safe nurturing environment that support all
aspects of a child's development and provide opportunities to
establish primary, trusting relationships with a carefully limited
number of adults.
   (2) Psychosocial needs, primary care, parental visits,
developmental support, trauma recovery, appropriate discipline, and
flexibility in daily activities.
   (3) Guidelines for services to be provided pursuant to a case
plan.
   (4) To the maximum extent feasible, the requirement that
significant placement changes be minimized, and that they be
carefully planned and implemented.
   (d) The standards shall be incorporated to the extent feasible
into group home program statements required pursuant to Section 11467
of the Welfare and Institutions Code.

11467.2.  (a) The department shall contract with an independent
evaluator to conduct a study of alternative funding mechanisms for
group home care in California and to formulate a proposed funding
system for the care and supervision of children who are placed in
group home care. The independent evaluator shall consider and
evaluate alternative funding mechanisms, including, but not limited
to, cost-based rates, individual client needs-based rates, managed
care rates, program type rates, and negotiated rates, and shall
propose a specific mechanism and procedure, for children subject to
Sections 300 or 602 who are placed in group homes. The study shall
consider empirical research, current foster care program service
needs, other state funding systems, and any other relevant data,
including information obtained from the final report regarding the
Reexamination of the Role of Group Care Within a Family Based System
of Care, as mandated by Chapter 311 of the Statutes of 1998.
   (b) The department shall convene a steering committee to provide
direction for the study, which shall be comprised of appropriate
state and county agencies, as well as group home providers, current
or former foster youth, and other interested parties.
   (c) The department shall provide a copy of the final report
submitted pursuant to subdivision (a) to the appropriate fiscal and
policy committees of the Legislature on or before October 1, 2001.
Any proposal or recommendations submitted pursuant to this section
shall not become effective unless enacted pursuant to statute.
   (d) Pending completion of a new rate system, this section shall
not be construed in any way to prohibit recognition through the
budget process of the costs of operating under the current rate
system or the consideration of rate adjustments.

11468.  The director shall establish administrative procedures to
review the rate set by the department for a foster family agency and
a group home program.

11468.1.  The administrative review procedure established pursuant
to Section 11468 shall include a protest within the department and a
hearing conducted by a hearing officer appointed by the director.

11468.2.  (a) A group home provider or foster family agency who
disagrees with a rate set by the department and who desires a
different rate shall file a protest with the department within 60
days from the date of the mailing of the notification of the set
rate. The protest shall include all information including
documentation for the department to determine the provider's basis
for requesting a different set rate or challenge of the audit
findings. The department may request additional documentation or
information from the group home provider after reviewing the protest.
   (b) Within 90 days of receipt of the final documentation or
information, the department shall issue a decision letter indicating
the department's decision on the protest which shall include the
department's basis for the action taken. This time period may be
extended by the department for good cause.
   (c) If the group home provider or foster family agency does not
concur with the decision letter, a written appeal may be filed with
the department within 60 days of receipt of the decision letter. The
appeal shall be accompanied with full supporting documentation. The
department may request additional information.

11468.3.  (a) The appeal filed with the department pursuant to
Section 11468.2 shall specify whether the provider does or does not
wish that an informal conference among the parties be held, together
with the reasons therefor. Either party may request, or the hearing
officer may order, that a telephone conference call be initiated
among the parties for discussion of the advisability of conducting an
informal conference. The hearing officer shall decide whether an
informal conference would be appropriate and notify the parties of
this decision in writing.
   (b) If the hearing officer determines that an informal conference
is appropriate, it shall be ordered and scheduled as soon as
reasonably possible. The hearing officer shall preside at this
informal conference.
   (c) The department shall mail written notice of the time and place
of the informal conference to each party at least 10 calendar days
before the date of the informal conference. This period may be
shortened with the consent of the parties. Any party may waive
notice.
   (d) Efforts shall be made to resolve the facts and issues in
dispute in a fair and equitable manner, subject to the requirements
of state and federal law.

11468.4.  (a) The hearing held pursuant to Section 11468.1 shall be
conducted no later than 180 days after the filing of a timely and
specific statement of disputed issues by the provider.
   (b) The hearing officer shall take the matter under submission at
the conclusion of the hearing. A proposed decision, in a form that
may be adopted as the decision of the director, shall be submitted to
the director within 180 days after the closure of the record.
   (c) Within 120 days after submission of the hearing officer's
proposed decision, the director shall:
   (1) Adopt the proposed decision with or without reading or hearing
the record.
   (2) Reject the proposed decision and adopt an alternative decision
based upon the documentary and electronically recorded record, with
or without taking additional evidence.
   (3) Refer the matter to the same or a different hearing officer to
take additional evidence. If the case is so assigned, the hearing
officer shall, within 90 days, prepare a proposed decision, based
upon the additional evidence and the documentary and electronically
recorded record of the prior hearing. The director may then take one
of the actions described in subdivision (c) in regard to the new
proposed decision. The director may return a proposed decision only
twice on the same appeal.
   (d) (1) The director's decision shall be final when the decision
is mailed to the parties. However, the director retains jurisdiction
to correct clerical errors.
   (2) Copies of the final decision of the director and the hearing
officer's proposed decision if it was not adopted by the director,
shall be mailed by certified mail to the parties.

11468.5.  The provider or foster family agency may request review of
the final decision of the department pursuant to Section 11468.4 in
accordance with Section 1094.5 of the Code of Civil Procedure, within
six months of the issuance of the director's final decision.

11468.6.  (a) The director shall establish administrative procedures
to review group home audit findings.
   (b) A group home provider, including an RCL 13 or an RCL 14
provider, may request a hearing to examine any disputed audit finding
that results in an overpayment or adjustment to the provider's rate,
or that reduces the provider's overall RCL point total pursuant to
Section 11462. The administrative review process established in this
section shall not examine issues regarding the authority of the
department to set rates, determine RCL points, conduct audits, or
collect overpayments from a group home provider.
   (c) The administrative appeal process established pursuant to this
section shall commence with an informal hearing, and provide for a
formal administrative hearing of the informal level appeal record and
decision by a hearing officer appointed by the director. The
department shall make every effort to contract with the State
Department of Health Services to conduct the informal hearings
required by this subdivision during the first year of implementation
of this section.
   (d) An amended audit report may be issued by the department for
the fiscal period or periods for which the proceedings are pending
under this section, if at the time of the hearing, the group home
provider submits additional documentation or evidence that was not
available to the department at the time of the audit. The proceedings
shall be suspended for a period not exceeding 120 days while the
department completes an amended audit and the provider identifies any
additional disputes that result from an amended audit report.
Additional audit findings included in an amended audit report may
also be included in the proceedings at the request of the provider.
   (e) Within 120 days after submission of a proposed decision, the
director shall do one of the following:
   (1) Adopt the proposed decision with or without reading or hearing
the record.
   (2) Reject the proposed decision and adopt an alternative decision
based upon the documentary and electronically recorded record, with
or without taking additional evidence.
   (3) Refer the matter to the same or a different hearing officer to
take additional evidence. If the case is so assigned, the hearing
officer shall, within 90 days, prepare a proposed decision, based
upon the additional evidence and the documentary and electronically
recorded record of the prior hearing. The director may then take one
of the actions described in this subdivision in regard to the new
proposed decision. The director may return a proposed decision twice
on the same appeal.
   (4) If the director fails to take action on the proposed decision
within 120 days after the submission of the proposed decision, the
proposed decision shall take effect by operation of law.
   (f) (1) The director's decision shall be final when the decision
is mailed to the parties. However, the director retains jurisdiction
to correct clerical errors.
   (2) Copies of the final decision of the director and the hearing
officer's proposed decision, if it was not adopted by the director,
shall be mailed by certified mail to the parties.
   (g) The group home provider may request review of the final
decision of the director pursuant to this section in accordance with
Section 1094.5 of the Code of Civil Procedure within six months of
the issuance of the director's final decision.

11469.  (a) By July 1, 1993, the department, in consultation with
group home providers, the County Welfare Directors' Association, the
Chief Probation Officers' Association, the California Conference of
Local Mental Health Director and the State Department of Mental
Health, shall develop performance standards and outcome measures for
determining the effectiveness of the care and supervision, as defined
in subdivision (b) of Section 11460, provided by group homes under
the AFDC-FC program pursuant to Sections 11460 and 11462. These
standards shall be designed to measure group home program performance
for the client group that the group home program is designed to
serve.
   (1)  The performance standards and outcome measures shall be
designed to measure the performance of group home programs in areas
over which the programs have some degree of influence, and in other
areas of measurable program performance that the department can
demonstrate are areas over which group home programs have meaningful
managerial or administrative influence.
   (2) These standards and outcome measures shall include, but are
not limited to, the effectiveness of services provided by each group
home program, and the extent to which the services provided by the
group home assist in obtaining the child welfare case plan objectives
for the child.
   (3) In addition, when the group home provider has identified as
part of its program for licensing, ratesetting, or county placement
purposes, or has included as a part of a child's case plan by mutual
agreement between the group home and the placing agency, specific
mental health, education, medical, and other child-related services,
the performance standards and outcome measures may also measure the
effectiveness of those services.
   (b) Regulations regarding the implementation of the group home
performance standards system required by this section shall be
adopted no later than one year prior to implementation. The
regulations shall specify both the performance standards system and
the manner by which the AFDC-FC rate of a group home program shall be
adjusted if performance standards are not met.
   (c) Except as provided in subdivision (d), effective July 1, 1995,
group home performance standards shall be implemented. Any group
home program not meeting the performance standards shall have its
AFDC-FC rate, set pursuant to Section 11462, adjusted according to
the regulations required by this section.
   (d) Effective July 1, 1995, group home programs shall be
classified at rate classification level 13 or 14 only if all of the
following are met:
   (1) The program generates the requisite number of points for rate
classification level 13 or 14.
   (2) The program only accepts children with special treatment needs
as determined through the assessment process pursuant to subdivision
(b) of Section 11467.
   (3) The program meets the performance standards designed pursuant
to this section.
   (e) Notwithstanding subdivision (c), the group home program
performance standards system shall not be implemented prior to the
implementation of the AFDC-FC performance standards system specified
in Section 11215.

11469.1.  The performance standards and outcome measures required by
Section 11469 shall meet all of the following requirements:
   (a) They shall include indicators of quality of care, including,
but not limited to, stability of placement, reduction in recidivism,
educational progress, and improvement in social behavior, and shall
not consist solely of fiscal indicators, such as cost-avoidance due
to reduction or avoidance of out-of-home care.
   (b) They shall apply to all providers of out-of-home care,
including, but not limited to, providers of services provided either
directly by, or under contract with, a county welfare department or
county probation department.
   (c) They shall be used to develop baseline standards against which
to measure future performance and to provide a basis for making
comparisons among different programs and placements.