(Amended (as amended by Stats. 2025, Ch. 107, Sec. 6) by Stats. 2026, Ch. 26, Sec. 31.)

(a) Adoption Assistance Program (AAP) payments may be made on behalf of an otherwise eligible child for placement in out-of-state residential treatment facility if one or more of the adoptive parents reside in the state in which the residential treatment facility is located and the responsible public agency has confirmed that placement in the an out-of-state residential treatment facility is necessary for the temporary resolution of the mental health, behavioral health, or emotional health needs of the child and related to a condition that existed before the adoptive placement.

(b) AAP benefits may be authorized for payment for an eligible child’s placement in an out-of-state residential treatment facility if the responsible public agency has determined that both of the following conditions exist:

(1) One or more of the adoptive parents reside in the state in which the residential treatment facility is located.

(2) The placement is justified by a specific condition and does not exceed a 12-month cumulative period of time. For the purpose of transitioning the child home, payment at the rate described in subdivision (d) may continue for up to an additional 60 calendar days if the child remains placed at the out-of-state residential treatment facility.

(c) The designation of the placement facility shall be made, after consultation with the adoptive family, by the responsible public agency. Placement in an out-of-state residential treatment facility shall only be made as part of a plan for return of the child to the adoptive family and the adoptive parents shall actively participate in the reunification plan.

(d) The AAP rate paid on behalf of the child for an out-of-state residential treatment facility shall not exceed the lesser amount of the following:

(1) The rate paid for a foster care placement in a short-term residential therapeutic program, as defined in paragraph (18) of subdivision (a) of Section 1502 of the Health and Safety Code.

(2) The rate determined by the ratesetting authority in the state in which the out-of-state residential treatment facility is located.

(e) (1) For the purpose of this section, “out-of-state residential treatment facility” means a facility that is located in a state outside of California, is licensed and in good standing or otherwise approved and in good standing by the applicable state or tribal authority, is eligible as a Title IV-E funded placement in the state in which it is situated, and provides an integrated program of specialized and intensive care and supervision, services and supports, treatment, and short-term, 24-hour, trauma-informed care and supervision to children. An out-of-state residential treatment facility may be called another name, including a group home, a residential facility, or a residential care treatment facility. An out-of-state residential treatment facility shall have a trauma-informed therapeutic focus to treat a child’s mental health, behavioral health, emotional health, and attachment needs, and shall have a mental health clinic program.

(2) For purposes of this section, “out-of-state residential treatment facility” shall not include wilderness programs, boot camps, detention facilities, any facility operated primarily for the detention of youth who are involved in the juvenile justice system, academies, or schools, including, but not limited to, boarding schools and military schools.

(3) For purposes of this section, “responsible public agency” means the department or county adoption agency responsible for determining a child’s AAP eligibility and initial and subsequent payment amount.

(f) (1) Prior to the authorization of AAP benefits in the out-of-state residential treatment facility, the adoptive family shall provide proof of licensing and accreditation to the responsible public agency. The adoptive family shall provide verification that the out-of-state residential treatment facility is all of the following:

(A) Licensed or otherwise approved by the applicable state or tribal authority.

(B) In good standing.

(C) Eligible as a Title IV-E funded placement.

(D) A qualified residential treatment program, as defined in the federal Social Security Act (42 U.S.C. Sec. 672(k)(4)).

(2) The documentation required by paragraph (1) shall originate from the government agency or tribal authority that licenses or otherwise approves the out-of-state residential treatment facility, or the appropriate state or tribal Title IV-E agency.

(h) Nothing in this section shall be interpreted to invalidate or alter the terms or conditions of adoption assistance agreements executed before the effective date of this section. For a child who is placed in any facility outside of California funded through AAP before June 30, 2025, or the effective date of this section, whichever date is later, and remains in placement on June 30, 2025, or the effective date of this section, whichever date is later, payment at the negotiated benefit amount shall not exceed the timeframe authorized in the adoption assistance agreement in effect on June 30, 2025, or the effective date of this section, whichever date is later, unless the responsible public agency and the adoptive parents have negotiated and agreed upon up to an additional 60 calendar days for the purpose of transitioning the child home.

(i) The department shall engage child welfare advocates, county child welfare agencies, tribes, and interested stakeholders to update policies regarding the use of AAP for wraparound and out-of-home placements, including planning for transition back home to the family setting, and shall provide to the Legislature proposed statutory changes no later than February 1, 2026.

(j) The department shall provide guidance to counties regarding the steps necessary to document the requirements described in this section and shall develop processes to regularly document that the out-of-state residential treatment facility continues to meet the requirements of subdivision (f).

(k) (1) Subject to an appropriation by the Legislature for these purposes, the department shall directly, or through contract with a service provider, ensure transition support services are made available to adoptive families. Transition support services shall include, at minimum, all of the following:

(A) Assist families in identifying and linking to needed services for their adopted child.

(B) Assist the family with access to wraparound services, if needed.

(C) Connect to mental health services, preferably with a provider who has been trained in adoption competencies, unless declined by the family.

(D) Connect to the local county social services agency to reapply or reinstate Medi-Cal coverage for adoptive families to connect to services and link to enhanced care management and other benefits and services that are available through Medi-Cal managed care plans, if determined eligible for Medi-Cal and enrolled in a Medi-Cal managed care plan.

(2) The responsible public agency shall refer the family to postpermanency services at the local level to support the adoptive family in navigating postpermanency services, in accordance with guidance to be developed by the department in consultation with counties and stakeholders.

( l ) Subject to an appropriation by the Legislature for these purposes, the department shall ensure both of the following activities are completed:

(1) The department shall interview adoptive parents who voluntarily agree or who decide to submit information directly to the department regarding the reason that out-of-state placement was necessary, the specific services received out of state, services received to support the transition back to California, and the current status of their adoptive children who returned to California on or after July 1, 2025. A report shall be provided to the Legislature, consistent with Section 9795 of the Government Code, on January 14, 2028.

(2) Engage adoptive families, youth, adoption agencies, child welfare advocates, county child welfare agencies, tribes, and other interested stakeholders to identify the training, services, supports, and any gaps that exist to support adoptive families connecting to resources before crises escalate to wraparound or residential placement and shall provide to the Legislature proposed statutory changes no later than August 1, 2028.

(m) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement, interpret, or make specific this section by means of all-county letters or similar written instructions and amended forms, which shall be exempt from submission to or review by the Office of Administrative Law. These all-county letters or similar instructions shall have the same force and effect as regulations.

(n) This section is inoperative on July 1, 2027, or the date that the department notifies the Legislature that the California Statewide Automated Welfare System and the Statewide Child Welfare Information System (currently the California Automated Response and Engagement System (CWS-CARES)) can perform the necessary automation to implement the Tiered Rate Structure described in subdivision (h) of Section 11461, whichever is later, and is repealed as of January 1 of the following year.