AB 403 Summary

• Transitions California's foster care system from group homes to short-term residential treatment centers (STRTCs) effective January 1, 2017, requiring new licensing standards and mental health certification for residential facilities.

• Establishes a unified "resource family approval" process replacing separate licensing/approval procedures for foster family homes, relative caregivers, and adoptive families, with all foster family homes transitioned to resource family status by December 31, 2019.

• Requires development of "child and family teams" to involve children, families, and stakeholders in placement and service decisions, emphasizing least restrictive family-based placements and trauma-informed care.

• Creates new payment structures for short-term residential treatment centers and foster family agencies while phasing out the existing group home rate classification level system that had 14 tiers.

• Implements stricter overpayment recovery procedures for providers, including potential rate termination and license revocation for failure to repay sustained overpayments.