(a) The Legislature finds and declares the following:

1. (1) Social determinants of health, adverse childhood experiences (ACEs), positive childhood experiences, and other supports are critical determinants of life outcomes for children. Research shows that ACEs can have lasting, negative, and permanent impacts on childhood development. Many factors, including experiencing abuse or neglect, placement instability and disconnection from family and natural supports, leave children and nonminor dependents in foster care particularly vulnerable to the impact of ACEs.
2. (2) Research also shows that positive childhood experiences, tailored to a child’s or nonminor dependent’s strengths, can lessen the impact of ACEs. Through positive childhood experiences, children can develop, build, and nurture strengths and personal autonomy, which may support the successful transition to permanency and successful adulthood.
3. (3) Focusing on strengths building activities, by providing explicit funding for these activities, will help to prevent children and nonminor dependents in foster care from developing more complex needs and will serve to stabilize children, and, as applicable, nonminor dependents in their families, which, whenever possible and consistent with federal and state laws for placement preferences, should include placement in the home of a relative, nonrelative extended family member or, in the case of an Indian child, an extended family member as defined in Section 224.1.
4. (4) Strengths building activities should be culturally responsive, family centered, and permanency focused, and, in the case of an Indian child, consistent with the prevailing social and cultural conditions and way of life of the Indian child’s tribe.
5. (5) It is therefore the intent of the Legislature in enacting this section to create a program to empower the children and nonminor dependents in foster care and their families, with support from the child and family team, to select and make decisions about the goods, services, activities, and supports needed to achieve the strengths building objectives.

(c) For purposes of this chapter, the following definitions shall apply:

1. (1) “Child and family determination” means the process established by the department to empower the child or nonminor dependent, in an age and developmentally appropriate manner and the child and family or nonminor dependent to make decisions, informed by the IP-CANS assessment tool about the mix of goods, services, activities, and supports needed to meet the child’s or nonminor dependent’s strengths building objectives. In the case of an Indian child, the process shall be informed by the prevailing social and cultural conditions and way of life of the Indian child’s tribe.
2. (2) “Child and family team” has the same meaning as described in paragraph (4) of subdivision (a) of Section 16501, including, for an Indian child, a representative of the Indian child’s tribe or Indian custodian, as applicable.
3. (3) “Family” includes the child’s parents, guardian, Indian custodian, and relatives, unless a juvenile court has made an order terminating parental rights pursuant to Section 366.26. “Family” also includes resource families or tribally approved homes, and, in the case of an Indian child, a representative of the Indian childʼs tribe and extended family members, as defined in Section 224.1.
4. (4) “Spending plan manager” means the entity or entities that contract with the department to manage the Strengths Building Funding on behalf of the child or nonminor dependent. The spending plan manager shall be a partnership, whether general or limited, a corporation, whether for profit or nonprofit, a limited liability company, or an association with a valid tax payer identification number. The department shall prioritize nonprofit entities in developing these contracts.
5. (5) “Spending plan report” means a report of the information required in subparagraph (B) of paragraph (5) of subdivision (d), prepared by the spending plan manager, regarding the child’s or nonminor dependent’s Strengths Building Funding.
6. (6) “Strengths building” means the growth or development of characteristics of a child or nonminor dependent in an environment or through an external factor that provides the individual with meaning and wellbeing through the provision of goods, services, activities, and supports. For an Indian child, the identification of strengths shall be informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe.
7. (7) “Strengths Building Funding” means the per child per month amount paid as a rate component of the Tiered Rate Structure established in subparagraph (B) of paragraph (2) of subdivision (h) of Section 11461, as specified in paragraph (1) of subdivision (d), based on the childʼs or nonminor dependent’s tier, as determined by the IP-CANS assessment.
8. (8) “Strengths Building Spending Plan” means the plan the child and family develop to use the Strengths Building Funding as provided in subparagraph (A) of paragraph (3) of subdivision (d). In the case of a nonminor dependent, the Strengths Building Spending Plan means the plan that is developed by the nonminor dependent with appropriate supports selected by the nonminor dependent.

(d) Under the Strengths Building Child and Family Determination Program:

1. (1) Strengths Building Funding shall be available per child per month for each eligible child or nonminor dependent described in subdivision (b) based on the child’s or nonminor dependent’s tier, according to the following tiered rate schedule:

   Tier 1: $ 500

   Tier 2: $ 700

   Tier 3: $ 900 [Ages 0-5]

   Tier 3+: $900 [Ages 6+]

2. (2) For each eligible child or nonminor dependent described in subdivision (b) Strengths Building Funding shall be available, as set forth in paragraph (1), as follows:

   1. (A) Except as provided in subparagraph (B), beginning on the date required by paragraph (9) of subdivision (h) of Section 11461, for new entries into foster care and for all other children or nonminor dependents in foster care placements on July 1, 2027, including children or nonminor dependents placed in a setting described in subdivision (d) of Section 11402, the Strengths Building Funding shall be available consistent with the child’s or nonminor dependent’s tier, as determined by the IP-CANS assessment, pursuant to a schedule to be determined by the department.
   2. (B) Beginning on the date required by paragraph (9) of subdivision (h) of Section 11461, an amount equivalent to Tier 1 of the Strengths Building Funding shall be available to a nonminor dependent placed in a setting described in subdivision (w) of Section 11400.
   3. (C) The Strengths Building Funding shall be considered to be owned by the state until the spending plan manager pays for goods, services, activities, and supports for the child or nonminor dependent using the funds. The child’s or nonminor dependent’s Strengths Building Funding shall be used within the fiscal year for which the funding is appropriated. When the child or nonminor dependent exits foster care, including, but not limited to, when the child reunifies with a parent with or without juvenile court supervision, or achieves permanency through adoption, tribal customary adoption, or guardianship, any unused portion of Strengths Building Funding shall be available for use by the child or nonminor dependent through the end of the fiscal year for which the funding was appropriated, and any unused funding may roll forward into the fiscal year immediately following the fiscal year for which the funding was appropriated.
   4. (D) All goods, services, activities, and supports paid for by the spending plan manager using the Strengths Building Funding shall belong to or be provided for the benefit of the child or nonminor dependent, including when the child’s or nonminor dependent’s placement changes.
   5. (E) Notwithstanding any other law, payments, goods, services, activities and supports made available to a child or nonminor dependent pursuant to this section shall not be considered income or resources for purposes of determining the individual’s eligibility for benefits or assistance under any federal, state or local benefit or assistance program, to the extent permitted by federal law.

3. (3) The child and family or nonminor dependent, in exercising child and family determination, informed by the child’s or nonminor dependent’s strengths and needs assessment through the IP-CANS, and, for an Indian child, informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe, shall do both of the following:

   1. (A) Develop a Strengths Building Spending Plan for the child or nonminor dependent.

      1. (i) The Strengths Building Spending Plan shall detail the strengths building objectives that are to be achieved through the purchase of child- and family-directed goods, services, activities, and supports using the Strengths Building Funding pursuant to the program standards and guidelines established by the department pursuant to subdivision (e) and, for an Indian child, informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe.
      2. (ii) The total amount of the Strengths Building Spending Plan shall not exceed the amount of the Strengths Building Funding for the child’s or nonminor dependent’s tier.
      3. (iii) The Strengths Building Spending Plan shall not be used to supplant existing funding sources used to secure goods, services, activities, or supports for children or nonminor dependents in foster care.

   2. (B) Choose the goods, services, activities, and supports consistent with the program standards and guidelines developed by the department pursuant to subdivision (e). These goods and services may include, but are not limited to, extracurricular activities and equipment, peer support, educational and post-secondary educational materials and supplies, and goods, services, activities, and supports that are culturally significant to the child or nonminor dependent or that help the child or nonminor dependent feel connected to their family and community of origin, or, in the case of an Indian child, the child’s tribe.

      1. (i) The child and family or nonminor dependent’s choice of goods, services, activities or supports shall be presumed to be reasonable and appropriate when those choices are consistent with guidance provided by the department describing allowable uses of the Strengths Building Funding and do not otherwise create risk to the child’s or nonminor dependent’s health, safety, or wellbeing. Strengths Building Funding shall not be used in a manner that would violate any state or federal law or any court order.
      2. (ii) In the case of a child whose permanent plan is reunification, the child shall be empowered, as age and developmentally appropriate, to lead decisionmaking with active support of their parent or parents receiving reunification services. In all other cases, the child shall be empowered, as age and developmentally appropriate, to lead decisionmaking with active support of their caregiver.
      3. (iii) In the case of a nonminor dependent, the nonminor dependent shall be empowered to make decisions to expend Strengths Building Funding in a manner that supports their transition to successful adulthood.

4. (4) The child and family team shall be responsible for both of the following:

   1. (A) Supporting the child’s and family’s or nonminor dependent’s choices or interests in goods, services, activities, and supports for the Strengths Building Spending Plan and providing support or suggestions in choosing activities to fulfill the strengths building objectives that are consistent with the strengths building objectives identified by the child’s or nonminor dependent’s IP-CANS assessment and the program standards and guidelines developed by the department pursuant to subdivision (e) and, for an Indian child, informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe, and for a child who is 14 years and older, as is age appropriate, and for all nonminor dependents, supporting the child in leading and directing the decisions related to the use of the Strengths Building Funding.
   2. (B) Working with the child and family or nonminor dependent, as applicable, and as desired by the child and family, or nonminor dependent, when goods, services, activities, and supports chosen for the Strengths Building Spending Plan fail to meet the program standards and guidelines developed by the department pursuant to subdivision (e), to help select and find goods, services, activities, and supports that comply with those guidelines and, for an Indian child, are informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe.

5. (5) Each child and nonminor dependent shall have a spending plan manager to assist the child and family and nonminor dependent with managing the Strengths Building Funding consistent with the Strengths Building Spending Plan. The spending plan manager shall do all of the following:

   1. (A) Pay for and, if needed, otherwise enable the procurement of goods, services, activities, and supports for the child or nonminor dependent according to terms of the spending plan manager’s contract with the department, the program standards and guidelines developed by the department pursuant to subdivision (e), and any other applicable requirements under state and federal law.

      1. (i) When necessary or appropriate, payments may be made directly to the caregiver, child and family, or a nonminor dependent, according to the terms of the spending plan manager’s contract with the department, guidance provided by the department, and applicable federal and state law.
      2. (ii) Payments shall be made timely according to the terms of the Strengths Building Spending Plan to promote the goals and objectives of the Strengths Building Child and Family Determination Program, the terms of the spending plan manager’s contract with the department, guidance provided by the department, and applicable federal and state law.
   2. (B) Provide the child, family, nonminor dependent, placing agency, foster family agency, and short-term residential therapeutic program, as applicable, with a spending plan report, consisting of at least an itemized monthly statement with a description of the goods, services, activities, and supports purchased using the Strengths Building Funding in the previous 30-day period, the amount spent for each good, service, activity, and support in the previous 30-day period, and the amount of funding that remains available under the Strengths Building Spending Plan.
   3. (C) Comply with the duties prescribed in the terms of the contract with the department, including, but not limited to, ensuring the Strengths Building Funding is available to the child or nonminor dependent for its intended use, consistent with the Strengths Building Spending Plan.

(e) The department shall be responsible for all of the following:

1. (1) Oversight of the contract or contracts with spending plan managers for spending plan management services, including the expenditure of the Strengths Building Funding.

2. (2) Development of program standards including, but not limited to, the following:

   1. (A) A standards of care framework for the program, including standards that promote increased child and family determination over decisions about the goods, services, activities, and supports that will best meet the strengths building objectives identified in the child’s or nonminor dependent’s IP-CANS assessment and, for an Indian child, that are consistent with prevailing social and cultural conditions and way of life of the Indian child’s tribe, and that are consistent with active efforts as described in subdivision (f) of Section 224.1.
   2. (B) Comprehensive guidance for child- and family-centered planning that supports the child and family in developing their Strengths Building Spending Plan and, for an Indian child, supports engagement with the child’s tribe in ensuring the Strengths Building Spending Plan is informed by prevailing social and cultural conditions and way of life of the Indian child’s tribe, and for a child who is 14 years and older, as is age appropriate, and for all nonminor dependents, support the child or nonminor dependent in leading the decisions related to the use of the Strengths Building Spending Plan.
   3. (C) Education or training and informational materials, for the child and family or nonminor dependent, the child and family team, placing agencies, foster family agencies, court-appointed advocates, and the spending plan manager, about the Strengths Building Child and Family Determination Program to ensure understanding of the principles of child and family determination, strengths building, comprehensive child- and family-centered planning, the planning process, self-determination principles in adolescent and young adult development, and the management of budgets, services, and staff and, for an Indian child, understanding of prevailing social and cultural conditions and way of life of the Indian child’s tribe. Any materials or information provided for children and nonminor dependents shall be age-appropriate and shall assist in preparing them for the child’s and family’s or nonminor dependent’s development of the Strengths Building Spending Plan.
   4. (D) Guidelines and training on funding resources for spending plan managers and providers of strengths building goods, services, activities, and supports, which shall include, but not be limited to, controls and documentation to determine when federal financial participation may be claimed if all state and federal requirements are met.
   5. (E) A description of the nature and scope of allowable or approved goods, services, activities, and supports designed to achieve strengths building objectives identified in the child’s or nonminor dependent’s Strengths Building Spending Plan.
   6. (F) The qualifications of the entity or entities who are eligible to contract with the department to manage Strengths Building Funding to ensure their ability to effectively serve as a spending plan manager.
   7. (G) A process by which the child and family team, consistent with clause (vi) of subparagraph (A) of paragraph (4) of subdivision (a) of Section 16501, shall assist with the resolution of disputes that may arise regarding the selection of goods, services, activities, and supports for the Strengths Building Spending Plan at the request of any member of the child and family team.
3. (3) Consultation with the State Department of Health Care Services, County Welfare Directors Association of California, Chief Probation Officers of California, tribes, child welfare advocates, providers, current or former foster children, nonminor dependents, caregivers, and other interested parties, in the development of the informational materials and guidelines described in paragraph (2). The development of the standards of care framework, educational, informational, and training materials, and guidelines relating to Indian children shall include consultation with federally recognized tribes.

(f) The placing agency shall do both of the following:

1. (1) Document the Strengths Building Spending Plan and the spending manager report in the child’s or nonminor dependent’s case plan, and the statewide child welfare information system, and provide a copy of the report to members of the child and family team, caregivers, the foster family agency, or short-term residential therapeutic program, if applicable, and for an Indian child, to the Indian child’s tribe.
2. (2) Provide information and support to the child and family or nonminor dependent, upon request, regarding goods, services, activities, and supports available in the community, and, if needed, support the child and family or nonminor dependent in accessing those goods, services, activities, and supports. The placing agency shall inform the child and family or nonminor dependent when the placing agency is legally responsible for covering the cost of goods, services, activities, and supports purchased with Strengths Building Funding and assist the child and family or nonminor dependent in selecting other goods, services, activities, and supports, including those of the nature and scope described in guidance provided by the department, that achieve the strengths building objectives identified in the child’s or nonminor dependent’s IP-CANS assessment.