BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                       Senator S. Joseph Simitian, Chair


          BILL NO:       SB 786                                       
          S
          AUTHOR:        McCLINTOCK                                   
          B
          VERSION:       As Introduced February 22, 2005
          HEARING DATE:  April 12, 2005                               
          7
          FISCAL:        Public Safety; Appropriations                
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          6
          CONSULTANT:                                                
          Sue North
                                        

                                     SUBJECT
                                         
            Requiring Home Visits by District Attorney Investigators  
                           for All Welfare Applicants

                                     SUMMARY  

          SB 786 would establish a statewide requirement for all  
          welfare applicants to participate in a home visit from a  
          District Attorney's Office investigator within 10 days of  
          application.

                                     ABSTRACT  

          Current law requires welfare applicants to both fill out  
          required paperwork but also comply with various methods of  
          verifying facts related to their application.

          This bill would in all TANF applications require a home  
          visit be conducted by an investigator of the local District  
          Attorney's office within 10 days of application.

                                  FISCAL IMPACT  

          As a mandate this bill would fall under the provisions of  
          state mandated claims for all local costs associated with  
                                                         Continued---



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          its implementation on an on-going basis.  According to the  
          Department of Social Services (DSS) when the state funded  
          specific early fraud prevention efforts in 2000-2001, it  
          cost the state $7 million per year, or $108,000 per  
          District Attorney Investigator.  That program did not  
          envision home visits to all applicants, only those where  
          the verification documents were inconclusive or  
          contradictory.  There were 450,000 applicants for TANF  
          assistance during 2004.

                            BACKGROUND AND DISCUSSION  

          Home visits have been and continue to be appropriately part  
          of social work duties when working with families in need.   
          Indeed, whenever welfare fraud is suspected based upon a  
          given case, referrals to the fraud investigators in the  
          local District Attorney's Office is the established  
          protocol.  This bill, however, would establish a wholly  
          different standard by requiring law enforcement  
          investigators to conduct home visits of all applicants for  
          public assistance within 10 days of such application.

           Historical Framework
           
          In the early 1970s then President Nixon sponsored a welfare  
          reform package which separated income maintenance from  
          social services, ended the prohibition against men living  
          in a welfare household as a condition of eligibility under  
          then AFDC (now TANF), and federalized the old aid programs  
          which provided the support for the aged, blind and disabled  
          into one SSI program.

          As a result county eligibility workers (rather than social  
          workers) became the primary intake workers to determine  
          welfare eligibility.  The 'proof' of eligibility still  
          entails the same types of information: rent receipts, bank  
          statements, utility bills, proof of residency,  
          determination of ineligibility in other programs such as  
          Unemployment Insurance, Workers' Compensation, etc.

          Prior to the Nixon welfare reforms intake of applications  
          for welfare included some method to verify that a welfare  
          parent did not have a second adult (usually this meant  
          welfare mother not having a man in the house) who could  
          serve as the 'breadwinner' in the household.  In fact  




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          poverty itself was then not enough to qualify for welfare  
          -family deprivation was defined as poverty plus no second  
          parent able to work to provide for the children's needs.   
          Then welfare departments in the mid to late 1960s conducted  
          home visits to "catch" the existence of a second adult in  
          the household.  During one such initiative in Alameda  
          County a social worker, Benny Parrish, objected to being  
          required to conduct these family searches which, by  
          definition, were not being done in cases of suspected fraud  
          but were part of the eligibility determination process.

          In a landmark case on this subject, Benny Max Parrish v.  
          The Civil Service Commission of the County of Alameda (425  
          P.2d 223 --Cal. 1997), the California Supreme Court ruled  
          against the practice envisioned in this bill: namely, they  
          ruled against the constitutionality of targeting home  
          visits for those welfare applicants not suspected of fraud.  
           In that case the court went so far as to argue that the  
          unequal nature of the power held by those consenting to a  
          home visit and those asking for access is such that consent  
          to a legal search cannot be obtained.

          The similarities between the circumstances in the Parrish  
          case and this proposal are that the homes identified for  
          visits are not under suspicion of welfare fraud, that  
          refusal to allow entry does cause the welfare case to  
          trigger to a sanction, denial, penalty, etc.  In fact in  
          the protocol envisioned in SB 786 requires law enforcement  
          officials (in this case District Attorney Office  
          investigators), not welfare department social workers, to  
          conduct these interviews-a fact which even more profoundly  
          affects the ability of any welfare applicant to exercise  
          their constitutional right to refuse to participate.

          The impact of the questions raised from the Parrish case  
          still influences state welfare policy, notwithstanding the  
          fact that there have been additional welfare reforms since  
          the Nixon era.  The current regulations of the California  
          Department of Social Services prohibit "mass or  
          indiscriminate home visits" by fraud investigators.  In  
          this case, these are applicants by design NOT suspected of  
          fraud.

          The author argues that Project 100%, the San Diego project  
          which serves as the prototype for this bill, "recognizes  




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          that the efforts of Project 100% assure that public  
          assistance benefits are awarded to those who legitimately  
          require and are legally qualified to receive public  
          assistance."  He further argues that Project 100% has saved  
          taxpayers well over $4 million in three years and found a  
          fraud rate of about 25%.

          Opponents argue that this bill would be very costly to  
          implement and that the specific approach used in SB 786 is  
          one model of many that local counties use to detect fraud.   
          A recent home visit program in Los Angeles, as an example,  
          concluded a fraud rate of 6%.
           
          Comments:

              1.   What specific pieces of evidence are gathered which  
               can only be gathered by a home visit?  What unique  
               purpose is served by the home visit?
             2.   How do eligibility workers verify applications  
               today without these home visits?
             3.   Requests for further documentation from the  
               author's sponsors was not forthcoming due to their  
               concerns about pending litigation.  If there is a  
               court case pending on the legality of this project,  
               should the state enact a statewide mandate to do the  
               same?

                                    POSITIONS  

          Support:       San Bernardino County Safety Employees'  
          Benefit Association
                         San Diego County Office of  the District  
                    Attorney
                         California District Attorneys Association

          Oppose:   California Catholic Conference
                         California Immigrant Welfare Collaborative
                         California State Association of Counties
                         County Welfare Directors Association of  
                    California
                         Western Center on Law and Poverty       



                                        




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