BILL ANALYSIS Ó SENATE HUMAN SERVICES COMMITTEE Senator Carol Liu, Chair BILL NO: AB 959 A AUTHOR: Jones B VERSION: May 27, 2011 HEARING DATE: June 28, 2011 9 FISCAL: Appropriations 5 9 CONSULTANT: Brown SUBJECT CalWORKs and CalFresh: reporting SUMMARY This bill would provide a one-month grace period to participants in the CalWORKs and CalFresh programs for filing required quarterly reports in order to avoid re-application. ABSTRACT Current law 1) Establishes that counties must provide cash assistance and other services to needy families through the California Work Opportunity and Responsibility to Kids program (CalWORKs) using a combination of federal, state and county funds. CalWORKs uses federal Temporary Assistance to Needy Families (TANF) block grants for partial funding of the program. 2) Establishes that counties are responsible for Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 959 (Jones) Page 2 distributing funds to needy families from federal Supplemental Nutrition Assistance Program (SNAP), formerly called food stamps. California distributes SNAP funds through its CalFresh program. 3) Requires quarterly submission of eligibility information by participants in both programs. 4) Sanctions CalWORKs beneficiaries who do not submit their quarterly reports on time by dis-enrolling them from the program. To renew eligibility, current law requires recipients to re-apply for the program. This bill 1) Allows recipients who have been discontinued for not submitting their quarterly reports to submit the required forms within a month after discontinuance without an interruption in enrollment. 2) Requires counties to pro-rate benefits to recipients from the date they submit the completed forms forward for the month after discontinuance of benefits. FISCAL IMPACT According to the Assembly Appropriations Committee, to the extent counties are not processing re-applications for recipients who were late in submitting receipts, there would be administrative savings in both the CalWORKs and CalFresh programs. BACKGROUND AND DISCUSSION Under current law, CalWORKs and CalFresh recipients are required to report their income, address change, prospective income earnings, and other personal circumstances to their county in what is known as a quarterly report. These reports are provided to recipients by county workers at the end of the second month of the STAFF ANALYSIS OF ASSEMBLY BILL 959 (Jones) Page 3 three-month reporting period. Reports are due back to the county by the 11th day of the third month of the reporting period. Recipients who do not have their forms turned in by the 11th day of the third month receives a notice from the county warning that benefits will be terminated at the end of the third month if the form is not received. Prior to terminating benefits, state law requires counties to attempt to contact recipients personally to remind them that the forms are due. When a completed form is turned in, the discontinuance notice is rescinded and benefits continue. If the form is not received by the last day of the third month, benefits are terminated. Recipients who wish to continue benefits are required to re-apply, a process which includes an in-person interview, fingerprinting, and submission of a new application. The bill's purpose This bill is intended to avoid a costly and time-consuming re-application process for recipients of CalWORKs and CalFresh who fail to submit their required paperwork on time. Sponsored by San Diego County, the bill gives recipients a grace period of one-month to submit the paperwork without a required re-application and interview, saving county administration funds and aiding families by keeping them engaged in the program. This bill would not reimburse recipients whose paperwork is turned in late for the days missed between the last day of the third month and the date paperwork is turned in. However, once paperwork is turned in, the month's benefits are prorated from that date forward, and the discontinuance notice is rescinded. Arguments in support The bill's sponsor, San Diego County, writes that processing a re-application can average three hours and take up to 45 days, including conducting an interview, fingerprinting the recipient and submitting paperwork. The county states that it averages 90 CalWORKs reapplications within each 30-day discontinuance period, or 1,080 re-applications annually. It projects this bill would save 270 hours of staff time per month, improve customer service STAFF ANALYSIS OF ASSEMBLY BILL 959 (Jones) Page 4 and improve service to needy families. Votes in the Assembly Human Services: 6-0 Appropriations: 17-0 Floor: 75-0 QUESTIONS AND COMMENTS CalFresh transitional benefits - suggested amendment Per the Department of Social Services, when CalFresh recipients are removed from eligibility, they automatically are enrolled in a five-month transitional benefit program. If they submit their paperwork late, and are reinstated mid-month, DSS said this bill could result in beneficiaries receiving both transitional CalFresh benefits and the pro-rated benefits within the month they turn in paperwork. After paperwork is turned in, benefits can be modified beginning the following month. The author may want to add language specifying that this bill may not result in beneficiaries being paid CalFresh transitional benefits and pro-rated CalFresh benefits within the same month. POSITIONS Support: County of San Diego (sponsor) California Association of Food Banks California Hunger Action Coalition California State Association of Counties County of Santa Clara Board of Supervisors County Welfare Directors Association National Association of Social Workers, California Chapter Urban Counties Caucus Western Center on Law and Poverty Oppose: None received -- END -- STAFF ANALYSIS OF ASSEMBLY BILL 959 (Jones) Page 5