BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 959|
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                                 THIRD READING


          Bill No:  AB 959
          Author:   Jones (R)
          Amended:  8/31/11 in Senate
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  7-0, 06/28/11
          AYES:  Liu, Emmerson, Berryhill, Hancock, Strickland, 
            Wright, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 08/25/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg

           ASSEMBLY FLOOR  :  75-0, 06/01/11 - See last page for vote


           SUBJECT  :    CalWORKs and CalFresh:  reporting

           SOURCE  :     County of San Diego


           DIGEST  :    This bill provides a one-month extension to 
          participants in the California Work Opportunity and 
          Responsibility to Kids (CalWORKs) and CalFresh programs for 
          filing required reports in order to avoid re-application.  
          This bill provides that its provisions will not be 
          implemented until the Department of Social Services (DSS) 
          obtains all necessary federal approvals.

           Senate Floor Amendments  of 8/31/11 clarify what benefits 
          may be received when reports are submitted late.

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           ANALYSIS  :    Existing law:

          1.Establishes that counties must provide cash assistance 
            and other services to needy families CalWORKs using a 
            combination of federal, state and county funds.  CalWORKs 
            uses federal Temporary Assistance to Needy Families block 
            grants for partial funding of the program.

          2.Establishes that counties are responsible for 
            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 extends the amount of time provided to a 
          recipient to submit his or her completed CalWORKs and 
          CalFresh form by one month, providing that if a recipient 
          submits a completed report form within the month following 
          the discontinuance of benefits, the county shall restore 
          benefits to the household without requiring a new 
          application or interview, and shall prorate benefits from 
          the date that the household provides the completed form. 
          The provisions of this bill would be contingent upon 
          obtaining all necessary federal approvals from the federal 
          Food and Nutrition Service (FNS). Absent such a waiver, 
          reapplications to CalFresh and CalWORKs for late reporting 
          would continue as under existing law. 

          Providing an additional month to submit the form and 
          alleviating the requirement to re-apply and interview will 
          result in county administrative workload relief of an 
          unknown but potentially significant amount. Information 
          from San Diego County indicates approximately 90 
          re-applications per month (5 percent) are received within 
          30 days of discontinuance. Extrapolating the five percent 
          statewide results in approximately 1,100 recipients 

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          statewide per month who file late reports within 30 days of 
          discontinuance and who could potentially be impacted by the 
          provisions of this bill.  The administrative cost to 
          restore benefits is unknown but would likely be 
          significantly less than intake cost of $198 per case for 
          CalWORKs and $51 per case for CalFresh ($274,000 per 1,100 
          cases). 

          Implementation of the bill will be July 1, 2012.

           Background
           
          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 
          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

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           Major Provisions                2011-12     2012-13    
           2013-14   Fund
           One-month reporting                               Unknown; 
          potentially significant                                
          Fed/Gen/Loc
            extension         administrative cost savings in the 
                              hundreds of thousands of dollars 
          annually

          CalWORKs benefit                                       
          One-time grant shift of up to $495 in the              
          Fed/General
            impact            initial year of implementation

           SUPPORT  :   (Verified  8/29/11)

          County of San Diego (source) 
          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 

           ARGUMENTS IN SUPPORT  :    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 
          and improve service to needy families.


           ASSEMBLY FLOOR  :  75-0, 06/01/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 

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            Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            Perea, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wagner, Wieckowski, Yamada, 
            John A. Pérez
          NO VOTE RECORDED:  Garrick, Gorell, Jeffries, V. Manuel 
            Pérez, Williams


          CTW:nl  9/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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