BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 959
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 959 (Jones)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(June 1, 2011)  |SENATE: |38-0 |(September 7,  |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    HUM S.  

           SUMMARY  :  Improves the administration of a discontinuance notice 
          of benefits for recipients of the California Work Opportunity 
          and Responsibility to Kids program (CalWORKs).  Specifically 
           this bill  :

          1)Extends, by a month, the time period for CalWORKs recipients 
            to submit a late report without having to reapply because 
            their services were discontinued.

          2)Requires the Department of Social Services to obtain federal 
            approvals.

          3)Makes these provisions operative on July 1, 2012.

           The Senate amendments:  

          1)Make the bill operative on July 1, 2012.

          2)Requires federal approvals before implementation due 
            Supplemental Nutrition Assistance 
          Program rules.

          3)Add a new code section to the Welfare and Institutions Code to 
            avoid a chaptering out conflict with another bill.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version passed by the Senate.  
           
           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee:

           Major Provisions         2011-12      2012-13       2013-14     Fund
           








                                                                  AB 959
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          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 
          theFed/General
          impact                 initial year of implementation

          
           COMMENTS  :  According to the sponsor of this bill, the County of 
          San Diego (County), "This proposal can significantly reduce the 
          number of applications processed:  saving County staff workload 
          and allowing staff to spend more time on case maintenance and 
          other program issues."  The author believes that this bill is 
          necessary because the current rules governing the administration 
          of a discontinuance notice of benefits negatively affects the 
          county's efficiency and ability to improve services for CalWORKs 
          families.

           Existing law  :  A discontinuance notice is a form used by county 
          welfare departments to communicate with recipients that benefits 
          may be terminated for any number of reasons, including for 
          failure to submit a completed quarterly report, a household 
          composition change, and lack of verifications such as a pay 
          stub.  This bill is specific to a discontinuance notice of 
          benefits for failure to submit a quarterly report.

          CalWORKs recipients are required to report their income, address 
          change, and other personal circumstances to the county through 
          what is known as a quarterly report.  The purpose of the report 
          is to ensure that the recipient is still meeting eligibility 
          guidelines to continue to receive assistance.  Under existing 
          law, rules governing the timely submission of the report are 
          outlined in the following five steps:

          1)Recipients should receive a quarterly report form from the 
            county at the end of the second month of the quarterly 
            reporting period. 

          2)Recipients must then return the completed quarterly report 
            form by the 11th day of the following or third month of the 
            quarterly reporting period.

          3)If the form is not returned by the 11th day of the third 
            month, the recipient receives a notice from the county stating 








                                                                  AB 959
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            that benefits will be terminated at the end of the third 
            month.  

          4)Statute also mentions that prior to terminating benefits, the 
            county must attempt contact again, this time to make personal 
            contact to remind the recipient that the report is due.  

          5)If a completed report is received then the discontinuance 
            notice is rescinded and benefits are not terminated.

          This bill extends, by one month, the amount of time a recipient 
          has to correct any quarterly report problems.  During this extra 
          month aid is terminated; however, once the needed corrections 
          are made to the report, aid may be restored without having to 
          reapply or to interview.  This is important for two main 
          reasons:  1) the family does not have to go through the lengthy 
          and cumbersome process of re-application and interrupting their 
          workday to interview at the county welfare office; and, 2) the 
          county does not have to waste the time or expense of 
          re-processing the application, conducting an interview, and 
          fingerprinting the recipient all over again.  In fact, the 
          County states that processing just a re-application can average 
          three hours and take up to 45 days.

          The sponsor reports that the one month extension provided under 
          this bill is a grace period and benefits during this time are 
          not distributed.  As soon as the recipient provides a completed 
          report, the benefits will resume and be prorated to that date.


           Analysis Prepared by  :    Frances Chacon / HUM. S. / (916) 
          319-2089 

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