BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1471|
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THIRD READING
Bill No: AB 1471
Author: Assembly Budget Committee
Amended: 6/26/12 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 11-5, 6/27/12
AYES: Leno, Alquist, DeSaulnier, Evans, Hancock, Liu,
Lowenthal, Negrete McLeod, Simitian, Wolk, Wright
NOES: Emmerson, Anderson, Fuller, Gaines, La Malfa
ASSEMBLY FLOOR : Not relevant
SUBJECT : Budget Act of 2012: Human Services Omnibus
SOURCE : Author
DIGEST : This bill contains the necessary statutory and
technical changes to implement the Human Services
provisions of the Budget Act of 2012.
ANALYSIS : This bill includes the following provisions:
1. CalWORKs : Makes changes to the California Work
Opportunity and Responsibility to Kids (CalWORKs)
program that result in savings of approximately $469.1
million General Fund, as follows:
A. Changing Time Limits and Work Participation
Requirements:
CONTINUED
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Modifies the number of welfare-to-work
participation hours to conform to current federal
requirements and eliminates requirements related to
participation in core and non-core activities.
Changes welfare-to-work requirements applicable
to CalWORKs recipients, on or after January 1, 2013,
by creating a new 24-month time limit. Unless
otherwise exempt from participation, applicants and
recipients would receive 24 months of
welfare-to-work services and activities under
current state rules, and would then be required to
meet federal participation requirements to access
the remainder of the months toward their 48-month
lifetime time limit. Provides that this 24-month
time limit is a prospective change, and that months
of assistance prior to January 1, 2013 shall not be
counted toward the 24-month time limit.
Further, specifies that months of assistance
during which the recipient has been sanctioned or
excused from participation for good cause, qualifies
for an exemption, or is a custodial parent who is
under 20 years of age and who has not earned a high
school diploma or its equivalent, do not count
toward the 24-month time limit. Additionally,
months during which the recipient is participating
in job search or assessment, is in the process of
appraisal, or is participating in the development of
a welfare-to-work plan, as specified, do not count
toward the 24-month time limit. Finally, months in
which the recipient is meeting federal participation
requirements do not count as a month of activities
for purposes of the 24-month time limit.
Provides for notice requirements to recipients
regarding the 24-month time limit that explain the
process by which recipients may claim exemptions
from, and extensions to, the 24-month time limit
when the individual applies for aid, during the
recipient's annual redetermination, and at least
once after the individual has participated for a
total of 18 months, and prior to the end of the 21st
month, that count toward the 24 month time limit.
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Requires the Department of Social Services
(DSS), in consultation with stakeholders, to convene
a workgroup to determine further details of the
noticing and engagement requirements for the 24
month time limit, and to instruct counties by way of
an all-county letter, followed by regulations, no
later than 18 months after the effective date of
January 1, 2013.
Provides that counties may extend assistance
for no more than 20 percent of recipients, as
specified, upon expiration of the 24-month time
limit. Requires DSS to consult with stakeholders
and to develop and issue instructions on the process
for implementing these extensions and calculating
this 20 percent limitation.
With respect to extensions of the 24-month time
limit, allows recipients to submit evidence that the
following circumstances exist: a) is likely to
obtain employment within six months; b) has
encountered unique labor market barriers preventing
employment; c) has achieved satisfactory progress in
an educational or training program; d) needs
additional time to complete a welfare-to-work
activity included in the case plan due to a
diagnosed learning or other disability; or e) has
submitted an application to receive SSI disability
benefits and is awaiting an established hearing
date. Subject to the 20 percent limitation
described above, requires counties to grant
extensions of time under these circumstances, unless
they determine that the evidence presented does not
support the existence of the circumstances. If the
county makes such a determination and there is a
hearing disputing the denial of an extension,
establishes that the burden of proof is on the
county to establish that the extension was not
justified.
Provides that a county may, again subject to
the 20 percent limitation, grant an extension of the
24-month time limit if, as a result of information
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already available to a county, the county identifies
that a recipient meets the circumstances described
above.
States that it is the Legislature's intent that
the state shall work with the counties and other
stakeholders to ensure that the extension process
will be implemented with minimal disruption to the
impending completion of welfare-to-work plans for
recipients.
Provides that for a recipient who is not exempt
or granted an extension pursuant to the above, and
who does not meet the federal participation
requirements between their 24th and 48th month time
limits, the same policies regarding the removal of
the adult portion of the grant and opportunities for
engagement and curing are available as those
applicable to sanctions pursuant to current law.
For purposes of this new policy, however, states
that the procedures referenced shall not be
described as sanctions.
A. Changes Related to Exemptions from Work
Participation Requirements:
Extends the current temporary exemptions
provided in relation to the reduction in the county
single allocation from July 1, 2012 until January 1,
2013, when these exemptions will sunset. These
temporary exemptions are provided to a parent or
other relative who has primary responsibility for
personally providing care to one child who is from
12 to 23 months of age, inclusive, or 2 or more
children who are under 6 years of age. These
exemptions are commonly referenced as "temporary
young child" exemptions.
States that reduced funding, including a
reduction to the county single allocation, for the
period between July 1, 2012 and January 1, 2015,
will result in insufficient resources to provide the
full range of welfare-to-work services during that
time period.
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Extends through January 1, 2015, the option for
a county to redirect funding appropriated for
CalWORKs mental health employment assistance
services and CalWORKs substance abuse treatment
services, from and to other CalWORKs employment
services that are necessary for individuals to
participate in welfare-to-work activities.
Requires counties to reengage recipients who
had received the temporary young child exemption in
welfare-to-work activities starting January 1, 2013
and over a period of two years (unless those
recipients are otherwise exempt from participation).
Recipients will not be required to participate
until the county welfare department reengages them.
Creates a similar, ongoing, one-time young
child exemption for caregivers of a child 24 months
of age or younger, and provides that a month during
which this exemption applies would not be counted as
a month of receipt of aid for the recipient.
A. Other Changes:
Requires DSS to convene a workgroup to identify
best practices and other strategies to improve early
engagement and barrier removal efforts, as
specified, and to report back to the Legislature by
January 10, 2013 regarding its related actions and
recommendations.
Requires DSS to annually update the Legislature
regarding the changes made by this bill to the
CalWORKs program, and to contract with an
independent, research-based institution for an
evaluation and written report, with specified
contents, which would be provided to the Legislature
by October 1, 2017.
Exempts a CalWORKs assistance unit that does
not include an eligible adult from periodic
reporting requirements other than annual
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redetermination and makes corresponding changes.
Restores the earned income disregard policy to
that which existed prior to the enactment of the
2011-12 Budget Act, allowing a participant to retain
$225 and $.50 of each dollar thereafter of monthly
earnings (altering the 2011-12 policy that allows
retention of $112 and $.50 of each dollar). This
policy will apply to the entire caseload with
earnings and will take effect October 1, 2013.
Delays the effective date for the Work
Incentive Nutritional Supplement (WINS) program
until January 1, 2014 and reduces the amount of the
WINS benefit, which is an additional food assistance
benefit for each eligible food stamp household, from
$40 to $10 per month. Correspondingly, delays dates
associated with the development of policy toward a
pre-assistance employment readiness system (PAERS)
program and other options that may benefit the
CalWORKs program, as specified.
1. Phase-in and Reporting Related to Cal-Learn Program:
Restores the operation of intensive case management
services provided through the Cal-Learn program within
CalWORKs. State funding for these services was
suspended during the 2011-12 fiscal year. From July 1,
2012 to March 31, 2013, inclusive, authorizes counties
to provide full or partial year funding, depending on
the pace of their progression to full implementation,
by April 1, 2013. Additionally requires the Department
of Social Services (DSS) to annually report specified
information related to the program to the budget
committees of the Legislature. The phase-in approach
included in this bill provides for savings in 2012-13
of approximately $10 million GF.
2. Child Support Payment Trust Fund : For the 2012-13
fiscal year only, authorizes money in the Child Support
Payment Trust Fund accounts to be invested in specified
securities or alternatives that offer comparable
security, including mutual funds and money market
funds. The provision does not authorize an investment
or transfer that would interfere with the objective of
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the Child Support Payment Trust Fund.
3. Continues Suspension of Child Support Incentive
Payments : Extends the suspension of performance and
health insurance-related incentive payments to local
child support agencies (LCSAs) through the 2014-15
fiscal year. Existing law, in the absence of a
suspension, would award the ten highest performing
counties with an additional share of collections and
require the state to provide payments to LCSAs of $50
per case for obtaining 3rd-party health coverage or
insurance of Medi-Cal beneficiaries.
4. Continues Suspension of Fingerprint Fee Exemption :
Extends the suspension of a prohibition on the state
charging fees for fingerprinting in order to conduct
background checks of applicants for licenses to
operate specified community care facilities that serve
children.
5. Changes to Implementation Date for Sales Tax on
Support Services : Delays the date when the state can
implement existing law related to the extension of the
sales tax to apply to support services (i.e.,
homecare)- from July 1, 2010 to January 1, 2012. Under
existing law, corresponding supplementary payments
would be made to specified providers of those services.
6. Repeals Sections Related to Statewide Eligibility and
Enrollment Processing : Repeals a statute that was
enacted as part of the 2009 Budget Act that required
the Administration to develop a statewide eligibility
and enrollment determination process for CalWORKs,
Medi-Cal, and Supplemental Nutrition Assistance Program
(SNAP, also known as CalFresh or food stamps) programs,
and directed the development of a comprehensive plan
with respect to a centralized eligibility and
enrollment process. Subsequent statutes changes
related to the Statewide Automated Welfare System have
obviated these requirements. Thus, this repeal
resolves potential statutory conflicts with respect to
the state's information technology systems and
enrollment processes.
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7. Moratorium on Group Home Rate-Setting : Permanently
extends the moratorium on the licensing of new group
homes or approvals of specified changes for existing
providers, with some allowable exceptions. This
moratorium was initially established as a part of the
2010 Budget Act. New provisions further limit, for one
year, exceptions for any programs with rate
classification levels below 10 to those associated with
a program change.
8. Cost-of-Living Adjustment for Dual Agency Rates :
Requires annual adjustment by changes in the cost of
living (as measured by the California Necessities
Index) of rates payable for care and supervision of
children who are dually eligible for the Child Welfare
Services and Developmental Services systems. This
change is consistent with changes made last year to
foster family home and related rates in response to
litigation. Under the provisions of this bill, the
change to dual agency rates would begin retroactively
with the 2011-12 fiscal year.
9. Repeal of Medication Dispensing Machine Pilot :
Repeals statute that required the Department of Health
Care Services to establish a medication dispensing
machine pilot project for certain at-risk Medi-Cal
recipients. This pilot project was also associated
with a reduction, with some exceptions, in authorized
hours of service for In-Home Supportive Services (IHSS)
recipients that would have been triggered if savings
from the pilot had not been achieved. This bill would
repeal both of these policies.
10. Extension of 3.6 Percent Reduction in Authorized IHSS
Hours : Extends, for the 2012-13 fiscal year, an
existing reduction of 3.6 percent in authorized IHSS
hours that is otherwise scheduled to sunset on July 1,
2013. This reduction is anticipated to save
approximately $58.9 million GF in 2012-13.
11. Criminal Offender Record Information (CORI) Sharing :
Authorizes local public authorities or nonprofit
consortia to share CORI background reports with DSS in
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specified circumstances. More specifically, allows the
public authority or nonprofit consortia to share this
information when an individual who is applying to
become an IHSS provider has requested from the
department an exception to a prohibition on his/her
ability to become a provider because of his/her
criminal record.
12. Rate-setting for IHSS Public Authorities : Extends by
one year, to the 2013-14 fiscal year, the required time
by which DSS, in consultation with designated
stakeholders, must develop a new rate-setting
methodology for estimating the costs of public
authorities with respect to administration of specified
requirements related to the state's IHSS program.
13. Rehabilitation Appeals : Eliminates the
Rehabilitation Appeals Board, which currently serves as
the entity which hears appeals by applicants for, or
clients of, programs provided by the Department of
Rehabilitation. Instead provides for fair hearings to
be held before an impartial hearing officer and
establishes standards, training, and due process
requirements related to those fair hearings.
14. Kids' Plates Funding : Amends existing requirements
related to distribution of funds in the Child Health
and Safety Fund that are derived from the Have a Heart,
Help Our Kids specialized license plate program (Kids'
Plates). Specifically, redirects $501,000 from child
abuse and injury prevention programs to support
specific DSS responsibilities related to child day care
licensing.
15. Child Welfare Services Automation System : Requires
DSS to use specified funding included in the 2012
Budget Act for the next steps necessary to move forward
with the recommendation of the Child Welfare Automation
Study Team (CWAST) to proceed toward procuring a new
information technology system to replace the existing
Child Welfare Services/Case Management System
(CWS/CMS). Further, requires the Office of Systems
Integration (OSI) and the department to report the
results of these activities, in addition to key
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milestones and anticipated timelines, to the
Legislature by March 1, 2013, for review during 2013
budget hearings.
16. Assessment of Automation Costs : Requires DSS and the
Office of Systems Integration (OSI) to have a qualified
3rd party conduct a cost-reasonableness assessment of
specified costs related to changes in the Statewide
Automated Welfare System (SAWS). More specifically,
requires this assessment with respect to costs that
will be proposed by the project vendor in order to
consolidate two of the state's three existing consortia
systems into one new consortium (leaving the state with
a two-consortium system). This migration will
consolidate data and functionality for the counties
currently served by Consortium-IV into the Los Angeles
Eligibility, Automated Determination, Evaluation and
Reporting (LEADER) Replacement System, which is newly
being developed. The cost reasonableness assessment is
intended to assist the state in determining whether the
proposed overall costs for this migration are within
range of reasonableness, based on specified factors.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
CTW:n 6/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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