BILL ANALYSIS                                                                                                                                                                                                    Ó






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 1640                                     
          A
          AUTHOR:        Mitchell                                    
          B
          VERSION:       May 25, 2012
          HEARING DATE:  June 26, 2012                               
          1
          FISCAL:        Yes                                         
          6
                                                                     
          4
          CONSULTANT:    Mareva Brown                                
          0

                                        

                                     SUBJECT
                                         
                      CalWORKs benefits: pregnant mothers

                                     SUMMARY  

          Requires CalWORKs aid to be paid to a pregnant mother who 
          is 18 years of age or younger at any time after 
          verification of pregnancy, regardless of whether she is 
          eligible for the Cal-Learn Program. Current law extends 
          benefits only in the third trimester of pregnancy, or upon 
          verification of pregnancy if the pregnant mother is a 
          participant in Cal-Learn.

                                     ABSTRACT  

           Existing law

           1.Establishes, under federal law, the Temporary Assistance 
            for Needy Families (TANF) program, providing block grants 
            to eligible states as part of a welfare-to-work program 
            for qualified low-income families.

          2.Establishes, under state law, the CalWORKs program, which 

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            is funded through a combination of state and county funds 
            and federal funds received through the TANF program, to 
            provide eligible low-income families cash assistance and 
            employment services. (WIC 11200 et seq.)

          3.Requires payment of CalWORKs aid to a pregnant mother in 
            a family without a needy child qualified for aid for the 
            month in which the birth is anticipated and for the 
            three-month period immediately prior to the month in 
            which the birth is anticipated. (WIC 11450 (b))

          4.Establishes the Cal-Learn program to provide intensive 
            case management, support services, a comprehensive range 
            of health and social services and other services to 
            teenagers under age 19 without a high school diploma or 
            equivalent, who are pregnant or parenting). (WIC 11331)

          5.Requires that teens, in order to qualify for aid under 
            Cal-Learn, participate in school on a full-time basis 
            until earning her high school diploma or its equivalent, 
            as specified. (WIC 11331.5)

          6.Requires payment of CalWORKs aid to a pregnant mother 
            without other children upon verification of pregnancy if 
            the pregnant teen also is eligible for the Cal-Learn 
            Program. (WIC 11450 (b)(1))

          7.Requires that CalWORKs aid be paid to eligible pregnant 
            teens pursuant to this section only when the Cal-Learn 
            program is operative. (WIC 11450 (b)(2))
           
          This bill

           1.Requires that CalWORKs benefits be provided to any 
            eligible pregnant woman aged 18 or younger at any time 
            after verification of pregnancy.

          2.Eliminates the requirement that pregnant women be 
            eligible for the Cal-Learn program in order to qualify 
            for CalWORKs aid under this section.

                                  FISCAL IMPACT  

          An Assembly Appropriations analysis projects annual 
          CalWORKs grant and administrative costs of approximately 





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          $500,000 (Temporary Assistance for Needy Families/General 
          Fund (TANF/GF)) to the extent that 500 young women under 
          the age of 18 receive an additional three months of 
          CalWORKs benefits. Additionally, to the extent eligible 
          pregnant women early in their pregnancy receive three 
          months of CalFresh benefits that they had not otherwise 
          applied for, this bill could bring in an additional 
          $220,000 in federal food and nutrition benefits.  The 
          administrative costs for those cases would be approximately 
          $120,000 ($60,000 GF).

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill
           
          According to the author very young, poor, pregnant 
          women who don't receive grant income and uninterrupted 
          supportive services are more likely to experience 
          premature and low-birth-weight babies. Their children 
          are more likely to experience health and behavioral 
          challenges which may have life-long impacts on child 
          development.  These young women are experiencing 
          multiple stressful situations during their 
          pregnancies. The author cites studies that indicate 
          that maternal stress can negatively affect pregnancy 
          and have long-term impacts on the baby's development 
          and well-being. 

          This bill ensures that pregnant girls aged 18 or 
          younger who have no other children, and are not living 
          with a parent who is receiving CalWORKs benefits, can 
          receive aid as soon as their pregnancy is verified. 

          This bill has been substantially amended from versions 
          heard in the Assembly, which would have provided 
          eligibility to CalWORKs and Medi-Cal for women aged 18 
          and older upon verification of pregnancy, rather than 
          beginning in the third trimester. This version of the 
          bill, which was amended to reduce projected costs, 
          focuses solely providing CalWORKs eligibility for 
          pregnant teens upon verification of pregnancy.

           Effect of Poverty on Pregnancy

           Various research reports have suggested a correlation 





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          between poverty and low birth weights and between poverty 
          and psychological stress. 

          A 2008 study published in Health Psychology additionally 
          showed correlations between the psychological state of a 
          pregnant mother and the health of the fetus. Mothers 
          experiencing a high amount of stress during pregnancy 
          deliver their infants earlier and at lower birth weights. 
          Children who are born too early and who weigh less at birth 
          are at a higher risk for "infant mortality, infant 
          morbidity, and health problems that may persist into 
          childhood, adolescence and adulthood."<1> The study also 
          found that pregnancy-specific stress - related to concern 
          about the pregnancy and associated life changes - is an 
          even more powerful contributor to birth outcomes than 
          general stress.

          Resilience among children in difficult environments was 
          shown to be improved with parental management and support 
          skills, according to a 1997 study. The study found that 
          exposure to stress can have detrimental effects on children 
          and adolescents, but that a child's resilience can mitigate 
          some of those effects. It found that prenatal and primary 
          care can further moderate the effects of stress. Long-term 
          stressors include deprivation, abuse, and poverty. <2>

          According to researchers at Brown University, large 
          developmental delays and limitations in function were 
          common among children with very low birth weights. The 
          study, published in the journal, Clinics in Perinatology in 
          2002, found that minority status and living in a household 
          headed by a single mother further worsen the disadvantages 
          associated with a very low birth weight and that that TANF 
          eligibility requirements may increase difficulty in 
          obtaining prenatal and other medical services for mothers 
          -------------------------
          <1> Label, Marci, et. Al. "Pregnancy-Specific Stress, 
          Prenatal Health Behaviors, and Birth
          Outcomes." Health Psychology 27.5 (2008): 604 -615.
          <2> Smith, Carolyn and Bonnie E. Carlson. "Stress, Coping, 
          and Resilience in Children and Youth."Social Service Review 
          71.2 (1997): 231-256.








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          and children in need.<3>
           
          California's teen pregnancy rate

           Teen pregnancies have fallen to their lowest rate since 
          1991, according to the California Department of Public 
          Health. In 2010, there were 29 births for every 1,000 
          females aged 15-19. This was a drop from a rate of 32.1 
          births in 2009 and from a record high rate of 70.9 births 
          in 1991. 

          Nationally, in 2010, California ranked 22nd among all 
          states in birth rates among teens aged 15-19,  and was 
          below the national average, according to data compiled by 
          the Kaiser Family Foundation.
           
          Other states

           In its "Welfare Rules Databook: State TANF Policies as of 
          July 2010," the Urban Institute compares state policies on 
          providing welfare-to-work benefits to pregnant women with 
          no other children. Of 31 states that provide benefits to 
          this population, 20 provided benefits earlier than 
          California's third trimester policy and eight states, 
          including New York and Illinois, provide benefits as early 
          as the first month of pregnancy.

           Related legislation

           SB 35 (Committee on Budget), Chapter 69, Statutes of 1993, 
          and SB 1078 (Watson), Chapter 1252, Statutes of 1993, 
          established the Cal-Learn Program.
           
          SB 72 (Committee on Budget and Fiscal Review) Chapter 8, 
          statutes of 2011, the human services trailer bill, made the 
          Cal-Learn Program inoperative from July 1, 2011, to June 
          30, 2012, with the exception of the payment of supplements 
          and bonuses to eligible participants. 

           Arguments in support

           According to the Western Center on Law and Poverty, the 
          -------------------------
          <3> "Family factors and social support in the developmental 
          outcomes of very low-birth weight children," Dennis Hogan, 
          JM Park, Population Studies and Training Center, Brown 
          University, Providence, Rhode Island. Clin Perinatol. 2000 
          Jun;27(2):433-59.




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          bill's co-sponsor, California's comprehensive approach to 
          pregnancy prevention among teens has put California in the 
          forefront of reducing teen pregnancy. "Still, in 2009, 
          nearly 48,000 babies were born to teen moms, some of whom 
          came from low-income homes. Teen moms who are poor and lack 
          parental support should not have to wait until their third 
          trimester to get basic needs grants to prevent hunger and 
          homelessness and the support services to help them succeed 
          despite the challenges of being a young mother. ? AB 1640 
          establishes a very modest baseline of support for a very 
          vulnerable population."

           Arguments in opposition

           The state Department of Finance in April issued a letter of 
          opposition to the bill, noting that the bill would expand 
          cash aid to a number of pregnant women. Since then, the 
          bill has been substantially amended to remove a requirement 
          to provide aid for adult pregnant women upon verification 
          of pregnancy. DOF notes that the April letter is 
          out-of-date, but does not have an updated position on the 
          bill.
           




          Comments

          Under current law, a pregnant teen with no other eligible 
          children in the household is not eligible for basic needs 
          cash assistance through CalWORKs until the third trimester, 
          unless she is eligible for the Cal-Learn program.   

          The Cal-Learn program has been suspended in the budget 
          since July 1, 2011, although the suspension is set to 
          sunset on June 30, 2012. The Governor's proposed 2012-13 
          budget eliminates the Cal-Learn program entirely, except 
          for stipends to be paid to successful graduates. 

          This bill would therefore do one of two things:
             a)   If the Governor's elimination is accepted or the 
               Cal-Learn program suspension is continued past the 
               current sunset date, the bill would require that all 
               otherwise eligible pregnant teens not living in an 





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               assisted household become eligible for CalWORKs 
               assistance upon verification of their pregnancy.

             b)   If the Governor's elimination is rejected and the 
               Cal-Learn suspension sunsets, the bill would require 
               that pregnant teens who do not qualify for assistance 
               through the Cal-Learn program but are eligible for 
               CalWORKs are able to receive benefits. It also ensures 
               immediate access to CalWORKs aid if the Cal-Learn 
               program is phased in over time. 
                                         

                                  PRIOR VOTES
           
          Assembly Floor:     50 - 24
          Assembly Appropriations:12 - 0
          Assembly Human Services:  4 - 2 

                                         
                                   POSITIONS  

          Support:       California Black Women's Health Project 
          (sponsor)
                         Western Center on Law and Poverty (sponsor)
                         American Federation of States, County and 
                         Municipal Employees California Association 
                         of Food Banks
                         California Catholic Conference, Inc.
                         California Communities United Institute
                         California Food Policy Advocates
                         California Hunger Action Coalition
                         California WIC Association
                         Children Now
                         Catholic Charities of California United
                         Coalition of California Welfare Rights 
                         Organizations, Inc.
                         California State Association of Counties
                         California Welfare Directors Association
                         East Bay Community Law Center
                         Laborers' Local 777
                         Laborers' Local 792
                         Legal Services for Prisoners with Children
                         National Association of Social Workers
                         National Health Law Program
                         Public Counsel Law Center





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                         St. Anthony's Foundation
                         San Diego Hunger Coalition
                         Santa Clara County Board of Supervisors
                         United Ways of California
                         Zero to Three


          Oppose:   California Department of Finance






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