BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 419
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          Date of Hearing:   April 2, 2013

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                AB 419 (Lowenthal) - As Introduced:  February 15, 2013
           
          SUBJECT  :  CalWORKs:  eligibility of hospitalized children

           SUMMARY  :  Redefines "temporarily absent" for purposes of  
          determining CalWORKs eligibility for children who are patients  
          in public hospitals.

          Specifically,  this bill  :  

          1)Eliminates the two-month time limit during which a child who  
            is a patient receiving surgical care in a public hospital can  
            be considered temporarily absent for purposes of CalWORKs  
            eligibility.

          2)Requires children that are patients receiving surgical care in  
            public or private hospitals to be considered temporarily  
            absent from the home for CalWORKs purposes, for the duration  
            of the hospital stay.

           EXISTING LAW  

          1)Establishes under federal law the Temporary Assistance for  
            Needy Families (TANF) program to provide welfare-to-work  
            services to eligible families.  In California, TANF funds for  
            welfare-to-work services are administered through the  
            California Work Opportunity and Responsibility to Kids  
            (CalWORKs) program.

          2)Establishes the maximum monthly amount of cash aid (maximum  
            aid payment) that can be provided to a family eligible for aid  
            under the CalWORKs program.

          3)Prohibits a child from receiving CalWORKs aid while he or she  
            is a patient receiving surgical care at a public hospital for  
            more than two months.

           FISCAL EFFECT  :  Unknown

           BACKGROUND









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           The California Work Opportunity and Responsibility to Kids  
          (CalWORKs) program provides monthly income assistance and  
          employment-related services aimed at moving children out of  
          poverty and helping families meet basic needs.  CalWORKs aid  
          payments are calculated based on family income and the number of  
          people in the assistance unit (AU).  Payments are not provided  
          to the family for any member who is not a part of the AU.  In  
          child-only CalWORKs cases, in which there is no aided adult,  
          children are the only recipients of aid.  However, if an adult  
          parent included in the AU experiences a prolonged hospital stay,  
          regardless of the type of hospital, the parent is deemed  
          "temporarily absent" from the household, and aid payments and  
          services continue to be provided to the whole family.   
          Similarly, if a child experiences prolonged care in a private  
          hospital, that child is considered to be temporarily absent, and  
          aid payments and services continue to be provided to the family  
          for that child.  Under current law, children who are receiving  
          care in a public hospital are only considered temporarily absent  
          from the household for up to two months, after which that child  
          is removed from the AU, and aid payments cease for that child.   
          If the AU consists of one parent and one child, and the child is  
          receiving care in a public hospital for more than two months,  
          aid payments and services are cut off for the whole family.

          There are many circumstances that can lead to a prolonged  
          hospital stay for a child.  Children's Hospital of Central  
          California indicates that there are several children, at any  
          given time, who have been hospitalized for longer than two  
          months for conditions such as cancer, consequences of premature  
          birth, or an automobile accident that necessitates an intense  
          rehabilitation and recovery period.  The Shriners Hospital of  
          Sacramento also confirms that children experience prolonged  
          treatment for conditions such as spinal cord injuries, burns and  
          serious orthopedic diagnoses that require a medical stay for  
          longer than two months. 

           Need for the bill 

           The author states:

               "There is no good reason for treating children placed in  
               public hospitals differently from children placed in  
               private hospitals.  Children who are so ill as to require a  
               lengthy hospital stay should be treated consistently,  
               regardless of the type of hospital in which they receive  








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               care.  Counties throughout the state of California have  
               found themselves dealing with family situations in which  
               the child requires hospitalization for a long period of  
               time.  While situations like this appear to happen  
               relatively rarely, it is devastating for low-income  
               families with very ill children to lose their primary  
               source of subsistence at the very moment they are dealing  
               with their child's health crisis.  This legislation would  
               ensure equal treatment of families with critically ill  
               children and not add to their burdens by prematurely  
               discontinuing their assistance if they are otherwise  
               eligible to continue receiving it."
               
           Arguments in support
           
          According to the County Welfare Directors Association (CWDA):

               "This disparity results in circumstances where a child's  
               family can become ineligible CalWORKs basic needs  
               assistance and services at the same time they are dealing  
               with the illness of their child.  While the child likely  
               remains eligible for Medi-Cal due to their low income, the  
               loss of the CalWORKs assistance can result in even greater  
               financial hardship, and even homelessness, for the family.   
               At a time when an already vulnerable low-income family is  
               struggling with the illness of a child, they should not be  
               faced with the loss of the assistance that they are  
               receiving to maintain their basic needs and a roof over  
               their heads."

           COMMENTS

           Families who are experiencing the anxiety emotional hardship  
          that comes with having a severely ill child undergo intensive  
          treatment in a hospital should not have to struggle with  
          additional financial stress and be thrust deeper into poverty  
          because their child is receiving treatment in a public hospital  
          instead of a private hospital.  With average CalWORKs grant  
          amounts for a family of three at $467, removal of a child's aid  
          due to prolonged care in a public hospital can result in a  
          substantial reduction in the family's grant.  There is no policy  
          or fiscal justification for unequal treatment of ill children  
          based on the type of hospital in which they receive medical  
          care. 









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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          County Welfare Directors Association of CA (CWDA) Sponsor
          Coalition of California Welfare Rights Organizations, Inc.  
          (CCWRO)
          Monterey County Board of Supervisors
          Urban Counties Caucus (UCC)
          Western Center on Law and Poverty (WCLP)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089