BILL ANALYSIS                                                                                                                                                                                                    Ó






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                          Senator Leland Y. Yee, Chair


          BILL NO:       AB 419                                       
          A
          AUTHOR:        Lowenthal                                    
          B
          VERSION:       February 15, 2013
          HEARING DATE:  June 11, 2013                                
          4
          FISCAL:        Yes                                          
          1
                                                                      
          9
          CONSULTANT:    Tepring Piquado
                                        

                                     SUBJECT
                                         
                             CalWORKs: eligibility

                                     SUMMARY  

          This bill repeals the code section that limits CalWORKs aid  
          to only two months when a child is absent from the home and  
          a patient in a public hospital. This bill removes the two  
          month cap and extends those benefits for the duration of  
          the hospital stay.

                                     ABSTRACT  

           Existing law:

              1)   Establishes the Temporary Assistance for Needy  
               Families (TANF) program. (42 USC § 601 et seq.)

             2)   Provides in California statute for the allocation  
               of funds for cash assistance and other social services  
               for low-income families through the California Work  
               Opportunity and Responsibility to Kids (CalWORKs)  
               program. Under this program, each county provides  
               assistance through a combination of state, county  
               funds and federal TANF funds. (WIC § 10530)

                                                         Continued---



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             3)   Prohibits a state from using any part of the TANF  
               grant to provide assistance to a family, unless the  
               family includes a minor child who resides with the  
               family or a pregnant woman. (42 USC § 608)

             4)   Prohibits a state to which a TANF grant is made  
               from providing assistance for minor children who are  
               absent from the home for a significant period of time.  
               (42 USC § 608 (10))

             5)   In general, prohibits a state to which a TANF grant  
               is made from using any part of the grant to provide  
               assistance for a minor child who has been, or is  
               expected by a parent of the child to be, absent from  
               the home for a period of 45 consecutive days or, at  
               the option of the state, such period of not less than  
               30 and not more than 180 consecutive days, as  
               specified in the state plan. (42 USC § 608 (10))

             6)   Grants states the authority to establish good cause  
               exceptions to providing benefits for minor children  
               who are absent from the home for a significant period,  
               if such exceptions are provided for in the state plan.  
               (42 USC § 608 (10))

             7)   Provides in state law that no child shall receive  
               aid while he is a patient in a public hospital, except  
               with respect to temporary medical or surgical care not  
               exceeding two calendar months, in which event the  
               child shall be eligible to receive no more than two  
               monthly warrants after becoming a patient. (WIC §  
               11269)

             8)   Prohibits assistance from being paid to a parent or  
               caretaker who fails to notify the state agency of the  
               absence of child by the end of a five-day period that  
               begins with the date that it becomes clear that the  
               minor child will be absent for such a period of time.  
               (42 USC § 608 (10))

             9)   Provides in the California State Plan that a  
               recipient family shall remain eligible when a needy  
               child or adult is temporarily absent from the home.  
               The time period for temporary absences from the home  
               is one full calendar month of at least 30 days.  




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               Exceptions to this rule are defined in state  
               regulations. (California State Plan 2010, p 11, B,  
               iii)

           Existing state regulation:
                
             10)  Specifies that if any member of the recipient  
               family is absent from the home for one full calendar  
               month or less they shall be considered temporarily  
               absent unless exempt. (MPP §82-812.6) 

             11)  Specifies exemptions to the time limit of less than  
               one month to include: 

                  a.        A child in a public hospital for up to  
                    two full calendar months shall be considered  
                    temporarily absent. (MPP §82-812.6)

           This bill:

              1)   Repeals the code section that states that no child  
               shall receive aid after two months while he is a  
               patient in a public hospital, as specified.

             2)   Establishes that a child who is a patient in a  
               public or private hospital for medical or surgical  
               care shall be considered temporarily absent from the  
               home for the duration of the hospital stay.

                                         




                                 FISCAL IMPACT
           
          An Assembly Appropriations Committee analysis indicates  
          that costs associated with this legislation should be  
          negligible, probably less than $5,000 (TANF/Maintenance of  
          Effort) per year due to this situation affecting very few  
          families each year.

                            BACKGROUND AND DISCUSSION
                                        
           Purpose of the bill 




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           According to the author, AB 419 creates parity among  
          patients in public and private hospitals who are also  
          recipients of CalWORKs aid. Aided children in private  
          hospitals are considered temporarily absent from the home  
          for the duration of their stay; however, children placed  
          into public hospitals are only considered temporarily  
          absent for two months and then no longer eligible for aid.  
          AB 419 addresses the problem by making a child placed in  
          either a public or private hospital be considered  
          temporarily absent for the duration of the stay.

           CalWORKs

           As of March 2013, 561,862 California families were  
          participating in the CalWORKs program, including more than  
          one million children. Nearly half of the children are under  
          age six. CalWORKs provides monthly income, assistance, and  
          employment-related services aimed at moving children out of  
          poverty and helping families meet basic needs and become  
          self-sufficient. The Department of Social Services  
          administers the program at the state level, and county  
          welfare departments administer it locally. CalWORKs is  
          funded by the federal TANF block grant, state General Fund  
          dollars, and county funds. The average grant for a family  
          of three is $467 per month.

           Temporary Absence

           The amount of a family's monthly assistance payment depends  
          on a number of factors, including the number of people who  
          are eligible and residing in the household. 

          An eligible child is considered to be living in the home of  
          a caretaker as long as the child is "temporarily absent"  
          from the home. However, the caretaker relative must  
          continue to have the responsibility for care and control of  
          the child during the temporary absence. 

          Hospitalization of a child is considered a temporary  
          absence, but comes with limitations. If a child is a  
          patient of a public hospital, then the child is only  
          considered "temporarily absent" from the home for up to two  
          months. After two months, if the child remains in the  
          public hospital, then the child is no longer considered a  




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          part of the home and may not be used in calculating monthly  
          benefits. This would reduce the monthly assistance by one  
          child, or would eliminate all benefits if the home does not  
          have any other eligible children living in the home.

          This two-month provision only exists for children who are  
          absent from the home and receiving care in a public  
          hospital; those in a private hospital continue to be  
          eligible for aid for the full length of their stay in the  
          private hospital.



           Maximum Aid Payment

           CalWORKs calculates the maximum aid payment based on a  
          number of factors including how many people are eligible  
          for aid and living in the household, the county in which  
          the family resides, and earned income.  The maximum benefit  
          that a non-exempt family of three (one adult, two children)  
          could receive living in Los Angeles County is $638. If a  
          child were removed from the calculation of benefits due to  
          being a long-term patient in a public hospital, that  
          family's benefit would drop to $516.  
           
           California Children Hospitalized

           Based on information provided by the Office of Statewide  
          Health Planning and Development (OSHPD), 3,365 children in  
          California were hospitalized for longer than 60 days in  
          2011 and 1,644 children in California were hospitalized for  
          longer than 60 days from January through June of 2012.  

          This equates to a weighted average of 2,791 children in  
          California who are hospitalized for longer than 60 days in  
          one year.  This weighted average was applied to 2010 Census  
          data on the number of children in California (9,295,040)   
          to create a ratio of children hospitalized for longer than  
          60 days to the total number of children in the state  
          (approximately 0.03%).  

          It is unknown how many of the children hospitalized for  
          longer than 60 days are also CalWORKs recipients and how  
          many families have been removed from aid or have had aid  
          reduced because of hospitalization of a child in a public  




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          hospital for longer than 60 days. 
           
          California State Plan 2010

           The Department of Health and Human Services requires all  
          states that accept federal Temporary Assistance for Needy  
          Families (TANF) aid to submit a TANF State Plan. One aspect  
          detailed in the state plan outlines how California defines  
          "temporary absence." The California State Plan specifies  
          that a recipient family shall remain eligible when a needy  
          child or adult is temporarily absent from the home. The  
          time period for temporary absences from the home is one  
          full calendar month of at least 30 days. Exceptions to this  
          rule are defined in state regulations. For AB 419 to be  
          fully implemented, state regulations must be updated to  
          incorporate this legislation. 
           
          Other States

           Montana (no limit) - Considers the household member  
          eligible if the member is temporarily absent from the home  
          to receive medical treatment, provided the parent or  
          caretaker relative is otherwise eligible. (ARM  
          37.78.207(3)) 

          Ohio (no limit) - Considers the household member eligible  
          for aid during absences due to hospitalization (includes  
          inpatient drug and alcohol treatment). (OAC 5101:1-3-04)
          
          Texas (12 months) - Does not deny assistance because a  
          household member is temporarily out of the home due to  
          hospitalization up to a 12 month time limit. (Texas Health  
          and Human Services Commission Texas Works Handbook Part A  
          Section 900)

          Pennsylvania (12 months) - Does not deny assistance because  
          a household member is temporarily out of the home due to  
          hospitalization up to a 12 month time limit. (55 Pa. Code §  
          151.43(d))

          Washington State (180 days) - Treats an absence as  
          temporary if there is a clear expectation that the eligible  
          member will return to the family home within 180 days.  
          Hospitalization of the child is not an exemption that  
          extends the 180 day limit. (WAC 388-454-0015)




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                                   PRIOR VOTES
           
          Assembly Floor:     76 - 0
          Assembly Appropriations:17 - 0
          Assembly Human Services:  7 - 0 

                                    POSITIONS  

          Support:       County Welfare Directors Association of  
          California (sponsor)
                         Advancement Project
                         Butte County Department of Employment and  
                    Social Services
                         California Alternative Payment Program  
                    Association (CAPPA)
                         California Association of Public Hospitals  
                    and Health Systems
                         County of Monterey
                         Glendale City Employees Association
                         Organization of SMUD Employees
                         San Bernardino Public Employees Association
                         San Luis Obispo County Employees Association
                         San Luis Obispo County Department of Social  
                    Services
                         Santa Rosa City Employees Association
                         Western Center on Law and Poverty  

          Oppose:   None on file


                                        
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