BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 419
          Author:   Lowenthal (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  6-0, 6/11/13
          AYES:  Yee, Berryhill, Emmerson, Evans, Liu, Wright

           SENATE APPROPRIATIONS COMMITTEE  : 6-0, 07/01/13
          AYES: De Le�n, Walters, Gaines, Hill, Lara, Steinberg
          NO VOTE RECORDED: Padilla

           ASSEMBLY FLOOR  :  76-0, 4/25/13 (Consent) - See last page for  
            vote


           SUBJECT  :    CalWORKs:  eligibility

           SOURCE  :     County Welfare Directors Association of California


           DIGEST  :    This bill repeals the code section that limits  
          California Work Opportunity and Responsibility to Kids  
          (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.

           ANALYSIS  :    

          Existing law:

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          1.Establishes the Temporary Assistance for Needy Families (TANF)  
            program. 

          2.Provides in California statute for the allocation of funds for  
            cash assistance and other social services for low-income  
            families through the CalWORKs program.  Under this program,  
            each county provides assistance through a combination of  
            state, county funds and federal TANF funds. 

          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. 

          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. 

          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. 

          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. 

          7.Provides in state law that no child shall receive aid while  
            he/she 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. 

          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. 

          9.Provides in the California State Plan that a recipient family  

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            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. 

          Existing state regulation:

          1.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.

          2.Specifies exemptions to the time limit of less than one month  
            to include:  A child in a public hospital for up to two full  
            calendar months shall be considered temporarily absent. 

          This bill:

          1.Repeals the code section that states that no child shall  
            receive aid after two months while he/she 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.

           Background
           
           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 (DSS)  
          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  

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          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 part of the home and may not be used in  
          calculating monthly benefits.  This reduced the monthly  
          assistance by one child, or eliminated 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,  
          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  

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          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 hospital for longer than  
          60 days. 

          California State Plan 2010  .  The Department of Health and Human  
          Services requires all states that accept federal 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  
          this bill 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. 

           Ohio (no limit)  - Considers the household member eligible for  
          aid during absences due to hospitalization (includes inpatient  
          drug and alcohol treatment).
          
          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. 

           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. 

           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. 

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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes


          According to the Senate Appropriations Committees:


           Minor one-time costs to the DSS to revise regulations  
            consistent with the provisions of this measure.

           Potential increase in CalWORKs program costs potentially in  
            the range of $16,000 to $40,000 (General Fund) per year.

           SUPPORT  :   (Verified  7/2/13)

          County Welfare Directors Association of California (source)
          Advancement Project
          Butte County Department of Employment and Social Services
          California Alternative Payment Program Association 
          California Association of Public Hospitals and Health Systems
          California Catholic Conference, Inc.
          California Health Executives Association
          California State Association of Counties
          County of Monterey
          Glendale City Employees Association
          Organization of SMUD Employees
          San Bernardino Public Employees Association
          San Luis Obispo County Department of Social Services
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association
          Urban Counties Caucus
          Western Center on Law and Poverty

           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill 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.  The  
          author's office states this bill 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.

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           ASSEMBLY FLOOR  :  76-0, 4/25/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Conway,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hern�ndez, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nestande, Olsen, Pan, Patterson, Perea, V. Manuel P�rez,  
            Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting,  
            Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams,  
            Yamada, John A. P�rez
          NO VOTE RECORDED:  Cooley, Lowenthal, Nazarian, Vacancy


          JL:d  7/2/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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