BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                AB 1579
                                                                Page A

        ASSEMBLY THIRD READING
        AB 1579 (Stone)
        As Amended  May 27, 2014
        Majority vote 

         HUMAN SERVICES      6-0         APPROPRIATIONS      13-4        
         
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        |Ayes:|Stone, Maienschein,       |Ayes:|Gatto, Bocanegra,         |
        |     |Ammiano,                  |     |Bradford,                 |
        |     |Ian Calderon, Garcia,     |     |Ian Calderon, Campos,     |
        |     |Hall                      |     |Eggman, Gomez, Holden,    |
        |     |                          |     |Linder, Pan, Quirk,       |
        |     |                          |     |Ridley-Thomas, Weber      |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |     |                          |Nays:|Bigelow, Donnelly, Jones, |
        |     |                          |     |Wagner                    |
        |     |                          |     |                          |
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         SUMMARY  :  Establishes the Healthy Babies Act of 2014.  Specifically,  
         this bill  :

        1)Declares the following legislative findings:

           a)   Women who experience multiple stressful situations during  
             pregnancy, such as homelessness, hunger, violence, and deep  
             poverty, are more likely to have premature and low birth weight  
             babies, or to experience high rates of mother and infant  
             mortality.  The cost of medical care for pre-term births is  
             much higher than for full-term births, and the human costs of  
             infant mortality are immeasurable;

           b)   Children whose birth mothers experience the harmful stressor  
             of deep poverty are more likely to suffer poor health and less  
             likely to succeed academically; and

           c)   Domestic violence causes more health problems among pregnant  
             women than any other single cause.  Without the support of the  
             California Work Opportunity and Responsibility to Kids  
             (CalWORKs) program, low-income pregnant women have few  
             alternatives and are more likely to endure abuse that will  
             cause long and short-term harm to both themselves and their  
             unborn fetus.









                                                                AB 1579
                                                                Page B


        1)Deletes the requirement that a pregnant woman seeking aid with no  
          aided children only receive CalWORKs assistance during the month  
          in which the birth is anticipated and for the three prior months,  
          and instead, beginning July 1, 2015, requires CalWORKs aid to be  
          provided to an eligible pregnant woman for the month in which the  
          birth is anticipated and the six prior months.

         EXISTING LAW  :

        1)Establishes under federal law the Temporary Assistance for Needy  
          Families (TANF) program to provide aid and welfare-to-work  
          services to eligible families and, in California, provides that  
          TANF funds for welfare-to-work services are administered through  
          CalWORKs.  (42 United States Code Section 601 et seq., Welfare and  
          Institutions Code (WIC) Section 11200 et seq.) 

        2)Establishes income, asset and real property limits used to  
          determine eligibility for the program, including net income below  
          the Maximum Aid Payment (MAP), based on family size and county of  
          residence, which is approximately 40% of the Federal Poverty  
          Level.  (WIC Section 11250 et seq.)

        3)Establishes a 48-month lifetime limit of CalWORKs benefits for  
          eligible adults, including 24 months during which a recipient must  
          meet federal work requirements in order to retain eligibility.   
          (WIC Sections 11454 and 11322.85)

        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 Section 11331)

        5)Requires payment of CalWORKs aid to an eligible pregnant minor at  
          any time after verification of pregnancy, provided that she is  
          without a needy child qualified for aid and the Cal-Learn program  
          is operative.  (WIC Section 11450 (b))

        6)Requires payment of CalWORKs aid to an eligible pregnant woman 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 if the woman provides verification of  
          pregnancy and is in a family without a needy child qualified for  









                                                                AB 1579
                                                                Page C

          aid.  (WIC Section 11450 (b)) 

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee:

        1)CalWORKs grant and administrative costs in the range of $3 to $6  
          million (TANF/GF) annually, beginning in 2015-16.  The actual  
          costs will depend on the number of eligible women who apply for  
          the earlier benefit and the number of additional months of benefit  
          they receive.

        2)Unknown automation costs to DSS to implement the changes.

         COMMENTS  :  Under current law, a pregnant woman without  
        CalWORKs-aided children cannot receive CalWORKs assistance until she  
        is in the third trimester of her pregnancy.  This bill seeks to  
        ensure healthier babies are born to women who are pregnant and in  
        need of assistance by granting CalWORKs aid to eligible women  
        beginning in their second trimester of pregnancy.

        The CalWORKs program provides monthly income assistance and  
        employment-related services aimed at moving children out of poverty  
        and helping families meet basic needs.  Federal funding for CalWORKs  
        comes from the Temporary Assistance for Needy Families (TANF) block  
        grant.  The average monthly cash grant for a family of three on  
        CalWORKs (one parent and two children) is $463.  According to recent  
        data from the California Department of Social Services, 554,292  
        families rely on CalWORKs, including over one million children.   
        Nearly 80% of the children are under age twelve.

        In addition to aiding eligible needy families with children,  
        CalWORKs provides assistance to eligible pregnant women, without  
        other children in the household qualified to receive aid, who are in  
        their third trimester of pregnancy and have provided verification of  
        pregnancy to the county office.  During these three months preceding  
        birth, the pregnant woman is eligible for CalWORKs aid for an  
        assistance unit of one (for herself) plus a $47 benefit to meet  
        special needs resulting from pregnancy.
         
         Poverty and pregnancy:  Numerous studies have revealed the  
        correlation between poverty and stress, as well as the higher  
        incidence of problems during pregnancy and birth due to maternal  
        stress.  A 2008 study published in the American Psychological  
        Association's Health Psychology journal showed correlations between  
        the psychological state of a pregnant woman and the health of the  









                                                                AB 1579
                                                                Page D

        fetus.  Women experiencing a high amount of stress during pregnancy  
        deliver their infants earlier and at lower birth weights, with both  
        factors leading to 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 stress  
        directly related to concerns about the pregnancy and associated life  
        changes is an even more powerful contributor to birth outcomes than  
        general stress.  The effects of stress during pregnancy multiply  
        when a lack of financial resources results in an inability to afford  
        a healthy diet, thereby impeding healthy fetal development. 

        Other states:  California is one of 31 states that provide TANF  
        benefits to eligible pregnant women with no other aided children,  
        according to July 2012 data from the Urban Institute's "Welfare  
        Rules Databook."  That same year, there were 11 states that provided  
        benefits earlier than California's third trimester policy, 10 of  
        which, including New York, Washington, and Kansas, provided benefits  
        as early as the first month of pregnancy.

        Need for the bill:  In addition to providing benefits that can help  
        needy pregnant women lead healthier lives during pregnancy and  
        decrease stress levels due to financial instability, the California  
        Partnership to End Domestic Violence (CPEDV) also notes the  
        correlation between financial stability and freedom from domestic  
        violence.  In support of this bill, CPEDV states, "Domestic violence  
        often contributes to the stress that many women eligible for  
        CalWORKs basic needs grants experience, but this stress may be  
        exacerbated by pregnancy.  Often domestic violence begins or  
        escalates in severity during pregnancy.  The University of  
        California San Francisco (UCSF) reports that domestic violence is  
        more common than any other health problem among women during  
        pregnancy.  Also according to UCSF, pregnancy is the second most  
        likely time that an abuser will kill their victim, thereby  
        increasing the risk of death for both the mother and the unborn  
        child.  Financial dependence often forces women to remain in abusive  
        relationships, and during pregnancy that financial dependence  
        increases.  In some cases, abusers will intentionally impregnate  
        their partners to exploit this financial control and assert their  
        power."

        Also in support of this bill, the Western Center on Law and Poverty  

        ------------------------------
        <1> Lobel, Marci, et. al. "Pregnancy-Specific Stress, Prenatal  
        Health Behaviors, and Birth Outcomes." Health Psychology 27.5  
        (2008): 604 -615.








                                                               AB 1579
                                                                Page E

        states, "Delaying basic needs cash assistance for very low-income  
        pregnant women not only impacts the health of children born into  
        deep poverty, but it also endangers the health and wellbeing of  
        pregnant women.  By not ensuring uninterrupted supportive services  
        to women who may be experiencing multiple stressful situations  
        during their pregnancies, very poor women are more likely to  
        experience complicated pregnancies and premature labor.  Pregnant  
        women are more likely to experience workplace discrimination and  
        lose their jobs during pregnancy than at any other time, making  
        CalWORKs assistance even more necessary? Because many low-income  
        workers are not aware of their rights vis-à-vis their employers,  
        they may need the help of the CalWORKs program to remain housed if  
        they lose their income as a result of discrimination."
         
         There is no opposition on file.
         

        Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916) 319-2089 


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