BILL ANALYSIS Ó AB 1579 Page A CONCURRENCE IN SENATE AMENDMENTS AB 1579 (Stone) As Amended August 19, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |59-15|(May 29, 2014) |SENATE: |27-3 |(August 21, | | | | | | |2014) | ----------------------------------------------------------------- Original Committee Reference: HUM. S. 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. 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. AB 1579 Page B The Senate amendments authorize the Department of Social Services (DSS) to implement this change to a pregnant woman's eligibility for CalWORKs through all-county letters or similar instructions, as specified. 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 aid. (WIC Section 11450 (b)) FISCAL EFFECT : According to the Senate Appropriations AB 1579 Page C Committee: 1)Ongoing increased costs of $7.2 million (General Fund) to provide CalWORKs benefits three months earlier than provided for under existing law, assuming continuing operation of the Cal-Learn Program. 2)Potential loss of savings in excess of $20 million (General Fund) annually, if Cal-Learn is suspended in the future, as over 9,000 pregnant teens would have otherwise been eligible for CalWORKs benefits only during their third trimester under existing law upon suspension of the Cal-Learn Program. 3)One-time potentially significant costs to the DSS for automation changes necessary due to changing eligibility criteria for this program. 4)Unknown, potential future cost savings in health and other governmental program services costs to the extent the provision of assistance earlier during a woman's pregnancy results in healthier children and better overall life outcomes for these families. 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 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 AB 1579 Page D 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 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 --------------------------- <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 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 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 FN: 0005125