BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 1579
                                                                  Page A
          CONCURRENCE IN SENATE AMENDMENTS
          AB 1579 (Stone)
          As Amended  August 19, 2014
          Majority vote
           
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          |ASSEMBLY:  |59-15|(May 29, 2014)  |SENATE: |27-3 |(August 21,    |
          |           |     |                |        |     |2014)          |
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           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.








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                                                                  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 


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