BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 371 (Mullin) - CalWORKs Family Unity Act of 2015
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|Version: June 29, 2015 |Policy Vote: HUMAN S. 5 - 0 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: July 13, 2015 |Consultant: Jolie Onodera |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 371 would revise and expand eligibility for the CalWORKs
program, as follows:
Deletes the consideration of child deprivation as a factor
in determining eligibility, and enables eligibility without
regard to the employment status of a parent (current law
requires the principal earner to be unemployed or working
less than 100 hours per month) if the family meets all other
eligibility requirements.
Provides that the absence of a parent, as defined, is not
a condition of eligibility to receive CalWORKs benefits, and
expands the definition of "absent parent" to include parents
absent solely by reason of the performance of active duty in
the armed forces.
Revises work participation requirements for assistance
units (AUs) currently based on the average number of hours
worked per week during the month to a specified minimum
number of hours required to be worked each week.
Reduces work requirements for pregnant women from 30 hours
to 20 hours per week during the welfare-to-work 24-month
clock, and aligns work requirements for two-parent AUs for
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all families including two adults, as specified.
Fiscal
Impact:
Ongoing major increase in CalWORKs grant, services, and
administrative costs of $15.7 million to $18.5 million
(General Fund) per year to the extent removing the child
deprivation rule results in additional eligible cases and
fewer cases discontinued from the CalWORKs program.
One-time costs potentially in excess of $150,000 (General
Fund) for automation changes required to effectuate the
eligibility changes imposed under this measure.
Potential increase in CalWORKs sanctions and resulting
reduction in grant costs to the extent requiring a specific
minimum number of work hours per week makes it more difficult
for participant compliance in lieu of the existing requirement
of an average number of work hours per week per month.
Unknown net increase/decrease in CalWORKs program costs
(General Fund) resulting from the changes to hourly work
requirements for AUs with two adults, which could result in
increased employment services costs, offset to some degree by
grant cost savings resulting from increased earnings or higher
rates of sanction.
Background: Existing federal law under the Temporary Assistance for Needy
Families (TANF) program provides aid and welfare-to-work
services to eligible families, and in California, provides that
TANF funds for welfare-to-work services are administered through
the California Work Opportunity and Responsibility to Kids
(CalWORKs) program.
Existing state law provides that CalWORKs aid and services be
granted to families with related children under the age of 18
years, with exceptions, who are considered to be deprived of
parental support or care due to the following circumstances:
The death, physical or mental incapacity, or
incarceration of a parent;
The unemployment of a parent or parents;
Continued absence of a parent from the home due to
divorce, separation, or, desertion, or any other reason,
except absence occasioned solely by reason of the
performance of active duty in the uniformed services of the
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United States.
Under existing law, "unemployment of a parent" means a natural
or adoptive parent with whom the child is living and works less
than 100 hours in the preceding four weeks and meets specified
federal definitions of an unemployed parent. Existing law
provides that a family receiving CalWORKs benefits with a child
who is considered to be deprived of parental support due to
unemployment may continue to receive assistance regardless of
the number of hours his or her parent works provided the family
does not exceed the applicable gross or net income limits and is
otherwise eligible for assistance.
Under existing law, CalWORKs recipients are required to
participate in welfare-to-work activities for an average of a
specified number of hours per week during the month as a
condition of eligibility for aid. Existing law provides for an
exemption for a person with a disability, as specified, from
participation in welfare-to-work activities.
Proposed
Law: This bill would enact the CalWORKs Family Unity Act of
2015, which would revise and expand eligibility for the CalWORKs
program, as follows:
Deletes consideration of child deprivation as a factor in
determining eligibility by providing that CalWORKs aid be
granted to a family with a related child who is under 18
years of age if the family meets applicable eligibility
requirements, without regard to the employment status of the
parent (current law requires the principal earner to be
unemployed or working less than 100 hours per month).
Provides that the absence of a parent, as defined, is not
a condition of eligibility to receive CalWORKs benefits.
Expands the definition of "absent parent" to include
parents absent solely by reason of the performance of active
duty in the uniformed services of the United States.
Revises work participation requirements for AUs currently
based on the average number of hours worked per week during
the month to a straight minimum number of hours required to
be worked each week.
Reduces work requirements for pregnant women from 30 hours
to 20 hours per week during the welfare-to-work 24-month
clock.
Aligns work requirements for two-parent AUs to all
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families including two adults (such as stepparents and
registered domestic partners).
Requires the DSS to implement the provisions of the bill
through an all-county letter or similar instructions, and
shall adopt regulations no later than July 1, 2018.
Related
Legislation: AB 1502 (Mullin) 2014 was substantially similar to
this measure. This bill was held on the Suspense File of this
Committee.
Staff
Comments: By removing the consideration of child deprivation as
a factor in determining CalWORKs eligibility, this bill will
result in both newly eligible cases as well as cases that will
no longer be discontinued from the CalWORKs program.
Based on DSS reports (CA 255CW and CA 253CW) indicating the
annual number of cases denied eligibility due to not meeting the
child deprivation requirement and the number of cases
discontinued due to no longer meeting the child deprivation
requirement, and discounting for those cases that would have
been found ineligible under existing law due to excess
income/resources or other reasons, results in a monthly average
of about 900 newly eligible cases and about 1,000 cases that
would no longer be discontinued. Total annual costs for grants,
services, administration, and child care (for newly eligible
cases), based on applicable utilization rates would result in
costs of about $18.5 million. To the extent 15 percent of cases
denied or discontinued due to not meeting the child deprivation
requirement would have successfully reapplied at a later date
and would otherwise have been found eligible, results in annual
costs of $15.7 million.
This bill reduces work requirements for pregnant women from 30
hours to 20 hours per week during the welfare-to-work 24-month
clock. Based on MEDS data, it is estimated approximately 2,000
new cases could be impacted under this provision. However, as
existing program rules provide for a work exemption for pregnant
women, it is estimated that this change in hourly work
requirements will have a minimal impact on overall program
costs.
This bill additionally revises work participation requirements
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by aligning the hourly work requirement of an average of at
least 35 hours per week for two-parent families to all AUs
including two adults, such as step-parents, registered domestic
partners, and same-sex spouses. This change may result in an
increase in employment services costs to the extent the second
adult participates and contributes to the hourly work
requirement. Additionally, this change may result in offsetting
cost savings in CalWORKs grant costs due to increased earnings,
or alternatively, due to a higher rate of sanction to the extent
participants are unable to meet the higher work requirement. The
net fiscal impact would be dependent on various factors specific
to each case and the number of cases impacted each year.
This bill revises existing work participation requirements for
AUs currently based on the average number of hours worked per
week during the month to a specified minimum number of hours
required to be worked each week. To the extent requiring a
specific minimum number of work hours per week makes it more
difficult for participants to comply with work requirements
could result in a higher rate of sanction and a resulting
reduction in grant costs.
Recommended
Amendments: To retain consistency with existing law, staff
recommends an amendment to specify that hourly work requirements
can be met through an average of a minimum number of hours per
week during the month as a condition of eligibility for aid.
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