BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 433 ----------------------------------------------------------------- |Author: |Chu | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |March 26, 2015 |Hearing | July 14, 2015 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mareva Brown | |: | | ----------------------------------------------------------------- Subject: Public social services: CalWORKs. SUMMARY This bill requires that CalWORKs benefits be continued for a child who dies until the end of the month following the death, and prohibits sanctions from being applied in that time period for a grieving parent's failure to comply with program requirements. The bill also requires a county to assist a grieving parent in accessing appropriate services and to provide information to the grieving parent about mental health services, as specified. ABSTRACT 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, administers TANF funds through the California Work Opportunity and Responsibility to Kids (CalWORKs) program. (42 U.S.C. 601 et seq., WIC 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 around 40 percent of AB 433 (Chu) Page 2 of ? the Federal Poverty Level. (WIC 11450, 11150 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 11454, 11322.85) 4) Requires all individuals over 16 years of age, unless they are otherwise exempt, to participate in welfare-to-work activities as a condition of eligibility for CalWORKs. (WIC 11320.3, 11322.6) 5) Establishes the number of weekly hours of welfare-to-work participation necessary to remain eligible for aid, including requirements for an unemployed parent in a two-parent assistance unit, as specified. (WIC 11322.8) 6) Subjects an individual receiving CalWORKs benefits to a financial sanction, as specified, when he or she does not meet program requirements without good cause, and establishes a corrective action process, which includes communication between the county and the individual. (WIC 11327.4, 11327.5) 7) Requires a county to excuse a CalWORKs recipient from welfare-to-work participation for good cause when the county has determined the recipient has a condition or is faced with a circumstance that temporarily prevents or significantly impairs the recipient's ability to be regularly employed or to participate in welfare-to-work activities. Requires a county welfare department to review a good cause determination to establish its continuing appropriateness, as specified, no less than every three months, and requires a recipient that has been granted good cause to provide information to the county, including written documentation, as required, to complete the review. (WIC 11320.3(f)) 8) Requires a family's aid be calculated based on the number of needy of family members, as specified, including aid for a pregnant, childless woman. (WIC 11450 et seq.) This bill: AB 433 (Chu) Page 3 of ? 1) Prohibits the levying of sanctions for a grieving parent's failure or refusal to comply with program requirements during the month in which a child in the assistance unit died, or the following month. 2) Requires a county upon receiving notification of the death of a child in a CalWORKs assistance unit to do the following: a. Assist a grieving parent in accessing services for which the parent may be eligible. These services may include, but are not limited to, nutrition supplement programs, housing assistance, and other cash aid programs. b. Provide information to the grieving parent about mental health services, including, but not limited to, information about, and a referral to, services provided by the county human services agency, if appropriate. 3) Defines "grieving parent" to mean an aided adult who is required to participate in welfare-to-work activities and who experiences the death of a child in his or her assistance unit. 4) Requires that, for purposes of determining a family's maximum aid payment, the number of needy persons in the same family shall not be decreased because of the death of a child in the assistance unit for the month in which the death occurred, or the following month. 5) Requires that any aid paid to a family experiencing a death of a child shall not be deemed an overpayment unless the county determines, as specified, that the assistance unit would have been subject to overpayment recovery, and the county would have sought recovery, even if the child had not died. 6) Requires the state to reimburse local agencies if the Commission on State Mandates determines this bill contains state-mandated costs, as defined. AB 433 (Chu) Page 4 of ? FISCAL IMPACT According to an Assembly Appropriations Committee analysis, this bill will have ongoing costs of less than $70,000 (GF) annually to provide grant aid to affected families in the month of the child's death and the month after, that otherwise would not have been provided. Additionally, the analysis projected unknown and likely minor increased grant costs for sanctions not applied in the month of the child's death and the month after, unknown automation costs and unknown, likely minor, administrative and other costs to counties which may require state reimbursement. BACKGROUND AND DISCUSSION Purpose of the bill: When a child in a CalWORKs recipient family dies, an aided parent may be eligible for a good cause exemption from welfare-to-work requirements, but the exemption has to be requested during what is a traumatic and stressful time, according to the author. Under current law, there is no requirement for counties to accommodate CalWORKs recipient parents who have lost a child. While a good cause exemption for a parent not meeting welfare-to-work requirements might apply while a parent is grieving, the exemption can be applied at the discretion of the county, meaning there's no automatic mechanism in the program to allow the parent time to grieve, the author states. Additionally, the loss of a child while a family is receiving CalWORKs benefits leads to a reduction in the family's grant amount and results in the loss of CalWORKs eligibility altogether, if there is no longer an aided child in the household. The author states this bill will help ensure that a CalWORKs recipient family does not endure further financial hardship for a short period of time following the loss of a child, regardless of whether an aided parent in the family meets welfare-to-work requirements while he or she is grieving. TANF and CalWORKs California has the highest poverty rate in the nation - just under one-quarter of residents are living at or below the federal poverty level (FPL). These families earn no more than AB 433 (Chu) Page 5 of ? $20,090 per year for a family of three. One of California's most essential anti-poverty strategies is the CalWORKs program, which provided cash assistance to approximately 540,000 families in 2014, including more than 1 million children. Nearly 80 percent of the children are under age twelve and almost 40 percent are under age five. Federal funding for CalWORKs comes from the TANF block grant. A grant to a family of three in a high-cost California county is $704 per month, or $8,448 per year, which is approximately 42 percent of the federal poverty level (FPL). This grant translates to $23.46 per day, per family, or $7.82 per family member, per day to meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to ensure children can be cared for at home and safely remain with their families. In 1989, a similar CalWORKs grant was worth about 81 percent of FPL, and 55 percent in 1997. Part of the reason for this decline has been a series of changes over the past five years including significant grant cuts, the elimination of a Cost of Living Adjustment, and a major restructuring of the welfare-to-work activities, requirements and time limits. At the same time the value of the grant has decreased, the program has changed adult eligibility from a 60-month lifetime limit to a 48-month limit, with strict requirements on work participation to remain in the program after 24 months. Assistance calculation Benefits for the CalWORKs program are established in statute, and calculated based on the number of needy family members, special needs of any family members, income and assets. Statute requires that benefits be paid to a pregnant woman, who qualifies for aid and prohibits benefits be paid for a child who was born within 10 months of a family's commencement of benefits, per the Maximum Family Grant, or MFG, rule. Sanctions and Good cause exemptions CalWORKs participants who fail to meet welfare-to-work AB 433 (Chu) Page 6 of ? requirements face financial sanctions. Specifically, sanctions can be imposed if a participant fails or refuses to comply with a CalWORKs requirement, to agree to a welfare-to-work plan, show proof of satisfactory progress in an agreed-upon activity, or to quit or refuse a job without a good reason for doing so. If efforts at conciliation are unsuccessful, one or both parents can be excluded from the assistance budget for a specified time. Counties are required to excuse CalWORKs recipients from participation in a welfare-to-work activity if the county determines that a condition or other circumstance exists that temporarily prevents or significantly impairs a recipient's ability to be regularly employed or to participate in welfare-to-work activities. Counties may grant good cause exemption for a number of reasons, including a lack of necessary supportive services, a lack of access to child care or that the recipient is a victim of domestic violence. Because statute does not limit the reasons for an exemption, counties could grant a good cause exemption for a parent who has suffered the loss of a child. Child deaths CDSS does not have data on the number of children who die each year while participating in the CalWORKs program. However, the Assembly Appropriations committee projected an estimate based on California's child mortality rate of 14/100,000, and studies that indicate that low-income children die at higher rates than other children. Assuming a mortality rate of up to twice the state rate, up to 280 children would die each year. COMMENTS Current statute requires a change in household composition for a CalWORKs assistance unit that includes an adult to be reported semi-annually, with no penalty for overpayment if there are changes in the number of family members during that time. Should this bill pass this committee, staff recommends the author consider whether there are implications for the family's eligibility in this or other programs related to the reporting of a death in CalWORKs. PRIOR VOTES AB 433 (Chu) Page 7 of ? ----------------------------------------------------------------- |Assembly Floor: | | | |74-0 | |-----------------------------------------------------------+-----| |Assembly Appropriations Committee: |17 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: | 7 | | |- 0 | | | | ----------------------------------------------------------------- POSITIONS Support: Western Center on Law and Poverty (Sponsor) California Alternative Payment Program Association California Black Health Network California Catholic Conference of Bishops California Communities United California Immigrant Policy Center Coalition of California Welfare Rights Organizations Courage Campaign Friends Committee on Legislation in California March of Dimes Foundation National Association of Social Workers, California Chapter St. Anthony Foundation Oppose: None received. -- END --