BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 433 (Chu) - Public social services: CalWORKs ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 26, 2015 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Jolie Onodera | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 433 would maintain CalWORKs grant levels for up to two months for a parent who experiences the loss of a child in the assistance unit, as specified. Fiscal Impact: Ongoing increase in CalWORKs grant costs, potentially in the range of $60,000 to $110,000 (General Fund) annually, to provide grant aid to affected families in the month of the child's death and one month thereafter, that otherwise would not have been provided and/or recovered through the overpayment collection process. Likely minor, if any, increased CalWORKs grant costs (General Fund) due to the prohibition on sanctioning a grieving parent in the month of the child's death and the month thereafter. As AB 433 (Chu) Page 1 of ? counties can currently provide a good cause exemption to avoid imposing sanctions, it is estimated that sanctions occur infrequently under existing law. One-time minor, absorbable costs (General Fund) associated with any automation changes necessary to effectuate the provisions of this measure. Potentially state reimbursable, but likely minor, administration and services costs (General Fund) to counties associated with assisting these families as prescribed in this measure. Background: Existing federal law establishes the Temporary Assistance for Needy Families (TANF) program to provide cash aid and welfare-to-work services to eligible low-income families and, in California, administers TANF funds through the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Under existing law, cash assistance under the CalWORKs program is paid to each qualified family, which includes all eligible brothers and sisters of each eligible applicant or recipient child and the parents of the children. CalWORKs program requirements include participation in specified welfare-to-work activities unless certain circumstances are present. When an individual fails or refuses to comply with specified components of the program without good cause, the individual is subject to prescribed sanctions such as reduction in the CalWORKs family grant amount. Under existing law, an aided parent may be eligible for a good cause exemption from welfare-to-work requirements upon the death of a child in the family, however, such an exemption must be requested and is applicable at the discretion of the county. This bill seeks to ensure all families are exempt from sanction and potential loss of grant aid until the end of the month following the death of the child. Proposed Law: This bill would provide for the following benefits to a AB 433 (Chu) Page 2 of ? CalWORKs recipient who experiences the loss of a child in the assistance unit: Prohibits applying a sanction for a grieving parent's failure or refusal to comply with program requirements during the month in which a child in the CalWORKs assistance unit dies, or the following month. Requires a county, upon receiving notification of the death of a child in the assistance unit, to assist a grieving parent in accessing other services for which the parent may be eligible and provide information to the parent about mental health services, including services provided by the county human services agency, if appropriate. Defines "grieving parent" as an aided adult who is required to participate in welfare-to-work activities and who experiences the death of a child in the assistance unit. Maintains an assistance unit's CalWORKs grant amount for the month in which a child in the assistance unit dies and the following month. Provides that aid continued for an assistance unit under these circumstances shall not be deemed an overpayment. Prohibits a county from establishing an overpayment for aid granted under the provisions of this bill unless the county would have sought recovery even if the child had not died. Related Legislation: None applicable. Staff Comments: By maintaining CalWORKs grant levels for up to two months for recipient families in which a child death has AB 433 (Chu) Page 3 of ? occurred and prohibiting counties from deeming such aid as overpayments, this bill could result in an increase in CalWORKs program costs. For those families consisting of more than one aided child in the assistance unit, this bill would result in additional costs applicable to the grant level associated with the deceased child. For families consisting of only one aided child in the household, this bill could result in maintenance of the full family grant and administration costs, as the entire family would have otherwise been discontinued from CalWORKs eligibility in the absence of an eligible child in the assistance unit, and any grant payments issued would have been subject to overpayment recovery. Staff notes that while the provisions of this bill do not directly extend eligibility for the CalWORKs program under the specified circumstances (as a family is not eligible to maintain benefits under federal TANF and state rules in the absence of an eligible child), prohibiting the ability of a county to establish and collect overpayments for these cases will result in increased CalWORKs program costs. While the exact number of child deaths that occur within CalWORKs families on an annual basis is unknown, it is estimated that the number is not large. Based on an estimated child mortality rate of 14 deaths per 100,000 children (The Henry J. Kaiser Family Foundation, Rate of Child Deaths (1-14) per 100,000 Children, 2011), assuming 140 CalWORKs families (based on an estimated 1 million aided children in the CalWORKs program) were provided with an additional two months of grant costs would result in annual grant costs ranging from $60,000 to $110,000 (General Fund), assuming 54 percent of impacted cases would also otherwise be discontinued from CalWORKs eligibility due to the absence of an eligible child. To the extent the number of CalWORKs families affected each year by the provisions of this measure is higher or lower would impact costs accordingly. This bill prohibits applying a sanction for a grieving parent's failure or refusal to comply with program requirements during the month in which a child in the CalWORKs assistance unit dies, or the following month. As counties can currently provide a good cause exemption to avoid imposing sanctions, it is estimated that sanctions occur infrequently under existing law and AB 433 (Chu) Page 4 of ? therefore, this provision would likely result in minor, if any, increase in CalWORKs program costs. The Department of Social Services has indicated any costs associated with automation changes required to effectuate the provisions of this measure would be minor and absorbable. -- END --