BILL ANALYSIS Ó AB 492 Page 1 Date of Hearing: January 12, 2016 ASSEMBLY COMMITTEE ON HUMAN SERVICES Kansen Chu, Chair AB 492 (Gonzalez) - As Amended March 26, 2015 SUBJECT: CalWORKs: welfare-to-work: supportive services SUMMARY: Includes a diaper voucher among supportive services provided to CalWORKs recipient families. Specifically, this bill: Provides a voucher for diaper products in the amount of $50 per month for each child two years of age and younger in a CalWORKs assistance unit that is enrolled in child care as a supportive service for a parent participating in welfare-to-work. 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 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 AB 492 Page 2 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% 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 necessary supportive services, including child care, transportation, ancillary costs and personal counseling, as specified, to be available to every CalWORKs participant in order to facilitate his or her participation in the CalWORKs program activity to which he or she is assigned or acceptance of employment. (WIC 11323.2) 5)Makes paid child care available as a supportive service to every CalWORKs participant with a dependent child in the assistance unit who needs paid child care and is under 10 years of age or requires child care due to a physical, mental, or developmental disability, or is under court supervision. (WIC 11323.2 (a)(1)(A)) 6)Authorizes a county to continue to provide welfare-to-work services for up to the first 12 months of employment to former CalWORKs participants who are no longer eligible for CalWORKs due to a subsidized employment position, to the extent the services are necessary for the individual to retain the subsidized employment and the services are not available through any other source. (WIC 11323.25) 7)Requires counties to provide CalWORKs applicants and recipients a written notice, as specified, of the availability of child care for the purpose of allowing a recipient to be employed or participate in welfare-to-work activities. (WIC 11323.3) 8)Requires a county to excuse a CalWORKs recipient from AB 492 Page 3 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, which includes a lack of supportive services and a lack of access to child care, as specified. (WIC 11320.3(f)) FISCAL EFFECT: Unknown COMMENTS: CalWORKs: The California Work Opportunity and Responsibility to Kids (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 Temporary Assistance for Needy Families (TANF) block grant. The average 2016-17 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $497.35, and the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $704. According to recent data from the California Department of Social Services, around 497,000 families rely on CalWORKs, including over one million children. Nearly 60% of cases include children under 6 years old. Maximum grant amounts in high-cost counties of $704 per month for a family of three, with no other income, means $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. This grant amount puts the annual household income at $8,448 per year, or 42% of poverty. Federal Poverty Guidelines for 2015 show that 100% of poverty for a family of three is $20,090 per year. AB 492 Page 4 Welfare-to-Work requirements: Welfare-to-work activities within the CalWORKs program include public or private sector subsidized or unsubsidized employment; on-the-job training; community service; secondary school, adult basic education and vocational education and training when the education is needed for the recipient to become employed; specific mental health, substance abuse, or domestic violence services if they are necessary to obtain or retain employment; and a number of other activities necessary to assist a recipient in obtaining unsubsidized employment. Unless they are exempt, single parent adults must participate for at least 30 hours per week in welfare-to-work activities, whereas the minimum participation requirement for two-parent families is 35 hours per week. After receiving aid for up to a maximum of 24 months, adults without an exemption must work in unsubsidized employment or participate in community services activities for the minimum number of hours listed above. If a CalWORKs recipient who is not exempt from participation does not meet his or her welfare-to-work requirements, the recipient is sanctioned for noncompliance, and that recipient's portion of the family's grant subtracted from the amount provided to the family to meet basic needs. Child care as a supportive service: Under current law, the support services available to CalWORKs participants include child care, transportation costs, ancillary expenses, and personal counseling, all of which require specified information to be reported to the county in order to verify necessity. In order to receive child care, for example, a CalWORKs participant must verify employment, child care costs, and hours and dates of employment, educational, or training activities. Title 22 of the California Code of Regulations provides standards to which licensed child care centers must adhere, including that a center shall ensure each infant has sufficient changes of clothing and diapers, and that each infant's clothing and diapers are to be changed as often as necessary to ensure that each infant is kept AB 492 Page 5 clean and dry at all times. Whereas ancillary expenses include the cost of books for school, tools, clothing specifically required for a job, fees and other necessary costs related to employment or education, there are no such ancillary payments provided for the children who live in CalWORKs families. As children sometimes rapidly grow out of clothes, there is no supplement provided to their parents for increased clothing costs, and for infants and toddlers, there is currently no supplement to pay for diapers. While child care is provided within the CalWORKs program to facilitate a parent's participation in employment or another required welfare-to-work activity, not having enough money to purchase diapers can result in the loss of access to child care, which impedes a parent's ability to go to work or participate in a welfare-to-work activity, resulting in a sanction for non-compliance with the program requirements. Need for this bill: With this bill, the author seeks to ensure that babies and toddlers in poor families receiving CalWORKs have the diapers they need, which benefits the children who can continue to be enrolled in child care, as well as the parents who can continue to go to work as a result of that child care. The author introduced a similar measure, AB 1516 (Gonzalez) in 2014. That bill also attempted to provide access to diapers, but did so through a young child special needs assessment, which would have been provided to families to purchase diapers for all children in the family two years of age and younger. The scope of this bill is narrower, as it provides a diaper products voucher that is specifically tied to child care enrollment pursuant to a parent's welfare-to-work plan. According to the author, "Despite being critical to the health and hygiene of young children, diapers are excluded from state and federal assistance for low income families. There is no mechanism for relief from the high cost of diapers in AB 492 Page 6 California, even for those families we already support through programs such as CalWORKs. An inadequate supply of diapers can jeopardize a parent's employment by limiting their access to child care. Additionally, diaper need can cause avoidable and costly health consequences for the child and become an equally unhealthy stressor on parents. The goals of this legislation are to remove a potential barrier between parents and child care, and to alleviate the financial and health risks associated with diaper need." The author goes on to note that child care utilization, which helps to facilitate more consistent employment for parents on CalWORKs, can help increase success of the program and potentially result in savings in other safety-net programs. Staff comments: Although a diaper product voucher may help guide the use of the benefit, processes for providing numerous state and federal benefits, have shifted away from vouchers to electronic means. This is most evident in the use of Electronic Benefits Transfer (EBT) cards for the distribution of CalFresh food benefits (formerly provided through food stamps, which were paper vouchers), as well as the more recent move to provide Special Supplemental Food Program for Women, Infants and Children (WIC) benefits on EBT cards, which is still in the process of being implemented in California. In addition to streamlining the distribution of benefits, the move to electronic benefits transfer has made benefits more readily accessible to clients and has simplified purchase transactions for vendors. Should this bill move forward, the author should consider provision of the diaper products benefit through the EBT system to ensure efficient delivery of the benefit and reduce the possibility of purchase transactions barriers. Additionally, this bill currently allows the voucher to cover "diaper products," but does not define the exact products eligible for purchase with the voucher. Should this bill move forward, committee staff recommends the author consider better defining "diaper products" to ensure clarity for clients and vendors. AB 492 Page 7 PRIOR LEGISLATION: AB 1516 (Gonzalez), 2014, would have provided CalWORKs recipients an $80 per month young child special needs assessment, for the purpose of purchasing diapers, for every child age 2 years or younger in the assistance unit. It died on the Senate Appropriations Committee Suspense File. REGISTERED SUPPORT / OPPOSITION: Support American Academy of Pediatrics Black Women for Wellness California Alternative Payment Program (CAPPA) California Catholic Conference of Bishops 4 California Immigrant Policy Center California Latinas for Reproductive Justice (CLRJ) AB 492 Page 8 California Primary Care Association Center on Reproductive Rights and Justice, UCB, School of Law Courage Campaign Crime Victims Unite of CA (CVUC) Forward Together Jewish Family Service of Los Angeles (JFSLA) National Center for Youth Law National Diaper Bank Network Parent Voices California Planned Parenthood Western Center on Law and Poverty Women Organizing Resources, Knowledge and Services (WORKS) AB 492 Page 9 Opposition None on file. Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089