BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 492


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          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  








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            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  








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            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.  










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          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  








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          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  








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          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.








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          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) 








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          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)











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          Opposition





          None on file.




          Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089