BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 492


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          492 (Gonzalez and Gomez)


          As Amended  August 15, 2016


          Majority vote


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          Original Committee Reference:  HUM. S.




          SUMMARY:  Provides, as of October 1, 2020, a $50 diaper benefit  
          issued through an electronic benefits transfer (EBT) system for  
          each child two years of age and younger in a California Work  
          Opportunity and Responsibility to Kids (CalWORKs) assistance  
          unit that is enrolled in child care as a supportive service, as  
          specified.  


          The Senate amendments:


          1)Delay commencement of the benefit, and the requirement that it  
            be issued through an EBT system, until October 1, 2020, and  
            remove the requirement that the Department of Social Services  
            facilitate the orderly administration of state government to  
            make the benefit available at the earliest possible time.








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          2)Remove the requirement that the benefit be delivered through  
            the specified, existing EBT system and, instead, require that  
            the benefit be delivered through an EBT system in general.


          3)Specify that the diaper benefit may only be used to purchase  
            diapers.


          4)Rename the benefit from the "diaper needs benefit" to the  
            "diaper benefit."


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          on August 11, 2016, this bill may result in the following costs:


          1)Beginning fiscal year 2020-21, ongoing costs to Department of  
            Social Services (DSS) in the range of $14 million to $18  
            million per year for a $50 voucher for children in CalWORKs  
            under age 3.  Currently, approximately 26,000 children in  
            CalWORKS are under age 3 and would be eligible for benefits  
            under this bill. It is unknown whether the caseload that would  
            be impacted by this bill would increase or decrease  
            significantly in 2020 and following years. (Federal Temporary  
            Assistance for Needy Families [TANF]/General Fund)


          2)Minor one-time state costs for updating an EBT system to  
            deliver the diaper benefit.


          3)Additional, potentially reimbursable, county costs for  
            administering the diaper benefit.


          COMMENTS:


          CalWORKs:  The CalWORKs program provides monthly income  








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          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 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 DSS, around  
          497,000 families rely on CalWORKs, including over one million  
          children.  Nearly 60% of cases include children under six 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.  


          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  








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          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  
          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  








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          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) of  
          2014.  That bill also attempted to provide access to diapers,  
          but did so through an $80 per month young child special needs  
          supplement, which would have been provided to families as part  
          of the CalWORKs cash grant for each child under two years of  
          age.  While this bill includes children under three years of  
          age, the scope is narrower, as it provides a $50 per month  
          diaper-needs benefit through the EBT card and specifically ties  
          the benefit 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  
          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.


          Analysis Prepared by:                                             
                          Daphne Hunt / HUM. S. / (916) 319-2089  FN:  
          0004293










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