BILL ANALYSIS Ó AB 743 Page 1 Date of Hearing: April 14, 2015 ASSEMBLY COMMITTEE ON HUMAN SERVICES Kansen Chu, Chair AB 743 (Eggman) - As Amended April 9, 2015 SUBJECT: CalWORKs: eligibility: work activities SUMMARY: Establishes the CalWORKs Self-Sufficiency through Education and GI Bill Exemption Act of 2015. Specifically, this bill: 1)Ensures education, training, vocation or rehabilitation benefits, and related allowances provided through the United States Department of Veterans Affairs, as specified, are not considered as income or property for purposes of determining CalWORKs eligibility or grant levels. 2)Provides that individuals participating in a self-initiated program leading to employment, as specified, are not required to participate in job search activities. 3)Requires a county, upon determining that a welfare-to-work plan assessment is necessary for a person participating in an AB 743 Page 2 approved self-initiated program, as specified, to schedule the assessment at a time that does not interfere in any way with the person's self-initiated program, employment, or child care obligations, and requires supportive services to continue for that person until the assessment has been completed. 4)Provides that satisfactory progress in an assigned education or training activity shall be defined by the institution administering the education or training activity. 5)Provides that satisfactory progress in an undergraduate degree or certificate program that leads to employment shall be defined by the educational institution. 6)Exempts a person enrolled in postsecondary school, as specified, from CalWORKs job club and job search requirements, as defined. 7)Provides that either a county welfare department or a local education agency or provider can identify a self-initiated program as leading to employment. Deletes the requirement that a county annually agree to a list of such activities, and instead requires a county to approve the list, annually. 8)Establishes a statewide standard for allowable activities identified as leading to employment by aligning the list of allowable activities used at the county level with the list used by the Employment Development Department. AB 743 Page 3 9)Allows study time, as defined by the educational institution a person is attending, to be counted toward the minimum number of hours of welfare-to-work participation that are required, as specified. 10)Deletes language that only authorizes supportive services reimbursement for participation in a self-initiated training or education program when no other source of funding for those costs is available. 11)Requires child care supportive services to be continued, for a period not to exceed six weeks, when hours of educational or vocational training are reduced due to a break in instruction at an institution and an individual is eligible to continue in the educational or vocational program following the break in instruction. 12)Excludes any hours of participation in a self-initiated education or training program from the work activity limitations of the CalWORKs 24-month time clock. 13)Removes self-initiated programs from consideration among assigned program activities when determining whether a person has failed or refused to comply with program requirements. 14)Prohibits subjecting an individual who is currently participating in a self-initiated program that is reflected in AB 743 Page 4 his or her welfare-to-work plan from being subject to sanctions on the basis of failure or refusal to sign a new welfare-to-work plan if the individual is making satisfactory progress in that program, as defined by the institution administering the program. EXISTING LAW: 1)Establishes several education programs available to military veterans, including post-9/11 educational assistance, as specified. (38 U.S.C. 3313) 2)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 CalWORKs program. (42 U.S.C. 601 et seq., WIC 11200 et seq.) 3)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 approximately 40% of the Federal Poverty Level. (WIC 11450, 11150 et seq.) 4)Prohibits a CalWORKs applicant or recipient's educational expenses from being applied to any educational loans or grants he or she receives that are exempt from consideration as income for purposes of determining CalWORKs eligibility. (WIC 11250.8) 5)Establishes a 48-month lifetime limit of CalWORKs benefits for eligible adults, including a CalWORKs welfare-to-work 24-month time clock, upon exhaustion of which a recipient must meet AB 743 Page 5 federal work requirements in order to retain eligibility. (WIC 11454, 11322.85) 6)Authorizes a recipient subject to the welfare-to-work 24-month time clock to request an extension of those 24 months to continue in an activity in which he or she is engaged, including a self-initiated program that would increase the likelihood of employment, as specified. (WIC 11322.87) 7)Exempts specified categories of recipients from participation in welfare-to-work activities, including a parent or other adult CalWORKs recipient with primary responsibility for personally providing care to one child from birth to 23 months, as specified. (WIC 11320.3(b)) 8)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) 9)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) 10)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) 11)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)) AB 743 Page 6 12)Requires payments for supportive services to be advanced to CalWORKs participants, as specified, so that a participant does not need to use his or her funds to pay for the supportive services. (WIC 11323.4) 13)Requires any individual required to participate in welfare-to-work activities to enter into a written welfare-to-work plan with the county welfare department after an assessment is conducted, as specified. (WIC 11325.21) 14)Requires all welfare-to-work participants, except those participating in the Cal-Learn Program or engaged in obtaining a high school diploma or its equivalent, to be assigned to participate in job search activities for a period of up to four consecutive weeks following the initial CalWORKs appraisal. (WIC 11325.22) 15)Establishes the following provisions pertaining to participation in self-initiated education and training programs: a) Permits a student enrolled in any undergraduate degree or certificate program that leads to employment to continue in that program upon commencing CalWORKs aid, provided he or she is making satisfactory progress in the program, the county determines that continuing in the program is likely to lead to self-supporting employment for that recipient, and the welfare-to-work plan reflects that determination; b) Provides that a program shall only be determined to lead to employment if it is on a list of programs that the county welfare department and local education agencies or providers agree lead to employment, and requires the list to be agreed to annually. Further requires the county to determine whether a program leads to employment if it is not included in the agreed upon list; c) Requires concurrent participation in additional work AB 743 Page 7 activities if participation in educational or vocational training, as determined by the number of hours required for classroom, laboratory, or internship activities, does not fulfil the weekly 30 or 20 hour work requirement, as specified; d) Requires participation in a self-initiated education or vocational training program to be reflected in a recipient's welfare-to-work plan; e) Authorizes a person whose previously approved self-initiated education or training program is interrupted for reasons that meet good cause criteria, as specified, to resume participation in the same program if the participant maintained good standing in the program and the program continues to meet the county approval criteria; and f) Requires supportive services reimbursement to be provided for any participant in a self-initiated educational or training program provided that no other source of funding for those services is available. (WIC 11325.23) 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 2015-16 monthly cash grant for a family of three on CalWORKs (one parent and two children) is $506.55. According to recent data from the California Department of Social Services, over 540,000 families rely on CalWORKs, including over one million children. Nearly 80% of the children are under age twelve and 40% are under age AB 743 Page 8 five. Average grant amounts of $506.55 per month for a family of three means $16.88 per day, per family, or $5.62 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 $6,078 per year. Federal Poverty Guidelines for 2015 show that 100% of poverty for a family of three is over three times that at $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 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 is subtracted from the amount provided to the family to meet basic needs. AB 743 Page 9 Self-initiated programs: While most parents applying for CalWORKs assistance have gaps in their education or minimal prior job experience, the recent recession resulted in numerous college students and people who had been laid off from their jobs showing up for the first time in county offices to figure out how to make ends meet for their families. Under current law, a person applying for CalWORKs aid that is already enrolled in an undergraduate or certificate program that will lead to self-sustaining employment can remain in that program provided he or she is making satisfactory progress in the program. Such programs are referred to as "self-initiated programs" because they are the result of the applicant or recipient engaging in an education or training program without first needing to go through a CalWORKs assessment in order to gauge his or her employment skills and abilities. While individuals participating in self-initiated programs should be able to develop their welfare-to-work plans in a way that accommodates their current approved activities, the flow of statutory requirements designed to help CalWORKs recipients obtain and maintain employment includes job search activities for a period of up to four weeks for most participants. Job search activities can provide beneficial, gradual exposure to new working environments for many welfare-to-work participants, but this requirement often interferes with education and training schedules for self-initiated program participants. GI Bill: Originally signed in 1944 and envisioned, in part, as a means to aid in the transition back to civilian life, GI Bill benefits have been increasingly relied upon to ensure a pathway to education for active military personnel and veterans. In 2008, the GI Bill was updated to give veterans with active duty service on or after September 11, 2001 enhanced educational benefits that provide additional funding for educational expenses, money for books, and a living allowance. Another feature of the Post-9/11 GI bill is the ability for veterans to transfer any unused educational benefits to their spouses or children, provided they meet certain US Department of Veterans AB 743 Page 10 Affairs requirements. According to September 2014 estimates from the US Department of Veterans Affairs, California is home to over 1.8 million veterans, which accounts for 12% of the national veteran population of 22 million. A report prepared for the US Department of Defense revealed that in 2012, there were 155,985 active duty military personnel in California. Need for this bill: This bill seeks to encourage educational options for low-income parents that will lead to long-term, improved outcomes for themselves and their families. By removing unnecessary disruptions and barriers to continuing in an education or training program in which a CalWORKs applicant or recipient is making satisfactory progress, this bill will grant more parents access to the education options and support already available to them while avoiding damaging setbacks. Additionally, this bill ensures that statute is clear relative to not factoring GI Bill benefits, including the housing stipend, into income or property calculations for CalWORKs applicants. By doing so, this bill allows military service members, their spouses and their children to utilize earned benefits without having to forgo receipt of those benefits if they happen to need additional assistance to stabilize their families. According to the author, "This bill seeks to help some of our most hard-working students that are fighting to improve their lives as well as their families. There are over 30,000 parents who are improving their future earning potential and the life opportunities of their children by seeking a certificate or degree while participating in welfare-to-work. Research shows that securing post-secondary degree will improve the likelihood of exiting poverty and reduce reliance on safety net programs. Supporting the success of low-income parents in their academic and employment and training goals not only improves the economic opportunities, but research has shown that it makes their children more likely to finish high school and to seek college opportunities for themselves. This two-generation approach to AB 743 Page 11 poverty reduction is being recognized nationally as a strategy that works." REGISTERED SUPPORT / OPPOSITION: Support Coalition of California Welfare Rights Organizations, Inc. (CCWRO) - sponsor Western Center on Law & Poverty (WCLP) -sponsor California Alternative Payment Program Association (CAPPA) California School Employees Association (CSEA) National Association of Social Workers (NASW)-California Chapter Opposition None on file. AB 743 Page 12 Analysis Prepared by:Myesha Jackson / HUM. S. / (916) 319-2089