BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 743 (Eggman) - CalWORKs: eligibility: work activities ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 17, 2015 |Policy Vote: HUMAN S. 3 - 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 743 would make the following changes to the California Work Opportunity and Responsibility to Kids (CalWORKs) program: Exempts from consideration as income or property for purposes of determining CalWORKs eligibility, any education, training, vocation, or rehabilitation benefits, and related allowances, provided through the U.S. Department of Veterans Affairs, to active duty personnel, veterans, or dependents or spouses of those who died in the line of duty or have a service-connected disability. Adds study time to classroom, laboratory, and internship activities that are required to be counted toward participation requirements for self-initiated programs (SIPs). Specifies that a degree, certificate, or vocational program offered by a private college shall not be approved unless the program is either approved or exempted by the appropriate state regulatory agency and the program is in compliance with AB 743 (Eggman) Page 1 of ? all other laws. Fiscal Impact: Potentially significant ongoing costs in the hundreds of thousands of dollars (General Fund) annually for CalWORKs caseload increases and associated grant payments and services due to the expanded exemption of veterans' benefits from consideration as income for CalWORKs eligibility purposes. Potential ongoing increase in CalWORKs grant payments (General Fund) to the extent adding study time as an allowable activity to meet work requirements results in fewer sanctions for noncompliance being imposed. Background: Existing law establishes the CalWORKs program, under which each county provides cash assistance and other social services using federal Temporary Assistance for Needy Families (TANF) block grant funds, state, and county funds. The Department of Social Services (DSS) provides oversight of the CalWORKs program at the state-level. Under existing law, if an applicant or recipient of CalWORKs benefits receives one or more educational loans or grants, for purposes of determining availability of income, that person's educational expenses are not applied to any educational loans or grants that, under federal or state law, are totally exempt from consideration as income for purposes of determining CalWORKs eligibility. The Post-9/11 GI Bill provides for an education benefit program for individuals who served on active duty after September 10, 2001. Benefits include tuition and fee payment paid to the educational institution, a monthly housing allowance, as well as a stipend for books and supplies. Although existing law currently exempts the educational benefits received through the Post-9/11 GI Bill from the calculation of income for purposes of determining CalWORKs eligibility, existing statute is silent with respect to how housing allowances are considered, and whether educational benefits received by survivors or transferred to family members are similarly exempt from income eligibility consideration. AB 743 (Eggman) Page 2 of ? A self-initiated program (SIP) is an education/training program in which the participant was enrolled prior to the orientation/appraisal appointment. Existing state regulations provide that a SIP is approved based on meeting all of the following criteria: The individual is enrolled as of the date he or she is appraised, or the date he or she would have been appraised if he or she had not failed, without good cause, to appear for the appraisal appointment; The individual is making satisfactory progress in that program; The program will lead to self-supporting employment; and, The individual's welfare-to-work plan reflects this determination. Under existing state regulations, unless a SIP participant receives academic credit for study time, study time may not be included in a SIP participant's welfare-to-work plan. If participation in a SIP, as determined by the number of hours required for classroom, laboratory, or internship activities does not meet the per week hourly participation requirements, the county must require concurrent participation in specified welfare-to-work activities to reach the hourly participation requirement. This bill would revise existing law by providing that study time for classroom, laboratory and internship activities are required to be counted toward work participation requirements for SIP participants. Proposed Law: This bill would enact the CalWORKs Self-Sufficiency through Education and GI Bill Exemption Act of 2015, as follows: Exempts from consideration as income or property when determining eligibility for the CalWORKs program any education, training, vocation or rehabilitation benefits, as defined, provided by the U.S. Department of Veterans Affairs for active duty personnel, veterans, or dependents or spouses of those who died in the line of duty or have a service-connected disability. AB 743 (Eggman) Page 3 of ? Adds study time to classroom, laboratory, and internship activities that are required to be counted toward participation requirements for the SIP program. Specifies that a degree, certificate, or vocational program offered by a private college shall not be approved unless the program is either approved or exempted by the appropriate state regulatory agency and the program is in compliance with all other laws. -- END --