Amended in Senate June 30, 2016

Amended in Assembly April 6, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1584


Introduced by Assembly Member Brown

(Principal coauthor: Assembly Member Thurmond)

January 6, 2016


An act to amend Section 12201 of, and to add Section 12200.7 to, the Welfare and Institutions Code, relating to public social services, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1584, as amended, Brown. Public social services: SSI/SSP.

Existing law provides for the State Supplementary Program for the Aged, Blind and Disabled (SSP), which requires the State Department of Social Services to contract with the United States Secretary of Health and Human Services to make payments to SSP recipients to supplement Supplemental Security Income (SSI) payments made available pursuant to the federal Social Security Act.

Under existing law, benefit payments under SSP are calculated by establishing the maximum level of nonexempt income and federal SSI and state SSP benefits for each category of eligible recipient. The state SSP payment is the amount required, when added to the nonexempt income and SSI benefits available to the recipient, to provide the maximum benefit payment. Existing law prohibits, for each calendar year, commencing with the 2011 calendar year, any cost-of-living adjustment from being made to the maximum benefit payment unless otherwise specified by statute, except for the pass along of any cost-of-living increase in the federal SSI benefits. Existing law continuously appropriates funds for the implementation of SSP.

This bill would reinstate the cost-of-living adjustment beginning January 1 of the 2017 calendar year. The bill would also require a maximum aid paymentbegin insert provided to an individual or a married coupleend insert that does not equal or exceed 96% of the 2016 federal povertybegin delete level based on family size,end deletebegin insert level,end insert or 100% of the 2017 federal povertybegin delete level based on family size,end deletebegin insert level, as specified,end insert to be increased to an amount that equals 96% or 100% of the federal poverty level, respectively.

By reinstating the cost-of-living adjustment and by increasing the amount of benefits paid under the SSP, this bill would make an appropriation.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 12200.7 is added to the Welfare and
2Institutions Code
, to read:

3

12200.7.  

(a) Commencing January 1, 2017, any maximum aid
4payment providedbegin insert to an individualend insert pursuant to Section 12200 and
5adjusted pursuant to Section 12201 that does not equal or exceed
696 percent of the 2016 federal poverty levelbegin delete based on family sizeend delete
7begin insert for a household of oneend insert shall be increased to an amount that equals
896 percent of the 2016 federal poverty levelbegin delete based on family size.end delete
9
begin insert for a household of one.end insert

begin insert

10
(b) Commencing January 1, 2017, any maximum aid payment
11provided to a married couple pursuant to Section 12200 and
12adjusted pursuant to Section 12201 that does not equal or exceed
1396 percent of the 2016 federal poverty level for a household of two
14shall be increased to an amount that equals 96 percent of the 2016
15federal poverty level for a household of two.

end insert
begin delete

16(b)

end delete

17begin insert(c)end insert Commencing January 1, 2018, any maximum aid payment
18begin insert provided to an individual pursuant to Section 12200 and adjusted
19pursuant to Section 12201end insert
that does not equal or exceed 100
20percent of the 2017 federal poverty levelbegin delete based on family sizeend deletebegin insert for
21a household of oneend insert
shall be increased to an amount that equals 100
P3    1percent of the 2017 federal poverty levelbegin delete based on family size.end deletebegin insert for
2a household of one.end insert

begin insert

3
(d) Commencing January 1, 2018, any maximum aid payment
4provided to a married couple pursuant to Section 12200 and
5adjusted pursuant to Section 12201 that does not equal or exceed
6100 percent of the 2017 federal poverty level for a household of
7two shall be increased to an amount that equals 100 percent of
8the 2017 federal poverty level for a household of two.

end insert
begin delete

9(c)

end delete

10begin insert(e)end insert This section is not intended to result in the reduction of any
11paymentbegin insert provided to an individualend insert that exceeds 96 percent of the
122016 federal poverty levelbegin delete based on family sizeend deletebegin insert for a household
13of oneend insert
during the 2017 calendar year, or that exceeds 100 percent
14of the 2017 federal poverty levelbegin delete based on family sizeend deletebegin insert for a
15household of oneend insert
during the 2018 calendar year.

begin insert

16
(f) This section is not intended to result in the reduction of any
17payment provided to a married couple that exceeds 96 percent of
18the 2016 federal poverty level for a household of two during the
192017 calendar year, or that exceeds 100 percent of the 2017 federal
20poverty level for a household of two during the 2018 calendar
21year.

end insert
22

SEC. 2.  

Section 12201 of the Welfare and Institutions Code is
23amended to read:

24

12201.  

(a) Except as provided in subdivision (d), the payment
25schedules set forth in Section 12200 shall be adjusted annually to
26reflect any increases or decreases in the cost of living. Except as
27provided in subdivision (e) or (f), these adjustments shall become
28effective January 1 of each year. The cost-of-living adjustment
29shall be based on the changes in the California Necessities Index,
30which as used in this section shall be the weighted average of
31changes for food, clothing, fuel, utilities, rent, and transportation
32for low-income consumers. The computation of annual adjustments
33in the California Necessities Index shall be made in accordance
34with the following steps:

35(1) The base period expenditure amounts for each expenditure
36category within the California Necessities Index used to compute
37the annual grant adjustment are:


38

 

Food   

$ 3,027

Clothing (apparel and upkeep)   

406

Fuel and other utilities   

529

Rent, residential   

4,883

Transportation   

1,757

 

   

Total   

$10,602

P4    6

 

7(2) Based on the appropriate components of the Consumer Price
8Index for All Urban Consumers, as published by the United States
9Department of Labor, Bureau of Labor Statistics, the percentage
10change shall be determined for the 12-month period that ends 12
11months prior to the January in which the cost-of-living adjustment
12will take effect, for each expenditure category specified in
13paragraph (1) within the following geographical areas: Los
14Angeles-Long Beach-Anaheim, San Francisco-Oakland, San Diego,
15and, to the extent statistically valid information is available from
16the Bureau of Labor Statistics, additional geographical areas within
17the state that include not less than 80 percent of recipients of aid
18under this chapter.

19(3) Calculate a weighted percentage change for each of the
20expenditure categories specified in paragraph (1) using the
21applicable weighting factors for each area used by the Department
22of Industrial Relations to calculate the California Consumer Price
23Index (CCPI).

24(4) Calculate a category adjustment factor for each expenditure
25category in paragraph (1) by (1) adding 100 to the applicable
26weighted percentage change as determined in paragraph (2) and
27(2) dividing the sum by 100.

28(5) Determine the expenditure amounts for the current year by
29multiplying each expenditure amount determined for the prior year
30by the applicable category adjustment factor determined in
31paragraph (4).

32(6) Determine the overall adjustment factor by dividing (1) the
33sum of the expenditure amounts as determined in paragraph (4)
34for the current year by (2) the sum of the expenditure amounts as
35determined in paragraph (4) for the prior year.

36(b) The overall adjustment factor determined by the preceding
37computational steps shall be multiplied by the payment schedules
38established pursuant to Section 12200 as are in effect during the
39month of December preceding the calendar year in which the
40adjustments are to occur, and the product rounded to the nearest
P5    1dollar. The resultant amounts shall constitute the new schedules
2for the categories given under subdivisions (a), (b), (c), (d), (e),
3(f), and (g) of Section 12200, and shall be filed with the Secretary
4of State. The amount as set forth in subdivision (h) of Section
512200 shall be adjusted annually pursuant to this section in the
6event that the secretary agrees to administer payment under that
7subdivision. The payment schedule for subdivision (i) of Section
812200 shall be computed as specified, based on the new payment
9schedules for subdivisions (a), (b), (c), and (d) of Section 12200.

10(c) The department shall adjust any amounts of aid under this
11chapter to ensure that the minimum level required by the Social
12Security Act in order to maintain eligibility for funds under Title
13XIX of that act is met.

14(d) (1) No adjustment shall be made under this section for the
151991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 2004, 2006,
162007, 2008, 2009, and 2010 calendar years to reflect any change
17in the cost of living. Elimination of the cost-of-living adjustment
18pursuant to this paragraph shall satisfy the requirements of Section
1912201.05, and no further reduction shall be made pursuant to that
20 section.

21(2) Any cost-of-living adjustment granted under this section for
22any calendar year shall not include adjustments for any calendar
23year in which the cost-of-living adjustment was suspended pursuant
24to paragraph (1).

25(e) For the 2003 calendar year, the adjustment required by this
26section shall become effective June 1, 2003.

27(f) For the 2005 calendar year, the adjustment required by this
28section shall become effective April 1, 2005.



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