BILL NUMBER: AB 1809 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Lopez
FEBRUARY 8, 2016
An act to amend Section 95504 of the Government Code, and to amend
Sections 11151, 11257.5, 11322.5, 11375, 11450, 11450.5, 14140, and
18923 of, and to repeal Sections 11155, 11155.1, 11155.2, 11155.6,
11157.5, 11257, and 11260 of, the Welfare and Institutions Code,
relating to CalWORKs.
LEGISLATIVE COUNSEL'S DIGEST
AB 1809, as introduced, Lopez. CalWORKs eligibility: asset limits.
Existing federal law provides for allocation of federal funds
through the federal Temporary Assistance for Needy Families (TANF)
block grant program to eligible states, with California's version of
this program being known as the California Work Opportunity and
Responsibility to Kids (CalWORKs) program. Under the CalWORKs
program, each county provides cash assistance and other benefits to
qualified low-income families and individuals who meet specified
eligibility criteria, including limitations on income and assets
generally applicable to public assistance programs. Existing law
continuously appropriates money from the General Fund to pay for a
share of aid grant costs under the CalWORKs program.
This bill would repeal those limitations on assets with regard to
eligibility for CalWORKs, thereby, eliminating the consideration of
an individual's or family's assets as a condition of eligibility for
CalWORKs. The bill would also make conforming changes. By increasing
the duties of counties administering the CalWORKs program, the bill
would impose a state-mandated local program. The bill would declare
that no appropriation would be made for purposes of the bill pursuant
to the provision continuously appropriating funds for the CalWORKs
program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) In 1996, the United States Congress passed the Personal
Responsibility and Work Opportunity Reconciliation Act (PRWORA),
known as welfare reform, which created the Temporary Assistance to
Needy Families (TANF) program. TANF gives states power to design
their own programs, including establishing asset limits. The
California Work Opportunity and Responsibility to Kids (CalWORKs)
program is California's program that implements federal welfare
reform provisions.
(b) In California, to qualify for public assistance under
CalWORKs, impoverished families must demonstrate that they are both
income- and asset- poor. Under current law, a low-income family will
not qualify for assistance if the family has savings or other assets,
excluding a home and a vehicle of a specific value, exceeding the
asset limit of $2,000. The asset test has been removed for both
CalFresh and Medi-Cal.
(c) Research published in 2015 shows that very few families (0.1
percent) applying for or receiving CalWORKs assistance are found to
exceed the vehicle and cash asset test.
(d) Other states, realizing that very few families had assets over
the limit, have removed the limit with the goal of streamlining the
eligibility process and cutting down on administrative costs. In
Virginia, this decision has saved the state an estimated $400,000
annually, and to date, the State of Virginia has reported no negative
impacts. A study published in 2015 has estimated that if California
were to repeal the CalWORKs asset limit, there would be minimal to no
increase in caseloads and an annual $6.4 million in administrative
savings allowing county case workers to spend less time reviewing the
value of vehicles and savings and more time helping people get the
resources they need to get back to work.
(e) Asset limits were intended to ensure that public assistance
programs provide benefits only to those with too few resources to
support themselves. But years of research and practitioner experience
has proven that personal savings and assets are precisely the kinds
of resources that allow people to move off public benefits programs.
Without being able to maintain or build up a small savings cushion,
these families are highly vulnerable to falling into debt in the
event of an emergency or other unexpected expense.
(f) It is the intent of the Legislature to repeal the asset test
for the CalWORKs program, thereby aligning program rules with
Medi-Cal and CalFresh, making the program more efficient, and
increasing the capacity of poor families to exit poverty.
SEC. 2. Section 95504 of the Government Code is amended to read:
95504. (a) The nonprofit facilitator shall subcontract with
service providers to implement the project around the state. The
nonprofit facilitator shall make an attempt to select service
providers for programs of different size, geographical distribution,
and target population to be served. Additionally, the nonprofit
facilitator may consider giving special consideration to service
providers that demonstrate partnerships with local public agencies.
(b) The service providers shall perform all of the following
duties in implementing the project:
(1) Recruit and select participants who meet the following
criteria:
(A) The individual is at least 18 years of age.
(B) The individual is a member of a household with an income of
not more than 80 percent of the area median income based on United
States Department of Housing and Urban Development guidelines at the
time of program enrollment.
(C) The individual is not a dependent of another person for
federal income tax purposes.
(D) The individual is not a debtor for a judgment resulting from
nonpayment of a court-ordered child support obligation.
(E) The individual meets eligibility criteria as defined by the
funding source for the program created under this title.
(2) Develop and sign contracts with each participant, to include
all program requirements and policies governing the participant's
account.
(3) Assist participants in opening individual development
accounts. CalWORKs recipients participating in the project
may consider using a restricted account as described in Section
11155.2 of the Welfare and Institutions Code. Otherwise, the
The accounts shall be established using
a parallel an account structure parallel
to a restricted account as described in former Section 11155.2 of the
Welfare and Institutions Code that meets both of the following
requirements:
(A) One separate account shall be established for each participant
in a federally or state insured financial institution, community
development financial institution, any financial institution eligible
to hold an individual retirement account, or community development
credit union, in which each participant's savings are deposited and
maintained. The program participant may withdraw his or her own
savings at any time.
(B) Another separate, parallel account shall be established and
maintained by service providers in which the matching funds from
state, federal, and private donations are kept. The parallel account
may contain all matching funds for a pool of any service provider's
participants.
(4) Help individuals receive their matching funds at the
conclusion of the program.
(5) Provide participants with a minimum of 12 hours of financial
education and training. The education and training shall include, but
need not be limited to, all of the following:
(A) Household and personal budget management.
(B) Economic literacy.
(C) Credit repair.
(6) Develop a program dismissal process for participants who do
not fulfill program participation requirements, and seek to ensure
that matching funds are used for their intended purposes.
(7) Collect and maintain information about their programs, in a
manner that provides the capacity to report semiannually all of the
following information to the department:
(A) The number and demographic characteristics of participants
enrolled in the program.
(B) The number of accounts established.
(C) The individual and aggregate savings level of participants.
(D) The number of participants who closed accounts and the amount
of associated savings.
(E) The actual and proposed program budget.
(F) The size and origin of matching pool funds received,
obligated, and paid to participants.
(G) The program achievements and obstacles.
(H) Twelve-month program and financial projections.
(I) At least one participant profile.
SEC. 3. Section 11151 of the Welfare and Institutions Code is
amended to read:
11151. An applicant or recipient shall be ineligible to receive
public assistance unless the property he owns is held for the
following purposes:
1.
(a) The property is used to provide the applicant or
recipient with a home and conforms to the provisions of Section 11152
of this code .
2.
(b) The property is producing income for the support of
the applicant or recipient and conforms to the provisions of Section
11153.7 of this code .
3.
(c) The property is held as a reserve to meet a
contingent need, not included within the standard of assistance for
which an aid payment is made, and conforms to the provisions of
Section 11154 of this code .
4.
(d) The property is personal in nature, or meets a
special need of the applicant or recipient, or is part of a self-care
or rehabilitation plan, or is not available for expenditure or
disposition by the applicant or recipient and conforms to
provisions of Section 11155 of this code .
SEC. 4. Section 11155 of the Welfare and Institutions Code is
repealed.
11155. (a) Notwithstanding Section 11257, in addition to the
personal property or resources permitted by other provisions of this
part, and to the extent permitted by federal law, an applicant or
recipient for aid under this chapter including an applicant or
recipient under Chapter 2 (commencing with Section 11200) may retain
countable resources in an amount equal to the amount permitted under
federal law for qualification for the federal Supplemental Nutrition
Assistance Program, administered in California as CalFresh.
(b) The county shall determine the value of exempt personal
property other than motor vehicles in conformance with methods
established under CalFresh.
(c) (1) (A) The value of each motor vehicle that is not exempt
under paragraph (4) shall be the equity value of the vehicle, which
shall be the fair market value less encumbrances.
(B) Any motor vehicle with an equity value of nine thousand five
hundred dollars ($9,500) or less shall not be attributed to the
family's resource level.
(C) For each motor vehicle with an equity value of more than nine
thousand five hundred dollars ($9,500), the equity value that exceeds
nine thousand five hundred dollars ($9,500) shall be attributed to
the family's resource level.
(2) The equity threshold described in paragraph (1) of nine
thousand five hundred dollars ($9,500) shall be adjusted upward
annually by the increase, if any, in the United States Transportation
Consumer Price Index for All Urban Consumers published by the United
States Department of Labor, Bureau of Labor Statistics.
(3) The county shall determine the fair market value of the
vehicle in accordance with a methodology determined by the
department. The applicant or recipient shall self-certify the amount
of encumbrance, if any.
(4) The entire value of any motor vehicle shall be exempt if any
of the following apply:
(A) It is used primarily for income-producing purposes.
(B) It annually produces income that is consistent with its fair
market value, even if used on a seasonal basis.
(C) It is necessary for long distance travel, other than daily
commuting, that is essential for the employment of a family member.
(D) It is used as the family's residence.
(E) It is necessary to transport a physically disabled family
member, including an excluded disabled family member, regardless of
the purpose of the transportation.
(F) It would be exempted under any of subparagraphs (A) to (D),
inclusive, but the vehicle is not in use because of temporary
unemployment.
(G) It is used to carry fuel for heating for home use, when the
transported fuel or water is the primary source of fuel or water for
the family.
(H) Ownership of the vehicle was transferred through a gift,
donation, or family transfer, as defined by the Department of Motor
Vehicles.
(d) This section shall become operative on January 1, 2014.
SEC. 5. Section 11155.1 of the Welfare and Institutions Code is
repealed.
11155.1. (a) Notwithstanding Sections 11155 and 11257, the
department shall seek any federal approvals necessary to conduct a
demonstration program increasing the value of personal property that
may be retained by a recipient of aid under Chapter 2 (commencing
with Section 11200) to two thousand dollars ($2,000) and increasing
the value of the exemption for an automobile to four thousand five
hundred dollars ($4,500). The increased property limits shall not
apply to applicants.
(b) This section shall be implemented only if the director
executes a declaration, that shall be retained by the director,
stating that federal approval for the implementation of this section
has been obtained and specifying the duration of that approval.
SEC. 6. Section 11155.2 of the Welfare and Institutions Code is
repealed.
11155.2. (a) In addition to the personal property permitted by
this part, recipients of aid under CalWORKs shall be permitted to
retain savings and interest thereon for specified purposes. Interest
earned from these savings and deposited into a restricted account
shall be considered exempt as income for purposes of determining
eligibility for aid and grant amounts if the interest is retained in
the account. If the interest is not deposited by the financial
institution into the account, the interest shall be treated as a
nonqualifying withdrawal of funds from the account as specified in
subdivision (b). This section shall not apply to applicants. Funds
may be used by the family for education or job training expenses for
the accountholder or his or her dependents, for starting a business,
for the purchase of a home, or for costs associated with securing
permanent rental housing or to make rent payments to overcome an
episode of homelessness. Recipients who wish to retain savings for
these purposes shall enter into a written agreement with the county
to establish a separate account with a financial institution, with
the account to be used solely for the purpose of accumulating funds
for later withdrawal for a qualifying expenditure. A qualifying
expenditure shall be defined by department regulations and shall be
verified by the recipient. The recipient shall agree to provide
periodic verification of account activity, as required by department
regulations. The agreement shall notify the recipient of the penalty
for nonqualifying withdrawal of funds.
(b) Any nonqualifying withdrawal of funds from the account shall
result in a calculation of a period of ineligibility for all persons
in the assistance unit, to be determined by dividing the balance in
the account immediately prior to the withdrawal by the minimum basic
standard of adequate care for the members of the assistance unit, as
set forth in Section 11452. The resulting whole number shall be the
number of months of ineligibility. The period of ineligibility may be
reduced when the minimum basic standard of adequate care of the
assistance unit, including special needs, increases.
(c) If the California Savings and Asset Project is established
pursuant to Chapter 17 (commencing with Section 50897) of Part 2 of
Division 31 of the Health and Safety Code, then to the extent
permitted by federal law, a recipient shall be eligible to receive
matching funds derived from federal contributions for the purpose of
establishing an individual account in an amount not to exceed three
thousand dollars ($3,000) in addition to the amounts specified in
subdivision (a) and a fiduciary organization may provide amounts in
excess of the first three thousand dollars ($3,000) limitation if
contributed solely through private sources.
SEC. 7. Section 11155.6 of the Welfare and Institutions Code is
repealed.
11155.6. (a) (1) The principal and interest in a 401(k) plan, 403
(b) plan, or 457 plan shall be excluded from consideration as
property when determining eligibility and the amount of assistance
with respect to an applicant for benefits who is not a recipient of
CalWORKs benefits.
(2) The principal and interest in a 401(k) plan, 403(b) plan, IRA,
457 plan, 529 college savings plan, or Coverdell ESA, shall be
excluded from consideration as property when redetermining
eligibility and the amount of assistance for recipients of CalWORKs
benefits.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "401(k) plan" means a deferred compensation plan that
satisfies the requirements of Section 401(k) of the Internal Revenue
Code.
(2) "403(b) plan" means a qualified annuity plan that satisfies
the requirements of Section 403(b) of the Internal Revenue Code.
(3) "IRA" means an individual retirement account that satisfies
the requirements of Section 408 of the Internal Revenue Code.
(4) "457 plan" means a deferred compensation plan that satisfies
the requirements of Section 457 of the Internal Revenue Code.
(5) "529 college savings plan" means a qualified tuition program
that satisfies the requirements of Section 529 of the Internal
Revenue Code.
(6) "Coverdell ESA" means an education savings account that
satisfies the requirements of Section 530 of the Internal Revenue
Code.
SEC. 8. Section 11157.5 of the Welfare and Institutions Code is
repealed.
11157.5. The receipt of aid under Chapter 2 (commencing with
Section 11200) shall not impose any limitation or restriction upon a
recipient's right to sell, exchange, or change, the form of property
holdings. However, a gift or any other transfer of assets, including
income and resources, by a recipient for less than fair market value
shall result in a period of ineligibility for aid under Chapter 2
(commencing with Section 11200) for the number of months, rounded
down to the nearest whole number, that equals the quotient of the
difference between the fair market value of the asset and the amount
received for the asset divided by the standard of need applicable to
the family under Section 11452. This section shall only apply to
transfer of income or resources that would otherwise affect a
recipient's eligibility for benefits or the amount of benefits to
which he or she would be entitled.
SEC. 9. Section 11257 of the Welfare and Institutions Code is
repealed.
11257. (a) To the extent not inconsistent with Sections 11265.1,
11265.2, 11265.3, and 11004.1, no aid under this chapter shall be
granted or paid for any child who has real or personal property, the
combined market value reduced by any obligations or debts with
respect to this property of which exceeds one thousand dollars
($1,000), or for any child or children in one family who have, or
whose parents have, or the child or children and parents have, real
and personal property the combined market value reduced by any
obligations or debts with respect to this property which exceeds one
thousand dollars ($1,000).
For purposes of this subdivision, real and personal property shall
be considered both when actually available and when the applicant or
recipient has a legal interest in a liquidated sum and has the legal
ability to make that sum available for support and maintenance.
(b) Notwithstanding subdivision (a) above, an applicant or
recipient may retain the following:
(1) Personal or real property owned by him or her, or in
combination with any other person, without reference to its value, if
it serves to provide the applicant or recipient with a home. If the
basic home is a unit in a multiple dwelling, then only that unit
shall be exempt.
For the purposes of paragraph (1), if an applicant has entered
into a marital separation for the purpose of trial or legal
separation or dissolution, real property which was the usual home of
the applicant shall be exempt for three months following the end of
the month in which aid begins. If the recipient was receiving aid
when the marital separation occurred, the period of exemption shall
be three months following the end of the month in which the
separation occurs. To remain exempt following this three-month
period, the home must be occupied by the recipient, or be unavailable
for use, control, and possession due to legal proceedings affecting
a property settlement or sale of the property.
(2) Personal property consisting of one automobile with maximum
equity value as permitted by federal law.
(3) In addition to the foregoing, the director may at his or her
discretion, and to the extent permitted by federal law, exempt other
items of personal property not exempted under this section.
SEC. 10. Section 11257.5 of the Welfare and Institutions Code is
amended to read:
11257.5. Notwithstanding the property limitations in
subdivision (a) of Section 11257, a A family may
retain, for nine months, real property if the family is making a
good faith effort to sell the real property. However, any aid payable
to the family for the nine-month period shall be conditioned upon
the sale. At the time of the sale any aid payments made during the
nine-month period shall be considered overpayments to the extent they
would not have been made had the sale occurred at the beginning of
the nine-month period. Notwithstanding Section 11004 overpayments
shall be recouped from the proceeds of the sale. If the real
property has not been sold at the end of the nine-month period, the
family shall be ineligible for aid if the combined net value of the
real and personal property owned by the family exceeds the one
thousand dollar ($1,000) limitation in Section 11257.
Notwithstanding Section 11007 as a condition to the granting of
aid pursuant to this section, the family shall grant the county a
lien upon the real property as security for the aid to be paid. The
lien shall be used to recoup any overpayments incurred pursuant to
this section. Notwithstanding any other provision of
law, the lien shall not be enforceable by the sale of the
secured property by the county. The lien of the county shall be paid
upon the sale of the property.
The department shall define good faith effort in regulation.
SEC. 11. Section 11260 of the Welfare and Institutions Code is
repealed.
11260. A child's share of any estate, which share has not been
distributed and of which he has no present economic use, does not
constitute property for the purpose of this chapter.
SEC. 12. Section 11322.5 of the Welfare and Institutions Code is
amended to read:
11322.5. (a) It is the intent of the Legislature to do each of
the following:
(1) Maximize the ability of CalWORKs recipients to benefit from
the federal Earned Income Tax Credit (EITC), including retroactive
EITC credits and the Advance EITC, take advantage of the
earned-income disregard to increase their federal Food Stamp
CalFresh Program benefits, and accumulate
credit toward future social security income.
(2) Educate and empower all CalWORKs participants who receive the
federal EITC to save or invest part or all of their credits in
instruments such as individual development accounts, 401(k) plans,
403(b) plans, IRAs, 457 plans, Coverdell ESA plans,
restricted accounts pursuant to subdivision (a) of Section 11155.2,
or 529 plans, and to take advantage of the federal Assets
for Independence program and other matching funds, tools, and
training available from public or private sources, in order to build
their assets.
(b) It is the intent of the Legislature that counties encourage
CalWORKs recipients to participate in activities that will maximize
their receipt of the EITC. To this end, counties may do all of the
following:
(1) Structure welfare-to-work activities pursuant to subdivisions
(a) to (j), inclusive, of Section 11322.6 to give recipients the
option of maximizing the portion of their CalWORKs benefits that
meets the definition of "earned income" in Section 32(c)(2) of the
Internal Revenue Code.
(2) Inform CalWORKs recipients of each of the following:
(A) That earned income, either previous or future, may make them
eligible for the federal EITC, including retroactive EITC credits and
the Advance EITC, increase their federal Food Stamp
CalFresh Program benefits, and accumulate credit
toward future social security income.
(B) That recipients, as part of their welfare-to-work plans, have
the option of engaging in subsidized employment and grant-based
on-the-job training, as specified in Section 11322.6, and that
participating in these activities will increase their earned income
to the extent that they meet the requirements of federal law.
(C) That receipt of the federal EITC does not affect their
CalWORKs grant and is additional tax-free income for them.
(D) That a CalWORKs recipient who receives the federal EITC may
invest these funds in an individual development account, 401(k) plan,
403(b) plan, IRA, 457 plan, 529 college savings plan, or
Coverdell ESA, or restricted account, and that
investments in these accounts will not make the recipient ineligible
for CalWORKs benefits or reduce the recipient's CalWORKs benefits.
(3) At each regular eligibility redetermination, the county shall
ask a recipient whether the recipient is eligible for and takes
advantage of the EITC. If the recipient may be eligible and does not
participate, the county shall give the recipient the federal EITC
form and encourage and assist the recipient to take advantage of it.
(c) (1) No later than December 1, 2008, the State Department of
Social Services shall develop guidelines that counties may adopt to
carry out the intent of this section and shall present options to the
Governor and Legislature for any legislation necessary to further
carry out the intent of this section.
(2) In developing the guidelines and legislative options, the
department shall consult and convene at least one meeting of
subject-matter experts, including representatives from the Assembly
and Senate Committees on Human Services, Assets for All Alliance,
Asset Policy Initiative of California, California Budget Project,
California Catholic Conference, California Council of Churches,
California Family Resource Association,
California State Association of Counties, CFED, County
Welfare Directors Association of California, Federal Reserve Bank of
San Francisco, Legislative Analyst's Office, Lifetime, National
Council of Churches, Insight Center for Community Economic
Development, New America Foundation, Public Policy Institute of
California, University of California at Los Angeles School of Law,
United States Internal Revenue Service, and Western Center on Law and
Poverty. Nothing in this section requires the department to
compensate or pay expenses for any person it consults or invites to
the meeting or meetings.
SEC. 13. Section 11375 of the Welfare and Institutions Code is
amended to read:
11375. The following shall apply to any child or nonminor in
receipt of state-funded Kin-GAP benefits:
(a) He or she is eligible to request and receive independent
living services pursuant to Section 10609.3.
(b) He or she may retain cash savings, not to exceed ten thousand
dollars ($10,000), including interest, in addition to any other
property accumulated pursuant to former Section 11257 or
Section 11257.5.
(c) He or she shall have earned income disregarded pursuant to
Section 11008.15.
SEC. 14. Section 11450 of the Welfare and Institutions Code, as
added by Section 4 of Chapter 632 of the Statutes of 2014, is amended
to read:
11450. (a) (1) (A) Aid shall be paid for each needy family, which
shall include all eligible brothers and sisters of each eligible
applicant or recipient child and the parents of the children, but
shall not include unborn children, or recipients of aid under Chapter
3 (commencing with Section 12000), qualified for aid under this
chapter. In determining the amount of aid paid, and notwithstanding
the minimum basic standards of adequate care specified in Section
11452, the family's income, exclusive of any amounts considered
exempt as income or paid pursuant to subdivision (e) or Section
11453.1, determined for the prospective semiannual period pursuant to
Sections 11265.1, 11265.2, and 11265.3, and then calculated pursuant
to Section 11451.5, shall be deducted from the sum specified in the
following table, as adjusted for cost-of-living increases pursuant to
Section 11453 and paragraph (2). In no case shall the amount of aid
paid for each month exceed the sum specified in the following table,
as adjusted for cost-of-living increases pursuant to Section 11453
and paragraph (2), plus any special needs, as specified in
subdivisions (c), (e), and (f):
Number
of
eligible
needy
persons
in Maximum
the same home aid
1.............................. $ 326
2.............................. 535
3.............................. 663
4.............................. 788
5.............................. 899
6.............................. 1,010
7.............................. 1,109
8.............................. 1,209
9.............................. 1,306
10 or more...................... 1,403
(B) If, when, and during those times that the United States
government increases or decreases its contributions in assistance of
needy children in this state above or below the amount paid on July
1, 1972, the amounts specified in the above table shall be increased
or decreased by an amount equal to that increase or decrease by the
United States government, provided that no increase or decrease shall
be subject to subsequent adjustment pursuant to Section 11453.
(2) The sums specified in paragraph (1) shall not be adjusted for
cost of living for the 1990-91, 1991-92, 1992-93, 1993-94, 1994-95,
1995-96, 1996-97, and 1997-98 fiscal years, and through October 31,
1998, nor shall that amount be included in the base for calculating
any cost-of-living increases for any fiscal year thereafter.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of former Section
11453.05, and no further reduction shall be made pursuant to that
section.
(b) (1) When the family does not include a needy child qualified
for aid under this chapter, aid shall be paid to a pregnant child who
is 18 years of age or younger at any time after verification of
pregnancy, in the amount that would otherwise be paid to one person,
as specified in subdivision (a), if the child and her child, if born,
would have qualified for aid under this chapter. Verification of
pregnancy shall be required as a condition of eligibility for aid
under this subdivision.
(2) Notwithstanding paragraph (1), when the family does not
include a needy child qualified for aid under this chapter, aid shall
be paid to a pregnant woman for the month in which the birth is
anticipated and for the six-month period immediately prior to the
month in which the birth is anticipated, in the amount that would
otherwise be paid to one person, as specified in subdivision (a), if
the woman and child, if born, would have qualified for aid under this
chapter. Verification of pregnancy shall be required as a condition
of eligibility for aid under this subdivision.
(3) Paragraph (1) shall apply only when the Cal-Learn Program is
operative.
(c) The amount of forty-seven dollars ($47) per month shall be
paid to pregnant women qualified for aid under subdivision (a) or (b)
to meet special needs resulting from pregnancy if the woman and
child, if born, would have qualified for aid under this chapter.
County welfare departments shall refer all recipients of aid under
this subdivision to a local provider of the Women, Infants, and
Children program. If that payment to pregnant women qualified for aid
under subdivision (a) is considered income under federal law in the
first five months of pregnancy, payments under this subdivision shall
not apply to persons eligible under subdivision (a), except for the
month in which birth is anticipated and for the three-month period
immediately prior to the month in which delivery is anticipated, if
the woman and child, if born, would have qualified for aid under this
chapter.
(d) For children receiving AFDC-FC under this chapter, there shall
be paid, exclusive of any amount considered exempt as income, an
amount of aid each month that, when added to the child's income, is
equal to the rate specified in Section 11460, 11461, 11462, 11462.1,
or 11463. In addition, the child shall be eligible for special needs,
as specified in departmental regulations.
(e) In addition to the amounts payable under subdivision (a) and
Section 11453.1, a family shall be entitled to receive an allowance
for recurring special needs not common to a majority of recipients.
These recurring special needs shall include, but not be limited to,
special diets upon the recommendation of a physician for
circumstances other than pregnancy, and unusual costs of
transportation, laundry, housekeeping services, telephone, and
utilities. The recurring special needs allowance for each family per
month shall not exceed that amount resulting from multiplying the sum
of ten dollars ($10) by the number of recipients in the family who
are eligible for assistance.
(f) After a family has used all available liquid resources, both
exempt and nonexempt, in excess of one hundred dollars ($100),
with the exception of funds deposited in a restricted
account described in subdivision (a) of Section 11155.2, the
family shall also be entitled to receive an allowance for
nonrecurring special needs.
(1) An allowance for nonrecurring special needs shall be granted
for replacement of clothing and household equipment and for emergency
housing needs other than those needs addressed by paragraph (2).
These needs shall be caused by sudden and unusual circumstances
beyond the control of the needy family. The department shall
establish the allowance for each of the nonrecurring special needs
items. The sum of all nonrecurring special needs provided by this
subdivision shall not exceed six hundred dollars ($600) per event.
(2) (A) Homeless assistance is available to a homeless family
seeking shelter when the family is eligible for aid under this
chapter. Homeless assistance for temporary shelter is also available
to homeless families that are apparently eligible for aid under this
chapter. Apparent eligibility exists when evidence presented by the
applicant, or that is otherwise available to the county welfare
department, and the information provided on the application documents
indicate that there would be eligibility for aid under this chapter
if the evidence and information were verified. However, an alien
applicant who does not provide verification of his or her eligible
alien status, or a woman with no eligible children who does not
provide medical verification of pregnancy, is not apparently eligible
for purposes of this section.
(B) A family is considered homeless, for the purpose of this
section, when the family lacks a fixed and regular nighttime
residence; or the family has a primary nighttime residence that is a
supervised publicly or privately operated shelter designed to provide
temporary living accommodations; or the family is residing in a
public or private place not designed for, or ordinarily used as, a
regular sleeping accommodation for human beings. A family is also
considered homeless for the purpose of this section if the family has
received a notice to pay rent or quit. The family shall demonstrate
that the eviction is the result of a verified financial hardship as a
result of extraordinary circumstances beyond their control, and not
other lease or rental violations, and that the family is experiencing
a financial crisis that could result in homelessness if preventative
assistance is not provided.
(A)
( C) (i) A nonrecurring special needs
benefit of sixty-five dollars ($65) a day shall be available to
families of up to four members for the costs of temporary shelter,
subject to the requirements of this paragraph. The fifth and
additional members of the family shall each receive fifteen dollars
($15) per day, up to a daily maximum of one hundred twenty-five
dollars ($125). County welfare departments may increase the daily
amount available for temporary shelter as necessary to secure the
additional bedspace needed by the family.
(ii) This special needs benefit shall be granted or denied
immediately upon the family's application for homeless assistance,
and benefits shall be available for up to three working days. The
county welfare department shall verify the family's homelessness
within the first three working days and if the family meets the
criteria of questionable homelessness established by the department,
the county welfare department shall refer the family to its early
fraud prevention and detection unit, if the county has such a unit,
for assistance in the verification of homelessness within this
period.
(iii) After homelessness has been verified, the three-day limit
shall be extended for a period of time which, when added to the
initial benefits provided, does not exceed a total of 16 calendar
days. This extension of benefits shall be done in increments of one
week and shall be based upon searching for permanent housing which
shall be documented on a housing search form, good cause, or other
circumstances defined by the department. Documentation of a housing
search shall be required for the initial extension of benefits beyond
the three-day limit and on a weekly basis thereafter as long as the
family is receiving temporary shelter benefits. Good cause shall
include, but is not limited to, situations in which the county
welfare department has determined that the family, to the extent it
is capable, has made a good faith but unsuccessful effort to secure
permanent housing while receiving temporary shelter benefits.
(B)
(D) (i) A nonrecurring special needs benefit for
permanent housing assistance is available to pay for last month's
rent and security deposits when these payments are reasonable
conditions of securing a residence, or to pay for up to two months of
rent arrearages, when these payments are a reasonable condition of
preventing eviction.
(ii) The last month's rent or monthly arrearage portion of the
payment (I) shall not exceed 80 percent of the family's total monthly
household income without the value of CalFresh benefits or special
needs benefit for a family of that size and (II) shall only be made
to families that have found permanent housing costing no more than 80
percent of the family's total monthly household income without the
value of CalFresh benefits or special needs benefit for a family of
that size.
(iii) However, if the county welfare department determines that a
family intends to reside with individuals who will be sharing housing
costs, the county welfare department shall, in appropriate
circumstances, set aside the condition specified in subclause (II) of
clause (ii).
(C)
(E) The nonrecurring special needs benefit for
permanent housing assistance is also available to cover the standard
costs of deposits for utilities which are necessary for the health
and safety of the family.
(D)
(F) A payment for or denial of permanent housing
assistance shall be issued no later than one working day from the
time that a family presents evidence of the availability of permanent
housing. If an applicant family provides evidence of the
availability of permanent housing before the county welfare
department has established eligibility for aid under this chapter,
the county welfare department shall complete the eligibility
determination so that the denial of or payment for permanent housing
assistance is issued within one working day from the submission of
evidence of the availability of permanent housing, unless the family
has failed to provide all of the verification necessary to establish
eligibility for aid under this chapter.
(E)
(G) (i) Except as provided in clauses (ii) and (iii),
eligibility for the temporary shelter assistance and the permanent
housing assistance pursuant to this paragraph shall be limited to one
period of up to 16 consecutive calendar days of temporary assistance
and one payment of permanent assistance. Any family that includes a
parent or nonparent caretaker relative living in the home who has
previously received temporary or permanent homeless assistance at any
time on behalf of an eligible child shall not be eligible for
further homeless assistance. Any person who applies for homeless
assistance benefits shall be informed that the temporary shelter
benefit of up to 16 consecutive days is available only once in a
lifetime, with certain exceptions, and that a break in the
consecutive use of the benefit constitutes permanent exhaustion of
the temporary benefit.
(ii) A family that becomes homeless as a direct and primary result
of a state or federally declared natural disaster shall be eligible
for temporary and permanent homeless assistance.
(iii) A family shall be eligible for temporary and permanent
homeless assistance when homelessness is a direct result of domestic
violence by a spouse, partner, or roommate; physical or mental
illness that is medically verified that shall not include a diagnosis
of alcoholism, drug addiction, or psychological stress; or, the
uninhabitability of the former residence caused by sudden and unusual
circumstances beyond the control of the family including natural
catastrophe, fire, or condemnation. These circumstances shall be
verified by a third-party governmental or private health and human
services agency, except that domestic violence may also be verified
by a sworn statement by the victim, as provided under Section
11495.25. Homeless assistance payments based on these specific
circumstances may not be received more often than once in any
12-month period. In addition, if the domestic violence is verified by
a sworn statement by the victim, the homeless assistance payments
shall be limited to two periods of not more than 16 consecutive
calendar days of temporary assistance and two payments of permanent
assistance. A county may require that a recipient of homeless
assistance benefits who qualifies under this paragraph for a second
time in a 24-month period participate in a homelessness avoidance
case plan as a condition of eligibility for homeless assistance
benefits. The county welfare department shall immediately inform
recipients who verify domestic violence by a sworn statement of the
availability of domestic violence counseling and services, and refer
those recipients to services upon request.
(iv) If a county requires a recipient who verifies domestic
violence by a sworn statement to participate in a homelessness
avoidance case plan pursuant to clause (iii), the plan shall include
the provision of domestic violence services, if appropriate.
(v) If a recipient seeking homeless assistance based on domestic
violence pursuant to clause (iii) has previously received homeless
avoidance services based on domestic violence, the county shall
review whether services were offered to the recipient and consider
what additional services would assist the recipient in leaving the
domestic violence situation.
(vi) The county welfare department shall report necessary data to
the department through a statewide homeless assistance payment
indicator system, as requested by the department, regarding all
recipients of aid under this paragraph.
(F)
(H) The county welfare departments, and all other
entities participating in the costs of the CalWORKs program, have the
right in their share to any refunds resulting from payment of the
permanent housing. However, if an emergency requires the family to
move within the 12-month period specified in subparagraph
(E), (G), the family shall be allowed to use any
refunds received from its deposits to meet the costs of moving to
another residence.
(G)
(I) Payments to providers for temporary shelter and
permanent housing and utilities shall be made on behalf of families
requesting these payments.
(H)
(J) The daily amount for the temporary shelter special
needs benefit for homeless assistance may be increased if authorized
by the current year's Budget Act by specifying a different daily
allowance and appropriating the funds therefor.
(I)
(K) No payment shall be made pursuant to this paragraph
unless the provider of housing is a commercial establishment,
shelter, or person in the business of renting properties who has a
history of renting properties.
(g) The department shall establish rules and regulations ensuring
the uniform statewide application of this section.
(h) The department shall notify all applicants and recipients of
aid through the standardized application form that these benefits are
available and shall provide an opportunity for recipients to apply
for the funds quickly and efficiently.
(i) (A) (1)
Except for the purposes of Section 15200, the amounts payable
to recipients pursuant to Section 11453.1 shall not constitute part
of the payment schedule set forth in subdivision (a).
(B)
(2) The amounts payable to recipients pursuant to
Section 11453.1 shall not constitute income to recipients of aid
under this section.
(j) For children receiving Kin-GAP pursuant to Article 4.5
(commencing with Section 11360) or Article 4.7 (commencing with
Section 11385) there shall be paid, exclusive of any amount
considered exempt as income, an amount of aid each month, which, when
added to the child's income, is equal to the rate specified in
Sections 11364 and 11387.
(k) (1) A county shall implement the semiannual reporting
requirements in accordance with Chapter 501 of the Statutes of
2011 no later than October 1, 2013. 2011.
(2) Upon completion of the implementation described in paragraph
(1), each county shall provide a certificate to the director
certifying that semiannual reporting has been implemented in the
county.
(3) Upon filing the certificate described in paragraph (2), a
county shall comply with the semiannual reporting provisions of this
section.
(l) This section shall become operative on July 1, 2015.
SEC. 15. Section 11450.5 of the Welfare and Institutions Code is
amended to read:
11450.5. For purposes of computing and paying aid grants under
this chapter, the director shall adopt regulations establishing a
budgeting system consistent with Sections 11265.1, 11265.2, and
11265.3. Nothing in this section, or Sections 11004, 11257
11004 and 11450, or any other provision of this
code, shall be interpreted as prohibiting the establishment of, or
otherwise restricting the operation of, any budgeting system adopted
by the director.
SEC. 16. Section 14140 of the Welfare and Institutions Code is
amended to read:
14140. The following definitions shall apply to the provisions of
this article:
(a) "Net worth" means:
(1) Personal property, which consists of cash, savings accounts,
securities, and similar items; notes, mortgages and deeds of trust;
the cash surrender value of life insurance on the life of the
applicant or beneficiary, on the life of the spouse or any member of
the family, except as provided in Section 11158; motor vehicles,
except one which meets the transportation needs of the person or
family; any other property or equity other than real estate,
except that property specified in subdivisions (1), (2) and (3) of
Section 11155. estate.
(2) Real property, including any interest in land of more than
nominal interest which does not constitute the home of the applicant
for aid under this chapter. The home of the applicant shall be exempt
from consideration as net worth under this section to the extent of
ten thousand dollars ($10,000) in assessed valuation, as assessed by
the county assessor.
(3) "Income" which consists of the sum of adjusted gross income as
used for purposes of the Federal Income Tax Law.
(b) "Family unit" means:
(1) In the case of an unmarried patient under 21 years of age
living with his parent or parents, the patient and his parents.
(2) In the case of a married patient under 21 years of age, the
patient and his spouse.
(3) In the case of a patient over 21, the patient, and if married,
the patient's wife.
SEC. 17. Section 18923 of the Welfare and Institutions Code is
amended to read:
18923. (a) The State Department of Social Services shall submit a
request to the United States Department of Agriculture for a waiver
to permit a CalFresh household to retain funds in the restricted
savings account as specified in subdivision (a) of former
Section 11155.2 and as accumulated while participating in the Aid to
Families with Dependent Children program. The participation
requirements for this specific savings account as specified in
subdivision (a) of former Section 11155.2 shall apply to
CalFresh. Penalties for nonqualifying withdrawal of these funds shall
result in a calculation of a period of ineligibility for all persons
in the CalFresh household, to be determined by dividing the balance
in the account immediately prior to the withdrawal by the CalFresh
allotment to which the household is entitled. The resulting whole
number shall be the number of months of ineligibility. The period of
ineligibility may be reduced when the divisor, which is the CalFresh
allotment, increases as a result of a cost-of-living adjustment.
(b) The director may waive, with federal approval, the enforcement
of specific federal Supplemental Nutrition Assistance Program
requirements, regulations, and standards necessary to implement this
provision.
SEC. 18. No appropriation pursuant to Section 15200 of Welfare and
Institutions Code shall be made for the purposes of this act.
SEC. 19. If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.