Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2062

Introduced by Assembly Member Lopez

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(Coauthor: Assembly Member Gallagher)

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February 17, 2016

An act to amend begin delete Section end delete begin insert Sections 11265.3 and end insert 11265.47 of the Welfare and Institutions Code, relating to CalWORKs.

LEGISLATIVE COUNSEL’S DIGEST

AB 2062, as amended, Lopez. CalWORKs: income reporting: benefit redetermination.

Existing law establishes the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families using a combination of federal, state, and county funds. Existing law requires the State Department of Social Services to establish an income reporting threshold for CalWORKs recipients, begin insert including CalWORKs assistance units that do not include an eligible adult, end insert and requires a recipient to notify the county, within 10 days, if the recipient’s household income exceeds the reporting threshold. Under existing law, if the county determines that the recipient is ineligible for CalWORKs or the recipient’s grant amount should be reduced based on an increase in income, the county is required to discontinue the recipient from CalWORKs or reduce the recipient’s grant, with timely and adequate notice, effective the following month. Existing law provides that current and future grants may be reduced because of prior overpayments.

This bill begin delete would end delete begin insert would, for recipients of CalWORKS and CalWORKs assistance units that do not include an eligible adult, end insert prohibit the county from assessing an overpayment for the month following a change in income if the recipient has reported the change and the county was unable, before the first of the month following the change in income, to provide begin delete 10-days’ end delete begin insert 10 days end insert begin insert ’ end insert notice of the termination or reduction in benefits. By increasing the administrative duties of counties, this bill would impose a state-mandated local program.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing the bill.

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:

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begin insert SECTION 1. end insert   

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begin insert Section 11265.3 of the end insert begin insert Welfare and Institutions
Code end insert begin insert is amended to read: end insert

11265.3.  

(a) In addition to submitting the semiannual report
form as required in Section 11265.1, the department shall establish
an income reporting threshold for recipients of CalWORKs.

(b) The CalWORKs income reporting threshold shall be the
lesser of the following:

(1) Fifty-five percent of the monthly income for a family of
three at the federal poverty level, plus the amount of income last
used to calculate the recipient’s monthly benefits.

(2) The amount likely to render the recipient ineligible for
CalWORKs benefits.

(3) The amount likely to render the recipient ineligible for
federal Supplemental Nutrition Assistance Program benefits.

(c) A recipient shall report to the county, orally or in writing,
within 10 days, when any of the following occurs:

(1) The monthly household income exceeds the threshold
established pursuant to this section.

(2) The household address has changed. The act of failing to
report an address change shall not, in and of itself, result in a
reduction in aid or termination of benefits.

(3) An incidence of an individual fleeing prosecution or custody
or confinement, or violating a condition of probation or parole, as
specified in Section 11486.5.

(d) At least once per semiannual reporting period, counties shall
inform each recipient of all of the following:

(1) The amount of the recipient’s income reporting threshold.

(2) The duty to report under this section.

(3) The consequences of failing to report.

(e) When a recipient reports income exceeding the reporting
threshold, the county shall redetermine eligibility and the grant
amount as follows:

(1) If the recipient reports the increase in income for the first
through fifth months of a current semiannual reporting period, the
county shall verify the report and determine the recipient’s financial
eligibility and grant amount.

(A) If the recipient is determined to be financially ineligible
based on the increase in income, the county shall discontinue the
recipient with timely and adequate notice, effective at the end of
the month in which the income was received.

(B) If it is determined that the recipient’s grant amount should
decrease based on the increase in income, the county shall reduce
the recipient’s grant amount for the remainder of the semiannual
reporting period with timely and adequate notice, effective the
first of the month following the month in which the income was
received.

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(C) If a recipient has reported a change in income in accordance
with subdivision (c), an overpayment shall not be assessed for the
following month if the county was unable to provide 10 days’ notice
of the termination or reduction in benefits before the first of the
month following the month in which the change occurred.

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(2) If the recipient reports an increase in income for the sixth
month of a current semiannual reporting period, the county shall
not redetermine eligibility for the current semiannual reporting
period, but shall consider this income in redetermining eligibility
and the grant amount for the following semiannual reporting period,
as provided in Sections 11265.1 and 11265.2.

(f) Counties shall act upon changes in income voluntarily
reported during the semiannual reporting period that result in an
increase in benefits, only after verification specified by the
department is received. Reported changes in income that increase
the grants shall be effective for the entire month in which the
change is reported. If the reported change in income results in an
increase in benefits, the county shall issue the increased benefit
amount within 10 days of receiving required verification.

(g) (1) When a decrease in gross monthly income is voluntarily
reported and verified, the county shall recalculate the grant for the
current month and any remaining months in the semiannual
reporting period pursuant to Sections 11265.1 and 11265.2 based
on the actual gross monthly income reported and verified from the
voluntary report for the current month and the gross monthly
income that is reasonably anticipated for any future months
remaining in the semiannual reporting period.

(2) When the anticipated income is determined pursuant to
paragraph (1), and a grant amount is calculated based upon the
new income, if the grant amount is higher than the grant currently
in effect, the county shall revise the grant for the current month
and any remaining months in the semiannual reporting period to
the higher amount and shall issue any increased benefit amount
as provided in subdivision (f).

(h) During the semiannual reporting period, a recipient may
report to the county, orally or in writing, any changes in income
and household circumstances that may increase the recipient’s
grant. Except as provided in subdivision (i), counties shall act only
upon changes in household composition voluntarily reported by
the recipients during the semiannual reporting period that result
in an increase in benefits, after verification specified by the
department is received. If the reported change in household
composition is for the first through fifth month of the semiannual
reporting period and results in an increase in benefits, the county
shall recalculate the grant effective for the month following the
month in which the change was reported. If the reported change
in household composition is for the sixth month of a semiannual
reporting period, the county shall not redetermine the grant for the
current semiannual reporting period, but shall redetermine the
grant for the following reporting period as provided in Sections
11265.1 and 11265.2.

(i) During the semiannual reporting period, a recipient may
request that the county discontinue the recipient’s entire assistance
unit or any individual member of the assistance unit who is no
longer in the home or is an optional member of the assistance unit.
If the recipient’s request is verbal, the county shall provide a 10-day
notice before discontinuing benefits. If the recipient’s request is
in writing, the county shall discontinue benefits effective the end
of the month in which the request is made, and simultaneously
issue a notice informing the recipient of the discontinuance.

(j) (1) This section shall become operative on April 1, 2013. A
county shall implement the semiannual reporting requirements in
accordance with the act that added this section no later than October
1, 2013.

(2) Upon 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.

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begin insert SEC. 2. end insert   

Section 11265.47 of the Welfare and Institutions Code
is amended to read:

11265.47.  

(a) The department shall establish an income
reporting threshold for CalWORKs assistance units described in
subdivision (a) of Section 11265.45.

(b) The income reporting threshold described in subdivision (a)
shall be the lesser of the following:

(1) Fifty-five percent of the monthly income for a family of
three at the federal poverty level, plus the amount of income last
used to calculate the recipient’s monthly benefits.

(2) The amount likely to render the recipient ineligible for
federal Supplemental Nutrition Assistance Program benefits.

(3) The amount likely to render the recipient ineligible for
CalWORKs benefits.

(c) A recipient described in subdivision (a) of Section 11265.45
shall report to the county, orally or in writing, within 10 days,
when any of the following occurs:

(1) The monthly household income exceeds the threshold
established pursuant to this section.

(2) Any change in household composition.

(3) The household address has changed.

(4) An incidence of an individual fleeing prosecution or custody
or confinement, or violating a condition or probation or parole, as
specified in Section 11486.5.

(d) When a recipient described in subdivision (a) of Section
11265.45 reports income or a household composition change
pursuant to subdivision (c), the county shall redetermine eligibility
and grant amounts as follows:

(1) If the recipient reports an increase in income or household
composition change for the first through 11th months of a year,
the county shall verify the report and determine the recipient’s
financial eligibility and grant amount.

(A) If the recipient is determined to be financially ineligible
based on the increase in income or household composition change,
the county shall discontinue the recipient with timely and adequate
notice, effective at the end of the month in which the change
occurred.

(B) If it is determined that the recipient’s grant amount should
decrease based on the increase in income, or increase or decrease
based on a change in household composition, the county shall
increase or reduce the recipient’s grant amount for the remainder
of the year with timely and adequate notice, effective the first of
the month following the month in which the change occurred.

(C) If a recipient has reported a change in income in accordance
with subdivision (c), an overpayment shall not be assessed for the
following month if the county was unable to provide 10-days’
notice of the termination or reduction in benefits before the first
of the month following the month in which the change occurred.

(2) If the recipient reports an increase in income for the 12th
month of a grant year, the county shall verify this report and
consider this income in redetermining eligibility and the grant
amount for the following year.

(e) During the year, a recipient described in subdivision (a) of
Section 11265.45 may report to the county, orally or in writing,
any changes in income that may increase the recipient’s grant.
Increases in the grant that result from reported changes in income
shall be effective for the entire month in which the change is
reported and any remaining months in the year. If the reported
change in income results in an increase in benefits, the county shall
issue the increased benefit amount within 10 days of receiving
required verification.

(f) During the year, a recipient described in subdivision (a) of
Section 11265.45 may request that the county discontinue the
recipient’s entire assistance unit or any individual member of the
assistance unit who is no longer in the home or is an optional
member of the assistance unit. If the recipient’s request is verbal,
the county shall provide a 10-day notice before discontinuing
benefits. If the recipient’s request is in writing, the county shall
discontinue benefits effective the end of the month in which the
request is made, and simultaneously shall issue a notice informing
the recipient of the discontinuance.

(g) This section shall become operative on the first day of the
first month following 90 days after the effective date of the act
that added this section, or October 1, 2012, whichever is later.

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No appropriation pursuant to Section 15200 of the
Welfare and Institutions Code shall be made for purposes of this
act.

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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.