BILL ANALYSIS Ó
AB 2062
Page 1
Date of Hearing: April 12, 2016
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Susan Bonilla, Chair
AB 2062
(Lopez) - As Amended April 4, 2016
SUBJECT: CalWORKs: income reporting: benefit redetermination
SUMMARY: Prohibits the assessment of a California Work
Opportunity and Responsibility to Kids (CalWORKs) overpayment in
the month immediately following a reported change if 10-days'
notice of change in benefits has not been provided prior to the
beginning of that month.
Specifically, this bill:
1)Prohibits, for a CalWORKs recipient who is found to be no
longer eligible for CalWORKs or to be eligible for a lower
grant amount due to a reported change in income or, where
applicable, household composition, the assessment of an
overpayment in the month following that reported change if the
county was unable to provide 10-days' notice of termination or
reduction in benefits before the first of the following month.
2)Provides that no appropriation, as specified, shall be made
for purposes of implementing this bill.
AB 2062
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EXISTING LAW:
1) 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.)
2)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 around 40% of the Federal
Poverty Level. (WIC 11150 to 11160, 11450 et seq.)
3)Provides the formula for determining CalWORKs income
thresholds and establishes income-reporting requirements for
recipients. (WIC 11265.3 and 11265.47)
FISCAL EFFECT: Unknown.
COMMENTS:
CalWORKs: The 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 TANF block grant.
The average 2016-17 monthly cash grant for a family of three on
CalWORKs (one parent and two children) is $497.35, and the
maximum monthly grant amount for a family of three, if the
family has no other income and lives in a high-cost county, is
AB 2062
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$704. According to recent data from the California Department
of Social Services, around 497,000 families rely on CalWORKs,
including over one million children. Nearly 60% of cases
include children under 6 years old.
Maximum grant amounts in high-cost counties of $704 per month
for a family of three, with no other income, means $23.46 per
day, per family, or $7.82 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 $8,448 per year, or
42% of poverty. Federal Poverty Guidelines for 2016 show that
100% of poverty for a family of three is $20,160 per year.
CalWORKs Income Reporting Threshold: Typically, any changes in a
CalWORKs recipient's income are only reported during a
semi-annual or annual (for Child Only cases) report. However,
if a recipient's income surpasses the Income Reporting Threshold
(IRT), then a mid-period report is mandatory. When a
recipient's income exceeds the IRT, he or she must report this
change to the county within 10 days. If the IRT is exceeded
towards the end of the month, an overpayment in the following
month can result, which the recipient will need to repay.
Need for this bill: According to the author, "CalWORKs is
designed to ensure that families can find employment and are
capable of supporting their family. With much difficulty,
working parents have many expenses pertinent to work that need
attention, such as, child care and transportation. Receiving a
letter from the county informing the family that an overpayment
was acquired due to their change in income should be one less
stress they need to endure. In cases like this, the county was
unable to provide the sufficient 10-day notice of this
modification in benefits. This bill would streamline the
process and align the procedures welfare case workers currently
follow for CalFresh recipients when it comes to overpayment and
make it applicable to the CalWORKs program."
AB 2062
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Suggested amendments: Because a change in household composition
can trigger changes in eligibility or grant amounts for Child
Only cases, committee staff recommends the following amendment
to line 24 of page 6:
24
(C)If a recipient has reported a change in income or household
composition in accordance
25
with subdivision (c), an overpayment shall not be assessed for
the
26
following month if the county was unable to provide 10-days
27
notice of the termination or reduction in benefits before the
first
28
of the month following the month in which the change occurred.
REGISTERED SUPPORT / OPPOSITION:
AB 2062
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Support
Area Community Services (BACS)
California Food Policy Advocates
Coalition of California Welfare Rights Organizations, Inc. -
sponsor
Courage Campaign
Law Foundation of Silicon Valley
Placer People of Faith Together
San Francisco City, Supervisor Katy Tang
Western Center on Law and Poverty
AB 2062
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Opposition
None on file.
Analysis Prepared by:Daphne Hunt / HUM. S. / (916) 319-2089