BILL ANALYSIS Ó
AB 2062
Page 1
Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2062 (Lopez) - As Amended April 20, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill prohibits the assessment of a California Work
Opportunity and Responsibility to Kids (CalWORKs) overpayment in
the month immediately following a reported change in income or
AB 2062
Page 2
household composition, if 10-days' notice of change in benefits
has not been provided prior to the beginning of that month.
FISCAL EFFECT:
1)Minor costs to the General Fund, likely less than $100,000, to
absorb any overpayments. The dollar adjustment and the number
of impacted cases are small.
2)Unknown, but likely minor costs to DSS for automation changes.
3)Unknown, but likely minor costs to counties for process
adjustments. These costs are potentially reimbursable should a
county choose to submit a claim with the Commission on State
Mandates and the Commission determines that the cost is
reimbursable. Staff notes that the continuous appropriation
normally made under existing law to defray a portion of these
costs is prohibited under this bill.
COMMENTS:
1)Purpose. 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
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overpayment, and make it applicable to the CalWORKs program."
2)Background. 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 must repay.
The California Department of Social Services, reports that
just under 500,000 families rely on CalWORKs, including over
one million children. Nearly 60% of cases include children
under 6 years old.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081