BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 2062
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          |Author:   |Lopez                                                 |
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          |Version:  |April 20, 2016         |Hearing    |June 14, 2016    |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Taryn Smith                                           |
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          Subject:  CalWORKs:  income or household composition reporting:   
                               benefit redetermination


            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 if the  
          CalWORKs recipient has not been provided a 10-day notice of the  
          change in benefits prior to the beginning of that month. 

            ABSTRACT
          
          Existing law:

             1)   Establishes the federal Temporary Assistance for Needy  
               Families (TANF) program, which permits states to implement  
               the program under a state plan. (42 USC § 601 et seq.)





             2)   Establishes in state law the CalWORKs program to provide  
               cash assistance and other social services for low-income  
               families through the federal TANF program. Under CalWORKs,  
               each county provides assistance through a combination of  
               state, county and federal TANF funds. (WIC 10530)








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             3)   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.)



             4)   Requires counties to redetermine CalWORKs eligibility  
               annually, and permits counties to redetermine eligibility  
               at other intervals as may be deemed necessary. Requires  
               CalWORKs recipients to complete a certificate of  
               eligibility that contains a written declaration of the  
               information submitted, as specified. (WIC 11265)



             5)   Establishes the criteria for income reporting threshold  
               for CalWORKs recipients and requires CalWORKs recipients to  
               report to the county, orally or in writing, within 10 days,  
               when the monthly household income exceeds the threshold,  
               the address has changed, or if an individual is fleeing law  
               enforcement or in violation of parole or probation, as  
               specified. (WIC 11265.3)



             6)   Exempts a CalWORKs assistance unit that does not include  
               an eligible adult from periodic reporting requirements  
               other than the required annual redetermination. (WIC  
               11265.45)



             7)   Establishes the criteria for the income reporting  
               threshold for CalWORKs assistance units that do not include  
               an eligible adult.  Also requires CalWORKs recipients  
               within assistance units that do not include an eligible  
               adult to report to the county, orally or in writing, within  
               10 days, when the monthly household income exceeds the  
               threshold, any change in household composition, the  
               household address has changed, or if an individual is  








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               fleeing law enforcement or in violation of parole or  
               probation, as specified. Establishes an income reporting  
               threshold for CalWORKs assistance units that do not include  
               an eligible adult. (WIC 11265.47)


          This bill:

             1)   Prohibits the assessment of an overpayment to a CalWORKs  
               recipient who is found to be no longer eligible for  
               CalWORKs or to be eligible for a reduced grant amount due  
               to a reported change in income or household composition 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 shall be made for  
               purposes of implementing the bill, as specified. 
          
            
          FISCAL IMPACT
          
          According to an analysis prepared by the Assembly Appropriations  
          Committee, it would cost less than $100,000 in General Fund to  
          absorb any overpayments.  

            
          BACKGROUND AND DISCUSSION
          
          Purpose of the bill:

          According to the author, the main goal of CalWORKs is to help  
          members of a family find employment and be able to support their  
          family.  The purpose of services like this is to create an  
          environment where recipients are allowed the opportunity to  
          become self-sufficient and should not be penalized for improving  
          their current conditions.  The author states, as recipients move  
          through the CalWORKs program they can experience changes in  
          income, which trigger the county to either terminate or reduce  
          benefits. However, in some cases recipients' benefits are  
          reduced or terminated without 10 days' notice from the county,  
          resulting in an overpayment of benefits. This burden of paying  
          back without sufficient time can lead to unnecessary economic  
          stress to the family, according to the author. 








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          This bill would state that a recipient shall not be charged an  
          overpayment or experience a reduction in benefits for the  
          following month if the county was unable to provide 10 days'  
          notice of termination or reduction of benefits before the first  
          of the following month. However, in the following months  
          thereafter the recipient will either have benefits terminated or  
          reduced accordingly to their Income Reporting Threshold level.   
          While exact data is not available, the counties and CDSS have  
          both indicated that the number of cases that result in  
          overpayment due to end of month notification that recipients  
          have exceeded their IRT is very low.  

          CalWORKs
          
          According to California Public Policy Institute, 21% of  
          Californians were living in poverty and 23.9% of California's  
          children were living in poverty in 2013. During and after the  
          Great Recession, California saw growing rates of childhood deep  
          poverty - those living below 50 percent of the federal poverty  
          line. One of California's most essential anti-poverty strategies  
          is the CalWORKs program, which provides cash assistance to  
          approximately 540,000 families - including more than 1 million  
          children, according to 2014 federal data. 

          CalWORKs implements the federal TANF program in California.  In  
          addition to temporary cash assistance to meet basic family  
          needs, CalWORKs provides education, employment and training  
          programs.  CDSS is the designated state agency responsible for  
          program supervision at the state level.  The counties are  
          responsible for administering the caseloads at the local level.   
          The CalWORKs program is funded with a mix of federal, state, and  
          county funds. 

          State law provides for a cumulative 48-month lifetime limit on  
          cash aid for adults.  During those 48 months, adults may receive  
          a total of 24 months of Welfare-to-Work (WTW) services and  
          activities.  WTW activities include subsidized and unsubsidized  
          employment, community service, adult basic education, job  
          skills, training, mental health counseling, substance abuse  
          treatment and other activities necessary to assist recipients in  
          obtaining employment. Once the 24 months of WTW activities have  
          been exhausted, adults must meet the stricter federal work  
          participation requirements (20, 30, or 35 hours weekly,  








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          depending on family composition) as specified. Children of  
          adults who exhaust the 48-month lifetime limit may continue to  
          receive cash aid, if otherwise eligible, up to age 18.  

          Typically, changes in a CalWORKs recipient's income are only  
          reported during the semi-annual or annual (for child only cases)  
          report.  However, if a recipient's income surpasses the  
          established income reporting threshold, the recipient must  
          report the new income amount to the county within 10 days.  
          Overpayments are sometimes issued when the recipient notifies  
          the county that the income reporting threshold was exceeded  
          towards the end of the month.  When this occurs, the recipient  
          is required to repay the overpayment. 

          Related legislation:

          SB 79 (Committee on Budget and Fiscal Review, Chapter 20,  
          Statutes of 2015) removed outdated requirement that drug felony  
          convictions must be reported to the county within 10 days.  


            PRIOR VOTES
          
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          |Assembly Floor:                                            |67 - |
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          |Assembly Appropriations Committee:                         |20 - |
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          |Assembly Human Services Committee:                         |7 -  |
          |                                                           |0    |
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            POSITIONS
                                          
          Support:

               Coalition of California Welfare Rights Organizations, Inc.  








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          (Sponsor)                                                   
               Bay Area Community Services
               California Food Policy Advocates
               Courage Campaign
               Placer People of Faith Together 
               The Law Foundation of Silicon Valley
               Western Center on Law and Poverty

          Oppose:   
                      None

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