BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 2062 ----------------------------------------------------------------- |Author: |Lopez | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |April 20, 2016 |Hearing |June 14, 2016 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Taryn Smith | |: | | ----------------------------------------------------------------- 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) AB 2062 (Lopez) Page 2 of ? 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 AB 2062 (Lopez) Page 3 of ? 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. AB 2062 (Lopez) Page 4 of ? 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, AB 2062 (Lopez) Page 5 of ? 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 ----------------------------------------------------------------- |Assembly Floor: |67 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Appropriations Committee: |20 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: |7 - | | |0 | | | | | | | | | | | | | | | | ----------------------------------------------------------------- POSITIONS Support: Coalition of California Welfare Rights Organizations, Inc. AB 2062 (Lopez) Page 6 of ? (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 -- END --