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 |
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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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