BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2062


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2062 (Lopez)


          As Amended  August 17, 2016


          Majority vote


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          |ASSEMBLY:  |67-0  |(May 27, 2016) |SENATE: |39-0  |(August 22,      |
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          Original Committee Reference:  HUM. S.


          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.


          The Senate amendments direct the Department of Social Services  
          (DSS) to implement the provisions of this bill through an  
          all-county letter or similar instruction by July 1, 2017, as  
          specified, and further, require DSS to adopt regulations  
          necessary to implement the provisions of this bill by July 1,  
          2018.


          EXISTING LAW:  










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          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  
            United States Code Section (U.S.C.) 601 et seq., Welfare and  
            Institutions Code Section (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:  According to the Senate Appropriations Committee  
          on August 1, 2016, this bill may result in the following:


          1)Ongoing costs, likely less than $100,000 each year, to absorb  
            any overpayments. (General Fund)


          2)Unknown, but likely minor costs to DSS for automation changes.  
            (General Fund)


          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  








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          maximum monthly grant amount for a family of three, if the  
          family has no other income and lives in a high-cost county, is  
          $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  








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          make it applicable to the CalWORKs program."


          Analysis Prepared by:                                             
                          Daphne Hunt / HUM. S. / (916) 319-2089  FN:  
          0004566