Amended in Senate April 6, 2015

Senate Bill No. 659

Introduced by Senators Bates, Gaines, Huff, Nguyen, Nielsen, and Vidak

(Principal coauthor: Senator Stone)

(Coauthors: Senators Berryhill, Cannella, Fuller, and Morrell)

February 27, 2015

An act to add and repeal Article 3.7 (commencing with Section 11337) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to public social services, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

SB 659, as amended, Bates. Opportunity Grant Pilot Project.

Existing federal law provides for begin insert the end insert allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families.

This bill would require the State Department of Social Services, no later than July 1, 2016, to design and implement a 5-year pilot project under which monetary grants are provided to organizations operating programs that assist individuals receiving CalWORKs benefits achieve economic independence. The bill would require the begin delete department, end delete begin insert department, in developing the pilot project, end insert among other things, to develop a competitive review process for all grant proposals submitted, and to develop an ongoing evaluation of the effectiveness of an organization receiving grant funding in teaching its program participants the skills necessary to achieve economic independence. The bill would authorize the department to enter into an agreement with an academic institution or other entity with sufficient expertise for the purpose of creating, performing, or both creating and performing the evaluation. The bill would authorize an organization receiving a grant to utilize the funds in any reasonable manner, as long as the begin delete they end delete begin insert funds end insert are expended in furtherance of begin delete the program elements end delete begin insert the organization’s program end insert or other requirements established by the department. The bill would require the department, or the academic institution or other entity the department contracted with, to send a report evaluating the effectiveness of the programs funded by the grants to the relevant policy and fiscal committees of the Legislature by December 31, 2020. The bill would appropriate begin delete an unspecified sum end delete begin insert $50,000,000 end insert from the General Fund for the purpose of funding these provisions. The bill would make these provisions inoperative on July 1, 2021, and would repeal them on January 1, 2022.

Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) California is expected to spend $142 billion on health and
human services programs this year, which is by far the largest state
budget expenditure, while total education spending for
kindergarten, grades 1 to 12, inclusive, and higher education
programs is only $80 billion per year.

(b) California has the fifth largest Temporary Assistance for
Needy Families (TANF) cash grant in the nation, and second
largest amongst the 10 largest states, yet poverty remains a
persistent problem.

(c) We must recognize that California’s problems of poverty
and inequality do not stem from a lack of safety net programs.

(d) California’s social safety net needs to invest in programs
that elevate people out of poverty rather than helping people live
better in poverty.

SEC. 2.  

Article 3.7 (commencing with Section 11337) is added
to Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

 

Article 3.7.  Opportunity Grant Pilot Project

 

11337.  

(a) The State Department of Social Services shall, no
later than July 1, 2016, design and implement a five-year pilot
project under which monetary grants are provided to organizations
operating programs that assist individuals receiving CalWORKs
benefits achieve economic independence.

(b) In developing the pilot project described in subdivision (a),
the department shall, at a minimum, do all of the following:

(1) Develop a competitive review process for all grant proposals
submitted and a methodology to determine grant amounts.

(2) Develop eligibility requirements for organizations seeking
a grant. The eligibility requirements shall, at a minimum, require
an begin delete organization end delete begin insert organization’s end insert program to include all of the
elements specified in subdivision (d).

(3) Develop an ongoing evaluation, utilizing objective criteria,
of the effectiveness of an organization receiving grant funding in
teaching its program participants the skills necessary to achieve
economic independence. The evaluation criteria shall, at a
minimum, include an examination begin delete of: end delete begin insert of all of the following: end insert

(A) The number and percentage of participants that complete
the program.

(B) The number and percentage of program participants that
begin the program with a high school diploma or equivalent.

(C) The number and percentage of program participants that
achieve a high school diploma or equivalent while in the program.

(D) The number of program participants that obtain
nonsubsidized employment of at least 20 hours per week by the
time of program completion, with regular begin delete checks end delete begin insert followup end insert to
determine if this minimum level of nonsubsidized employment is
maintained for the duration of the ongoing evaluation required by
this paragraph.

(E) The attainment of academic stability for the children of
program participants. The department shall develop a definition
of academic stability for purposes of this section.

(F) The number and percentage of program participants still
receiving CalWORKs benefits upon completion of the program.

(G) The average income of program participants at the time of
program completion.

(c) The department may enter into an agreement with an
academic institution or other entity with sufficient expertise for
the purpose of creating, performing, or both creating and
performing the evaluation required by paragraph (3) of subdivision
(b). The department and any academic institution or other entity
the department contracts with to create, perform, or both create
and perform the evaluation shall seek input from stakeholders
during the development process.

(d) In order to be considered for a grant, an organization shall,
at a minimum, include all of the following elements in its program:

(1) Education focused on the attainment of a high school
diploma or its equivalent.

(2) Mental health services.

(3) Employment training.

(4) Financial training.

(5) Parenting skills training.

(6) Life skills training.

(7) Child care services.

(8) A clean and sober environment. A program may utilize
random drug testing in order to ensure a clean and sober
environment.

(9) Comprehensive, targeted case management to assist program
participants.

(10) Ongoing monitoring of program participants for at least
five years after they have completed the program for purposes of
measuring long term program effectiveness.

(e) An organization receiving a grant may utilize the grant funds
in any reasonable manner, as long as the funds are expended in
furtherance of the program elements or other requirements the
department establishes. Housing, transportation, and child care
expenses for program participants shall be considered an allowable
use of grant funds.

(f) (1) The benefits an individual may receive through
participation in a program receiving grant funding are in addition
to any other public assistance benefits for which the individual
may be eligible.

(2) Organizations receiving grant funding may set their own
eligibility criteria for their programs as long as begin delete they end delete begin insert the eligibility
criteria end insert are consistent with the goals of this pilot project.

(g) Participation in a program administered by an organization
receiving grant funding pursuant to this section is voluntary.

(h) (1) No later than December 31, 2020, the department, or
the academic institution or other entity the department contracted
with pursuant to subdivision (c), shall send a report evaluating the
effectiveness of the programs funded by the grants to the relevant
policy and fiscal committees of the Legislature. The report shall
also be posted on the department’s Internet Web site.

(2) The report required by paragraph (1) shall not reveal the
identity of any program participant, nor shall it contain any
personally identifiable information.

(3) The report required by paragraph (1) shall be submitted in
compliance with Section 9795 of the Government Code.

11338.  

This article shall become inoperative on July 1, 2021,
and, as of January 1, 2022, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2022,
deletes or extends the dates on which it becomes inoperative and
is repealed.

SEC. 3.  

The sum of begin delete ____ dollars ($____) end delete begin insert fifty million dollars
($50,000,000) end insert is hereby appropriated from the General Fund to
the State Department of Social Services for purposes of funding
the pilot program developed pursuant to Article 3.7 (commencing
with Section 11337) of Chapter 2 of Part 3 of Division 9 of the
Welfare and Institutions Code.