Amended in Assembly June 30, 2016

Amended in Senate May 31, 2016

Amended in Senate April 19, 2016

Amended in Senate March 28, 2016

Senate BillNo. 1232


Introduced by Senator Leno

February 18, 2016


An act to add Section 11023 to the Welfare and Institutions Code, relating to public social services.

LEGISLATIVE COUNSEL’S DIGEST

SB 1232, as amended, Leno. CalWORKs and CalFresh: eligibility determinations.

Existing federal law provides for the 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.

Existing federal law provides for the federal Supplemental Nutrition Assistance Program, under which nutrition assistance benefits are allocated to each state by the federal government. Under existing state law, the CalFresh program, California’s federal allocation is distributed to eligible individuals by each county. Existing law requires that the eligibility of households be determined to the extent permitted by federal law, and requires the State Department of Social Services to establish a program of categorical eligibility for CalFresh in accordance with federal law. Existing law requires each county human services agency to carry out the local administrative responsibilities of this program, subject to the supervision of the department and to rules and regulations adopted by the department.

This bill would require a county human services agency that elects to use information contained in a consumer credit report for the determination of CalWORKs or CalFresh eligibility or benefit level to obtain written authorization from the applicant or recipient prior to obtaining the credit report and, if the county takes an adverse action against a recipient, to provide the recipient of benefits with a specified notice indicating that the verification or eligibility determination was based, in whole or in part, upon the information contained in the consumer credit report. The bill would also prohibit the county from requiring the applicant or recipient to submit hard-copy documentation that is duplicative of the information it will verify using the credit report.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

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SECTION 1.  

It is the intent of the Legislature to support an
2increase in CalFresh benefits for low-income working families by
3simplifying and adding transparency to the verification of wages.
4It is also the intent of the Legislature to educate applicants and
5recipients of aid of their federal rights to receive a free report and
6to correct errors in a report issued by federally regulated consumer
7reporting agencies when the services of those agencies are used
8by the state or county to determine CalFresh or CalWORKs
9eligibility or benefit level.

10

SEC. 2.  

Section 11023 is added to the Welfare and Institutions
11Code
, to read:

12

11023.  

(a) If a county human services agency elects to use
13information contained in a consumer credit report for the
14determination of CalFresh or CalWORKs eligibility or benefit
15level, the county shallbegin delete do all of the following:end delete

16begin delete(1)end deletebegin deleteend deletebegin deleteObtainend deletebegin insert obtainend insert written authorization from an applicant or
17recipient prior to obtaining the credit report.

begin delete

18(2) If the county takes an adverse action against a recipient,
19provide the

end delete
begin insert

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(b) If a county takes an adverse action against an applicant or
2recipient, the determination of which was based, in whole or in
3part, upon information contained in the consumer credit report,
4the county shall do all of the following:

end insert

5begin insert (1)end insertbegin insertend insertbegin insertProvide the applicant orend insert recipient with the notice required
6by Section 615 of the federal Fair Credit Reporting Act (15 U.S.C.
7Sec. 1681m), indicating that the verification or eligibility
8 determination was based, in whole or in part, upon the information
9contained in the consumer credit report.begin delete For purposes of this
10paragraph, an “adverse action” means a determination of
11ineligibility for CalFresh or CalWORKs or a reduction in benefits
12or services.end delete

begin delete

13(3)

end delete

14begin insert(2)end insert Issue the notice required by paragraphbegin delete (2)end deletebegin insert (1)end insert in writing and
15in accordance with the standards for adequate notice established
16in federal law.

begin delete

17(4)

end delete

18begin insert(3)end insert Make the information available to an applicant or recipient
19who requests a copy of his or her case file or appeals a negative
20action based in whole or in part on information the county obtained
21from the consumer credit report.

begin insert

22
(c) For purposes of this section, an “adverse action” means a
23determination of ineligibility for CalFresh or CalWORKs or a
24reduction in benefits or services.

end insert
begin delete

25(b)

end delete

26begin insert(d)end insert The written authorization and notice required by this section
27may be provided by electronic means.

begin delete

28(c)

end delete

29begin insert(e)end insert If the county human services agency elects to use information
30contained in a consumer credit report for the determination of
31benefit level, the county shall not require the applicant or recipient
32to submit hard-copy documentation that is duplicative of the
33information it will verify using the credit report.

begin delete

34(d)

end delete

35begin insert(f)end insert Nothing in this section precludes the use of other forms of
36verification or prohibits the county from requesting additional
37documentation when the county establishes, in writing, that the
38information it has already received is questionable.



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