BILL ANALYSIS Ó
SB 1232
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Date of Hearing: June 28, 2016
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Susan Bonilla, Chair
SB
1232 (Leno) - As Amended May 31, 2016
SENATE VOTE: 39-0
SUBJECT: CalWORKs and CalFresh: eligibility determinations
SUMMARY: Requires counties that use information contained in
consumer credit reports to determine eligibility or benefit
amounts for CalWORKs or CalFresh to provide certain information
to applicants and recipients, as specified, and prohibits
counties from requiring applicants or recipients to submit
hard-copy documentation that is duplicative of the information
verified using the credit report.
Specifically, this bill:
1)States Legislative intent to support an increase in CalFresh
benefits for low-income working families by simplifying and
adding transparency to the verification of wages and to
educate applicants for and recipients of aid about their
federal rights related to consumer credit reports, as
specified.
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2)Requires a county to do all of the following if that county's
human services agency uses information from consumer credit
reports to determine eligibility for, and benefit level of,
CalFresh or CalWORKs assistance:
a) Receive written authorization from an applicant or
recipient before obtaining the credit report;
b) Provide a recipient, in writing and in accordance with
federal law as specified, if the county determines that
recipient to be ineligible or have benefits or services
reduced for CalFresh or CalWORKs, with a federally required
notice, as specified, indicating that verification or
eligibility determination was based in whole or in part
upon the information contained in the consumer credit
report; and
c) Make the information available to an applicant or
recipient who requests a copy of his or her case file or
appeals a negative action based in whole or in part on
information the county obtained from the consumer credit
report.
3)Specifies that the written authorization and notice required
by this bill may be provided through electronic means.
4)Prohibits a county, if its county human services agency elects
to use information contained in a consumer credit report for
the determination of benefit level, from requiring the
applicant or recipient to submit hard-copy documentation that
is duplicative of the information verified using the credit
report.
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5)States that nothing in this bill shall preclude the use of
other forms of verification or prohibit the county from
requesting additional documentation when the county
establishes, in writing, that the information it has already
received is questionable.
EXISTING LAW:
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
U.S.C. 601 et seq., 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)Establishes a 48-month lifetime limit of CalWORKs benefits for
eligible adults, including 24 months during which a recipient
must meet federal work requirements in order to retain
eligibility. (WIC 11454, 11322.85)
4)Requires all individuals over 16 years of age, unless they are
otherwise exempt, to participate in welfare-to-work activities
as a condition of eligibility for CalWORKs. (WIC 11320.3,
11322.6)
5)Establishes the number of weekly hours of welfare-to-work
participation necessary to remain eligible for aid, including
requirements for an unemployed parent in a two-parent
assistance unit, as specified. (WIC 11322.8)
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6)Establishes in federal law the Supplemental Nutrition
Assistance Program (SNAP), formerly known as the Food Stamp
Program, to permit low-income households to obtain a more
nutritious diet by increasing food purchasing power for all
eligible households. (7 USC § 2011 et seq.)
7)Establishes, in state law, the CalFresh program to administer
the provision of federal SNAP benefits to low-income families
and individuals meeting specified criteria. (WIC 18900 et
seq.)
8)Describes, in federal law, the duties of users taking adverse
actions on the basis of information contained in consumer
reports. (15 U.S.C. § 1681m, 615)
FISCAL EFFECT: According to the Senate Appropriations Committee
May 27, 2016, analysis, this bill may result in the following
costs:
1)Notification requirements: Potential minor increase in
ongoing county eligibility worker costs (Local Funds/General
Fund/Federal Funds) for notification activities, as the
Department of Social Services recently issued an all-county
letter specifying county notification requirements relative to
this issue.
2)CalWORKs/CalFresh/CFAP benefits and administration: Potential
increase in CalWORKs and CalFresh benefits (Federal
Fund/General Fund/Local Funds) to the extent the mandated
authorization and notification requirements result in
increases in program enrollment and eligibility. While
prohibiting counties from requiring hard-copy documentation
that is duplicative of information it will verify using the
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credit report is intended to streamline the eligibility
process, to the extent a county must request other forms of
verification or documentation due to the prohibition could
alternatively delay the eligibility and enrollment process.
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
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 (DSS), 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.
CalFresh: CalFresh benefits are funded entirely by the federal
government through the Supplemental Nutrition Assistance Program
(SNAP), and the United States Department of Agriculture (USDA)
sets specific eligibility requirements for SNAP programs across
the United States, including a gross and net income test, work
requirements, and other documentation requirements. The maximum
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allowable gross income is typically 200% of the Federal Poverty
Level (FPL). Households with elderly or disabled members are
not subject to gross income criteria but must have a net monthly
income at or below 100% of the FPL. Other households must meet
both gross and net monthly income tests. CalFresh is
administered locally by county human services agencies, and the
federal, state, and county governments share in the cost of
administration of the program.
Benefits are made available on a monthly basis for food purchase
through an ATM-like electronic benefits transfer (EBT) card.
However, unlike other types of benefits that may be accessed
through an EBT card, CalFresh benefits cannot be withdrawn in
cash at point-of-sale terminals or at ATM machines. CalFresh
benefits can only be used to purchase food items to be prepared
and consumed at home, as well as seeds and plants that can be
grown at home and produce food. The average monthly benefit for
a CalFresh recipient is $144.35 per month, or $4.81 per person
per day.
Verification of income and employment using The Work Number:
County welfare departments must obtain certain employment and
income information from applicants for, and recipients of,
CalFresh and CalWORKs. In some cases, government-administered
databases and consumer reports can be used in this process,
while other situations can still warrant the submission of
hard-copy materials. In January of this year, DSS entered into
an agreement through September 2017 with Equifax/TALX
Corporation to provide an online employment and wage
verification service called The Work Number (WN) through the
department at no cost to participating counties. Counties can
elect, but are not required, to participate.
DSS reports that 30 counties are currently using WN, and another
9 are completing Memoranda of Understanding to participate.
Across the 30 counties currently participating, in the month of
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May, over 23,000 verifications were ordered.
Need for this bill: According to the author:
"This bill will facilitate eligibility and enrollment in the
CalFresh and CalWORKs Program for California's families by
streamlining the application process. According to the Public
Policy Institute of California, 78% of poor families in
California are working families. For these families, support
programs like CalFresh and CalWORKs can help prevent the
indignity of hunger in meeting basic needs. Low wage workers
face significant barriers to participation in the CalFresh
Program. Few have paid time off or reliable transportation to
get to the county welfare department for the application
process. [This bill] will prohibit county agencies that use
electronic databases to administer the CalFresh and CalWORKs
programs from requiring applicants to submit hard copy
documentation that is duplicative of information obtained from
the database. It also will require notice to recipients about
their federal right to receive free employment data reports
and to correct inaccurate information in employment and income
verification databases. It also will empower low-income
Californians to correct errors in their consumer reports."
Recommended amendments: In order to clarify that certain
provisions of this bill apply to applicants as well recipients
and to make clear that counties must provide specified required
information in the event of an adverse action only when the
determination behind that action was based in whole or part from
information contained in a credit report, committee staff
recommends the following amendments beginning on line 12 of page
2 of the bill:
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12
11023. (a)If a county human services agency elects to use
13
information contained in a consumer credit report for the
14
determination of CalFresh or CalWORKs eligibility or benefit
15
level, the county shall obtain written authorization from an
applicant or recipient prior to obtaining the credit report. do
all of the following:
16
(1)Obtain written authorization from an applicant or recipient
17
prior to obtaining the credit report.
18
(2) (b) Provide If the a county takes an adverse action
against an applicant or a
19
recipient, the determination of which was based in whole or
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part upon information contained in the consumer credit report,
the county shall do all of the following:
(1) p P rovide the applicant or applicant or recipient with the
notice required
P3
1
by Section 615 of the federal Fair Credit Reporting Act (15
U.S.C.
2
Sec. 1681m), indicating that the verification or eligibility
3
determination was based, in whole or in part, upon the
information
4
contained in the consumer credit report. For purposes of this
5
paragraph, subdivision, an "adverse action" means a
determination of
6
ineligibility for CalFresh or CalWORKs or a reduction in
benefits
7
or services.
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8
(3) (2) Issue the notice required by paragraph (2) (1) in
writing and in
9
accordance with the standards for adequate notice established in
10
federal law.
11
(4)Issue the notice required by paragraph (2) before taking
any
12
adverse action, including a denial of CalFresh eligibility or
13
CalWORKs benefits or services, against the applicant or
recipient.
14
(5)
15
(4) (3) Make the information available to an applicant or
recipient
16
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who requests a copy of his or her case file or appeals a
negative
17
action based in whole or in part on information the county
obtained
18
from the consumer credit report.
19
(b) (c) The written authorization and notice required by this
section
20
may be provided by electronic means.
21
(c) (d) If the county human services agency elects to use
information
22
contained in a consumer credit report for the determination of
23
benefit level, the county shall not require the applicant or
recipient
24
to submit hard-copy documentation that is duplicative of the
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25
information it will verify using the credit report.
26
(d) (e) Nothing in this section precludes the use of other
forms of
27
verification or prohibits the county from requesting additional
28
documentation when the county establishes, in writing, that the
29
information it has already received is questionable.
REGISTERED SUPPORT / OPPOSITION:
Support
Western Center on Law and Poverty -sponsor
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California Association of Food Banks
California Catholic Conference
Children's Defense Fund
Community Action Partnership of Orange County
St. Anthony Foundation
Food Bank of Contra Costa and Solano
United Ways of California
Opposition
None on file.
Analysis Prepared by:Daphne Hunt / HUM. S. / (916)
319-2089