BILL NUMBER: AB 1542	AMENDED
	BILL TEXT

	AMENDED IN SENATE   AUGUST 4, 1997
	AMENDED IN SENATE   JULY 22, 1997
	AMENDED IN ASSEMBLY   MAY 8, 1997

INTRODUCED BY   The Committee on Human Services (Aroner
(Chair), Ashburn (Vice Chair), Bordonaro, Gallegos, Goldsmith, Kuehl,
Ortiz, and Wright)   Assembly Members Ducheny and
Ashburn   and Senators Thompson and Maddy 

                        MARCH 4, 1997

    An act to amend Section 1550.5 of the Health and Safety
Code, and to amend Section 11462.06 of the Welfare and Institutions
Code, relating to community care facilities.   An act to
amend Sections 8208, 8263, and 8286 of, to add Sections 8208.1,
8216, 8225, 8263.1, 8277.5, 8277.6, 8481, 72620.5, and 84759 to, to
add Article 5 (commencing with Section 79200) to Chapter 9 of Part 48
of, to add Chapter 2.3 (commencing with Section 8499) to Part 6 of,
to add Chapter 2 (commencing with Section 10200) to Part 7 of, to
repeal Chapter 2.5 (commencing with Section 8499) of Part 6 of, and
to repeal and add Article 15.5 (commencing with Section 8350) of
Chapter 2 of Part 6 of, the Education Code, to add Chapter 1.12
(commencing with Section 15365.50) to Part 6.7 of Division 3 of Title
2 of the Government Code, to add Section 1597.36 to, and to add
Chapter 17 (commencing with Section 50897) to Part 2 of Division 31
of, the Health and Safety Code, to add Section 99155.1 to the Public
Utilities Code, to add Sections 10214.7, 15003.4, and 15003.5 to, to
add Chapter 6 (commencing with Section 11010) to Part 1 of Division 3
of, to add Division 9 (commencing with Section 17000) to, and to
repeal and add Section 1611.5 of, the Unemployment Insurance Code, to
amend Sections 11004, 11008.13, 11008.14, 11155, 11155.2, 11157,
11200, 11201, 11250.4, 11320.3, 11322.2, 11323.2, 11323.4, 11324,
11324.4, 11324.5, 11324.6, 11324.7, 11324.8, 11325.2, 11325.21,
11325.22, 11325.25, 11325.4, 11325.6, 11326, 11327.4, 11327.5,
11327.6, 11327.8, 11329.2, 11331.5, 11450, 11450.018, 11450.5, 11453,
11477, and 14132.90 of, to amend the heading of Article 3.2
(commencing with Section 11320) of Chapter 2 of Part 3 of Division 9
of, to amend the heading of Chapter 2 (commencing with Section 11200)
of Part 3 of Division 9 of, to add Sections 10063, 10553.2, 10619,
11155.3, 11157.5, 11160, 11253.5, 11265.2, 11265.8, 11266.5, 11320.1,
11320.15, 11320.31, 11322.61, 11322.62, 11322.65, 11322.7, 11322.9,
11325.1, 11325.5, 11325.7, 11325.8, 11327.9, 11450.12, 11450.13,
11451.5, 11454, 11454.5, 11454.6, 11475.3, 11475.4, 11477.02,
11477.04, 11486.5, 14005.30, 15204.3, 15204.4, 15204.8, 17016, and
17021 to, to add Article 7.5 (commencing with Section 11495), Article
9 (commencing with Section 11520), Article 9.5 (commencing with
Section 11525), and Article 9.7 (commencing with Section 11526) to
Chapter 2 of Part 3 of, to add Chapter 3 (commencing with Section
10065) to Part 1 of, to add Chapters 1.3 (commencing with Section
10530) and 1.5 (commencing with Section 10540) to Part 2 of, to add
Chapter 3.2 (commencing with Section 18220) and Chapter 3.3
(commencing with Section 18230) to Part 6 of, to add and repeal
Section 11255.3 of, to repeal Sections 11018, 11201.5, 11255,
11320.2, 11320.4, 11320.6, 11320.8, 11321, 11321.2, 11321.4, 11321.8,
11322, 11322.41, 11323, 11323.1, 11324.2, 11325, 11327.2, 11328,
11328.1, 11328.4, 11328.6, 11329.5, 11329.7, 11450.1, 11450.6,
11451.6, 11451.7, 15204.6, and 15204.7 of, to repeal Chapter 3.8
(commencing with Section 10780) of Part 2 of Division 9 of, to repeal
and add Sections 11008.135, 11320, 11322.4, 11322.6, 11322.8,
11323.6, 11323.8, 11325.23, 11453.2, 11486, 15204.2, 16575, 16576,
16576.5, and 16577 of, and to repeal and add Article 8 (commencing
with Section 11500) of Chapter 2 of Part 3 of Division 9 of, the
Welfare and Institutions Code, relating to human services, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1542, as amended,  Committee on Human Services
  Ducheny  .   Community care facilities:
foster care   Welfare reform  . 
   Existing law provides for the Aid to Families with Dependent
Children (AFDC) program, under which each county provides cash
assistance and other benefits to qualified low-income families.  The
AFDC program is funded, in part, by the federal Temporary Assistance
for Needy Families (TANF) program, subject to federal requirements.
Each county is required to pay a share of the cost of both aid grant
and administrative costs for the AFDC program.
   This bill would rename that program the California Work
Opportunity and Responsibility to Kids (CalWORKs) program and would
recast provisions relating to the funding and administration of that
program and other social services programs.  This bill would impose
work participation requirements and time limits upon the receipt of
aid.
   This bill would provide that a community college shall provide
various educational services to CalWORKs recipients.  Because the
bill would impose additional responsibilities upon community college
districts, the bill would impose a state-mandated local program.
   This bill would require the establishment of job creation and
development programs for CalWORKs recipients and other low-income
individuals.
   This bill would also permit counties to implement various types of
CalWORKs demonstration projects.
   Existing law, the Child Care and Development Services Act,
provides for the operation of child care and development programs.
Existing law also contains provisions for child care for AFDC
recipients.  This bill would revise funding allocations and
eligibility requirements for the provision of child care services and
provisions regarding the administration of those services.
   By imposing additional duties on counties and school districts,
this bill would impose a state-mandated local program.
   Existing law establishes eligibility requirements for benefits
under the AFDC program, including limitations on the amount of income
and resources that may be available to an eligible applicant or
recipient.
   This bill would revise eligibility requirements and apply them to
the CalWORKs program.
   By revising eligibility standards for receipt of benefits for this
continuously appropriated funded program, this bill would result in
an increase in appropriated funds, thereby making an appropriation.
By increasing amounts of income and resources that will not be
considered in determining CalWORKs recipient eligibility, the bill
would increase the class of persons eligible for the CalWORKs
program, and so would impose a state-mandated local program.  This
bill would also revise cost-of-living adjustments under that program.

   Existing law provides for the reduction of aid payments under the
AFDC program in the case of prior overpayments.
   This bill would revise the method of calculating the reduction of
those aid payments, thereby resulting in the increase of funds
continuously appropriated for the CalWORKs program, resulting in an
appropriation.
   Existing law provides for procedures for the collection and
distribution of child support owed or paid to custodial parents who
are recipients of benefits under the AFDC program.
   This bill would make revisions in these procedures.
   This bill would also impose a state-mandated local program by
requiring each county to provide diversion services, as described, as
an alternative to CalWORKs benefits under certain circumstances.
   Existing law, the Greater Avenues for Independence (GAIN) program,
requires the provision of various employment training services to
AFDC recipients.
   This bill would recast these provisions to refer to
welfare-to-work activities and would revise service and participation
requirements.  By imposing additional duties on counties in the
provision of these services, this bill would result in a
state-mandated local program.
   Existing law provides for the federal Food Stamp Program, under
which each county distributes food stamps provided by the federal
government to eligible households.
   This bill would establish the Electronic Benefits Transfer
Committee to oversee the development and implementation of a
statewide electronic benefits transfer system, which would apply to
food stamps and other benefits, and would require counties to
contract for the provision of certain benefits through the system.
   Existing law provides for employers to pay contributions into the
Employment Training Fund at a specified rate, and generally requires
money in the fund to be allocated by the Employment Training Panel
only for specified job training purposes.
   This bill would provide for allocation, by the panel, of
$20,000,000 from the Employment Training Fund each year for training
programs designed for workers who are current or recent recipients of
benefits under the CalWORKs program and for other related purposes,
subject to appropriation by the Legislature.
   Existing law requires each county to provide aid and health care
to its poor and indigent residents not supported by other means.
These programs are commonly referred to as county general assistance
programs.
   This bill would impose certain restrictions upon eligibility for
county general assistance programs.
   Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Services, pursuant to
which medical benefits are provided to public assistance recipients,
including AFDC recipients, and certain other low-income persons.
   This bill would specify that CalWORKS recipients and individuals
who are ineligible for aid under the CalWORKs program but who meet
the eligibility criteria for aid under the AFDC program in effect on
July 16, 1996, shall be eligible for Medi-Cal benefits.  Because
counties are responsible for the determination of eligibility for
benefits under the Medi-Cal program, this bill, by requiring the
provision of Medi-Cal benefits to persons otherwise ineligible for
those benefits, would result in a state-mandated local program.
   This bill would only become operative when the Budget Act of 1997
is chaptered.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
  This bill would declare that it is to take effect immediately as an
urgency statute.  
   Existing law provides for the licensure and regulation of
community care facilities, as defined, by the State Department of
Social Services.  Existing law authorizes the department to suspend
or revoke the license of a community care facility based on specified
grounds, and pursuant to certain administrative hearing procedures.
Existing law sets forth procedures under which the Director of
Social Services is authorized to temporarily suspend any license
prior to any hearing when, in the opinion of the director, the action
is necessary to protect residents or clients of the facility from
physical or mental abuse, abandonment, or any other substantial
threat to health or safety.
   This bill would revise the procedures under which the department
is authorized to temporarily suspend any license to require the
director, when serving the licensee with the temporary suspension, to
include affidavits and all other information in support of the
order.
   Existing law grants the licensee a right to an interim hearing on
an order of temporary license suspension and specifies that nothing
in these provisions precludes a licensee from proceeding directly to
a full evidentiary hearing.
   This bill would specify that nothing in these provisions precludes
a licensee from seeking review of the order of temporary license
suspension by the superior court nor requires resolution of the
interim hearing request prior to review by the superior court.
   Under existing law, the interim hearing on the order is limited to
the issue of whether the department abused its discretion under
these provisions in issuing the order and the evidence at the interim
hearing is limited to the department's accusation and order of
temporary license suspension.
   This bill would delete the above limitations.  The bill would
require, instead, that the interim hearing provide to the licensee
and the department, at a minimum, designated rights.  The bill would
require the administrative law judge to sustain the temporary
suspension upon a finding that there is a reasonable probability that
the licensee will not prevail in the underlying action and the
likelihood of physical or mental abuse, abandonment, or other
substantial threat to health or safety of residents or clients in
notsustaining the order outweighs the likelihood of injury to the
licensee in sustaining the order.
   Existing law requires the administrative law judge to issue a
verbal interim decision at the conclusion of the interim hearing and
issue a written interim decision within one working day following the
conclusion of the hearing, limited in scope to sustaining or
vacating the order.
   This bill would require, instead, the written interim decision
within 15 working days following the hearing, delete the above
limitation in the scope of the decision, and require that the
decision include findings of fact and a conclusion articulating the
connection between the evidence produced at the hearing and the
decision reached.
   Existing law provides that the department is deemed to have abused
its discretion in issuing an order of temporary license suspension
only if the department's accusation and order of temporary license
suspension fail to allege facts and conditions showing that issuance
of the order is necessary as described above.
   This bill would delete this provision.
   Existing law provides for the Aid to Families with Dependent
Children-Foster Care (AFDC-FC) program, under which payments are made
on behalf of low-income children placed in foster care.  For
purposes of these provisions, including the setting of group home
rates, the reasonable costs of affiliated leases for shelter care for
foster children are allowable costs. However, reimbursement of
shelter costs is prohibited from exceeding 12% of the fair market
value of owned, leased, or rented buildings, exclusive of idle
capacity and capacity used for nongroup home programs and activities.

   This bill would provide that "owned, leased, or rented buildings"
as used in those provisions includes any structures, improvements,
edifices, land, grounds, and other similar property that is owned,
leased, or rented by the group home and that is used for group home
programs and activities.  The bill would specify that this provision
confirms and is declarative of, rather than a change in, existing law
and shall not be construed as a change in the meaning of those
provisions as last enacted. 
   Vote:  majority   2/3  .  Appropriation:
   no   yes  . Fiscal committee:  
no   yes  .  State-mandated local program:
 no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  Section 1550.5 of the Health and Safety  
  SECTION 1.  This act shall be known as the
Thompson-Maddy-Ducheny-Ashburn Welfare-to-Work Act of 1997.
  SEC. 1.5.  Section 8208 of the Education Code is amended to read:

   8208.  As used in this chapter:
   (a) "Alternative payments" includes payments that are made by one
child care agency to another agency or child care provider for the
provision of child care and development services, and payments that
are made by an agency to a parent for the parent's purchase of child
care and development services.
   (b) "Applicant or contracting agency" means a school district,
community college district, college or university, county
superintendent of schools, county, city, public agency, private
nontax-exempt agency, private tax-exempt agency, or other entity that
is authorized to establish, maintain, or operate services pursuant
to this chapter.  Private agencies and parent cooperatives, duly
licensed by law, shall receive the same consideration as any other
authorized entity with no loss of parental decisionmaking
prerogatives as consistent with the provisions of this chapter.
   (c) "Assigned reimbursement rate" is that rate established by the
contract with the agency and is derived by dividing the total dollar
amount of the contract by the minimum child day of average daily
enrollment level of service required.
   (d) "Attendance" means the number of children present at a child
care and development facility.  "Attendance," for the purposes of
reimbursement, includes excused absences by children because of
illness, quarantine, illness or quarantine of their parent, family
emergency, or to spend time with a parent or other relative as
required by a court of law or that is clearly in the best interest of
the child.
   (e) "Capital outlay" means the amount paid for the renovation and
repair of child care and development facilities to comply with state
and local health and safety standards, and the amount paid for the
state purchase of relocatable child care and development facilities
for lease to qualifying contracting agencies.
   (f) "Caregiver" means a person who provides direct care,
supervision, and guidance to children in a child care and development
facility.
   (g) "Child care and development facility" means any residence or
building or part thereof in which child care and development services
are provided.
   (h) "Child care and development programs" means those programs
that offer a full range of services for children from infancy to 14
years of age, for any part of a day, by a public or private agency,
in centers and family child care homes.  These programs include, but
are not limited to, all of the following:
   (1) Campus child care and development.
   (2) General child care and development.
   (3) Intergenerational child care and development.
   (4) Migrant child care and development.
   (5) Schoolage parenting and infant development.
   (6) State preschool.
   (7) Resource and referral.
   (8) Severely handicapped.
   (9) Family day care.
   (10) Alternative payment.
   (11) Child abuse protection and prevention services.
   (12) Schoolage community child care.
   (i) "Child care and development services" means those services
designed to meet a wide variety of needs of children and their
families, while their parents or guardians are working, in training,
seeking employment, incapacitated, or in need of respite.  These
services  may  include direct care and supervision,
instructional activities, resource and referral programs, and
alternative payment arrangements.
   (j) "Children at risk of abuse, neglect, or exploitation" means
children who are so identified in a written referral from a legal,
medical, or social service agency, or emergency shelter.
   (k) "Children with exceptional needs" means children who have been
determined to be eligible for special education and related services
by an individualized education program team according to the special
education requirements contained in Part 30 (commencing with Section
56000), and meeting eligibility criteria described in Section 56026
and Sections 56333 to 56338, inclusive, and Sections 3030 and 3031 of
Title 5 of the California Code of Regulations.  These children have
an active individualized education program, and are receiving
appropriate special education and services, unless they are under
three years of age and permissive special education programs are
available.  These children may be  mentally retarded
  developmentally disabled  , hard of hearing,
deaf, speech impaired, visually handicapped, seriously emotionally
disturbed, orthopedically impaired, other health impaired,
deaf-blind, multihandicapped, or children with specific learning
disabilities, who require the special attention of adults in a child
care setting.
   (l) "Children with special needs" includes infants and toddlers
under the age of three years; limited-English-speaking-proficient
children; children with exceptional needs; limited-English-proficient
handicapped children; and children at risk of neglect, abuse, or
exploitation.
   (m) "Closedown costs" means reimbursements for all approved
activities associated with the closing of operations at the end of
each growing season for migrant child development programs only.
   (n) "Cost" includes, but is not limited to, expenditures that are
related to the operation of child  care and  development
programs.  "Cost" may include a reasonable amount for state and local
contributions to employee benefits, including approved retirement
programs, agency administration, and any other reasonable program
operational costs.   "Cost" may also include amounts for
licensable facilities in the community served by the program,
including lease payments or depreciation and payments of principal
and interest on loans incurred to acquire, rehabilitate, or construct
licensable facilities, but these costs shall not exceed fair market
rents existing in the community in which the facility is located.
  "Reasonable and necessary costs" are costs that, in nature and
amount, do not exceed what an ordinary prudent person would incur in
the conduct of a competitive business.
   (o) "Elementary school," as contained in Section 425 of Title 20
of the United States Code (the National Defense Education Act of
1958, Public Law 85-864, as amended), includes early childhood
education programs and all child development programs, for the
purpose of the cancellation provisions of loans to students in
institutions of higher learning.
   (p) "Health services" include, but are not limited to, all of the
following:
   (1) Referral, whenever possible, to appropriate health care
providers able to provide continuity of medical care.
   (2) Health screening and health treatment, including a full range
of immunization recorded on the appropriate state immunization form
to the extent provided by the Medi-Cal Act (Chapter 7 (commencing
with Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code) and the Child Health and Disability Prevention
Program (Article 3.4 (commencing with Section 320) of Chapter 2 of
Part 1 of Division 1 of the Health and Safety Code), but only to the
extent that ongoing care cannot be obtained utilizing community
resources.
   (3) Health education and training for children, parents, staff,
and providers.
   (4) Followup treatment through referral to appropriate health care
agencies or individual health care professionals.
   (q) "Higher educational institutions" means the Regents of the
University of California, the Trustees of the California State
University, the Board of Governors of the California Community
Colleges, and the governing bodies of any accredited private
nonprofit institution of postsecondary education.
   (r) "Intergenerational staff" means persons of various
generations.
   (s) "Limited-English-speaking-proficient and
non-English-speaking-proficient children" means children who are
unable to benefit fully from an English-only child care and
development program as a result of either of the following:
   (1) Having used a language other than English when they first
began to speak.
   (2) Having a language other than English predominantly or
exclusively spoken at home.
   (t) "Parent" means any person living with a child who has
responsibility for the care and welfare of the child.
   (u) "Program director" means a person who, pursuant to Sections
8244 and 8360.1, is qualified to serve as a program director.
   (v) "Proprietary child care agency" means an organization or
facility providing child care, which is operated for profit.
   (w) "Resource and referral programs" means programs that provide
information to parents, including referrals and coordination of
community resources for parents and public or private providers of
care.  Services frequently include, but are not limited to:
technical assistance for providers, toy-lending libraries,
equipment-lending libraries, toy- and equipment-lending libraries,
staff development programs, health and nutrition education, and
referrals to social services.
   (x) "Severely handicapped children" are children who require
instruction and training in programs serving pupils with the
following profound disabilities:  autism, blindness, deafness, severe
orthopedic impairments, serious emotional disturbance, or severe
 mental retardation   developmental disability
 .  These children, ages birth to 21 years, inclusive, may be
assessed by public school special education staff, regional center
staff, or another appropriately licensed clinical professional.
   (y) "Short-term respite child care" means child care service to
assist families whose children have been identified through written
referral from a legal, medical, or social service agency, or
emergency shelter as being neglected, abused, exploited, or homeless,
or  a  at risk of being neglected, abused,
exploited, or homeless.  Child care is provided for less than 24
hours per day in child care centers, treatment centers for abusive
parents, family child care homes, or in the child's own home.
   (z) (1) "Site supervisor" means a person who, regardless of his or
her title, has operational program responsibility for a child care
and development program at a single site.  A site supervisor shall
hold a permit issued by the Commission on Teacher Credentialing that
authorizes supervision of a child care and development program
operating in a single site.  The Superintendent of Public Instruction
may waive the requirements of this subdivision if the superintendent
determines that the existence of compelling need is appropriately
documented.
   (2) In respect to state preschool programs, a site supervisor may
qualify under any of the provisions in this subdivision, or may
qualify by holding an administrative credential or an administrative
services credential.  A person who meets the qualifications of a site
supervisor under both Section 8244 and subdivision (e) of Section
8360.1 is also qualified under this subdivision.
   (aa) "Standard reimbursement rate" means that rate established by
the Superintendent of Public Instruction pursuant to Section 8265.
   (bb) "Startup costs" means those expenses an agency incurs in the
process of opening a new or additional facility prior to the full
enrollment of children.
   (cc) "State preschool services" means part-day educational
programs for low-income or otherwise disadvantaged
prekindergarten-age children.
   (dd) "Support services" means those services which, when combined
with child care and development services, help promote the healthy
physical, mental, social, and emotional growth of children.  Support
services include, but are not limited to:  protective services,
parent training, provider and staff training, transportation, parent
and child counseling, child development resource and referral
services, and child placement counseling.
   (ee) "Teacher" means a person with the appropriate permit issued
by the Commission on Teacher Credentialing who provides program
supervision and instruction which includes supervision of a number of
aides, volunteers, and groups of children.
   (ff) "Workday" means the time that the parent requires temporary
care for a child for any of the following reasons:
   (1) To undertake training in preparation for a job.
   (2) To undertake or retain a job.
   (3) To undertake other activities that are essential to
maintaining or improving the social and economic function of the
family, are beneficial to the community, or are required because of
health problems in the family.   
  SEC. 2.  Section 8208.1 is added to the Education Code, to read:
   8208.1.  Child care exempt from licensure is a valid parental
choice of care for all programs provided for under this part, and no
provision of this part shall be construed to exclude or discourage
the exercise of that choice.
  SEC. 3.  Section 8216 is added to the Education Code, to read:
   8216.  When making referrals, every agency operating both a direct
service program and a resource and referral program shall provide at
least four referrals, at least one of which shall be a provider over
which the agency has no fiscal or operational control, as well as
information to a family on the family's ability to choose a license
exempt provider.
  SEC. 4.  Section 8225 is added to the Education Code, to read:
   8225.  When making referrals, every agency operating both a direct
service program and an alternative payment program shall provide at
least four referrals, at least one of which shall be a provider over
which the agency has no fiscal or operational control, as well as
information to a family on the family's ability to choose a license
exempt provider.
  SEC. 5.  Section 8263 of the Education Code is amended to read:

   8263.  (a) The Superintendent of Public Instruction shall adopt
rules and regulations on eligibility, enrollment, and priority of
services needed to implement this chapter.  In order to be eligible
for federal and state subsidized child development services, families
shall meet at least one requirement in each of the following areas:

   (1) A family is (A) a current aid recipient, (B) income eligible,
(C) homeless, or (D) one whose children are recipients of protective
services, or whose children have been identified as being abused,
neglected, or exploited, or at risk of being abused, neglected, or
exploited.
   (2) A family needs the child care service because the child is
identified by a legal, medical, social service agency, or emergency
shelter as (A) a recipient of protective services, (B) being
neglected, abused, or exploited, or at risk of neglect, abuse, or
exploitation, or (C) having a medical or psychiatric special need
which cannot be met without provision of child day care, or the
parents are (i) engaged in vocational training leading directly to a
recognized trade, paraprofession, or profession, (ii) employed or
seeking employment, (iii) seeking permanent housing for family
stability, or (iv) incapacitated, including a medical or psychiatric
special need which cannot be met without provision of child day care.

   (b)  Priority   Except as provided in Article
15.5 (commencing with Section 8350), priority  for state and
federally subsidized child development services is as follows:
   (1) First priority shall be given to neglected or abused children
who are recipients of child protective services, or recipients who
are at risk of being neglected or abused, upon written referral from
a legal, medical, or social service agency.  When an agency is unable
to enroll a child in the first priority category, the agency  shall
refer the family to local resource and referral services to locate
services for the child.
   (2) Second priority shall be equally given to eligible families,
regardless of the number of parents in the home, who are income
eligible.  Within this priority, families with the lowest gross
monthly income in relation to family size, as determined by a
schedule adopted by the superintendent, shall be admitted first.
When two or more families are in the same priority in relation to
income, the family that has been on the waiting list for the longest
amount of time shall be admitted first.  For purposes of determining
order of admission, the grants of public assistance recipients shall
be counted as income.
   (3) The superintendent shall set criteria for and may grant
specific waivers of the priorities established in this subdivision
for agencies that wish to serve specific populations, including
disabled children or children of prisoners.  These new waivers shall
not include proposals to avoid appropriate fee schedules or admit
ineligible families, but may include proposals to accept members of
special populations in other than strict income order, as long as
appropriate fees are paid.
   (c) Notwithstanding any other provision of law, in order to
promote continuity of services, a family enrolled in a state or
federally funded child care and development program whose services
would otherwise be terminated because the family no longer meets the
program income, eligibility, or need criteria may continue to receive
child development services in another state or federally funded
child care and development program if the contractor is able to
transfer the family's enrollment to another program for which the
family is eligible prior to the date of termination of services or to
exchange the family's existing enrollment with the enrollment of a
family in another program, provided that both families satisfy the
eligibility requirements for the program in which they are being
enrolled.  The transfer of enrollment may be to another program
within the same administrative agency or to another agency that
administers state or federally funded child care and development
programs within that county.
   (d) A physical examination and evaluation, including
age-appropriate immunization, shall be required prior to, or within
six weeks of, enrollment. No standard, rule, or regulation shall
require medical examination or immunization for admission to a child
care and development program of a child whose parent or guardian
files a letter with the governing board of the child care and
development program stating that the medical examination or
immunization is contrary to his or her religious beliefs, or provide
for the exclusion of a child from the program because of a parent or
guardian having filed the letter.  However, whenever there is good
cause to believe that a child is suffering from a recognized
contagious or infectious disease, the child shall be temporarily
excluded from the program until the governing board of the child care
and development program is satisfied that any contagious or
infectious disease does not exist.
   (e) Regulations formulated and promulgated pursuant to this
section shall include the recommendations of the State Department of
Health Services relative to health care screening and the provision
of health care services.  The superintendent shall seek the advice
and assistance of these health authorities in situations where
service under this chapter includes or requires care of ill or
disabled children.
   (f) The superintendent shall establish a fee schedule for families
utilizing child care and development services pursuant to this
chapter, which shall include, but not be limited to, the following
restrictions:
   (1) No fees shall be assessed for families whose children are
enrolled in the state preschool program.
   (2) A contractor or provider may require parents to provide
diapers.  A contractor or provider offering field trips either may
include the cost of the field trips within the service rate charged
to the parent or may charge parents an additional fee.  No federal or
state money shall be used to reimburse parents for the costs of
field trips if those costs are charged as an additional fee.  A
contractor or provider that charges parents an additional fee for
field trips shall inform parents, prior to enrolling the child, that
a fee may be charged and that no reimbursement will be available.  A
contractor or provider may charge parents for field trips or require
parents to provide diapers only under the following circumstances:
   (A) The provider has a written policy that is adopted by the
agency's governing board that includes parents in the decisionmaking
process regarding both of the following:
   (i) Whether or not, and how much, to charge for field trip
expenses.
   (ii) Whether or not to require parents to provide diapers.
   (B) The maximum total of charges per child in a contract year does
not exceed twenty-five dollars ($25).
   (C) No child is denied participation in a field trip due to the
parent's inability or refusal to pay the charge.  No adverse action
shall be taken against any parent for that inability or refusal.
   Each contractor or provider shall establish a payment system that
prevents the identification of children based on whether or not their
parents have paid a field trip charge.
   Expenses incurred and income received for field trips pursuant to
this section, shall be reported to the State Department of Education.
  The income received for field trips shall be reported specifically
as restricted income.
   (g) The superintendent shall establish guidelines for the
collection of employer-sponsored child care benefit payments from any
parent whose child receives subsidized child care and development
services.  These guidelines shall provide for the collection of the
full amount of the benefit payment, but not to exceed the actual cost
of child care and development services provided, notwithstanding the
applicable fee based on the fee schedule.
   (h) The superintendent shall establish guidelines according to
which the director or a duly authorized representative of the child
care and development program will certify children as eligible for
state reimbursement pursuant to this section.
   (i) No public funds shall be paid directly or indirectly to any
agency  that does not pay at least the minimum wage to each of its
employees.   
  SEC. 6.  Section 8263.1 is added to the Education Code, to read:
   8263.1.  (a) For purposes of this chapter, "income eligible" means
that a family's adjusted monthly income is at or below 75 percent of
the state median income, adjusted for family size, and adjusted
annually.
   (b) As of January 1, 1998, children in subsidized child care
programs with an exit criteria of 100 percent of the state median
income, whose family income adjusted for family size, is above 75
percent of the state median income shall not be displaced and shall
continue to receive child care services as long as they continue to
meet the criteria that apply to the program on December 31, 1997.
The parent fee schedule for these programs in effect on December 31,
1997, shall continue to be applied until the department adopts a new
fee schedule that applies to these families.
  SEC. 7.  Section 8277.5 is added to the Education Code, to read:
   8277.5.  (a) Subject to appropriation in the annual Budget Act,
the Child Care and Development Facilities Loan Guaranty Fund and the
Child Care and Development Facilities Direct Loan Fund are hereby
established in the State Treasury.  The Superintendent of Public
Instruction may transfer state funds appropriated for child care
facilities enhancement and the proceeds derived from any future sales
of tax-exempt child care and development facilities bonds into these
funds.
   (b) (1) Moneys deposited in the Child Care and Development
Facilities Loan Guaranty Fund shall be used for the purpose of
guaranteeing private sector loans to sole proprietorships,
partnerships, proprietary and nonprofit corporations, and local
public agencies for the purchase, development, construction,
expansion, or improvement of licensed child care and development
facilities, and for the purpose of administering the guarantees of
these loans.  The loan guarantees shall be made in accordance with
the priorities and guidelines promulgated by the Department of
Housing and Community Development, as set forth in Section 8277.6.
The full faith and credit of the State of California is not pledged
to the Child Care and Development Facilities Loan Guaranty Fund and
the state is not liable for loan defaults that exceed the amount of
funds deposited with the Child Care and Development Facilities Loan
Guaranty Fund.
   (2) A loan guarantee made pursuant to this section may not exceed
80 percent of the principal amount of a private sector loan
guaranteed by the fund and shall be used only to guarantee a private
sector loan for the purchase, development, construction, expansion,
or improvement of facilities described in Section 8277.6 and for
related equipment and fixtures, but shall not be used primarily to
refinance an existing loan or for working capital, supplies, or
inventory.  A loan guarantee for improvements shall be limited to
those improvements necessary for any of the following purposes:
   (A) To obtain, maintain, renew, expand, or revise a child care
license.
   (B) To make necessary health and safety improvements.
   (C) To make seismic improvements.
   (D) To provide access for disabled children.
   (3) The aggregate amount of outstanding loan guarantees shall not
exceed four times the amount in the Child Care and Development
Facilities Loan Guaranty Fund.
   (4) A loan guarantee made pursuant to this section shall be for
the term of the loan or 20 years, whichever is less.  Security for
the loan guarantee shall include a deed of trust or mortgage that may
be subordinated to other liens, personal guarantees of shareholders
and partners in the case of proprietary borrowers, and other
reasonably available collateral.  Default provisions and
                                 other terms shall be reasonable and
designed to obtain prompt and full repayment of the guaranteed loan
by the borrower.  Reasonable loan guarantee fees and points designed
solely to cover the administrative costs of managing the Child Care
and Development Facilities Loan Guaranty Fund may be charged to
applicants and borrowers.
   (5) A loan guarantee made pursuant to this section shall only be
granted if the applicant agrees to provide child care in a facility
for a period of 20 years or the term of the guaranteed loan,
whichever is less.
   (6) A loan guarantee made pursuant to this section terminates 90
days after the lender's receipt of notice that the recipient has
either ceased making payments or providing child care in the facility
for which the loan was made, or both, unless the lender takes action
to accelerate the loan.  If a family day care provider ceases to
operate, but retains its three-year license, the provider shall give
notice to the Department of Housing and Community Development and the
lending institution of its intention to resume offering child care
services for the term of its license, or shall provide notice of its
intention to cease providing child care services.  The Child Care and
Development Facilities Loan Guaranty Fund is not liable for a
default occurring after the loan guarantee has ended.
   (c) (1) Moneys deposited in the Child Care and Development
Facilities Direct Loan Fund shall be used for the purpose of making
subordinated direct loans to sole proprietorships, partnerships,
proprietary and nonprofit corporations, and local public agencies for
the purchase, development, construction, expansion, or improvement
of licensed child care and development facilities, and for the
purpose of administering these loans.  The direct loans shall be made
in accordance with the priorities and guidelines promulgated by the
Department of Housing and Community Development, as set forth in
Section 8277.6.  The full faith and credit of the State of California
is not pledged to the Child Care and Development Facilities Direct
Loan Fund and the state is not liable for loan defaults that exceed
the amount of funds deposited in the Child Care and Development
Facilities Direct Loan Fund.
   (2) A loan made pursuant to this section may not exceed 50 percent
of the total amount of investment for the purchase, development,
expansion, or improvement of eligible child care and development
facilities as described in Section 8277.6 and for related equipment
and fixtures, but may not be used to refinance an existing loan, for
working capital, for supplies, or for inventory.  A loan made
pursuant to this section may not exceed 20 percent of the total
amount of investment if the same facility is also utilizing a loan
guarantee pursuant to subdivision (b).  Investment for purposes of
this paragraph means the total cost paid or incurred by the applicant
in constructing, renovating, or acquiring a facility.  A direct loan
for improvements shall be limited to those improvements necessary
for any of the following purposes:
   (A) To obtain, maintain, renew, expand, or revise a child care
license.
   (B) To make necessary health and safety improvements.
   (C) To make seismic improvements.
   (D) To provide access for disabled children.
   (3) The term of a loan made pursuant to this section may not
exceed 20 years.  Security for the loan shall include a deed of trust
or mortgage that may be subordinated to other liens, personal
guarantees of shareholders and partners in the case of proprietary
borrowers, and other reasonably available collateral.  The interest
rate, payment provisions, late charges, and other terms may vary
based on the ability of the borrower to repay the loan, but shall be
reasonable and designed to obtain prompt and full repayment of the
loan by the borrower.  Reasonable loan fees and points designed
solely to cover the administrative costs of managing the fund may be
charged to applicants and borrowers.
   (d) Funds appropriated for the purposes of this section and
Section 8277.6 shall be made from funds that are not designated as
meeting the state's minimum funding obligation under Section 8 of
Article XVI of the California Constitution.
  SEC. 8.  Section 8277.6 is added to the Education Code, to read:
   8277.6.  (a) The Department of Housing and Community Development
shall administer the Child Care and Development Facilities Loan
Guaranty Fund and the Child Care and Development Facilities Direct
Loan Fund.
   (b) Eligible applicants for the loan guaranty program and the
direct loan program shall include sole proprietorships, partnerships,
proprietary and nonprofit corporations, and local public agencies
that provide licensed child care and development services.
Facilities that primarily serve households with incomes not exceeding
75 percent of the local median income, as determined from time to
time by the United States Department of Housing and Urban
Development, shall be given priority in loan guarantees and direct
loans made pursuant to this section and Section 8277.5.  Eligible
facilities shall include full-day and part-day child care and
development facilities and family child care homes serving more than
six children.
   (c) Loan guarantees and direct loans for family child care homes
serving more than six children are limited to loans for repairs and
renovation that are required to maintain a license or, if the family
child care provider is otherwise qualified for a license for more
than six children, to repairs, renovations, and additions required to
obtain a license for more than six children.  A family child care
home provider shall provide evidence from the community care
licensing division that the repairs, renovations, or additions are
required to maintain the license or obtain a license for more than
six children.  Loan guarantees and direct loans for family child care
homes shall not be made for the purpose of purchasing a home or any
real property.
   (d) The State Department of Education shall provide program
priorities that shall govern the ranking of applications by the
Department of Housing and Community Development.  These priorities
shall include, but are not limited to, the following:
   (1) Geographic priorities based on the extent of need for child
care and development supply-building efforts in different parts of
the state.
   (A) Not less than 30 percent of the loan guarantee and direct loan
obligations shall benefit providers located in rural areas, as
defined in subparagraph (B).  If the amount of qualified applications
from rural providers is insufficient to satisfy this requirement,
the excess capacity reserved for rural providers may be made
available to other qualified applications according to the policies
and procedures of the Department of Housing and Community
Development.  The remaining 70 percent of funds shall be available to
rural or urban areas and other priorities in accordance with this
subdivision.
   (B) For purposes of subdivision (a), rural communities are defined
by any county with fewer than 400 residents per square mile.
   (2) Age priorities based on the extent of need for child care and
development supply-building efforts for children of different age
groups.
   (3) Income priorities based on the extent of need for child care
and development supply-building efforts to benefit families
transitioning to work or other lower income families.
   (4) Program priorities based on the extent of facilities needs
among specific kinds of providers, including those that contract to
administer state and federally funded child care and development
programs administered by the State Department of Education, providers
who have lost classrooms due to class size reduction or other state
or local initiatives, or providers that need to expand to meet the
needs of a child care initiative for recipients of aid under Chapter
3 (commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program.
   (e) The program priorities shall reflect input from and
consultation with a panel of volunteer advisors that includes
representatives of diverse sectors of the child care and development
field, financial institutions, local planning councils, the Child
Development Programs Advisory Committee, and the State Department of
Social Services for purposes of identifying communities with high
percentages of recipients of aid under Chapter 3 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, who need child care to
meet work requirements.  The Department of Housing and Community
Development shall assess and report annually, commencing within 12
months of implementation of this section to the Legislature, after
consultation with the State Department of Education, on the
performance, effectiveness, and fiscal standing of the Child Care and
Development Facilities Loan Guaranty Fund and the Child Care and
Development Facilities Direct Loan Fund.  The report shall include
information on the number of defaults, the types of facilities in
default, and a review of the adequacy of the set-aside for rural
areas specified in paragraph (1) of subdivision (e) of Section 82776.

   (f) The Department of Housing and Community Development shall
establish regulations, guidance, forms, policies and procedures for
implementing and managing the Child Care and Development Facilities
Loan Guaranty Fund and the Child Care and Development Facilities
Direct Loan Fund and making the loan guarantees and direct loans
authorized hereunder, consistent with priorities provided by the
State Department of Education.  To the extent feasible, the
Department of Housing and Community Development shall use applicant
fees and points to cover its administrative costs.  The Department of
Housing and Community Development may utilize an amount of money
from the Child Care and Development Facilities Loan Guaranty Fund and
the Child Care and Development Facilities Direct Loan Fund, as
appropriate, for reasonable administrative costs in any given fiscal
year that shall not exceed the lesser of 3 percent of the principal
amount of loans guaranteed or direct loans made, as appropriate,
during that fiscal year or 3 percent of the balance of funds
currently in the Child Care and Development Facilities Loan Guaranty
Fund or Child Care and Development Facilities Direct Loan Fund, as
appropriate.
   (g) The Department of Housing and Community Development shall
establish guidelines for serving family day care homes efficiently,
including, but not limited to, making loans available from the Child
Care and Development Facilities Direct Loan Fund to local
microenterprise loan funds and other lenders who may relend the funds
in appropriate amounts to eligible family day care home providers or
by authorizing a specified amount of guarantees of small loans by
local microenterprise loan funds and other lenders serving eligible
family day care home providers.
  SEC. 9.  Section 8286 of the Education Code is amended to read:

   8286.  The Governor shall appoint an advisory committee composed
of one representative from the State Board of Education,  one
representative from the State Social Services Advisory Board,
 one representative of private education, one representative
of child welfare, one representative of private health care, two
representatives of proprietary child care agencies, one
representative of a community action agency qualified under Title II
of the Economic Opportunity Act of 1969, two representatives of
family day care homes, one representative of a child care provider
exempt from licensure, five parents of children participating in
child care programs of whom at least three shall be parents of
children participating in publicly subsidized child development
programs  , and one shall be a parent of a child receiving care
from a child care provider exempt from licensure  , appointed
from names selected by a democratic process to assure representation
of the parents of children being served, four persons representing
professional or civic groups or public or nonprofit private agencies,
organizations or groups concerned with child development, one person
who administers a public school child care program established
pursuant to Article 22 (commencing with Section 8460), one person who
administers a county office of education schoolage child care
program established pursuant to Article 22 (commencing with Section
8460), and one teacher currently serving in a public school children'
s center.
   The advisory committee shall also include one representative from
the State Department of Education appointed by the Superintendent of
Public Instruction, and one representative each from the Employment
Development Department, the State Department of Social Services, the
State Department of Health Services, and the State Department of
Developmental Services, appointed by the respective director of each
department.
   The advisory committee shall assist the State Department of
Education in developing a state plan for child development programs
pursuant to this chapter. 
   The advisory committee shall provide ongoing coordination and
communication to local child care planning councils to facilitate
activities and provide technical assistance as needed. 
   The advisory committee shall continually evaluate the
effectiveness of those programs and shall report thereon at each
regular session of the Legislature.
   The advisory committee shall assist in and  coordinate
the drafting of guidelines for local planning councils pursuant to
Chapter 2.5 (commencing with Section 8499) of Part 6.  The advisory
committee shall request state and local agencies to submit suggested
guidelines.  The final guidelines shall be drafted and adopted by the
committee, in consultation with local child care agencies, local
planning councils, the Secretary of Child Development and Education,
the State Department of Education, and the State Department of Social
Services.  The guidelines shall include, but not be limited to,
provisions for assessing child care supply, demand, cost, and
facility needs, in terms of age, family income level, special needs,
and multilingual and multicultural backgrounds.  Guidelines developed
for programs administered by the State Department of Education shall
be concurred in by the department.   
  SEC. 10.  Article 15.5 (commencing with Section 8350) of Chapter 2
of Part 6 of the Education Code is repealed.
  SEC. 11.  Article 15.5 (commencing with Section 8350) is added to
Chapter 2 of Part 6 of the Education Code, to read:

      Article 15.5.  Child Care for Recipients of the CalWORKs
Program

   8350.  (a) It is the intent of the Legislature in enacting this
article to ensure that recipients of aid under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, and former recipients
who have left aid for employment, are connected as soon as possible
to local child care resources, make stable child care arrangements,
and continue to receive subsidized child care services after they no
longer receive aid as long as they require those services and meet
the eligibility requirements set forth in Sections 8263 and 8263.1.
   (b) This article establishes three stages of child care services
through which a recipient of aid under Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code, or any successor program, will pass.  Further, as
families' child care needs are met by county welfare departments and
later by other local child care and development contractors, it is
the intent of the Legislature that families experience no break in
their child care services due to a transition between the three
stages of child care services.
   8351.  (a) The county welfare department shall manage the first
stage during which a family shall receive a child care subsidy for
any legal care chosen by the parent.  The first stage begins upon the
entry of a person into the program prescribed by Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.  A county shall move recipients out of
this first response stage as quickly as possible after the county
determines that the need for child care is stable.  A recipient may
be served in this stage for a maximum of six months.  The six-month
time limit may be extended if the county determines that the
recipient's situation is too unstable to be shifted to the second
stage or if no funds are available to provide child care services in
the second stage.
   (b) A county may contract with public or private child care
providers to provide any or all of the services during the first
stage.  If the county welfare department elects to contract with any
child care provider that is also under contract with the State
Department of Education, these contracts shall be consistent with
state law.
   8352.  As soon as appropriate, a county welfare department shall
refer families needing child care services to the local child care
resource and referral program funded pursuant to Article 2
(commencing with Section 8210). Resource and referral program staff
shall colocate with a county welfare department's case management
offices for aid under Chapter 2 (commencing with Section 11200) of
Part 3 of Division 9 of the Welfare and Institutions Code, or any
successor program, or arrange other means of swift communication with
parents and case managers of this aid.  The local child care
resource and referral program shall assist families to establish
stable child care arrangements as soon as possible.  These child care
arrangements may include licensed and license-exempt care.
   8353.  The second stage begins when the county determines that the
recipient's work or approved work activity is stable or when a
recipient is transitioning off of aid and child care is available
through a local stage two program.  The local stage two agency shall
assist in moving families to stage three as quickly as feasible.  No
family may continue to receive child care in stage two beyond two
years after it is no longer eligible for aid.  The second stage shall
be administered by agencies contracting with the State Department of
Education.  These contractors may be either agencies that have an
alternative payment contract pursuant to Section 8220.1 or county
welfare departments that choose to administer this stage in order to
continue to provide child care services for recipients or former
recipients of aid.  If the county chooses to contract with the
department to provide alternative payment services, this contract
shall not displace, or result in the reduction of an existing
contract of, a current alternative payment program.
   8354.  (a) The third stage begins when a funded space is available
for CalWORKs recipients, persons who received a lump-sum diversion
payment, and former CalWORKs participants who are regularly employed
at a wage that does not exceed 75 percent of the state median income.
  The third stage shall be administered by programs contracting with
the State Department of Education.  Parents' eligibility for child
care and development services will be governed by Section 8263 and
regulations adopted by the State Department of Education.
   (b) In order to move welfare recipients and former recipients from
their relationship with county welfare departments to relationships
with institutions providing services to working families, it is the
intent of the Legislature that families that are former recipients of
aid, or are transitioning off aid, receive their child care
assistance in the same fashion as other low-income working families.
Therefore, it is the intent of the Legislature that families no
longer rely on county welfare departments to obtain child care
subsidies beyond the time they are receiving other services from the
welfare department.
   (c) A county welfare department shall not administer the third
stage of child care for CalWORKs recipients except to the extent to
which it delivered those services to families receiving, or within
one year of having received, Aid to Families with Dependent Children
prior to the enactment of this section.
   (d) This article does not preclude county welfare departments from
operating an alternative payment program under contract with the
State Department of Education to serve families referred by child
protective services.
   8355.  Child care during the third stage may be funded with moneys
dedicated to current and former recipients of aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program, including
the federal funds appropriated to alternative payment program
contractors in the 1996-97 fiscal year using the Budget Act's Section
28 process as described in subdivision (b).  Nothing shall prevent
child care services provided under stage three from being funded with
moneys from other federal or state sources.  Nothing in this article
shall preclude current and former recipients of aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program, from
receiving child care services pursuant to other provisions of this
chapter.
   8356.  It is the intent of the Legislature that the State
Department of Education work with Head Start and state preschool
programs to generate extended-day and evening care for recipients of
aid under Chapter 2 (commencing with Section 11200) of Part 3 of
Division 9 of the Welfare and Institutions Code, or any successor
program, through recruiting and training parents to be licensed and
license-exempt care providers and shall facilitate connections
between Head Start and state preschool contractors and child care
certificate administrators, including counties and other alternative
payment programs, so that funds available for Sections 8351, 8353,
and 8354 cover the cost of this care.
   8356.1.  It is the intent of the Legislature that each county
receive funding for child care services provided in stage two that is
at least equivalent to the amount of funding received in the 1996-97
fiscal year for income disregard pursuant to Section 11451.6 of the
Welfare and Institutions Code and supplemental child care pursuant to
Section 11451.7 of the Welfare and Institutions Code.
   8357.  (a) The cost of child care services provided under this
article shall be governed by regional market rates.  Recipients of
child care services provided pursuant to this article shall be
allowed to choose the child care services of licensed child care
providers or child care providers who are, by law, not required to be
licensed, and the cost of that child care shall be reimbursed by
counties or agencies that contract with the State Department of
Education if the cost is within the regional market rate.  For
purposes of this section, "regional market rate" means care costing
no more than 1.5 market standard deviations above the mean cost of
care for that region.
   (b) Reimbursement to child care providers shall not exceed the fee
charged to private clients for the same service.
   (c) Reimbursement shall not be made for child care services when
care is provided by parents, legal guardians, or members of the
assistance unit.
       (d) A child care provider located on an Indian reservation or
rancheria and exempted from state licensing requirements shall meet
applicable tribal standards.
   (e) For purposes of this section, "reimbursement" means a direct
payment to the provider of child care services.  However, to allow
time for the development of the administrative systems necessary to
issue direct payments to providers, for a period not to exceed six
months from the effective date of this article, a county may
reimburse the cost of child care services through a direct payment to
a recipient of aid rather than to the child care provider.
   (f) Counties and alternative payment programs shall not be bound
by the rate limits described in subdivision (a) when there are, in
the region, no more than two child care providers of the type needed
by the recipient of child care services provided under this article.

   8358.  (a) By January 31, 1998, the State Department of Education
and the State Department of Social Services shall design a form for
license-exempt child care providers to use for certifying health and
safety requirements to the extent required by federal law.  Until the
form is adopted, the information required pursuant to Section 11324
of the Welfare and Institutions Code shall continue to be maintained
by the county welfare department or contractor, as appropriate.
   (b) By January 31, 1998, the State Department of Education and the
State Department of Social Services shall do all of the following:
   (1) Design a standard process for complaints by parents about the
provision of child care that is exempt from licensure.
   (2) Design, in consultation with local planning councils, a single
application for all child care programs and all families.
   (3) Present recommendations to the Legislature on ways to
consolidate state and federal child care programs.
   (c) County welfare departments and alternative payment programs
shall encourage all providers who are licensed or who are exempt from
licensure and who are providing care under Section 8151, 8153, or
8155, to secure training and education in basic child development.
   (d) The State Department of Education shall increase consumer
education and consumer awareness activities so that parents will have
the information needed to seek child care of high quality.  High
quality child care shall include both licensed and license-exempt
care.
   8359.  (a) County welfare departments and alternative payment
programs shall provide to the State Department of Education or the
State Department of Social Services, whichever is appropriate, and
the local planning council, on a quarterly basis, data about child
care usage and demand in each of the three stages.  The State
Department of Education and the State Department of Social Services
shall forward this data quarterly to the Department of Finance and
the Joint Legislative Budget Committee for fiscal planning.
   (b) By January 10 of each year, the Department of Finance shall
present to the respective legislative budget committees an estimate
of the cost of funding the expected demand for child care as
described in subdivision (a) of Section 8351 and Sections 8353 and
8354.
   8359.1.  (a) It is the intent of the Legislature in enacting this
article to provide sufficient funding through an appropriation in the
annual Budget Act to fund the estimated cost of providing child care
for all individuals who are anticipated to need child care to
participate in the welfare-to-work programs and to transition to
work.
   (b) It is the intent of the Legislature that child care and
development contracts in existence on the effective date of this
section be allowed to continue until the end of the 1997-98 fiscal
year.
   (c) Funding for purposes of implementing this article shall be
appropriated in the annual Budget Act.
  SEC. 12.  Section 8481 is added to the Education Code, to read:
   8481.  (a) Subject to appropriation in the annual Budget Act, for
the purpose of the program in this article, the Superintendent of
Public Instruction may allocate funds for the establishment of
school-based schoolage before and after school programs that include
homework and tutoring assistance, improve literacy skills, and
provide recreational activities, as well as facilitate the transition
from welfare to work by providing child care for schoolage children
and potential employment for welfare recipients who are parents of
children enrolled in schoolage child care programs.
   (b) A before and after school program, whether public, private, or
school district operated, in collaboration with other local
governmental agencies, may apply to the State Department of Education
for funding under this article.  A before and after school program
that receives funding pursuant to this article may participate in any
other grant programs that fund literacy and technology activities.
   (c) In order to achieve the goals of assisting children in
learning, providing parents with employment and parenting skills,
providing a safe environment for children, and helping prevent crime
in neighborhoods, a program funded under this article shall be a
collaborative effort with a school district, and may also include
collaboration with any combination of the following:  other school
districts, community college districts, counties, cities, community
based organizations, not-for-profit organizations, the local agency
that provides the Even Start Family and Head Start literacy programs
or their equivalent programs, and the private sector.
   (d) In selecting programs for funding under this article, the
department shall use the standards set forth in Section 8463 and all
of the following criteria:
   (1) Programs shall have demonstrated experience in implementing
quality before or after-school child development programs.
   (2) Programs shall demonstrate the inclusion of a strong literacy
component.
   (3) Programs shall demonstrate a working collaboration with
entities listed in subdivision (d), including Even Start Family and
Head Start literacy program providers, to the extent that these
programs exist in the service area.
   (e) Notwithstanding Section 8468, in allocating funds pursuant to
this article, preference shall be given to programs that currently
employ recipients of aid under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code,
or any successor program, who are parents of children enrolled in the
applicant programs or that have a demonstrated commitment to
providing employment opportunities for those recipients of aid, or
both.
   (f) Funding received by a before and after school program pursuant
to this article may be renewed and is contingent upon the following:

   (1)  Compliance with the requirement of subdivision (d), the
criteria set forth in subdivision (e), and the priorities set forth
in subdivision (f).
   (2) A favorable evaluation completed by the State Department of
Education pursuant to Section 8498.8 or an evaluation that meets the
standards of the department.
   (3) Programs shall demonstrate that they are receiving locally
generated resources from other than federal and state sources, which
may include in-kind contributions.
   (g) (1) A program established under this section may employ
parents of schoolage children who are participating in the program
established pursuant to Article 3.2 (commencing with Section 11320)
of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, or any successor program, and may employ those parents in the
schools attended by their own children.  Parents employed pursuant to
this subdivision may also participate in training programs at least
six hours per week, in order to help them understand child
development, learn parenting skills, and obtain skills for employment
in either an educational or child care setting.  Employment in the
program may fulfill a participant's employment requirements under
Article 3.2 (commencing with Section 11320) of Chapter 2 of Part 3 of
Division 9 of the Welfare and Institutions Code.
   (2) A program shall also be encouraged to hire older siblings of
children in the program whose families receive aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program, to work in
either the program's literacy or recreation components.  It is the
intent of this subdivision that hiring teenagers from families that
receive aid under this Chapter 2 (commencing with Section 11200) of
Part 3 of Division 9 of the Welfare and Institutions Code, or any
successor program, will provide an additional source of income for
these families.
   (3) All program participants shall be assessed before they work
with children to determine their skills and literacy development and
a criminal background check on each participant shall be completed
before that participant begins to work with children.  Participants
shall be supervised by qualified staff.
   (4) (A) Notwithstanding any other provision of law, but subject to
subparagraph (B), programs operating under this article that use
recipients of aid under Article 3.2 (commencing with Section 11320)
of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, or any successor program, may count those recipients as staff
members for purposes of determining compliance with staffing ratio
requirements.
   (B) Teenage siblings used by programs operating under this article
may not be included in computing compliance with staffing ratio
requirements.
   (5) Notwithstanding any other provisions of law, programs
operating under this section may extend their hours of operation
beyond 20 hours per week.
   (h) A program established pursuant to this section shall assist
the children of recipients of aid under Article 3.2 (commencing with
Section 11320) of Chapter 2 of Part 3 of Division 9 of the Welfare
and Institutions Code, or any successor program, and other children
to complete homework, improve literacy skills, that shall include,
but not be limited to, reading, writing, mathematical, and computer
skills, and participate in recreational activities.
   (i) Programs funded under this section shall provide training on
how to work with children on reading, writing, listening, and
speaking.  This training shall be provided in collaboration with an
Even Start Family or Head Start literacy program, or their equivalent
programs.
   (j) (1) Notwithstanding Sections 8468 and 8473, priority for
funding shall be given to schoolsites where a minimum of 70 percent
of the children are eligible for, or are recipients of, either aid
under Chapter 2 (commencing with Section 11200) of Part 3 of Division
9 of the Welfare and Institutions Code or free or reduced-cost meals
through the school lunch program.
   (2) Priority for enrollment in programs funded under this section
shall be given in accordance with Section 8468.5.
   (k) Programs funded under this section shall be encouraged to take
advantage of free snack programs administered by the United States
Department of Agriculture.
   (l) It is the intent of this article, by providing a safe,
supervised after-school environment for children, including those
teens employed by a program, to reduce criminal activity among
juveniles, and to strengthen parent-child relationships and
communities by involving parents in their children's schoolwork and
schools.
   (m) Notwithstanding Section 8360.1 or any other provision of law,
college courses in recreation, art, mathematics, and physical and
social development that would enhance the education of schoolage
children may be considered to meet course requirements in child
development.
  SEC. 13.  Chapter 2.3 (commencing with Section 8499) is added to
Part 6 of the Education Code, to read:

      CHAPTER 2.3.  LOCAL PLANNING COUNCILS
      Article 1.  Definitions

   8499.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Block grant" means the block grant contained in Title VI of
the Child Care and Development Fund, as established by the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193).
   (b) "Child care" means all licensed child care and development
services and license-exempt child care, including, but not limited
to, private for-profit programs, nonprofit programs, and publicly
funded programs, for all children up to and including 13 years of
age, including children with special needs and children from all
linguistic and cultural backgrounds.
   (c) "Child care provider" means a person who provides child care
services or represents persons who provide child care services.
   (d) "Community representative" means a person who represents an
agency or business that provides private funding for child care
services, or who advocates for child care services through
participation in civic or community-based organizations but is not a
child care provider and does not represent an agency that contracts
with the State Department of Education to provide child care and
development services.
   (e) "Consumer" means a parent or person who receives, or who has
received within the past 36 months, child care services.
   (f) "Department" means the State Department of Education.
   (g) "Local planning council" means a local child care and
development planning council as described in Section 8499.3.
   (h) "Public agency representative" means a person who represents a
city, county, city and county, or local education agency.

      Article 2.  Membership and Funding of Local Child Care and
Development Planning Councils

   8499.3.  (a) It is the intent of the Legislature that local child
care and development planning councils shall provide a forum for the
identification of local priorities for child care and the development
of policies to meet the needs identified within those priorities.
   (b) The county board of supervisors and the county superintendent
of schools shall do both of the following:
   (1) Select the members of the local planning council.  Before
making selections pursuant to this subdivision, the board of
supervisors and the county superintendent of schools shall publicize
their intention to select the members and shall invite local
organizations to submit nominations.  In counties in which the
superintendent is appointed by the county board of education, the
county board of education may make the appointment or may delegate
that responsibility to the superintendent.
   (2) Establish the term of appointment for the members of the local
planning council.
   (c) (1) The local planning council shall be comprised as follows:

   (A) Twenty percent of the membership shall be consumers.
   (B) Twenty percent of the membership shall be child care
providers, reflective of the range of child care providers in the
county.
   (C) Twenty percent of the membership shall be public agency
representatives.
   (D) Twenty percent of the membership shall be community
representatives, who shall not be child care providers or agencies
that contract with the department to provide child care and
development services.
   (E) The remaining 20 percent shall be appointed at the discretion
of the appointing agencies.
   (2) The board of supervisors and the superintendent of schools
shall each appoint one-half of the members.  In the case of uneven
membership, both appointing entities shall agree on the odd-numbered
appointee.
   (d) Every effort shall be made to ensure that the ethnic, racial,
and geographic composition of the local planning council is
reflective of the ethnic, racial, and geographic distribution of the
population of the county.
   (e) The board of supervisors and county superintendent of schools
may designate an existing child care planning council or coordinated
child and family services council as the local planning council, as
long as it has or can achieve the representation set forth in this
section.
   8499.5.  (a) The department shall allocate funds for purposes of
this chapter, on a county-by-county basis, within all counties, based
on the amount of state and federal funding that is available.  The
department shall annually notify the local child care and development
planning council in each county of the amount to be allocated within
its county, and the timeline for these allocations.
   (b) Upon approval by the county board of supervisors and the
county superintendent of schools, each local planning council shall
submit to the department the local priorities it has identified.  The
priorities shall be identified in a manner that ensures that all
child care needs in the county are met to the greatest extent
possible.  To accomplish this, each local planning council shall do
all of the following:
   (1) Elect a chair and select a staff.
   (2) Conduct an assessment of child care needs in the county no
less than once every five years.  The needs assessment shall take
into consideration all of the following:
   (A) The needs of families eligible for subsidized child care.
   (B) The needs of families not eligible for subsidized child care.

   (C) The waiting lists for programs funded by the department and
the State Department of Social Services.
   (D) The need for child care for children who have been abused or
neglected or are at risk of abuse or neglect.
   (E) The number of children receiving public assistance.
   (F) Family income among families with preschool or schoolage
children.
   (G) The number of children of migrant workers.
   (H) The number of children with special needs.
   (I) The number of children from all identifiable linguistic and
cultural backgrounds.
   (J) Special needs based on geographic considerations, including
rural areas.
   (K) The age of children needing services.
   (L) Any other factors deemed appropriate by the local planning
council.
   (3) Document information gathered during the needs assessment
which shall include, but need not be limited to, data on supply,
demand, cost, and market rates for each category of child care in the
county.
   (4) Encourage public input in the development of the priorities.
Opportunities for public input shall include at least one public
hearing during which members of the public can comment on the
proposed priorities.
   (5) Prepare a comprehensive countywide child care plan designed to
mobilize public and private resources to address identified needs.
   (6) Conduct a periodic review of child care programs funded by the
department and the Department of Social Services to determine if
identified priorities are being met.
   (7) Collaborate with subsidized and nonsubsidized child care
providers, county welfare departments and human service agencies, job
training programs, employers, integrated child and family service
councils, parent organizations, and other interested parties to
foster partnerships designed to meet local child care needs.
   (8) Design a system to consolidate local child care waiting lists.

   (9) Coordinate part-day programs, including state preschool and
Head Start, with other child care to provide full-day child care.
   (10) Submit the results of the needs assessment and the local
priorities identified by the local planning council to the board of
supervisors and the county superintendent for approval before
submitting them to the department.
   (11) Review and comment on proposals submitted to the department
that concern child care to be provided within the geographic area
covered by the local planning council.  These comments shall in no
way be binding on the department in the determination of programs to
be funded.
   (12) Identify at least one, but no more than two persons from the
local planning council, one selected by the board of supervisors and
one selected by the county superintendent if two persons are
identified, or one person selected by both appointing agencies, to
serve as part of the department team that reviews and scores
proposals for the provision of services funded through contracts with
the department.  Local planning council representatives shall not
review and score proposals from the geographic area covered by their
own local planning council.
   (13) Develop and implement a training plan to provide increased
efficiency, productivity, and facilitation of local planning council
meetings.  This may include developing a training manual, hiring
facilitators, and identifying strategies to meet the objectives of
the council.
   (14) Provide consultation to the State Department of Education and
the State Department of Social Services regarding the development of
a single application and intake form for all federal and state
subsidized child care and development services.
   (c) No member of a local planning council shall participate in a
vote if he or she has a proprietary interest in the outcome of the
matter being voted upon.
   (d) The department shall, in conjunction with the Department of
Social Services and all appropriate statewide agencies and
associations, develop guidelines for use by local planning councils
to assist them in conducting needs assessments that are reliable and
accurate.  The guidelines shall include acceptable sources of
demographic and child care data, and methodologies for assessing
child care supply and demand, including the supply and demand for
license-exempt child care.
   (e) The department shall allocate funding within each county in
accordance with the priorities identified by the local planning
council of that county and submitted to the department pursuant to
this section, unless the priorities do not meet the requirements of
state or federal law.
   8499.7.  It is the intent of the Legislature that any additional
conditions imposed upon local planning councils shall be funded from
available federal funds to the greatest extent legally possible.
  SEC. 14.  Chapter 2.5 (commencing with Section 8499) of Part 6 of
the Education Code is repealed.
  SEC. 15.  Chapter 2 (commencing with Section 10200) is added to
Part 7 of the Education Code, to read:

      CHAPTER 2.  CALWORKS RECIPIENTS:  INSTRUCTIONAL AND JOB
TRAINING PLAN

   10200.  (a) As used in this chapter, "CalWORKs recipient" means a
parent or caretaker relative receiving aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program.
   (b) The county superintendent of schools, the local community
college districts, the local school districts that provide adult
education, and the directors of other job training programs in the
county shall develop a plan by March 31, 1998, that provides for
instructional and job training services to CalWORKs recipients within
that county.  The plan shall be approved by the county welfare
director.  The plan shall include all of the following:
   (1) An estimate of the number of CalWORKs recipients in that
county that are expected to require education and job training
services and a description of the types of services necessary to meet
their needs, pursuant to the county plan required by Section 10530
of the Welfare and Institutions Code.

(2) An estimate of the number of spaces available in short-term
classes that are offered as part of the regular course schedule at
educational institutions that may be used by CalWORKs recipients in
that county.
   (3) An estimate of the number of full-time equivalent students and
average daily attendance rates that will be generated by CalWORKs
recipients at each institution in excess of the number of recipients
attending these institutions in the 1996-97 fiscal year.
   (4) Proposals for expansion of services and course offerings that
are particularly suited for the needs of CalWORKs recipients.
   (5) An analysis of job demand and employment opportunities within
that county using currently available, up-to-date information, and an
analysis of how the courses and job training programs will assist
CalWORKs recipients in securing employment.
   (6) A description of outreach efforts that will be undertaken to
identify job opportunities for CalWORKs recipients who participate in
instruction and job training courses.
  SEC. 16.  Section 72620.5 is added to the Education Code, to read:

   72620.5.  Commencing with the 1997-98 fiscal year, community
college districts, to the extent that funding is provided in the
annual Budget Act, may provide counseling and matriculation services
for students enrolled in credit courses and students enrolled in
noncredit courses, according to a welfare-to-work plan as provided in
Section 11325.21 of the Welfare and Institutions Code.
  SEC. 17.  Article 5 (commencing with Section 79200) is added to
Chapter 9 of Part 48 of the Education Code, to read:

      Article 5.  Curriculum Development for CalWORKs Recipients

   79200.  As used in this article, "CalWORKs recipient" means a
recipient of aid under Chapter 2 (commencing with Section 11200) of
Part 3 of Division 9 of the Welfare and Institutions Code or any
successor program.
   79201.  It is the intent of the Legislature in enacting this
article to assist CalWORKs recipients prepare for employment.
   79202.  To the extent that funding is provided in the annual
Budget Act, a community college shall receive funding for educational
services provided to CalWORKs recipients based on the number of
CalWORKs recipients that are enrolled at the community college and
the scope and number of programs that the college plans to offer to
assist CalWORKs recipients obtain employment.  Prior to receiving
funding, a community college shall submit to the chancellor a Request
for Application which contains a plan for curriculum development or
redesign.  The plan shall include all of the following:
   (a) Evidence that the curriculum will prepare students for an
occupation that is in demand in the local labor market or that is in
an emerging field that has documented employment potential.
   (b) Participation by the county welfare department to establish
that the programs being developed or redesigned will provide CalWORKs
recipients with the training and experience necessary to secure
employment.
   (c) Evidence of collaboration with local partners, such as
employers, private industry councils, regional occupational programs,
adult education providers, and affected counties in the development
and design of the curriculum.
   (d) Procedures to monitor CalWORKs recipients who complete the new
curricula and transition into employment.
   (e) A description of new courses for CalWORKs recipients that are
designed to aid recipients with job-related advancement.
   79203.  To the extent that funding is provided in the annual
Budget Act, funds received by a community college for curriculum
development or redesign for CalWORKs recipients may be expended for
all of the following purposes:
   (a) To develop or redesign vocational curricula for CalWORKs
recipients so that courses may be offered as part of a short-term
intensive program, including Open Entry and Open Exit programs.
   (b) To link CalWORKs courses to job placement through work
experience and internships.
   (c) To redesign basic education and ESL classes so that they may
be integrated with vocational training programs.
   (d) To expand the use of telecommunications in providing the new
curricula to CalWORKs recipients.
  SEC. 18.  Section 84759 is added to the Education Code, to read:
   84759.  (a) As used in this section, the following terms mean:
   (1) "CalWORKs recipient" means a recipient of aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code, or any successor program.
   (2) "Direct excess costs" means the fixed, variable, and one-time
costs associated with providing noncredit instructional services to
CalWORKs recipients, as determined by the chancellor's office.
   (b) Notwithstanding any other provision of law, a community
college district, to the extent funding is made available in the
annual Budget Act, shall receive funding for noncredit instruction
developed for and targeted to CalWORKs recipients, including funding
to offset the direct excess cost of providing noncredit instruction
to CalWORKs recipients when the cost of providing a specific course
offering exceeds the average cost of noncredit instruction.
  SEC. 19.  Chapter 1.12 (commencing with Section 15365.50) is added
to Part 6.7 of Division 3 of Title 2 of the Government Code, to read:


      CHAPTER 1.12.  JOB CREATION INVESTMENT FUND

   15365.50.  (a) There is hereby created in the State Treasury the
Job Creation Investment Fund, to be administered by the Trade and
Commerce Agency for the purpose of allocating funds to be used for
job creation activities that will provide employment for recipients
of aid under Chapter 2 (commencing with Section 11200) of Part 3 of
Division 9 of the Welfare and Institutions Code who are moving into
the workforce.
   (b) It is the intent of the Legislature in enacting this chapter
to begin to link economic development activities to welfare reform
for the purpose of job creation.  The initial year of the program
provided for in this chapter shall be focused on providing local
communities with seed money to maximize and target effective job
creation models throughout the state, as quickly as possible, in
order to assist in securing new private, unsubsidized employment for
up to 500,000 persons receiving CalWORKs benefits.
   (c) The Trade and Commerce Agency shall serve as the state agency
responsible for coordinating economic development activities as they
relate to welfare reform.
   (d) Funds shall be deposited in the Job Creation Investment Fund
by appropriation in the annual Budget Act.
   15365.51.  As used in this chapter, unless the context otherwise
indicates:
   (a) "Agency" means the Trade and Commerce Agency.
   (b) "Fund" means the Job Creation Investment Fund.
   (c) "Applicant" means a county or county joint powers authority
consisting solely of counties.
   (d) "Recipient" means a county or county joint powers authority
consisting solely of counties.
   15365.52.  The agency shall provide lead agency responsibility for
coordinating state policies and regulations to enhance and
facilitate job creation for recipients of aid under Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code based on local job creation plans.
   15365.53.  (a) The fund is intended to provide flexible funding
for local job creation initiatives whenever possible, using, rather
than duplicating, existing resources.  Notwithstanding Section 13340
of the Government Code, the fund is hereby continuously appropriated
without regard to fiscal years for the purposes of this chapter.  The
Treasurer shall invest moneys not needed to meet current obligations
incurred pursuant to this chapter.
   (b) Moneys in the fund shall be used by a recipient to either
develop a strategic plan, in an amount not to exceed 50 percent of
the recipient's allocation or two hundred fifty thousand dollars
($250,000), whichever is less, or to implement initiatives consistent
with the plan, including, but not limited to, all of the following:

   (1) Planning and coordination activities that lead to better local
linkages between strategic economic planning and development of
education and training curricula relevant to jobs that will exist
locally.
   (2) Packaging economic development and community development
projects in a manner that can utilize capital financing mechanisms,
such as the California Infrastructure and Economic Bank provided for
pursuant to Chapter 2 (commencing with Section 63020) of Division 1
of Title 6.7.
   (3) Development of localized labor market information that enables
placement of recipients of and under Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code in currently available, as well as future, jobs.
   (4) Assistance in developing economic development strategies for
business expansion and location opportunities, including workforce
preparation and other local training services for employees.
   (5) Targeting economic development and job creation activities to
emerging or growth industry clusters in the local area.
   (6) Expansion of technical assistance to small business and
manufacturers for activities, such as those designed to make business
operations more economical or competitive, while providing jobs for
welfare recipients.
   (7) Permit streamlining services.
   (8) One-stop centers for small business financing to coordinate
funding resources for business expansion.
   (9) Establishment of small business incubators to support the use
of intermediary employers or microenterprise activities.
   (10) Establishment and support of neighborhood development
corporations pursuant to Section 15365.54.
   (11) Matching of seed capital funds with private capital for
community development projects.
   (c) Interest earnings may be used by the agency to offset
administrative costs.
   15365.54.  (a) As used in this chapter "neighborhood development
corporation (NDC)" means a private, nonprofit organization that meets
all of the following criteria:
   (1) Is organized under the California Nonprofit Public Benefit
Corporation Law.
   (2) Has obtained a tax-exempt ruling from the Internal Revenue
Service under Section 501(c)(3) of the federal Internal Revenue Code,
and the Franchise Tax Board under Section 23701d of the Revenue and
Taxation Code.
   (3) Has its principal office in a distressed area.
   (4) Has residents of the neighborhood serving as at least one-half
of the members of the corporation's board of directors who have
demonstrated constructive contributions to the improvement of
conditions in the neighborhood.
   (5) Has established a commitment to offer services to the
neighborhood to further its economic growth and independence.
   (b) Any neighborhood development corporation funded under this
chapter shall act to improve economic conditions in the neighborhood
and assist in furthering access of neighborhood residents to jobs by
providing directly or by providing a more accessible location for any
of the following array of services as appropriate within the
resources available to further the purposes of this chapter.  To the
extent possible these services shall be provided through existing
agencies, programs, and service delivery arrangements.  These
services shall include, but not be limited to:
   (1) Employment and career counseling, job placement, adult
education and vocational training services, utilizing to the maximum
extent feasible CalWORKs, private industry councils, Job Training and
Partnership Act, adult education, community college, and regional
occupation programs.  In addition, they may utilize the California
Mentoring Initiative resources, private business training and
employment programs, Vista and Americorps resources, Community
Services Block Grants, and public employment and vocational
rehabilitation agencies.
   (2) Economic development and job creation activities designed to
attract private capital into the community to provide technical or
financial assistance to existing neighborhood businesses, to mobilize
the resources of government, private business sector, private
foundations, civic institutions, institutions of the faith community,
and universities in order to target and concentrate economic
development strategies to improve the economic conditions of the
neighborhood.  The corporation may provide for the development of
business loan and marketing programs in concert with state and local
public and private financing programs to further the purposes of this
chapter.
   15365.55.  For the purposes of moneys appropriated to the fund, in
its first year of operation, the agency shall operate the program in
the following manner:
   (a) The agency shall issue guidelines for local job creation plans
for CalWORKs participants to counties within 30 days after the
operative date of this chapter or November 1, 1997, whichever is
later.  These guidelines shall include only minimum plan
requirements, and shall encourage local creativity and flexibility in
developing local employment opportunities for welfare recipients or
those at risk of becoming welfare recipients.
   (b) County boards of supervisors or county joint powers
authorities shall be the applicants for and the recipients of moneys
allocated pursuant to this chapter.  Each county board of supervisors
that elects to apply for job creation funds shall appoint or
designate a planning group to prepare a grant application and county
resolution.  The application shall include the scope of work, a
timeline, a budget, and performance standards.  The resolution shall
be approved by the board of supervisors and submitted to the agency
within 120 days after the guidelines are issued.
   (c) If a county board of supervisors does not submit its
resolution within 120 days, and grant application within 180 days,
that county's allocation shall become available to all counties on a
competitive basis. These grants shall be awarded based on criteria
developed by the agency.
   (d) Upon receipt of a grant application and county resolution the
agency shall, within 60 days, approve the application and allocate
job creation funds to the board of supervisors or notify the county
of additional specific information needed to gain plan approval.
Once any additional information is provided, the agency shall respond
back to the county within 30 days.
   (e) Subject to subdivision (f), moneys shall be distributed so as
to ensure that each county receives not less than fifty thousand
dollars ($50,000).  The remainder shall be distributed to counties
based on a formula that gives two-thirds weight, when compared to
1996 average monthly statewide totals, to the relative number of
adult recipients of aid under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code
in that county, and one-third weight, when compared to 1996 average
monthly statewide totals, to the relative number of unemployed
persons in the county.
   (f) Each county shall receive a minimum of fifty thousand dollars
($50,000).  Each county shall be required to identify a comprehensive
group of local stakeholders to either develop a strategic plan or
initiate job creation activities that can utilize, to the maximum
extent possible, existing resources to target job creation
opportunities for recipients of aid under Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code in the county.  The stakeholders shall include, but
not be limited to, local governments, including the county welfare
department, private business associations and employer groups,
community based organizations, community development corporations,
economic development organizations, the nonprofit sector, advocates
for recipients and low-income families, and the local workforce
preparation community.  Whenever possible, existing local
partnerships in which a significant number of the stakeholders are
represented may be expanded to serve as the local welfare-to-work job
creation task force.
   (g) The agency shall disburse to each county 25 percent of the
county's allocation under this section upon execution of a completed
grant agreement. The resolution or grant application shall do at
least the following:
   (1) Designate a lead local economic development agency to act as
the coordinator of the Welfare-to-Work Job Creation Task Force.
Whenever possible, this lead agency shall be an existing public or
nonprofit agency with a proven record of expertise and
accomplishments in economic or community development.
   (2) Provide an outline and timetable for the development of a
strategic plan for the implementation of initiatives for recipients
of aid under Chapter 2 (commencing with Section 11200) of Part 3 of
Division 9 of the Welfare and Institutions Code.
   (3) Identify the stakeholders who will participate in the public
process of strategic planning.
   (h) The agency shall disburse 50 percent of the county's
allocation under this section on a cost reimbursement basis for work
performed pursuant to the grant agreement.  The remainder of the
county's allocation shall be disbursed when the agency has verified
that job creation programs have been implemented that can reasonably
lead to the creation of a substantial number of jobs needed for
employment of CalWORKs recipients and when the terms of the grant
agreement have been met.
   15365.56.  By April 1, 1998, or April of the first year in which
this program is in operation, whichever is later, the agency shall
compile the local strategic plans and report to the Governor and the
chairs of the Assembly Committee on Budget and the Senate Committee
on Budget and Fiscal Review and the chairs of the Senate Health and
Human Services Committee and the Assembly Human Services Committee on
the extent to which local plans have included each of the following:

   (a) Analyses of the local economy and labor market to determine
the number of net new jobs likely to be needed for the CalWORKs
program, over the following five years.
   (b) Inventories of local economic development activities and
programs to determine what practices and procedures have proven
successful in assisting employers to hire low-income workers.
   (c) Models consistent with the county's general plan for
welfare-to-work for local projects to create jobs for welfare
clients.
   (d) Regional strategic planning to more effectively target
resources, such as joint powers agreements among rural counties or
subcounty regional planning in very large counties.
   (e) Recommendations for additional state actions to facilitate the
success of these local plans for job creation.
   15365.57.  All moneys in the fund that have not been disbursed to
recipients by June 30, 2002, shall revert to the General Fund.
   15365.58.  The agency shall adopt regulations to implement this
chapter.  The agency may adopt these regulations as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, and
for purposes of that chapter, including Section 11349.6, the
adoption of the regulations shall be considered by the Office of
Administrative Law to be necessary for the immediate preservation of
the public peace, health and safety, and general welfare.
Notwithstanding subdivision (e) of Section 11346.1, the regulations
adopted pursuant to this section shall be repealed within 180 days
after their effective date, unless the agency complies with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, as provided for in subdivision (e) of
Section 11346.1.
   15365.59.  This chapter shall become inoperative on July 1, 2002,
and, as of January 1, 2003, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2003, deletes
or extends the dates on which it becomes inoperative and is
repealed.
  SEC. 20.  Section 1597.36 is added to the Health and Safety Code,
to read:
   1597.36.  The department shall provide written documentation to
providers of the need for repairs, renovations, or additions when
requested for an application for a loan guarantee pursuant to
subdivision (d) of Section 8277.6 of the Education Code whenever the
repairs, renovations, or additions are required by the department in
order for the licensee to maintain or obtain a license for more than
six children.
  SEC. 21.  Chapter 17 (commencing with Section 50897) is added to
Part 2 of Division 31 of the Health and Safety Code, to read:

      CHAPTER 17.  CALIFORNIA SAVINGS AND ASSET PROJECT

   50897.  If this chapter becomes operative pursuant to Section
50897.1, there shall be established a program that is consistent with
the requirements of federal law, to be known as the California
Savings and Asset Project.  The Governor shall designate the agency
or department that shall administer the project.
   50897.1.  This chapter shall become operative only if the state
receives funds appropriated from a federal source other than the
block grant of funds to this state under the federal Temporary
Assistance for Needy Families program contained in Part A (commencing
with Section 601) of Subchapter 4 of Chapter 7 of Title 42 of the
United States Code, for the specific stated purpose of the
establishment of an individual development account project.
   50897.3.  Any eligible person may establish an individual
development account under this chapter through earned or unearned
income of the individual or through funds made available for that
purpose by public entities or private organizations for any of the
following purposes:
   (a) Direct payment for tuition or fees related to education.
   (b) Qualified acquisition costs for a qualified principal
residence.
   (c) Transfer to a business capitalization account, established in
a federally insured financial institution.  Funds in a business
capitalization account shall be exclusively for qualified business
capitalization expenses consistent with a qualified plan.
   (d) Direct payment to a qualified job training program for
qualified job training expenses.
  SEC. 22.  Section 99155.1 is added to the Public Utilities Code, to
read:
   99155.1.  (a) There shall be close coordination between local
transit providers and county welfare departments in order to ensure
that transportation moneys available for purposes of assisting
recipients of aid under Chapter 2 (commencing with Section 11200) of
Part 3 of Division 9 of the Welfare and Institutions Code are
expended efficiently for the benefit of that population.
   (b) In areas where public transit service is available, local
transit providers shall consider giving priority in the use of
transit funds to the enhancement of public transportation services
for welfare-to-work purposes.
   (c) In areas where public transit services are unavailable, local
transit providers shall consider giving priority to transportation
alternatives, such as, but not limited to, subsidies or vouchers, van
pools, and contract paratransit operations, in order to promote
welfare-to-work purposes.
                               SEC. 23.  Section 1611.5 of the
Unemployment Insurance Code is repealed.  
   1611.5.  (a) Notwithstanding Section 1611, the Legislature may
appropriate from the Employment Training Fund up to twenty million
dollars ($20,000,000) in the Budget Act of 1994, twenty-two million
seven hundred thirty-five thousand dollars ($22,735,000) in the
Budget Act of 1995, and twenty million dollars ($20,000,000) in the
Budget Act of 1996 for purposes of funding the local assistance
portion of the nonfederal share of cost in the Greater Avenues for
Independence (GAIN) program, provided for pursuant to Article 3.2
(commencing with Section 11320) of Chapter 2 of Part 3 of Division 9
of the Welfare and Institutions Code, as administered by the State
Department of Social Services.
   (b) Notwithstanding any other provision of law, the panel may
execute training contracts for up to twenty million dollars
($20,000,000) in excess of the amounts appropriated by Item
5100-001-0514 of the Budget Act of 1996.   
  SEC. 24.  Section 1611.5 is added to the Unemployment Insurance
Code, to read:
   1611.5.  (a) Notwithstanding Section 1611, the Legislature may
appropriate from the Employment Training Fund twenty million dollars
($20,000,000) in the Budget Act of 1997 and twenty million dollars
($20,000,000) each year thereafter for training programs designed for
workers who are current or recent recipients of benefits under the
CalWORKs program pursuant to Section 10214.7.
   (b) Funds available pursuant to the Budget Act of 1997 pursuant to
this section that are not encumbered in the 1997-98 fiscal year may,
upon appropriation by the Legislature, be carried over into the
1998-99 fiscal year for expenditures consistent with Section 10214.7.

  SEC. 25.  Section 10214.7 is added to the Unemployment Insurance
Code, to read:
   10214.7.  The panel shall allocate funds available in the annual
Budget Act for training programs designed for individuals who are
currently working and receiving benefits under Chapter 2 (commencing
with Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code or who are currently working and have received
CalWORKs benefits within one year of the commencement of the training
program.
   (a) It is the intent of the Legislature in providing authority for
these training programs that the panel allocate these funds in a
manner consistent with the objectives of this chapter as provided in
Section 10200.
   (b) Notwithstanding any other provisions of this chapter, the
eligibility criteria for individuals trained under this section shall
be employment with an eligible employer as defined in subdivision
(a) of Section 10201 and:
   (1) Receipt of CalWORKs benefits at the time training begins, or
   (2) Receipt of CalWORKs benefits within one year of the time
training commenced.
   (c) For purposes of this section, the panel may waive, if
necessary, any of the following:
   (1) The employer eligibility criteria outlined in paragraph (1) of
subdivision (a) of Section 10200.
   (2) The minimum training wage requirements pursuant to subdivision
(g) of Section 10201.
   (3) The employment retention provisions specified in subdivision
(f) of Section 10209 and instead require that the trainee has been
retained in employment for a minimum of 90 days out of 120
consecutive days after the end of training with no more than three
employers.
   (d) Notwithstanding any other provisions of this chapter, the
panel shall consider proposals that use innovative strategies and
training options to enable current and prior CalWORKs recipients and
eligibles to retain employment, including, but not limited to,
projects that provide basic skills training.
   (e) The panel shall adopt administrative procedures for approving
and administering contracts under this section to expedite contracts,
minimize barriers to completion of training, and facilitate the
training of single trainees and small groups of trainees from one
worksite.
  SEC. 26.  Chapter 6 (commencing with Section 11010) is added to
Part 1 of Division 3 of the Unemployment Insurance Code, to read:

      CHAPTER 6.  REGIONAL WORKFORCE PREPARATION AND ECONOMIC
DEVELOPMENT ACT

   11010.  (a) The Legislature finds and declares the following:
   (1) California must have a world class system of education and
training linked to economic development in order to meet the demands
of global economic competition.
   (2) The California Economic Strategy Panel determined that
California's economy is undergoing a dramatic transformation whereby
California is in an established leadership position with respect to a
number of emerging industries representing a new economy of the 21st
Century, and that education and workforce preparation are critical
to the growth and competitiveness of California's economy.
   (3) California's workforce preparation programs, including job
training, job placement, and education, spend over six billion
dollars ($6,000,000,000) annually serving 6,700,000 students,
displaced and unemployed workers, welfare recipients, and incumbent
workers.
   (4) At least 22 state programs and many federal and local programs
provide these workforce preparation services.
   (5) With the increasing demand to educate and train the youth and
adults in this state with the skills necessary to obtain and retain
employment especially in the industries essential for its economic
growth, California needs to maximize the effective use of resources
for its workforce preparation programs to create a more coherent,
comprehensive, accountable, and customer-focused system.
   (6) An effective workforce preparation system is necessary for
California to meet the time limit and workforce preparation
requirements of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193).
   (7) In order to accomplish this, the public and private sector
entities responsible for economic development, education, and
workforce preparation must collaborate at the state and local levels.

   (8) This collaboration must be compatible with the existing
missions and governance structures of all entities involved.
   (9) The major objective of this act is the integration of existing
local and regional partnerships that support initiatives in
education reform, workforce preparation, and economic development.
   (10) In order to promote this collaboration, the Secretary of the
Health and Welfare Agency, the Secretary of the Trade and Commerce
Agency, the Chancellor of the California Community Colleges, and the
Superintendent of Public Instruction shall, in consultation with
local stakeholders and customers, collaborate in the development of a
state workforce development system and shall encourage and support
local partners to develop regional workforce collaboratives.
   (b) The Legislature hereby enacts the Regional Workforce
Preparation and Economic Development Act to demonstrate how, through
the collaboration of state and local resources, education, workforce
preparation and economic development services can be delivered to
clients in a more responsive, integrated, and effective manner.
   11011.  (a) On or before April 1, 1998, the Secretary of the
Health and Welfare Agency, the Secretary of the Trade and Commerce
Agency, the Chancellor of the California Community Colleges with the
consent of the Board of Governors, and the Superintendent of Public
Instruction, with the consent of the State Board of Education, shall
enter into a memorandum of understanding to develop and maintain a
plan including a schedule to do the following:
   (1) Develop an integrated state workforce development plan for
service delivery, resource investment, and performance measures.  The
plan shall be developed through a collaborative process that shall
include substantial local input.
   (2) Initiate a competitive process to select a minimum of five
regional education, workforce preparation, and economic development
collaboratives, known as regional collaboratives, that will receive
financial and program incentives to develop local partnerships to
maximize the delivery of employment, training, and education
services.  These partnerships shall collaborate in the development of
shared systems to improve their efficiency and effectiveness in
delivering workforce development services.
   (3) Identify new and redirected resources, federal and state
waivers, and legislative changes necessary to enhance the
effectiveness of regional collaboratives.
   (b) Regional collaboratives shall have representation from the
following public and private entities:
   (1) The Employment Development Department.
   (2) The local Job Training Partnership Act administrative entity.

   (3) Community college districts.
   (4) Local school districts, including those that provide adult
education and regional occupational centers or programs.
   (5) Regional occupational centers serving adults.
   (6) Entities administering local public assistance welfare-to-work
programs.
   (7) Local economic development organizations.
   (8) The private sector, including both business and labor.
   In addition, the competitive selection process shall emphasize the
expectation that these regional collaboratives will have broad
representation of all public, private, and nonprofit agencies that
have an interest in education, economic development, welfare to work,
and workforce development.
   (c) Regional collaboratives shall be selected and shall receive
financial and program incentives effective July 1, 1998.
   (d) From existing state and federal funds available for
expenditure for the purposes of this section, the state partners
shall identify five million dollars ($5,000,000) per year for each of
three years for distribution to a minimum of five regional
collaboratives, in order to create systemic change that results in
increased collaboration and service delivery within each region.
   11012.  Regional collaboratives shall do the following:
   (a) Define regions consistent with labor market and economic areas
giving consideration to education, employment, and training service
areas.
   (b) Promote effective service delivery through integration of
existing partnerships in economic development, employment and
training services, welfare reform, and school reform into one
collaborative partnership and process consistent with the goals of
California's One-Stop Career Center System.
   (c) Set measurable local program goals that meet the needs of
various client groups as determined by both historical service levels
and present needs, and that demonstrate the extent to which outcomes
will improve through collaboration.
   (d) Provide for an evaluation of the pilot program.
   11013.  (a) State partners shall jointly manage the regional
collaborative project with designated staff and shall use existing
resources available for this purpose.
   (b) State partners shall identify in the memorandum of
understanding existing funds that are available to support the
funding of regional workforce collaboratives.  The Secretary of the
Health and Welfare Agency shall identify existing funds from sources
including, but not limited to, the federal Job Training Partnership
Act, the One-Stop Career Center grant, the School to Career grant,
and the federal Wagner-Peyser Act.  The Chancellor of the California
Community Colleges, with the consent of the Board of Governors, shall
identify funds from sources including, but not limited to, the
federal Carl D. Perkins Vocational Education Act and state economic
development funds.  The Superintendent of Public Instruction, with
the consent of the State Board of Education, shall identify funds
from sources including, but not limited to, the federal Carl D.
Perkins Vocational Education Act and the federal Improving America's
Schools Act of 1994.
   (c) The state partners shall pursue waivers from the appropriate
federal agencies to promote local flexibility and remove obstacles to
integrated service delivery for selected regional collaboratives.
   11014.  The state partners shall prepare an annual progress report
on March 15 of each year and a final report by July 1, 2001, to be
submitted to the Legislature, which shall consist of an analysis of
the project, recommendations for expansion of regional
collaboratives, and recommendations for legislative changes to
promote the development of regional collaboratives.
  SEC. 27.  Section 15003.4 is added to the Unemployment Insurance
Code, to read:
   15003.4.  It is the intent of the Legislature that, beginning
January 1, 1998, welfare recipients shall be served with federal Job
Training Partnership Act funds under Title II and Title III of that
act to the maximum extent permitted under federal law within each
service delivery area.
  SEC. 28.  Section 15003.5 is added to the Unemployment Insurance
Code, to read:
   15003.5.  It is the intent of the Legislature that the Governor
request a waiver from the United States Department of Labor on
restrictions under regulations adopted pursuant to the federal Job
Training Partnership Act that prevent the provision of training and
post termination services for the year after placement on a job and
prevent the use of stand-alone job search, job club, job search
assistance, and work experience activities, as appropriate, to
prepare individuals for employment.
  SEC. 29.  Division 9 (commencing with Section 17000) is added to
the Unemployment Insurance Code, to read:

      DIVISION 9.  CALWORKS PROGRAM:  JOB CREATION

   17000.  As used in this division "department" means the Employment
Development Department.
   17001.  Consistent with the ongoing relationships that the
department maintains with private sector employers, the department
shall encourage and organize the involvement of private sector
employers and other community leaders in creating the necessary jobs
for recipients of aid under Chapter 2 (commencing with Section 11200)
of Part 3 of Division 9 of the Welfare and Institutions Code to move
from welfare into unsubsidized employment.
   17002.  In carrying out the provisions of this division, the
department shall conduct activities including, but not limited to,
the following:
   (a) Establish a council of corporate executives consisting of 13
members drawn from retired or former chief executive officers of
major California corporations.  Seven members shall be appointed by
the Governor, three shall be appointed by the Senate Committee on
Rules, and three shall be appointed by the Speaker of the Assembly.
Appointments shall be made no later than January 31, 1998.  This
council shall provide ongoing advice and assistance to the department
in recruiting private employers to hire recipients of aid.
   (b) In consultation with the council described in subdivision (a),
establish a clearinghouse for information on the Internet or other
forms of toll-free communication for private sector employers to
obtain information about assistance and resources for hiring CalWORKs
recipients and to register their pledges to assist the state in
finding the jobs necessary to meet the local welfare-to-work goals
throughout the state.
   (c) In consultation with the council described in subdivision (a),
provide a forum for leaders in the faith-based communities, as well
as other civic leaders, to assist the state in promoting
welfare-to-work goals as part of the civic duty of their
constituents.
   (d) Report to the Legislature during the annual budget process
regarding the implementation of this division and the results
achieved.
  SEC. 30.  Section 10063 is added to the Welfare and Institutions
Code, to read:
   10063.  (a) Notwithstanding any other provision of law, the name
of the program provided for pursuant to Chapter 2 (commencing with
Section 11200) is hereby changed to the California Work Opportunity
and Responsibility to Kids program, referred to as CalWORKs.
   (b) Any reference to the Aid to Families with Dependent Children
program Family Group and Unemployment program and the Greater Avenues
for Independence program shall be deemed to refer to the CalWORKs
program.
  SEC. 31.  Chapter 3 (commencing with Section 10065) is added to
Part 1 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 3.  ELECTRONIC BENEFITS TRANSFER ACT
      Article 1.  General

   10065.  The Legislature finds and declares both of the following:

   (a) The development of incompatible systems for electronic
benefits transfer will create significant hardships on recipients of
public social services and businesses that accept electronic
transactions as payment for goods and services.
   (b) The goals of electronic benefits transfer are to reduce the
cost of delivering benefits to recipients, to ensure that all systems
within California are compatible, and to afford public social
services recipients the opportunity to better and more securely
manage their financial affairs.
   10066.  For purposes of this chapter, the following definitions
shall apply:
   (a) "Committee" means the committee created pursuant to this
chapter.
   (b) "Benefits" means financial and food assistance provided to, or
on behalf of, those Californians who, because of their economic
circumstances or social condition, are in need thereof, and may
benefit thereby.
   (c) "System" means the electronic benefits transfer system
developed pursuant to this chapter.

      Article 2.  Electronic Benefits Transfer Committee

   10067.  The Electronic Benefits Transfer Committee is hereby
created.  The committee shall remain in existence until January 1,
2003.
   10068.  The committee shall consist of the Director of the Health
and Welfare Agency Data Center, who shall be the chair of the
committee, the Director of Social Services, the Director of Health
Services, the Director of Information Technology, the Controller, the
Treasurer, a representative of the California State Association of
Counties, one member appointed by the Speaker of the Assembly, and
one member appointed by the Senate Committee on Rules. The committee
shall provide for the participation of a technical advisory group
comprised of representatives from the California Association of
County Treasurers and Tax Collectors, the County Welfare Directors
Association, the California Grocer's Association, the California
Retailer's Association, the California Bankers Association, and
agencies, organizations, and representatives of individuals who will
use or be affected by an electronic benefits transfer system.  A
company or individual that participates in the committee or the
advisory group shall not be eligible to bid for the provision of the
electronic benefits transfer system.
   10069.  The committee shall advise the department on the
development and implementation of a statewide electronic benefits
transfer system, and shall provide advice concerning the request for
proposal.  The system shall have the capability to deliver food
stamps and, upon the election of the county, benefits under Chapter 2
(commencing with Section 11200) of Part 3. The system may also be
used, with the approval of the department, for the distribution of
other benefits.  Each electronic benefits transfer processor shall be
capable of implementing systems within nine months after the county
or counties contract with the electronic benefits processor.
   10070.  Not later than July 1, 1998, the state shall certify one
or more electronic benefits transfer processors as eligible to
contract with counties to develop and implement an electronic
benefits transfer system.
   10071.  Any benefits provided to recipients under the department's
authority may be distributed through the electronic benefits
transfer system as long as the recipient has reasonable access to his
or her benefits.

      Article 3.  Systems Design

   10072.  The electronic benefits transfer system required by this
chapter shall be designed to do, but not be limited to, all of the
following:
   (a) To the extent permitted by federal law and the rules of the
program providing the benefits, recipients who are required to
receive their benefits using an electronic benefits transfer system
shall be permitted to gain access to the benefits in any part of the
state where electronic benefits transfers are accepted.  All
electronic benefits transfer systems in this state shall be designed
to allow recipients to gain access to their benefits by using every
other electronic benefits transfer system.
   (b) To the maximum extent feasible, electronic benefits transfer
systems shall be designed to be compatible with the electronic
benefits transfer systems in other states.
   (c) All reasonable measures shall be taken in order to ensure that
recipients have access to electronically issued benefits through
systems such as automated teller machines, point-of-sale devices, or
other devices that accept electronic benefits transfer transactions.

   (d) The system shall provide for reasonable access to benefits to
recipients who demonstrate an inability to use, an electronic
benefits transfer card or other aspect of the system because of
disability, language, lack of access, or other barrier.  These
alternative methods shall conform to the requirements of the
Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.),
including reasonable accommodations for recipients who, because of
physical or mental disabilities, are unable to operate or otherwise
make effective use of the electronic benefits transfer system.
   (e) The system shall permit a recipient the option to choose a
personal identification number, also known as a "pin" number, to
assist the recipient to remember his or her number in order to allow
access to benefits.  Whenever an institution, authorized
representative, or other third party not part of the recipient
household or assistance unit has been issued an electronic benefits
transfer card, either in lieu of, or in addition to, the recipient,
the third party shall have a separate card and personal
identification number.  At the option of the recipient, he or she may
designate whether restrictions apply to the third party's access to
the recipient's benefits.  At the option of the recipient head of
household or assistance unit, the county shall provide multiple
electronic benefits transfer cards to adult members enabling them to
access benefits.
   (f) The system shall have a 24-hour per day toll-free telephone
hotline for the reporting of lost or stolen cards and that will
provide recipients with information on how to have the card and
personal identification number replaced.
   (g) A recipient shall not incur any loss of benefits after he or
she has reported that his or her electronic benefits transfer card or
benefits have been lost or stolen.  The system shall provide for the
prompt replacement of lost or stolen electronic benefits transfer
cards and personal identification number.
   (h) Electronic benefits transfer system consumers shall be
informed on how to use electronic benefits transfer cards and how to
protect them from misuse.
   (i) Procedures shall be developed for error resolution.
   (j) No fee shall be charged by the state, a county, or an
electronic benefits processor certified by the state to retailers
participating in the electronic benefits transfer system.
                                                              (k)
Except for food stamp transactions, a recipient may be charged a fee,
not to exceed the amount allowed by applicable state and federal law
and customarily charged to other customers, for cash withdrawal
transactions that exceed four per month.

      Article 4.  Administration

   10073.  Notwithstanding Section 15204.2, the state shall pay 100
percent of the nonfederal share of costs of the electronic benefits
transfer system planning, procurement, development, implementation,
and conversion. The county shall pay its normal nonfederal costs
pursuant to Section 15204.2 for system maintenance and operation.
   10074.  Any county or group of counties shall contract with at
least one of the contracting electronic benefits transfer processors
certified under this chapter, and shall have the principal
responsibility to manage the operation of the electronic benefits
transfer system implemented by the county.
   10075.  Any county or group of counties may enter into a contract
with a participating electronic benefits transfer processor
independently, or may do so jointly with one or more counties.
   10076.  The director shall promptly seek any federal approvals
necessary for implementation of this chapter.  Any provision of this
chapter whose implementation requires any federal waiver or approval
shall become operative 120 days after receipt of the necessary
federal waiver or approval, and shall remain operative only for the
duration of the federal approval for its implementation.
   10077.  The State Department of Social Services may adopt
regulations to implement this act in accordance with the
Administrative Procedure Act, Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code.
The initial adoption of any emergency regulations by the department
to implement this chapter and one readoption of the initial
regulations shall be deemed to be an emergency and necessary for the
immediate preservation of the public peace, health and safety, or
general welfare.  The initial emergency regulations and the first
readoption of those regulations by the department shall be exempt
from review by the Office of Administrative Law. The emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and publication in the California Code of Regulations.
  SEC. 32.  Chapter 1.3 (commencing with Section 10530) is added to
Part 2 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 1.3.  COUNTY PLANS FOR CALWORKS

   10530.  It is the intent of the Legislature that, in developing
the plan required by this chapter, counties shall make an effort not
to duplicate planning processes that have already occurred within the
county, but rather to build upon, and incorporate where appropriate,
existing local plans that provide for a collaborative approach to
employment services, economic development, and family and children's
services.  These shall include, but are not limited to, county GAIN
plans developed prior to CalWORKs implementation, county plans
developed pursuant to Section 18987.3, economic development plans,
employment development plans, and plans intended to guide any other
local efforts relevant to CalWORKs implementation.
   10531.  Each county shall develop a plan consistent with state law
that describes how the county intends to deliver the full range of
activities and services necessary to move CalWORKs recipients from
welfare to work.  The plan shall be updated as needed.  The plan
shall describe:
   (a) How the county will collaborate with other public and private
agencies to provide for all necessary training, and support services.

   (b) The county's partnerships with the private sector, including
employers and employer associations, and how those partnerships will
identify jobs for CalWORKs program recipients.
   (c) Other means the county will use to identify local labor market
needs.
   (d) The range of welfare-to-work activities the county will offer
recipients and the identification of any allowable activities that
will not be offered.
   (e) The process the county will use to provide for the
availability of substance abuse and mental health treatment services.

   (f) The extent to which, and the manner in which, mental health
services will be available to recipients after the period specified
in subdivision (a) of Section 11454.
   (g) The process the county will use to provide for child care and
transportation services.
   (h) The county's community service plan.
   (i) How the county will provide training of county workers
responsible for working with CalWORKs recipients who are victims of
domestic violence.
   (j) The performance outcomes identified during the local planning
process that the county or other local agencies will track in order
to measure the extent to which the county's program meets locally
established objectives.
   (k) The means the county used to provide broad public input to the
development of the county's plan.
   (l) A budget that specifies the source and expenditures of funds
for the program.
   (m) How the county will assist families that are transitioning off
aid.
   (n) All necessary components of the job creation plan required by
Section 15365.55 of the Government Code in counties that choose to
implement the program described in Chapter 1.12 (commencing with
Section 15365.50) of part 6.7 of Division 3 of Title 2 of the
Government Code.
   (o) Other elements identified by the director, in consultation
with the steering committee under Section 10544.5, including elements
related to the performance outcomes listed in Sections 10540 and
10541.
   (p) How the county will comply with federal requirements of the
Temporary Assistance for Needy Families program (Part A (commencing
with Section 601) of Subchapter 4 of Chapter 7 of Title 42 of the
United States Code).
   10532.  The department and the counties shall implement the
provisions of the CalWORKs program in the following manner:
   (a) The department shall issue a planning allocation letter and
county plan instructions to the counties within 30 days of the
enactment of the CalWORKs program.
   (b) (1) Each county shall submit a plan for implementation of the
CalWORKs program within four months of the issuance of the planning
allocation letter by the department.  A county may begin
implementation of its plan upon submission of the plan to the
department or the effective date of the CalWORKs program, whichever
is later.
   (2) Within 30 days of receipt of a county plan, the department
shall either certify that the plan includes the description of the
elements required by Section 10531 and that the descriptions are
consistent with the requirements of state law and, to the extent
applicable, federal law or notify the county that the plan is not
complete or consistent stating the reasons therefor.
   (3) If a county is notified that its plan is not complete or
consistent, the county shall, within 30 days, resubmit a revised plan
to the department for certification.
   (c) (1) A county shall begin enrolling all new applicants for aid
under this chapter in the county's welfare-to-work program no later
than six months from the date of issuance of the planning allocation
letter references in subdivision (a) or two months after the
certification of the county plan, whichever is later.
   (2) A county shall enroll all recipients of aid under this chapter
who were receiving aid in the month prior to the implementation date
for new applicants specified in paragraph (1) no later than January
1, 1999.  For recipients under this paragraph, the time limit in
subdivision (a) of Section 11454 shall commence on the date the
recipient signs, or refuses to sign, a welfare-to-work plan.
   (d) Funds remaining at the end of the 1997-98 fiscal year or the
1998-99 fiscal year from the funds provided to a county in those
years pursuant to Section 15204.2 shall be available to a county
until July 1, 2000, and may be expended only for the purposes set
forth in Section 15204.2.
  SEC. 33.  Chapter 1.5 (commencing with Section 10540) is added to
Part 2 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 1.5.  PERFORMANCE OUTCOME INCENTIVES MONITORING

   10540.  (a) It is the intent of the Legislature to implement
Public Law 104-193 in such a manner as to do all of the following:
   (1) Reduce child poverty in the state.
   (2) Achieve the goals of Public Law 104-193, which include
reducing dependence of needy parents on government benefits by
promoting job preparation, work, and marriage; reducing
out-of-wedlock births; and encouraging the formation and maintenance
of two-parent families.
   (3) Meet the requirements of federal law.
   (b) It is further the intent of the Legislature to ensure that the
implementation of Public Law 104-193 does not result in
unanticipated outcomes that negatively affect child well-being, the
demand for county general assistance, or the number of families
affected by domestic violence.
   10540.5.  The department shall ensure that performance outcomes
are monitored at the state and county levels in order to do all of
the following:
   (a) Identify the extent to which the state and counties achieve
the goals of Public Law 104-193.
   (b) Identify the extent to which unanticipated negative outcomes
do or do not occur.
   (c) Meet the requirements of federal law.
   (d) Assist counties in tracking the effect of CalWORKs program
implementation on aided families and on local communities.
   (e) Assist counties, the Legislature, and state agencies in
determining what adjustments are required in the program.
   10541.  The department shall consult with experts in monitoring
and research, and representatives of counties, the Legislature, and
appropriate state agencies in the development and implementation of
the system of performance outcomes, which shall include, but are not
limited to, the following:
   (a) Success of welfare-to-work, including the rate of movement to
employment, earnings for CalWORKs recipients and those who have left
the CalWORKs program, and job retention rates.  This shall include
the extent to which recipients have obtained unsubsidized employment
in each of their years on aid.
   (b) Rates of child support payment and collection.
   (c) Child well-being, including entries into foster care, at-risk
births, school achievement, child poverty, and child abuse reports.
   (d) Changes in the demand for general assistance.
   (e) Supply, demand, and utilization of support services by
CalWORKs recipients, including child care, transportation, mental
health services, and substance abuse treatment.
   (f) The number of identified families affected by domestic
violence.
   10541.5.  The department, in consultation with experts in research
and program evaluation and representatives of counties, the
Legislature, and appropriate state agencies, shall do both of the
following, by March 1, 1998:
   (a) Identify methods by which to collect data on the outcomes set
forth in Section 10541, using, to the extent possible, data that is
available and does not require the establishment of new data
collection processes at the county level.
   (b) Develop consistent data collection standards.
   10541.7.  Each county shall participate in monitoring performance
outcomes by collecting and reporting data in the manner established
by Section 10541.
   10542.  (a) Each county shall, as part of its CalWORKs plan,
identify outcomes to be tracked on the local level that are in
addition to any required to be tracked statewide.  These outcomes
shall be identified through a collaborative process that includes all
local agencies and stakeholders concerned with the implementation of
the CalWORKs program and its effects on local communities.  The
outcomes identified may reflect goals for CalWORKs implementation
established by the local community, possible negative outcomes the
local community wishes to monitor, or both.
   (b) The process of local identification of outcomes shall be
designed to contribute to greater collaboration among county public
and private agencies that serve current and former CalWORKs
recipients.  The outcomes identified shall be those that can be
tracked in a cost-effective manner.  To the extent counties identify
the same outcomes, the department shall provide technical assistance
to ensure consistency among the counties.
   (c) The outcomes that each county plans to monitor shall be
included in its county CalWORKs plan.  The plan shall identify the
outcomes, the data the county intends to collect to monitor the
outcomes, and the method of data collection the county intends to
use.
   10543.  (a) Within six months of CalWORKs implementation, each
county, in conjunction with the department, shall determine a
baseline for the data to be collected to meet both state and local
need.  The baseline shall be used in subsequent years to determine
whether or not the county's outcomes are improving.
   (b) If a county fails to meet outcomes required by federal law,
the county, in consultation with the department, shall develop and
implement a corrective action plan.
   (c) If outcomes have not improved over the baseline, the county
and the department shall evaluate the reasons.  To the extent the
county and the department determine that county and state actions
could positively influence the outcomes, they shall mutually develop
and implement a corrective action plan.
   (d) In both cases, the corrective action plan shall identify
actions that shall be taken by the county and by appropriate state
agencies.
   10544.  (a) If the department finds that a county is experiencing
significantly worsened outcomes, it shall report this finding to the
Chairs of the Senate Committee on Budget and Fiscal Review, the
Assembly Committee on Budget, the Senate Committee on Health and
Human Services, and the Assembly Committee on Human Services.
   (b) If the state does not achieve the outcomes required by federal
law and, as a result, is subject to a fiscal penalty, the penalty
shall be shared equally by the state and the counties after
exhaustion of all available federal administrative remedies.  The
total amount of the counties' share of the penalty shall be imposed
on those counties that failed to meet the federal requirements in an
amount equal to the total share of the county's caseload multiplied
by the percentage of the county's share of caseload to the total
caseload of the counties that failed to meet the federal
requirements.
   (c) A county may be provided relief, in whole or in part, from a
penalty imposed pursuant to subdivision (b) if the department
determines that there were circumstances beyond the control of the
county.  If a county is granted relief, that portion of the total
penalty shall not be imposed on the other counties that failed to
meet the federal requirements.
   (d) It is the intent of the Legislature that the penalty
provisions in subdivision (b) shall be revised by subsequent
enactment of legislation based upon the recommendation to the
Legislature of the steering committee established pursuant to Section
10544.317.
   10544.1.  It is the intent of the Legislature to provide counties
with 100 percent of the grant savings as defined in subdivisions (a)
to (e), inclusive.
   (a) In order to provide counties with additional incentive to move
CalWORKs recipients to employment, each county shall receive 75
percent of the state share of savings, including federal funds under
the Temporary Assistance for Needy Families block grant, resulting
from the following outcomes:
   (1) Recipients exiting the program due to employment that has
lasted a minimum of six months.
   (2) Increased earnings by recipients due to employment.
   (3) Diversion of applicants from the program pursuant to Section
11266.5 for six months in addition to the number of months equivalent
to the diversion payment.
   (b) For purposes of subdivision (a), the department, in
consultation with the steering committee under Section 10544.317,
shall determine the method for valuing the outcomes to determine
county share of savings.
   (c) The department shall allocate the remaining 25 percent of the
state share of savings resulting from the outcomes specified in
subdivision (a) to counties that have not realized savings due to
those outcomes but have performed in a manner worthy of recognition
based on standards developed by the department in consultation with
the counties.
   (d) The funds allocated to counties pursuant to subdivisions (a)
and (b) that are federal Temporary Assistance for Needy Families
block grant funds, shall be used only for purposes for which these
federal funds may be used. The funds that are state general fund
dollars shall be expended for purposes directly connected to the
CalWORKs program and countable towards the state maintenance of
effort level required by federal law, unless the Director of Finance
determines that all or part of the funds are not needed in that
fiscal year to meet the required maintenance of effort.
   (e) It is the intent of the Legislature that the provisions of
this section regarding the allocation of incentives shall be revised
by subsequent enactment of legislation based upon the recommendations
of the steering committee established pursuant to Section 10544.317.

   10544.317.  (a) There is hereby created a welfare reform steering
committee comprised of a representative of the Health and Welfare
Agency, who shall chair the committee, the Department of Finance, the
State Department of Social Services, the California State
Association of Counties, the County Welfare Directors Association of
California, representatives of the Legislature appointed by the
Speaker of the Assembly, the President pro Tempore of the Senate, the
minority leader of the Assembly, and the minority leader of the
Senate, and two public members appointed by the Secretary of the
Health and Welfare Agency.
   (b) The steering committee shall:
   (1) Provide advice and consultation on implementation issues
related to welfare reform.
   (2) Review alternative ways to budget for, and allocate funds for,
the administration of the program and report its findings to the
appropriate committees of the Legislature in a timely manner that
will enable the Legislature to incorporate the recommended changes in
the Budget Act of 1998 and related statutes.
   (3) Perform other duties as described elsewhere in this division.

  SEC. 34.  Section 10553.2 is added to the Welfare and Institutions
Code, to read:
   10553.2.  (a) The department shall make an annual allocation of
funds appropriated for the purpose of this subdivision to all
eligible federally recognized American Indian tribes with reservation
lands or rancherias located in this state that administer a program
pursuant to the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193).
   (b) The department shall collect and maintain specific available
data for each tribe in this state for federal fiscal year 1994 for
the purpose of the implementation and administration of the federal
program.
   (c) The department shall submit requests on behalf of tribes, for
all applicable federal waivers and exemptions for all eligible
federally recognized American Indian tribes located on reservations
and rancherias, or for consortia of tribes, for the administration of
the CalWORKs program, whether or not tribes administer an approved
Temporary Assistance for Needy Families (TANF) plan, independent of
any county participation, demographics, or circumstances.
   (d) Each county, in the administration of the CalWORKs program,
shall consult with all eligible federally recognized tribes within
any portion of the county, for the purpose of providing American
Indian recipients with equitable access to assistance under the state
program or an approved tribal TANF program if implemented in the
county, to determine county expenditures for tribal recipients, and
for the consideration of transfers of funding and administration
responsibilities to those entities.
  SEC. 35.  Section 10619 is added to the Welfare and Institutions
Code, to read:
   10619.  A public agency shall, in implementing programs affected
by the act adding this section to the Welfare and Institutions Code,
perform program functions exclusively through the use of merit civil
service employees of the public agency, except to the extent
permitted by provisions of state and federal law governing the
affected program that were in effect on August 21, 1996.
  SEC. 36.  Chapter 3.8 (commencing with Section 10780) of Part 2 of
Division 9 of the Welfare and Institutions Code is repealed.
  SEC. 37.  Section 11004 of the Welfare and Institutions Code is
amended to read: 
   11004.  The provisions of this code relative to public social
services for which state grants-in-aid are made to the counties shall
be administered fairly to the end that all persons who are eligible
and apply for such public social services shall receive the
assistance to which they are entitled promptly, with due
consideration for the needs of applicants and the safeguarding of
public funds.
   (a) Any applicant for, or recipient or payee of, such public
social services shall be informed as to the provisions of eligibility
and his or her responsibility for reporting facts material to a
correct determination of eligibility and grant.
   (b) Any applicant for, or recipient or payee of, such public
social services shall be responsible for reporting accurately and
completely within his or her competence those facts required of him
or her pursuant to subdivision (a) and to report promptly any changes
in those facts.
   (c) Current and future grants payable to an assistance unit may be
reduced because of prior overpayments  to an extent
consistent with federal law.  In every case,   .  In
cases where the overpayment was caused by agency error,  grant
payments shall be reduced  to a level no lower than 90
percent of the grant, when added to the family's liquid resources and
income, appropriate to families in similar conditions to the
assistance unit being adjusted.  If permitted by federal law, grant
  by 5 percent of the maximum aid payment of the
assistance unit.  Grant  payments to be adjusted because of
prior overpayments  caused by agency errors  
because of any other reason  shall be reduced  to a
level no lower than 95 percent of the grant when added to the family'
s liquid resources and net income, appropriate to families in similar
conditions to the assistance unit being adjusted.  As used in this
subdivision, "income" means gross income, and "net income" means
gross income minus the otherwise applicable standard work expense and
dependent care disregards   by 10 percent of the
maximum aid payments for the assistance unit.  A recipient may have
an overpayment adjustment in excess of the amounts allowable under
this section if the recipient requests it  .
   (d) No determination of ineligibility shall be made
retrospectively so as to result in an assessment of an overpayment in
circumstances where there is a failure on the part of an applicant
or recipient to perform an act constituting a condition of
eligibility, if the failure is caused by an
                error made by a state agency or a county welfare
department, and if the amount of the grant received by the applicant
or recipient would not have been different had the act been
performed.
   (e) Prior to effectuating any reduction of current grants to
recover past overpayments, the recipient shall be advised of the
proposed reduction and of his or her entitlement to a hearing on the
propriety of the reduction.
   (f) If the department determines after a hearing that an
overpayment has occurred, the county providing the public social
services shall seek to recover in accordance with subdivision (c) the
full amount of the overpayment to the assistance unit, including any
amount paid while the hearing process was pending  , if
required in order to conform to federal law or regulation  .
  Such adjustment shall be permitted concurrently with any suit for
restitution, and recovery of overpayment by adjustment shall reduce
by the amount of such recovery the extent of liability for
restitution.
   (g) If the individual is no longer receiving aid under Chapter 2
(commencing with Section 11200) recovery of overpayments received
under that chapter shall not be attempted where the outstanding
overpayments are less than thirty-five dollars ($35).  Where the
overpayment amounts owed are thirty-five dollars ($35) or more,
reasonable cost-effective efforts at collection shall be implemented.
  Reasonable efforts shall include notification of the amount of the
overpayment and that repayment is required.  The department shall
define reasonable cost-effective collection methods.  In cases
involving fraud, every effort shall be made to collect the
overpayments regardless of the amount.
   (h) If the individual responsible for the overpayment to the
assistance unit is no longer eligible for public social services or
if he or she becomes a member of another assistance unit, recoupment
of overpayments shall be made against the individual or his or her
present assistance unit, or both, to the extent consistent with the
provisions of federal law.
   (i) Where an overpayment has been made to an assistance unit which
is no longer receiving public social services, recovery shall be
made by appropriate action under state law against the income or
resources of the individual responsible for the overpayment or
against the family.
   (j) No civil or criminal action may be commenced against any
person based on alleged unlawful application for or receipt of public
social services, where the case record of such person has been
destroyed after the expiration of the four-year retention period
pursuant to Section 10851.
   (k) When an underpayment or denial of public social service occurs
and as a result the applicant or recipient does not receive the
amount to which he or she is entitled, the county shall provide
public social services equal to the full amount of the underpayment
unless prohibited by federal law.
   Any corrective payments made pursuant to this subdivision shall be
disregarded in determining the income of the family and shall be
disregarded in determining the resources of the family in the month
the corrective payment is made and in the following month.
   (l) This subdivision shall be applicable only to applicants,
recipients and payees under Chapter 2 (commencing with Section 11200)
of Part 3 of Division 9.  Any suits to recover overpayments
described in subdivision (f) shall be brought on behalf of the county
by the county counsel unless the board of supervisors delegates such
duty to the district attorney by ordinance or resolution.   
  SEC. 38.  Section 11008.13 of the Welfare and Institutions Code is
amended to read: 
   11008.13.  To the  same  extent  as
required by federal law, and as otherwise  consistent with
other provisions of this chapter:
   (a) The income and resources of a sponsor and his or her spouse
shall be deemed as the income and resources of an alien who is an
applicant for or recipient of aid under Chapter 2 (commencing with
Section 11200).
   (b) Any alien applicant or recipient, whose sponsor is a public or
private agency, shall be ineligible for aid under Chapter 2
(commencing with Section 11200) during the period of three years
after his or her entry into the United States.  However, this
ineligibility shall cease when it is determined that the sponsoring
agency no longer exists or is unable to meet the alien's needs.
   (c) As a condition of eligibility, any individual who is an alien,
during the period of three years after entry into the United States,
shall be required to provide any information and documentation with
respect to his or her sponsor as may be necessary in order to make
any determination required under this section.
   (d) If it is determined that as a result of a sponsor's failure to
provide correct information an overpayment has been made to an
alien, the alien and his or her sponsor shall be jointly and
severally liable for repayments.  Any such overpayment which is not
repaid by the alien or sponsor shall be subject to recoupment
pursuant to the provision of Section 11004.
   (e) The provisions of this section shall not apply to any alien
who is:
   (1) Admitted to the United States as a result of the application,
prior to April 1, 1980, of the provisions of Section 203(a)(7) of the
Immigration and Nationality Act.
   (2) Admitted to the United States as a result of the application,
after March 31, 1980, of the provisions of Section 207(c)(1) of that
act.
   (3) Paroled into the United States under Section 212(d)(5) of that
act.
   (4) Granted political asylum by the Attorney General under Section
208 of that act.
   (5) A Cuban or Haitian entrant as defined in Section 501(e) of the
Refugee Education Assistance Act of 1980.
   This section shall be applied to all applicants for, and
recipients of, aid under Chapter 2, (commencing with Section 11200),
regardless of whether federal financial participation is available
for the family.  
   (f) This section shall be operative only during that time that
Section 11008.135 is not operative.   
  SEC. 39.  Section 11008.135 of the Welfare and Institutions Code is
repealed.  
   11008.135.  (a) To the same extent as required by federal law, an
alien whose entry into the United States has been sponsored by an
individual who, or organization that, executed an affidavit of
support or similar agreement with respect to the alien shall be
ineligible for the Aid to Families with Dependent Children program,
the Supplemental Security Income/State Supplementary Program for the
Aged, Blind and Disabled, and the Food Stamp Program for a period of
five years after the alien's entry into the United States unless the
sponsoring person dies or the sponsoring organization ceases to
exist.
   (b) Subdivision (a) shall not apply with respect to any alien who
is:
   (1) Admitted to the United States as a result of the application,
prior to April 1, 1980, of Section 1153(a)(7) of Title 8 of the
United States Code.
   (2) Admitted to the United States as a result of the application,
after March 31, 1980, of Section 1157(c) of Title 8 of the United
States Code.
   (3) Paroled into the United States under Section 1182(d)(5) of
Title 8 of the United States Code.
   (4) Granted political asylum by the United States Attorney General
under Section 1158 of Title 8 of the United States Code.
   (5) A Cuban or Haitian entrant, as defined in Section 501(e) of
the Refugee Education Assistance Act of 1980 (Public Law 96-422).
   (c) This section shall become operative on the effective date of
federal law that prohibits providing assistance to sponsored aliens,
and shall remain operative only as long as federal law remains in
effect.  The director shall determine the operative dates of this
section pursuant to this subdivision and shall execute a declaration,
that shall be retained by the director, that sets forth the
operative date or termination date.   
  SEC. 40.  Section 11008.135 is added to the Welfare and
Institutions Code, to read:
   11008.135.  (a) Notwithstanding any other provision of law, in
determining the eligibility and amount of aid for an alien under this
division, the income and resources of the alien shall be deemed to
include the income and resources of any person who has executed an
affidavit of support on behalf of the alien and the spouse of that
person as provided in Subtitle C (commencing with Section 421) of
Title IV of Public Law 104-193 and any subsequent amendments thereto.

   (b) As a condition of eligibility, the sponsored applicant or
recipient shall provide information regarding the income and
resources of any person, and the spouse of that person, who has
executed an affidavit of support on behalf of the alien.
  SEC. 41.  Section 11008.14 of the Welfare and Institutions Code is
amended to read: 
   11008.14.   To the same extent as required by federal law,
the   The  income of the natural or adoptive
parent, and the spouse of the natural or adoptive parent, and the
sibling of an eligible child, living in the same home with an
eligible child shall be considered available, in addition to the
income of an applicant for or recipient of aid under Chapter 2
(commencing with Section 11200), for purposes of eligibility
determination and grant computation.  Except as otherwise provided in
this section, in the case of a parent or legal guardian of a minor
who is also the parent of an eligible child, the income of the parent
or guardian shall be considered available to the minor parent and
eligible child to the same extent that income to a stepparent is
considered available to an assistance unit  , consistent with
federal law  .
   This section shall be applied to all applicants for, and
recipients of, Aid to Families with Dependent Children provided under
Chapter 2 (commencing with Section 11200), except that income of a
guardian of an applicant for, or recipient of, foster care benefits
provided under Article 5 (commencing with Section 11400) of Chapter 2
shall not be considered available to the ward or to a child of the
ward for the purpose of eligibility determination and grant
computation under Article 5 (commencing with Section 11400) of
Chapter 2.  This section shall be applied regardless of whether
federal financial participation is available for the family.   
  SEC. 42.  Section 11018 of the Welfare and Institutions Code is
repealed.  
   11018.  Notwithstanding Section 11008, in computing the amount of
income available to support a recipient, the first thirty dollars
($30) per calendar quarter of any small nonrecurring gifts shall be
exempt.
   This section does not apply to recipients under Chapter 3
(commencing with Section 12000).   
  SEC. 43.  Section 11155 of the Welfare and Institutions Code is
amended to read: 
   11155.   In   Notwithstanding the provisions
of Section 11257, in  addition to the personal property  or
resources  permitted by other provisions of this part, and to
the extent permitted by federal law,  an applicant or
recipient, including an applicant for or recipient of aid to families
with dependent children, may retain items of personal property,
other than cash, securities, instruments or other evidences of
indebtedness, of a market value, less encumbrances, not to exceed one
thousand dollars ($1,000), and in addition property, to the extent
permitted by federal law, falling within the following categories:
   1. The entire value of wedding and engagement rings, heirlooms and
clothing.
   2. The value of household furnishings and, in addition, other
property used to provide, equip and maintain a household for the
applicant or recipient.
   3. Tools of trade, equipment and material of reasonable value that
will assist in the employment, rehabilitation, or self-care of the
applicant or recipient in any occupation, trade, or profession in
which the applicant or recipient has training, education, or
experience.  The county shall determine whether there are any
physical barriers which render the individual incapable of returning
to his or her occupation, trade, or profession.
   In determining the reasonable value of the tools, equipment and
materials, each item shall be separately considered and individually
evaluated.  The value of each tool, piece of equipment, or material
shall be presumed reasonable if the value is typical of the value of
the same or similar tools, equipment, or materials that are
ordinarily used in the chosen occupation or trade of the recipient.
   4. Any property right that is essential to land use or that is not
currently available for the use of or expenditure by or in behalf of
the applicant or recipient to meet a current or future need of the
applicant or recipient.
   In addition to all of the foregoing the director may at his or her
discretion, and to the extent permitted by federal law, exempt other
items of personal property not exempted under this section 
 an applicant or recipient for aid under this chapter, including
an applicant or recipient under Chapter 2 (commencing with Section
11200) may retain countable resources in an amount equal to the
amount permitted under federal law for qualification for food stamps.
  The county shall determine the value of personal property and
automobiles in conformance with methods established under the Food
Stamp Program  .   
  SEC. 44.  Section 11155.2 of the Welfare and Institutions Code is
amended to read: 
   11155.2.  (a) In addition to the personal property permitted by
this part, recipients of aid  to families with dependent
children   under CalWORKs  shall be permitted to
retain savings and interest thereon for specified purposes up to a
maximum of five thousand dollars ($5,000) per family.  Interest
earned from these savings and deposited into a restricted account
shall be considered exempt as income for purposes of determining
 AFDC  eligibility  for aid  and grant
amounts if the interest is retained in the account.  If the interest
is not deposited by the financial institution into the account, the
interest shall be treated as a nonqualifying withdrawal of funds from
the account as specified in subdivision (b).  This section shall not
apply to applicants.  Funds may be used by the family for 
postsecondary  education or  job  training 
for a child or children   expenses for the account
holder or his or her dependents  , for starting a business, or
for the purchase of a home.  Recipients who wish to retain savings
for these purposes shall enter into a written agreement with the
county to establish a separate account with a financial institution,
with the account to be used solely for the purpose of accumulating
funds for later withdrawal for a qualifying expenditure.  A
qualifying expenditure shall be defined by department regulations and
shall be verified by the recipient.  The recipient shall agree to
provide periodic verification of account activity, as required by
department regulations.  The agreement shall notify the recipient of
the penalty for nonqualifying withdrawal of funds.
   (b) Any nonqualifying withdrawal of funds from the account shall
result in a calculation of a period of ineligibility for all persons
in the assistance unit, to be determined by dividing the balance in
the account immediately prior to the withdrawal by the minimum basic
standard of adequate care for the members of the assistance unit, as
set forth in Section 11452.  The resulting whole number shall be the
number of months of ineligibility.  The period of ineligibility may
be reduced when the minimum basic standard of adequate care of the
assistance unit, including special needs, increases.
   (c)  This section shall be implemented on the first day of
the month following the month in which the director executes a
declaration that shall be retained by the director, stating that
federal approval for implementation of this section has been
obtained, and specifying the duration of that approval, and shall
continue to be implemented only until the end of the period of
federal approval.   If the California Savings and Asset
Project is established pursuant to Chapter 17 (commencing with
Section 50897) of Part 2 of Division 31 of the Health and Safety
Code, then to the extent permitted by federal law, a recipient shall
be eligible to receive matching funds derived from federal
contributions for the purpose of establishing an individual account
in an amount not to exceed three thousand dollars ($3,000) in
addition to the amounts specified in subdivision (a) and a fiduciary
organization may provide amounts in excess of the first three
thousand dollars ($3,000) limitation if contributed solely through
private sources.   
  SEC. 45.  Section 11155.3 is added to the Welfare and Institutions
Code, to read:
   11155.3.  (a) It is the intent of the Legislature in enacting this
section to provide counties and recipients of aid under Chapter 2
(commencing with Section 11200) with increased flexibility to
determine allowable business expenses and income reporting periods in
order to facilitate local microenterprise development, maximize
opportunities for a family to become self-sufficient, and reduce
unnecessary paperwork processing by county staff.
   (b) Self-employment net income shall be used in computing the aid
grant under Chapter 2 (commencing with Section 11200).
   (c) For purposes of determining the self-employment net income for
applicants and recipients of aid under Chapter 2 (commencing with
Section 11200), applicants and recipients may choose to deduct a
standard deduction of 40 percent of gross income or verified actual
self-employment expenses to the same extent allowed in the Food Stamp
Program pursuant to Chapter 10 (commencing with Section 18900) of
Part 6.  Applicants and recipients may change the method of deduction
only when a redetermination of eligibility is conducted by the
county or every six months, whichever occurs first.
  SEC. 46.  Section 11157 of the Welfare and Institutions Code is
amended to read: 
   11157.   (a)  Notwithstanding Section 11008, all lump-sum
income received by an applicant or recipient shall be regarded as
income in the month received except nonrecurring lump-sum social
insurance payments  , which  shall include  but are
not limited to  social security income, railroad retirement
benefits, veteran's benefits,  workman's  
worker's  compensation, and disability insurance.  
   To the extent required, as a condition for receipt of federal
funds, by federal law, lump-sum payments of income, as defined by
federal law, received by an applicant for or recipient of aid under
Chapter 2 (commencing with Section 11200) shall be considered income
in the month received and the family shall be ineligible for aid for
the number of months that equals the sum of all income received
during such month less all applicable income disregards divided by
the standard of need applicable to the family under Section 11452,
with any remainder to be considered as income received in the first
month following the period of ineligibility, should the family again
request aid.  The period of ineligibility shall be shortened in all
circumstances in which federal financial participation would be
available for aid paid to the family during that period. 

   (b) Except as otherwise provided in this part, for purposes of
this chapter and Chapter 2 (commencing with Section 11200), "income"
shall be deemed to be the same as applied under the Aid to Families
With Dependent Children program on August 21, 1996, except that
income that is received too infrequently to be reasonably
anticipated, as exempted in federal food stamp regulations, shall be
exempt from consideration.   
  SEC. 47.  Section 11157.5 is added to the Welfare and Institutions
Code, to read:
   11157.5.  The receipt of aid under Chapter 2 (commencing with
Section 11200) shall not impose any limitation or restriction upon a
recipient's right to sell, exchange, or change, the form of property
holdings.  However, a gift or any other transfer of assets, including
income and resources, by a recipient for less than fair market value
shall result in a period of ineligibility for aid under Chapter 2
(commencing with Section 11200) for the number of months, rounded
down to the nearest whole number, that equals the quotient of the
difference between the fair market value of the asset and the amount
received for the asset divided by the standard of need applicable to
the family under Section 11452.
  SEC. 48.  Section 11160 is added to the Welfare and Institutions
Code, to read:
   11160.  To the extent federal financial participation is
available, any state agency responsible for the administration of any
program under this division may establish procedures for common
eligibility determination for public social service programs that aid
needy families to the extent consistent with the eligibility of each
program, so as to improve the efficiency of the operation of the
welfare program, improve the cost-effective use of state dollars, and
simplify the process for permitting qualified recipients to
establish their eligibility.
  SEC. 49.  The heading of Chapter 2 (commencing with Section 11200)
of Part 3 of Division 9 of the Welfare and Institutions Code is
amended to read: 

      CHAPTER 2.   AID TO FAMILIES WITH DEPENDENT CHILDREN
  CALIFORNIA WORK OPPORTUNITY AND RESPONSIBILITY TO KIDS
ACT
 
  SEC. 50.  Section 11200 of the Welfare and Institutions Code is
amended to read: 
   11200.  This chapter shall be known and may be cited as the
 Family Economic Security Act of 1982  
California Work Opportunity and Responsibility to Kids Act, and may
also be cited as the CalWORKs program  .   
  SEC. 51.  Section 11201 of the Welfare and Institutions Code is
amended to read: 
   11201.  For the purposes of this chapter, the following shall
apply:
   (a) "Unemployed parent" means a natural or adoptive parent with
whom the child is living.
   (b) A child  for whom a parent is applying for assistance
under this chapter  shall be considered to be deprived of
parental support or care due to the unemployment of his or her parent
or parents when the parent  qualifies as an unemployed
parent in accordance with the standards for unemployed parents as
defined by federal law   has worked not more than 100
hours in the preceding four weeks and meets the requirements
concerning an unemployed parent in effect on August 21, 1996, as set
forth in Section 233.100 of Title 45 of the Code of Federal
Regulations except for the provisions of subparagraph (i) to (v),
inclusive, of paragraph (3) of subsection (a) of that section  .
  
   (c) A child receiving aid under this chapter who is considered to
be deprived of parental support or care due to unemployment may
continue to receive assistance regardless of the number of hours his
or her parent works provided the family does not exceed the
applicable gross or net income limits.   
  SEC. 52.  Section 11201.5 of the Welfare and Institutions Code is
repealed.  
   11201.5.  (a) The department shall conduct a statewide
demonstration program in order to determine whether the definition of
"unemployed parent" specified in Section 11201 discourages primary
wage earners receiving assistance under this chapter from accepting
employment offered to them.
   (b) The department shall seek a federal waiver as necessary to
implement the statewide demonstration program.  The implementation of
the program is contingent upon receipt of the necessary federal
waiver.
   The waiver shall provide that for recipients of aid under this
chapter, "unemployed parent" means the principal earner, whose wages,
after applicable earned income disregards, is less than the minimum
basic standard of adequate care for the family size.  This definition
applies only to those families receiving Aid to Families with
Dependent Children-Unemployed Parent (AFDC-U) assistance whose total
applicable family income meets the gross and net income eligibility
standards established by regulation.
   (c) The demonstration program provided for in this section shall
provide for a statewide project to demonstrate whether this revised
definition of "unemployed parent" would do either of the following:
   (1) Increase the number of principal earners accepting employment.

   (2) Reduce the average level of grant payments being made in the
AFDC-U program.
   The duration of the demonstration program shall be for two years
from the date of implementation by the counties.

(d) The department shall institute, as soon as possible, upon receipt
of the federal waiver, the demonstration program described in
subdivision (c).
   For purposes of this demonstration program, the AFDC-U applicant
shall not have quit a job without good cause within the 30 days
immediately prior to the beginning date of aid.  If the AFDC-U
applicant quits a job without good cause within this 30-day period,
the entire family shall be ineligible for aid under this chapter for
30 days from the date the applicant quit his or her job.
   An AFDC-U recipient shall not refuse an offer of employment
without good cause.  Good cause does not exist when the wage, less
applicable earned income disregards, would make the family
financially ineligible for aid under this chapter.
   The demonstration program established pursuant to this section
shall be in addition to the refugee demonstration programs provided
for during the 1983-84 Regular Session of the Legislature.
   (e) Any savings to counties in AFDC-U grant costs obtained due to
the implementation of the demonstration program shall be applied
toward the nonfederal administrative costs of administering the
AFDC-U program.
   (f) The State Department of Social Services shall seek federal
approval to extend indefinitely the thirty dollars ($30) and 1/3
earned income disregard for the Aid to Families with Dependent
Children program under Section 602(a)(8)(A)(iv) of Title 42 of the
United States Code.   
  SEC. 53.  Section 11250.4 of the Welfare and Institutions Code is
amended to read: 
   11250.4.   To the extent required by federal law, aid
  Aid  under this chapter shall not be payable to a
family budget unit if a caretaker relative is, on the last day of
the month, participating in a strike, unless the strike is
necessitated by an imminent health and safety hazard or abnormally
dangerous working conditions at the place of employment as determined
by the Division of Occupational Safety and Health, or a lockout as
defined in Section 1132.8 of the Labor Code.  For the purposes of
this section, a strike necessitated by an imminent health and safety
hazard or abnormally dangerous working condition shall last only so
long as necessitated by the imminent hazard or abnormally dangerous
working condition.  If an individual other than a caretaker relative
is participating in a strike, as defined in this section, on the last
day of the month, subject to the exceptions and their limitations
set forth in this section, that individual's needs shall not be
included in determining the amount of aid payable to the assistance
unit for the month during which the individual is participating in
the strike on the last day of that month.   
  SEC. 54.  Section 11253.5 is added to the Welfare and Institutions
Code, to read:
   11253.5.  (a) All children in an assistance unit for whom school
attendance is compulsory, except individuals who are eligible for the
Cal-Learn program under Article 3.5 (commencing with Section 11331)
and children subject to a county school attendance project under
Article 2 (commencing with Section 18236) of Chapter 3.3 of Part 6,
shall be required to attend school.
   (b) Applicants for and recipients of aid under this chapter shall
be informed of the attendance requirement and it shall be included in
the recipient's welfare-to-work plan under Section 11325.21.
   (c) A recipient shall cooperate in providing the county with
documentation routinely available from the school or school district
of regular attendance of all applicable children in the assistance
unit when the county determines it is appropriate.
   (d) If it is determined by the county that any eligible child
under the age of 16 years is not regularly attending school as
required, the needs of all adults in the assistance unit shall not be
considered in computing the grant of the family under Section 11450
unless it has been determined by the county that good cause exists.
   (e) If it is determined by the county that any child in the
assistance unit who is age 16 years or older is not regularly
attending school as required, or participating pursuant to a
welfare-to-work plan, the needs of the child shall not be considered
in computing the grant of the family under Section 11450 unless it
has been determined by the county that good cause exists.
  SEC. 55.  Section 11255 of the Welfare and Institutions Code is
repealed.  
   11255.  The department shall implement the waiver obtained from
the federal government to allow the thirty dollars ($30) and
one-third earned income disregard to be continued without regard to
the 12-month and 4-month limitations for income earned after August
31, 1993.   
  SEC. 56.  Section 11265.2 is added to the Welfare and Institutions
Code, to read:
   11265.2.  (a) The director shall implement a demonstration program
in up to six counties to test an alternative method of recipient
reporting, as described in this section.  The counties initially
selected for participation under this section shall include small,
medium, and large counties, but shall not include a county with a
population in excess of 6,000,000.
   (b) The demonstration program may operate for up to three years.
After the first year of operation, the director shall evaluate the
demonstration program and may continue, expand, or terminate the
project.  In addition, if, at any time after the first year of
demonstration program operation, the director determines that the
method is cost-effective and administratively efficient, the director
may, notwithstanding Sections 11265 and 11265.1, implement the
alternative method of recipient reporting pursuant to this section on
a permanent, statewide basis.
   (c) The alternative method of reporting to be used pursuant to
this section shall provide for the following:
   (1) The county shall redetermine the financial eligibility of each
recipient every six months, and may, at the option of the county,
conduct a full eligibility redetermination on an annual basis.
   (2) A recipient shall report to the county any change in his or
her household's monthly income or resources in excess of seventy-five
dollars ($75), and any change in the composition of his or her
household within 10 days after that change.  Upon the report of any
change in excess of seventy-five dollars ($75) or any change in the
household composition, the county shall recalculate an assistance
unit's grant level.
   (3) Notwithstanding any other provision of law, in recalculating
the amount of a recipients's grant pursuant to this section, changes
in the grant amount shall be made on a prospective basis.
   (4) The warrant provided to a recipient of aid under this chapter
shall provide for an endorsement under penalty of perjury by a
recipient indicating that all required changes in income, resources,
and household composition have been reported.  The warrant shall be
accompanied by notification of recipient reporting responsibilities.

  SEC. 57.  Section 11265.8 is added to the Welfare and Institutions
Code, to read:
   11265.8.  (a) All applicants for aid under this chapter, within 30
days of the determination of eligibility for Medi-Cal benefits under
Chapter 7 (commencing with Section 14000), and 45 days for
applicants already eligible for benefits under Chapter 7 (commencing
with Section 14000), and all recipients of aid under this chapter
within 45 days of a full or financial redetermination of eligibility
for aid under this chapter, shall provide documentation that all
children in the assistance unit not required to be enrolled in school
have received all age appropriate immunizations, unless it has been
medically determined that an immunization for a child is not
appropriate or the applicant or recipient has filed with the county
welfare department an affidavit that the immunizations are contrary
to the applicant's or recipient's beliefs.  If the county determines
that good cause exists for not providing the required documentation
due to lack of reasonable access to immunization services, the period
shall be extended by an additional 30 days. If the documentation is
not provided within the required time period, the needs of all
parents or caretaker relatives in the assistance unit shall not be
considered in determining the grant to the assistance unit under
Section 11450 until the required documentation is provided.  The
department shall track and maintain information concerning the number
of sanctions imposed under this section.
   (b) At the time of application and at the next redetermination of
eligibility for aid under this chapter, all applicants and recipients
shall be given notice advising them of their obligation to secure
the immunizations required in subdivision (a).  The notice shall also
contain all of the following:
   (1) The Recommended Childhood Immunization Schedule, United
States, and the Recommended Immunization Schedule for Children Not
Immunized on Schedule in the First Year of Life, as appropriate,
approved by the Advisory Committee on Immunization Practices, the
American Academy of Pediatrics, and the American Academy of Family
Physicians.
   (2) A description of how to obtain the immunizations through a
fee-for-service provider that accepts Medi-Cal, a Medi-Cal managed
care plan, a county public health clinic, or any other source that
may be available in the county as appropriate.
   (3) A statement that the applicant or recipient may file an
affidavit claiming that the immunizations are contrary to the
applicant's or recipient's beliefs.
  SEC. 58.  Section 11266.5 is added to the Welfare and Institutions
Code, to read:
   11266.5.  (a) Every applicant for aid under this chapter shall be
informed of the availability of lump sum diversion services to
resolve the circumstances that require the family to apply for
assistance prior to the family's approval for aid.
   (b) When an applicant is determined to be eligible for assistance
under this chapter, the county shall assess whether the applicant
would benefit from the lump sum diversion program.  The county shall
make this determination in its sole discretion.  In making this
determination, the county shall consider whether the applicant is
likely to be able to avoid the need for extended assistance beyond
the diversion period if the family was provided one-time assistance.
In making this determination, the county may consider any of the
following:
   (1) The applicant's employment history.
   (2) The likelihood of the applicant obtaining immediate full-time
employment.
   (3) The applicant's general prospect for obtaining full-time
employment.
   (4) The applicant's need for cash assistance to pay for housing or
substantial and unforseen expenses or work-related expenses.
   (5) Housing stability.
   (6) The adequacy of the applicant's child care arrangements, if
applicable.
   (c) If the county determines, pursuant to subdivision (b), that an
applicant could benefit from a lump sum diversion payment, the
county shall inform the applicant of its determination.
   (d) An applicant for aid under this chapter may either participate
in the lump sum diversion program or decline participation in
diversion and, instead, receive aid as otherwise provided for in this
chapter.
   (e) Lump sum diversion services provided under this section may
include any cash or noncash payment and shall be negotiated by the
county and the applicant in order to assist the applicant in avoiding
the need for aid under this chapter.
   (f) If, after accepting a diversion payment pursuant to this
section, the individual reapplies for aid under this chapter within
the amount of time that corresponds with the number of months of aid
that would have been received under this chapter that was received as
a diversion payment, excluding a partial month, and he or she is
determined to be eligible for aid, the county shall, at the option of
the recipient, either recoup from the recipient's grant, over a
period of time to be determined by the county, the amount of the
diversion payment that the recipient received, or count the period of
time that corresponds to the number of months of aid that would have
been received, excluding a partial month of aid, towards the
60-month time limit on aid specified in subdivision (b) of Section
11454.
   (g) To the extent permitted by federal law, lump sum diversion
payments shall not be considered income for the purpose of
determining eligibility for food stamps.
   (h) Any child support collected by the applicant or recovered by
the county shall not be used to offset the diversion payment.
   (i) During the period of the diversion, the applicant family shall
be eligible for Medi-Cal and child care assistance pursuant to
Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of
the Education Code, if otherwise eligible.
  SEC. 59.  The heading of Article 3.2 (commencing with Section
11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and
Institutions Code is amended to read: 

      Article 3.2.   Greater Avenues for Independence Act
  Welfare-to-Work Activities 

  SEC. 60.  Section 11320 of the Welfare and Institutions Code is
repealed.  
   11320.  The Legislature finds and declares that this article is
intended to be a recodification and simplification of the Greater
Avenues for Independence Act of 1985 (Art. 3.2 (commencing with
Section 11320), as added by Chapter 1025 of the Statutes of 1985),
and should be construed as a continuation of that act except as
otherwise provided.  Any other provision of law referring to the
Greater  Avenues for Independence Act of 1985 shall be construed as
referring to this article.   
  SEC. 61.  Section 11320 is added to the Welfare and Institutions
Code, to read:
   11320.  Any reference to the Greater Avenues for Independence
program or (GAIN) shall mean the welfare-to-work activities under the
CalWORKs program provided for in this article.
  SEC. 62.  Section 11320.1 is added to the Welfare and Institutions
Code, to read:
   11320.1.  Subsequent to the commencement of the receipt of aid
under this chapter, the sequence of employment related activities
required of participants under this article, unless exempted under
Section 11320.3, shall be as follows:
   (a) Job search.  Recipients shall, and applicants may, at the
option of a county and with the consent of the applicant, receive
orientation to the welfare-to-work program provided under this
article, receive appraisal pursuant to Section 11325.2, and
participate in job search and job club activities provided pursuant
to Section 11325.22.
   (b) Assessment.  If employment is not found during the period
provided for pursuant to subdivision (a), or at any time the county
determines that participation in job search is not likely to lead to
employment, the participant shall be referred to assessment, as
provided for in Section 11325.4.  Following assessment, the county
and the participant shall develop a welfare-to-work plan, as
specified in Section 11325.21.  The plan shall specify the activities
provided for in Section 11322.6 to which the participant shall be
assigned, and the supportive services, as provided for pursuant to
Section 11323.2, with which the recipient will be provided.
   (c) Work activities.  A participant who has signed a
welfare-to-work plan pursuant to Section 11325.21 shall participate
in work activities until he or she has received aid for the period
specified in subdivision (a) of Section 11454.  If, after the period
specified in paragraph (1) of subdivision (a) of Section 11454, the
participant has not obtained unsubsidized employment, the county may
extend the welfare-to-work plan by up to six months if the county
determines that the extension is likely to lead to unsubsidized
employment or if local unemployment or other conditions in the local
economy are such that employment is not available.  If a recipient
has received aid for the period specified in subdivision (a) of
Section 11454 and returns to aid after a break in aid of at least one
month, the county shall determine whether to require the recipient
to participate in welfare-to-work activities or in community service.

   (d) Community service.
   (1) If a participant has received aid for the period specified in
subdivision (a) of Section 11454, and the participant has not found
unsubsidized employment sufficient to meet the hours of participation
required by Section 11322.8 and the county has certified that no job
is available for that participant, the participant shall remain
eligible for aid under this chapter only if he or she participates in
community service activities pursuant to Section 11322.9.
   (2) The county shall provide community service activities
assignments as described in Section 11322.9.
   (3) An individual may participate in community service activities
until he or she has received aid for a total of 60 months.
  SEC. 63.  Section 11320.15 is added to the Welfare and Institutions
Code, to read:
   11320.15.  After a participant has received aid for a total of 60
months, pursuant to Section 11454, he or she shall be removed from
the assistance unit for the purposes of calculation of aid under
Section 11450 and he or she shall no longer be required to
participate in welfare-to-work activities.  Additional
welfare-to-work services may be provided to the recipient, at the
option of the county.  If the county provides services to the
recipient after the 60-month limit has been reached, the recipient
shall participate in community service.
  SEC. 64.  Section 11320.2 of the Welfare and Institutions Code is
repealed.  
   11320.2.  (a) The Legislature finds and declares that this article
is intended to be the employment and training program for the state
and is intended to satisfy the registration requirement of Section
602(a)(19)(A) of Title 42 of the United States Code.  The Legislature
further declares that this article shall be implemented even if the
requirements of the federal Social Security Act are not met.
   (b) The Legislature finds and declares that the state and counties
recognize all of the following:
   (1) Applicants for, and recipients of, aid under this chapter
desire to work, and will do so if provided with the opportunity.
   (2) The state and counties shall provide applicants for, and
recipients of, aid under this chapter with the opportunity to obtain
employment by offering a full range of employment training and
supportive services, consistent with the needs of participants, that
allow for informed choices in order to meet their employment goals.
   (3) Able-bodied applicants for, and recipients of, aid under this
chapter, are expected to work.  The timeframes for fulfilling this
expectation shall be set forth in an explicit contract between an
applicant or recipient and the county.
   (4) Applicants for, and recipients of, aid under this chapter who
are required to register for employment and training programs
pursuant to Section 11320.3 are individuals in special need of
training as described in Section 2 of the federal Job Training
Partnership Act (29 U.S.C. Sec. 1501), individuals who require
special assistance provided in Section 123 of the Job Training
Partnership Act (29 U.S.C. Sec. 1533), and most in need of employment
and training opportunities as described in Section 141 of the Job
Training Partnership Act (29 U.S.C. Sec. 1551).  The Legislature
finds and declares that these individuals are in the labor force
actively seeking employment.
   (5) Because the success of any program will depend on the state,
it must exercise leadership to engender enthusiasm among counties,
county welfare department directors, and county welfare department
line staff, who are the principal contacts for many recipients
enrolled in the program.
   (6) A successful program should also be based upon all the
following principles:
   (A) Recipients should be able to make choices and to live up to
the responsibilities involved in those choices.
   (B) Participants should have an early opportunity to obtain a job.

   (C) Expenditures should be targeted where they can do the most
good.
   (D) The state and the counties have a responsibility to provide a
sufficient level of services to meet the needs of participants, as
well as to undertake sufficient public information efforts to make
recipients, potential participants, employers, or other public or
private entities aware of the components, opportunities, and benefits
of this program.
   (E) New programs should be good investments of public funds.
Added costs to the system should be incurred only when they are
likely to result in long-term personal and community payoff.
   (7) Clients should not be placed in any unassigned pool while
waiting for a scarce resource.
   (8) Most types of employment and training program components for
applicants for, and recipients of, aid under this chapter have been
successfully tried in this state.
   (9) Aid under this chapter is available to persons who meet
eligibility requirements.  The program provided for in this article
should not hamper continuation of this state's existing system of
fraud detection, one of the most successful in the nation. 

  SEC. 65.  Section 11320.3 of the Welfare and Institutions Code is
amended to read: 
   11320.3.  (a) Except as provided in subdivision (b)  or if
otherwise exempt  , every individual, as a condition of
eligibility for aid under this chapter, shall  register for
participation   participate in welfare-to-work
activities  under this article.
   (b) The following individuals shall not be required to 
register   participate for so long as the condition
continues to exist  :
   (1) An individual under 16 years of age, except as provided in
subdivision  (b)   (c)  of Section 11331.5,
during the time that provision is operative.
   (2) Except as provided in subdivision  (b)  
(c)  of Section 11331.5, during the time that provision is
operative, a child attending an elementary, secondary, vocational, or
technical school on a full-time basis.  A person who is 16 or 17
years of age, or a person described in subdivision (d) who loses this
exemption, shall not requalify for the exemption by attending school
as a required activity under this article.   For purposes of
this paragraph, school shall not include postsecondary education.

   (3) An individual  who is ill, incapacitated, or 
 who meets either of the following conditions:
   (A) The individual is disabled as determined by a doctor's
verification that the disability is expected to last at least 30 days
and that it significantly impairs the recipient's ability to be
regularly employed or participate in welfare-to-work activities,
provided that the individual is actively seeking appropriate medical
treatment.
   (B) The individual is  of advanced age.
   (4)  Except as provided in subdivision (b) of Section
11331.5, during the time that provision is operative, an individual
so remote from a program activity that his or her effective
participation is precluded.   A nonparent caretaker
relative who has primary responsibility for providing care for a
child and is either caring for a child who is a dependent or ward of
the court or caring for a child in a case in which a county
determines the child is at risk of placement in foster care, and the
county determines that the caretaking responsibilities are beyond
those considered normal day-to-
                day parenting responsibilities such that they impair
the caretaker relative's ability to be regularly employed or to
participate in welfare-to-work activities. 
   (5) Except as provided in subdivision  (b)  
(c)  of Section 11331.5, during the time that provision is
operative, an individual whose presence in the home is required
because of illness or incapacity of another member of the household
 and whose caretaking responsibilities impair the recipient's
ability to be regularly employed or to participate in welfare-to-work
activities  .
   (6) Except as provided in subdivision (b) of Section 11331.5,
during the time that provision is operative, a parent or other
relative who meets the criteria in subparagraph (A) or (B).  

   (A) The parent or other relative has primary responsibility for
personally providing care to a child under the age of three years.
An individual may be exempt only once for this reason during a period
of continuous eligibility for aid under this chapter.  An individual
who has primary responsibility for personally providing care to a
child under three years of age, and who has previously received this
exemption, shall be exempt for a period of four months, upon the
birth or adoption of a child.  For purposes of this subparagraph, a
"period of continuous eligibility" ends only after a break in
eligibility for aid of six consecutive calendar months or more.  An
individual meeting this criterion who volunteers to register may not
be required to participate unless it is guaranteed that child care
will be provided and participation will not be required for more than
20 hours per week.  
   (A) (i) The parent or other relative has primary responsibility
for personally providing care to a child six months of age or under,
except that, on a case-by-case basis, and based on criteria developed
by the county, this period may be reduced to the first 12 weeks
after the birth or adoption of the child, or increased to the first
12 months after the birth or adoption of the child.  An individual
may be exempt only once under this clause.
   (ii) An individual who received an exemption pursuant to clause
(i) shall be exempt for a period of 12 weeks, upon the birth or
adoption of any subsequent children, except that this period may be
extended on a case-by-case basis to six months, based on criteria
developed by the county.
   (iii) In making the determination to extend the period of
exception under clause (i) or (ii), the following may be considered:

   (1) The availability of child care.
   (2) Local labor market conditions.
   (3) Other factors determined by the county. 
   (B)  The parent or other relative has primary
responsibility for personally providing care to a child aged three to
five years, inclusive, unless it is guaranteed that child care will
be provided and, subject to subparagraph (D), participation will not
be required for more than 20 hours per week.
   (C)  In a family eligible for aid under this chapter due
to the unemployment of the principal wage earner, the exemption
criteria contained in subparagraph (A)  or (B) 
shall be applied to only one parent.  
   (D) (i) The department shall seek a federal waiver of the 20-hour
weekly participation limit specified in subparagraph (B).
   (ii) The waiver sought pursuant to clause (i) may be implemented
only if the director executes a declaration, which shall be retained
by the director, specifying that federal approval for the waiver of
the 20-hour weekly participation limit has been obtained, and only
for the duration of that approval. 
   (7) Except as provided in subdivision  (b)  
(c)  of Section 11331.5, during the time that provision is
operative, a woman who is pregnant  and  for whom it has
been medically verified that  the anticipated delivery date
is during the month of required participation or is within the
six-month period immediately following the month of required
participation   the pregnancy impairs her ability to be
regularly employed or participate in welfare-to-work activities or
the county has determined that, at that time, participation will not
readily lead to employment or that a training activity is not
appropriate  .  
   (8) Except as provided in subdivision (b) of Section 11331.5,
during the time that provision is operative, an individual who is
earning at least the state or federal minimum wage, whichever is
higher, for working not less than 30 hours per week in unsubsidized
employment that is expected to last a minimum of 30 days.  The
minimum wage requirement shall apply to the net earnings of
self-employed individuals, and it shall not apply during the first
six months of self-employment or employment that is compensated by
commission. This exemption shall continue to apply if there is a
temporary break in full-time employment that is expected to last no
longer than 10 working days.
   (9) An individual who is a full-time volunteer serving under the
Volunteers in Service to America (VISTA) program, pursuant to Title 1
of the federal Domestic Volunteer Service Act of 1973 (P.L. 93-113).

   (c) Any individual not required to  register 
participate  may choose to  register  
participate  voluntarily under this article, and  may
withdraw   end  that  registration
  participation  at any time without loss of
eligibility for aid under this chapter, if his or her status has not
changed in a way that would require  registration 
 participation  .
   (d) (1) Notwithstanding subdivision (a), a custodial parent who is
under 20 years of age and who has not earned a high school diploma
or its equivalent, and who is not exempt or whose only basis for
exemption is subparagraph (A) of paragraph (6) of subdivision (b),
shall be required to  register   participate
 solely for the purpose of earning a high school diploma or its
equivalent.  During the time that Article 3.5 (commencing with
Section 11331) is operative, this subdivision shall only apply to a
custodial parent who is 19 years of age.
   (2) Notwithstanding subparagraph (B) of paragraph (6) of
subdivision (b), full-time participation shall be required of the
parent.
   (3)  Section 11325.25 shall apply to a custodial parent
who is 18 or 19 years of age and who is required to participate under
this article.  Any referral pursuant to an evaluation that results
in an assignment to any training or work activity shall be subject to
subparagraph (B) of paragraph (6) of subdivision (b).  
   (4) Custodial mothers under 20 years of age who have not earned a
high school diploma or its equivalent shall be exempted due to
incapacity as provided in paragraph (3) of subdivision (b) after the
birth of the child for a period of postpartum recovery as prescribed
by a physician. 
   (e) Notwithstanding paragraph (1) of subdivision (d), the county
may determine that participation in education activities for the
purpose of earning a high school diploma or equivalent is
inappropriate for an 18 or 19 year old custodial parent only if that
parent is reassigned pursuant to an evaluation under Section
11325.25, or, at appraisal is already in an educational or vocational
training program that is approvable as a self-initiated program as
specified in Section 11325.23.  If that determination is made, the
parent shall be allowed to continue participation in the
self-initiated program subject to Section 11325.23.  During the time
that Article 3.5 (commencing with Section 11331) is operative, this
subdivision shall only apply to a custodial parent who is 19 years of
age.  
   (f) A recipient shall be excused from participation for good cause
when the county has determined there is a condition or other
circumstance that temporarily prevents or significantly impairs the
recipient's ability to be regularly employed or to participate in
welfare-to-work activities.  The county welfare department shall
review the good cause determination for its continuing
appropriateness in accordance with the projected length of the
condition, or circumstance, but not less than every three months.
The recipient shall cooperate with the county welfare department and
provide information, including written documentation, as required to
complete the review.  Conditions that may be considered good cause
include, but are not limited to, the following:
   (1) Lack of necessary supportive services.
   (2) In accordance with Article 7.5 (commencing with Section
11495), the applicant or recipient is a victim of domestic violence,
but only if participation under this article is detrimental to or
unfairly penalizes that individual or his or her family.
   (3) Licensed or license-exempt child care for a child 10 years of
age or younger is not reasonably available during the individual's
hours of training or employment including commuting time, or
arrangements for child care have broken down or have been
interrupted, or child care is needed for a child who meets the
criteria of subparagraph (B) of paragraph (1) of subdivision (a) of
Section 11323.2, but who is not included in the assistance unit.  For
purposes of this paragraph, "reasonable availability" means child
care that is commonly available in the recipient's community to a
person who is not receiving aid and that is in conformity with the
requirements of Public Law 104-193.  The choices of child care shall
meet either licensing requirements or the requirements of Section
11324.  This good cause criterion shall include the unavailability of
suitable special needs child care for children with identified
special needs, including, but not limited to, disabilities or chronic
illnesses.   
  SEC. 66.  Section 11320.31 is added to the Welfare and Institutions
Code, to read:
   11320.31.  No sanctions shall be applied for a failure or refusal
to comply with program requirements for reasons related to
employment, an offer of employment, an activity, or other training
for employment including, but not limited to, the following reasons:

   (a) The employment, offer of employment, activity, or other
training for employment discriminates in terms of age, sex, race,
religion, national origin, or physical or mental disability.
   (b) The employment or offer of employment exceeds the daily or
weekly hours of work customary to the occupation.
   (c) The employment, offer of employment, activity, or other
training for employment requires travel to and from the place of
employment, activity, or other training and one's home that exceeds a
total of two hours in round-trip time, exclusive of the time
necessary to transport family members to a school or place providing
care, or, when walking is the only available means of transportation,
the round-trip is more than two miles, exclusive of the mileage
necessary to accompany family members to a school or a place
providing care.  An individual who fails or refuses to comply with
the program requirements based on this paragraph shall be required to
participate in community service activities pursuant to Section
11322.9.
   (d) The employment, offer of employment, activity, or other
training for employment involves conditions that are in violation of
applicable health and safety standards.
   (e) The employment, offer of employment, or work activity does not
provide for worker's compensation insurance.
   (f) Accepting the employment or work activity would cause an
interruption in an approved education or job training program in
progress that would otherwise lead to employment and sufficient
income to be self-supporting, excluding work experience or community
service employment as described in subdivision (e) of Section 11322.6
or other community work experience assignments, except that a
recipient may be required to engage in welfare-to-work activities to
the extent necessary to meet the hours of participation required by
Section 11322.8.
   (g) Accepting the employment, offer of employment, or work
activity would cause the individual to violate the terms of his or
her union membership.
  SEC. 67.  Section 11320.4 of the Welfare and Institutions Code is
repealed.  
   11320.4.  (a) Every applicant for, or recipient of, aid under this
chapter who is required to register for employment and training
programs pursuant to Section 11320.3 shall be required to register
under this article with the county welfare department.  Any applicant
for, or recipient of, aid under this chapter who is not required to
participate under this article may volunteer to participate in the
program.
   (b) Any person required to register under this article with the
county welfare department who refuses to register shall be subject to
the procedures provided for in Sections 11327.4 and 11327.5.
   (c) (1) Any AFDC applicant or recipient who is a member of, and
who lives within the designated service area of, any Indian tribe
operating a job opportunities and basic skills training program
approved by the federal Department of Health and Human Services under
the federal Family Support Act of 1988 (P.L. 100-485) shall, if
required pursuant to a tribe's approved operating plan, participate
in the program in place of participation pursuant to this article.
   (2) If an individual refuses or fails to comply with program
requirements without good cause, and conciliation efforts as
specified in Section 11327.4 have failed to resolve the dispute,
Section 11327.5 shall apply.   
  SEC. 68.  Section 11320.6 of the Welfare and Institutions Code is
repealed.  
   11320.6.  (a) County welfare departments shall administer this
article in a manner consistent with this chapter and regulations
adopted by the department in order to implement this chapter.
   (b) Each county welfare department, with the cooperation of
community college districts, county offices of education, and local
private industry councils established under Chapter 4 (commencing
with Section 15030) of Division 8 of the Unemployment Insurance Code,
shall maintain with the department a county plan that describes a
package of services to be provided to participants receiving services
under this article, and that reflects available resources and local
job market needs.  A joint plan may be maintained by two or more
consenting counties.
   (c) Each county plan shall include a participant and labor market
needs assessment that shall specify all of the following:
   (1) The full employment goal of the plan, which shall be the
provision of unsubsidized employment for all county registrants
subject to this article.
   (2) An assessment of the county's current and projected
unsubsidized employment needs.
   (3) An inventory of services, including those specified in Section
11322.6, available to county residents.
   (4) The amount and kind of services required to meet the full
employment goal for all registrants.
   (5) The amount and kind of services that will be used in the plan
year.
   (6) An assessment of what services are currently unavailable and
needed, including child care services, to meet the full employment
goal and a plan for developing the availability of these services
within a reasonable period of time, including a proposed program
budget.
   (d) (1) Each county plan shall specify the county's annual
performance objectives, including goals for the achievement of
outcomes as required by the department.  A county that fails to meet
these goals shall submit to the department for approval, as part of
the plan update, proposed changes in program operation that will
enable the county to meet its performance objectives.
   (2) The county plan for the first fiscal year following the
effective date of this paragraph shall include the county's goals for
the number of job placements, grant reductions, and terminations
that reflect increased income from employment.  Counties shall also
report information regarding the number of licenses, certificates,
and degrees obtained by participants, and the number of participants
obtaining employment as a result thereof.  By June 30, 1996, the
department shall develop additional performance objectives based on
outcome measures that include, but are not limited to, recidivism,
job retention, wage and benefit levels, and the time base of job
placements.
   (e) If services are not available in the county, the county plan
may include provisions for the purchase of services from other
counties.
   (f) The department shall develop regulations for the revision and
update of the county plan.
   (g) Any county in which there is an Indian tribe which operates a
job opportunities and basic skills training program approved by the
federal Department of Health and Human Services under the federal
Family Support Act of 1988 (P.L. 100-485) shall do all of the
following:
   (1) (A) Provide the tribe or tribes with information on adult
tribal AFDC recipients needed to determine the eligible tribal
population and to define the designated service area.
   (B) The confidentiality standards of Chapter 5 (commencing with
Section 10850) shall apply to this paragraph.
   (2) Determine the eligibility of tribal members for AFDC in
accordance with Chapter 2 (commencing with Section 11250).
   (3) Refer all AFDC applicants and recipients who are tribal
members to the tribe's education, training, and work program.
   (4) Impose financial sanctions in accordance with Section 11327.5.

   (5) Provide child care referrals and payments, including
transitional child care, in accordance with Chapter 2 (commencing
with Section 11250).
   (6) Enter into any agreements necessary to carry out the
activities specified in this subdivision.   
  SEC. 69.  Section 11320.8 of the Welfare and Institutions Code is
repealed.  
   11320.8.  (a) Each county plan shall contain a methodology for the
provision of job services, training and education, case management
activities, and supportive services to program participants.  This
methodology shall specify how county welfare departments will
cooperate with, and maximize the use of, education, child care,
resource and referral agencies, job service, and other appropriate
local service providers.  To the extent existing programs are
available to county residents, each county plan shall specify the
manner in which these programs shall be utilized to provide services
specified in this article.  The county may provide services directly
to program participants or enter into interagency agreements or
contracts with private or public agencies for the provision of these
services.
   (b) Each county shall specify in its plan its target groups and
the choices that may be made available to each target group.  The
county shall make available all of its programs to each target group,
but may give priorities for certain programs to groups for whom
these programs are reasonably expected to be the most effective.
   (c) Each county welfare department shall afford any local private
industry councils, local legal aid and welfare rights
representatives, and local housing authorities responsible for
administering public housing programs an opportunity for prior review
and comment on county plan updates and revisions.  When submitted to
the state department for approval, each county plan shall be
accompanied by a letter from the private industry council, or
councils in a multiservice delivery area county, certifying the level
of local coordination including joint planning and the use of local
labor market information.   
  SEC. 70.  Section 11321 of the Welfare and Institutions Code is
repealed.  
   11321.  The board of supervisors shall approve the county plan, or
any significant changes or revisions to that plan.  In approving the
county plan, the board of supervisors shall consider the views
presented by affected groups during, and as part of the record of,
the public hearing in accordance with existing county public hearing
procedures.   
  SEC. 71.  Section 11321.2 of the Welfare and Institutions Code is
repealed.  
   11321.2.  (a) No plan, or revision of a plan, may be implemented
unless approved by the department.  In determining whether a plan
should be approved, the department shall consider the projected
long-range cost-effectiveness of the plan, in addition to the
appropriateness of the services proposed to be delivered under the
plan, given the local labor market, maximum utilization of existing
and generic services, and administrative ease.
   (b)  (1) Except as provided in paragraph (2), every plan approved
by the department shall provide an adequate range of services as
described in Sections 11322.6 to 11323.2, inclusive.  With respect to
large counties, as defined by the department for cost control
purposes, "an adequate range of services" means that the counties
shall provide all of the services outlined in those sections.
   (2) Counties that do not provide for grant diversion as specified
in subdivisions (f) and (g) of Section 11322.8 shall be deemed to
have an adequate range of services.
   (c) If a joint plan submitted by two or more counties serves a
participant caseload equal to or greater than a large county, the
plan shall meet the requirements of subdivision (b) for large
counties, except for services shown to be unnecessary by the
counties.  No plan shall require job search and work experience of
participants to the exclusion of a range of services, both existing
and proposed, to be offered participants, in accordance with this
section.   
  SEC. 72.  Section 11321.4 of the Welfare and Institutions Code is
repealed.  
   11321.4.  Each county welfare department shall, in providing
services to participants under this article, provide services to each
participant that will best achieve the individual's employment goal
as identified through the development of an employment plan.
Services to be provided to each participant shall be specified in the
contract entered into between the county welfare department and the
participant pursuant to Section 11325.21.   
  SEC. 73.  Section 11321.8 of the Welfare and Institutions Code is
repealed.  
   11321.8.  (a) The department shall approve a county plan within a
reasonable period of time after submission of the county plan.
   (b) A county may incorporate into its plan any existing employment
or training program for applicants for, or recipients of, aid under
this chapter which is operating in the county to the extent that the
program is consistent with this article.   
  SEC. 74.  Section 11322 of the Welfare and Institutions Code is
repealed.  
   11322.  (a) The county welfare department shall submit to the
department a program budget proposal in conjunction with the
administrative cost control plan for Aid to Families with Dependent
Children, Medi-Cal, and Food Stamp programs.  The budget proposal
shall specify the costs associated with providing the range of
services included in the county plan in the most cost-effective
manner.
   (b) Prior to final approval of the county's budget proposal, the
department shall notify each county of the amount of its allocation
of funds to carry out the plan and the assumptions used to develop
that allocation.  If the allocation is less than the amount of funds
that the county proposed in the program budget, the department shall
notify the county that the proposed program budget exceeds the funds
available.  The department shall specify how the costs proposed by
the county exceed the costs used to develop the county's allocation.
The county may provide any additional documentation to justify the
higher funding level.  If, after reviewing the additional
information, the department finds that the proposed program costs are
not reasonable or cost-effective, the county shall
                            submit the necessary revisions to its
program budget to keep program expenditures within the amount of its
allocation.
   (c) (1) The state share of the nonfederal costs of the Greater
Avenues for Independence program shall be 70 percent of the actual
nonfederal expenditures for that program or the amount appropriated
by the Legislature for that purpose, whichever is less.
   (2) Notwithstanding paragraph (1), once the county has met the
requirements of subdivision (d), the state shall pay 100 percent of
the actual nonfederal expenditures above that requirement, up to the
amount of the county's GAIN allocation.
   (d) A county shall have no share of any nonfederal expenditures
above the actual amount of nonfederal expenditures for this program
in the 1992-93 fiscal year, provided that the county has maintained
the level of county matching funds it provided for this program in
the 1992-93 fiscal year.   
  SEC. 75.  Section 11322.2 of the Welfare and Institutions Code is
amended to read: 
   11322.2.   (a)  Counties shall continually
monitor their program expenditures throughout the fiscal year.  If a
county determines that its anticipated expenditures will exceed the
amount of that year's allocations as a result of an unexpected event,
including caseload increases, court cases, or significant
justifiable increases in component costs, the county shall
immediately notify the department  and submit a revised plan
 .  
   (b) Counties shall achieve cost reductions pursuant to a revised
plan required by subdivision (a), primarily by reducing the number of
participants in the program in a manner consistent with Section
11322.4.  Counties may make program efficiencies to the extent those
reductions do not threaten the guarantee of services as required by
subdivision (b) of Section 11321.2.  In its review, the department
shall ensure that any efficiencies do not create an effective barrier
to participation on the part of current or future clients.
   (c) (1) The state share of the nonfederal costs of the Greater
Avenues of Independence program shall be 70 percent of the actual
nonfederal expenditures for that program or the amount appropriated
by the Legislature for that purpose, whichever is less.
   (2) Notwithstanding paragraph (1), once the county has met the
requirements of subdivision (d), the state shall pay 100 percent of
the actual nonfederal expenditures above that requirement, up to the
amount of the county's GAIN allocation.
   (d) A county shall have no share of any nonfederal expenditures
above the actual amount of nonfederal expenditures for this program
in the 1992-93 fiscal year, provided that the county has maintained
the level of county matching funds it provided for this program in
the 1992-93 fiscal year.   
  SEC. 76.  Section 11322.4 of the Welfare and Institutions Code is
repealed.  
   11322.4.  (a) If resources are not sufficient to serve all
registrants, the county shall adopt a method to determine the order
in which registrants are given priority for, or temporarily excluded
from, participation in the program.
   (b) The method adopted by the county shall meet the following
requirements:
   (1) Existing participants shall be given the highest priority.
They shall be given an opportunity to complete the services necessary
to reach their employment goals, as identified in their contracts
with the county, unless the county must temporarily exclude them from
the program due to insufficient resources in accordance with the
county plan.  This shall include individuals who have participated in
the Cal-Learn Program pursuant to Article 3.5 (commencing with
Section 11331), during the time that article is operative, and who
shall receive any additional services needed to prepare them for
employment.
   (2) Fifty-five percent of funds expended for the program in the
county shall be for services to any of the following target
populations.
   (A) Applicants for, or recipients of, AFDC who have received AFDC
for any 36 of the 60 months immediately preceding the most recent
month for which application has been made.
   (B) Custodial parents under the age of 24 who had little or no
work experience in the preceding year.
   (C) Custodial parents under the age of 24 who have not completed a
high school education and are not enrolled in high school, or in a
high school equivalency course of instruction.
   (D) Members of a family in which the youngest child is within two
years of being ineligible for aid under this chapter because of age.

   (3) Within any target population selected by the county or
specified in paragraph (2), first priority shall be given to an
applicant or recipient who volunteers to participate in the program.
For purposes of this section, a "volunteer" is any person eligible
to participate in the program, either exempt or nonexempt, who
expresses a desire to participate.
   (4) A county may not give lesser priority to any target population
group because of estimated costs of supportive services to that
group.
   (c) The method adopted by the county shall be described in the
county plan and subject to the approval of the department pursuant to
Section 11321.2.  The plan shall also include information on local
demographic, economic, or other conditions that support the need for
the method selected.
   (d) This section shall not apply to individuals subject to Article
3.5 (commencing with Section 11331) during the time that article is
operative.   
  SEC. 77.  Section 11322.4 is added to the Welfare and Institutions
Code, to read:
   11322.4.  It is the intent of the Legislature to fund
welfare-to-work activities under this article so that all recipients
of aid under this chapter for whom participation under this article
is required can be served and, in addition, so that recipients
voluntarily participating under this article can be served.
  SEC. 78.  Section 11322.41 of the Welfare and Institutions Code is
repealed.  
   11322.41.  (a) (1) Counties shall implement this section in a
manner that does not jeopardize regular and enhanced federal funding.
  Notwithstanding any other provision of law, a county may set aside
up to 20 percent of its GAIN funding under this article for the five
fiscal years commencing with the 1995-96 fiscal year and ending with
the 2000-01 fiscal year, to establish pilot projects designed to
provide employment-related services to nonfederal targets within its
AFDC population.  Pilot projects shall begin on January 1, 1996, and
shall end on December 31, 2000.
   (2) Except as otherwise provided by this section, this article
shall apply to any pilot program implemented under this section.
   (b) Each county seeking to participate under this section shall
specify the nonfederal target population to be served in its county
GAIN plan, and shall provide to the State Department of Social
Services demographic data that clearly identify the nonfederal target
population that it wishes to serve and the reasons for selecting
this population for employment related services.  This county GAIN
plan shall include, but not be limited to, the following:
   (1) The percentage of the county allocation to be set aside.
   (2) The specific employment-related services to be provided.
   (3) The methodology for the provision of services.
   (4) Provision for an evaluation plan for determining the
effectiveness of service to the nonfederal target population.
   (c) Counties that include nonfederal targets in their county GAIN
plans are authorized to contract with a qualified organization or
qualified individuals to provide technical assistance in developing
innovative employment strategies for the nonfederal target
population.
   (d) Among the nonfederal targets that counties may seek to reach
are the following:
   (1) Recipients who have received aid under this chapter for less
than 36 months of the last 60 months.
   (2) Recipients under 24 years of age who may possess a high school
diploma but have no employment history.
   (3) Recipients between 18 and 24 years of age who have at least
one child, one to three years old, and have no employment history.
   (4) Single teen parents under 18 years of age who possess a high
school diploma, but have no employment history.
   (5) First time AFDC applicants who meet any combination of the
characteristics in paragraphs (1) to (4), inclusive.
   (e) GAIN employment-related services provided by a county to the
selected nonfederal target population identified in paragraphs (1) to
(5), inclusive, of subdivision (d) shall include:
   (1) A preliminary assessment of achievement and aptitude skills.
   (2) A written work plan for employment training and job search
activities.
   (3) Linked relationships with appropriate publicly funded
programs, agencies, and organizations including agencies funded by
federal Joint Training Partnership Act funds, the California
community colleges, the federal School-to-Work Initiative, and the
Urban Corps.
   (f) Pilot projects established pursuant to subdivision (a) shall
give priority to recipients who volunteer to receive the services
specified in subdivision (e).
   (g) Any person who is required to participate in the Cal-Learn
Program pursuant to Section 11331.5 shall not be required to
participate in any pilot program implemented pursuant to this
section.
   (h) Any person who volunteers to participate in any pilot project
established pursuant to this section shall be notified, in writing,
prior to commencement of participation, of the requirements of
program participation, and of the requirements of Section 11327.5.
   (i) A research and evaluation component shall be mandatory for the
pilot projects.
   (j) The director shall seek any federal approval necessary for
implementation of this section.
   (k) This section shall be implemented only if the director
executes a declaration, that shall be retained by the director,
stating that any federal approval, if necessary, has been obtained
for its implementation, and only for the duration of the approval.
   (l) All pilot project costs, including the costs of research and
evaluation, incurred as a result of implementation of this section,
shall be borne by the participating county from the portion of GAIN
funding set aside for this purpose.   
  SEC. 79.  Section 11322.6 of the Welfare and Institutions Code is
repealed.  
   11322.6.  As provided in the contract entered into between the
county welfare department and the participant pursuant to this
article, job services shall include, but not be limited to, all of
the following:
   (a) Job club, which shall consist of both of the following:
   (1) Job search workshops.  These job search workshops shall be
group training sessions where participants learn various job finding
skills, including training in basic job seeking skills, job
development skills, job interviewing skills, understanding employer
requirements and expectations, and how to enhance self-esteem,
self-image, and confidence.
   (2) Supervised job search, which shall include, but not be limited
to, access  to phone banks in a clean and well-lighted place, job
orders, direct referrals to employers, or other organized methods of
seeking work which are overseen, reviewed, and criticized by a
trained employment professional.  The amount and type of activity
required during this supervised job search period shall be determined
by the county and the participant, based on the participant's
employment history and need for supportive services, and shall be
consistent with regulations developed by the department.
   (b) Unsupervised job search.  The individual shall seek work in
his or her own way, and make periodic progress reports no less
frequently than every two weeks to the county welfare department or
the agency contracting with that department.
   (c) Job placement, which shall include, but not be limited to,
referrals to jobs listed by employers with the State Job Service.
   (d) Job development, which shall be active assistance in seeking
employment provided to a participant by a trained employment
professional on a one-to-one basis.
   (e) Employment counseling, which shall be counseling aimed at
helping a person reach an informed decision on an appropriate
employment goal.
   (f) (1) Individuals may be required to participate in job search
activities from the date of application for aid for an initial period
of up to eight consecutive weeks.  Following the initial period, an
individual may be required to participate in additional job search
activities not in excess of 40 days in any period of 12 consecutive
months.
   (2) Job search activities may be required in excess of the limits
specified in paragraph (1) only as part of another education,
training, or employment activity.
   (3) This subdivision is intended to implement the limitations
contained in the Family Support Act of 1988 (P.L. 100-485), and shall
not be construed to permit job search activities that are not
specifically provided for elsewhere in this article.   
  SEC. 80.  Section 11322.6 is added to the Welfare and Institutions
Code, to read:
   11322.6.  The welfare-to-work plan developed by the county welfare
department and the participant pursuant to this article shall
provide for welfare-to-work activities.  Welfare-to-work activities
may include, but are not limited to, any of the following:
   (a) Unsubsidized employment.
   (b) Subsidized private sector employment.
   (c) Subsidized public sector employment.
   (d) Work experience, which means public or private sector work
that shall help provide basic job skills, enhance existing job skills
in a position related to the participant's experience, or provide a
needed community service that will lead to employment.  Unpaid work
experience shall be limited to 12 months, unless the county welfare
department and the recipient agree to extend this period by an
amendment to the welfare-to-work plan.  The county welfare department
shall review the work experience assignment as appropriate and make
revisions as necessary to ensure that it continues to be consistent
with the participant's plan and effective in preparing the
participant to attain employment.
   (e) On-the-job training.
   (f) Grant-based on-the-job training, which means public or private
sector employment or on-the-job training in which the recipient's
cash grant, or a portion thereof, or the aid grant savings resulting
from employment, is diverted to the employer as a wage subsidy to
partially or wholly offset the payment of wages to the participant.
Grant-based on-the-job training shall include community service
positions pursuant to Section 11322.9.
   (g) Supported work or transitional employment, which means forms
of grant-based on-the-job training in which the recipient's cash
grant, or a portion thereof, or the aid grant savings from
employment, is diverted to an intermediary service provider, to
partially or wholly offset the payment of wages to the participant.
   (h) Work-study.
   (i) Self-employment.
   (j) Community service.
   (k) Adult basic education, which shall include reading, writing,
arithmetic, high school proficiency, or general educational
development certificate of instruction, and
English-as-a-second-language.  Participants under this subdivision
shall be referred to appropriate service providers that include, but
are not limited to, educational programs operated by school districts
or county offices of education that have contracted with the
Superintendent of Public Instruction to provide services to
participants pursuant to Section 33117.5 of the Education Code.
   (l) Job skills training directly related to employment.
   (m) Vocational education and training, including, but not limited
to, college and community college education, adult education,
regional occupational centers, and regional occupational programs.
   (n) Job search and job readiness assistance, which means providing
the recipient with training to learn job seeking and interviewing
skills, to understand employer expectations, and learn skills
designed to enhance an individual's capacity to move toward
self-sufficiency.
   (o) Education directly related to employment.
   (p) Satisfactory progress in secondary school or in a course of
study leading to a certificate of general educational development, in
the case of a recipient who has not completed secondary school or
received such a certificate.
   (q) Mental health, substance abuse, and domestic violence
services, described in Sections 11325.7 and 11325.8 and Article 7.5
(commencing with Section 11495), that are necessary to obtain and
retain employment.
   (r) Other activities necessary to assist an individual in
obtaining unsubsidized employment.
   Assignment to an educational activity identified in subdivisions
(k), (m), (o), and (p) is limited to those situations in which the
education is needed to become employed.
  SEC. 81.  Section 11322.61 is added to the Welfare and Institutions
Code, to read:
   11322.61.  (a) Except as provided in subdivisions (c) and (d) of
Section 11327.5, if there is any interruption in receipt of income
for an employee in a grant based on-the-job training program, as
provided for pursuant to subdivision (j) of Section 11322.6, that is
caused by an employer's conduct, the county shall ensure that a
recipient receives 100 percent of the maximum aid payment, not
counting the unpaid wages, that the assistance unit is eligible to
receive.  The payment shall be made as a supplemental grant payment.
The county shall act to recover from the employer any amount of the
grant diverted to the employer that was not paid as wages to the
recipient.  The agreement between the county and the employer
pertaining to grant based on-the-job training shall state that the
county will take action to collect from the employer the amount of
the grant diverted to the employer that was not paid as wages to the
recipient.
   (b) Pursuant to subdivision (f) of Section 11322.6, counties using
grant-based on-the-job training shall monitor the retention of
participants as employees by employers participating in grant-based
on-the-job training, and shall cancel the participation of employers
who demonstrate, over time, an unwillingness to hire recipients who
have participated in grant-based on-the-job training with that
employer.
  SEC. 82.  Section 11322.62 is added to the Welfare and Institutions
Code, to read:
   11322.62.  Employers, sponsors of training activities, and
contractors shall not discriminate against participants on the basis
of race, sex, national origin, age, or disability.
  SEC. 83.  Section 11322.65 is added to the Welfare and Institutions
Code, to read:
   11322.65.  (a) Unless otherwise specified in this chapter,
assignment to any activity otherwise authorized under this article
shall be limited in any county to the number or percentage of
participants specified under Section 407(c) of the federal Social
Security Act (42 U.S.C. Sec.  607(c)) and subsequent amendments
thereto, unless the recipient is concurrently participating in any
activities that will count for the required number of hours of
participation under federal law.
   (b) Subdivision (a) shall not apply if the statewide percentage,
as determined by the department, is less than the limits described in
federal law.
  SEC. 84.  Section 11322.7 is added to the Welfare and Institutions
Code, to read:
   11322.7.  (a) Every county shall provide an adequate range of
those activities described in Section 11322.6 to ensure each
participant's access to needed activities and services to assist him
or her in seeking employment, to provide education and training the
participant needs to find self-supporting work, and to arrange for
placement in paid or unpaid work settings that will enhance a
participant's ability to obtain unsubsidized employment.
   (b) No plan shall require job search and work experience of
participants to the exclusion of a range of activities to be offered
to recipients.
  SEC. 85.  Section 11322.8 of the Welfare and Institutions Code is
repealed.  
   11322.8.  As provided in the contract entered into between the
county welfare department and the participant pursuant to this
article, training and education services include, but are not limited
to, all of the following:
   (a) Job training, which shall include, but is not limited to,
training in employer-specific job skills in a classroom or onsite
setting, including training provided by local private industry
council programs and community colleges.
   (1) Payments to an employer for on-the-job training shall not
exceed an average of 50 percent of the wages paid by the employer to
the participant during the period of on-the-job training.
   (2) A participant in on-the-job training shall be compensated by
the employer at the same rates, including benefits and periodic
increases as similarly situated employees or trainees, but not less
than the higher of federal or state minimum wages.
   (b) (1) Preemployment preparation, which shall include work for a
public or nonprofit agency that shall help to provide basic job
skills; enhance existing job skills in a position related to a
participant's experience, training or education; or provide a needed
community service.  A preemployment preparation assignment shall not
exceed 12 months.
   (2) The participant shall continue to seek employment during the
preemployment preparation assignment and may request job search
services as described in Section 11322.6 subject to the limits
specified in subdivision (f) of Section 11322.6.
   (3) Except for persons subject to paragraph (4), the number of
hours a person participates in a preemployment preparation program
shall be determined by dividing his or her aid grant under this
chapter, less any child support paid to the county, by the average
hourly wage for all job openings received by the Employment
Development Department.  The average hourly wage shall be updated
annually every July 1.  No preemployment preparation assignment shall
exceed 32 hours per week.
   (4) If a person participates in a preemployment preparation
assignment for nine months, the number of hours that person is
required to participate shall be recomputed by the county welfare
department.  Beginning in the 10th month, the number of hours of
preemployment preparation shall be determined by dividing a person's
aid grant under this chapter, less any child support paid to the
county, by the prevailing rate of pay for the same or similar job at
the site to which the person is assigned.  In no case shall the
prevailing rate of pay fall below the average hourly wage for job
openings received by the Employment Development Department, as
provided in paragraph (3).  No preemployment preparation assignment
shall exceed 32 hours per week.
   (5) The county shall review the assignment after six months and
make revisions as necessary to ensure that it continues to be
consistent with the participant's contract and effective in preparing
the participant to attain his or her employment goal.
   (6) (A) If provided in a county plan approved pursuant to Sections
11321 and 11321.2, and to the extent federal financial participation
is available for this purpose, the county may
                             reimburse employers for the costs of
supervising participants in preemployment preparation assignments.
   (B) The cost to reimburse employers for supervision shall not
exceed 10 percent of the total costs for preemployment preparation
activities, including county, contract, or interagency agreement
costs.
   (C) The department shall seek a waiver from the United States
Department of Health and Human Services to obtain approval and
federal financial participation for purposes of this paragraph.
   (D) This paragraph shall only be operative for the duration of the
waiver, as specified in the declaration that federal approval for
the waiver has been obtained, which the director shall execute and
retain.
   (c) (1) Adult basic education, which shall include reading,
writing, arithmetic, high school proficiency or general education
development certificate instruction, and
English-as-a-second-language, including vocational
English-as-a-second-language, to the extent necessary to attain the
participant's employment goal.  Vocational
English-as-a-second-language shall be intensive instruction in
English for non-English speaking participants, coordinated with
specific job training.
   (2) Participants who need adult basic education for job training
or employment shall be referred to appropriate service providers that
include, but are not limited to, educational programs operated by
school districts or county offices of education that have contracted
with the Superintendent of Public Instruction to provide services to
participants pursuant to Section 33117.5 of the Education Code.
   (d) College and community college education, when that education
provides employment skills training that can reasonably be expected
to lead to employment.
   (e) Grant diversion, which means public or private sector
employment or on-the-job training at comparable wage rates, in which
the recipient's cash grant, or a portion thereof, or the welfare
grant savings from employment, is diverted to the employer as a wage
subsidy, subsequent to the payment of wages to the participant.
   (f) Supported work or transitional employment, which mean forms of
grant diversion in which the recipient's cash grant, or a portion
thereof, or the welfare grant savings from employment, is diverted to
an intermediary service provider, subsequent to the payment of wages
to the participant.
   (g) Grant diversion, supported work, and transitional employment
projects shall be administered so that:
   (1) The recipient shall not receive less disposable income than if
he or she had not participated in the project.  "Disposable income"
means the income available to the recipient by adding the aid payment
acquired pursuant to this chapter and earnings from the grant
diversion project and subtracting the allowable employment related
expenses.
   (2) The grant, a portion of the grant, or the estimated savings
due to the earnings from a grant diversion project may be diverted
into a special fund created by the county welfare department for this
purpose.  An employer may be reimbursed from the special fund
pursuant to a contract developed by the county welfare department or
the service delivery area with the employer.
   (3) The county shall obtain agreements with employers that
participants will be employed upon successful completion of the grant
diversion, supported work, or transitional employment period in any
related job openings, subject to the following provisions:
   (A) Employers shall not discriminate against participants on the
basis of race, sex, national origin, age, or disability.
   (B) Except as provided in subdivisions (c) and (d) of Section
11327.5, there shall be no interruption in receipt of income, whether
wages from the employer or aid payments by the department, caused by
an employer's conduct.
   (4) No grant diversion, supported work, or transitional employment
program shall be implemented under this article until a plan for
such a program is approved by the department.  No plan for grant
diversion, supported work, or transitional employment programs shall
be approved if the plan would jeopardize federal financial
participation.  Standards established by the department for purposes
of these programs shall not preclude a significant portion of
recipients from participation.
   (5) A plan submitted under paragraph (4) shall include provisions
for immediate reissuance to the recipient of any grant or portion of
a grant paid to an employer or intermediary, which has been lost due
to fraud, malfeasance, or theft on the part of the employer or
intermediary.  This plan shall also include provisions for reissuance
to the recipient of any grant or portion of a grant paid to an
employer or intermediary, when the recipient is determined to have
had good cause for declining to participate pursuant to Section
11328.  In the event that funds are lost due to fraud, malfeasance,
or theft by an employer, the county shall initiate an action to
recover from the employer or intermediary any of those funds.
   (6) To the extent required by federal law, a participant may not
be assigned to fill any established unfilled position as part of a
grant diversion, supported work, or transitional employment program.
  
  SEC. 86.  Section 11322.8 is added to the Welfare and Institutions
Code, to read:
   11322.8.  (a) Unless otherwise exempt, an adult recipient in a
one-parent assistance unit shall participate in welfare-to-work
activities for 20 hours each week beginning January 1, 1998, 26 hours
each week beginning July 1, 1998, and 32 hours each week beginning
July 1, 1999, and thereafter. In no event shall the adult recipient
participate in welfare-to-work activities less than the required
hours of participation under Section 607(c) of Title 42 of the United
States Code and any subsequent amendments thereto, for the entire
time period on aid.  A county retains the option to require all
recipients or individual recipients to participate in welfare-to-work
activities in excess of the minimum number of hours specified in
this subdivision, up to 32 hours each week.
   (b) Unless otherwise exempt, an adult recipient who is an
unemployed parent, as defined in Section 11201, shall participate in
at least 35 hours of welfare-to-work activities each week that will
meet the required hours of participation under Section 607(c) of
Title 42 of the United States Code and any subsequent amendments
thereto.  However, both parents in a two-parent assistance unit may
contribute to the 35 hours, if provided in federal law as meeting the
federal work participation requirements and if at least one parent
meets the federal one-parent work requirement applicable on January
1, 1998. To be eligible for federally funded child care under Article
15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code, both parents shall participate in work activities
that will meet the required hours of participation under Section 607
(c) of Title 42 of the United States Code and any subsequent
amendments thereto.
  SEC. 87.  Section 11322.9 is added to the Welfare and Institutions
Code, to read:
   11322.9.  (a) In accordance with the requirements of this section:

   (1) Counties may provide for community service activities for
individuals who have not completed the period specified in
subdivision (a) of Section 11454 and are not employed in unsubsidized
employment, sufficient to meet the hours of participation required
by Section 11322.8.
   (2) Counties shall provide for community service activities for
individuals who have completed the period as specified in subdivision
(a) of Section 11454, who cannot find unsubsidized employment
sufficient to meet the hours of participation required by Section
11322.8, and the county certifies that no job is currently available
to fulfill the hours required by Section 11322.8, and who continue to
meet the financial eligibility criteria for aid under this chapter.

   (b) Community service activities shall meet all of the following
criteria:
   (1) Be performed in the public and private nonprofit sector.
   (2) Provide participants with job skills that can lead to
unsubsidized employment.
   (3) Comply with the antidisplacement provisions contained in
Section 11324.6.
   (c) Participants in community service activities shall do all of
the following:
   (1) Participate in a community service activity for the number of
hours required by Section 11322.8, unless fewer hours of community
service participation are required by federal law.
   (2) Participate in other work activities for the number of hours
equal to the difference between the hours of participation in
community service and the number of hours of participation required
under Section 11322.8.
   (d) The county plan pursuant to Section 10531 shall include a
component, developed by the county in collaboration with local
private sector employers, local education agencies, county welfare
departments, organized labor, recipients of aid under this chapter,
and government and community-based organizations providing job
training and economic development, in order to identify all of the
following:
   (1) Unmet community needs that could be met through community
service activities.
   (2) The target population to be served.
   (3) Entities responsible for project development, fiscal
administration, and case management services.
   (4) The terms of community service activities, that, to the extent
feasible, shall be temporary and transitional, and not permanent.
   (5) Supportive efforts, including job search, education, and
training, which shall be provided to participants in community
service activities.
   (e) Aid under this chapter for any participant who fails to comply
with the requirements of this section without good cause shall be
reduced in accordance with Section 11327.5.
   (f) Child care as a supportive service shall be provided to
participants in community service activities pursuant to Article 15.5
(commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code, and Section 11323.2.  Other supportive services may
be provided by the county at the county's option.  However, if the
county does not provide mental health services pursuant to Section
11325.7, the county shall indicate in its county plan under Chapter
1.3 (commencing with Section 10530) how mental health services needed
by participants will be made available during participation in a
community service job.
  SEC. 88.  Section 11323 of the Welfare and Institutions Code is
repealed.  
   11323.  Participants referred to education services described in
subdivision (c) of Section 11322.8 shall receive at least 10 hours of
instruction during each week that participation is required, if
available.  Counties shall notify the department when they are unable
to provide the minimum hours of instruction.  Upon notification, the
department shall work with the State Department of Education and
California Community Colleges to secure funding so that a county can
provide the minimum level of instructional time.   
  SEC. 89.  Section 11323.1 of the Welfare and Institutions Code is
repealed.  
   11323.1.  (a) (1) A county welfare department may, as part of the
county plan required pursuant to Sections 11320.6 and 11320.8,
include a training component in which persons participating under
this article receive training in business development and
self-employment as an option under Sections 11320.8 and 11322.8.  As
part of the county plan, the county shall provide a statement of need
for this training component in that county.
   (2) (A) Where appropriate, the county welfare department shall
refer the participants to a training agency based on the assessment
required by Section 11325.4.
   (B) The county welfare department shall approve and monitor the
training program.
   (b) (1) Persons participating pursuant to this article who
indicate a desire to participate in a training component provided for
pursuant to subdivision (a) shall be carefully assessed for
self-employment skills or other relevant skills and aptitude by the
training agency, and a determination shall be made as to whether the
individual has the potential to become successfully self-employed or
obtain employment in the child care field.
   (2) The assessment made pursuant to paragraph (1) shall include an
evaluation of the viability and likelihood of success of the
individual's business idea or plan.
   (3) An assessment made pursuant to paragraph (1) shall not
discriminate against individuals on the basis of age, gender, or
ethnic origin.
   (4) If the training agency determines that the program is not
suitable for a potential participant, the training agency shall
notify the county in writing of the reasons for that determination.
   (5) All rights and responsibilities prescribed by Sections 11324.8
to 11327, inclusive, shall apply to all parties participating in the
training component.
   (c) Participants in the training program shall reflect, to the
extent possible, the ethnic, gender, and age characteristics of the
population of participants under this article in the county.
   (d) (1) The training shall consist of all of the following:
   (A) Development and evaluation of business plans.
   (B) Capitalization of small businesses.
   (C) Marketing strategies.
   (D) Business location analysis.
   (E) Direct technical assistance in the development of a small
business.
   (F) Other subjects necessary to achieve proficiency in basic
business skills, such as minor bookkeeping, necessary to successfully
operate a small business.
   (2) (A) In developing the training, the training agency shall
specify what type of direct technical assistance will be provided to
participants to aid in the development and continuing success of a
small business.
   (B) The technical assistance shall include, but need not be
limited to, business counseling and assistance in applying for loans
necessary to operate a small business.
   (e) (1) Funding for the programs implemented pursuant to this
section shall come from the Budget Act appropriation for the
implementation of this article.
   (2) When training under this section is conducted by a community
college district, reimbursement shall be provided to the district
through the regular reimbursement process for the Greater Avenues for
Independence program.
   (f) Those participants who require a capitalization loan shall
apply for the loan before the conclusion of the technical assistance
period.
   (g) For purposes of this section, the contract between the county
and the participant pursuant to Section 11325.21 shall specify the
activity to which an individual shall be reassigned if he or she does
not obtain a capitalization loan within 120 days of applying for the
loan, or, with good cause, does not complete the training provided
for in this section, or he or she fails to obtain self-employment or
other unsubsidized employment within 180 days of the completion of
the training period including technical assistance.
   (h) (1) (A) Notwithstanding Section 11328.8, for the purposes of
this section, the training provider shall be reimbursed up to 70
percent of the fixed unit price of the training costs, upon the
participant's successful completion of the training program,
including technical assistance.
   (B) Completion of training of those participants who apply for a
capitalization loan shall be deemed to occur upon completion of
classroom training and application for a loan.
   (2) At least 30 percent of the fixed unit price for the training
provided under this section shall be withheld, and progress payments
shall be made from that withheld portion upon evidence of
self-employment or employment for 30, 90, and 180 days.
   (3) For purposes of this subdivision, the department shall define
acceptable evidence of self-employment.
   (i) The training provider shall be reimbursed a pro rata share of
the 70 percent payment if the participant fails to complete the
training.
   (j) Training in child care shall be conducted by training agencies
which have an existing child development program.
   (k) (1) In order to enhance the success of the training component
authorized by this section, the department shall explore the
feasibility of excluding from participants' income and resources for
eligibility and grant purposes, certain business expenses and
resources of participants who have completed the self-employment and
business development training pursuant to this section and who have
started a business.  The department shall consult with county welfare
departments and training agencies in exploring these exclusions.
   (2) At a minimum, the department shall consider the following
exclusions:
   (A) The exclusion of a vehicle used for self-employment purposes
from available resources.
   (B) The exclusion of cash reserves reinvested into the participant'
s business from available resources.
   (C) The deduction of transportation cost, inventory, and raw
material costs from income.
   (D) The exclusion of capital expenditures from available
resources.
   (E) The deduction of loan payments from income.
   (l) For purposes of this section, "training agency" means any
agency with an established training program in self-employment,
entrepreneurship, or business development and which agrees to
participate pursuant to this section and includes, but is not limited
to, a community college or private agency.   
  SEC. 90.  Section 11323.2 of the Welfare and Institutions Code is
amended to read: 
   11323.2.  (a) Necessary supportive services shall be available to
every participant in order to participate in the program activity to
which he or she is assigned or to accept employment  , except
as otherwise provided in Section 11500   or the
participant shall have good cause for not participating under
subdivision (f) of Section 11320.3  .  As provided in the
 contract   welfare-to-work plan  entered
into between the county and participant pursuant to this article,
supportive services shall include all of the following:
   (1) Child care.   Paid  
   (A) Paid  child care shall be available to every participant
with a dependent child in the assistance unit who needs paid child
care if the child is  under 13   10  years
of age  or under,  or requires child care or supervision due
to a physical, mental, or developmental disability or other similar
condition as verified by the county welfare department, or who is
under court supervision.   A  
   (B) To the extent funds are available paid child care shall be
available to a participant with a dependent child in the assistance
unit who needs paid child care if the child is 11 or 12 years of age.

   (C) A  child in foster care receiving benefits under Title
IV-E of the federal Social Security Act (42 U.S.C.A. Sec. 670 et
seq.) or a child who would become a dependent child except for the
receipt of federal Supplemental Security Income benefits pursuant to
Title XVI of the federal Social Security Act (42 U.S.C.A. Sec.  1381
et seq.) shall be deemed to be a dependent child for the purposes of
this paragraph. 
   (D) The provision of care and payment rates under this paragraph
shall be governed by Article 15.5 (commencing with Section 8350) of
Chapter 2 of Part 6 of the Education Code.  Parent fees shall be
governed by subdivision (f) of Section 8263 of the Education Code.

   (2) Transportation costs, which shall be governed by regional
market rates as determined in accordance with regulations established
by the department.
   (3) Ancillary expenses, which shall include the cost of books,
tools, clothing  specifically required for the job  , fees,
and other necessary costs.
   (4) Personal counseling.  A participant who has personal or family
problems that would affect the outcome of the  employment
  welfare-to-work  plan entered into pursuant to
this article shall, to the extent available, receive necessary
counseling or therapy to help him or her and his or her family adjust
to his or her job or training assignment.
   (b)  (1)  If provided in a county plan 
approved pursuant to Sections 11321 and 11321.2, and to the extent
federal financial participation for purposes of this subdivision is
available  , the county may continue to provide case
management and supportive services under this section to former
participants who become subject to paragraph (8) of subdivision (b)
of Section 11320.3.  The county may provide these services for up to
the first  90 days   12 months  of
employment to the extent they are not available from other sources
and are needed for the individual to retain the employment.  

   (2) The county shall not continue to apply this option if the
number of participants it is able to serve decreases by 10 percent or
more in any year after the option is implemented.
   (3) The department shall seek any waiver from the United States
Department of Health and Human Services that is necessary to obtain
approval and federal financial participation for the services under
this subdivision.  If a waiver is necessary, this subdivision shall
only be operative for the duration of the waiver, as specified in the
declaration that federal approval for the waiver has been obtained,
which the director shall execute and retain.   
  SEC. 91.  Section 11323.4 of the Welfare and Institutions Code is
amended to read: 
   11323.4.  (a) Payments for supportive services, as described in
Section 11323.2, shall be advanced to the participant, wherever
necessary, and when desired by the participant, so that the
participant need not use his or her funds to pay for these services.
 Payments for child care services shall be made in accordance
with Article 15.5 (commencing with Section 8350) of Chapter 2 of Part
6 of the Education Code. 
   (b) The county welfare department shall take all reasonable steps
necessary to promptly correct any overpayment or underpayment of
supportive services payments to a recipient or a service provider,
including, but not limited to, all cases involving fraud and abuse,
consistent with procedures developed by the department.  The
department's procedures shall not jeopardize federal financial
participation.
   (c) Notwithstanding any other provision of this article, any
participant in on-the-job training who becomes ineligible for aid
under this chapter due to earned income, hours worked, or loss of
income disregards, shall remain a participant in the program under
this article for the duration of the on-the-job training assignment
and shall be eligible for supportive services for the duration of the
on-the-job training  , provided this duration does not exceed
the time limits otherwise applicable to the recipient  .
 Each month of child care benefits provided pursuant to this
subdivision shall reduce the number of months of transitional child
care available to participants under Section 11500. 
   (d) Notwithstanding any other provision of this article, any
participant in on-the-job training,  grant diversion
  grant-based on-the-job training , supported work,
or transitional employment who remains eligible for aid pursuant to
this chapter, shall be eligible for transportation and ancillary
expenses pursuant to paragraphs (2) and (3) of subdivision (a) of
Section 11323.2  only to the extent that federal financial
participation is available  .
   (e) (1) Participants shall be encouraged to apply for financial
aid, including educational grants, scholarships, and awards.
   (2) To the extent permitted by federal law, the county shall
coordinate with financial aid offices to establish procedures whereby
the educational expenses of participants are met through available
financial aid and the supportive services described in Section
11323.2.  These procedures shall not result in
                     duplication of payments, and shall require
determinations to be made on an individual basis to ensure that using
financial  assistance   aid  will not
prevent the person's participation in his or her  program
  welfare-to-work plan  .  
   (3) The department shall promulgate regulations to implement this
subdivision.   
  SEC. 92.  Section 11323.6 of the Welfare and Institutions Code is
repealed.  
   11323.6.  (a) The cost of child care services provided under this
article shall be governed by regional market rates.  Participants
shall be allowed to choose legal child care and the cost of that
child care shall be reimbursed by counties if the cost is within the
regional market rate.  For purposes of this section, "regional market
rate" means care costing no more than 1.5 market standard deviations
above the mean cost of care for that region.
   (b) Reimbursement to child care providers shall not exceed the fee
charged to private clients for the same service.  Reimbursement
shall be made at a rate lower than that charged to private clients
for the same service if the child care program agrees to charge a
lower fee.
   (c) Reimbursement shall be made on a per month, per week, per day,
or per hour basis depending upon the basis used to charge private
clients for the same service.
   (d) (1) For purposes of this article, regional market rates shall
be determined in accordance with resource and referral programs
provided for under Article 2 (commencing with Section 8210) of
Chapter 2 of Part 6 of the Education Code, and the Alternative
Payment Program provided for under Article 3 (commencing with Section
8220) of Chapter 2 of Part 6 of the Education Code.  Participant
plans shall include immediate referrals to local resource and
referral agencies, as appropriate.
   (2) Counties shall not be bound by the child care rate limits
described in subdivision (a) when the care is provided in a region
where there are no more than two child care providers of the type
needed by the participant.
   (e) (1) Day care by family members shall be encouraged, but the
choice between licensed or exempt day care arrangements shall be made
by the recipient.
   (2) Reimbursement shall not be made for child care services when
care is provided by parents, legal guardians, or members of the
assistance unit, including, but not limited to, essential persons.
   (f) A child care provider located on an Indian reservation and
exempted from state licensing requirements shall meet the conditions
specified in Section 11324 and applicable tribal standards. 
  
  SEC. 93.  Section 11323.6 is added to the Welfare and Institutions
Code, to read:
   11323.6.  The department shall be responsible for supervising the
provision of child care by counties during stage one as described in
Sections 8350, 8351, and 8352 of the Education Code.  Counties may
contract with public and private child care entities or providers for
this purpose.
  SEC. 94.  Section 11323.8 of the Welfare and Institutions Code is
repealed.  
   11323.8.  (a) Each county may contract with public and private
child care programs to provide any or all of the services specified
in this section.
   (b) County welfare departments shall be encouraged to contract
with existing service providers for any or all child care services
arrangements made pursuant to this article.  If the county welfare
department elects to contract with any child care provider which is
also under contract with the State Department of Education, these
contracts shall be consistent with, and shall not supersede, all of
the following:
   (1) Chapter 2 (commencing with Section 8200) of Part 6 of the
Education Code.
   (2) Applicable provisions of Title 5 and Title 22 of the
California Code of Regulations.
   (3) Applicable State Department of Education contract provisions.

   (c) In order to provide maximum choice to parents, and to ensure
the availability of child care, each county shall do all of the
following:
   (1) Assist participants to locate child care during and after
participation under this article.
   (2) Allow and promote parent choice by providing flexibility in
child care arrangements and establishing payment arrangements, as
necessary, to meet the cost of licensed or exempt child care
settings.
   (3) Assist in the development of new child care capacity, where
needed.
   (4) Provide for the continuity of child care during the
participant's postprogram transition period consistent with Section
11500.
   (5) Provide services to meet the child care needs of all dependent
children in the participant's family, pursuant to subdivision (a) of
Section 11323.2.
   (6) Provide child care to participants whose program demands
flexible hours of care including evening, weekends, and split shifts.

   (7) To the extent possible provide for transportation of children
from school  to care, if reasonable and necessary.
   (d) Resource and referral programs, as specified in subdivision
(d) of Section 11323.6, shall assist the county welfare departments
to determine the child care needs of program participants, provide
them with a listing of available child  care services in the service
area, and facilitate the efforts of county welfare departments,
school districts, local child care providers and parent groups for
the expansion of child care services.   
  SEC. 95.  Section 11323.8 is added to the Welfare and Institutions
Code, to read:
   11323.8.  Counties shall manage the participant's transition from
stage one to stage two child care pursuant to Article 15.5
(commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code.  If the county is operating stage two child care, the
county shall manage the participant's transition from stage two to
stage three pursuant to Article 15.5 (commencing with Section 8350)
of Chapter 2 of Part 6 of the Education Code.
  SEC. 96.  Section 11324 of the Welfare and Institutions Code is
amended to read: 
   11324.  (a) If the county welfare department or a contractor pays
for child care services which are exempt from licensure, all of the
following information about the care giver shall be on file with the
county welfare department or the contractor and shall be made
available to the participant:
   (1) The name and address of the care provider.
   (2) The address where care is to be provided.
   (3) The hours care is to be provided and the charge for this care.

   (4) The names, addresses, and telephone numbers of two character
references.
   (5) A copy of a valid California driver's license or other
identification to establish that the care giver is at least 18 years
old.
   (6) A statement from the caregiver as to his or her health
education, experience or other qualification, criminal record, and
names and ages of other persons in the home or providing care.
   (b) The county welfare department or the contractor shall 
utilize   use  existing child care licensing or
 Greater Avenues for Independence   CalWORKs
 program procedures in meeting the requirements of subdivision
(a).
   (c) To the extent permitted by federal law, the county welfare
department shall deny payment, or cause the contractor to deny
payment, for child care services which are exempt from licensure if
either of the following apply:
   (1) The provider has been convicted of a violent felony, as
defined in subdivision (c) of Section 667.5 of the Penal Code.
   (2) The provider has been convicted of child abuse.
   (d) If the child care provider selected by the participant is
denied payment, the participant may have good cause for not
participating as specified in  subdivision (i) of Section
11328   paragraph (3) of subdivision (f) of Section
11320.3  .   
  SEC. 97.  Section 11324.2 of the Welfare and Institutions Code is
repealed.  
   11324.2.  A preemployment preparation position utilized pursuant
to this article may not be created as the result of, or may not
result in, any of the following:
   (a) (1) Displacement of current employees, including overtime
currently worked by these employees.
   (2) Displacement shall include partial displacement, including,
but not limited to, a reduction in hours of nonovertime work, wages,
or employment.
   (b) The filling of established unfilled positions, unless the
positions are unfunded in a public agency budget.
   (c) The filling of positions which would otherwise be promotional
opportunities for current employees.
   (d) The filling of a position, prior to compliance with applicable
personnel procedures or provisions of collective bargaining
agreements.
   (e) The filling of a position created by termination, layoff, or
reduction in workforce.
   (f) The filling of a work assignment customarily performed by a
worker in a job classification within a recognized collective
bargaining unit in that specific worksite, or the filling of a work
assignment in any bargaining unit in which funded positions are
vacant or in which regular employees are on layoffs.
   (g) A strike, lockout, or other bona fide labor dispute, or
violation of any existing collective bargaining agreement between
employees and employers.   
  SEC. 98.  Section 11324.4 of the Welfare and Institutions Code is
amended to read: 
   11324.4.  (a) The  employer or  sponsor of  a
preemployment preparation assignment   an employment or
training program position described in Section 11322.6 or 11322.9 or
any positions created under any county pilot project  shall
assist and encourage qualified  preemployment preparation
 participants to compete for job openings occurring within
the sponsor's organization for which they qualify.
   (b) Workers assigned to public agencies shall be allowed to
participate in classified service examinations equivalent to the
positions they occupy, as well as all open and promotional
examinations for which experience in the position or other relevant
experience is qualifying under merit system rules.  To the extent
permitted under federal or state law, local ordinance, or applicable
collective bargaining agreements, time worked in the 
preemployment preparation  positions shall apply toward
seniority in the merit public agency positions.   
  SEC. 99.  Section 11324.5 of the Welfare and Institutions Code is
amended to read: 
   11324.5.  The county shall ensure that the labor union is notified
of the use of participants assigned to  preemployment
preparation, short-term work experience, on-the-job training, or any
activity funded by grant diversion   an employment or
training program position described in Section 11322.6 or 11322.9 or
any positions created under any county pilot project  , in any
location or work activity controlled by an employer and covered by a
collective bargaining agreement between the employer and a union.
For nonunionized employees, procedures shall provide for notification
to employees of the use of  GAIN  participants 
under this article  and the availability of the grievance
process.  Display of a poster shall satisfy this requirement.   
  SEC. 100.  Section 11324.6 of the Welfare and Institutions Code is
amended to read: 
   11324.6.  Any employment or training program position 
created pursuant to this article, other than a preemployment
preparation position   described in subdivisions (a) to
(l), inclusive, of Section 11322.6 or Section 11322.9 or under any
county pilot project  ,  may   shall 
not be created as a result of, or  may   shall
 not result in, any of the following:
   (a) Displacement or partial displacement of current employees,
including, but not limited to, a reduction in hours of nonovertime
and overtime work, wages, or employment benefits.
   (b) The filling of positions which would otherwise be promotional
opportunities for current employees , except when positions are
to be filled through an open process in which recipients are provided
equal opportunity to compete  .
   (c) The filling of a position, prior to compliance with applicable
personnel procedures or provisions of collective bargaining
agreements.  
   (d) The filling of established unfilled public agency positions,
unless the positions are unfunded in a public agency budget. 

   (d)  
   (e)  The filling of a position created by termination,
layoff, or reduction in work force, caused by the employer's intent
to fill the position with a subsidized position pursuant to this
article.  
   (e)  
   (f)  A strike, lockout, or other bona fide labor dispute, or
violation of any existing collective bargaining agreement between
employees and employers.  
   (g) The filling of a work assignment customarily performed by a
worker in a job classification within a recognized collective
bargaining unit in that specific worksite, or the filling of a work
assignment in any bargaining unit in which funded positions are
vacant or in which regular employees are on layoff.
   (h) The termination of a contract for services, prior to its
expiration date, that results in the displacement or partial
displacement of workers performing contracted services, caused by the
employer's intent to fill the position with a subsidized position
pursuant to this article.
   (i) The denial to a participant or employee of protections
afforded other workers on the worksite by state and federal laws
governing workplace health, safety, and representation.
   (j) Subdivisions (b), (d), and (g) shall not apply to unsubsidized
employment placements.   
  SEC. 101.  Section 11324.7 of the Welfare and Institutions Code is
amended to read: 
   11324.7.  (a) The department shall provide a grievance process for
regular employees and their representatives who wish to file a
complaint that an assignment to  preemployment preparation
  community service  , work experience, on-the-job
training, or any activity funded by  grant diversion
  grant-based on-the-job training  violates any of
the displacement provisions contained in  Section 11324.2,
 Section 11324.6  , or paragraph (6) of subdivision
(g) of Section 11322.8  , as applicable, respecting any
employment or training position created pursuant to this article.
   (b) (1) The grievance process established pursuant to subdivision
(a) shall consist of an informal procedure followed by a hearing if
the informal procedure fails to resolve the complaint to the
satisfaction of the complainant.
   (2) The grievance process shall be conducted in accordance with
rules and notification requirements adopted and promulgated in
federal law that also provides for an appeal process to the United
States Department of Labor.
   (3) The department shall issue instructions and requirements for
the grievance process.
   (c) The department shall administer the employee grievance process
either directly or through the county welfare departments, or may
enter into agreements with another state agency to administer all or
any part of the grievance process.
   (d) Notwithstanding subdivisions (b) and (c), the department shall
require the use of any existing grievance procedure that is part of
a collective bargaining agreement between the employer and the labor
union representing the regular employee, in lieu of the process
established by this section.
   (e) Remedies for complaining regular employees in the process
established by this section shall include, where appropriate,
reinstatement, retroactive pay, and retroactive benefits.   
  SEC. 102.  Section 11324.8 of the Welfare and Institutions Code is
amended to read: 
   11324.8.  (a) At the time an individual applies for aid under this
chapter, or at the time a recipient's eligibility for aid is
determined, the county shall do all of the following:
   (1) Provide the individual, in writing and orally as necessary,
with at least the following program information:
   (A) A general description of the education, employment, and
training opportunities and the supportive services available,
including transitional benefits.
   (B) A description of the exemptions from required participation
provided under this article and the consequences of a refusal to
participate in program components, if not exempt.
   (C) A description of the responsibility of the participant to
cooperate in establishing paternity and enforcing child support
obligations, and to assist individuals in establishing paternity and
obtaining child support as a condition of eligibility.
   (2) Determine whether the individual is required to 
register for   participate in  the program provided
under this article.   At the time the determination is made,
any individual who is deemed to be required to register under this
article shall immediately register with the county welfare
department. 
   (b) At the time an individual  registers   is
required to participate  pursuant to this article, he or she
shall receive a written preliminary determination that he or she is a
member of a targeted group, for purposes of any applicable and
operative federal Targeted Jobs Tax Credit and California Jobs Tax
Credit.   With respect to any person required to register
under this article, registration pursuant to this section shall be a
condition of eligibility for aid under this chapter, except that any
delay in registration due to circumstances beyond the control of the
individual shall not adversely affect his or her eligibility for aid
under this chapter. 
   (c)  The recipient may appeal a determination that he or
she is required to register under this article or sign a contract
pursuant to Section 11325.21, through the procedures set forth in
Chapter 7 (commencing with Section 10950) of Part 2.
   (d)  Persons not required to  register 
 participate  may volunteer to participate.  
   (e)  
   (d)  An applicant for, or a recipient of, aid who is
dissatisfied with the  terms of the contract  
provisions of the welfare-to-work plan  may seek redress through
conciliation, as described in Section 11327.4.  
   (f) (1) In accordance with procedures specified by the department,
the county shall allow individuals to express their desire to
participate in the program and provide instructions on how to enter
the program.
   (2) Notwithstanding paragraph (1), an indication of preference not
to participate shall not exempt individuals required to register for
the program from participation in the program.   
  SEC. 103.  Section 11325 of the Welfare and Institutions Code is
repealed.  
   11325.  (a) Persons who are not exempt but who meet the following
criteria shall not be required to participate in program components,
beyond appraisal as specified in Section 11325.2, until the county
welfare department determines that the situation that permits
nonparticipation no longer exists:
   (1) (A) A person who, at the time of appraisal, is enrolled on a
full-time basis in a program to earn a license, certificate, or
degree that will lead to employment.
   (B) If the county welfare department does not agree that the
program will lead to employment, the registrant shall be allowed to
continue in the program if sufficient documentation can be shown to
demonstrate that the program will lead to employment.  Any of the
following shall be proof that a program leads to employment:
   (i) A signed statement that an employer will give the person a job
upon program completion.
   (ii) A list of three employers who have frequent openings in the
occupation pursued by the participant at a skill level that can be
achieved by the participant through skill training components offered
by the program.
   (iii) A statement from a school district, community college,
university, service delivery area, or employment development office
stating that the program will lead to employment.
   (C) If the individual is attending less than full time at the time
of appraisal but agrees to full-time attendance as soon as possible,
he or she shall be considered to be attending on a full-time basis.

   (D) A person subject to this subdivision shall participate on a
full-time basis and make satisfactory progress in that program
according to the standards of the provider.
   (E) A person may participate on a less than full-time, but not
less than half-time, basis if full-time participation is not feasible
due to good cause, as defined in Section 11328.
   (2) A person who is so seriously dependent upon alcohol or drugs
that work or training is precluded.  This paragraph shall not apply
in a county that has included the option in subdivision (b) in its
county plan.
   (3) A person who is having an emotional or mental problem that
precludes participation.
   (4) A person who is involved in legal difficulties, such as
court-mandated appearances that preclude participation.
   (5) A person who does not have the legal right to work in the
United States.
   (6) A person who has a severe family crisis.
   (7) A person who is in good standing in a union that controls
referrals and hiring in the occupation.
   (8) A person who is temporarily laid off from a job with a
definite callback date.
   (9) A person, or a family member, has a medically verified
illness.
   (10) A woman in the first trimester of pregnancy.
   (11) A person who lacks the necessary child care for children
described in paragraph (1) of subdivision (a) of Section 11323.2 or
for children described in that paragraph who are not members of the
assistance unit, or a person who lacks necessary transportation.
   (12) A person who is employed for 15 or more hours per week and
meets all of the following criteria:
   (A) The individual is earning at least the state or federal
minimum wage, whichever is higher.  This requirement shall apply to
the net earnings of a self-employed individual, and it shall not
apply during the first six months of self-employment or employment
compensated by commission.
   (B) The individual is also participating in activities approved by
the county welfare department that are similar to job search,
education, or training activities in the program.  This requirement
may be met by making satisfactory progress while participating in an
education or training program to earn a license, certificate, or
degree that will lead to employment, if the person is enrolled in the
program on at least a half-time basis by the provider's standards.
If the county welfare department does not agree that the program will
lead to employment, the registrant shall be permitted to continue in
the program if sufficient documentation can be shown through the
process described in subparagraph (B) of paragraph (1) to demonstrate
that the program will lead to employment.
   (C) The combined hours of employment and participation in other
approved activities shall equal at least 30 hours per week.
   (b) (1) If provided in the county plan approved by the department,
the county shall permit participation to be deferred by a person who
is seriously dependent upon alcohol or drugs only if the individual
participates in, or actively pursues access to, an alcohol or drug
treatment program that is licensed, certified, or has a contract with
the state or county.  The county plan shall describe the available
treatment programs, including programs providing services that are
appropriate to the needs of women with children.
   (2) Notwithstanding paragraph (1), a person shall not be required
to participate in an alcohol or drug treatment program that is
licensed, certified, or has a contract with the state or county to
receive this deferral when any of the following conditions exist:
   (A) The person is on a waiting list to participate in a program.
   (B) The necessary child care services are not available.
   (C) There is no treatment program available that is appropriate to
the individual's needs, as defined by the department in regulations.

   (3) A person who refuses to pursue the treatment required as a
condition for this deferral, and who subsequently fails or refuses to
comply with program requirements, shall not have good cause for
noncompliance on the basis of his or her drug or alcohol dependence.

   (c) Participation of an individual who, upon entering GAIN, is
attending a self-initiated program that does not meet the approval
criteria in paragraph (1)
          of subdivision (a) or in Section 11325.23 may be deferred
in order to permit completion of the program semester, quarter, or
increment of not more than six months.
   (d) The department shall promulgate regulations that specify when
the county welfare department shall determine whether an individual
meets any of the criteria listed in subdivisions (a), (b), and (c).
   (e) This section shall not apply to individuals subject to Article
3.5 (commencing with Section 11331), during the time that article is
operative.
   (f) For all other registrants, the county shall develop an
employment plan.
   (g) The county welfare department shall review the deferral for
its continuing appropriateness in accordance with the projected
length of the deferral, but not less than every 12 months.  The
participant shall cooperate with the county welfare department and
provide information, including written documentation, as required to
complete the deferral review.   
  SEC. 104.  Section 11325.1 is added to the Welfare and Institutions
Code, to read:
   11325.1.  When child care services are provided by a program
funded under Article 25 (commencing with Section 8498.1) of Chapter 2
of Part 6 of the Education Code to a recipient under this article or
any other job training program for recipients under this chapter,
and the job training program utilizes vouchers for child care
services issued by the county or a contracting agency, reimbursement
for those child care services shall be made at a market rate
established by the State Department of Education pursuant to Article
15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code.
  SEC. 105.  Section 11325.2 of the Welfare and Institutions Code is
amended to read: 
   11325.2.  (a) At the time a  registrant 
recipient  enters the  welfare-to-work  program, the
county shall conduct an appraisal  ,  pursuant to
regulations adopted by the department  , during which the
recipient is informed of the requirement to participate in training
opportunities available to a participant, and available supportive
services  .   At a minimum, the   The 
appraisal shall provide information about the  registrant
  recipient  in the following areas:
   (1) Employment history  and skills  .
   (2)  Need for basic education services due to a lack of
basic literacy or mathematics skills, a high school diploma or its
equivalent, or English language skills.
   (3) Need for a delay in program participation pursuant to Section
11325.
   (4)  Need for supportive services as described in Section
11323.2.
   (b) This section shall not apply to individuals subject to Article
3.5 (commencing with Section 11331) during the time that article is
operative.   
  SEC. 106.  Section 11325.21 of the Welfare and Institutions Code is
amended to read: 
   11325.21.  (a) Any individual who  enters the program
  is required to participate in welfare-to-work
activities  pursuant to this article shall enter into a written
 contract   welfare-to-work plan  with the
county welfare department  after assessment as required by
subdivision (b) of Section 11320.1, except as provided for in Section
11320.3  .  The plan shall include the activities and
services that will move the individual into employment. 
   (b) The county shall allow the participant three working days
after  signing   completion of  the
 contract   plan  or subsequent amendments
to the  contract   plan  in which to
evaluate and request changes to the terms of the  contract
  plan  .
   (c) The  contract   plan  shall be
written in clear and understandable language, and have a simple and
easy-to-read format.
   (d) The  contract   plan  shall contain
at least all of the following general information:
   (1) A general description of the program provided for in this
article, including available program components and supportive
services.
   (2) A general description of the rights, duties, and
responsibilities of program participants, including a list of the
exemptions from the required participation under this article, the
consequences of a refusal to participate in program components, and
criteria for successful completion of the program.
   (3) A description of the grace period required in paragraph
 (6)   (5)  of subdivision (b) of Section
11325.22.
   (e) The  contract   plan  shall specify,
and shall be amended to reflect changes in, the participant's
 employment goal   welfare-to-work activity
 , a description of services to be provided in accordance with
Sections 11322.6, 11322.8, and 11323.1 as needed  to attain
the goal  , and specific requirements for successful
completion of assigned activities including required hours of
participation.
   The  contract   plan  shall also include
a general description of supportive services pursuant to Section
11323.2 that are to be provided as necessary for the participant to
complete assigned program activities.
   (f) Any assignment to a program component shall be reflected in
the  contract   plan  or an amendment to
the  contract   plan  .   The
county and the recipient shall be bound by the terms of the contract
or any amendments thereto.   The participant shall maintain
satisfactory progress toward  the goal of 
employment through the methods set forth in the  contract,
  and the county shall provide the services
specified in the contract, except that the county shall not be bound
by the terms of a contract between the participant and another county
  plan, and the county shall provide the services
pursuant to Section 11323.2  .
   (g)  A participant shall not be placed involuntarily in
any other training or education component while waiting to begin
participating in an assignment specified in the contract.
   (h)  This section shall not apply to individuals subject
to Article 3.5 (commencing with Section 11331) during the time that
article is operative.   
  SEC. 107.  Section 11325.22 of the Welfare and Institutions Code is
amended to read: 
   11325.22.  (a) (1) Following the appraisal required by Section
11325.2, all participants except those described in paragraph
 (2)   (4)  of this subdivision, shall be
assigned to participate for a period of  three  
up to four consecutive  weeks in job search  services
  activities  .  These  services 
 activities  may include  any of the services
described in Section 11322.6 that are appropriate to the participant'
s needs   the use of job clubs to identify the
participant's qualifications.  The county shall consider the skills
and interests of the participants in developing a job search strategy
 .  The period of job search  services  
activities  may be shortened if the participant and the county
agree  , in writing in the participant contract, 
that further  services   activities  would
not be beneficial.   The period of job search services may be
extended up to the limits specified in subdivision (f) of Section
11322.6 if the county and the participant agree, in writing in the
participant contract, that continued job search efforts are likely to
lead to employment   Job search activities may be
shortened for a recipient if the county determines that the recipient
will not benefit because he or she may suffer from an emotional or
mental disability that will limit or preclude the recipient's
participation under this article  .
   (2)  The following individuals shall not be required, but
may be permitted, to participate in job search services as their
first program assignment following appraisal:
   (A)   Nothing in this section shall require
participation in job search activities, the schedule for which
interferes with unsubsidized employment or participation pursuant to
Section 11325.23.  
   (3) Job search activities may be required in excess of the limits
specified in paragraph (1) on the basis of a review by the county of
the recipient's performance during job search to determine whether
extending the job search period would result in unsubsidized
employment.  
   (4)  A person subject to  Article 3.5 (commencing with
Section 11331) or  subdivision (d) of Section 11320.3 shall be
required to participate in job search  services 
 activities  as provided in paragraph (1) upon earning a
high school diploma or its equivalent, if she or he has not already
taken the option to complete these  services  
activities  as the first program assignment following appraisal
 shall not be required, but may be permitted, to participate in
job search activities as his or her first program assignment
following appraisal  .  
   (B) A person who has been determined by the county pursuant to
regulations developed by the department to lack the skills or
education necessary to succeed in even the most unskilled employment.
  The individual shall be required to participate in job search
services as provided in paragraph (1) when the participant and county
agree in writing in the participant contract that sufficient skills
and education have been acquired to enable the individual to benefit
from those services.  This requirement shall not apply to a
participant who has already taken the option to complete these
services as the first program activity following appraisal.
   (C) A person who is enrolled in, or attending in good standing, an
approved self-initiated program as specified in Section 11325.23.
 
   (D) A person who has participated in job search activities under
an employment program within the previous six months, if the county
determines that another period of job search would not be beneficial.

   (E) A person who has returned to the county's program under this
article within a two-year period, has only participated in appraisal
and the services provided in this subdivision, and has held, but not
retained, two or more jobs during the two-year period.
   (F) A person who expresses a desire to be assigned to a basic
education activity if the individual lacks a high school diploma or
its equivalent and has held, but not retained, two or more jobs
during the two-year period prior to appraisal.  This person shall be
required to participate in job search services as provided in
paragraph (1) upon earning a high school diploma or its equivalent,
if he or she has not already taken the option to complete these
services as the first program assignment following appraisal.

   (b) (1) Upon the completion of job search  services
  activities  , or a determination that those
 services   activities  are not required in
accordance with paragraph  (2)  (3)  of
subdivision (a), the participant shall be assigned to one or more of
the activities described in Section  11322.8 and 11323.1
  11322.6  as needed to attain  his or her
 employment  goal  .
   (2) (A) The assignment to one or more of the program activities as
required in paragraph (1) of this subdivision shall be based on the
 employment plan   welfare-to-work plan 
developed pursuant to an assessment as described in Section 11325.4.
The  employment  plan shall be based, at a minimum,
on consideration of the individual's existing education level,
employment experience and  relevant  employment 
goals   skills  , available program resources, and
local labor market opportunities.
   (B) An assessment shall be performed upon completion of job search
 services   activities  or  a
determination that those services are not required as the first
activity.  For an assignment to training in business development and
self-employment, the assessment shall be performed   at
such time as it is determined that job search will not be beneficial
 as required in Section  11323.1   11325.4
 .
   (C) Notwithstanding subparagraphs (A) and (B), an assessment shall
not be required to develop  an employment plan 
 a welfare-to-work plan  for a person who is participating
in an approved self-initiated program pursuant to Section 11325.23
 unless the county determines that an assessment is necessary to
meet the hours specified in Section 11325.23  .
   (3) A participant who lacks basic literacy or mathematics skills,
a high school diploma or general educational development certificate,
or English language skills, shall be assigned to participate in
adult basic education as described in subdivision (c) of Section
11322.8, as appropriate and necessary for achievement
  removal  of the individual's  barriers to
 employment  goal  .
   (4)  A participant shall not be assigned to a program
component provided in Section 11322.8, excluding activities described
in subdivision (c) of Section 11322.8, that exceeds two years or,
with respect to classroom education or training, two academic years.
The two-year period may be extended, one time only, for a period not
to exceed six months if it is reasonable to expect that the
component will be completed within the extended period and the
individual has been unable to complete the component due to any of
the following circumstances:
   (A) The individual's basic skills needs required more class time
than was estimated at the commencement of the component.
   (B) The school or college did not offer required classes in a
sequence that permitted completion of the component program within
the prescribed time period.
   (C) The individual had a personal or family crisis that resulted
in the inability to complete the component without the additional
six-month period of attendance.
   (D) The individual worked a minimum of 10 hours per week in
employment paying at least the state or federal minimum wage,
whichever is greater, for no less than six months while participating
in the assigned program.
   (5) (A)  Participation in activities assigned pursuant to
this section may be sequential or concurrent.  The county may
require concurrent participation in the assigned activities if it is
appropriate to the participant's abilities, consistent with the
participant's  employment   welfare-to-work
 plan, and the activities can be concurrently scheduled.

   (B) The combined hours of participation in assigned concurrent
activities shall not exceed 32 hours per week   for
an individual who has primary responsibility for personally providing
care to a child under six years of age, or 40 hours per week for any
other individual  .  
   (6)  
   (5)  The participant has 30 days from the beginning of
 a   the initial  training or education
assignment in which to request a change or reassignment to another
component.  The county shall grant the participant's request for
reassignment if another  component   assignment
 is available  , or expected to be available within a
reasonable period of time,  that is consistent with the
participant's  employment   welfare-to-work
 plan  and the county determines the other assignment will
readily lead to employment  .  This grace period shall be
available only once to each participant.  
   (7) In the case of an individual who is an applicant for aid under
this chapter and who is required to register pursuant to this
article, mandated activities shall be limited to those necessary to
enter into a written contract as specified in Section 11325.21, and
to participation in job services as specified in subdivision (a) of
this section. 
   (c) Any assignment or change in assignment to a program activity
pursuant to this section shall be included in the 
participant contract   welfare-to-work plan  , or
an amendment to the  contract   plan  , as
required in Section 11325.21.
   (d)  If unsubsidized employment is not obtained upon
completion of activities included in the employment plan, including
any plan that provides for a self-initiated program as described in
Section 11325.23, the participant shall be assigned to job search
services for a period not to exceed the limits set in subdivision (f)
of Section 11322.6.  These services may include any of the services
described in Section 11322.6 that the county determines are
appropriate to the participant's needs.
   (e) (1) A participant who has not yet received an assessment and
has not obtained unsubsidized employment upon completion of the job
search services required in subdivision (d) shall be referred to
assessment pursuant to Section 11325.4.  Based on the employment plan
developed as a result of the assessment, the participant may be
assigned to additional program activities in accordance with
subdivision (b).
   (2)  A participant who has not obtained unsubsidized
employment upon completion of the activities in  an
employment   a welfare-to-work  plan developed
pursuant to  an assessment and  the job search
 services   activities and an assessment 
required by subdivision (d)   (a)  shall be
referred to  reappraisal   assessment  as
described in Section 11326  , unless he or she is required to be
assigned to community service pursuant to Section 11322.9  .

   (f) Notwithstanding subdivisions (a) to (e), inclusive, the
department shall adopt regulations or policies, as required by
federal law, that specify the participation requirements with which
one parent in a family eligible for aid under this chapter due to the
unemployment of the principal wage earner is required to comply.
   (g)  
   (e)  The criteria for successful completion of an assigned
education or training activity shall include regular attendance,
satisfactory progress, and completion of the assignment.  A person
who fails or refuses to comply with program requirements for
participation in the activities assigned pursuant to this section
shall be subject to Sections 11327.4 and 11327.5.  
   (h)  
   (f)  This section shall not apply to individuals subject to
Article 3.5 (commencing with Section 11331) during the time that
article is operative.  
  SEC. 108.  Section 11325.23 of the Welfare and Institutions Code is
repealed.  
   11325.23.  (a) (1) Any individual who, at the time of appraisal,
is enrolled in, or attending in good standing, a self-initiated
educational or vocational training program that is likely to lead to
unsubsidized employment in an occupation in demand may continue to
participate in that program until completion of the program for a
period not to exceed two years from the date the contract reflecting
the self-initiated program is signed.
   (2) The individual's program shall be scheduled to be completed
within the two-year period.  The two-year period may be extended, one
time only, for a period not to exceed six months if it is reasonable
to expect that the self-initiated program will be completed within
the extended period and the individual has been unable to complete
the component due to any of the following circumstances:
   (A) The individual's basic skills needs required more class time
than was estimated at the commencement of the program.
   (B) The school or college did not offer required classes in a
sequence that permitted completion of the self-initiated program
within the prescribed time period.
   (C) The individual had a personal or family crisis that resulted
in the inability to complete the program without the additional
six-month period of attendance.
   (D) The individual worked a minimum of 10 hours per week in
employment paying at least the state or federal minimum wage,
whichever is greater, for no less than six months while participating
in the assigned program.
   (b) In order to continue in a self-initiated training or education
program, an applicant for, or recipient of, aid under this chapter
shall need the education or training in order to become employable in
unsubsidized employment.  Any individual who meets either of the
following criteria shall be deemed to be employable:
   (1) Possesses a baccalaureate degree.
   (2) Has the education or job skills necessary to obtain
unsubsidized employment in an occupation in demand that will provide
the individual with an income at least equal to two times the federal
poverty line for the appropriate family size.  A county may waive
this requirement if an individual is able to demonstrate that, due to
compelling personal circumstances, employment in the previous
occupation is not realistic including, but not limited to, a
work-related disability, inability to obtain required union
membership, or hours of employment that cause a severe hardship on
the recipient's family.
   (c) (1) Supportive services reimbursement shall be limited to
child care and transportation for any participant in a self-initiated
training or education program approved under this subdivision.  This
reimbursement shall be provided if no other source of funding for
those costs is available.
   (2) Any offset to supportive services payments shall be made in
accordance with subdivisions (d) and (e) of Section 11323.4.
   (d) (1) In order to continue in a self-initiated training or
education program, a GAIN participant shall be attending at least
full time and shall make satisfactory progress as periodically
measured according to the standards of the program in which the
individual is enrolled.  If the individual is attending less than
full time upon entry into GAIN but she or he agrees to full-time
attendance as soon as possible, the individual shall be considered to
be attending on a full-time basis.
   (2) A GAIN participant may participate on less than a full-time
basis, but not less than on a half-time basis, if full-time
participation is not feasible due to good cause as defined in Section
11328.
   (e) Participation in the self-initiated education or vocational
training program shall be reflected in the contract required by
Section 11325.21.  The contract shall provide that whenever an
individual ceases to participate in, refuses to attend regularly, or
does not maintain satisfactory progress in the self-initiated
program, the individual shall participate in the program in
accordance with Section 11325.22.
   (f) Any person whose previously approved self-initiated education
or training program is interrupted for reasons that meet the good
cause criteria specified in Section 11328 may resume participation in
the same program if the participant maintained good standing in the
program while participating and the self-initiated program continues
to meet the approval criteria.  The county shall adjust the
completion date of the program accounting for the time of absence to
allow the participant a cumulative total of two years to complete the
program.
   (g) If the individual has not obtained unsubsidized employment
upon completion of the self-initiated program, the individual shall
participate in accordance with subdivisions (d) and (e) of Section
11325.22.
   (h) In the event a county welfare department does not agree that
the participant's occupational goal is likely to lead to employment,
the participant shall be permitted to continue pursuing that goal if
sufficient documentation can be shown to demonstrate that the local
labor market provides reasonable opportunities to work in the desired
occupation.  The county welfare department shall give participants
whose self-initiated plan has been denied the chance to demonstrate
that the local labor market presents job opportunities in the chosen
occupation.  Proof that job opportunities exist include, but are not
limited to:
   (1) A signed statement that an employer will give the person a job
upon program completion.
   (2) A list of three employers who have frequent openings in the
occupation pursued by the participant and at a skill level that can
be achieved by the participant through skill training components
offered by the program.
   (3) A statement from a school district, community college
district, service delivery area, or Employment Development Department
office identifying the occupation as a demand occupation in the
local labor market.
   (i) Notwithstanding subdivision (a) to (g), inclusive, the
department shall adopt regulations or policies, as required by
federal law, that specify the participation requirements with which
one parent in a family eligible for aid under this chapter due to the
unemployment of the principal wage earner is required to comply.
   (j) This section shall not apply to individuals subject to Article
3.5 (commencing with Section 11331) during the time that article is
operative.   
                            SEC. 109.  Section 11325.23 is added to
the Welfare and Institutions Code, to read:
   11325.23.  (a) (1) Except as provided in paragraph (2), any
student who, at the time he or she is required to participate under
this article pursuant to Section 11320.3, is enrolled in any
undergraduate degree or certificate program that leads to employment
may continue in that program within the time period specified in
subdivisions (a) and (d) of Section 11454 if he or she is making
satisfactory progress in that program, the county determines that
continuing in the program is likely to lead to self-supporting
employment for that recipient, and the welfare-to-work plan reflects
that determination.
   (2) Any individual who possesses a baccalaureate degree shall not
be eligible to participate under this section unless the individual
is pursuing a California regular classroom teaching credential in a
college or university with an approved teacher credential preparation
program.
   (3) (A) Subject to the limitation provided in subdivision (f), a
program shall be determined to lead to employment if it is on a list
of programs that the county welfare department and local education
agencies or providers agree lead to employment.  The list shall be
agreed to annually, with the first list completed no later than
January 31, 1998.  By January 1, 2000, all educational providers
shall report data regarding programs on the list for the purposes of
the report card established under Section 15037.1 of the Unemployment
Insurance Code for the programs to remain on the list.
   (B) For students not in a program on the list prepared under
subparagraph (A), the county shall determine if the program leads to
employment.  The recipient shall be allowed to continue in the
program within the time period specified in subdivisions (a) and (d)
of Section 11454 if the recipient demonstrates to the county that the
program will lead to self-supporting employment for that recipient
and the documentation is included in the welfare-to-work plan.
   (C) If participation in educational or vocational training, as
determined by the number of hours required for classroom, laboratory,
or internship activities, is not at least 32 hours, the county shall
require concurrent participation in work activities pursuant to
subdivisions (a) to (j), inclusive, of Section 11322.6 and Section
11325.22.
   (b) Participation in the self-initiated education or vocational
training program shall be reflected in the welfare-to-work plan
required by Section 11325.21.  The welfare-to-work plan shall provide
that whenever an individual ceases to participate in, refuses to
attend regularly, or does not maintain satisfactory progress in the
self-initiated program, the individual shall participate under this
article in accordance with Section 11325.22.
   (c) Any person whose previously approved self-initiated education
or training program is interrupted for reasons that meet the good
cause criteria specified in Section 11328 may resume participation in
the same program if the participant maintained good standing in the
program while participating and the self-initiated program continues
to meet the approval criteria.  The county shall adjust the
completion date of the program, accounting for the time of absence to
allow the participant a cumulative timeframe outlined in subdivision
(a).
   (d) Supportive services reimbursement shall be provided for any
participant in a self-initiated training or education program
approved under this subdivision.  This reimbursement shall be
provided if no other source of funding for those costs is available.
Any offset to supportive services payments shall be made in
accordance with subdivisions (d) and (e) of Section 11323.4.
   (e) Any student who at the time he or she is required to
participate under this article pursuant to Section 11320.3 who has
been enrolled and is making satisfactory progress in a degree or
certificate program prior to the operative date of this section, but
does not meet the criteria set forth in subdivision (a), shall have
until the beginning of the next educational semester or quarter break
to continue his or her educational program if he or she continues to
make satisfactory progress.  At the time the educational break
occurs, the individual is required to participate pursuant to Section
11320.3.  The time spent in the educational program shall count
towards the time limits and community service requirements
established for recipients in Sections 11320.1 and 11454.  A
recipient not expected to complete the program by the next break may
continue his or her education under the timelines in subdivision (a),
provided he or she transfers at the end of the current quarter or
semester to a program that qualifies under that subdivision, the
county determines that participation is likely to lead to
self-supporting employment of the recipient, and the welfare-to-work
plan reflects that determination.
   (f) Any degree, certificate, or vocational program offered by a
private postsecondary training provider shall not be approved under
this section unless the program is either approved or exempted by the
appropriate state regulatory agency and the program is in compliance
with all other provisions of law.
  SEC. 110.  Section 11325.25 of the Welfare and Institutions Code is
amended to read: 
   11325.25.  (a) A participant with a suspected learning or medical
problem, as indicated by information received during appraisal or
assessment or by lack of satisfactory progress in an assigned program
component, shall be referred to an evaluation to determine whether
the individual is unable to successfully complete or benefit from a
current or proposed program assignment.  As part of the evaluation,
the county may require the individual to undergo the appropriate
examinations to obtain information regarding the individual's
learning and physical abilities.
   (b) Based upon the results of the evaluation required by
subdivision (a), the county may refer the individual to any of the
following components as appropriate:
   (1)  Rereferral   Referral to any of the
activities in Section 11322.6, including referral  to the person'
s previous activity.
   (2) Existing special programs that meet specific needs of the
individual.
   (3) Job search services, if the county determines the individual
has the skills needed to find a job in the local labor market.
   (4) Assessment as described in Section 11325.4, or reappraisal as
described in Section 11326  , and subsequent job search,
education, or training activity as appropriate  .
   (5) Rehabilitation assessment and subsequent training.
   (c) The participant shall be involved in the decisions made during
the progress evaluation and shall have appeal rights consistent with
those accorded to all program participants.   
  SEC. 111.  Section 11325.4 of the Welfare and Institutions Code is
amended to read: 
   11325.4.  (a) Upon referral to assessment, a participant shall
work with the county welfare department to develop and agree on
 an employment   a welfare-to-work  plan on
the basis of an assessment of the individual's skills and needs.
The assessment shall include at least all of the following:
   (1) The participant's work history and an inventory of his or her
employment skills, knowledge, and abilities.
   (2) The participant's educational history and present educational
competency level.
   (3) The participant's need for supportive services in order to
obtain the greatest benefit from the employment and training services
offered under this article.
   (4) An evaluation of the chances for  the achievement of
the participant's  employment  goal  given
the current skills of the participant and the local labor market
conditions.
   (5)  The goal to be attained upon completion of the
program, including the period of time it will take to achieve this
goal, and the resources available under this program for its
achievement.   Local labor market information.
   (6) Physical limitations or mental conditions that limit the
participant's ability for employment or participation in
welfare-to-work activities. 
   (b)  The assessment shall be done by a person qualified by
education or experience to provide counseling, guidance, assessment,
or career planning.  The county may contract with outside
parties, including local educational agencies and service delivery
areas, to provide the assessment.
   (c) (1) Notwithstanding the procedures set forth in Chapter 7
(commencing with Section 10950) of Part 2, if the participant and
assessor are unable to reach agreement on the  employment
  welfare-to-work  plan, the matter shall be
referred by the county for an independent assessment by an impartial
third party  with career planning experience  .  The
results of this assessment, which shall be binding upon the county
and the participant, shall be used to develop the appropriate
 employment  plan for the participant.
   (2) No third party assessment under this subdivision shall be made
by a party having any financial or other interest in the result of
the assessment. The party making the assessment shall be selected by
the  department   county  according to an
unbiased procedure.   Remuneration for this assessment shall
be made by the department according to a fair fixed fee established
by regulations of the department. 
   (d) This section shall not apply to individuals subject to Article
3.5 (commencing with Section 11331) during the time that article is
operative.   
  SEC. 112.  Section 11325.5 is added to the Welfare and Institutions
Code, to read:
   11325.5.  (a) If, pursuant to the assessment conducted pursuant to
Section 11325.4, there is a concern that a mental disability exists
that will impair the ability of a recipient to obtain employment, he
or she shall be referred to the county mental health department.
   (b) Subject to appropriations in the Budget Act, the county mental
health department shall evaluate the recipient and determine any
treatment needs.  The evaluation shall include the extent to which
the individual is capable of employment at the present time and under
what working and treatment conditions the individual is capable of
employment.  The evaluation shall include prior diagnoses,
assessments, or evaluations that the recipient provides.
   (c) Each county welfare department shall develop individual
welfare-to-work plans for recipients with mental or emotional
disorders based on the evaluation conducted by the mental health
department.  The plan for the recipient shall include appropriate
employment accommodations or restrictions, supportive services, and
treatment requirements.  Any prior diagnosis, evaluation, or
assessment provided by the recipient shall be considered in the
development of his or her individual welfare-to-work plan.
  SEC. 113.  Section 11325.6 of the Welfare and Institutions Code is
amended to read: 
   11325.6.  Subject to the limitations of subdivision (f) of Section
11322.6  and subdivision (a) of Section 11325.22  , if
 services   activities  to be provided
under the  contract   plan  between the
county welfare department and the participant are not immediately
available to the participant, he or she shall receive job search
 services   activities  until the education
or training services designated in the  contract 
 plan  are available.   
  SEC. 114.  Section 11325.7 is added to the Welfare and Institutions
Code, to read:
   11325.7.  (a) It is the intent of the Legislature in enacting this
section to create a funding stream and program that assists certain
recipients of aid under this chapter to receive necessary mental
health services, including case management and treatment, thereby
enabling them to make the transition from welfare to work.  This
funding stream shall be used specifically to serve recipients in need
of mental health services, and shall be accounted for and expended
by each county in a manner that ensures that recipients in need of
mental health services are receiving appropriate services.
   (b) The county plan required by Section 10531 shall include a plan
for the development of mental health employment assistance services,
developed jointly by the county welfare department and the county
department of mental health.  The plan shall have as its goal the
treatment of mental or emotional disabilities that may limit or
impair the ability of a recipient to make the transition from
welfare-to-work, or that may limit or impair the ability to retain
employment over a long-term period.  The plan shall be developed in a
manner consistent with both the county's welfare-to-work program and
the county's consolidated mental health Medi-Cal services plan.  The
county may use community based providers, as necessary, that have
experience in addressing the needs of the CalWORKs population.  The
county, whenever possible, shall ensure that the services provided
qualify for federal reimbursement of the nonstate share of Medi-Cal
costs.
   (c) Subject to specific expenditure authority, mental health
services available under this section shall include all of the
following elements:
   (1) Assessment for the purpose of identifying the level of the
participant's mental health needs and the appropriate level of
treatment and rehabilitation for the participant.
   (2) Case management, as appropriate, as determined by the county.

   (3) Treatment and rehabilitation services, that shall include
counseling, as necessary to overcome mental health barriers to
employment and mental health barriers to retaining employment, in
coordination with an individual's welfare-to-work plan.
   (4) In cases where a secondary diagnosis of substance abuse is
made in a person referred for mental or emotional disorders, the
welfare-to-work plan shall also address the substance abuse treatment
needs of the participant.
   (5) A process by which the county can identify those with severe
mental disabilities that may qualify them for aid under Chapter 3
(commencing with Section 12000).
   (d) Any funds appropriated by the Legislature to cover the
nonfederal costs of the mental health employment assistance services
required by this section shall be allocated consistent with the
formula used to distribute each county's CalWORKs program allocation.
  Each county shall report annually to the state the number of
CalWORKs program recipients who received mental health services and
the extent to which the allocation is sufficient to meet the need for
these services as determined by the county.  The State Department of
Mental Health shall develop a uniform methodology for ensuring that
this allocation supplements and does not supplant current expenditure
levels for mental health services for this population.
  SEC. 115.  Section 11325.8 is added to the Welfare and Institutions
Code, to read:
   11325.8.  (a) The county plan required by Section 10531 shall
include a plan for the provision of substance abuse treatment
services.  The plan shall describe how the county welfare department
and the county alcohol and drug program will collaborate to ensure an
effective system is available to provide alcohol and drug services
to recipients whose substance abuse creates a barrier to employment.
The plan shall be developed in a manner that is consistent with the
county's welfare-to-work program.  Substance abuse treatment services
shall include evaluation, substance abuse treatment, employment
counseling, provision of community service jobs, or other appropriate
services.
   (b) It is the intent of the Legislature that substance abuse
treatment services for participants shall be provided by the county
alcohol and drug program, or by a nonprofit agency under contract
with the county alcohol and drug program.  If the county welfare
department determines that the county alcohol and drug program is
unable to provide the needed services, the county department may
contract directly with a state-licensed or certified nonprofit
substance abuse program to obtain substance abuse services for a
participant.
   (c) (1) A participant who is in a job search component of the
county's welfare-to-work program may be directed at any time to an
assessment by the job search manager if the county believes that the
participant's substance abuse may limit or preclude his or her
satisfactory completion of the job search component.
   (2) During the assessment, if the case manager believes that
substance abuse will impair the ability of the participant to obtain
and retain employment, the case manager shall refer the participant
to the county alcohol and drug program for an evaluation and
determination of any treatment necessary for the participant's
transition from welfare to work.  If the county alcohol and drug
program is unable to provide the necessary services, the county may
refer the participant to a state-licensed or certified nonprofit
agency under contract with the county to perform these services.
   (3) If a participant is determined to have a substance abuse
problem, based on an evaluation by the county alcohol and drug
program or a state-licensed or certified nonprofit agency, the case
manager shall develop the participant's welfare-to-work plan based on
the results of that evaluation.  In such a case, the participant's
welfare-to-work plan may include appropriate treatment requirements,
including assignment to a substance abuse program.
   (4) A recipient of aid under this chapter shall be offered two
opportunities to receive substance abuse treatment under subdivision
(p) of Section 11322.6, except that the county may offer the
recipient additional treatment opportunities.
   (5) When a participant's welfare-to-work plan includes assignment
to a treatment program, a case manager may determine that the
participant is out of compliance with that plan if, at any time, in
consultation with the substance abuse treatment provider, the county
determines that the participant has failed or refused to participate
in a treatment program without good cause. The assigned treatment
program shall be reasonably accessible within the county of residence
or a nearby county.
   (6) When a case manager determines that a participant in a
treatment program as specified in his or her welfare-to-work plan is
out of compliance with a program requirement other than participation
in a required treatment program, the determination of whether the
participant has good cause to be out of compliance shall include
consideration of whether the participant's substance abuse problem
caused or substantially contributed to the failure to comply with the
program requirements.  In this determination, the county shall
consult the substance abuse treatment provider as appropriate.
   (d) No recipient may participate in a substance abuse treatment
program for longer than six months without concurrently participating
in a work activity, to be determined by the county and the
recipient, in consultation with the treatment provider.  However, if
the recipient is in a residential treatment program or an intensive
day treatment program that requires him or her to stay at the program
site or otherwise not to participate in nonprogram activities, the
requirements of the treatment program shall fulfill the recipient's
work activity requirement.
   (e) Any funds appropriated by the Legislature for allocation to
each county to eliminate barriers to employment due to participants'
substance abuse problems shall be allocated consistent with the
formula used to distribute each county's CalWORKs program allocation
and shall be used to supplement, and not supplant, substance abuse
treatment funds otherwise available to recipients.  It is the intent
of the Legislature that these funds be used to develop, expand, or
develop and expand programs appropriate for CalWORKs program
recipients.  It is further the intent of the Legislature that, to the
extent possible, these funds be used to maximize federal financial
participation through Title XIX of the federal Social Security Act
(Title 42 U.S.C. Sec. 1396 et seq.).
   (f) Each county shall report annually to the state the number of
CalWORKs program recipients who receive substance abuse treatment and
the extent to which the allocation is sufficient to meet the need
for substance abuse services as determined by the county.
  SEC. 116.  Section 11326 of the Welfare and Institutions Code is
amended to read: 
   11326.  (a) The county shall conduct a reappraisal of any
participant who does not obtain unsubsidized employment upon
completion of all activities included in  a postassessment
employment   the welfare-to-work  plan developed
pursuant to Section 11325.4  and job search services required
by subdivision (d) of Section 11325.22  .  The reappraisal
shall evaluate whether there are extenuating circumstances as defined
by the  department   county  that prevent
the participant from obtaining employment within the local labor
market area  with the education and training previously
received .
   (b) Upon a determination that extenuating circumstances exist, the
participant shall be assigned to  receive 
additional  services   activities  in
accordance with subdivision (b) of Section 11325.22 as the county
determines to be appropriate and necessary.
   (c) Upon a determination that no extenuating circumstances exist,
and until this determination is reversed  or community service
activity pursuant to Section 11322.9 is required  , the
participant shall  only receive the following services:
  be limited to the activities in subdivisions (a), (d),
(l), and (q) of Section 11322.6.  Participation in those activities
shall be subject to the requirements of Section 11322.8. 

   (1) Preemployment preparation or other work experience assignment.
  The participant shall continue to seek employment during the
preemployment preparation or work experience assignment.  A county
that is operating under a cost reduction plan pursuant to Section
11322.2 may limit the individual's participation in these activities
to one year.
   (2) Job search services as described in Section 11322.6 for a
period not to exceed eight weeks per year.
   (d) (1) A preemployment preparation or work experience assignment
pursuant to subdivision (c) shall meet the requirements of paragraph
(2) if the participant meets all of the following criteria:
   (A) Does not meet any of the exemption or deferral criteria
specified in Sections 11320.3 and 11325.
   (B) Is unemployed or employed for less than 15 hours per week.
   (C) Has received aid payments pursuant to Section 11450 for 22 out
of the last 24 months.
   (2) An individual who meets the criteria in paragraph (1) shall be
required to participate at least 100 hours per month in a
preemployment preparation or work experience assignment that is
appropriate to his or her skills and abilities.  The hours of
participation in a preemployment preparation assignment shall exceed
100 hours per month if required by paragraph (3) or (4) of
subdivision (b) of Section 11322.8.  A work experience assignment may
be appropriate community service that includes, but is not limited
to, volunteer hours in a school, hospital, public library, or park
and recreation district.
   (3) The department shall seek the federal waivers that are
necessary to implement this subdivision.  This subdivision shall only
be operative for the duration of the waivers, as specified in the
declaration that federal approval for the waivers has been obtained,
which the director shall execute and retain.
   (e) If an individual fails or refuses to comply without good cause
with the requirements of this section, the conciliation provisions
of Section 11327.4 and the sanction provisions of Section 11327.5
shall apply.   

   SEC. 117.  Section 11327.2 of the Welfare and Institutions Code is
repealed.  
   11327.2.  If an overpayment occurs pursuant to Section 11004, the
number of hours calculated according to paragraphs (3) and (4) of
subdivision (b) of Section 11322.8 represented by the overpayment
recoupment shall be deducted from the hours of participation required
in future months.  If a participant ceases to participate under this
article before the adjustment in hours can be made, the county shall
forgive the overpayment.   
  SEC. 118.  Section 11327.4 of the Welfare and Institutions Code is
amended to read: 
   11327.4.  (a) (1) Whenever an individual has failed or refused to
comply with program requirements without good cause in a program
component to which he or she is assigned  pursuant to this
article, and the participant continues to fail or refuse to comply
with program requirements after a period of conciliation 
 and refuses to agree to or fails, without good cause, to comply
with a compliance plan agreed to  between the county and the
participant, the individual shall be subject to sanctions specified
in Section 11327.5.
   (2) For the purposes of this article,  "failing or
refusing   the phrase "failed or refused  to comply
with program requirements" shall be limited to: failing or refusing
to sign a  participant contract  
welfare-to-work plan  , participate or provide required proof of
satisfactory progress in  an   any 
assigned program activity,  pursuant to this article, including
self-initiated programs described in Section 11325.23  or accept
employment; terminating employment; or reducing earnings.  
For the purposes of this subdivision, assigned program activities
include, but are not limited to, orientation, assigned job search,
education or training activities, including self-initiated programs
pursuant to Section 11325.23, appraisal, and assessment or
reappraisal appointments.  To the extent required by federal law or
regulations, an individual who participates in the GAIN program and
subsequently obtains employment of 30 hours or more per week and who
remains on aid shall be considered to be refusing to comply with
program requirements if he or she terminates that employment without
good cause. 
   (b) (1)  Upon determination that an individual has failed or
refused to comply with program requirements, the county shall issue a
notice of action effective no earlier than 30 calendar days from the
date of issuance informing the individual that a sanction will be
imposed if the individual fails to either attend an appointment
scheduled by the county to be held within 20 calendar days of the
notice, or contact the county by phone, within 20 calendar days of
the notice, and fails to do either of the following:
   (A) Provide information to the county that he or she had good
cause for the refusal or failure that has led the county to make a
finding of good cause for nonparticipation.
   (B) Agree to a compliance plan to correct the failure or refusal
to comply.
   (2)  The county shall schedule a time during which each
individual who has failed or refused to comply with program
requirements has an opportunity to demonstrate that he or she had
good cause for that refusal or failure.  The county shall schedule an
appointment within  10 working   20 calendar
 days of the  discovery of the nonparticipation
  notice of action  .  The individual shall be
allowed to reschedule the cause determination appointment once 
within the 20-calendar day period  .   This rescheduled
appointment shall take place within five working days of the initial
appointment, unless delayed by extenuating circumstances.  The cause
determination process shall not exceed 15 working days from the date
of discovery of the nonparticipation, unless delayed by extenuating
circumstances.
   (2)  
   (3)  The  county shall send a  written
notice  that   of action sent by the county
 shall do all of the following:
   (A)  Inform the individual of the specific act or acts that
have caused the individual to be out of compliance with participation
requirements.
   (B) Inform the individual of his or her right to assert good cause
for his or her refusal or failure.
   (C)  Inform the individual of the date and time of the
scheduled appointment.  
   (B) Include a list  
   (D) Provide a general definition of good cause and examples 
of  the  reasons that constitute good cause for not
participating in the program.  
   (E) Inform the individual of the right to contact the county
welfare department by telephone to establish good cause over the
telephone in lieu of attending the appointment scheduled by the
county.
   (F) Inform the individual of the right to reschedule the
appointment once within the 20-calendar-day period.
   (G) Inform the individual that if good cause is not found, a
compliance plan will be developed and the individual will be expected
to agree to the plan or face a sanction.
   (H) Inform the individual of the name, telephone number, and
address of state and local legal aid and welfare rights organizations
that may assist the individual with the good cause and compliance
plan process.  
   (C)  
   (I)  Describe the transportation and child care services that
a person is entitled to, as needed in order to attend the
appointment.  
   (D) Inform the individual that failure to either attend the cause
determination appointment or reschedule this appointment shall result
in a cause determination in his or her absence, based on available
evidence.
   (3) Whenever a determination of good cause has been made, the
county shall issue a written notice to the individual that reflects
this determination.
   (c) When a county determines that a person failed or refused to
meet program requirements without good cause, the county shall notify
the individual, in writing, of this determination.  Except as
provided in subdivision (d), the notice also shall inform the
individual that he or she has entered into a 20-calendar-day period
of conciliation, during which the county and the individual shall
attempt to resolve any problems that are contributing to the failure
or refusal to meet program requirements.  This notice shall be mailed
within five working days of the cause determination, unless delayed
by extenuating circumstances.  The 20-calendar-day period shall begin
on the date the county issues the notice of the beginning of
conciliation.
   (d) (1) If the individual fails to respond to the county's notice
for a cause determination meeting and the county determines there was
not good cause for the noncompliance, the county shall issue a
notice of action.  This notice shall inform the individual that a
20-calendar-day period of conciliation has begun and that a sanction
will be imposed if the individual fails to contact the county to
establish good cause or agree on a conciliation plan within 20
calendar days from the date the notice of action is issued.
   (2) If the individual contacts the county pursuant to the notice
of action required in paragraph (1), a 20-calendar-day period of
conciliation shall begin on the date the county issued the notice and
shall be conducted as specified in subdivisions (e) to (k),
inclusive.  If the individual then fulfills the terms of the
conciliation plan, an instance of noncompliance shall not be
considered to have occurred.  If the individual enters into a written
conciliation plan but does not fulfill the terms of the plan, and,
pursuant to subdivision (i), it is determined that the individual did
not have good cause for failure to meet the terms of the plan, the
county shall send a notice of action to impose the sanction.  As
provided in subdivision (f), the conciliation period shall be
terminated and an instance of noncompliance shall not have occurred
upon a reversal of the determination that the individual did not have
good cause for noncompliance.
   (3) If the individual contacts the county and schedules a
conciliation appointment, but fails to attend or reschedule the
appointment, the county shall contact the individual by phone or in
writing, if necessary, to attempt to determine the cause.
   (4) If the individual fails to contact the county within 20
calendar days, he or she will be considered to have failed
conciliation and the sanction shall be imposed in accordance with
Section 11327.5.  The sanction shall take effect on the first day of
the first payment month following the end of the 20-calendar-day
period.
   (5) If necessary for the implementation of this subdivision, the
department shall seek approval for a waiver from the United States
Department of Health and Human Services.  The subdivision shall be
operative for the duration of any necessary waiver, as specified in
the declaration that federal approval for the waiver has been
obtained, which the director shall execute and retain.
   (e) The notice that begins the conciliation period as required in
subdivision (c) or (d) shall identify the specific act or actions
that have caused the individual to be out of compliance with
participation requirements under this article, the proposed steps
that the registrant may take to resolve the problem, the right to
offer a counterproposed conciliation plan, and the names, telephone
numbers, and addresses of the local legal services office and welfare
rights office, or the Coalition of California Welfare Rights
Organizations if there is no welfare rights or legal aid office in
the county, who could assist the individual with conciliation.  The
notice shall also identify the transportation and child care services
available to the individual as needed to attend the conciliation
meeting and, except for an individual subject to subdivision (d), the
date and time of the conciliation appointment.
   (f) Any issue that directly affects an individual's failure or
refusal to meet program requirements may be discussed during
conciliation.  This includes providing further information
demonstrating the individual had good cause for his or her
nonparticipation.  The individual also may request a supervisor of
employees to review the good cause determination.  If, as a result of
a supervisor's review, the determination that the individual did not
have good cause is reversed, the county shall notify the individual
in writing of this reversal and that the conciliation period has been
terminated.
   (g) In conducting conciliation, the county shall schedule a
meeting to discuss and resolve those issues preventing the individual
from complying with program requirements.  The county shall
reschedule the meeting once at the request of the individual.
   (h) When the individual and the county reach agreement on program
participation during the conciliation period, a written conciliation
plan shall be entered into and signed by the county and the
individual.  If the individual subsequently fulfills the terms of the
conciliation plan, conciliation shall be considered successful.  The
conciliation plan shall specify that the individual must complete,
or participate for three months in, the agreed upon activity or
activities, whichever is shorter.
   (i) If an individual fails to fulfill the terms of the
conciliation plan as specified in subdivision (h), the county shall
make reasonable efforts during a 10-calendar-day period to contact
the individual to determine the reason for the failure, and shall
maintain written documentation of those efforts.  If the county
determines, based on information available to it after making a
reasonable effort to contact the individual, that the individual did
not have good cause for the failure to meet the terms of the
conciliation plan, sanctions shall be imposed in accordance with
Section 11327.5.
   (j) The county may shorten the 20-calendar-day conciliation period
only if one of the following conditions is met:
   (1) Both the individual and the county agree, in writing, to
terminate conciliation.
   (2) The determination of no good cause has been reversed.
   (k) If, at the end of the 20-calendar-day conciliation period, the
individual continues to fail or refuse to comply with program
requirements, sanctions shall be imposed in accordance with Section
11327.5.  An additional 10-calendar-day extension of the conciliation
period shall be available upon the agreement of the individual and
the county only if both of the following conditions are met:
   (1) The client has made a reasonable effort to conciliate during
the initial 20-calendar-day conciliation period, and significant
progress has been made toward a resolution to the dispute during that
time.
   (2) The county believes that an additional 10 calendar days of
conciliation is likely to lead to agreement between the individual
and the county on a conciliation plan.
   (l) For the purpose of determining the length of the sanction that
applies to an individual as described in Section 11327.5, an
instance of noncompliance without good cause is considered to have
occurred when the county issues a notice of action proposing to
impose the sanction.  
   (c) If the individual fails to attend the appointment, the county
shall attempt to contact the individual by telephone at the time of
or after the appointment in order to establish a finding of good
cause or no good cause, and, if a finding of no good cause is made,
develop a compliance plan to correct the instance of
nonparticipation.
   (d) If the individual fails to attend the meeting and the county
is not able to contact the individual in accordance with subdivision
(c), and the individual fails to contact the county within the
20-calendar-day period, a sanction shall be imposed in accordance
with Section 11327.5.
   (e) If the individual attends the appointment or contacts the
county by phone within the 20-calendar-day period and is either found
by the county to have had good cause for his or her refusal or
failure, or agrees to a compliance plan to correct the failure or
refusal, the county shall rescind the notice of action issued
pursuant to subdivision (b).  If the individual agrees to a
compliance plan at the appointment, the individual shall be provided
a copy of the plan.  If the individual agrees to a compliance plan
over the telephone, a copy of the plan shall be mailed to the client.

   (f) If the individual is found by the county to have had good
cause for his or her refusal or failure, an instance of noncompliance
shall not be considered to have occurred.
   (g) If the individual is found by the county not to have had good
cause, but agrees to a compliance plan and then fulfills the terms of
the compliance plan, an instance of noncompliance shall not be
considered to have occurred.
   (h) If the individual enters into a written compliance plan, but
does not fulfill the terms of the plan, and the county determines,
based on available information, that the individual did not have good
cause for failure to meet the terms of the plan, the county shall
send a notice of action to impose a sanction.  The procedures
specified in subdivision (b) shall not be applicable to a sanction
imposed under this subdivision.   
  SEC. 119.  Section 11327.5 of the Welfare and Institutions Code is
amended to read: 
   11327.5.  (a) Sanctions shall be imposed in accordance with
subdivision (b) or (c), as appropriate, if an individual has failed
or refused to comply with program requirements without good cause and
conciliation efforts, as described in Section 11327.4, have failed.

   (b) The sanctions provided for in subdivisions (c) and (d) shall
not apply to an individual who is exempt from the requirements of
this article but is voluntarily participating in the program.  If
such an individual  is a member of a group that has been
given priority for services in accordance with Section 11322.4, and
 engages in conduct that would bring about the actions
provided for in subdivisions (c) and (d), except for his or her
status as a voluntary program participant, the individual shall not
be given priority so long as other individuals are actively seeking
to participate.   In the case of any other voluntary program
participant who engages in conduct that would bring about the actions
provided for in subdivisions (c) and (d), except for his or her
status as a voluntary program participant, the individual shall be
precluded from participating in the program for a period of six
months. 
   (c) Financial sanctions for failing or refusing to comply with
program requirements without good cause shall cause a reduction in
the family's grant by removing the noncomplying family member from
the assistance unit for a period of time specified in subdivision
(d).
   (1) For families that qualify for aid due to unemployment of the
family's primary wage earner, the sanctioned parent shall be removed
from the assistance unit.  Unless the spouse or the family's second
parent meets the provisions of subparagraph (A) of paragraph (2), if
the sanctioned parent's spouse or the family's second parent is not
participating in the program, both the sanctioned parent and the
spouse or second parent shall be removed from the assistance unit.
The county shall notify the spouse of the noncomplying participant or
second parent in writing at the commencement of conciliation of his
or her own opportunity to participate and the impact on sanctions of
that participation.   Notwithstanding Section 11322.4, the
sanctioned parent's spouse or the family's second parent shall be
provided the opportunity to participate. 
   (2) (A) Except as provided in subparagraph (B), exemption criteria
specified in Section 11320.3,  deferral criteria specified
in Section 11325,  conciliation specified in Section
11327.4, and good cause criteria specified in Section  11328
  11320.31 and subdivision (f) of Section 11320.3 
shall apply to the sanctioned parent's spouse or the family's second
parent.
   (B) Exemption criteria specified in paragraphs (5) and (6) of
subdivision (b) of Section 11320.3 do not apply to a spouse or second
parent who is participating to avoid the sanction of the
noncomplying parent.
   (C) If the sanctioned parent's spouse or the family's second
parent chooses to participate to avoid the noncomplying parent's
sanction, subsequently fails or refuses to participate without good
cause, and does not conciliate, he or she shall be removed from the
assistance unit for a period of time specified in subdivision (d).
   (D) If the sanctioned parent's spouse or the family's second
parent is under his or her own sanction at the time of the first
parent's sanction, the spouse or second parent shall not be provided
the opportunity to avoid the first parent's sanction until the spouse
or second parent's sanction is completed.
   (3) For families that qualify due to the absence or incapacity of
a parent, only the noncomplying parent shall be removed from the
assistance unit.
   (4) If the noncomplying individual is the only dependent child in
the family, his or her needs shall not be taken into account in
determining the family's need for assistance and the amount of the
assistance payment.
   (5) If the noncomplying individual is one of several dependent
children in the family, his or her needs shall not be taken into
account in determining the family's need for assistance and the
amount of the assistance payment.
   (d) The length of time that financial sanctions shall reduce a
family's grant shall increase in the following manner:
   (1) The first instance of noncompliance without good cause shall
result in a financial sanction.  This sanction shall terminate at any
point if the noncomplying participant  reaches an agreement
with the county welfare department in an amended contract or agrees
to participate and  performs the activity or activities he
or she previously refused to perform.
   (2) The second instance of noncompliance without good cause shall
result in a financial sanction for three months or until the
noncomplying participant  reaches an agreement with the
county welfare department or agrees to participate and 
performs the activity or activities he or she previously refused to
perform, whichever is longer.
   (3) The third and each subsequent instance of noncompliance
without good cause shall result in a financial sanction for six
months or until the noncomplying participant  reaches an
agreement with the county welfare department or agrees to participate
and  performs the activity or activities he or she
previously refused to perform, whichever is longer.
   (e) Sanctions shall become effective on the first day of the first
payment-month that the sanctioned individual's needs are removed
from aid under this chapter.
   (f) In the event this section conflicts with federal law, the
department shall adopt regulations to conform to federal law.   
  SEC. 120.  Section 11327.6 of the Welfare and Institutions Code is
amended to read: 
   11327.6.  Notwithstanding any other provision of law, any person
who is not required  to register under this article 
 ,  but who volunteers  ,  to participate in the
program established by this article and fails to appear for a
scheduled appointment prior to entering into the  contract
  welfare-to-work plan  shall be deemed to not be
subject to the requirements of this article and the conciliation
efforts and sanction requirements established under Sections 11327.4
and 11327.5 shall not apply.   
  SEC. 121.  Section 11327.8 of the Welfare and Institutions Code is
amended to read: 
   11327.8.  (a) Except as specified in this section, whenever a
participant believes that any program requirement or assignment in
this program is in violation of his or her  contract
  welfare-to-work plan  or is inconsistent with
this article, the participant may request a state hearing pursuant to
Chapter 7 (commencing with Section 10950) of Part 2 or utilize a
formal grievance procedure to be established by the county board of
supervisors and specified in each county plan.
   (b) If the participant is not satisfied with the outcome of the
grievance procedure, he or she may appeal the decision in accordance
with the procedures set forth in Chapter 7 (commencing with Section
10950) of Part 2.  Participants shall be subject to sanctions pending
the outcome of the  formal grievance procedure or any subsequent
appeal, only if they fail to participate during the period the
grievance procedure is being processed.  However, a participant shall
not utilize the grievance procedure to appeal the results of an
assessment made pursuant to Section 11325.4.
   (c) If a participant is not satisfied with the decision of a
hearing conducted pursuant to Section 10950 concerning on-the-job
working conditions  ,   or  workers'
compensation coverage  , or wage rates used to calculate
preemployment preparation hours of participation  , the
participant may file a further appeal with the United States
Department of Labor, as provided by federal law.  
  SEC. 122.  Section 11327.9 is added to the Welfare and Institutions
Code, to read:
   11327.9.  In determining whether good cause exists for a refusal
or failure to comply with program requirements, the county shall take
into consideration whether the participant has a mental disability
that caused or substantially contributed to the refusal or failure to
comply with program requirements.  This determination shall be made,
where appropriate, in consultation with the county mental health
department.
  SEC. 123.  Section 11328 of the Welfare and Institutions Code is
repealed.  
   11328.  No sanctions shall be applied for a failure or refusal to
comply with program requirements with good cause.  Good cause for
failure or refusal to comply with program requirements shall include
all of the following:
   (a) An assignment, job referral, or job does not meet appropriate
work and training criteria due to any of the following:
   (1) The employment, offer of employment, activity or other
training for employment discriminates in terms of age, sex, race,
religion, ethnic origin, or physical or mental handicap.
   (2) The employment or offer of employment, exceeds the daily or
weekly hours of work customary to the occupation.
                                                 (3) The employment,
offer of employment, activity, or other training for employment
requires travel to and from the place of employment, activity, or
other training and one's home that exceeds a total of two hours in
round-trip time, exclusive of the time necessary to transport family
members to a school or place providing care, or, when walking is the
only available means of transportation, the round-trip is more than
two miles, exclusive of the mileage necessary to accompany family
members to a school or a place providing care.
   (4) The employment, offer of employment, activity, or other
training for employment involves conditions and specific
responsibilities that impair the individual's physical or mental
health or are not related to the individual's capability to perform
the task on a regular basis.
   (5) The employment, offer of employment, activity, or other
training for employment involves conditions that are in violation of
applicable health and safety standards.
   (6) The employment, offer of employment, or work activity does not
provide for worker's compensation insurance.
   (7) An employment or training program position utilized pursuant
to this article may not be created in violation of Section 11324.2,
Section 11324.6, or paragraph (6) of subdivision (g) of Section
11322.8, as applicable.
   (8) The employment, offer of employment, activity, or other
training is not within the scope of the employment plan as contained
in the contract provided for under this article.
   (9) Accepting the employment, offer of employment, or work
activity would cause the individual to violate the terms of his or
her union membership.
   (10) Accepting the employment, offer of employment, or work
activity would cause an interruption in an approved education or job
training program in progress, excluding preemployment preparation as
described in subdivision (b) of Section 11322.8 or other community
work experience assignments, or would prevent the individual from
returning to his or her regular job within a reasonable time, unless
the job offer provides either of the following:
   (A) Employment and sufficient income to lead to self-support and
the job offer is within the scope of the employment plan.
   (B) Temporary employment while the individual is waiting for
reemployment in his or her regular job.
   (11) The participant is not receiving the supportive services
agreed to under the contract entered into pursuant to this article.
   (12) In addition to good cause as specified in this section, no
sanction shall be applied to any participant who is absent or tardy
for periods up to 10 percent of the monthly hours required for any
component, or the provider's standard.  However, this time shall not
accumulate.
   (13) The employment or offer of employment is at a wage level that
results in a net loss of income, in accordance with subdivision (k).

   (14) The employment, offer of employment, or required activity
requires the individual to remain away from home overnight without
his or her consent.
   (15) The employment, offer of employment, or required activity
exceeds 20 hours per week for parents who are personally providing
care for children who are under six years of age.  This criterion
shall not apply to persons with primary responsibility for personally
providing care to children aged three to five years, inclusive,
during any period in which subparagraph (D) of paragraph (6) of
subdivision (b) of Section 11320.3 is implemented, as specified in
the declaration executed by the director upon federal approval for
implementation of that subparagraph.
   (b) The individual is temporarily physically incapacitated or
suffers temporary physical illness.
   (c) The individual is required to appear in a court proceeding or
is incarcerated.
   (d) The individual is suffering a family crisis or changed
individual family circumstance as evidenced, for example, by the
death of a spouse, parent, or child or an illness of a spouse,
parent, or child which requires the individual's immediate attention.

   (e) Inclement weather or other act of nature precludes the
individual and other persons similarly situated from traveling to an
activity.
   (f) There is a breakdown in transportation arrangements with no
ready access to alternate transportation.
   (g) The individual needs any other necessary social service not
specifically mentioned in his or her contract.
   (h) An individual refuses to accept major medical services even if
the refusal precludes participation in the program.
   (i) Licensed or exempt child care is not reasonably available, or
is not reasonably available during the individual's hours of training
or employment including commuting time, or arrangements for child
care have broken down or have been interrupted, or child care is
needed for a child who meets the criteria of paragraph (1) of
subdivision (a) of Section 11323.2 but who is not included in the
assistance unit.  For purposes of this section, "reasonably available"
means having at least two choices of child care arrangements.  The
choices of day care shall meet either licensing requirements or the
requirements of Section 11324.  This good cause criterion shall
include the unavailability of suitable special needs child care for
children with identified special needs, including, but not limited
to, disabilities or chronic illnesses.
   (j) An individual is engaged in employment or training that is
consistent with the employability objectives of the program, and
prior notification and approval from the worker has been received.
   (k) Net loss of income would occur pursuant to the conditions
provided for in this subdivision, if an offer of employment which
results in a net income of less than 100 percent of a person's grant
is accepted.  Net loss of income shall be deemed to occur when
current income is greater than the postemployment income would be if
the job offer were accepted.  "Postemployment income" means gross
income less necessary work-related expenses as follows:  mandatory
and legal deductions from the proposed salary, transportation, and
child care including the child care share of cost for individuals
eligible for transitional child care.  Gross income and work-related
expenses shall be defined so as to ensure receipt of federal
financial participation.
   For purposes of computing postemployment income, the regional
market rate for child care, transportation, and other mandatory
work-related expenses shall be used.  Regional market rates for child
care shall be determined in accordance with the Alternative Payment
Program as provided for under Article 3 (commencing with Section
8220) of Chapter 2 of Part 6 of the Education Code.
   (l) Any other substantial and compelling reason not specified in
this section, to be determined at the discretion of the county.
  
  SEC. 124.  Section 11328.1 of the Welfare and Institutions Code is
repealed.  
   11328.1.  (a) No sanctions shall be applied for terminating
employment or reducing earnings with good cause.
   (b) For purposes of subdivision (a), "good cause"  means any of
the following:
   (1) Criteria described in subdivisions (a) to (k), inclusive, of
Section 11328.
   (2) Compulsory retirement.
   (3) Company layoffs or cutbacks.
   (4) Relocation of the family resulting in a commute time in excess
of that specified in paragraph (3) of subdivision (a) of Section
11328.
   (5) Denial of equal employment opportunities to the individuals
subject to this section.
   (6) The individual was subject to sexual harrassment on the job.
   (7) The individual's employer did not meet one or more of the
following requirements:
   (A) Having an operating license required by state or federal law
or local ordinances.
   (B) Maintaining worker's compensation insurance.
   (C) Withholding the unemployment insurance or disability insurance
contributions required by law.
   (8) The job presented a danger of substantial physical injury or
death to the  individual.
   (9) The individual accepted other employment, regardless of
whether the acceptance of the employment offer resulted in new
employment.
   (10) Any other substantial and compelling reason which is not
specified in this section, as determined by the county welfare
department.   
  SEC. 125.  Section 11328.4 of the Welfare and Institutions Code is
repealed.  
   11328.4.  (a) In order to measure the effectiveness of county
plans under this article, performance standards for this article
shall be consistent with those developed for service delivery areas
pursuant to Division 8 (commencing with Section 15000) of the
Unemployment Insurance Code.
   (b) The Health and Welfare Agency shall ensure that performance
standards include, but are not limited to all of the following goals:

   (1) The training program participants for unsubsidized employment.

   (2) Reducing welfare costs by increasing earnings of program
participants in unsubsidized employment.
   (3) Placement in unsubsidized employment resulting from all
program components.   
  SEC. 126.  Section 11328.6 of the Welfare and Institutions Code is
repealed.  
   11328.6.  (a) All contracts between counties and providers of
services under this article, including employers providing
preemployment preparation, shall include specific performance
criteria.  These contracts or agreements shall also include the
provision of job placement by the education or service provider and a
provider-developed standard, containing quantitative and qualitative
measures by which to determine if a participant is making
satisfactory progress.
   (b) These contracts shall provide for termination of the contract
at the discretion of the county if the provider either:  (1) violates
the contract between the county and the participant provided by
Section 11325.21, or (2) fails to meet the performance criteria
specified in the contract.   
  SEC. 127.  Section 11329.2 of the Welfare and Institutions Code is
amended to read: 
   11329.2.  (a) The department shall seek any federal funds
available for implementation of this article, including, but not
limited to, funds available under Title IV of the federal Social
Security Act (42 U.S.C. Sec.  601 et seq.)  for the
Employment Search Program and the Community Work Experience Program
 .
   (b) (1) The department shall seek any waiver from the Secretary of
the United States Department of Health and Human Services which is
necessary to implement this article.
   (2) Any provision of this article that may only be implemented
pursuant to a waiver from the United States Department of Health and
Human Services shall only be operative during the period for which
the waiver is granted, as stated in a declaration that shall be
executed by the director when the waiver is obtained.   
  SEC. 128.  Section 11329.5 of the Welfare and Institutions Code is
repealed.  
   11329.5.  (a) The department may participate in the federal Job
Opportunities and Basic Skills program evaluation for the purpose of
evaluating the placement of the basic education component of the GAIN
program.  The State Department of Social Services shall consult with
the State Department of Education to ensure that the evaluation
addresses the major issues of concern to both agencies.
   (b) The department may participate in the federal Job
Opportunities and Basic Skills program evaluation for other purposes
after consulting with the appropriate policy committees in the
Legislature, counties, and organizations representing the interests
of welfare clients.   
  SEC. 129.  Section 11329.7 of the Welfare and Institutions Code is
repealed.  
   11329.7.  (a) The Director of Social Services shall authorize the
County of Fresno to operate a pilot project pursuant to this section,
for a three-year period, but not to extend beyond January 1, 1997.
The purpose of the pilot project shall be to test whether requiring
recipients of aid under this chapter who work between 15 and 30 hours
per week to participate in the GAIN program will increase hours of
employment or earnings.
   (b) (1) At the option of the County of Fresno, individuals who are
employed but are not exempt from registration pursuant to paragraph
(8) of subdivision (b) of Section 11320.3 and who do not have primary
responsibility for personally providing care to a child under the
age of six years may be required to participate in an appropriate
program component as provided in Sections 11322.6 and 11322.8, to the
extent that other component activities are available outside the
individual's work schedule.  Total hours of employment and program
participation shall not exceed 30 hours per week.  Any individual
who, in addition to his or her part-time employment of 15 hours or
more per week, attends an education or training program that leads to
a degree or certificate shall not be subject to this section.  For
individuals subject to this section who are employed and
participating in a program component activity, the total level of
activity shall be considered with regard to applying Sections 11327.4
and 11327.5.
   (2) The county shall notify the department of its adoption of the
option to provide for participation in a program component activity
pursuant to this section as part of its county plan required under
Sections 11320.6 and 11320.8.  The county shall implement this
section in a manner that does not jeopardize regular or enhanced
federal funding.
   (c) (1) Within six months after the termination of this pilot
project, but no later than June 30, 1997, the department, together
with the County of Fresno, shall submit an evaluation of the pilot
project to the relevant policy and fiscal committees of the
Legislature.  The director shall determine the standardized data that
the county is required to collect for the pilot project.  However,
the data and the evaluation shall distinguish between AFDC-FG and
AFDC-U families.
   (2) The evaluation shall include, but not be limited to, any
increased or decreased hours of work and earnings; the number of
families whose increased earnings resulted in loss of AFDC benefits;
any increased or decreased cost of supportive services; and any
displacement of potential GAIN participants who are members of a
target population, as defined in paragraph (2) of subdivision (b) of
Section 11322.4, if this information is available and accessible.
   (3) The director and the County of Fresno shall consult with the
United States Department of Health and Human Services and with the
contractor designing the evaluation of the pilot project that
eliminates the 100-hour rule, known as the LINK-UP project, to
develop an evaluation design that distinguishes the effects of the
LINK-UP project from the pilot project described in this section.  If
the evaluator determines that the effects of the pilot projects
cannot be distinguished from each other, this pilot project shall not
be implemented.
   (d) This section shall become inoperative on June 30, 1997, and,
as of January 1, 1998, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 1998, deletes or
extends the dates on which it becomes inoperative and is repealed.
  
  SEC. 130.  Section 11331.5 of the Welfare and Institutions Code is
amended to read: 
   11331.5.  (a) Recipients of aid under this chapter who are under
19 years of age, who are pregnant or custodial parents,  and
who are required to register pursuant to Section 11320.3 
shall be required to participate in the program, subject to both of
the following requirements:
   (1) The teenage parent shall participate in the program until
 the registrant earns   earning  his or her
high school diploma or its equivalent.
   (2) The teenage parent shall participate in the program as a
student attending school on a full-time basis, as normally defined by
the school in which the participant enrolls.
   (b)  A teen, as defined in paragraph (2) of subdivision (e)
may continue to participate in the program provided for under this
article.  Any teen participating under this article pursuant to this
subdivision shall be eligible for the same benefits as is any
individual required to participate in the program.
   (c)  For the purpose of subdivision (a), exemptions from
 registration   participation  specified in
paragraphs (1), (2), (4), (5), (6),  and  (7)  ,
and (8)  of subdivision (b) of Section 11320.3  and
the deferrals from participation in Section 11325  shall not
apply.  
   (c)  
   (d)  Notwithstanding subdivision (a), the county shall exempt
a teenage parent from the program as verified by the county when any
of the following conditions occur:
   (1) The teenage parent is expelled from school and obtains
verification that no other school in the district will permit him or
her to attend, and the case manager cannot arrange for enrollment in
an alternative school.
   (2) The teenage parent cannot receive payment for child care or
transportation expenses due to lack of program funding.
   (3) Child care is necessary and unavailable.
   (4) Public or private transportation is necessary and unavailable.

   (5)  An AFDC-FC   A foster care  payment
is made  under this chapter  on behalf of the teenage
parent.  
   (d)  
   (e)  For the purposes of this article, "teen" or "teenage
parent" means  a   either of the following:
   (1) A  custodial parent or pregnant woman under 19 years of
age, who is required to participate pursuant to subdivision (a).

   (2) A custodial parent or pregnant woman 19 years of age who,
prior to becoming 19 years of age, was participating in the program
pursuant to subdivision (a), and who is otherwise eligible for
voluntary continued participation in the program.   
  SEC. 131.  Section 11450 of the Welfare and Institutions Code is
amended to read: 
   11450.  (a) (1) Aid shall be paid for each needy family, which
shall include all eligible brothers and sisters of each eligible
applicant or recipient child and the parents of the children, but
shall not include unborn children, or recipients of aid under Chapter
3 (commencing with Section 12000), qualified for aid under this
chapter.  In determining the amount of aid paid,  and
notwithstanding the minimum basic standards of adequate care
specified in Section 11452,  the family's income, exclusive of
any amounts considered exempt as income or paid pursuant to
subdivision (e) or Section 11453.1 shall be deducted from the sum
specified in  Section 11452   the following
table  , as adjusted for cost-of-living increases pursuant to
Section 11453 and paragraph (2)  of subdivision (a) of
Section 11450  .  In no case shall the amount of aid paid
for each month exceed the sum specified in the following table, as
adjusted for cost-of-living increases pursuant to Section 11453 and
paragraph (2)  of subdivision (a) of Section 11450 
, plus any special needs, as specified in subdivisions (c), (e), and
(f):


  Number of
eligible needy
  persons in                               Maximum
the same home                                aid
     1  .................................  $  326
     2  .................................     535
     3  .................................     663
     4  .................................     788
     5  .................................     899
     6  .................................   1,010
     7  .................................   1,109
     8  .................................   1,209
     9  .................................   1,306
    10 or more  .........................   1,403

   If, when, and during such times as the United States government
increases or decreases its contributions in assistance of needy
children in this state above or below the amount paid on July 1,
1972, the amounts specified in the above table shall be increased or
decreased by an amount equal to that increase or decrease by the
United States government, provided that no increase or decrease shall
be subject to subsequent adjustment pursuant to Section 11453.
   (2) The sums specified in paragraph (1) shall not be adjusted for
cost of living for the 1990-91, 1991-92, 1992-93, 1993-94, 1994-95,
1995-96,  and  1996-97  , and 1997-98 
fiscal years, and through October 31,  1997  
1998  , nor shall that amount be included in the base for
calculating any cost-of-living increases for any fiscal year
thereafter.  Elimination of the cost-of-living adjustment pursuant to
this paragraph shall satisfy the requirements of Section 11453.05,
and no further reduction shall be made pursuant to that section.
   (b) When the family does not include a needy child qualified for
aid under this chapter, aid shall be paid to a pregnant mother for
the month in which the birth is anticipated and for the three-month
period immediately prior to the month in which the birth is
anticipated in the amount which would otherwise be paid to one
person, as specified in subdivision (a), if the mother, and child if
born, would have qualified for aid under this chapter.  Verification
of pregnancy shall be required as a condition of eligibility for aid
under this subdivision.  Aid shall also be paid to a pregnant woman
with no other children in the amount which would otherwise be paid to
one person under subdivision (a) at any time after verification of
pregnancy if the pregnant woman is also eligible for the Cal-Learn
Program described in Article 3.5 (commencing with Section 11331) and
if the mother and child, if born, would have qualified for aid under
this chapter.
   (c) The amount of forty-seven dollars ($47) per month shall be
paid to pregnant mothers qualified for aid under subdivision (a) or
(b) to meet special needs resulting from pregnancy if the mother, and
child, if born, would have qualified for aid under this chapter.
County welfare departments shall refer all recipients of aid under
this subdivision to a local provider of the Women, Infants and
Children program.  If that payment to pregnant mothers qualified for
aid under subdivision (a) is considered income under federal law in
the first five months of pregnancy, payments under this subdivision
shall not apply to persons eligible under subdivision (a), except for
the month in which birth is anticipated and for the three-month
period immediately prior to the month in which delivery is
anticipated, if the mother, and the child if born, would have
qualified for aid under this chapter.
   (d) For children receiving AFDC-FC under this chapter, there shall
be paid, exclusive of any amount considered exempt as income, an
amount of aid each month which, when added to the child's income, is
equal to the rate specified in Section 11460, 11461, 11462, 11462.1,
or 11463.  In addition, the child shall be eligible for special
needs, as specified in departmental regulations.
   (e) In addition to the amounts payable under subdivision (a) and
Section 11453.1, a family shall be entitled to receive an allowance
for recurring special needs not common to a majority of recipients.
These recurring special needs shall include, but not be limited to,
special diets upon the recommendation of a physician for
circumstances other than pregnancy, and unusual costs of
transportation, laundry, housekeeping service, telephone, and
utilities.  The recurring special needs allowance for each family per
month shall not exceed that amount resulting from multiplying the
sum of ten dollars ($10) by the number of recipients in the family
who are eligible for assistance.
   (f) After a family has used all available liquid resources, both
exempt and nonexempt, in excess of one hundred dollars ($100), the
family shall also be entitled to receive an allowance for
nonrecurring special needs.
   (1) An allowance for nonrecurring special needs shall be granted
for replacement of clothing and household equipment and for emergency
housing needs other than those needs addressed by paragraph (2).
These needs shall be caused by sudden and unusual circumstances
beyond the control of the needy family.  The department shall
establish the allowance for each of the nonrecurring special need
items.  The sum of all nonrecurring special needs provided by this
subdivision shall not exceed six hundred dollars ($600) per event.
   (2) Homeless assistance is available to a homeless family seeking
shelter when the family is eligible for aid under this chapter.
Homeless assistance for
temporary shelter is also available to homeless families which are
apparently eligible for aid under this chapter.  Apparent eligibility
exists when evidence presented by the applicant or which is
otherwise available to the county welfare department and the
information provided on the application documents indicate that there
would be eligibility for aid under this chapter if the evidence and
information were verified.  However, an alien applicant who does not
provide verification of his or her eligible alien status, or a woman
with no eligible children who does not provide medical verification
of pregnancy, is not apparently eligible for purposes of this
section.
   A family is considered homeless, for the purpose of this section,
when the family lacks a fixed and regular nighttime residence; or the
family has a primary nighttime residence that is a supervised
publicly or privately operated shelter designed to provide temporary
living accommodations; or the family is residing in a public or
private place not designed for, or ordinarily used as, a regular
sleeping accommodation for human beings.
   (A) (i) A nonrecurring special need of thirty dollars ($30) a day
shall be available to families for the costs of temporary shelter,
subject to the requirements of this paragraph.  County welfare
departments may increase the daily amount available for temporary
shelter to large families as necessary to secure the additional bed
space needed by the family.
   (ii) This special need shall be granted or denied immediately upon
the family's application for homeless assistance, and benefits shall
be available for up to three working days.  The county welfare
department shall verify the family's homelessness within the first
three working days and if the family meets the criteria of
questionable homelessness established by the department, the county
welfare department shall refer the family to its early fraud
prevention and detection unit, if the county has such a unit, for
assistance in the verification of homelessness within this period.
   (iii) After homelessness has been verified, the three-day limit
shall be extended for a period of time which, when added to the
initial benefits provided, does not exceed a total of 16 calendar
days.  This extension of benefits shall be done in increments of one
week and shall be based upon searching for permanent housing which
shall be documented on a housing search form; good cause; or other
circumstances defined by the department.  Documentation of housing
search shall be required for the initial extension of benefits beyond
the three-day limit and on a weekly basis thereafter as long as the
family is receiving temporary shelter benefits.  Good cause shall
include, but is not limited to, situations in which the county
welfare department has determined that the family, to the extent it
is capable, has made a good faith but unsuccessful effort to secure
permanent housing while receiving temporary shelter benefits.
   (B) A nonrecurring special need for permanent housing assistance
is available to pay for last month's rent and security deposits when
these payments are reasonable conditions of securing a residence.
   The last month's rent portion of the payment (1) shall not exceed
80 percent of the family's maximum aid payment without special needs
for a family of that size and (2) shall only be made to families that
have found permanent housing costing no more than 80 percent of the
family's maximum aid payment without special needs for a family of
that size, in accordance with the maximum aid schedule specified in
subdivision (a).
   However, if the county welfare department determines that a family
intends to reside with individuals who will be sharing housing
costs, the county welfare department shall, in appropriate
circumstances, set aside the condition specified in clause (2) of the
preceding paragraph.
   (C) The nonrecurring special need for permanent housing assistance
is also available to cover the standard costs of deposits for
utilities which are necessary for the health and safety of the
family.
   (D) A payment for or denial of permanent housing assistance shall
be issued no later than one working day from the time that a family
presents evidence of the availability of permanent housing.  If an
applicant family provides evidence of the availability of permanent
housing before the county welfare department has established
eligibility for aid under this chapter, the county welfare department
shall complete the eligibility determination so that the denial of
or payment for permanent housing assistance is issued within one
working day from the submission of evidence of the availability of
permanent housing, unless the family has failed to provide all of the
verification necessary to establish eligibility for aid under this
chapter.
   (E) (i) Except as provided in clauses (ii) and (iii), eligibility
for the temporary shelter assistance and the permanent housing
assistance pursuant to this paragraph shall be limited to one period
of up to 16 consecutive calendar days of temporary assistance and one
payment of permanent assistance.  Any family that includes a parent
or nonparent caretaker relative living in the home who has previously
received temporary or permanent homeless assistance at any time on
behalf of an eligible child shall not be eligible for further
homeless assistance.  Any person who applies for homeless assistance
benefits shall be informed that the temporary shelter benefit of up
to 16 consecutive days is available only once in a lifetime, with
certain exceptions, and that a break in the consecutive use of the
benefit constitutes permanent exhaustion of the temporary benefit.
   (ii) A family that becomes homeless as a direct and primary result
of a state or federally declared natural disaster shall be eligible
for temporary and permanent homeless assistance.
   (iii) A family shall be eligible for temporary and permanent
homeless assistance when homelessness is a direct result of domestic
violence by a spouse, partner, or roommate; physical or mental
illness that is medically verified that shall not include a diagnosis
of alcoholism, drug addiction, or psychological stress; or, the
uninhabitability of the former residence caused by sudden and unusual
circumstances beyond the control of the family including natural
catastrophe, fire, or condemnation.  These circumstances shall be
verified by a third-party governmental or private health and human
services agency and homeless assistance payments based on these
specific circumstances may not be received more often than once in
any 24-month period.
   (iv) The county welfare department shall report to the department
through a statewide homeless assistance payment indicator system,
necessary data, as requested by the department, regarding all
recipients of aid under this paragraph.
   (F) The county welfare departments, and all other entities
participating in the costs of the AFDC program, have the right in
their share to any refunds resulting from payment of the permanent
housing.  However, if an emergency requires the family to move within
the 24-month period specified in subparagraph (E), the family shall
be allowed to use any refunds received from its deposits to meet the
costs of moving to another residence.
   (G) Payments to providers for temporary shelter and permanent
housing and utilities shall be made on behalf of families requesting
these payments.
   (H) The daily amount for the temporary shelter special need for
homeless assistance may be increased if authorized by the current
year's Budget Act by specifying a different daily allowance and
appropriating the funds therefor.
   (I) No payment shall be made pursuant to this paragraph unless the
provider of housing is a commercial establishment, shelter, or
person in the business of renting properties who has a history of
renting properties.
   (g) The department shall establish rules and regulations assuring
the uniform application statewide of this subdivision.
   (h) The department shall notify all applicants and recipients of
aid through the standardized application form that these benefits are
available and shall provide an opportunity for recipients to apply
for the funds quickly and efficiently.
   (i) Except for the purposes of Section 15200, the amounts payable
to recipients pursuant to Section 11453.1 shall not constitute part
of the payment schedule set forth in subdivision (a).
   The amounts payable to recipients pursuant to Section 11453.1
shall not constitute income to recipients of aid under this section.
  
  SEC. 132.  Section 11450.018 of the Welfare and Institutions Code
is amended to read: 
   11450.018.  (a) Notwithstanding any other provision of law, the
maximum aid payment in accordance with paragraph (1) of subdivision
(a) of Section 11450 as reduced by subdivisions (a) and (b) of
Section 11450.01, Section 11450.015, and Section 11450.017, shall be
reduced by 4.9 percent for counties in Region 2, as specified in
Section 11452.018.
   (b) Notwithstanding any other provision of law, through October
31,  1997   1998  , the maximum aid payment
in accordance with paragraph (1) of subdivision (a) of Section
11450, as reduced by subdivision (a) and (b) of Section 11450.01,
Section 11450.015, Section 11450.017, and subdivision (a) shall be
reduced by 4.9 percent.
   (c) Prior to implementing the reductions specified in subdivisions
(a) and (b), the director shall apply for and obtain a waiver from
the United States Department of Health and Human Services of Section
1396a(c)(1) of Title 42 of the United States Code.  The reduction
shall be implemented to the extent the waiver is granted and only so
long as the waiver is effective.  This subdivision shall not apply if
either the federal waiver process set forth at Section 1315 of Title
42 of the United States Code or Section 1396a(c) is repealed or
modified such that a waiver is not necessary to implement subdivision
(a) or (b).
   (d) This section shall become operative and the reductions
specified in subdivisions (a) and (b) shall commence on the first day
of the month following 30 days after the receipt of federal approval
or on the first day of the month following 30 days after a change in
federal law that allows states to reduce aid payments without any
risk to federal funding under Title XIX of the Social Security Act,
whichever is earlier, but no earlier than October 1, 1995.   
  SEC. 133.  Section 11450.1 of the Welfare and Institutions Code is
repealed.  
   11450.1.  During such times that federal law ceases to provide for
a disregard of a certain portion of child support payments as is
presently provided in Section 457(a)(1) of the Social Security Act
and to the extent that there is federal financial participation at a
level of no less than 50 percent of the cost, 40 percent of the first
fifty dollars ($50) of any amount collected in a month which
represents payment on the required support obligation for that month
shall be paid to the recipient and deducted from the amounts
specified in Section 11452, not to exceed the amount of the
difference between such amounts and the amount of the maximum aid
payable pursuant to subdivision (a) of Section 11450.
   The amount paid under this section shall not be considered income
or resources of the recipient and shall not be deducted from the
amount of aid to which the recipient would otherwise be entitled.
   This section shall be inoperative until January 1, 1987, and on
January 1, 1987, this section shall become operative.   

  SEC. 134.  Section 11450.12 is added to the Welfare and
Institutions Code, to read:
   11450.12.  (a) An applicant family shall not be eligible for aid
under this chapter unless the family's income, exclusive of the first
ninety dollars ($90) of earned income for each employed person, is
less than the minimum basic standard of adequate care, as specified
in Section 11452.
   (b) A recipient family shall not be eligible for further aid under
this chapter if income, exclusive of amounts exempt under Section
11451.5, equals or exceeds the maximum aid payment specified in
Section 11450.
  SEC. 135.  Section 11450.13 is added to the Welfare and
Institutions Code, to read:
   11450.13.  In calculating the amount of aid to which an assistance
unit is entitled in accordance with Section 11320.15, the maximum
aid payment, adjusted to reflect the removal of the adult or adults
from the assistance unit, shall be reduced by the gross income of the
adult or adults removed from the assistance unit, less any amounts
exempted pursuant to Section 11451.5. Aid may be provided in the form
of cash or vouchers, at the option of the county.
  SEC. 136.  Section 11450.5 of the Welfare and Institutions Code is
amended to read: 
   11450.5.  For purposes of computing and paying aid grants 
pursuant to the Aid to Families With Dependent Children Program
  under this chapter  , the  Director of
the State Department of Social Services   director 
shall adopt regulations establishing  any   a
 budgeting system  consistent with federal law and
regulations .  Nothing in this section, or Sections 11004,
11257 and 11450, or any other provision of this code, shall be
interpreted as prohibiting the establishment of, or otherwise
restricting the operation of, any budgeting system adopted  by
the director  .   In computing and paying AFDC aid
grants, the term "month" shall mean "budget month" or "payment month"
as these terms are used in federal law and regulations. 

  SEC. 137.  Section 11450.6 of the Welfare and Institutions Code is
repealed.  
   11450.6.  Out of any money made available under the provisions of
Item 282 of the Budget Act of 1968, the department shall allocate to
the county departments, together with any federal funds available, an
amount equal to the nonfederal share of the total cost of child care
services pursuant to this section.  To the extent of funds so
allocated, each county department shall provide child care services
subject to the regulations of the State Department of Social Services
for persons receiving aid under this chapter who are in need of such
services because they are engaged in, or, if provided such services,
could engage in a work incentive program or approved vocational
development program.   
  SEC. 138.  Section 11451.5 is added to the Welfare and Institutions
Code, to read:
   11451.5.  (a) Notwithstanding Section 11008, the following amounts
shall be exempt from the calculation of the income of the family for
purposes of subdivision (a) of Section 11450:
   (1) If disability-based unearned income does not exceed two
hundred twenty-five dollars ($225), both of the following amounts:
   (A) All disability-based unearned income plus any amount of not
otherwise exempt earned income equal to the amount of the difference
between the amount of disability-based unearned income and two
hundred twenty-five dollars ($225).
   (B) Fifty percent of all not otherwise exempt earned income in
excess of the amount applied to meet the differential applied in
subparagraph (A).
   (2) If disability-based unearned income exceeds two hundred
twenty-five dollars ($225), both of the following amounts:
   (A) All of the first two hundred twenty-five dollars ($225) in
disability-based unearned income.
   (B) Fifty percent of all earned income.
   (b) For purposes of this section:
   (1) Earned income means gross income received as wages, salary,
employer provided sick leave benefits, commissions, or profits from
activities such as a business enterprise or farming in which the
recipient is engaged as a self-employed individual or as an employee.

   (2) Disability-based unearned income means State Disability
Insurance benefits, private disability insurance benefits, Temporary
Workers' Compensation benefits, and social security disability
benefits.
   (3) Unearned income means any income not described in paragraph
(1) or (2).
  SEC. 139.  Section 11451.6 of the Welfare and Institutions Code is
repealed.  
   11451.6.  Notwithstanding Section 11008, any exemption from earned
income for work-related child care expenses shall be limited to the
reasonable and necessary costs for child care for children during
such times that the Superintendent of Public Instruction advises the
welfare director of the county that he is unable to provide child
care for each child eligible for services under Division 12.5
(commencing with Section 16700) of the Education Code. For purposes
of this section, reasonable and necessary costs of child care are
defined as actual costs, not to exceed the maximum allowance under
federal law.
   To the maximum extent possible, child care shall be provided as a
service cost pursuant to Division 12.5 (commencing with Section
16700) of Part 3 of the Education Code.   
  SEC. 140.  Section 11451.7 of the Welfare and Institutions Code is
repealed.  
   11451.7.  There shall be paid to each family eligible under this
chapter, together with the amounts paid pursuant to Section 11450, a
supplemental child care payment, to the maximum extent consistent
with federal law and subject to federal financial participation.
  
  SEC. 141.  Section 11453 of the Welfare and Institutions Code is
amended to read: 
   11453.  (a) Except as provided in subdivision (c), the amounts set
forth in Section 11452 and subdivision (a) of Section 11450 shall be
adjusted annually by the department to reflect any increases or
decreases in the cost of living.  These adjustments shall become
effective July 1 of each year, unless otherwise specified by the
Legislature.  The cost-of-living adjustment shall be calculated by
the Department of Finance based on the changes in the California
Necessities Index, which as used in this section means the weighted
average changes for food, clothing, fuel, utilities, rent, and
transportation for low-income consumers.  The computation of annual
adjustments in the California Necessities Index shall be made in
accordance with the following steps:
   (1) The base period expenditure amounts for each expenditure
category within the California Necessities Index used to compute the
annual grant adjustment are:


Food ................................       $ 3,027
Clothing (apparel and upkeep) .......           406
Fuel and other utilities ............           529
Rent, residential ...................         4,883
Transportation ......................         1,757
                                            ------
    Total ...........................       $10,602

   (2) Based on the appropriate components of the Consumer Price
Index for All Urban Consumers, as published by the United States
Department of Labor, Bureau of Labor Statistics, the percentage
change shall be determined for the 12-month period ending with the
December preceding the year for which the cost-of-living adjustment
will take effect, for each expenditure category specified in
subdivision (a) within the following geographical areas:  Los
Angeles-Long Beach-Anaheim, San Francisco-Oakland, San Diego, and, to
the extent statistically valid information is available from the
Bureau of Labor Statistics, additional geographical areas within the
state which include not less than 80 percent of recipients of aid
under this chapter.
   (3) Calculate a weighted percentage change for each of the
expenditure categories specified in subdivision (a) using the
applicable weighting factors for each area used by the State
Department of Industrial Relations to calculate the California
Consumer Price Index (CCPI).
   (4) Calculate a category adjustment factor for each expenditure
category in subdivision (a) by (1) adding 100 to the applicable
weighted percentage change as determined in paragraph (2) and (2)
dividing the sum by 100.
   (5) Determine the expenditure amounts for the current year by
multiplying each expenditure amount determined for the prior year by
the applicable category adjustment factor determined in paragraph
(4).
   (6) Determine the overall adjustment factor by dividing (1) the
sum of the expenditure amounts as determined in paragraph (4) for the
current year by (2) the sum of the expenditure amounts as determined
in subdivision (d) for the prior year.
   (b) The overall adjustment factor determined by the preceding
computation steps shall be multiplied by the schedules established
pursuant to Section 11452 and subdivision (a) of Section 11450 as are
in effect during the month of June preceding the fiscal year in
which the adjustments are to occur and the product rounded to the
nearest dollar.  The resultant amounts shall constitute the new
schedules which shall be filed with the Secretary of State.
   (c) (1) No adjustment to the maximum aid payment set forth in
subdivision (a) of Section 11450 shall be made under this section for
the purpose of increasing the benefits under this chapter for the
1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96,  and
 1996-97  , and 1997-98  fiscal years, and through
October 31,  1997   1998  , to reflect any
change in the cost of living.  For the  1997-98 
 1998-99  fiscal year, the cost-of-living adjustment that
would have been provided on July 1,  1997   1998
 , pursuant to subdivision (a) shall be made on November 1,
 1997   1998  .  Elimination of the
cost-of-living adjustment pursuant to this paragraph shall satisfy
the requirements of Section 11453.05, and no further reduction shall
be made pursuant to that section.
   (2) No adjustment to the minimum basic standard of adequate care
set forth in Section 11452 shall be made under this section for the
purpose of increasing the benefits under this chapter for the 1990-91
and 1991-92 fiscal years to reflect any change in the cost of
living.
   (d) Adjustments for subsequent fiscal years pursuant to this
section shall not include any adjustments for any fiscal year in
which the cost of living was suspended pursuant to subdivision (c).

  SEC. 142.  Section 11453.2 of the Welfare and Institutions Code is
repealed.  
   11453.2.  To the extent permitted by federal law, counties may
allow vendor payments for nonrecurring special needs as provided in
subsection (2) of subdivision (d) of Section 11450.   
  SEC. 143.  Section 11453.2 is added to the Welfare and Institutions
Code, to read:
   11453.2.  A county shall issue vouchers or vendor payments for at
least rent and utilities payments, for any assistance unit in which
any parent or caretaker relative has been subject to sanction of a
consecutive period of not less than three months.  Vouchers or vendor
payments shall continue until the parent or caretaker relative is no
longer subject to the sanction.
  SEC. 144.  Section 11454 is added to the Welfare and Institutions
Code, to read:
   11454.  (a) (1) Except as otherwise provided in this chapter and
in paragraph (2), a parent or caretaker relative shall not be
eligible to receive aid for a cumulative period of more than 18
months after the implementation pursuant to paragraph (1) of
subdivision (c) of Section 10532 unless it is certified by the county
that there is no job currently available for the recipient and the
recipient participates in community service activities, pursuant to
Section 11322.9.
   (2) A parent or caretaker relative recipient who is subject to the
requirements of paragraph (2) of subdivision (c) of Section 10532
shall not be eligible to receive aid under this chapter for a
cumulative period of more than 24 months, unless it is certified by
the county that there is no job currently available for the recipient
and the recipient participates in community service activities
pursuant to Section 11322.9.
   (3) For purposes of this subdivision, a job shall not be
considered to be currently available if a recipient has taken and
continues to take all steps to apply for appropriate positions and
has not refused an offer of employment without good cause.
   (4) A parent or caretaker relative recipient to whom paragraph (1)
or (2) applies, who is in a job for less than the number of hours
required by Section 11322.8, and for whom no job is currently
available for the required number of hours, shall remain eligible for
aid under this chapter and shall participate in community service
activities for the additional number of hours necessary to meet the
requirements of Section 11322.8.
   (b) A parent or caretaker relative shall not be eligible for aid
under this chapter when he or she has received aid under this chapter
or from any state under the Temporary Assistance for Needy Families
program (Part A (commencing with Section 401) of Title IV of the
federal Social Security Act (42 U.S.C. Sec. 601 et seq.) for a
cumulative total of 60 months.
   (c) No month in which aid has been received prior to January 1,
1998, shall be taken into consideration in computing the 18-month,
24-month, or 60-month limitation provided for in subdivision (a) or
(b).
   (d) Each county shall adopt criteria for extending the 18-month
limitation prescribed by subdivision (a) for up to six months if the
extension is likely to result in unsubsidized employment or if local
unemployment rates or other conditions in the local economy are such
                                             that employment is not
available.
   (e) Subdivision (b) shall not be applicable when all parent or
caretaker relatives of the aided child who are living in the home of
the child meet any of the following requirements:
   (1) They are 60 years of age or older.
   (2) They meet one of the conditions specified in paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (3) They are not included in the assistance unit.
   (4) They are receiving benefits under Section 12200 or Section
12300, State Disability Insurance benefits or Workers' Compensation
Temporary Disability Insurance, if the disability significantly
impairs the recipient's ability to be regularly employed or
participate in welfare-to-work activities.
   (5) They are incapable of maintaining employment or participating
in welfare-to-work activities, as determined by the county, based on
the assessment of the individual and the individual has a history of
participation and full cooperation in welfare-to-work activities.
  SEC. l45.  Section 11454.5 is added to the Welfare and Institutions
Code, to read:
   11454.5.  (a) Any month in which a recipient is not required to
participate in welfare-to-work activities pursuant to subdivision (b)
of Section 11320.3 because of a condition that is expected to last
at least 30 days or is eligible for, participating in, or exempt
from, the Cal-Learn program provided for pursuant to Article 3.5
(commencing with Section 11331) or is participating in another teen
parent program approved by the department shall not be counted as a
month of receipt of aid for the purpose of subdivision (a) of Section
11454.
   (b) Any month in which the following conditions exist shall not be
counted as a month of receipt of aid for the purposes of subdivision
(b) of Section 11454:
   (1) The recipient is exempt from participation under Article 3.2
(commencing with Section 11320) due to disability, or advanced age in
accordance with paragraph (1) of subdivision (b) of Section 11320.3,
or due to caretaking responsibilities that impair the recipient's
ability to be regularly employed, in accordance with paragraph (2) or
(3) of subdivision (b) of Section 11320.3.
   (2) The recipient is eligible for the Cal-Learn program pursuant
to Article 3.5 (commencing with Section 11331).
   (3) The cost of the cash aid provided to the recipient for the
month is fully reimbursed by child support, whether collected in that
month or any subsequent month.
   (c) In cases where a lump-sum diversion payment is provided in
lieu of cash aid under Section 11266.5, the month in which the
payment is made or the months calculated pursuant to subdivision (f)
of Section 11266.5 shall count against the limits specified in
Section 11454.
  SEC. 146.  Section 11454.6 is added to the Welfare and Institutions
Code, to read:
   11454.6.  (a) Notwithstanding Section 15200, to the extent that
the exemptions from the time limits on aid specified in subdivision
(e) of Section 11454 and subdivision (b) of Section 11454.5 exceed 20
percent of the number of families aided in a county, for a period as
determined by the United States Department of Health and Human
Services, for purposes of measuring the hardship exemption for time
limits, the county shall be responsible for the amount of aid that
would otherwise have been paid through federal Temporary Assistance
for Needy Families block grant funds pursuant to Section 11450, with
respect to those persons exempt under either subdivision (e) of
Section 11454 or subdivision (b) of Section 11454.5 that exceed the
20 percent hardship exemption during the period determined by the
United States Department of Health and Human Services and provided
for in federal law.
   (b) Subdivision (a) shall not apply if the statewide percentage of
families aided during that period is 20 percent or less.
   (c) The department may determine that a county has good cause for
exceeding the 20-percent limitation provided for in subdivision (a).
Under this determination, the county share may be reduced or waived
by the department.
   (d) It is the intent of the Legislature that the steering
committee as specified in Section 10544.317 review this provision to
ensure that:
   (1) The state does not exceed the limit on hardship exemptions as
provided in federal law.
   (2) Counties are not penalized for circumstances beyond their
control and that statewide flexibility for allocation of the
percentages is assured.
   (3) Recipients will have access to the hardship exemption,
regardless of their county of origin.
  SEC. 147.  Section 11475.3 is added to the Welfare and Institutions
Code, to read:
   11475.3.  The first fifty dollars ($50) of any amount of child
support collected in a month in payment of the required support
obligation for that month shall be paid to a recipient of aid under
this chapter, except recipients of foster care payments under Article
5 (commencing with Section 11400) shall not be considered income or
resources of the recipient family, and shall not be deducted from the
amount of aid to which the family would otherwise be eligible.  The
district attorney in each county shall ensure that payments are made
to recipients as required by this section.
  SEC. 148.  Section 11475.4 is added to the Welfare and Institutions
Code, to read:
   11475.4.  (a) Effective October 1, 1998, the state shall operate a
Child Support Centralized Collection and Distribution Unit as
required by federal law (42 U.S.C. Secs. 654 (27), 654a(g), and
654b).
   (b) The Child Support Collection and Enforcement Advisory
Committee is hereby created to review and make recommendations
regarding the development and implementation of the Child Support
Centralized Collection and Distribution Unit.  The advisory committee
shall include, but not be limited to, the Director of Social
Services or a designee from the State Department of Social Services,
who shall serve as the chairperson and convene the advisory
committee, and representatives from the Franchise Tax Board, the
Health and Welfare Agency Data Center, the Department of Information
Technology, the California District Attorneys Association, the
California State Association of Counties, the California Welfare
Directors Association, the California Payroll Association, and
representatives of the Legislature.
   (c) On the effective date of this section, the State Department of
Social Services shall deliver to the advisory committee the working
draft report of the feasibility study conducted by Warner Group for
purposes of developing a Child Support Centralized Collection and
Distribution Unit.
   (d) The advisory committee shall examine the Warner Group draft
report, obtain clarification from Warner Group, determine the status
of the Statewide Automated Child Support System (SACSS) in regards to
its impact on the development of the Child Support Centralized
Collection and Distribution Unit, determine the requirements of
federal law, and submit an interim progress report, including any
recommendations for action, to the Legislature no later than October
1, 1997.
   (e) The advisory committee shall make recommendations to the
Legislature for implementation of the Child Support Centralized
Collection and Distribution Unit, including recommendations for
deficiency budget requests if necessary, no later than December 31,
1997.
  SEC. 149.  Section 11477 of the Welfare and Institutions Code is
amended to read: 
   11477.  As a condition of eligibility for aid paid under this
chapter, each applicant or recipient shall  do all of the
following  :
   (a)  (1)  Assign to the county any rights to support from
any other person  such   the  applicant
 or recipient  may have in  their   his
or her own behalf or in behalf of any other family member for
whom the applicant  or recipient  is applying for or
receiving aid,  and which have accrued at the time such
assignment is made   not exceeding the total amount of
cash assistance provided to the family under this chapter  .
Receipt of public assistance under this chapter shall operate as an
assignment by operation of law.  An assignment of support rights to
the county shall also constitute an assignment to the state.  If
support rights are assigned pursuant to this subdivision, the
assignee may become an assignee of record by the district attorney or
other public official filing with the court clerk an affidavit
showing that an assignment has been made or that there has been an
assignment by operation of law.  This procedure does not limit any
other means by which the assignee may become an assignee of record.

   (2) Support that has been assigned pursuant to paragraph (1) and
that accrues while the family is receiving aid under this chapter
shall be permanently assigned until the entire amount of aid paid has
been reimbursed.
   (3) If the federal government does not permit states to adopt the
same order of distribution for preassistance and postassistance child
support arrears that are assigned on or after October 1, 1998,
support arrears that accrue before the family receives aid under this
chapter that are assigned pursuant to this subdivision shall be
assigned as follows:
   (A) Child support assigned prior to January 1, 1998, shall be
permanently assigned until aid is no longer received and entire
amount of aid has been reimbursed.
   (B) Child support assigned on or after January 1, 1998, but prior
to October 1, 2000, shall be temporarily assigned until aid under
this chapter is no longer received and the entire amount of aid paid
has been reimbursed or until October 1, 2000, whichever comes first.

   (C) On or after October 1, 2000, support assigned pursuant to this
subdivision that was not otherwise permanently assigned shall be
temporarily assigned to the county until aid is no longer received.
   (D) On or after October 1, 2000, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.
   (4) If the federal government permits states to adopt the same
order of distribution for preassistance and postassistance child
support arrears, child support arrears shall be assigned, as follows:

   (A) Child support assigned pursuant to this subdivision prior to
October 1, 1998, shall be assigned until aid under this chapter is no
longer received and the entire amount has been reimbursed.
   (B) On or after October 1, 1998, child support assigned pursuant
to this subdivision that accrued before the family receives aid under
this chapter and that was not otherwise permanently assigned, shall
be temporarily assigned until aid under this chapter is no longer
received.
   (C) On or after October 1, 1998, support that was temporarily
assigned pursuant to this subdivision shall, when a payment is
received from the federal tax intercept program, be temporarily
assigned until the entire amount of aid paid has been reimbursed.

   (b)  (1)  Cooperate with the county welfare department
and district attorney in establishing the paternity of a child 
of the applicant or recipient  born out of wedlock with respect
to whom aid is claimed, and in  obtaining any support
payments due any person   establishing, modifying, or
enforcing a support order with respect to a child of the individual
 for whom aid is requested or obtained  , unless the
applicant or recipient qualifies for a good cause exception as
provided in Section 11477.04  .   The State Department
of Social Services shall establish an exclusive list of acts, in
accordance with federal law, which shall be the only acts deemed to
be a refusal to offer reasonable cooperation and assistance.  The
county welfare department shall verify that the applicant or
recipient refused to offer reasonable cooperation prior to
determining that such applicant or recipient is ineligible.  The
granting of aid shall not be delayed or denied if the applicant is
otherwise eligible, if the applicant completes the necessary forms
and agrees to cooperate with the district attorney in securing
support and determining paternity, where applicable.
   A recipient shall be considered to be cooperating with the county
welfare department or the district attorney's office and they shall
be eligible for aid, if otherwise eligible, if they cooperate to the
best of their ability or have good cause for refusal to cooperate.
The department, in accordance with federal law, shall establish
standards for determining good cause for refusal to cooperate.  With
respect to any application or any questionnaire relating to any
application, no questions on paternity shall be asked in cases where
paternity is not legally an issue.  Persons eligible for immediate
aid pursuant to Section 11056 or Section 11266 shall receive such aid
prior to completing the forms required to obtain child and spousal
support and establish paternity, provided that they indicate they
will cooperate in these matters.  Appearances at public agencies
required pursuant to this section, subsequent to certification of the
applicant shall be scheduled with due regard for his parental duties
and employment responsibilities.  If an appearance is required at a
time other than normal working hours, a statement as to the reason
for such appearance shall be inserted in the file of the applicant.
   If the relative with whom a child is living is found to be
ineligible because of failure to comply with the provisions of this
section, any aid for which such child is eligible will, to the extent
required by federal law, be provided in the form of protective
payments.
   The county welfare department shall insure that all applicants for
or recipients of aid under this chapter are properly notified of the
conditions imposed by this section.   The district
attorney shall have staff available, in person or by telephone, at
all county welfare offices and shall conduct an interview with each
applicant to obtain information necessary to establish paternity and
establish, modify, or enforce a support order at the time of the
initial interview with the welfare office.  The district attorney
shall make the determination of cooperation.  If the applicant or
recipient attests under penalty of perjury that he or she cannot
provide the information required by this subdivision, the district
attorney shall make a finding regarding whether the individual could
reasonably be expected to provide the information, before the
district attorney determines whether the individual is cooperating.
In making the finding, the district attorney shall consider all of
the following:
   (A) The age of the child for whom support is sought.
   (B) The circumstances surrounding the conception of the child.
   (C) The age or mental capacity of the parent or caretaker of the
child for whom aid is being sought.
   (D) The time that has elapsed since the parent or caretaker last
had contact with the alleged father or obligor.
   (2) Cooperation includes the following:
   (A) Providing the name of the alleged parent or obligor and other
information about that person if known to the applicant or recipient,
such as address, social security number, telephone number, place of
employment or school, and the names and addresses of relatives or
associates.
   (B) Appearing at interviews, hearings, and legal proceedings
provided the applicant or recipient is provided with reasonable
advance notice of the interview, hearing, or legal proceeding and
does not have good cause not to appear.
   (C) If paternity is at issue, submitting to genetic tests,
including genetic testing of the child, if necessary.
   (D) Providing any additional information known to or reasonably
obtainable by the applicant or recipient necessary to establish
paternity or to establish, modify, or enforce a child support order.

   (3) A recipient or applicant shall not be required to sign a
voluntary declaration of paternity, as set forth in Chapter 3
(commencing with Section 7570) of Part 2 of Division 12 of the Family
Code, as a condition of cooperation.   
  SEC. 150.  Section 11477.02 is added to the Welfare and
Institutions Code, to read:
   11477.02.  Prior to referral of any individual or recipient, or
that person's case, to the district attorney for child support
services under Section 11350.1 or 11475.1, the county welfare
department shall determine if an applicant or recipient has good
cause for noncooperation, as set forth in Section 11477.04.  If the
applicant or recipient claims a good cause exception at any
subsequent time to the county welfare department or the district
attorney, the district attorney shall suspend child support services
until the county welfare department determines the good cause claim,
as set forth in Section 11477.04.  If good cause is determined to
exist, the district attorney shall suspend child support services
until the applicant or recipient requests their resumption, and shall
take such other measures as are necessary to protect the applicant
or recipient and the children.  If the applicant or recipient is the
parent of the child for whom aid is sought and the parent is found to
have not cooperated without good cause as provided in Section
11477.04, the applicant's or recipient's family grant shall be
reduced by 25 percent for such time as the failure to cooperate
lasts.
  SEC. 151.  Section 11477.04 is added to the Welfare and
Institutions Code, to read:
   11477.04.  (a) An applicant or a recipient shall be considered to
be cooperating in good faith with the county welfare department or
the district attorney's office for purposes of Section 11477 and
shall be eligible for aid, if otherwise eligible, if he or she
cooperates or has good cause for noncooperation.  The county welfare
department shall make the good cause determination.
   (b) Good cause shall be found if any of the following conditions
exist:
   (1) Efforts to establish paternity or establish, modify, or
enforce a support obligation would increase the risk of physical,
sexual, or emotional harm to the child for whom support is being
sought.
   (2) Efforts to establish paternity or establish, modify, or
enforce a support obligation would increase the risk of abuse, as
defined in Section 11495.1, to the parent or caretaker with whom the
child is living.
   (3) The child for whom support is sought was conceived as a result
of incest or rape.  A conviction for incest or rape is not necessary
for this paragraph to apply.
   (4) Legal proceedings for the adoption of the child are pending
before a court of competent jurisdiction.
   (5) The applicant or recipient is currently being assisted by a
public or licensed private adoption agency to resolve the issue of
whether to keep the child or relinquish the child for adoption.
   (6) The applicant or recipient is cooperating in good faith but is
unable to identify or assist in locating the alleged father or
obligor.
   (7) Any other reason that would make efforts to establish
paternity or establish, modify, or enforce a support obligation
contrary to the best interests of the child.
   (c) Evidence supporting a claim for good cause includes, but is
not limited to, the following:
   (1) Police, governmental agency, or court records, documentation
from a domestic violence program or a legal, clerical, medical,
mental health, or other professional from whom the applicant or
recipient has sought assistance in dealing with abuse, physical
evidence of abuse, or any other evidence that supports the claim of
good cause.
   (2) Statements under penalty of perjury from individuals,
including the applicant or recipient, with knowledge of the
circumstances that provide the basis for the good cause claim.
   (3) Birth certificates or medical, mental health, rape crisis,
domestic violence program, or law enforcement records that indicate
that the child was conceived as the result of incest or rape.
   (4) Court documents or other records that indicate that legal
proceedings for adoption are pending before a court of competent
jurisdiction.
   (5) A written statement from a public or licensed private adoption
agency that the applicant or recipient is being assisted by the
agency to resolve the issue of whether to keep the child or
relinquish the child for adoption.
   (d) A sworn statement by a victim shall be sufficient to establish
abuse unless the agency documents in writing an independent,
reasonable basis to find the recipient not credible.
   (e) Applicants or recipients who inquire about or claim good
cause, or otherwise indicate that they or their children are at risk
of abuse, shall be given referrals by the county welfare department
to appropriate community, legal, medical, and support services.
Followup by the applicant or recipient on those referrals shall not
affect eligibility for assistance under this chapter or the
determination of cooperation.
  SEC. 152.  Section 11486 of the Welfare and Institutions Code is
repealed.  
   11486.  (a) (1) The needs of any individual who is a member of a
family applying for, or receiving, aid under this chapter to whom
paragraph (2) applies shall not be taken into account in making the
determination under Section 11450 with respect to his or her family
for the following periods:
   (A) For a period of six months upon the first occasion of any
offense referred to in paragraph (2).
   (B) For a period of 12 months upon the second occasion of any of
those offenses referred to in paragraph (2).
   (C) Permanently, upon the third occasion of any offense referred
to in paragraph (2).
   (2) Except as provided in subdivision (b), paragraph (1) shall
apply to any individual who is found by a federal or state court, or
pursuant to a special administrative hearing meeting the requirements
of regulations adopted by the United States Secretary of Health and
Human Services, including any determination made on the basis of a
plea of guilty or nolo contendere, to have done any of the following
acts for the purpose of establishing or maintaining the family's
eligibility for aid or increasing, or preventing a reduction in, the
amount of that aid:
   (A) Making a false or misleading statement or misrepresenting,
concealing, or withholding facts.
   (B) Committing any act intended to mislead, misrepresent, conceal,
or withhold facts or propound a falsity.
   (b) (1) Notwithstanding subdivision (a), the needs of any
individual who is a member of a family applying for, or receiving,
aid under this chapter to whom paragraph (2) applies shall not be
taken into account in making the determination under Section 11450
with respect to his or her family for the following periods:
   (A) For a period of two years upon the first occasion of any
offense referred to in paragraph (2).
   (B) For a period of four years upon the second occasion of any
offense referred to in paragraph (2).
   (C) Permanently, upon the third occasion of any offense referred
to in paragraph (2).
   (2) Paragraph (1) shall apply to any individual who is found by a
federal or state court, or pursuant to a special administrative
hearing meeting the requirements of regulations adopted by the United
States Secretary of Health and Human Services, including any
determination                                              made on
the basis of a plea of guilty or nolo contendere, to have done any of
the following acts for the purpose of establishing or maintaining
the family's eligibility for aid or increasing, or preventing a
reduction in, the amount of that aid:
   (A) Submitting more than one application for the same type of aid
for the same period of time, for the purpose of receiving more than
one grant of aid.
   (B) Submitting documents for nonexistent children, or submitting
false documents for the purpose of showing ineligible children to be
eligible for aid.
   (3) This subdivision shall become operative on the date that, and
only if, the director has executed a declaration, that shall be
retained by the director, stating that any federal waivers necessary
for the implementation of this subdivision have been obtained.  This
subdivision shall remain operative only so long as the waivers are
effective.
   (c) Proceedings against any individual alleged to have committed
an offense described in subdivision (a) or (b) may be held either by
hearing, pursuant to Section 10950 and in conformity with the
regulations of the United States Secretary of Health and Human
Services, if appropriate, or by referring the matter to the
appropriate authorities for civil or criminal action in court.
   (d) The department shall coordinate any action taken under this
section with any corresponding actions being taken under the Food
Stamp Program in any case where the factual issues involved arise
from the same or related circumstances.
   (e) Any period for which sanctions are imposed under this section
shall remain in effect, without possibility of administrative stay,
unless and until the findings upon which the sanctions were imposed
are subsequently reversed by a court of appropriate jurisdiction, but
in no event shall the duration of the period for which the sanctions
are imposed be subject to review.
   (f) Sanctions imposed under this section shall be in addition to,
and not in substitution for, any other sanctions which may be
provided for by law with respect to the offenses for which the
sanctions are imposed.
   (g) The department shall adopt regulations to ensure that any
investigations made under this chapter are conducted throughout the
state in such a manner as to protect the confidentiality of the
current or former working recipient.   
  SEC. 153.  Section 11486 is added to the Welfare and Institutions
Code, to read:
   11486.  (a) The needs of any individual who is a member of a
family applying for, or receiving, aid under this chapter shall not
be taken into account in making the determination under Section 11450
with respect to his or her family beginning on the date, or at any
time thereafter, the individual is found in state or federal court or
pursuant to an administrative hearing decision, including any
determination made on the basis of a plea of guilty or nolo
contendere, to have committed any of the following acts:
   (1) Making a fraudulent statement or representation with respect
to the place of residence of the individual in order to receive
assistance simultaneously from two or more states or counties.
   (2) Submitting documents for nonexistent children, or submitting
false documents for the purpose of showing ineligible children to be
eligible for aid.
   (3) When there has been a receipt of cash benefits that exceeds
ten thousand dollars ($10,000) as a result of intentionally and
willfully doing any of the following acts for the purpose of
establishing or maintaining the family's eligibility for aid or
increasing or preventing a reduction in the amount of aid:
   (A) Making a false or misleading statement or misrepresenting,
concealing, or withholding facts.
   (B) Committing any act intended to mislead, misrepresent, conceal,
or withhold facts or propound a falsity.
   (b) The needs of any individual who is a member of a family
applying for, or receiving, aid under this chapter shall not be taken
into account in making the determination under Section 11450 with
respect to his or her family for the following periods beginning on
the date or any time thereafter the individual is convicted of a
felony in state or federal court, including any determination made on
the basis of a plea of guilty or nolo contendere, for committing
fraud in the receipt or attempted receipt of aid:
   (1) For two years, if the amount of aid is less than two thousand
dollars ($2,000).
   (2) For five years, if the amount of aid is two thousand dollars
($2,000) or more but is less than five thousand dollars ($5,000).
   (3) Permanently, if the amount of aid is five thousand dollars
($5,000) or more.
   (c) (1) Except as provided in subdivisions (a) and (b), the needs
of any individual who is a member of a family applying for, or
receiving, aid under this chapter to whom paragraph (2) applies shall
not be taken into account in making the determination under Section
11450 with respect to his or her family for the following periods:
   (A) For a period of six months upon the first occasion of any
offense referred to in paragraph (2).
   (B) For a period of 12 months upon the second occasion of any of
those offenses referred to in paragraph (2).
   (C) Permanently, upon the third occasion of any offense referred
to in subdivision (b) and paragraph (2).
   (2) Except as provided in subdivisions (a), (b) and (d), paragraph
(1) shall apply to any individual who is found by a federal or state
court, or pursuant to a special administrative hearing meeting the
requirements of regulations adopted by the United States Secretary of
Health and Human Services, including any determination made on the
basis of a plea of guilty or nolo contendere, to have done any of the
following acts for the purpose of establishing or maintaining the
family's eligibility for aid or increasing, or preventing a reduction
in, the amount of that aid:
   (A) Making a false or misleading statement or misrepresenting,
concealing, or withholding facts.
   (B) Committing any act intended to mislead, misrepresent, conceal,
or withhold facts or propound a falsity.
   (d) (1) Except as provided in subdivisions (a) and (b), and
notwithstanding subdivision (c), the needs of any individual who is a
member of a family applying for, or receiving, aid under this
chapter to whom paragraph (2) applies shall not be taken into account
in making the determination under Section 11450 with respect to his
or her family for the following periods:
   (A) For a period of two years upon the first occasion of any
offense referred to in paragraph (2).
   (B) For a period of four years upon the second occasion of any
offense referred to in paragraph (2).
   (C) Permanently, upon the third occasion of any offense referred
to in subdivision (b) and paragraph (2).
   (2) Paragraph (1) shall apply to any individual who is found by a
federal or state court, or pursuant to a special administrative
hearing meeting the requirements of regulations adopted by the United
States Secretary of Health and Human Services, including any
determination made on the basis of a plea of guilty or nolo
contendere, to have submitted more than one application for the same
type of aid for the same period of time, for the purpose of receiving
more than one grant of aid in order to establish or maintain the
family's eligibility for aid or increasing, or preventing a reduction
in, the amount of that aid.
   (e) Proceedings against any individual alleged to have committed
an offense described in subdivision (c) or (d) may be held either by
hearing, pursuant to Section 10950 and in conformity with the
regulations of the United States Secretary of Health and Human
Services, if appropriate, or by referring the matter to the
appropriate authorities for civil or criminal action in court.
   (f) The department shall coordinate any action taken under this
section with any corresponding actions being taken under the Food
Stamp Program in any case where the factual issues involved arise
from the same or related circumstances.
   (g) Any period for which sanctions are imposed under this section
shall remain in effect, without possibility of administrative stay,
unless and until the findings upon which the sanctions were imposed
are subsequently reversed by a court of appropriate jurisdiction, but
in no event shall the duration of the period for which the sanctions
are imposed be subject to review.
   (h) Sanctions imposed under this section shall be in addition to,
and not in substitution for, any other sanctions which may be
provided for by law with respect to the offenses for which the
sanctions are imposed.
   (i) The department shall adopt regulations to ensure that any
investigations made under this chapter are conducted throughout the
state in such a manner as to protect the confidentiality of the
current or former working recipient.
   (j) Each county shall receive 25 percent of the actual state share
of savings, including federal funds under the Temporary Assistance
to Needy Families Block Grant, as determined by the director of the
Department of Finance resulting from the detection of fraud.
  SEC. 154.  Section 11486.5 is added to the Welfare and Institutions
Code, to read:
   11486.5.  (a) An individual shall not be eligible for aid under
this chapter if he or she is either:
   (1) Fleeing to avoid prosecution, or custody and confinement after
conviction, under the laws of the place from which the individual is
fleeing, for a crime or an attempt to commit a crime that is a
felony under the laws of the place from which the individual is
fleeing, or which, in the case of the State of New Jersey, is a high
misdemeanor under the laws of that state.
   (2) Violating a condition of probation or parole imposed under
federal law or the law of any state.
   (b) Subdivision (a) shall not apply with respect to conduct of an
individual for any month beginning after the President of the United
States grants a pardon with respect to the conduct.
  SEC. 155.  Article 7.5 (commencing with Section 11495) is added to
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 7.5.  Family Violence Option:  Domestic Violence and
Welfare

   11495.  It is the intent of the Legislature in enacting this
article to adopt a family violence provision by enacting the federal
option concerning victims of domestic violence provided for in the
Temporary Assistance to Needy Families program pursuant to Section
402(a)(7) of the Social Security Act (42 U.S.C. Sec. 602(a)(7)).  By
adopting this provision, the Legislature recognizes that some
individuals who may need public assistance have been or are victims
of abuse, and intends to ensure that applicants and recipients who
are past or present victims of abuse are not placed at further risk
or unfairly penalized by CalWORKs requirements and procedures.  The
Legislature intends that, in implementing this article, program
requirements not be created or applied in such a way as to encourage
a victim to remain with the abuser.  It is also the intent of the
Legislature that CalWORKs recipients participate in welfare-to-work
activities, to the full extent of their abilities, including
participation in counselling and treatment programs, as appropriate,
to enable the recipient to obtain unsubsidized employment and move
towards self-sufficiency.
   11495.1.  (a) The department shall convene a task force including,
but not limited to, district attorney domestic violence units,
county departments of social services, the County Welfare Directors
Association of California, the California State Association of
Counties, statewide domestic violence prevention groups, local
domestic violence prevention advocates, and service providers, the
State Department of Health Services, the State Department of Mental
Health, and the Office of Criminal Justice Planning.  The department
shall develop, in consultation with the task force, protocols on
handling cases in which recipients are past or present victims of
abuse.  The protocols shall define domestic abuse, and shall address
training standards and curricula, individual case assessments,
confidentiality procedures, notice procedures and counseling or other
appropriate participation requirements as part of an overall plan to
transition from welfare-to-work.  The protocol shall specify how
counties shall do the following:
   (1) Identify applicants and recipients of assistance under this
chapter who have been or are victims of abuse, including those who
self-identify, while protecting confidentiality.
   (2) Refer these individuals to supportive services.
   (3) Waive, on a case-by-case basis, for so long as necessary,
pursuant to a determination of good cause under paragraph (2) of
subdivision (f) of Section 11320.3, any program requirements that
would make it more difficult for these individuals or their children
to escape abuse, and that would be detrimental or unfairly penalize
past or present victims of abuse.  Requirements that may be waived
include, but are not limited to, time limits on receipt of
assistance, work requirements, educational requirements, paternity
establishment and child support cooperation requirements.
   (b) The department shall issue regulations describing the protocol
identified in subdivision (a) no later than January 1, 1999.
   (c) Waivers of time limits granted pursuant to this section shall
not be implemented if federal statutes or regulations clarify that
abuse victims are included in the 20 percent hardship exemptions and
that no good cause waivers of the 20 percent limit will be granted to
the state for victims of abuse, thereby incurring a penalty to the
state.
   (d) Waivers of the work requirements granted pursuant to this
section shall not be implemented if federal statutes or regulations
clarify that the state will be penalized for failing to meet work
participation requirements due to granting waivers to abuse victims.

   11495.12.  For purposes of this article, until regulations are
adopted pursuant to Section 11495.1, the term "abuse" means battering
or subjecting a victim to extreme cruelty by (1) physical acts that
resulted in or threatened to result in physical injury, (2) sexual
abuse, (3) sexual activity involving a child in the home, (4) being
forced to participate in nonconsensual sexual acts or activities, (5)
threats of, or attempts at, physical or sexual abuse, (6) mental
abuse, (7) neglect or deprivation of medical care, or (8) stalking.

   11495.15.  A county may waive a program requirement for a
recipient who has been identified as a past or present victim of
abuse when it has been determined that good cause exists pursuant to
paragraph (2) of subdivision (f) of Section 11320.3.  Until
implementation of the regulations required pursuant to paragraph (2)
of subdivision (a) of Section 11495.1, a county may utilize
standards, procedures, and protocols currently available, and shall
identify them in its county plan.  Waivers shall be reevaluated in
accordance with other routine periodic reevaluations by the county.

   11495.25.  Sworn statements by a victim of past or present abuse
by a victim shall be sufficient to establish abuse unless the agency
documents in writing an independent, reasonable basis to find the
recipient not credible. Evidence may also include, but is not limited
to:  police, government agency, or court records or files;
documentation from a domestic violence program, legal, clerical,
medical or other professional from whom the applicant or recipient
has sought assistance in dealing with abuse; or other evidence, such
as a statement from any other individual with knowledge of the
circumstances that provide the basis for the claim, or physical
evidence of abuse, or any other evidence that supports the statement.

   11495.40.  The department shall adopt a model curriculum for
domestic violence and sexual abuse prevention training, based on the
statewide protocol, in consultation with the task force identified in
Section 11495.1. County welfare agencies shall determine which staff
will be trained.
  SEC. 156.  Article 8 (commencing with Section 11500) of Chapter 2
of Part 3 of Division 9 of the Welfare and Institutions Code is
repealed.
  SEC. 157.  Article 8 (commencing with Section 11500) is added to
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 8.  Employment Retention Services

   11500.  The county may continue to provide case management and
services to either a recipient of aid under this chapter not
participating under Article 3.2 (commencing with Section 11320) or a
former recipient of aid under this chapter who has received aid
within the previous 12 months if a recipient or former recipient is
employed, in order to assist the individual in retaining employment.
These job retention services may be provided for up to 12 months
after the first day of employment, to the extent they are not
provided by the employer, the entity that arranged the job placement,
if other than the county, and, to the extent that the services are
not available from other sources.
  SEC. 158.  Article 9 (commencing with Section 11520) is added to
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 9.  Evaluation of CalWORKs Program Implementation

   11520.  The State Department of Social Services shall ensure that
a comprehensive, independent statewide evaluation of the CalWORKs
program is undertaken and that accurate evaluative information is
made available to the Legislature in a timely fashion.
   11520.3.  The department shall develop a research design to ensure
a thorough evaluation of the direct and indirect effects of the
CalWORKs program. Effects shall include, but not be limited to,
employment, earnings, self-sufficiency, child care, child support,
child well-being, family structure, and impacts on local government.
Child well-being shall include entries into foster care, at-risk
births, school achievement, child abuse reports, and rates of child
poverty.
   11520.5.  The statewide evaluation shall be conducted by an
independent evaluator or evaluators.  It shall represent a clear
delineation of the research questions and shall, through discrete
reports issued at regular intervals, provide information regarding
process, impacts, and analyses of the costs and benefits of the
CalWORKs program.
   11520.7.  The department shall ensure that county demonstration
projects and other innovative county approaches to CalWORKs program
implementation are independently and rigorously evaluated and that
findings are reported to the Legislature in a timely fashion.  The
evaluation of a county-specific program shall be developed in
conjunction with the county and other appropriate agencies
responsible for the local program.
   11521.  By July 1, 1998, the department shall revise data
collection procedures used for quality control and caseload
characteristic studies in order to respond to the data collection
requirements of Public Law 104-193 and state law.  The department
shall develop common data definitions to be used by the counties,
design common identifiers, and, to the extent possible, standardize
state and county data collection infrastructure.  The department
shall accomplish the requirements of this section in consultation
with experts in monitoring and research, representatives of counties,
the Legislature, and appropriate state agencies.
   11521.3.  Evaluation of CalWORKs program implementation conducted
or commissioned by the department shall, to the extent practical, use
or build upon existing welfare data archives, including, but not
limited to, the data bases and research completed to date as part of
the Work Pays Demonstration Project authorized pursuant to Chapter 97
of the Statutes of 1992.
   11521.5.  The department shall have access and authority to obtain
for tracking, monitoring, research and evaluation purposes to data
collected by counties on recipients receiving cash aid, in-kind
payments, or supportive services.
   11521.7.  The department shall continue the evaluation of
Cal-Learn and issue a final report to the Legislature by July 1,
2000.
  SEC. 159.  Article 9.5 (commencing with Section 11525) is added to
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 9.5.  Interagency Data Development and Use

   11525.  (a) The department shall establish procedures to provide
timely access to information on CalWORKs families to counties and
researchers in a manner that maintains confidentiality of data while
making it possible to undertake ongoing monitoring, research, and
evaluation.
   (b) (1) The department, with the cooperation of the University of
California, shall establish a project to link longitudinal
administrative data on individuals and families who are receiving
benefits under the CalWORKs program, or have received benefits under
the program within the last 10 years.
   (2) All data shall be made available to a university center with
the capability of linking it with other appropriate data to allow for
ongoing assessment of program impact.
   (3) The department shall ensure that information identifiable to
individuals and families is removed so as to maintain strict
confidentiality.
   (4) The State Department of Health Services, the Employment
Development Department, the Franchise Tax Board, the State Department
of Education, and any other state or local governmental agency that
collects information on aided families shall provide the department
with the necessary data, if legally available.
  SEC. 160.  Article 9.7 (commencing with Section 11526) is added to
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:

      Article 9.7.  Role of the University

   11526.  (a) The Legislature hereby requests the Regents of the
University of California to establish and administer a program or
programs to support welfare research and evaluation of the CalWORKs
program.
   (b) It is the intent of the Legislature that the program or
programs established by the University of California:
   (1) Establish a sponsored grants program to provide funding for
interested researchers to undertake studies on important
welfare-related issues.  These grants shall be applied only to
research projects requested by representatives of state and local
government entities.
   (2) Establish one or more Bureau of the Census secure data sites
to link census and administrative data bases for ongoing research
purposes.
   (3) Use existing data archives to develop data sets appropriate
for monitoring and evaluating the impacts of CalWORKs program
implementation in California.
   (4) Create and maintain public use data sets and make data
available to researchers and members of the public to support welfare
research and related human services research.
   (5) Provide an ongoing capacity for supporting, conducting, and
disseminating welfare policy research.
   (6) Produce and maintain lists of researchers working with
California welfare data or conducting research on
                           public assistance in California.
   (7) Review, edit, publish, and disseminate research and evaluation
reports to state and local policymakers.
   (8) Provide forums for the presentation of research findings and
the discussion of research on welfare.
   (9) Provide a location for welfare data archives and monitor
ongoing funding for their upkeep.
  SEC. 161.  Section 14005.30 is added to the Welfare and
Institutions Code, to read:
   14005.30.  (a) (1) To the extent that federal financial
participation is available, the department shall, pursuant to Section
1396u-1 of Title 42 of the United States Code, extend eligibility
for health care services under this chapter to all recipients of aid
under Chapter 2 (commencing with Section 11200).
   (2) In order to implement paragraph (1), the department shall, as
may be necessary, exercise its option under subparagraph (C) of
paragraph (2) of subsection (b) of Section 1396u-1 of Title 42 of the
United States Code.
   (b) In accordance with Section 1396u-1 of Title 42 of the United
States Code, in addition to any individual eligible pursuant to
subdivision (a), an individual ineligible for aid under Chapter 2
(commencing with Section 11200) shall be eligible for Medi-Cal
benefits pursuant to this chapter if the individual meets the
eligibility criteria for aid under Chapter 2 (commencing with Section
11200) that were in effect on July 16, 1996.
   (c) The department may adopt emergency regulations to implement
this section in accordance with the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code).  The initial adoption of
emergency regulations following the effective date of the act
enacting this section during the 1997-98 Regular Session of the
Legislature and one readoption of those initial regulations shall be
deemed to be emergency and necessary for the immediate preservation
of the public peace, health and safety, or general welfare.  Initial
emergency regulations and the first readoption of those regulations
shall be exempt from review by the Office of Administrative Law.  The
emergency regulations authorized by this section shall be submitted
to the Office of Administrative Law for filing with the Secretary of
State and publication in the California Code of Regulations and shall
remain in effect for no more than 180 days.
  SEC. 162.  Section 14132.90 of the Welfare and Institutions Code is
amended to read: 
   14132.90.  (a) As of September 15, 1995, day care habilitative
services, pursuant to subdivision (c) of Section 14021 shall be
provided only to alcohol and drug exposed pregnant women and women in
the postpartum period, or as required by federal law.
   (b) (1) Notwithstanding any other provision of law, except to the
extent required by federal law, if, as of May 15,  1997
  1998  , the projected costs for the 
1996-97   1997-98  fiscal year for outpatient drug
abuse services, as described in Section 14021, exceed forty-five
million dollars ($45,000,000) in state General Fund moneys, then the
outpatient drug free services, as defined in Section 51341.1 of Title
22 of the California Code of Regulations, shall not be a benefit
under this chapter as of July 1,  1997   1998
 .
   (2) Notwithstanding paragraph (1), outpatient methadone
maintenance and Naltrexone shall remain benefits under this chapter.

   (3) Notwithstanding paragraph (1), residential care, outpatient
drug free services, and day care habilitative services, for alcohol
and drug exposed pregnant women and women in the postpartum period
shall remain benefits under this chapter.  
   (c) Expenditures for services purchased directly by county welfare
departments on behalf of CalWORKs recipients shall not be included
in the computation of costs for subdivision (b).   
  SEC. 163.  Section 15204.2 of the Welfare and Institutions Code is
repealed.  
   15204.2.  The state shall pay 70 percent of the nonfederal
administrative costs of administering AFDC grants subject to Sections
15204.5 and 15204.6, but not including activities related to the
collection of support from noncustodial parents and the determination
of paternity in the case of a child born out of wedlock.  In the
event that the federal government does not provide funding for the
non-AFDC collection of child support from noncustodial parents and
the non-AFDC determination of paternity in the case of a child born
out of wedlock, the state shall pay 75 percent of the non-AFDC
administrative costs.  The state shall pay 70 percent of the
nonfederal share of the cost of eligibility and nonservice staff
development pursuant to the regulations of the department.  The state
shall pay 85 percent of the nonfederal share of the costs of AFDC
fraud investigation subject to Section 15204.5.   
  SEC. 164.  Section 15204.2 is added to the Welfare and Institutions
Code, to read:
   15204.2.  It is the intent of the Legislature that the annual
Budget Act appropriate state and federal funds in a single allocation
to counties for the support of administrative activities undertaken
by the counties to provide benefit payments to recipients of aid
under Chapter 2 (commencing with Section 11200) of Part 3 and to
provide required work activities and supportive services in order to
efficiently and effectively carry out the purposes of that chapter.

  SEC. 165.  Section 15204.3 is added to the Welfare and Institutions
Code, to read:
   15204.3.  (a) Allocation of funds provided under Section 15204.2
shall be made, in the case of funds for benefits administration,
based on projected county costs and caseloads, and, in the cases of
funds for welfare-to-work administration, based on historical
allocations.
   (b) In the 1997-98 fiscal year, additional funds for
welfare-to-work administration above GAIN allocation in the 1996-97
fiscal year shall be distributed among the counties with two-thirds
allocated to all counties based on each county's share of adults
aided under Chapter 2 (commencing with Section 11200).  The remaining
one-third shall be allocated among only those counties that in the
prior year received an allocation per average aided adult at a level
less than the statewide average, and shall be distributed among those
counties so that they each receive the same overall allocation per
average aided adult for welfare-to-work administration.
   (c) For purposes of this section, the 1997-98 fiscal year
allocation for welfare-to-work administration shall constitute the
historic allocation of those funds for each fiscal year subsequent to
the 1997-98 fiscal year. For each year subsequent to the 1997-98
fiscal year, increases or decreases in funds appropriated under this
section shall be allocated among individual counties in a manner that
will promote more equitable distribution of these funds.
  SEC. 166.  Section 15204.4 is added to the Welfare and Institutions
Code, to read:
   15204.4.  In addition to the funds received under Section 15204.2,
counties shall be required to expend money from their own funds,
either from the county's general fund or from the social services
account of the county health and welfare trust fund to support
administration of programs providing services to needy families.
Each county shall expend an amount for these programs that, when
combined with funds expended under Section 18906.5 for administration
of food stamps, equals or exceeds the amount spent by that county
for corresponding activities during the 1996-97 fiscal year.  Failure
to meet this required level of spending shall result in a
proportionate reduction of the funds provided under Section 15204.2.
In those cases the Director of Social Services shall report to the
Legislature within 30 days his or her findings relative to the
ability of the county, with reduced funds, to meet its obligations in
administering the affected programs.  The report shall include any
relevant information related to the performance of the county.
  SEC. 167.  Section 15204.6 of the Welfare and Institutions Code is
repealed. 
   15204.6.  The state shall pay 100 percent of the nonfederal
administrative costs of administering an early fraud prevention and
detection program in the implementation of Chapter 2 (commencing with
Section 11200), pursuant to subdivision (a) of Section 11055.5,
subject to Section 15204.5.   
  SEC. 168.  Section 15204.7 of the Welfare and Institutions Code is
repealed.  
   15204.7.  Subject to Section 15204.5, the state may pay 100
percent of the nonfederal administrative costs, when cost-effective,
as determined by the state, of followup activities in the Income
Eligibility and Verification System for recipients.   
  SEC. 169.  Section 15204.8 is added to the Welfare and Institutions
Code, to read:
   15204.8.  (a) The Legislature may appropriate annually in the
Budget Act funds to support services provided pursuant to Sections
11325.7 and 11325.8.
   (b) Funds appropriated pursuant to subdivision (a) shall be
allocated to the counties separately and shall be available for
expenditure by the counties for services provided during the budget
year.  A county may move funds between the two accounts during the
budget year for expenditure if necessary to meet the particular
circumstances in the county.  Any unexpended funds may be retained by
each county for expenditure for the same purposes during the
succeeding fiscal year.  By November 20, 1998, each county shall
report to the department on the use of these funds.
   (c) Beginning January 10, 1999, the Department of Finance shall
report annually to the legislature on the extent to which funds
available under subdivision (a) have not been spent and may
reallocate the unexpended balances so as to better meet the need for
services.
  SEC. 170.  Section 16575 of the Welfare and Institutions Code is
repealed.  
   16575.  (a) The Legislature finds and declares that there is no
single statewide data base containing statistical data regarding
child support orders.
   (b) The Statewide Automated Child Support System shall be utilized
to provide a single statewide registry of all child support orders
in California.
   (c) The department shall conduct a study examining the feasibility
of alternative models of a single statewide registry of all
California child support orders through the Statewide Automated Child
Support System.
   (d) The requirements of subdivision (c) shall become operative
when federal funds are available for all of the costs of the
statewide registry or on January 31, 1996, whichever occurs first.
  
  SEC. 171.  Section 16575 is added to the Welfare and Institutions
Code, to read:
   16575.  (a) The Legislature finds and declares that there is no
single statewide data base containing statistical data regarding
child support orders.
   (b) The Statewide Automated Child Support System or its
replacement may be utilized to provide a single statewide registry of
all child support orders in California, including orders for cases
under Title IV-D of the Social Security Act and all cases with child
support orders.
  SEC. 172.  Section 16576 of the Welfare and Institutions Code is
repealed.  
   16576.  (a) The department shall develop an implementation plan
for the Child Support Registry.  The plan shall be developed in
consultation with county clerks, district attorneys, and the
appropriate policy committees of the Legislature.  At the time of
implementation, the department shall inform each county clerk of that
fact.  Each county clerk shall provide information to the statewide
registry at the Statewide Automated Child Support System which may
include a certified copy of the Child Support Order and Data Form and
the Order of Child Support Arrears, as appropriate.
   (b) The department shall maintain a system for recording the data
from all Child Support Order and Data Forms and Orders of Child
Support Arrears received from the county court clerks.
   (c) The department shall further provide access to the information
obtained from both the Child Support Order and Data Forms and Orders
of Child Support Arrears to the Judicial Council, representatives of
the Executive Branch, and Legislature for statistical analysis and
review.
   (d) Any information maintained by the Statewide Automated Child
Support System from the Child Support Order and Data Forms and Orders
of Child Support Arrears forms received from county clerks shall be
provided to county district attorneys and others as provided by law.

   (e) The requirements of this section shall become operative and
the department shall begin development of the statewide registry when
federal funds are available for all of the costs of the statewide
registry, or on April 30, 1996, whichever occurs first. 

  SEC. 173.  Section 16576 is added to the Welfare and Institutions
Code, to read:
   16576.  (a) The department shall develop an implementation plan
for the Statewide Child Support Registry.  The Statewide Child
Support Registry shall be operated by the agency responsible for
operation of the Statewide Automated Child Support System (SACSS) or
its replacement.  The Statewide Child Support Registry shall include
storage and data retrieval of the data elements specified in Sections
16576.5 and 16577 for all California child support orders.  The plan
shall be developed in consultation with clerks of the court,
district attorneys, and child support advocates.  The plan shall be
submitted to the Legislature by January 31, 1998.  The implementation
plan shall explain in general terms, among other things, how the
Statewide Child Support Registry will operate to ensure that all data
in the Statewide Child Support Registry can be accessed and how data
shall be integrated for statistical analysis and reporting purposes
with all child support order data contained in the Statewide
Automated Child Support System or its replacement and the Los Angeles
Automated Child Support Enforcement System (ACSES) Replacement
System.
   (b) Commencing no later than October 1, 1998, each clerk of the
court shall provide the information specified in Sections 16576.5 and
16577 within 20 days to the department or the Statewide Child
Support Registry from each new or modified child support order,
including child support arrearage orders.
   (c) Commencing no later than October 1, 1998, the department shall
maintain a system for compiling the child support data from all
child support orders and data forms and orders of child support
arrears forms received from the clerks of the court, ensure that all
child support data received from the clerks of the court are entered
into the Statewide Child Support Registry within 10 days of receipt
in the Statewide Child Support Registry, and ensure that the
Statewide Child Support Registry is fully implemented statewide.
   (d) Commencing no later than October 1, 1998, the department shall
provide aggregate data on a periodic basis on the data maintained by
the Statewide Child Support Registry to the Judicial Council, the
appropriate agencies of the executive branch, and the Legislature for
statistical analysis and review.  The data shall not include
individual identifying information for specific cases.
   (e) Commencing no later than October 1, 1998, any information
maintained by the Statewide Child Support Registry from the child
support orders and data forms and orders of child support arrears
forms received from clerks of the courts shall be provided to county
district attorneys, the Franchise Tax Board, and others as provided
by law.
   (f) On or before October 1, 1998, the department shall submit a
report to the appropriate policy and fiscal committees of the
Legislature on the requirements of this chapter.
  SEC. 174.  Section 16576.5 of the Welfare and Institutions Code is
repealed.  
   16576.5.  The State Department of Social Services shall contract
with the Judicial Council to prepare and adopt the Child Support
Order and Data Form, which shall contain the following information:
   (a) Full name, last known address, telephone number, social
security number, and birth date of both parties.
   (b) The date on which the child support order will terminate (e.g.
the date the youngest child turns 18 or 19 if still in high school).

   (c) A clear statement of the amount of child support to be paid
for each child.
   (d) If the order is a modification of a prior child support order,
a clear statement of the amount of the prior order for each child
and the amount of the modified order for each child.
   (e) Any other information the State Department of Social Services
or the Judicial Council finds appropriate.   
  SEC. 175.  Section 16576.5 is added to the Welfare and Institutions
Code, to read:
   16576.5.  The department shall contract with the Judicial Council
to prepare and adopt, by January 31, 1998, the child support order
and data form, which may be in electronic or hard copy form, as
deemed appropriate by the Judicial Council, and which shall contain
the following information:
   (a) Full name, last known address, telephone number, social
security number, and birth date of both parties.
   (b) Full name and birthdate of each child included in the support
order.
   (c) The date on which the child support order will terminate which
shall be the date upon which the youngest child becomes 18 or 19
years of age if still in high school.
   (d) A clear statement of the amount of child support to be paid
for each child.
   (e) If the order is a modification of a prior child support order,
a clear statement of the amount of the prior order for each child
and the amount of the modified order for each child.
   (f) Any other information the department or the Judicial Council
finds appropriate.
  SEC. 176.  Section 16577 of the Welfare and Institutions Code is
repealed.  
   16577.  The State Department of Social Services shall contract
with the Judicial Council to prepare and adopt the Order of Child
Support Arrears Form which shall contain on its face the following
information:
   (a) Full name, last known address, telephone number, social
security number, and birth date of both parties.
   (b) Date on which court order on arrears will terminate, if known.

   (c) A clear statement of the amount of the child support
arrearage.
   (d) If the order is a modification of a prior child support order,
a clear statement of the amount of the prior order, and the amount
of the modified order.
   (e) Any other information the State Department of Social Services
or the Judicial Council finds appropriate.   
  SEC. 177.  Section 16577 is added to the Welfare and Institutions
Code, to read:
   16577.  The department shall contract with the Judicial Council to
prepare and adopt, by January 31, 1998, the order of child support
arrears form, which may be in electronic or hard copy form, as deemed
appropriate by the Judicial Council, and which shall contain on its
face the following information:
   (a) Full name, last known address, telephone number, social
security number, and birth date of both parties.
   (b) Full name and birthdate of each child included in the support
order.
   (c) Date on which the court order on arrears will terminate, if
known.
   (d) A clear statement of the amount of the child support
arrearage.
   (e) If the order is a modification of a prior child support order,
a clear statement of the amount of the prior order, and the amount
of the modified order.
   (f) Any other information the State Department of Social Services
or the Judicial Council finds appropriate.
  SEC. 178.  Section 17016 is added to the Welfare and Institutions
Code, to read:
   17016.  (a) An individual shall not be eligible for aid under this
part if he or she is either:
   (1) Fleeing to avoid prosecution, or custody and confinement after
conviction, under the laws of the place from which the individual is
fleeing, for a crime or an attempt to commit a crime that is a
felony under the laws of the place from which the individual is
fleeing, or which, in the case of the State of New Jersey, is a high
misdemeanor under the laws of that state.
   (2) Violating a condition of probation or parole imposed under
federal law or the law of any state.
   (b) Subdivision (a) shall not apply with respect to conduct of an
individual for any month beginning after the President of the United
States grants a pardon with respect to the conduct.
  SEC. 179.  Section 17021 is added to the Welfare and Institutions
Code, to read:
   17021.  (a) Any individual who is not eligible for aid under
Chapter 2 (commencing with Section 11200) of Part 3 as a result of
the 60-month limitation specified in subdivision (b) of Section 11454
shall not be eligible for aid or assistance under this part until
all of the children of the individual on whose behalf aid was
received, whether or not currently living in the home with the
individual, are 18 years of age or older.
   (b) Any individual who is receiving aid under Chapter 2
(commencing with Section 11200) of Part 3 on behalf of an eligible
child, but who is either ineligible for aid or whose needs are not
otherwise taken into account in determining the amount of aid to the
family pursuant to Section 11450 due to the imposition of a sanction
or penalty, shall not be eligible for aid or assistance under this
part.
   (c) This section shall not apply to health care benefits provided
under this part.
  SEC. 180.  Chapter 3.2 (commencing with Section 18220) is added to
Part 6 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 3.2.  COMPREHENSIVE YOUTH SERVICES ACT

   18220.  The Legislature finds and declares all of the following:
   (a) The enactment of federal welfare reform, Public Law 104-193,
has provided the state with an unprecedented opportunity to recast
the state's welfare system, and in particular, to simplify the
standards and procedures for determining assistance to the state's
children and their families.
   (b) Under previous federal law, California's county probation
departments claimed emergency assistance funds under Title IV-A of
the Social Security Act, Part A (commencing with Section 601) of
Subchapter 4 of Chapter 7 of Title 42 of the United States Code, to
help defray the cost of operating county juvenile probation
activities.  That claiming increased the allocation to California
under the federal Temporary Assistance for Needy Families block grant
by 140.9 million dollars.
   (c) In the past, county probation departments focused attention on
serving youthful offenders under the jurisdiction of the court.
However, there is broad recognition that preventive approaches would
be a more cost-effective approach to reducing juvenile crime,
promoting family based services, and keeping families intact.  This
chapter will permit probation departments to expand preventive
services to target populations that include youth who are habitual
truants, runaways, or at risk of being adjudicated wards of the court
under Section 601 or 602.
   (d) When a minor has been identified as at risk or when he or she
remains in the community under the jurisdiction of the juvenile
court, the needs of the entire family must determine the services
provided on behalf of the minor.
                                                                (e)
Because of their troubled family situations, juvenile probationers
are at great risk of becoming welfare recipients as young adults.
   (f) Whether or not they are prepared for the responsibility,
probation youth tend to become parents at an early age.  A recent
survey identified over 16,000 probation youth who were already
parents.
   (g) If youth on probation fail to develop adequate
self-sufficiency skills, many of them and their children will require
public assistance in the coming years.
   (h) A survey of probation youth reveals that (1) most are more
than three years below their grade level in reading and math skills,
(2) 40 percent are not attending school, (3) 60 to 80 percent are
abusing drugs or alcohol or both, (4) 60 percent are victims of abuse
and neglect, and (5) 50 percent are from single parent homes.
   (i) The intent of the Legislature in enacting this chapter is to
provide a continuum of family focused case-specific services, in a
community-based setting, that addresses the full spectrum of child
and family needs, including services provided in county-operated
residential care facilities.
   (j) Proper probation services will provide the structure, support,
and supervision needed to keep probation youth from further crime
and to help them develop essential skills to avoid dependence on
public assistance.
   (k) In addition to serving at-risk youth or youthful offenders,
county probation agencies should also serve parents when doing so
will promote increased self-sufficiency, personal responsibility, and
family stability for the youth.
   18221.  (a) The State Department of Social Services is hereby
designated as the state agency responsible for administering funds
appropriated for the purposes of this chapter pursuant to this
section.
   (b) Subject to the availability of funding in the annual Budget
Act, the department shall allocate among counties in proportion to
the following schedule:


  Jurisdiction                            Amount
  Alameda ..........................   $ 5,615,845
  Alpine ...........................             0
  Amador ...........................        94,452
  Butte ............................       463,554
  Calaveras ........................        94,110
  Colusa ...........................        51,612
  Contra Costa .....................     4,418,859
  Del Norte ........................       182,637
  El Dorado ........................       239,710
  Fresno ...........................     2,340,762
  Glenn ............................        72,780
  Humboldt .........................       208,678
  Imperial .........................       536,872
  Inyo .............................       215,271
  Kern .............................     3,698,303
  Kings.............................       461,824
  Lake .............................       314,736
  Lassen ...........................        72,850
  Los Angeles ......................    49,946,525
  Madera ...........................       372,479
  Marin ............................       597,819
  Mariposa .........................         3,979
  Mendocino ........................       167,701
  Merced ...........................       509,314
  Modoc ............................        31,257
  Mono .............................         1,042
  Monterey .........................       912,822
  Napa .............................       484,121
  Nevada ...........................       143,386
  Orange ...........................    13,611,232
  Placer ...........................       279,576
  Plumas ...........................        23,265
  Riverside ........................     4,310,788
  Sacramento .......................     3,350,278
  San Benito .......................       360,418
  San Bernardino ...................     5,189,475
  San Diego ........................     8,988,739
  San Francisco ....................     3,107,495
  San Joaquin ......................     1,224,857
  San Luis Obispo ..................       820,758
  San Mateo ........................     2,702,688
  Santa Barbara ....................     2,621,585
  Santa Clara ......................     9,799,213
  Santa Cruz .......................     1,012,615
  Shasta ...........................       579,199
  Sierra ...........................             0
  Siskiyou .........................        96,777
  Solano ...........................     1,433,509
  Sonoma ...........................     2,200,569
  Stanislaus .......................       719,052
  Sutter ...........................       200,013
  Tehama ...........................       232,026
  Trinity ..........................        58,023
  Tulare ...........................     2,381,471
  Tuolumne .........................        88,584
  Ventura ..........................     2,805,490
  Yolo .............................       296,851
  Yuba .............................       152,154

   (c) Counties shall use no more than 15 percent of their annual
allocation for administrative costs.
   (d) Any audit exception, deferral, or disallowance resulting from
an audit under this chapter shall be shared by each county based on
the percentage of the total costs claimed by the county during the
quarter being audited.  To the extent the audit exception, deferral,
or disallowance can be taken against an individual county and is not
extrapolated to other counties, it shall be borne solely by that
county.
   18222.  (a) Subject to the availability of federal funds for the
purposes described in this section, funds provided pursuant to
subdivision (b) of Section 18221 may be used to serve children who
are habitual truants, runaways, at risk of being wards of the court
under Section 601 or 602, or are under juvenile court supervision or
supervision of the probation department.  Funds may be used to serve
parents or other family members of these children if serving them
will promote increased self-sufficiency, personal responsibility, and
family stability for the child.  Services shall be provided pursuant
to a family service plan.  When a family is served by multiple
public agencies or in need of services from multiple public agencies,
the family service plan shall be developed through an
interdisciplinary approach that shall include representatives from
agencies that provide services to the family or that may be required
to implement the service plan.
   (b) Services authorized under this section include all of the
following:
   (1) Educational advocacy and attendance monitoring.
   (2) Mental health assessment and counseling.
   (3) Home detention.
   (4) Social responsibility training.
   (5) Family mentoring.
   (6) Parent peer support.
   (7) Life skills counseling.
   (8) Direct provision of, and referral to, prevocational and
vocational training.
   (9) Family crisis intervention.
   (10) Individual, family, and group counseling.
   (11) Parenting skills development.
   (12) Drug and alcohol education.
   (13) Respite care.
   (14) Counseling, monitoring, and treatment.
   (15) Gang intervention.
   (16) Sex and health education.
   (17) Anger management, violence prevention, and conflict
resolution.
   (18) After care services as juveniles transition back into the
community and reintegrate into their families.
   (19) Information and referral regarding the availability of
community services.
   (20) Case management.
   (21) Therapeutic day treatment.
   (22) Transportation related to any of the services described in
this subdivision.
   (23) Emergency and temporary shelter.
   18223.  (a) Subject to the availability of federal funds for the
purposes described in this section, funds provided pursuant to
subdivision (b) of Section 18221 may be used to provide emergency
services to children whose behavior results in the child's removal
from the home and a judicial determination that the child must remain
in out-of-home care for more than 72 hours.
   (b) Services authorized under this section include payment for
shelter care in juvenile assessment centers, residential group care
in camps and ranches, or foster care in a licensed foster care
facility, except where provided by Title IV-E of the Social Security
Act, Part E (commencing with Section 670) of Subchapter 4 of Chapter
7 of Title 42 of the United States Code.
   (c) To be eligible for funding pursuant to this section, all
eligibility criteria specified in the Title IV-A state plan for
emergency assistance in effect on September 30, 1995, shall be met.
   18224.  All services provided under this chapter, whether provided
in the home, residential facilities, or other settings, shall be
based on the following principles:
   (a) Services shall be oriented toward the principles of personal
responsibility and self-reliance.
   (b) Services shall use available community resources to the extent
they are available, to serve the needs of the populations served
under this chapter.
   (c) Individualized case plan development shall consider family
concerns, priorities, and resources and shall include services
designed to help families develop problem solving skills to apply
independently in new situations.
   (d) Services shall be based on comprehensive strength-based family
assessments, shall be family focused, and shall address identified
immediate needs as well as underlying risk factors contributing to
problems that are more pervasive and recurrent in nature.
   (e) Services offered shall be cost effective, using established
community services in tandem with federal, state, and locally funded
services.
   18225.  (a) (1) The board of supervisors of any county that
receives funds pursuant to this chapter shall approve the expenditure
plan for funds received pursuant to subdivision (b) of Section
18221.
   (2) (A) The board of supervisors of any county that receives funds
under this chapter shall establish a local planning council to meet,
and to advise the chief probation officer in the development of the
proposed expenditure plan for the funds provided under this chapter.

   (B) With the exception of local planning councils serving pursuant
to subdivision (b), any council established pursuant to this
subdivision shall include representatives from all of the following:

   (i) County departments, including health, mental health,
probation, child protective services, and education.
   (ii) Local school districts.
   (iii) City and county law enforcement agencies.
   (iv) Community-based organizations that serve at-risk youth,
including shelter providers, organizations addressing issues of
pregnancy and parenting, organizations addressing issues of substance
use and abuse, and culturally conscious organizations reflecting the
ethnic and cultural composition of the community.
   (v) One or more youths who are at risk or have been adjudicated
under Section 601 or 602.
   (vi) Parents or family members of at-risk youth.
   (b) The county board of supervisors may provide that a planning
council established pursuant to Section 749.22 shall serve as the
local planning council required by subdivision (a).
   18226.  This chapter shall remain operative only until October 31,
2003.
  SEC. 181.  Chapter 3.3 (commencing with Section 18230) is added to
Part 6 of Division 9 of the Welfare and Institutions Code, to read:

      CHAPTER 3.3.  CALWORKS DEMONSTRATION PROJECTS
      Article 1.  County Welfare-to-Work Demonstration Projects

   18230.  Pursuant to this chapter and Article 1 (commencing with
Section 18200) of Chapter 3, the director may approve county
demonstration projects for the CalWORKs program.  Any project
approved by the director that requires the expenditure of state or
federal funds shall be subject to appropriation in the annual Budget
Act.
   18231.  (a) A county, or two or more counties, may implement
three-year performance-based CalWORKs demonstration projects under
this chapter to test alternative methods of service delivery designed
to do any of, but not limited to, the following:
   (1) More effectively serve highly distressed geographic areas.
   (2) More effectively serve hard-to-employ target populations.
   (3) Better meet local labor force demands.
   (4) Address the needs of the CalWORKs population in areas of
chronic high unemployment.
   (5) Improve administration of program services to clients.
   (b) It is the intent of the Legislature that CalWORKs
demonstration projects promote cross-agency collaboration within the
county or counties in order to reduce duplication and fragmentation
of services, serve CalWORKs families in a comprehensive fashion, and
increase the self-sufficiency and well-being of CalWORKs families.
   (c) It is the intent of the Legislature that each demonstration
project test different types of alternative service delivery or serve
different types of populations.
   18232.  (a) A county board of supervisors that wishes to
demonstrate an alternative method of CalWORKs service delivery shall
apply to the director for approval of its demonstration project.  The
county application shall identify the specific goals of the project,
how it plans to attain those goals, and the evaluation methodology
and funding source that will be used to evaluate the extent to which
the goals are attained.  The application shall also include a
description of the process through which the proposal was developed,
which shall include participation by representatives of all the
stakeholders who will potentially be affected by the project,
including representatives of CalWORKs recipients, service providers,
and all relevant local government agencies.  Prior to receiving
approval for a demonstration project, the applicant county shall
demonstrate to the director agreement from all parties described in
the application who will be involved in implementing the project.
   (b) A participating county shall abide by all audit requirements
necessary to ensure compliance with federal law.
   18233.  Before authorizing a demonstration project, the director
shall ensure that it is consistent with the intent of state CalWORKs
law.  At least 30 days prior to approving a demonstration project,
the director shall provide written notice to the chairperson of the
relevant policy committees of each house of the Legislature and the
Chairperson of the Joint Legislative Budget Committee.  The notice
shall identify any increased state costs that will result from the
project.
   18234.  (a) Except as otherwise provided in this section, a county'
s CalWORKs demonstration project shall not be exempt from state law
that governs eligibility, unless a county wishes to extend
eligibility to families not otherwise covered, in a manner that is
consistent with applicable federal laws and regulations.
   (b) A county may not reduce grant levels below the level
established pursuant to Section 11450, but may supplement grant
levels established in state law, and may extend time limits, using
county only funds.
   (c) A county's CalWORKs demonstration project may not be exempt
from state law that governs any of the following:
   (1) Dispute resolution procedures and penalties, including fair
hearings.
   (2) Recipient confidentiality.
   (3) Child support collection.
   (4) County contracting.
   (5) Collective bargaining law and agreements.
   (6) Civil service procedures.
   (7) Fair labor standards.
   (8) Displacement of current workers.
   18235.  A demonstration project under this article shall include a
range of services designed to assist recipients to achieve
employment, which may not include job search and work experience to
the exclusion of other activities that may be required by the
population in the project, and the supportive services necessary for
clients to achieve self-sufficiency, which at a minimum shall include
child care, transportation, mental health treatment, and substance
abuse treatment.  A demonstration project shall not result in a
diminution in the level of funding for services that would be
available if the project were not implemented.

      Article 2.  School Attendance Demonstration Projects

   18236.  (a) The director may approve school attendance
demonstration projects in San Diego and Merced Counties, at the
option of each county, to demonstrate means of increasing school
attendance and graduation rates of children or teens who receive
benefits under the CalWORKs program.  The project shall emphasize a
social service approach to children and families who are experiencing
truancy problems, and shall include collaboration with the academic
community to support a successful school experience.  Families shall
be provided a range of services, resources, and tools to assist them
in coping with issues related to their children's school problems.
These shall include integrated services involving the county and the
appropriate school districts. After all other avenues to encourage a
student to attend school have been exhausted and a family has failed
to correct the truancy of a child in the family unit, a participating
county may reduce a family grant by the amount of the truant child's
portion grant.  The full grant shall be replaced upon a showing that
the student has attended school full-time for one month or has
otherwise cooperated with an education or training plan developed
with the county and the school district.
   (b) Participating counties shall measure their success in
achieving the following outcomes:
   (1) Increased attendance and graduation.
   (2) Decreased truancy.
   (3) Higher grade point averages.
   (4) Increased ADA.
   (5) Decreased dropout rates.
   (6) Increased collaboration among agencies providing services for
children.
   (7) Reinforcement of parental responsibility.
   (c) Prior to being selected as a demonstration project site, the
governing board of each school district shall approve the project and
a clear delineation of the county's and the school or school
district's responsibilities shall be established in a memorandum of
understanding.
   (d) Each county shall identify how it plans to attain the goals of
the demonstration project and the evaluation methodology and funding
source that will be used to evaluate the extent to which the goals
are attained.
   (e) The director shall report annually to the chairpersons of the
relevant policy committee of each house of the Legislature and the
chairperson of the Joint Legislative Budget Committee on the progress
of the demonstration projects, including the extent to which they
are attaining the outcomes described in subdivision (b), the number
of families sanctioned, and the average length of time of the
sanctions.
   18237.  (a) The department, in conjunction with the State
Department of Education and the Attorney General, may evaluate the
effectiveness of one program, as described in this section in a
county that chooses to operate such a program.
   (b) The truancy coordinator in the district attorney's office
shall provide assistance to school districts to address cases of
habitual truancy as defined in Section 48262 of the Education Code.
   (c) The county truancy coordinator shall perform, at a minimum,
all of the following duties:
   (1) Represent the district attorney on the county school
attendance review board pursuant to Section 48321 of the Education
Code.
   (2) Prepare letters as requested by local school districts that
provide a warning notice to parents of truant pupils subject to
criminal prosecution and penalties pursuant to Section 48293 of the
Education Code.
   (3) Develop a district truancy mediation program, as defined in
Section 48263.5 of the Education Code, unless the county probation
department has elected to provide the program.
   (d) The school attendance review board shall assist the district
attorney and the court in ensuring that every parent or guardian and
truant pupil prosecuted and convicted under Chapter 2 (commencing
with Section 48200) of Part 2 of the Education Code, complies with
the sentence of the court, including, but not limited to, collection
of fines, ensuring the performance of community service and providing
certification of school attendance.

      Article 3.  Microenterprise Demonstration Projects

   18238.  For the purposes of this article:
   (a) "Microenterprise" means a small business in which a
participant works as his or her own employer.
   (b) "Microenterprise assistance provider" means a public agency or
a nonprofit agency meeting the requirements of Section 501(c)(3) of
the federal Internal Revenue Code, that is exempt from taxation under
Section 501(a) of the Internal Revenue Code, and that provides
self-employment training, technical assistance, and access to
microloans to individuals seeking to become self-employed.
   18239.  (a) With the consent of participating counties, the
department may implement demonstration projects to provide
self-employment training and technical assistance to recipients of
CalWORKs benefits and persons who are at risk of receiving CalWORKs
benefits.  Each demonstration project shall operate for three years.
At least one demonstration project shall operate in Los Angeles
County and at least one in a northern California county.  The number
of demonstration projects shall be limited to no more than six.
However, if nonstate matching funds become available, the number
shall be limited to no more than 12.
   (b) The self-employment training shall include development of a
viable business plan, assisting the recipient to determine if
self-employment is suitable to the recipient's aptitudes and family
dependent care obligations, marketing strategies, business location
analysis, direct technical assistance in the development of a
microenterprise, and other subjects as necessary to achieve
proficiency in basic business skills.  The training shall include
periodic assistance or case management, as needed, for up to one year
after the recipient's self-employment has commenced.
   (c) To ensure communication and collaboration between county
welfare departments, including CalWORKs programs, and microenterprise
assistance providers, proposals to operate demonstration projects
under this article shall be jointly submitted by local
microenterprise service providers and the county welfare department.
No county matching funds shall be required for the implementation
and evaluation of the demonstration project.  Local microenterprise
assistance providers participating in the pilot project shall have at
least two years' experience and demonstrated success in providing
assistance to recipients of CalWORKs benefits and other low-income
individuals to create their own jobs through self-employment.
   (d) If pursuant to subdivision (a), the department, with the
consent of participating counties, chooses to implement a
microenterprise demonstration project, the department shall solicit
proposals from microenterprise assistance providers seeking to
administer a demonstration project under this article on a
not-for-profit basis.  The department shall seek to encourage
financial participation of private entities for purposes of including
more individuals in these demonstration projects.

      Article 4.  Jobs-Plus

   18240.  (a) Upon a request by the County of Los Angeles, the
department may review and approve a waiver that would permit changes
in earned income incentives available to residents in housing
complexes in that county participating in the Jobs-Plus Community
Revitalization
Initiative for Public Housing Families.
   (b) Waiver authority pursuant to subdivision (a) shall be limited
to applicable working-age residents of the County of Los Angeles
taking part in the initiative implemented at Jobs-Plus sites in the
county.
   (c) The waiver shall permit work-related financial incentives that
are more generous than those otherwise operating pursuant to Chapter
2 (commencing with Section 11200) of Part 3.
   (d) Waivers shall last only for the duration of the initiative
referred to in subdivision (a).
   (e) The department shall grant the requested waivers no sooner
than 30 days after a report to the appropriate policy and fiscal
committees of the Legislature of the nature, extent, and duration of
the waivers.
   (f) The department shall submit to the appropriate policy and
fiscal committees of the Legislature results of the evaluation of the
initiative operating pursuant to the waivers granted under this
section.
   (g) This article shall remain in effect only until January 1,
2004, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2004, deletes or extends
that date.

      Article 5.  Child Support Assurance Demonstration Project

   18241.  It is the intent of the Legislature, in implementing
federal welfare reform, to create a Child Support Assurance
Demonstration Project that is consistent with the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L.
104-193) and that maximizes cost effectiveness while lifting children
out of poverty.  It is the intent of the Legislature that the
program will secure financial stability for California's children
through a guaranteed minimum level of financial support for the
children of participating families, while at the same time
encouraging custodial parents to be employed and noncustodial parents
to financially support their children.
   18242.  (a) Upon application by a county board of supervisors, the
department may approve demonstration projects in up to three
counties to test models of child support assurance.  One of the
projects shall conform to the design contained in Sections 18244 to
18246, inclusive.  The other two projects shall either test different
models of child support assurance or may test the same model if the
two counties in which that model is tested involve counties with
different demographics.
   (b) It is the intent of the Legislature that the purpose of the
demonstration projects authorized by this article is to test child
support assurance models as alternatives to welfare under which
families with earnings and a child support order receive a guaranteed
child support payment, in lieu of a grant under the CalWORKs
program, from funds continuously appropriated for the CalWORKs
program.
   (c) A county may determine the maximum number of participants in
that county, but not more than five percent of the county CalWORKs
caseload or 8,000 persons, whichever is greater.
   18243.  The department shall develop research designs to ensure
thorough evaluations of the child support assurance demonstration
projects that shall include, but not be limited to, the impact of
work participation rates of custodial parents, CalWORKs participation
rates and costs, paternity and child support order establishment,
and any other relevant information the director may require.
   18244.  (a) A family shall be eligible to participate under this
article only if, at the time of application to participate in the
child assurance program, the family is receiving, or has been
determined to be eligible to receive, an aid grant under Chapter 2
(commencing with Section 11200) of Part 3.
   (b) A family's participation under this article shall not affect
its eligibility to receive Medi-Cal and child care benefits under
Chapter 2 (commencing with Section 11200) of Part 3, if otherwise
eligible.
   18245.  (a) A family shall be eligible to receive a child support
assurance payment on behalf of a child only if the child's custodial
parent has done all of the following:
   (1) Assigned the child's right to collect child support to the
state.
   (2) Established paternity, obtained a child support order, and is
using the services available under the state plan approved under Part
D (commencing with Section 651) of Chapter 7 of Title 42 of the
United States Code.
   (3) Opted to participate in the child assurance program in lieu of
cash assistance under this chapter or its successor program.
   (b) (1) Except as provided in paragraph (2), as a condition of
receiving a child support assurance payment under this article, a
custodial parent shall also be required to do both of the following:

   (A) Continue to provide all other relevant information that the
applicant has that may be requested by the county.
   (B) Appear at required interviews, conference hearings, or legal
proceedings, if notified in advance and an illness or emergency does
not prevent attendance.
   (2) A custodial parent shall not be required to comply with
paragraph (1) when compliance would make it more difficult for a
domestic violence victim to escape physical abuse or when cooperation
would increase the risk of further violence or unfairly penalize the
victim.
   (c) In order to be eligible under this article, a child shall meet
all of the following conditions:
   (1) The child resides in the county.
   (2) The child has a noncustodial parent living in the United
States, or if not living in the United States, is subject to service
of process by a state or territory of the United States.
   (3) The child is under 18 years of age or, if enrolled in high
school, under 19 years of age.
   (4) The custodial parent is employed.
   18246.  (a) A child or children shall be eligible to continue to
receive a child support assurance payment under this section only if
the family's income is not more than 150 percent of the federal
poverty level.  For family income below the federal poverty level,
the earned income disregard shall be 90 percent.  For income between
100 percent and 150 percent of the federal poverty level, the earned
income disregard shall be incrementally decreased until the
assistance benefit reaches zero at 150 percent of the federal poverty
level.
   (b) In any month, the child shall receive the greater of the child
support paid by the noncustodial parent or the assured amount as
defined in subdivision (d) of Section 11535.  In any month in which
the noncustodial parent pays an amount of support less than the
assured amount, the county shall retain the payment as reimbursement
for the assured amount.
   (c) For purposes of this article, the child support assurance
payable to the custodial parent of one or more eligible children
shall be the amount by which the support assurance payment exceeds
the dollar value of the child support, if any, received on behalf of
the family during the month from the noncustodial parent for the
support of any eligible child or children.
   (d) The monthly child support assurance payment shall be the sum
of all of the following:
   (1) Two hundred fifty dollars ($250) for the first eligible child.

   (2) One hundred twenty-five dollars ($125) for the second eligible
child, if any.
   (3) Sixty-five dollars ($65) for each subsequent eligible child,
if any.
   18247.  (a) The state share of child support assurance payments
under this article shall be paid in accordance with Section 15200.
   (b) The county administrative cost for the operation of a child
support assurance program shall be paid from the county's allocation
provided under Sections 15204.2 and 15204.3.
  SEC. 183.  Except for Sections 31, 32, 131, 132, 141, 161, and 162
of this act, this act shall become operative on January 1, 1998.
  SEC. 184.  In enacting the CalWORKs program, the revisions to, and
the repeal of, various specific provisions for good cause for failure
to participate in welfare-to-work program activities is not intended
to preclude a county from considering any condition or circumstance
of a recipient on a case-by-case basis in the evaluation of whether
good cause exists.
  SEC. 185.  (a) Notwithstanding the provisions of the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, through June 30,
1998, the State Department of Social Services may implement the
applicable provisions of this act through all county letter or
similar instructions from the director.
   (b) The director shall adopt regulations, as otherwise necessary,
to implement the applicable provisions of this act no later than July
1, 1998. Emergency regulations to implement the applicable
provisions of this act may be adopted by the director in accordance
with the Administrative Procedure Act.  The initial adoption of
emergency regulations and one readoption of the initial regulations
shall be deemed to be an emergency and necessary for the immediate
preservation of the public peace, health, safety, or general welfare.
  Initial emergency regulations and the first readoption of those
emergency regulations shall be exempt from review by the Office of
Administrative Law.  The emergency regulations authorized by this
section shall be submitted to the Office of Administrative Law for
filing with the Secretary of State and shall remain in effect for no
more than 180 days.
  SEC. 186.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
this act provides for offsetting savings to local agencies or school
districts that result in no net costs to the local agencies or school
districts, within the meaning of Section 17556 of the Government
Code.
   Notwithstanding Section 17580 of the Government Code, unless
otherwise specified, the provisions of this act shall become
operative on the same date that the act takes effect pursuant to the
California Constitution.
  SEC. 187.  Sections 1 to 186, inclusive, of this act shall not
become operative until the Budget Act of 1997 is chaptered.
  SEC. 188.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to implement the federal welfare reform in the most
appropriate and timely manner, it is necessary that this act take
effect immediately.    Code is amended to read:
   1550.5.  The director may temporarily suspend any license prior to
any hearing when, in the opinion of the director, based upon
affidavits in support of the order, the action is necessary to
protect residents or clients of the facility from physical or mental
abuse, abandonment, or any other substantial threat to health or
safety.  The director shall serve the licensee with the temporary
suspension order, including affidavits and all other information in
support of the order, and the effective date of the temporary
suspension and at the same time shall serve the licensee with an
accusation.
   (a) (1) The department shall notify the licensee, upon service of
an order of temporary license suspension, of the licensee's right to
an interim hearing on the order.  The department shall also provide
the licensee with a form and appropriate information for the licensee'
s use in requesting an interim hearing.  The department shall also
notify the licensee, upon service, of the licensee's independent
right to seek review of the order by the superior court pursuant to
Section 1085 of the Code of Civil Procedure.
   (2) (A) The licensee may request an interim hearing by mailing or
delivering a written request to the Office of Administrative
Hearings.  The licensee shall mail or deliver the request to the
address or location specified on the request form served with the
order.  The licensee shall mail or deliver the request within five
days after service of the order.  Upon receipt of a timely request
for an interim hearing, the Office of Administrative Hearings shall
set a hearing date and time which shall be within 10 working days of
the office's receipt of the request.  The Office of Administrative
Hearings shall promptly notify the licensee of the date, time, and
place of the hearing.  The Office of Administrative Hearings, upon
setting the interim hearing, shall post a public notice of the
hearing at its regional office having jurisdiction over the location
of the facility.  The licensee's request for an interim hearing shall
not stay the operation of the order.
   (B) Nothing in this section precludes a licensee from proceeding
directly to a full evidentiary hearing or from seeking review of the
order by the superior court.  Nothing in this section requires
resolution of the interim hearing request prior to review by the
superior court.
   (3) (A) An interim hearing shall be held before an administrative
law judge of the Office of Administrative Hearings.  The interim
hearing shall be held at the regional office of the Office of
Administrative Hearings having jurisdiction over the location of the
facility.
   (B) For purposes of the interim hearing conducted pursuant to this
section, the licensee and department shall, at a minimum, have the
following  rights:
   (i) To be represented by counsel.
   (ii) To have a record made of the proceedings, copies of which may
be obtained by the licensee upon payment of reasonable charges
associated with the record.
   (iii) To present written evidence in the form of relevant
declarations, affidavits, and documents.  No later than five working
days prior to the interim hearing, the department shall provide the
licensee with any additional pertinent discovery that the department
will present at the hearing and that was not provided to the licensee
at the time the temporary suspension order was issued.  The
additional discovery shall include, but not be limited to,
affidavits, declarations, and the names of witnesses who will be
presenting oral testimony.  The discretion of the administrative law
judge to permit testimony at the hearing conducted pursuant to this
section shall be identical to the discretion of a superior court
judge to permit testimony at a hearing conducted pursuant to Section
527 of the Code of Civil Procedure.  However, there shall be no oral
testimony from a minor in the interim hearing, except at the
discretion of the administrative law judge.
   (iv) To present oral argument.
   (C) Consistent with the standards of proof applicable to a
preliminary injunction entered under Section 527 of the Code of Civil
Procedure, the administrative law judge shall sustain the temporary
suspension order where, in the exercise of discretion, the
administrative law judge concludes both of the following:
   (i) There is a reasonable probability that the licensee will not
prevail in the underlying action.
   (ii) The likelihood of physical or mental abuse, abandonment, or
other substantial threat to health or safety of residents or clients
in not sustaining the order outweighs the likelihood of injury to the
licensee in sustaining the order.
   (D) The interim hearing shall be reported or recorded pursuant to
subdivision (d) of Section 11512 of the Government Code.
   (4) The administrative law judge shall issue a verbal interim
decision at the conclusion of the interim hearing which sustains or
vacates the order. The administrative law judge shall issue a written
interim decision within 15 working days following the conclusion of
the interim hearing. The written interim decision shall include
findings of fact and a conclusion articulating the connection between
the evidence produced at the hearing and the decision reached.
   (5) The interim decision shall be subject to review only pursuant
to Section 1094.5 of the Code of Civil Procedure.  The department or
the licensee may file a petition for that review.  A petition for
review under Section 1094.5 of the Code of Civil Procedure shall be
heard by the court within 10 days of its filing and the court shall
issue its judgment on the petition within 10 days of the conclusion
of the hearing.  The hearing on the interim decision shall be limited
to the issue of whether the department abused its discretion under
this section in issuing the order of temporary license suspension.
   (6) The department may proceed with the accusation as otherwise
provided by this section and Section 1551 notwithstanding an interim
decision by the administrative law judge which vacates the order of
temporary license suspension.
   (b) Upon receipt of a notice of defense to the accusation by the
licensee, the director shall, within 15 days, set the matter for a
full evidentiary hearing, and the hearing shall be held as soon as
possible but not later than 30 days after receipt of the notice.  The
temporary suspension shall remain in effect until the time the
hearing is completed and the director has made a final determination
on the merits, unless it is earlier vacated by interim decision of
the administrative law judge or a superior court judge.  However, the
temporary suspension shall be deemed vacated if the director fails
to make a final determination on the merits within 30 days after the
original hearing has been completed.
  SEC. 2.  Section 11462.06 of the Welfare and Institutions Code is
amended to read:
   11462.06.  (a) For purposes of the administration of this article,
including the setting of group home rates, the department shall deem
the reasonable costs of affiliated leases for shelter care for
foster children to be allowable costs.  Reimbursement of shelter
costs shall not exceed 12 percent of the fair market value of owned,
leased, or rented buildings, exclusive of idle capacity and capacity
used for nongroup home programs and activities.  Shelter costs shall
be considered reasonable in relation to the fair market value limit
as described in subdivision (c).  Allowable costs of affiliated
leases shall be subject to a review by the Charitable Trust Section
of the Department of Justice as specified by Chapter 15 (commencing
with Section 999) of Division 1 of Title 11 of the California Code of
Regulations.
   (b) Effective July 1, 1998, an approval letter from the Charitable
Trust Section of the Department of Justice shall be required for
approval of shelter costs that result from self-dealing transactions,
as defined in Section 5233 of the Corporations Code.
   (c) For purposes of this section, fair market value of leased
property shall be determined by either of the following methods, as
chosen by the provider:
   (1) The market value shown on the last tax bill for the cost
reporting period.
   (2) The market value determined by an independent appraisal.  The
appraisal shall be performed by a qualified, professional appraiser
who, at a minimum, meets standards for appraisers as specified in
Chapter 6.5 (commencing with Section 3500) of Title 10 of the
California Code of Regulations.  The appraisal shall not be deemed
independent if performed under a less-than-arms-length agreement, or
if performed by a person or persons employed by, or under contract
with, the group home for purposes other than performing appraisals,
or by a person having a material interest in any group home which
receives foster care payments.  If the department believes an
appraisal does not meet these standards, the department shall give
its reasons in writing to the provider and provide an opportunity for
appeal.
   (d) As used in subdivision (a), "owned, leased, or rented
buildings" includes any structures, improvements, edifices, land,
grounds, and other similar property that is owned, leased, or rented
by the group home and that is used for group home programs and
activities.
   (e) Subdivision (d) confirms and is declarative of, rather than a
change in, existing law and regulations and shall not be construed as
a change in the meaning of this section as enacted by Chapter 1015
of the Statutes of 1996.