BILL ANALYSIS
SENATE HEALTH AND HUMAN SERVICES
COMMITTEE ANALYSIS
Senator Diane E. Watson, Chairperson
BILL NO: AB 1542 A
AUTHOR: Thompson, Maddy, Ducheny, Ashburn B
AMENDED: August 04, 1997 in Senate
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SUBJECT OF BILL : Community Care Facilities
Subject of Amendments : Welfare Reform; Senate Floor Amendments
Committee Analysis
Amendments are: Technical / Substantive / Re-write Bill / New
Bill
Were these amendments discussed in committee? No
If yes, were they defeated? N/A
Likely opposition to amendments? Unknown
If yes, from whom?
Purpose of Amendments: Welfare Reform
ANALYSIS :
Federal Law Implementation
The federal welfare reform bill, PL 104-193, made numerous
changes to social and health services including placing federal
AFDC (now TANF) and federal child care funding into two separate
block grants, increasing the flexibility of states to revise
TANF and child care programs, and increasing the percentage of
the AFDC caseload that must be employed or in a
federally-approved work activity (the percentages are called
work participation rates). In addition, the federal bill
imposed a 60-month, cumulative lifetime limit on the receipt of
federal TANF benefits by adult recipients, but allowed states to
exempt 20% of the caseload from this limit. The federal bill
also requires certain recipients to be engaged in a work
activity after 24 cumulative months on aid. TANF increases the
flexibility of states to revise AFDC program administration,
including eligibility requirements and other provisions.
The proposed amendments to AB 1542 include a number of
provisions to implement the new federal TANF law. California's
revised AFDC and GAIN programs would be renamed "California Work
Opportunity and Responsibility to Kids" or "CalWORKs".
CHILD CARE
The current system of federal and state child care subsidies for
low-income parents in California is administratively complex and
involves over one dozen subsidized child care programs with
varying eligibility standards. The Department of Social
Services administers GAIN, Non-GAIN Education and Training
(NET), Transitional Child Care (TCC), and a child care disregard
program. The Department of Education administers the bulk of
federal and state child care subsidies, mostly through contracts
with centers or Alternative Payment(AP) programs. AP programs
contract with the Department of Education and provide vouchers
for child care which allow parents to choose center-based care,
family day care, or license exempt providers. HR 3734, the
federal welfare reform bill, consolidated various federal child
care funding streams into one Child Care and Development Block
Grant, and specified that a minimum of 70% of the federal block
grant funds be used for families attempting to work their way
off welfare or at-risk of welfare.
Amendments
These amendments would revise existing child care subsidy
programs. The amendments repeal the At-Risk and Transitional
Child Care programs and incorporate these programs into a
revised "three stage" child care system for families in
CalWORKs. The amendments would also provide a capped
entitlement for recipient families in Stage I which is
administered by county welfare departments and lasts up to six
months. The amendments would provide a capped entitlement for
Stage II, which is administered by Alternative Payment Programs
under contract with the State Department of Education (SDE).
Stage II child care would serve parents on aid while in job
training, work activities, and transitioning off of aid and for
two years once they are off aid. Stage III would incorporate
recipient families into the existing child care system for the
working poor, now administered by SDE. Stage III includes
programs administered by local SDE contractors, including family
day care networks, subsidized child care centers, and
alternative payment programs. These amendments also would:
standardize rates, application forms, and parent fees across
all child care programs;
establish a standardized eligibility criteria for all
programs of 75 percent of the state median income;
establish reimbursement rates for all programs at 1.5
standard deviations above the mean rate in the local market
area;
provide that reimbursement for care be made directly to child
care providers ( rather than be paid to recipients and then
paid to providers).
coordinate part-day child care programs with nearby child
care services to provide full day child care.
These amendments revise local planning council membership and
responsibility to:
involve county board of supervisors and the state
superintendent of education in determining where new child
care funds will be used locally, based on needs assessments;
design a system to consolidate local child care waiting lists
across programs;
The amendments direct the Department of Education to increase
parent education and awareness; direct county welfare
departments and alternative payment programs to encourage all
providers who are licensed or license exempt to secure training
and education in basic child development; and authorize the
Department of Education to fund model recreation and literacy
programs that employ CalWORKs recipients, which are run by
collaborations with schools. Funding would be renewable upon a
favorable evaluation.
The amendments establish a loan guaranty program and direct loan
program for child care facilities in the State Treasury, for
sole proprietorships, partnerships, proprietary and non-profit
corporations, and local public agencies, with priority for loans
to be given to loans or loan guarantees for the purchase,
development, construction, expansion, or improvement (as
specified) of licensed child care and development facilities
serving families with incomes below 75% of the median income.
The amendments prohibit a loan guarantee from exceeding 80% of
the principal amount of a guaranteed loan and a direct loan from
exceeding 50% of the amount for purchase, development,
construction, expansion or improvement of eligible facilities,
and prohibit the amount of outstanding loan guarantees from
exceeding four times the amount in the fund.
The amendments require the Department of Education to provide
program priorities after consultation with specified parties,
which are to include geographic priorities (with a 30% rural
set-aside), age priorities, income priorities to benefit
families transitioning from assistance to work, and program
priorities based on the state program needs. These priorities
are to govern the ranking of applications for the loan
guarantees and direct loan program to be administered by the
Department of Housing and Community Development. The amendments
revise definition of "cost" in the Child Care and Development
Services Act in order to enable subsidized child care programs
to utilize the loans.
The amendments require agencies operating direct service
programs and resource and referral programs to provide at least
four referrals, at least one of which is a provider over which
the agency has no fiscal or operational control, and information
on a family's ability to choose a license exempt provider.
COMMUNITY COLLEGES AND CALWORKS
1.Matriculation/Counseling Services: This bill authorizes, but
does not require, community colleges to provide counseling and
matriculation services for CalWORKs students enrolled in
noncredit courses, subject to the appropriation of funds.
2.Curriculum redesign: This bill, subject to the appropriation
of funds, directs community colleges to develop and re-design
course offerings, in collaboration with local employers and
industry groups, in order to prepare CalWORKs participants for
jobs in demand in the labor market.
3.Noncredit course reimbursement: As prescribed in existing
state funding formulas, community colleges are reimbursed by
the state with different rates for credit and noncredit
courses. This bill authorizes community colleges to receive
additional funding for offering noncredit course instruction
for CalWORKs students when the cost of these courses exceeds
the average cost of noncredit instruction.
JOB CREATION
Background: Currently, AFDC caseloads total approximately
800,000 statewide; based on estimates of the number of cases
that will leave aid or meet exemption criteria, California will
need to place between 350,000 and 500,000 parents into jobs or
work-related activities within the next few years. Given
accepted estimates of expected job creation rates, this is
likely to present a challenge to many counties.
This bill contains several job creation provisions:
1.EDD Council: Requires EDD to convene an advisory council of
retired and former CEOs of major corporations to provide
assistance to EDD in recruiting employers to hire CalWORKs
recipients. Also, requires EDD to consult with community and
civic leaders in efforts designed to encourage businesses to
hire welfare recipients and requires EDD to establish a
clearinghouse to assist businesses in hiring recipients.
2.Job Creation Investment Fund: The bill creates in the State
Treasury a "Job Creation Investment Fund" administered by the
Trade and Commerce Agency, to fund local job creation
activities for employment of CalWORKs recipients. Funds would
be allocated to counties submitting strategic job creation
plans based on the number of adult recipients on aid and job
growth in the county, with each county receiving a minimum of
$50,000. After initial disbursement of 25% of the county's
allocation, additional disbursement would occur as specific
requirements are met. Plans would be required to include
consideration of local labor market needs.
3.Regional Collaboration Pilots: The bill authorizes five
Regional Collaborative pilot projects, under which state
agencies, county welfare departments, community colleges,
local school districts, other agencies providing job training,
and private sector business and labor representatives would
develop more effective delivery systems for job training
services and set performance goals. Up to $5 million in
existing state or federal funds could be redirected for this
purpose.
ELECTRONIC BENEFIT TRANSFERS (EBT)
Electronic Benefits Transfer (EBT) is the transfer of cash aid
for food stamps electronically to a recipient's bank account;
the recipient can access the fund through a magnetic card
(similar to an ATM card). These amendments create an Electronic
Benefits Transfer Advisory Committee to advise SDSS on requests
for proposals for the implementation of an EBT system for
distribution of food stamps and, at county option, other
benefits. These amendments would require the state to certify,
as eligible to contract with counties, one or more EBT
processors by July 1, 1998. Though a deadline for
implementation of EBT on a statewide system is not imposed, each
processor must be capable of implementing 9 months after
contracting with a county. Recipients could be charged a fee
for making more than 4 cash withdrawals in a month.
CALIFORNIA ASSET AND SAVINGS ACT
These amendments authorize individuals, if federal funds become
available, to set up Individual Development Accounts (IDAs)
using their own earnings or other funds available from non-state
sources. The IDAs could be used only for: payments for tuition
for education; purchasing a residence; capitalizing a business;
or for "qualified" job training expenses.
TRANSPORTATION
These amendments require coordination between county welfare
departments and local transit providers to ensure funds are used
efficiently for the benefit of the welfare recipients. Where
public transit services are unavailable, the amendments
establish a priority for enhancement of transportation services
for welfare-to-work purposes, including transportation
alternatives such as vouchers, van pools, etc.
EMPLOYMENT TRAINING PANEL
This bill directs the Employment Training Panel to allocate $20
million annually (from the Employment Training Fund) to support
training programs for workers who are current or recent
recipients under the CalWORKs Program (AFDC). The amendments
specify that funds may also be used, under prescribed
circumstances, to provide services to other former recipients
under CalWORKs who are currently employed.
JOB TRAINING PARTNERSHIP ACT (JTPA)
Current law authorizes the Employment Development Department
(EDD) to administer the JTPA program, a federally funded job
training program for the economically disadvantaged.
Approximately 43% of the funds annually available to JTPA are
used to serve welfare recipients. The proposed amendments
express Legislative intent that: CalWORKs recipients shall
continue to be served with JTPA funds; and the Governor request
a waiver from U.S. Department of Labor restrictions that prevent
provision of certain job training services (including
stand-alone job search and work experience) during the year
after placement in a job.
CALWORKS (AFDC) ELIGIBILITY ISSUES
Monthly Income Reporting: Under current law, recipients make
monthly reports of earnings and other information to county
welfare departments. The proposed amendments would establish
pilot projects to test the cost-effectiveness of eliminating the
monthly reporting of income, unless the amount increases or
decreases more than $75 or there is a change in household
composition. The purpose of the pilot is to reduce unnecessary
paperwork by county employees, whose time is intended to be
redirected to assisting recipients to become employed.
Truancy: Under current law, recipients must enroll schoolage
children in school. This bill requires that all students on aid
for whom school is compulsory must attend school; applicants and
recipients would be required to provide documentation of
attendance. Counties would determine when the documentation is
to be required, define "regularly attending", and define good
cause for not attending. The penalty for not meeting attendance
requirements would be loss of aid for all adults in the
assistance unit, if the child is less than age 16, and loss of
the child's portion of aid, if the child is over age 16.
Immunizations: This bill would impose an additional condition
of eligibility by requiring new applicants for CalWORKs to show
proof of immunization for all preschool children within 30 days
of determination of eligibility for Medi-Cal benefits. For
applicants already eligible for Medi-Cal, proof would have to be
provided within 45 days. For current recipients, proof of
immunization would have to be provided within 45 days of their
next eligibility redetermination. The county can allow a 30-day
extension for good cause. The penalty for not providing
documentation is loss of aid to all parents or caretaker
relatives in the assistance unit. The county would be required
to provide notice of the required immunizations and information
on services available through Medi-Cal.
Lump Sum Diversion: Current law does not permit counties to
offer a lump sum cash payment to families facing a financial
crises in order to prevent the need for the family to become
recipients of AFDC. This bill authorizes counties to provide
certain applicants with aid as a lump sum payment (cash or
noncash) in order to assist a family through a short term
financial crisis and avoid reliance on the regular cash
assistance program. If the family returns to aid within the
amount of time corresponding to the lump sum payment amount, the
recipient could choose to pay back the funds through reduced
grants (the rate of recoupment to be determined by the county)
or to have the equivalent months applied against the family's
5-year time limit.
Resources and Automobiles: Current law limits the value of the
resources a recipient of AFDC, Food Stamps or other programs can
have and still meet eligibility criteria; the limits vary by
program. For example, the current limits for automobiles are
$1,500 for applicants for AFDC, $4,500 for recipients of AFDC
and $4,650 for recipients of Food Stamps. This bill would
simplify eligibility determinations somewhat by allowing
recipients and applicants for aid to use Food Stamp program
criteria for determining countable assets and valuing personal
property, including automobiles.
Unemployed Parent (2-Parent Families): Current state law limits
the eligibility of two-parent families applying for aid to that
required by previous federal law. This bill expands eligibility
somewhat by allowing applicant parents to be eligible if they
have not been employed more than 100 hours in the previous 4
weeks and also meet other eligibility criteria contained in the
federal law in effect prior to the passage of the federal
welfare bill.
Transfer of Assets: This bill contains a new requirement that
if a recipient transfers any income, asset or resource at less
than fair market value, the household could be ineligible for
aid for a period of time. The period of time would be based on
the difference between the market value and the actual amount
received.
Medi-Cal Categorical Eligibility: Under current law, AFDC
recipients are categorically eligible for Medi-Cal. This bill
provides that, pursuant to federal law, recipients of CalWORKs
shall be extended eligibility for Medi-Cal.
Fleeing felons: This bill adds a new prohibition of eligibility
for persons fleeing to avoid prosecution for a felony crime or
who are violating a condition of parole in any state.
TIME LIMITS
Current law: Under current law, recipients who have been on aid
for 22 out of 24 months and who have had an opportunity to
complete GAIN, must work 100 hours per month in a community
service job; failure to comply results in a grant cut.
However, as this provision has been in effect for a limited
period of time and, as only approximately 20% of recipients have
had an opportunity to participate in GAIN, the time limit has
applied to few individuals.
Proposed time limits:
1)Prior-to-60-month time limit:
For new applicant parents or caretaker relatives, the time
limit would be 18 months after the county implements
CalWORKs, unless the county certifies there is no job
available for the recipient and the recipient participates
in community service . Also, the county can extend the
limit by 6 months if it determines it is likely to lead to
employment or that employment is not available locally.
For current recipient parents or caretaker relatives, the
time limit is 24 months after the county implements
CalWORKs unless the county certifies there is no job
available for the recipient and the recipient participates
in community service.
If a county determines there is no job currently available
for a recipient meeting a time limit, the county must offer
the recipient a community service job. A county must
determine that a job is not available if a recipient or
applicant has taken "all steps to apply for appropriate
positions" and has not refused a job offer without good
cause. In addition, if a recipient is employed, but for
less than the required minimum hours per week, and the
county determines there is no job available to increase the
hours, he or she would remain eligible for aid and
participate in community service for the remaining hours.
If a recipient has reached these time limits and leaves aid
for at least one month, and returns, the county shall
determine if he or she shall receive welfare to work
training services or be placed community service
employment.
1)60-month time limit:
Parents and caretaker relatives are not eligible for aid
after receiving aid for a cumulative 60-months. Families
reaching the 60-month cumulative limit may receive a safety
net benefit (see description below). At county option,
additional welfare-to-work services may be provided, in
which case the recipient would be required to participate
in community service.
EXEMPTIONS FROM TIME LIMITS
Exemptions from the 18 and 24 month time limits include months
in which:
the recipient is exempt from certain work requirements, e.g.,
due to advanced age, disability or caretaking responsibilities
or months when participating in Cal-Learn or another teen
parent program;
the child support received exceeds the cash aid paid to the
family.
Exemptions from the 60-month time limit include cases where the
parents or caretaker relatives:
are 60 years of age or older;
are receiving disability benefits and the disability
significantly impairs ability to work;
are a non-parent caretaker relative who has primary
responsibility for providing care for a child who is either a
dependent or ward of the court or at risk of placement in
foster care and the county determines that the caretaking
responsibilities impair the recipient's ability to be
regularly employed;
are caring for a disabled or ill family member and the
caretaking prevents regular employment;
are incapable of maintaining employment, as determined by the
county based on assessment and a history of full participation
and cooperation with work requirements.
COMMUNITY SERVICE EMPLOYMENT
The proposed amendments would require counties to provide
community service employment to individuals who reach an 18
month or 24 month time limit and for whom the county determines
there is no job actually available. The community service would
be performed in the public or private nonprofit sector.
Community service positions would be required to provide
participants with job skills and not displace current workers as
provided in the anti-displacement provisions.
SAFETY NET
The proposed amendments provide for a grant for the children of
a recipient who has been on aid for longer than 60 months. The
"safety net" grant could not exceed the grant amount for the
children in the household. (It is unclear what the safety net
grant for children would be if a parent reaches an 18-month or
24-month time limit, the county determines there is a job
actually available for the individual, but the recipient is not
employed.)
CALWORKS
Maintenance of Effort: The new federal law requires states to
meet specified "maintenance of effort" or expenditures levels of
state funds for CalWORKs eligible households. The proposed
amendments require the State Department of Social Services to
establish for California the state and county components of the
maintenance of effort.
County Plans: Current law requires counties to prepare, and
submit to the state for approval, plans for a variety of
programs, such as the GAIN program. The proposed amendments
delete a number of plan requirements in current law and,
instead, require each county to develop a general "CalWORKs"
plan, in collaboration with appropriate public and private
agencies, to describe how the county will deliver a full range
of welfare-to-work services to aid recipients. The plan, to be
submitted to the Department of Social Services (DSS) would
address employment services and necessary supportive services,
including child care, transportation, and mental health and
substance abuse treatment. These amendments require that DSS
must only certify whether the county plan is in compliance with
state and federal law.
County Allocations: These amendments consolidate GAIN and
CalWORKs-related county administration into a single "block
grant" allocation. The amendments establish a county
maintenance-of-effort level in welfare-to-work programs and
eligibility administration (including food stamps) equal to the
1996-97 actual spending level. The amendments would correct
historical funding inequities among counties in GAIN funding by
establishing an equity funding formula.
Performance Outcome Monitoring: The proposed amendments require
counties to participate in program monitoring by collecting and
reporting data in order to meet federal reporting requirements
and measure statewide and locally-identified outcomes. The
amendments also require DSS to establish a Research and
Monitoring Advisory Committee.
County Pilot Projects: This bill authorizes the Director to
approve 3-year county pilot projects to test alternative ways of
delivering CalWORKs services; pilots requiring additional
funding would be subject to Legislative approval. No limit is
imposed on the number of county pilots. However, counties could
not waive certain provisions of CalWORKs including: eligibility
and grant levels (unless expanded), dispute resolution,
sanctions, penalties, confidentiality, child support,
contracting, collective bargaining, civil service procedures,
fair labor standards and provisions to prevent the displacement
of current workers. Also, pilots cannot offer only job search
and work experience and must provide some supportive services
such as child care, transportation, mental health and substance
abuse treatment.
In addition, the amendments authorize, but do not require,
certain pilot projects to be implemented:
1.Truancy (San Diego and SARB models): One model could be the
provision of case management services to CalWORKs recipients
only; failure to attend school would be sanctioned with loss
of the portion of the grant for one person (approximately 39%
reduction for a 2-person household, and a 19% reduction for a
3-person household). Another model could be to operate a
program to enforce truancy laws for all students (not just
CalWORKs recipients), funding truancy coordinators to assist
local School Attendance Review Boards (SARBs) to resolve
truancy problems (and to seek prosecution through the district
attorney, where necessary).
2.Microenterprise Training: The proposed amendments authorize
up to 6 pilot projects to test the cost effectiveness of
providing training to qualified CalWORKs participants in
becoming economically self sufficient through self-employment.
3.Child Support Assurance: The proposed amendments authorize
the director to approve child support assurance pilots in up
to three counties. One pilot must conform to the model
specified in these amendments. These amendments limit
eligibility to CalWORKs-eligible participants. Child support
assurance is a welfare avoidance program under which
recipients who have both earnings and a child support order
choose to receive a monthly "assured" payment from the county,
rather than regular cash aid. When combined with the parent's
earnings, the child support assurance payment is intended to
allow the family to avoid reliance on the regular cash
assistance program.
4.Jobs Plus: The proposed amendments would authorize SDSS to
approve a waiver of changes in earned income calculations for
participants in an ongoing federal demonstration program
operating in Los Angeles County, called Jobs-Plus.
GRANT DISREGARDS
This bill makes significant changes to the AFDC grant:
1.Continued Suspension of COLA and 4.9% Grant Reduction Sunset:
Current law provides that a 4.9% grant cut enacted in 1995
shall sunset on October 31, 1997. Current law also provides
that the suspension of the statutory cost-of-living adjustment
(COLA) for the AFDC program shall sunset on November 1, 1997.
The proposed amendments suspend for one more year, through
October 31, 1998, both the elimination of the grant reduction
and the cost-of-living adjustment.
2.Child Support Disregard: Under previous federal law, up to
the first $50 of child support received in a month on behalf
of children on AFDC was "disregarded" and paid to the
household without a commensurate grant reduction. This bill
continues the disregard at $50.
3.Earned/Unearned Income Disregards: Current state law contains
a complex calculation for determining the amount of income a
parent or caretaker relative on aid who has earnings can
"disregard", such that the earnings are not counted against
the grant payment. The disregard is intended to provide an
incentive for recipients to obtain employment by allowing the
retention of a portion of earnings. The current formula
allows a recipient to disregard a $90 work expense allowance,
the first $30 of earnings, and then disregard 33% of earnings
over that $120. In addition, earnings up to the difference
between a "standard-of-need" and the maximum aid payment
allowed, are disregarded 100%.
Under these amendments, families would be able to disregard the
first $225 of income and half of the remaining earnings before
grants would be reduced. (For applicants, the $90 work
expense disregard and the need standard gap would be
continued; the $30 and 1/3 income disregard would not apply,
as in current law.) In addition, an existing $30 per quarter
disregard of nonrecurring gifts would be eliminated. A
typical family of 3 with a parent working part time at minimum
wage would have $87 per month less income under these
amendments; if the parent works full time, the loss would be
approximately $6 per month. In addition, these amendments
count certain types of disability income such as SSI and state
disability benefits, toward the $225.
4.Overpayment Recoveries: The proposed amendments simplify
overpayment recoveries and remove existing enhanced penalties
on working families, by calculating collections as a straight
percentage of the maximum aid payment to the household. The
percentages would be a 5% per month reduction when the
overpayment is due to county error or 10% when the overpayment
is caused by client error.
5.Self-employment income: Current law permits AFDC recipients
to become self employed and to participate in self-employment
training under the GAIN program; but due to numerous
restrictions in current law, this employment option is not
often used. These amendments would revise the method by which
counties calculate self-employment net income: recipients
could choose to disregard 40% of gross self-employment
earnings or actual verified expenses, to the extent allowed
under existing Food Stamp rules.
6.Vouchers if sanctioned--These amendments require that, if a
parent or caretaker relative has been subject to a sanction
for over 3 months, the county must issue vouchers or vendor
payments for at least rent and utilities, until the parent is
no longer sanctioned.
WELFARE-TO-WORK SERVICES
Background: The current GAIN program requires recipients to
participate in one or more of a range of activities intended to
lead to employment. The proposed amendments make significant
changes to the GAIN program and rename the program
"welfare-to-work" services. The most significant change is that
almost all adult recipients would be required to participate in
welfare-to-work services continuously while on aid. Also, the
amendments would require that recipients meet more stringent
time lines for completing education and training than under the
existing GAIN program and also would require that recipients
participate more hours each week.
Sequence of Work Activities--The proposed amendments delineate
the sequence of work activities required of adult aid recipients
to include:
1.Job Search: Job search would be for 4 weeks and may be
extended for an unspecified length of time if the county
determines it would lead to employment. In addition, if the
training or work activity specified in a participant's
employment plan is not immediately available, he or she shall
receive job search services.
2.Assessment: After job search, if employment is not found, the
recipient would be required to participate in an assessment of
skills and abilities, as specified, and sign a "plan"
developed with the county that specifies the work-related
activities to which the recipient shall be assigned and the
supportive services which will be provided, including child
care, transportation, ancillary services, personal counseling,
etc.
3.Work Activities: Under these amendments, allowable work
activities included; but are not limited to: unsubsidized and
subsidized private sector work, subsidized public sector work,
paid and unpaid work experience (unpaid generally is limited
to 12 months), on-the-job training, grant-based on-the-job
training; supported work or transitional employment, work
study, self employment, community service, job search and
readiness, vocational education and training (including adult
education and community colleges), education directly related
to employment, high school for those without a diploma or GED
and treatment services related to mental health, substance
abuse, and domestic violence. However, education, even toward
a high school diploma, must be "needed to become employed."
In addition, a county must limit assignment to the above
activities to the number or percent of recipients allowed by
federal law.
4.Community Service Employment: When a recipient reaches a time
limit and has not found a job he or she may be eligible to
participate in a community service job until reaching a
cumulative 60 months on aid.
MENTAL HEALTH AND SUBSTANCE ABUSE TREATMENT
1.The proposed amendments require that, in most cases,
recipients in need of mental health or substance abuse
treatment obtain treatment as part of their required work
activity. Welfare-to-work case managers would refer
recipients to the county mental health department or county
alcohol and drug program for diagnosis, treatment and case
management. The recipient's work contract, which specifies
required work activities, could include treatment requirements
as part of work activities. Recipients who fail to
participate in work and treatment activities without good
cause would be sanctioned by removing the adult from the
household when calculating the grant (a reduction of
approximately 19% for a three-person household.)
2.Funding: The amendments state legislative intent to fund
mental health treatment services and authorize, but do not
require, that funds be appropriated for mental health and
substance abuse treatment for CalWORKs participants. Counties
could move the funds as needed between the two services and
roll over funds to the next fiscal year.
CAL LEARN EXTENSION
Existing law requires that teen parents must attend school
through age 18 to earn a high school diploma or GED; bonus
payments and grant reductions are applied depending on whether
the teen makes adequate progress in school. The proposed
amendments extend Cal-Learn to teen parents aged 19, if they
lack a high school diploma or GED.
HOURS OF WORK ACTIVITIES REQUIRED
Single parents: The proposed amendments would require that all
single parent recipients participate in a work activity at
least:
20 hours per week beginning January, 1998;
26 hours per week beginning July 1, 1998;
32 hours per week beginning July 1, 1999;
For their entire time on aid, a parent must be participating at
least at the federal "hours per week" minimums; a county also
could require a parent to work up to 32 hours per week.
Two-parent families: The proposed amendments would require that
one parent in a two-parent family must participant in a work
activity at least 35 hours per week.
EXEMPTIONS FROM WORK REQUIREMENTS
The proposed amendments would exempt parents or caretaker
relatives from work requirements for months in which the parent
or caretaker relative is:
Disabled, with medical verification and is seeking appropriate
medical treatment;
Of advanced age;
A non-parent caretaker relative who has primary responsibility
for providing care for a child who is a dependent or ward of
the court, at risk of placement in foster care, and the
county determines that 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;
An individual who cares for an ill or disabled family member,
and whose caretaking responsibilities prevent employment;
A single parent or other relative with primary responsibility
for personally providing care to a child six months of age or
under, unless the county determines on a case-by-case basis
that this period may be reduced to the first twelve weeks
after the birth or adoption of the child, or increased to 12
months after the birth. Recipients receiving the exemption
for the first child are exempt for twelve weeks on the birth
or adoption of subsequent children, unless counties choose to
extend the exemption for subsequent children to six months.
Counties may take the availability of child care, local labor
market conditions, and other factors into account when making
the determination of the period of time these parents are
exempted;
A pregnant woman with medical verification that the pregnancy
prevents work activities or county determines training not
appropriate;
A victims of domestic violence, if participation places family
at-risk;
A second parent in a two-parent family, when one parent is
participating;
A parent or caretaker relative who lacks necessary supportive
services;
A parent or caretaker relative who lacks child care for a
child age 10 or younger.
The exemption would terminate when the condition changes and
would be reviewed at least every 6 months.
GOOD CAUSE
Current law specifies circumstances that constitute good cause
for non-participation in work activities and for not accepting a
job offer. These amendments narrow the good cause allowed to
include positions or placements in which:
there is discrimination on the basis of race, age, sex, etc.,
or the offer exceeds the daily or weekly hours customary to
the occupation;
more than a two hour commute required in addition to time
necessary to accompany children to daycare or school, or
requires more than a two mile walk;
the working conditions violate health and safety standards, or
do not provide workers compensation insurance;
acceptance of the job offer would interrupt an educational
program or work activity that would other wise lead to
employment with sufficient income to be self supporting;
acceptance of the offer or placement would violate the terms
of a recipient's union membership.
DEEMING
These amendments revise current law to eliminate references to
federal law related to deeming which have been repealed, retain
the state law currently in effect, and apply new federal
affidavits of support which are legally enforceable against the
sponsor to legal immigrants applying for public aid.
CONCILIATION AND SANCTIONS
Under current GAIN law, recipients who do not comply with work
requirements are sanctioned with grant reductions. To reduce
the state cost of fair hearings, a county level dispute
resolution ("conciliation") process is defined in current law.
The proposed amendments simplify the dispute resolution process
to shorten the time between the noncompliance and the grant cut.
Current law allows participants to end a sanction by complying
with a previous employment plan or working out an amended
contract with the county. These amendments terminate a sanction
only through compliance with an original activity.
PREVENTION OF DISPLACEMENT
Current GAIN law contains anti-displacement language to prevent
recipients in work activities from displacing those already in
the workforce. Existing law also requires that hours of work be
calculated based on at least the minimum wage in a job training
or workfare experience. The proposed amendments revise
anti-displacement provisions and require that they be applied to
community service employment and as well as other work
activities. There would be no specific minimum wage
requirement; instead the Community Services hours requirement
would be tied to any federal requirements. These amendments
make other revisions to anti-displacement provisions.
Current law requires that AFDC "discretionary" functions be
carried out by county civil service employees. These amendments
contain language preventing the contracting out of functions now
performed by civil servants.
FAMILY VIOLENCE OPTION
The new federal welfare law permits states to adopt a waiver
provision to exempt victims of domestic violence from time
limits, work requirements, and other provisions of the federal
bill. This bill adopts this waiver for California, to allow
counties to exclude victims of domestic violence from program
requirements if participation puts them at risk of further
abuse. It requires SDSS to convene a task force of district
attorneys, county welfare directors, and domestic violence
prevention experts, among others, to develop protocols on
identifying victims, handling cases, training staff, and
determining appropriate work requirements for victims. The
Department would be required to issue regulations describing the
protocol by January 1, 1999. Until the protocols are completed,
counties will be allowed to waive requirements on a case-by case
basis. County staff will be trained in violence prevention.
The amendments also specify the state will implement the federal
waiver only if federal law clarifies that domestic violence
victims are excluded from federal work requirements and are not
counted in the 20 percent of the welfare caseload that is exempt
from federal time limits.
CHILD SUPPORT
1.Cooperation: Current law requires that applicants for aid
assign to the county their right to collect child support for
any period that the applicant receives assistance and requires
recipients to cooperate with the county welfare department and
the district attorney in establishing the paternity of
children and collecting child support. These amendments
clarify the information an applicant must provide and specify
allowable reasons for claiming good cause. The amendments
specify a 25% grant reduction as a penalty for noncompliance
with certain child support cooperation requirements. The
amendments also require district attorney staff to be
available either in person or by telephone to conduct
interviews with applicants to gather information necessary to
establish a child support order or paternity. Under the
amendments, the district attorney will make the determination
whether the applicant is cooperating in establishing paternity
and the welfare department will determine whether there is
good cause for failing to cooperate.
2.Statewide Child Support Registry: Current law requires the
SDSS to implement a statewide registry of child support
orders; in addition, the new federal law requires states to
implement such a registry. The proposed amendments continue
the current law requirement and require SDSS to implement the
registry by October 1, 1998.
3.Centralized Collection/Disbursement: As required by the new
federal law, these amendments would establish a centralized
collection and disbursement unit for collections by October 1,
1998. The amendments create an advisory committee to report
recommendations for implementation to the Legislature by
December 31, 1997.
WELFARE FRAUD
Current law contains a number of penalties for the commission of
fraud in social services programs. The new federal law required
that states adopt certain new requirements for specified types
of offenses. The proposed amendments establish a "one strike"
lifetime ban on aid for a person found in a court or
administrative hearing, including on the basis of a nolo
contendere plea, to have made fraudulent statements to receive
aid from more than one county or state; to have submitted
documents for nonexistent children; or to have received more
than $10,000 in aid for which he or she was not eligible. In
addition, these amendments increase penalties for other types of
fraud and require that sanctions be imposed until reviewed and
unless reversed by a court.
SELF-INITIATED EDUCATION PROGRAMS
Under current law, recipients--at their own initiative--may
attend adult education and other public or private educational
programs while on aid. Recipients in a "self initiated program"
can be deferred from participation in GAIN by providing
specified evidence the SIP will lead to employment. The
proposed amendments permit recipients to continue in SIPs until
reaching their 24 month time limit if making satisfactory
progress; if the SIP is on a list of programs the county and
local education providers have agreed will lead to employment,
and if the recipient's welfare-to-work plan reflects a SIP. If
the SIP is not determined to lead to employment, the recipient
must quit the education program at the next quarter or semester
break to attend regular welfare to work services. Participation
in a SIP shall be reflected in an employment plan. SIPs would
have higher "hours per week" requirements than other activities:
if the number of classroom, lab or internship hours does not
meet 32 hours per week, the county must require participation in
other activities up to 32 hours. The amendments also require
that any degree or certificate program offered by private
post-secondary providers must be approved or exempted by the
appropriate state regulatory agency.
EMPLOYMENT RETENTION SERVICES
Current law permits county welfare departments to provide
post-employment case management services only to recipients who
are exempt from GAIN because they are already employed. The
proposed amendments expand county flexibility to offer these
services, by allowing counties to provide case management and
other services to any recipient in the first 12 months after
leaving aid for employment, if the services are not available.
PROBATION DEPARTMENT
Prior to 1996, counties used federal Emergency Assistance funds
from Title IV-A to support the out-of-home placement of minors
and juvenile probation facilities. The federal Department of
Health and Human Services ended this practice in January 1,
1996. However, these county costs were included in the
calculation of California's TANF block grant level. The federal
TANF block grant allows expenditures in any manner for which the
state was authorized to use AFDC funds on September 30, 1995.
The proposed amendments establish a Comprehensive Youth Services
Act to support children who are habitual truants, run-aways,
at-risk of adjudication
by the juvenile court or under probation supervision. The
amendments authorize county probation departments to
provide a broad set of services to help such at-risk youth
or youthful offenders. The amendments further require
collaboration with other local agencies and specify an
allocation by county for funds appropriated through the
budget.
GENERAL ASSISTANCE
The proposed amendments preclude from General Assistance
CalWORKs recipients who have exceeded their five year time
limit on CalWORKs until all of their children are 18 years
of age or older, regardless of whether the children are
currently living in the home. Those who have been made
ineligible from CalWORKs or whose needs are not otherwise
taken into account in determining the amount of CalWORKs
assistance to the family due to the imposition of a
sanction or penalty are also precluded from receiving
General Assistance.
INDIAN TRIBES
The new federal law permits American Indian tribes to
receive a direct allocation to operate their own TANF plan,
as long as their program meets TANF requirements. These
amendments address these requirements.
DRUG MEDI-CAL
The proposed amendments require that funds expended by
counties for drug and alcohol treatment services do not
impact the overall statewide cap on Drug Medi-Cal
reimbursements.
EVALUATION OF CALWORKS IMPLEMENTATION
Under current law, there is no ongoing statewide evaluation
of the overall AFDC program. The proposed amendments
require DSS to ensure that a comprehensive, statewide
evaluation is undertaken to evaluate the success of
welfare-to-work efforts, the impact on other public
programs, and the well-being of children.
OTHER
The amendments specify that this bill will not become
operative until the Budget Act of 1997 is chaptered.
The amendments also provide that some provisions shall not
become operative until 1/1/98.
Continued---
By: Senate Health & Human Svcs. Com/S. McCarthy/E.
Dektar
Date: August 4, 1997
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