BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2192
                                                                  Page  1

          Date of Hearing:   April 19, 2006

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                 AB 2192 (Bass) - As Introduced:  February 22, 2006 

          Policy Committee:                              Human  
          ServicesVote:4 - 2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          The bill permits parents convicted of felony crimes involving  
          the use or possession of drugs to qualify for California Work  
          Opportunity and Responsibility to Kids (CalWORKs) benefits.   
          Specifically, this bill: 

          1)Ends California's lifetime prohibition on receipt of benefits  
            for otherwise eligible parents convicted of drug possession  
            felonies subject to certain conditions.

          2)Continues to bar individuals convicted of trafficking or sales  
            from CalWORKs benefits.

          3)Requires that to be eligible for CalWORKs benefits, an  
            individual must provide proof of one of the following:

             a)   Completion, enrollment, or placement in a  
               government-recognized drug treatment program; or 

             b)   Other evidence that the illegal use of controlled  
               substances has ceased, pursuant to regulations adopted by  
               the Department of Social Services (DSS).

          4)Permits implementation by all-county letter on January 1,  
            2007, and requires regulations to be adopted no later than  
            July 1, 2007.

           FISCAL EFFECT  


           1)CalWORKs Fiscal Impact.   There will be CalWORKs costs to the  








                                                                  AB 2192
                                                                  Page  2

            extent this bill increases the number of adults who are added  
            to CalWORKs caseloads. According to data, 730 adults are  
            currently excluded from CalWORKs cases because of a drug  
            conviction.  Assuming half, or 365 adults become eligible  
            under this bill, CalWORKs costs would increase by over  
            $600,000. Additional costs in employment services and child  
            care that would become available to these individuals for an  
            additional increased cost of up to $1.5 million. 


          The data used for this estimate reflects those individuals who  
            apply for CalWORKs and are subsequently denied because of a  
            felony drug conviction. It does not include those individuals  
            who may be aware of their ineligibility and therefore do not  
            go through the application process. Depending on the number of  
            those individuals, the impact on the CalWORKs caseload and the  
            cost to the program could be significantly higher. 

           2)Potential Program Savings.  A report produced by the Little  
            Hoover Commission asserts there could be offsetting state GF  
            savings associated with this policy change due to a lower  
            number of parole returns and re-arrests. Further, to the  
            extent that providing this additional income helps stabilize  
            families, it could result in a reduced foster care caseload  
            and more successful family reunifications.

           
          COMMENTS  


           1)Rationale  . This bill partially ends California's lifetime ban  
            on CalWORKs benefits for convicted drug felons. This bill  
            makes changes to the same extent that AB 1796 (Leno), Chapter  
            932, Statutes of 2004, addressed drug possession felons'  
            eligibility for food stamps. Proponents, including a wide  
            variety of interests such as law enforcement, the ACLU, the  
            Catholic Conference of Bishops, and the California Food Policy  
            Advocates, support this bill because it increases the  
            likelihood that more drug felons will be able to return to a  
            healthy and stable lifestyle and remain drug free. In  
            addition, this bill ends what is viewed by some as a  
            needlessly punitive policy. 


           2)Background  . The premise of the original federal law was that  








                                                                  AB 2192
                                                                  Page  3

            individuals should be prevented from using public benefits to  
            support substance abuse. However, under current law, county  
            welfare departments are authorized to use "restricted  
            payments," often in the form of vouchers paid directly to a  
            landlord or utility company, to reduce risks that certain  
            clients will use cash benefits to purchase illegal drugs. The  
            state-option lifetime ban on food stamps and welfare benefits  
            for people with felony drug convictions was included in the  
            1996 federal welfare reform bill. Twelve states have opted out  
            of the lifetime ban entirely, including Michigan, New York,  
            Ohio and Oregon. Eight states have conditions that relate to  
            drug treatment, including Hawaii, New Jersey, and Washington. 


           3)Related Legislation  . Several bills on this topic have been  
            introduced over the last few years, including AB 1796 (Leno),  
            chaptered in 2004 and discussed above. Similar CalWORKs  
            legislation, AB 855 (Bass), passed the Legislature last year  
            and was subsequently vetoed.  According to Governor  
            Schwarzenegger, AB 855 provided cash and benefits to felony  
            drug offenders but did not provide adequate assurances that  
            they were abstaining from drug use. AB 2192 has tried to  
            address that concern.  


          AB 1947 (Washington), introduced in 2002, allowed drug felons  
            who were enrolled in a Proposition 36 program to be eligible  
            for benefits. Governor Gray Davis vetoed this bill, citing GF  
            costs. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081