BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 2192                                      
          A
          AUTHOR:        Bass                                         
          B
          VERSION:       June 21, 2006
          HEARING DATE:  June 27, 2006                                
          2
          FISCAL:        Appropriations                               
          1
                                                                      
          9
          CONSULTANT:                                                 
          2
          Hailey
                                        

                                     SUBJECT
                                         
                                    CalWORKs

                                     SUMMARY  

          Permits persons convicted of felony crimes involving use or  
          possession of drugs to qualify for California Work  
          Opportunity and Responsibility to Kids (CalWORKs) under  
          specified circumstances.

                                     ABSTRACT  

          Current law:
          1)  Federal law provides that any person convicted of a  
          controlled substance-related felony is ineligible for TANF  
          or Food Stamp benefits unless state legislation is enacted  
          after August 22, 1996 to explicitly permit them to be  
          eligible for these benefits.

          2)  State law denies CalWORKs eligibility to individuals  
          convicted of controlled substance-related felonies after  
          December 31, 1997.

          This bill:
                                                         Continued---



          STAFF ANALYSIS OF ASSEMBLY BILL 2192 (Bass)           Page  
          2


          

          1)  Opts California out of the lifetime prohibition on  
          receipt of benefits funded by the Temporary Assistance for  
          Needy Families  (TANF) block grant and establishes CalWORKs  
          eligibility for otherwise-eligible persons convicted of a  
          drug-related felony.

          2)  Continues to deny CalWORKs benefits to persons  
          convicted of unlawfully transporting, importing, selling,  
          furnishing, possessing for sale, manufacturing, cultivating  
          or committing similar acts related to controlled  
          substances.

          3)  Requires that to be eligible for CalWORKs, a person  
          convicted of a drug-related felony related to possession or  
          use must provide proof of one of the following:

             a)  Completion, participation in, enrollment in or  
               placement on a waiting list for a  
               government-recognized drug treatment program;

             b)  Quarterly completion of a clean drug test following  
               receipt of benefits; or,

             c)  Other evidence that the illegal use of controlled  
               substances has ceased, pursuant to regulations adopted  
               by the State 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 IMPACT  

          According to the Assembly Appropriations Committee, there  
          are CalWORKs costs to the extent this bill adds adults to  
          CalWORKs caseloads.  Assuming half of those currently  
          excluded become eligible under this bill, annual CalWORKs  
          costs would increase by more than $600,000.  Additional  
          need for employment services and child care would increase  
          CalWORKs costs by up to $1.5 million.  There could be  
          offsetting state General Fund savings due to a lower number  
          of parole returns and re-arrests and to the extent the  
          additional income helps stabilize families and reduce the  
          foster care caseload.





          STAFF ANALYSIS OF ASSEMBLY BILL 2192 (Bass)           Page  
          3


          

                            BACKGROUND AND DISCUSSION  

           The federal ban and states' options
           This bill partially opts California out of the lifetime ban  
          on CalWORKs benefits for persons convicted of drug-related  
          felonies to the same extent that AB 1796 (Leno), Chapter  
          932, Statutes of 2004, opted the state out of the ban as  
          applied to food stamps.  This bill is identical to last  
          year's AB 855 (Bass), which was vetoed by the governor.

          The lifetime ban on food stamps and TANF-funded benefits  
          for persons with felony drug convictions was included in  
          the 1996 federal welfare reform bill, as Section 115 of the  
          Personal Responsibility and Work Opportunity Reconciliation  
          Act.

          A person may be disqualified even if they are in a  
          treatment program and need a healthy diet to succeed, or if  
          the conviction occurred long before the time they needed  
          assistance, or if they have no current substance problem.   
          Additionally, the rule disparately affects persons of  
          color.  According to the Sentencing Project, 46 percent of  
          women convicted of felony drug offenses are  
          African-American or Latina.  (Supporters have also argued  
          that the lifetime ban imposes a penalty only upon persons  
          poor enough to need public assistance; those convicted of  
          such crimes who do not need cash aid face no added  
          financial penalty beyond the criminal consequences.)

          The federal provision gives states the ability to opt out  
          of the disqualification.  California declined to include  
          any opt-out provision when it implemented welfare reform in  
          1997.  According to a 2005 report of the Sentencing  
          Project, 11 states plus the District of Columbia have  
          entirely opted out of the TANF ban, and an additional 14  
          states have partially opted out of the ban on TANF-funded  
          benefits, either by limiting the ban to certain offenses  
          (such as sale or trafficking) or establishing qualifying  
          conditions related to participation in or completion of  
          drug treatment programs.
           Scope of the bill
           According to DSS estimates, 373 persons are denied CalWORKs  
          each month because of the drug felon prohibition.  As noted  
          above, the Assembly Appropriations Committee estimates that  
          about half of these individuals will qualify for cash aid  




          STAFF ANALYSIS OF ASSEMBLY BILL 2192 (Bass)           Page  
          4


          

          under the provisions of this bill.
           
          CalWORKs support services
           The CalWORKs program includes substance abuse treatment as  
          a permitted welfare-to-work activity.  Participants can be  
          referred for treatment after an assessment by a case  
          manager and an evaluation by a county drug and alcohol  
          program.  The governor's 2006-07 budget requests $48.9  
          million in CalWORKs funds for substance abuse services.   
          The drug felon ban prevents a person from receiving  
          CalWORKs substance treatment services, or any other  
          welfare-to-work services; supporters of this bill believe  
          that these services assist individuals to become  
          employable, and that denying them services that will assist  
          their employability is, for society, self defeating.

           Rationale of opponents
           The rationale supporting the drug felon ban derives in part  
          from a concern that persons with felony drug convictions  
          are likely to misuse public benefits to support a substance  
          abuse habit.  The ban, however, requires no such showing  
          and makes no allowances for those who present no risk.   
          State law currently provides that counties may provide  
          "restricted payments" on behalf of a recipient to the  
          provider of shelter and utilities if the "county determines  
          that the recipient has demonstrated such an inability to  
          manage funds that payments to the [parent or relative  
          caretaker] have not been or are not currently used in the  
          best interest of the child."

           Legislative history
           Prior to AB 855 of 2005, there have been several previous  
          legislative efforts to modify the CalWORKs ban.  The first  
          was SB 659 (Wright) of 1999-2000, which applied to all drug  
          felonies and created a set of exceptions to the bar similar  
          to those contained in AB 2192.  The bill passed the  
          Assembly 60-8 and the Senate 30-4, but Governor Davis  
          vetoed it.  Subsequent legislation also met with  
          gubernatorial veto:  AB 767 (Goldberg), of 2001-2002, AB  
          1947 (Washington) of 2001-2002 (in final form limited to  
          food stamps), as well as last year's AB 855 (Bass).

          In vetoing AB 855, Governor Schwarzenegger wrote:

              I strongly support efforts to help people recover from  




          STAFF ANALYSIS OF ASSEMBLY BILL 2192 (Bass)           Page  
          5


          

              drug addiction, and last year I signed legislation  
              providing food stamp benefits to addicts in recovery.   
              However, I cannot support this bill as it would  
              provide cash assistance without adequate public safety  
              protections.

              California already provides resources to help meet the  
              needs of children whose parents are ineligible for  
              CalWORKs services because of their drug-related  
              felony.  This bill would provide cash and benefits to  
              felony drug offenders, but does not provide adequate  
              assurances that these individuals are abstaining from  
              drug use.  The Legislature failed to pass measures  
              that include reasonable public safety provisions such  
              as drug testing, use of voucher payment in lieu of  
              cash and mandatory treatment.
              Finally, I am concerned that not enough time has  
              passed to determine whether providing food stamps to  
              drug felons improves individuals' ability to maintain  
              sobriety and become more self sufficient so an  
              expansion of cash assistance at this time is  
              premature.  [Emphasis added.]

                              COMMENTS AND QUESTIONS
           
           Answering the governor's veto message
           In its current form, this bill is similar but not identical  
          to the one vetoed last year.  To address the governor's  
          concerns, AB 2192 includes the use of voucher payments in  
          lieu of cash, and it does give counties the option of  
          requiring a quarterly drug test while an individual is  
          receiving benefits.

                                  PRIOR ACTIONS
           
          Assembly Floor           47 - 32Pass
          Assembly Appropriations            13 --  5Do pass
          Assembly Human Services              4 --  2Do pass

                                    POSITIONS  

          Support:  American Civil Liberties Union
                    AFSCME 
                         Asian Pacific American Legal Center 
                         California Alcohol and Drug Program  




          STAFF ANALYSIS OF ASSEMBLY BILL 2192 (Bass)           Page  
          6


          

          Administrators Association 
                              of California 
                         California Catholic Conference
                         California Commission on the Status of Women
                         California Peace Officers' Association
                         California Police Chiefs Association
                         County Welfare Directors Association of  
          California
                         Families to Amend California's Three Strikes
                    Jericho
                         National Association of Social Workers,  
          California Chapter
                         National Center on Youth Law 
                    A New Way of Life Re-entry Project
                    Santa Clara County Board of Supervisors
                         Western Center on Law and Poverty

          Oppose:None received


                                   -- END --