BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1182
Author: Roger Hernández (D), et al.
Amended: 8/22/11 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 4-3, 6/14/11
AYES: Liu, Hancock, Wright, Yee
NOES: Emmerson, Berryhill, Strickland
SENATE APPROPRIATIONS COMMITTEE : 6-3, 8/25/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
ASSEMBLY FLOOR : 55-17, 5/12/11 - See last page for vote
SUBJECT : CalWORKs eligibility: asset limits: vehicles
SOURCE : Author
DIGEST : This bill excludes the value of a motor vehicle
from consideration when determining or redetermining
CalWORKs eligibility, and deletes existing requirements on
county welfare departments for assessing the value of a
motor vehicle for the purposes of CalWORKs eligibility.
ANALYSIS :
Existing law:
1. Establishes the California Work Opportunity and
CONTINUED
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Responsibility to Kids
(CalWORKs) program to provide welfare-to-work services
to qualifying persons.
2. Imposes limits on the amount of income and personal and
real property an individual or family may possess in
order to be eligible for aid under the CalWORKs program,
including that assets shall not exceed the following:
A. $2,000 in savings and $3,000 for a family with a
member age 60 or above;
B. One residence that the family lives in;
C. One car with a value of $4,650 or less; and
D. Savings and interests in restricted federally
qualified accounts for the purpose of saving for
college, retirement, starting a business, purchasing
a home, or overcoming an episode of homelessness.
This bill:
1. Deletes the requirement that county welfare departments
assess the value of a vehicle when determining and
re-determining eligibility for applicants and recipients
of CalWORKs.
2. Provides that licensed motor vehicles shall be excluded
from consideration as property in this determination and
redetermination.
Background
Temporary Assistance for Needy Families (TANF) and
CalWORKs . TANF was created by a bi-partisan federal
welfare reform effort in 1996. The intent was to get needy
families with children from welfare to work and end the
prior welfare entitlement program under Aid to Families
with Dependent Children. The four stated goals of the TANF
legislation are to:
1. End a needy family's dependence on government assistance
by preparing them for a job and marriage;
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2. Help families so that children are cared for in their
own homes or in those of relatives;
3. Prevent out-of-wedlock pregnancies; and
4. Encourage the formation of two-parent families.
TANF allowed states the flexibility to continue and to
start programs that had previously required federal
waivers, but also capped federal spending on welfare by
creating fixed funding in the form of block grants for each
state. This shift allowed California to customize its
program to fit the varying needs of its needy family
population while adhering to the federal statutory and
regulatory requirements. In particular, TANF allowed
significant state flexibility on eligibility rules for
families applying to CalWORKs for cash and employment
assistance. Specifically, states can decide the income
level and property or asset levels that an applicant or
recipient must meet in order to be eligible. In
California, an applicant or recipient may have a vehicle
worth no more than $4,650.
Asset test: California versus other states . In
California, the vehicle test was last increased 15 years
ago. According to the author's office, California is
currently tied with Texas and Idaho in having the most
restrictive asset test for vehicles of any state in the
country. The following is the vehicle asset policy of the
rest of the nation: 12 states exclude all vehicles owned
by the household; 15 exclude at least one vehicle per
household; and 20 have substantially increased the value of
the vehicle exclusion.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
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Increased CalWORKs $885 $6,100
$9,600General/
caseload*
Federal**
Reduced county Potential significant future
savingsGeneral/
administrative duties or cost savings in excess
of $5,000 Federal
annually
Increased Medi-Cal Potential costs in the low
hundreds General/
caseload of thousands of dollars through 2013
* Includes projected increase in grants, services,
and child care costs.
** To the extent the CalWORKs budget exceeds
available TANF/MOE funds, any increased costs above
the base MOE requirement would be funded with General
Fund.
*** Dependent upon the degree to which this population
is already served by the Medically Needy program, for
which almost all are likely eligible.
SUPPORT : (Verified 8/25/11)
Asian Law Alliance
California Association of Food Banks
California Catholic Conference, Inc.
California Commission on the Status of Women
California Communities United Institute
California Family Resource Association
California National Organization of Women
California State Association of Counties
City and County of San Francisco
Coalition of California Welfare Rights Organizations
County of Los Angeles
County Welfare Directors Association of California
Easy Bay Community Law Center
Inner City Law Center
National Association of Social Workers - CA Chapter
New America Foundation
Regional Council of Rural Counties
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Urban Counties Caucus
Western Center on Law and Poverty
ARGUMENTS IN SUPPORT : Supporters state that access to
reliable transportation is critical for any person who
wishes to be employed in California today. Supporters
point out that, according to a 2000 study by UCLA
researchers, transportation is often a key factor in
finding and maintaining stable employment for CalWORKs
recipients. Supporters believe that the measure will
increase opportunities for recipients to find and maintain
stable employment, increase the state's work participation
rate, reduce grant costs in the long run, and help the
state and counties to avoid federal penalties in the
future.
The Regional Council of Rural Counties writes that reliable
transportation in rural and frontier areas is critical, not
only to seek and maintain employment, but also for the
health and safety of enrollees and their families. The
Council further writes that a dependable motor vehicle is
not a luxury, but a necessity for low-income rural
families.
ASSEMBLY FLOOR : 55-17, 5/12/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Chesbro, Cook, Davis, Dickinson, Eng, Feuer,
Fong, Fuentes, Furutani, Galgiani, Gordon, Hall, Hayashi,
Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries,
Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning,
Norby, Pan, Perea, V. Manuel Pérez, Skinner, Smyth,
Solorio, Swanson, Valadao, Wieckowski, Williams, Yamada,
John A. Pérez
NOES: Donnelly, Fletcher, Beth Gaines, Gatto, Grove,
Hagman, Halderman, Harkey, Jones, Knight, Logue, Mansoor,
Miller, Morrell, Nielsen, Silva, Wagner
NO VOTE RECORDED: Cedillo, Conway, Garrick, Gorell,
Nestande, Olsen, Portantino, Torres
CTW:mw 8/26/11 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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