BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1640 (Mitchell)
          As Amended  May 25, 2012
          Majority vote 

           HUMAN SERVICES      4-2         APPROPRIATIONS      12-0        
           
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          |Ayes:|Beall, Ammiano, Hall,     |Ayes:|Fuentes, Blumenfield,     |
          |     |Portantino                |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Ammiano, Hill,     |
          |     |                          |     |Lara, Mitchell, Solorio   |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones, Grove              |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires payment of California Work Opportunity and 
          Responsibility to Kids Act (CalWORKs) aid and CalFresh benefits 
          to otherwise eligible pregnant mothers who are 18 years of age 
          or younger at any time after verification of pregnancy.  
          Specifically,  this bill  :

          1)Requires payment of CalWORKs aid to a pregnant mother who is 
            18 years of age or younger in a family without a needy child 
            qualified for aid upon verification of pregnancy and without 
            regard to her eligibility for the Cal-Learn Program.

          2)Prohibits, to the extent permitted by federal law, a pregnant 
            mother who is 18 years of age or younger from being denied or 
            made ineligible for CalFresh benefits, or from being required 
            to participate in the CalFresh Employment and Training (E&T) 
            program, at any time after verification of pregnancy.

           EXISTING LAW  : 

          1)Requires payment of CalWORKs aid to a pregnant mother in a 
            family without a needy child qualified for aid 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.

          2)Requires payment of CalWORKs aid to a pregnant mother in a 
            family without a needy child qualified for aid upon 








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            verification of pregnancy if the pregnant woman is also 
            eligible for the Cal-Learn Program (providing intensive case 
            management and other services to teenagers under age 19 
            without a high school diploma or equivalent, who are pregnant 
            or parenting).

          3)Establishes the CalFresh E&T program, under which counties 
            that choose to participate may require nonexempt CalFresh 
            recipients who do not receive cash grants under the CalWORKs 
            program to participate in work activities to remain eligible 
            for CalFresh benefits.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:
          
          1)Annual CalWORKs grant and administrative costs of 
            approximately $500,000 (Temporary Assistance for Needy 
            Families/General Fund (TANF/GF)) to the extent that 500 young 
            women under the age of 18 receive an additional three months 
            of CalWORKs benefits under this bill.

          2)To the extent eligible pregnant women early in their pregnancy 
            receive three months of CalFresh benefits that they had not 
            otherwise applied for, this bill could bring in an additional 
            $220,000 in federal food and nutrition benefits.  The 
            administrative costs for those cases would be approximately 
            $120,000 ($60,000 GF).

           COMMENTS  :  Under current law, a pregnant woman with no other 
          eligible children in the household is not eligible for basic 
          needs cash assistance through CalWORKs until the third 
          trimester.  Established in 1993 (SB 35 (Budget Committee), 
          Chapter 69, Statutes of 1993, and SB 1078 (Watson), Chapter 
          1252, Statutes of 1993), the Cal-Learn Program addresses, 
          through CalWORKs, the unique educational, vocational, training, 
          health, and other social service needs of pregnant teens and 
          teenage parents to help them achieve self-sufficiency.  
          Low-income, pregnant women are also eligible to receive 
          pregnancy Medi-Cal, which is a fee-for-service health benefit 
          that covers pregnancy related healthcare.  Once a woman becomes 
          eligible for CalWORKs or Cal-Learn, she receives 1931(b)-linked 
          Managed Care Medi-Cal.  As the author points out, under current 
          law, women who become eligible for CalWORKs in their third 
          trimester must switch healthcare programs and often their 








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          provider. 

           Need for this bill  :  According to the author, the 
          delayed-eligibility rule to receive CalWORKs cash aid "is over 
          two decades old and pre-dates  many recent academic studies 
          showing that instability and stress felt by a pregnant woman can 
          have long-lasting impacts on the health and wellbeing of infants 
          and children."  The author further says that:

               By not ensuring uninterrupted supportive services to 
               the women who are experiencing multiple stressful 
               situations during their pregnancies, very poor women 
               are more likely to experience premature and 
               low-birth-rate babies and children are more likely to 
               experience health and behavioral challenges which may 
               have lifelong impacts on the children's development.  
               These challenges may also interfere with the parent's 
               ability to achieve self-sufficiency.

          According to the Urban Institute, California is in the minority 
          of states that require women to wait until the third trimester 
          to be eligible for grants through TANF, the federal program that 
          funds the state's CalWORKs program.  This policy, the author 
          notes, not only impacts eligibility for basic cash assistance 
          for very low-income pregnant women, it also means they lack 
          continuity in their healthcare services.

          In California, all low-income pregnant women with income below 
          200% of poverty are eligible for Medi-Cal.  However, the type of 
          health care coverage a woman receives when she is pregnant 
          depends on whether or not she is participating in the CalWORKs 
          program.  As a result, the author says, "these mostly first-time 
          mothers with incomes below poverty are asked to transfer their 
          healthcare coverage at the third trimester, when they become 
          eligible for CalWORKs and Medi-Cal Managed Care at the time when 
          pregnant women are just settling into the routine of regular 
          bi-monthly or weekly visits to their doctor."

          The Western Center on Law & Poverty (WCLP), this bill's sponsor, 
          notes that "though women in their first and second trimesters of 
          pregnancy may be eligible for county benefits provided under 
          Welfare & Institutions Code Section 17000 cash aid, many 
          counties limit this assistance to 3 months for people who are 
          employable and there is no statewide standard of employability 








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          for these programs."  According to WCLP, "it is the experience 
          of many applicants that these programs will not enroll a 
          pregnant woman until they verify that she is not in her third 
          trimester, and therefore eligible for CalWORKs."  Therefore, 
          women with very little resources and no or little income may go 
          without any cash assistance.  WCLP also notes the complicated 
          patchwork of state and federal policy with respect to work 
          requirements for pregnant women.  This bill, at least for 
          pregnant mothers who are 18 years of age and younger, "makes it 
          clear," as WCLP says, "that California elects to protect the 
          CalFresh benefits for pregnant women to the maximum amount 
          allowed under federal law."

           
          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 


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