BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1640|
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                                 THIRD READING


          Bill No:  AB 1640
          Author:   Mitchell (D), et al.
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  4-1, 7/2/12
          AYES:  Liu, Hancock, Wright, Yee
          NOES:  Berryhill
          NO VOTE RECORDED:  Emmerson, Strickland

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/16/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton
           
          ASSEMBLY FLOOR  :  50-24, 5/31/12 - See last page for vote


           SUBJECT  :    CalWORKs benefits:  pregnant mothers

           SOURCE  :     California Black Womens Health Project 
                      Western Center on Law and Poverty


           DIGEST  :    This bill requires California Work Opportunity 
          and Responsibility to Kids (CalWORKs) aid to be paid to a 
          pregnant mother who is 18 years of age or younger at any 
          time after verification of pregnancy, regardless of whether 
          she is eligible for the Cal-Learn program.

           ANALYSIS  :    

          Existing law:
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          1. Establishes, under federal law, the Temporary Assistance 
             for Needy Families (TANF) program, providing block 
             grants to eligible states as part of a welfare-to-work 
             program for qualified low-income families.

          2. Establishes, under state law, the CalWORKs program, 
             which is funded through a combination of state and 
             county funds and federal funds received through the TANF 
             program, to provide eligible low-income families cash 
             assistance and employment services.  (Welfare and 
             Institutions Code (WIC) Section 11200 et seq.)

          3. 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.  (WIC Section 11450 (b))

          4. Establishes the Cal-Learn program to provide intensive 
             case management, support services, a comprehensive range 
             of health and social services and other services to 
             teenagers under age 19 without a high school diploma or 
             equivalent, who are pregnant or parenting.  (WIC Section 
             11331)

          5. Requires that teens, in order to qualify for aid under 
             Cal-Learn, participate in school on a full-time basis 
             until earning her high school diploma or its equivalent, 
             as specified.  (WIC Section 11331.5)

          6. Requires payment of CalWORKs aid to a pregnant mother 
             without other children upon verification of pregnancy if 
             the pregnant teen also is eligible for the Cal-Learn 
             program.  (WIC Section 11450 (b)(1))

          7. Requires that CalWORKs aid be paid to eligible pregnant 
             teens pursuant to this section only when the Cal-Learn 
             program is operative.  (WIC Section 11450 (b)(2))

          This bill requires CalWORKs aid to be paid to a pregnant 
          mother who is 18 years of age or younger at any time after 
          verification of pregnancy, regardless of whether she is 
          eligible for the Cal-Learn program.

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           Background
           
          1.  Effect of Poverty on Pregnancy
           
             Various research reports have suggested a correlation 
             between poverty and low birth weights and between 
             poverty and psychological stress. 

             A 2008 study published in Health Psychology additionally 
             showed correlations between the psychological state of a 
             pregnant mother and the health of the fetus.  Mothers 
             experiencing a high amount of stress during pregnancy 
             deliver their infants earlier and at lower birth 
             weights.  Children who are born too early and who weigh 
             less at birth are at a higher risk for "infant 
             mortality, infant morbidity, and health problems that 
             may persist into childhood, adolescence and adulthood."  
             The study also found that pregnancy-specific stress - 
             related to concern about the pregnancy and associated 
             life changes - is an even more powerful contributor to 
             birth outcomes than general stress.

             Resilience among children in difficult environments was 
             shown to be improved with parental management and 
             support skills, according to a 1997 study.  The study 
             found that exposure to stress can have detrimental 
             effects on children and adolescents, but that a child's 
             resilience can mitigate some of those effects.  It found 
             that prenatal and primary care can further moderate the 
             effects of stress.  Long-term stressors include 
             deprivation, abuse, and poverty.  

             According to researchers at Brown University, large 
             developmental delays and limitations in function were 
             common among children with very low birth weights.  The 
             study, published in the journal, Clinics in Perinatology 
             in 2002, found that minority status and living in a 
             household headed by a single mother further worsen the 
             disadvantages associated with a very low birth weight 
             and that that TANF eligibility requirements may increase 
             difficulty in obtaining prenatal and other medical 
             services for mothers and children in need. 


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          2.  California's Teen Pregnancy Rate  

             Teen pregnancies have fallen to their lowest rate since 
             1991, according to the Department of Public Health.  In 
             2010, there were 29 births for every 1,000 females aged 
             15-19.  This was a drop from a rate of 32.1 births in 
             2009 and from a record high rate of 70.9 births in 1991. 
              
             Nationally, in 2010, California ranked 22nd among all 
             states in birth rates among teens aged 15-19, and was 
             below the national average, according to data compiled 
             by the Kaiser Family Foundation.

          3.  Other States  

             In its "Welfare Rules Databook: State TANF Policies as 
             of July 2010," the Urban Institute compares state 
             policies on providing welfare-to-work benefits to 
             pregnant women with no other children.  Of 31 states 
             that provide benefits to this population, 20 provided 
             benefits earlier than California's third trimester 
             policy and eight states, including New York and 
             Illinois, provide benefits as early as the first month 
             of pregnancy.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

          According to the Senate Appropriations Committee:

             First-year CalWORKs grant, services, and administrative 
             costs of $0.9 million (TANF/General Fund) in 2012-13; 
             ongoing costs of up to $3.0 million for approximately 
             260 pregnant teens per month to receive three additional 
             months of benefits, assuming the Cal-Learn program is 
             operative.

             In the event the Cal-Learn program is suspended again 
             at some point in the future, the Department of Social 
             Services would incur major ongoing costs, potentially in 
             the tens of millions of dollars (TANF/GF) to provide an 
             additional three months of CalWORKs benefits to over 
             9,000 pregnant teens per month that would not have been 
             provided under existing law, as benefits from the point 

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             of pregnancy verification are currently conditioned upon 
             the operation of the Cal-Learn program.

             Potential minor increase in Medi-Cal costs 
             (Federal/General Fund) by expanding eligibility to 
             full-scope Medi-Cal and Medi-Cal managed care enrollment 
             to specified pregnant teens.  Potential one-time 
             automation costs for MEDS programming to establish 
             earlier eligibility for a subset of pregnant women in 
             the Medi-Cal 1931(b) Program.

           SUPPORT  :   (Verified  8/21/12)

          California Black Women's Health Project (co-source)
          Western Center on Law and Poverty (co-source)
          AFSCME 
          California Association of Food Banks
          California Catholic Conference, Inc.
          California Communities United Institute
          California Food Policy Advocates
          California Hunger Action Coalition
          California State Association of Counties
          California Welfare Directors Association
          California WIC Association
          Catholic Charities of California United
          Children Now
          Coalition of California Welfare Rights Organizations, Inc.
          East Bay Community Law Center
          Laborers' Local 777
          Laborers' Local 792
          Legal Services for Prisoners with Children
          National Association of Social Workers
          National Health Law Program
          Public Counsel Law Center
          San Diego Hunger Coalition
          Santa Clara County Board of Supervisors
          St. Anthony's Foundation
          United Ways of California
          Zero to Three

           OPPOSITION  :    (Verified  8/21/12)

          Department of Finance (prior version)


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           ARGUMENTS IN SUPPORT  :    According to the Western Center on 
          Law and Poverty (WCLP), this bill's co-sponsor, 
          California's comprehensive approach to pregnancy prevention 
          among teens has put California in the forefront of reducing 
          teen pregnancy.  WCLP states, "Still, in 2009, nearly 
          48,000 babies were born to teen moms, some of whom came 
          from low-income homes.  Teen moms who are poor and lack 
          parental support should not have to wait until their third 
          trimester to get basic needs grants to prevent hunger and 
          homelessness and the support services to help them succeed 
          despite the challenges of being a young mother. ?  AB 1640 
          establishes a very modest baseline of support for a very 
          vulnerable population."

           ARGUMENTS IN OPPOSITION  :    The Department of Finance (DOF) 
          in April issued a letter of opposition to this bill, noting 
          that this bill expands cash aid to a number of pregnant 
          women.  Since then, this bill has been substantially 
          amended to remove a requirement to provide aid for adult 
          pregnant women upon verification of pregnancy.  DOF notes 
          that the April letter is out-of-date, but does not have an 
          updated position on this bill.  
           

           ASSEMBLY FLOOR  :  50-24, 5/31/12
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Campos, Carter, Cedillo, Chesbro, Davis, 
            Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, Galgiani, 
            Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, Hill, 
            Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mitchell, Monning, Pan, Perea, V. Manuel P�rez, 
            Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Gorell, Grove, Hagman, Halderman, 
            Harkey, Jeffries, Jones, Knight, Logue, Miller, Morrell, 
            Nestande, Nielsen, Olsen, Silva, Smyth, Wagner
          NO VOTE RECORDED:  Charles Calderon, Fletcher, Mansoor, 
            Mendoza, Norby, Valadao


          CTW:k  8/21/12   Senate Floor Analyses 


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                         SUPPORT/OPPOSITION:  SEE ABOVE

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