BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1970
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          Date of Hearing:   April 10, 2012

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                Jim Beall Jr., Chair
                AB 1970 (Skinner) - As Introduced:  February 23, 2012
           
          SUBJECT  :  Social Services Modernization and Efficiency Act of 
          2012

           SUMMARY  :  Establishes the Social Services Modernization and 
          Efficiency (SSME) Act to modernize and remove barriers to 
          participation in social services program.  Specifically,  this 
          bill  : 

          1)Requires any state plan submitted by any department to any 
            federal agency for a social services program administered by 
            the department, and any and all related communication, 
            including any writings relative to any waiver requested or 
            received by the department, be electronically available to the 
            public on the department's Internet Web site.

          2)Requires the Department of Social Services (DSS) to seek a 
            waiver from the United States Department of Agriculture (USDA) 
            authorizing county human services departments and the 
            California Healthcare Eligibility, Enrollment, and Retention 
            System (CalHEERS) developed pursuant to the California Patient 
            Protection and Affordable Care Act, to deliver notices and 
            communication pertaining to CalFresh eligibility and benefit 
            issuance, as allowed under the SSME Act.

          3)Requires DSS, in consultation with client and patient 
            advocates, representatives of county human services 
            departments, and representatives of county eligibility 
            workers, develop a process whereby applicants and recipients 
            can affirmatively choose to receive notices of action or other 
            communications relevant to their case electronically.

          4)Requires that all applicants and recipients of public social 
            services, including CalFresh benefits and any state health 
            subsidy program, be allowed to affirmatively choose to receive 
            communications and notices electronically, by U.S. mail, or 
            both subject to the following:

             a)   No notice or other communication shall be sent 
               electronically unless that method has been affirmatively 







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               requested in writing by the applicant or recipient, and a 
               record of such requests shall be maintained in the 
               individual's case file for 3 years;

             b)   All notices sent electronically must be sent by secured 
               server and may not be sent as an e-mail attachment.  If the 
               administering agency or department does not receive 
               confirmation that the communication has been opened or 
               downloaded within seven days of being sent, requires the 
               communication to be sent by U.S. mail;

             c)   Notwithstanding provisions allowing for electronic 
               communication, notices terminating or sanctioning benefits, 
               or establishing an intentional program violation for any 
               household member or for establishing or collecting an 
               overpayment, underpayment, overissuance or underissuance 
               from recipients or former recipients shall be sent by U.S. 
               mail;

             d)   Every effort shall be made to maintain the privacy and 
               security of applicant or recipient information; and,

             e)   Requires compliance with state security standards, which 
               shall be posted on the department's Internet Web site and 
               on all online applications.

          5)Prohibits collection or use for any purpose, other than 
            transmitting information to the applicant or recipient as 
            provided, electronic data that identifies an applicant or 
            recipient, his or her permanent or temporary internet protocol 
            (IP) address, or the geographic location of the IP address or 
            mobile device.

          6)Prohibits a county from requiring an applicant for or 
            recipient of aid to provide verification of information 
            provided to the county unless federally required and necessary 
            to determine eligibility for aid or to compute the amount of 
            aid, and the information is not already available to the 
            eligibility worker.

          7)Requires counties to maximize the use of electronic means of 
            verifying information that must be verified, except for 
            information that federal law permits to be verified through 
            self-attestation statement of the applicant or recipient.








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          8)Requires, at a minimum, that the state work with designated 
            stakeholders to establish a statewide protocol enabling the 
            use of the electronic database developed for verification of 
            eligibility information related to the federal Patient 
            Protection and Affordable Care Act of 2010 for applicants for 
            and recipients of CalWORKs, CalFresh and other social services 
            programs.

          9)Requires that applicants for or recipients of aid under social 
            services programs whose information is electronically verified 
            be given an opportunity to review and make corrections to the 
            electronically obtained information.

          10)Requires all application and recertification issues for 
            public assistance programs be conducted in person, by 
            telephone or through other electronic means to provide for 
            more efficiency and reduce associated transportation costs.

          11)Applicants and recipients shall receive notice of the date, 
            time, and place of application and recertification interviews, 
            which shall be scheduled at least 10 working days in advance 
            and, if in person, shall be conducted within 30 minutes of the 
            individual's arrival time.

          12)If the option of on-demand telephone interviews is offered, 
            the required notice shall inform the applicant or recipient of 
            this option and how to phone in for the interview.

          13)Requires that notices also inform applicants and recipients 
            that they may conduct interviews through various electronic 
            means, and requires that the notice be developed in 
            consultation with designated stakeholders and be provided in 
            language that is accessible to applicants and recipients.

          14)Requires that expedited service interviews for CalFresh 
            benefits be postponed and conducted at the same time as the 
            interview for regular CalFresh benefits if the state or county 
            welfare department has no verifiable information indicating 
            the applicant's ineligibility for expedited service.

          15)Authorizes DSS to implement the SSME Act through all-county 
            letters or similar instructions to be issued no later than 
            January 1, 2014.

          16)Declares that no appropriation would be made for purposes of 







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            implementing the SSME Act.

           EXISTING LAW  

          1)Establishes social services programs, including the California 
            Work Opportunity and Responsibility to Kids (CalWORKs) 
            program, CalFresh, and Medi-Cal.

          2)Provides that public social services for which state 
            grants-in-aid are made to the counties shall be administered 
            fairly to the end that all persons who are eligible and apply 
            for such public social services shall receive the assistance 
            to which they are entitled promptly, with due consideration 
            for the needs of applicants and the safeguarding of public 
            funds.

          3)Requires county welfare departments, to the extent provided by 
            federal law, to provide CalFresh benefits on an expedited to 
            households determined to be in immediate need of food 
            assistance.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, "�t]he combination of 
          unprecedented demand in terms of caseload increases and 
          declining state and local capacity highlights the need for 
          program improvements to modernize social services programs."  
          The author further states:

               Many California families' health and well-being have 
               been threatened as an effect of the economic crisis, 
               and are now seeking assistance through the state to 
               stabilize their livelihood.  It is imperative that we 
               remove unnecessary barriers to social services 
               programs to help guarantee that the neediest in our 
               communities have greater access to these programs.  In 
               these times of economic uncertainty, we have to ensure 
               that all those who qualify for these vital social 
               safety net programs are able to obtain access to them. 
                 

          Not only are many individuals not receiving needed aid for which 
          they are eligible, the low participation rate costs the state 
          federal dollars.  In the CalFresh program, for example, 
          California annually loses out on $4.9 billion dollars in federal 







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          funds due to 3.5 million eligible non-participants.  Lost 
          Dollars, Empty Plates: The Impact of CalFresh Participation on 
          State and Local Economies, California Food Policy Advocates 
          (February 2012), p 3. 
           
          This bill is intended to make several changes to the 
          administration of social services program that would improve 
          services to the consumers of these programs and make the 
          programs more efficient.  Among other things, this bill will 
          limit verification requirements to items required by federal 
          law, reducing the paperwork that customers must provide prior to 
          enrollment.  Consistent with federal law, this bill permits 
          electronic transmission of certain notices of action between 
          county human services departments and consumers.  This bill also 
          seeks to establish alternatives to in-person interviews for 
          applications and redeterminations at the option of the applicant 
          or recipient.  It also ensures transparency by making copies of 
          any state plan submitted by the Health and Human Services Agency 
          available to the public.  The author says that "�t]hese 
          modernization changes will streamline human services programs 
          for recipients and counties, and serve to illustrate the 
          efficiencies to be gained from the use of modern technology."  
          This bill also provides privacy protections, limiting counties' 
          use of an applicant's or recipient's electronic information for 
          any purpose other than communicating with the applicant or 
          recipient.

          The author reports that the idea for this bill came from months 
          of meetings among stakeholders, including DSS, discussing 
          options for achieving program simplification and removal of 
          access barriers, reducing administrative complexity, adding 
          linkages with and coordination among other state assistance 
          programs, providing stronger support for nutritious food choices 
          and nutrition education, and encouraging program innovations.  
          Co-sponsor of this bill, Service Employees International Union - 
          California (SEIU), also emphasizes that this bill includes "a 
          set of program improvements agreed upon by client advocates, 
          counties and our front-line workers who operate the programs."  
          The coalition of sponsors and the author are continuing to work 
          with DSS on amendments to refine this bill.

          In support of this bill, Legal Services of Northern California 
          says that, with current state and county budget constraints, "it 
          is imperative to take advantage of technological advances to 
          allow for a more effective and efficient means of establishing 







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          public benefits eligibility.  It will also prevent 'churning' 
          (reapplication after procedural denials) and the harm to 
          families who otherwise can go hungry and homeless."

           Opposition  :  The California District Attorneys Association 
          (CDAA) opposes this bill, asserting that allowing application 
          and recertification interviews for certain public benefits to be 
          conducted via telephone or other electronic means invites more 
          fraud into these systems.  In addition, CDAA opposes provisions 
          prohibiting a county from requiring verification to determine 
          eligibility or compute the amount of aid that is not federally 
          required, and provisions permitting the county to request 
          additional information but providing that aid shall not be 
          delayed, denied, or terminated due to the individual's failure 
          to provide such information.  CDAA contends that "�e]nsuring 
          program integrity should be a hallmark of public assistance 
          programs and this bill frustrates the state's ability to do so." 
           

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Coalition of California Welfare Rights Organizations (sponsor)
          County Welfare Directors Association of California (sponsor)
          Service Employees International Union - California (SEIU) 
          (sponsor)
          Western Center on Law & Poverty (sponsor)
          Alameda County Community Food Bank
          Asian Law Alliance
          California Catholic Conference
          California Food Policy Advocates 
          California Hunger Action Coalition
          California State Association of Counties 
          Department of Public Social Services
          Humboldt County Department of Health & Human Services
          Laborers' Locals 777 & 792
          Legal Services of Northern California
          Monterey County Board of Supervisors
          St. Anthony's Foundation
          Stanislaus County Community Services Agency

           Opposition 
           
          California District Attorneys Association (CDAA)







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