BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1970 (Skinner)
          As Amended  April 19, 2012
          Majority vote 

           HUMAN SERVICES      4-2         APPROPRIATIONS      12-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Beall, Ammiano, Hall,     |Ayes:|Fuentes, Blumenfield,     |
          |     |Portantino                |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones, Wagner             |Nays:|Donnelly, Nielsen, Norby, |
          |     |                          |     |Wagner                    |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes the Social Services Modernization and 
          Efficiency (SSME) Act to modernize and remove barriers to 
          participation in social services programs, in anticipation of 
          possible upcoming automation changes to the California Work 
          Opportunity and Responsibility to Kids (CalWORKs) and CalFresh 
          programs as a result of the California Patient Protection and 
          Affordable Care Act.  Specifically,  this bill  : 

          1)Requires any state plan submitted by any department 
            administered by the Health and Human Services Agency to any 
            federal agency and any approved waiver requested or received 
            by any department, be electronically available to the public 
            on the department's Internet Web site.

          2)Requires the Department of Social Services (DSS) to promulgate 
            regulations to allow for the delivery of notices and 
            communications pertaining to CalFresh and CalWORKs program 
            eligibility and benefit issuance electronically or both 
            electronically and by mail, as provided.

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








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            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)   Upon choosing to receive communication electronically, 
               requires that the recipient be informed in writing of the 
               right to opt out of electronic communications;

             b)   Requires the administering agencies or departments to 
               respond to all undeliverable or rejected electronic 
               communications by unsubscribing the recipient from 
               electronic communications and reinstating mail delivery, 
               and to inform the recipient or head of household how to 
               request electronic delivery;

             c)   Provides that no notice or other communication shall be 
               sent electronically unless that method has been 
               affirmatively requested in writing, or electronically, with 
               an electronic signature, by the applicant or recipient, and 
               a record of such requests shall be maintained in the 
               individual's case file for three years;

             d)   Requires that all notices sent electronically be sent by 
               secured server, not be sent as an e-mail attachment, and 
               include information on the right to opt out of electronic 
               communication at any time, with instructions on how to do 
               so.  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 
               agency or department to send an electronic reminder notice 
               to the recipient;

             e)   Requires that, 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 be sent by U.S. mail;









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             f)   Requires that every effort be made to maintain the 
               privacy and security of applicant or recipient information; 
               and,

             g)   Requires compliance with state security standards, which 
               shall be posted on the department's Internet Web site and 
               on the home page for 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, notwithstanding existing fingerprint imaging 
            requirements to establish CalWORKs eligibility, 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.

          8)Requires, if necessary information is not contained in the 
            county human services department files, and self-attestation 
            is not sufficient, the county human services department to 
            search all available and accessible databases to verify all 
            eligible information pursuant to protocols developed by DSS.

          9)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, and to identify other available federal and state 
            databases, and establish protocols for searching those 
            databases for relevant information.









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          10)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.

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

          12)Except for applicants who may qualify for immediate CalWORKs 
            or CalFresh assistance, 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 and the person 
            appears for the scheduled interview on time, shall be 
            conducted within 30 minutes of the scheduled interview time.

          13)Requires the notice required by 12) above, to inform the 
            applicant or recipient of all options available in the county 
            for completing the interview prior to the scheduled 
            appointment, and requires the notice to be developed in 
            consultation with advocates, counties, and county eligibility 
            workers, and to be available in a language accessible to the 
            applicant or recipient.

          14)Deems an adult CalWORKs recipient whose youngest child is 
            under six years of age to be in compliance with existing 
            welfare-to-work requirements if he or she is participating in 
            at least 20 hours per week of federally eligible 
            welfare-to-work activities, and provides that such a person 
            would be eligible for specified support services, and would 
            not be subject to sanction for failure or refusal to comply 
            with program requirements, as specified.

          15)Requires DSS to implement requirements that county welfare 
            departments provide transitional CalFresh benefits to 
            households terminating participation in CalWORKs so as to 
            maximize continued enrollment of eligible recipients, pursuant 
            to applicable federal regulation.

          16)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 








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            human services department has no verifiable information 
            indicating the applicant's ineligibility for expedited 
            service, and requires DSS to seek all necessary waivers of 
            federal law to implement this requirement.

          17)Provides that an eligible applicant shall not be denied 
            expedited services if he or she provides a valid social 
            security number unless it cannot be used to verify identity 
            through the Medi-Cal Eligibility Data system or other 
            available database, and further provides that once identify is 
            verified, all other verification shall be postponed for 30 
            days, if permitted by federal law.

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

          19)Declares that no appropriation would be made for purposes of 
            implementing the SSME Act.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:

          Costs associated with this legislation should be minor and 
          absorbable within existing DSS resources.  Current updates 
          to the Statewide Automated Welfare System (SAWS) include 
          the capacity to deliver notices electronically.  It is 
          expected that CalHEERs �the California Healthcare 
          Eligibility, Enrollment, and Retention System] will include 
          the capability to determine eligibility for the CalFresh 
          program.  Therefore, all automation changes are underway.  
          In addition, this legislation primarily authorizes counties 
          to deliver notices electronically and establishes client 
          protections should they choose to do so.  It does not 
          require counties to provide electronic notices. 

           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 








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          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 in federal 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, thereby 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 








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

          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.  


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


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