BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 264
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          ASSEMBLY THIRD READING
          AB 264 (Maienschein)
          As Amended  January 23, 2014
          Majority vote 

           HUMAN SERVICES      5-0         APPROPRIATIONS      16-0        
           
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          |Ayes:|Stone, Maienschein, Ian   |Ayes:|Gatto, Bigelow, Allen,    |
          |     |Calderon, Garcia, Hall    |     |Bocanegra, Bradford, Ian  |
          |     |                          |     |Calderon, Campos, Eggman, |
          |     |                          |     |Gomez, Holden, Linder,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Deletes the requirement that the 16 days of housing  
          assistance provided to homeless families through the California  
          Work Opportunity and Responsibility to Kids (CalWORKs) program  
          be used consecutively.  Specifically,  this bill  allows an  
          eligible CalWORKs recipient to receive temporary shelter  
          assistance for 16 days at any time while the recipient is  
          receiving CalWORKs aid and is homeless.

           EXISTING LAW  :

          1)Establishes under federal law the Temporary Assistance for  
            Needy Families (TANF) program to provide aid and  
            welfare-to-work services to eligible families and, in  
            California, provides that TANF funds for welfare-to-work  
            services are administered through the CalWORKs program.  (42  
            United States Code (U.S.C.) Section 601, et seq., Welfare and  
            Institutions Code (WIC) Section 11200, et seq.) 

          2)Establishes income, asset and real property limits used to  
            determine eligibility for the program, including net income  
            below the Maximum Aid Payment (MAP), based on family size and  
            county of residence, which is currently no higher than 40% of  
            the Federal Poverty Level.  (WIC Sections 11450 and 11150, et  
            seq.)

          3)Provides temporary shelter assistance to homeless families  








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            receiving CalWORKs for one period of 16 consecutive days,  
            except as specified, and counts a break in the consecutive use  
            of this assistance as permanent exhaustion of the benefit.   
            (WIC Section 11450(f)(2))

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:
          
          1)Potentially significant costs, in excess of $2 million, for  
            increased housing benefits.

            It is unknown whether this bill would result in additional  
            benefits paid.  Recipients who would have previously forfeited  
            a portion of their benefits by interrupting the consecutive  
            16-day period could see their lifetime benefit increase.  This  
            may be partially or completely offset by lower benefits paid  
            to recipients who choose to save a portion of their 16-day  
            benefit for future use and either do not subsequently use it  
            or no longer qualify.

            If the average days used per approved request increased by  
            one, the additional net expenses to Temporary Assistance for  
            Needy Families (TANF) grant funds and/or General Fund over  
            that period would have been $2,163,351.

          2)Minor, absorbable costs for changes to Department of Social  
            Services IT systems to track benefits.

          3)May also result in minor, absorbable costs to counties for  
            re-evaluating temporary shelter assistance applicants each  
            time they apply for the benefit.

           COMMENTS  :  While many needy families experience several bouts of  
          homelessness prior to obtaining permanent housing, temporary  
          shelter assistance under the CalWORKs program only allows for a  
          lifetime limit of 16 consecutive days of aid, which are  
          considered completely exhausted if there is a break in the  
          family's statutorily defined homelessness for one day.  This  
          bill will ensure that homeless families receiving CalWORKs aid  
          can receive a full 16 days of temporary shelter assistance  
          payments while they search for permanent housing, regardless of  
          whether there is a technical break in their homeless status.  

           Homelessness in California  :  Point in time data from the 2012  








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          Annual Homeless Assessment Report produced by the U.S.  
          Department of Housing and Urban Development (HUD) reveals that  
          on a single night in 2012 there were 633,782 homeless people in  
          the United States, 239,403 of which were people who were part of  
          homeless families.  That same report reveals that 20.7%, or  
          131,193 of those homeless people were counted in California.  It  
          is important to note that this number is for a single night and  
          is neither exhaustive of the number of Californians experiencing  
          homelessness on a daily basis nor the number of Californians who  
          experience homelessness each year.

          Homelessness has particularly damaging effects on children.   
          According to the National Center on Family Homelessness,  
          approximately 1.6 million children will experience homelessness  
          over the course of a year, and more than 200,000 children have  
          no place to live on any given day.  The effects of homelessness  
          on children stem from hunger and related physical, cognitive and  
          developmental issues to lowered academic achievement and  
          increases in stress, depression, emotional instability and  
          overall poor mental health.
          
           CalWORKs homeless assistance  :  For purposes of identifying  
          families eligible for CalWORKs homeless assistance, a family is  
          considered homeless if the family lacks a fixed and regular  
          nighttime residence, if the family's primary nighttime residence  
          is a shelter, or if the family is residing in a public or  
          private place that is not an appropriate sleeping place for  
          human beings.  Additionally, a family can be considered homeless  
          for CalWORKs purposes if the family has received an eviction  
          notice and the cause of eviction is the result of a verified  
          financial hardship.
          
          Temporary shelter assistance and permanent housing assistance  
          are two types of housing assistance provided to homeless  
          families under the CalWORKs program.  Whereas permanent housing  
          assistance can be provided to help secure or maintain permanent  
          housing and help prevent eviction for a family, temporary  
          shelter assistance is provided to homeless families for up to 16  
          consecutive days.  Temporary shelter assistance for a family of  
          up to four people is $65 per day, and $15 is provided for each  
          additional family member.  The maximum amount of temporary  
          shelter assistance any family can receive is $125 per day, and  
          the assistance can only be used to pay for housing provided in a  
          commercial establishment, a shelter, or an established rental  








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          property.  Additionally, CalWORKs recipients must provide proof  
          to the county that they are searching for permanent housing  
          while they are receiving this benefit and proof that the shelter  
          assistance was used to pay for allowable housing.  Any break in  
          the use of the assistance, including one night spent with a  
          friend or relative, automatically terminates a family's ability  
          to receive shelter assistance for any days remaining within the  
          16 consecutive day limit.

          The 16 consecutive day limit is a lifetime limit for temporary  
          shelter assistance, provided that a family doesn't meet criteria  
          for an exception.  A family may receive temporary shelter  
          assistance more than once in a lifetime if the family's  
          homelessness is the direct result of domestic violence, a  
          medically verified physical or mental illness, excluding  
          diagnoses that include substance abuse, or a fire or other  
          natural catastrophe beyond the family's control.  Still, a  
          family cannot receive the 16 consecutive days of homeless  
          assistance more than once in a 12-month period, and families can  
          only receive shelter assistance for domestic violence twice in a  
          lifetime. 

           Need for the bill  :  According to the author, "Because the  
          temporary housing assistance is only available for 16  
          consecutive days, a break in assistance inadvertently punishes  
          families who, for one reason or another, have to vacate their  
          temporary lodgings for even one day.  Out-of-area travel for job  
          opportunities, childcare obligations or medical related travel  
          can interrupt a 16-day consecutive hotel stay.  Sometimes the  
          interruptions in the 16-day consecutive stay come when a family  
          vacates a hotel or motel because it is unsuited for children or  
          they have a temporary offer to stay with a family or friend.   
          Whether or not the family has a choice to stop aid before the  
          16th day, the rule itself establishes a disincentive to find  
          alternative arrangements, seek prospective opportunities for  
          employment or to tend to pressing health or family obligations  
          during this time period?The purpose of the CalWORKs temporary  
          housing assistance is to enable homeless families with children  
          to stay off of the street and more quickly secure permanent  
          housing.  AB 264 strengthens the ability of the program to  
          achieve that goal."

          Support:  The Western Center on Law and Poverty writes, "Parents  
          facing hard choices and turning to the CalWORKs program due to  








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          economic hardship, loss of a job or a home, can be overwhelmed  
          by the rules and requirements of the program.  This is  
          especially true for applicants and recipients whose lives have  
          been destabilized by eviction or loss of a home.  AB 264  
          simplifies the rules and increases options for our state's  
          poorest families with children while improving program  
          administration."

          Opposition:  None on file.

           
          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089 


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