BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Jim Beall, Chair


          BILL NO:       AB 264                                       
          A
          AUTHOR:        Maienschein                                  
          B
          VERSION:       May 29, 2014
          HEARING DATE:  June 10, 2014                                
          2
          FISCAL:        Yes                                          
          6
                                                                      
          4
          CONSULTANT:    Mareva Brown                                  


                                        

                                     SUBJECT
                                         
                     CalWORKs: temporary shelter assistance
                                         
                                    SUMMARY  

          This bill deletes the requirement that CalWORKs temporary  
          shelter assistance be provided consecutively to a limit of  
          16 days. Instead the bill allows a family to receive  
          temporary shelter assistance for a total of 16 calendar  
          days to be used at any time they are both homeless and  
          receiving CalWORKs aid.
                                         
                                    ABSTRACT  

           Existing law: 
           
             1)   Establishes in federal law the Temporary Assistance  
               for Needy Families (TANF) program to provide  
               assistance to needy families so that children may be  
               cared for in their own homes or in the homes of  
               relatives, and to end the dependence on government  
               benefits by promoting job preparation, work and  
               marriage. (45 CFR 260.2)

                                                         Continued---




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             2)   Establishes the California Work Opportunity and  
               Responsibility to Kids (CalWORKs) Act, to provide cash  
               benefits, employment training and other supports to  
               low-income families through a combination of state and  
               county funds and federal funds through the TANF block  
               grant. (WIC 11200, et seq.)


             3)   Provides that additional cash benefits may be  
               granted to individuals for recurring and nonrecurring  
               special needs, as specified, including homeless  
               assistance for families that are homeless and seeking  
               shelter, as defined. (WIC 11450 (e) and (f))


             4)   Limits eligibility to one period of up to 16  
               consecutive calendar days of temporary assistance and  
               one payment of permanent assistance, unless families  
               qualify for an exception, as specified. (WIC 11450  
               (f)(2)(E))

             5)   Prohibits any family that includes a parent or  
               nonparent caretaker relative living in the home who  
               has previously received temporary or permanent  
               homeless assistance at any time on behalf of an  
               eligible child from eligibility for further homeless  
               assistance. (WIC 11450 (f)(2)(E))

             6)   Requires that any person who applies for homeless  
               assistance benefits shall be informed that the  
               temporary shelter benefit of up to 16 consecutive days  
               is available only once in a lifetime, with certain  
               exceptions, and that a break in the consecutive use of  
               the benefit constitutes permanent exhaustion of the  
               temporary benefit. (WIC 11450 (f)(2)(E))

             7)   Establishes exceptions to the 16-day limit when  
               homelessness is a direct result of domestic violence  
               by a spouse, partner, or roommate; physical or mental  
               illness that is medically verified that shall not  
               include a diagnosis of alcoholism, drug addiction, or  
               psychological stress; or, the uninhabitability of the  
               former residence caused by sudden and unusual  





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               circumstances beyond the control of the family  
               including natural catastrophe, fire, or condemnation,  
               as defined, and limits homeless assistance payments  
               based on these specific circumstances to not more  
               often than once in any 12-month period. If domestic  
               violence contributes to homelessness, as defined,  
               limits homeless assistance payments to two periods of  
               not more than 16 consecutive calendar days of  
               temporary assistance and two payments of permanent  
               assistance. (WIC 11450 (f)(2)(E)(iii))
           
          This bill:
           
               1)     Deletes the requirement that homeless  
                 assistance be provided consecutively for up to 16  
                 days and instead permits homeless assistance be  
                 provided to eligible families for up to a total of  
                 16 calendar days in a lifetime.

               2)     In cases of domestic violence, deletes the  
                 requirement that homeless assistance be provided no  
                 more than twice, in two periods not to exceed 16  
                 consecutive days and instead permits homeless  
                 assistance be provided to eligible families for a  
                 total of 32 calendar days in a lifetime.


                                  FISCAL IMPACT  

          An analysis prepared by the Assembly Committee on  
          Appropriations estimated provisions of this bill could cost  
          in excess of $2 million in increased housing benefits.

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill:

           The author contends that because 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. AB 264 will remove the  
          disincentive to refuse or interrupt temporary housing  
          assistance during the 16-consecutive-day period, according  
          to the author. It does this by simply removing the  





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          requirement that the 16 days be consecutive. In order to  
          avoid forfeiting the remainder of the one-time benefit, the  
          current rule also serves as a disincentive for families to  
          find alternative arrangements, seek prospective  
          opportunities for employment, or tend to other health or  
          family obligations during the 16-day period, the author  
          states.


           Homelessness

           Rising rental prices, decreased availability of federal  
          housing vouchers and continued effects of the Great  
          Recession have thwarted national and statewide efforts to  
          make substantial decreases in the numbers of homeless  
          people. In 2010, the U.S. Department of Housing and Urban  
          Development (HUD) created a federal strategic plan to  
          prevent and end homelessness by 2015. While that plan  
          reports improvement in some areas of homelessness - and  
          specifically a decrease in the numbers of people  
          experiencing chronic homelessness - the number of homeless  
          families with children remains a concern. 

          On a single January night in 2013, more than 610,000 people  
          were homeless. Of those, 36 percent, or 222,000 people were  
          part of families, according to the 2013 Annual Homeless  
          Assessment Report to Congress, prepared by HUD. Nearly  
          one-quarter (138,149) of homeless people were children  
          under the age of 18. People in families accounted for 50  
          percent of those in homeless shelters.

          California is home to nearly one-quarter of the nation's  
          homeless populations, some 136,826 people. Nearly 67  
          percent of them were unsheltered. And while the report  
          found that people in families were much more likely to be  
          sheltered (86 percent) than unsheltered, four California  
          cities were in the top five major U.S. cities with homeless  
          families who were unsheltered: in Fresno, 57 percent of  
          homeless families were unsheltered, followed by 49 percent  
          in Long Beach, 31 percent in Los Angeles, and 16 percent in  
          Oakland. 

          Effect on children

          Homelessness has particularly damaging effects on children.  





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          According to a fact sheet provided by the American  
          Psychological Association (APA),<1> nearly 1 million  
          homeless children were enrolled in public schools during  
          the 2009-2010 school year, a 38 percent increase from the  
          2006-2007 academic year. 

          The APA cites a series of adverse effects for children who  
          experience homelessness including a lack of stability  
          leading to disruptions in schooling and decreased academic  
          achievement, increased likelihood of grade repetition,  
          suspension or identification of a learning disability.  
          Homeless children are twice as likely to experience hunger  
          as their non-homeless peers, which has negative effects on  
          the physical, social, emotional and cognitive development  
          of children. One-quarter of homeless children have  
          witnessed violence, 22 percent have been separated from  
          their families, half of homeless children experience  
          problems with depression and anxiety and one in five  
          homeless preschoolers have emotional problems that require  
          professional care.
           

          CalWORKs

           The California Work Opportunity and Responsibility to Kids  
          (CalWORKs) program provides monthly income assistance and  
          employment-related services to move children out of poverty  
          and help families meet basic needs.  Federal funding for  
          CalWORKs comes from the Temporary Assistance for Needy  
          Families (TANF) block grant.  The average monthly CalWORKs  
          cash grant for a family of three is $463, or $15.43 per day  
          to meet basic needs such as rent, clothing, utilities and  
          other necessities. According to CDSS data, 554,292 families  
          received CalWORKs benefits in January 2014, including more  
          than 1 million children.  Nearly 80% of the children were  
          under age 12. While federal law limits cash assistance to a  
          family with an adult to 60 months, California law limits  
          eligibility for the CalWORKs program to 24 months, although  
          benefits to families may be extended to 48 months if  
          families meet federal work participation requirements. 
           
           Homeless Assistance program

          A CalWORKs family is considered homeless under WIC 11450  
          -------------------------
          <1> https://www.apa.org/pi/families/poverty.aspx?item=6




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          (f) when the family lacks a fixed and regular nighttime  
          residence or under other specific conditions. These can  
          include that the family has a primary nighttime residence  
          that is a supervised publicly or privately operated shelter  
          designed to provide temporary living accommodations, or the  
          family is residing in a public or private place not  
          designed for, or ordinarily used as, a regular sleeping  
          accommodation for human beings. 

          A family also is considered homeless under California law  
          if the family has received a notice to pay rent or quit.  
          The family must demonstrate that the eviction is the result  
          of a verified financial hardship as a result of  
          extraordinary circumstances beyond their control, and not  
          other lease or rental violations, and that the family is  
          experiencing a financial crisis that could result in  
          homelessness if preventative assistance is not provided.  
          Benefits are allocated either for temporary shelter or for  
          permanent housing assistance. If a family demonstrates that  
          it is homeless, it may receive a nonrecurring special-need  
          benefit of $65 per day for families of up to four members  
          for the costs of temporary shelter. The fifth and  
          additional members of the family receive $15 per day, up to  
          a maximum of $125, although statute permits county welfare  
          departments to increase the daily allotment for temporary  
          shelter as necessary to secure needed bed space. 

          16-day limit

          California law provides temporary shelter assistance to  
          families receiving CalWORKs for a single period of 16  
          consecutive days, unless the family meets criteria for an  
          exception, and counts a break in the use of this assistance  
          as a permanent exhaustion of the benefit. 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. However, 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 in a lifetime.
          According to CDSS, the average time used in 2013 by  
          temporary homeless assistance recipients was 10.2 days. 





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          This bill removes the requirement that the 16 days of  
          homeless assistance be used consecutively and instead  
          provides for a lifetime limit of 16 days, unless a family  
          qualifies for an exception.

           Related legislation
           
          AB 1452 (Stone), 2014, would increase the daily maximum  
          homeless allowance for a family of four from $65 to $75 per  
          day, and increase the maximum daily assistance for larger  
          families from $125 to $135. It would require that homeless  
          assistance benefits be included in annual recalculations  
          and cost-of-living adjustments for CalWORKs benefits.

          AB 1808 (Committee on Budget) Chapter 75, Statutes of 2006,  
          increased the daily homeless allowance from $40 to $65 and  
          added criteria for eligibility that permitted assistance to  
          avoid eviction. 

                                     COMMENTS
           
          Due to a number of information technology changes to  
          welfare systems statewide, staff recommends moving the  
          implementation date of this bill to April 1, 2015, to allow  
          the Office of Systems Integration sufficient time to make  
          program changes. Staff recommends the following amendment: 

          Section 4:
           (a) Notwithstanding the Administrative Procedure Act  
          (Chapter 3.5 (commencing with Section 11340) of Part 1 of  
          Division 3 of Title 2 of the Government Code), the State  
          Department of Social Services shall implement this act  
          through an all-county letter or similar instructions from  
          the director no later than April 1, 2015.

          (b) The department shall adopt regulations as necessary to  
          implement this act no later than July 1, 2016.
          

                                   PRIOR VOTES  

          Assembly Floor           78 - 0
          Assembly Appropriations  16 - 0 
          Assembly Human Services    5 - 0 





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                                    POSITIONS  

          Support:       Western Center on Law & Poverty (Sponsor)
                         AFSCME
                         American Academy of Pediatrics, California
                         California Catholic Conference, Inc.
                         California Communities United Institute
                         California Hunger Action Coalition
                         California State Association of Counties
                         Coalition of California Welfare Rights  
                    Organization, Inc.
                         Corporation for Supportive Housing
                         Housing California
                         Legal Services of Northern California
                         San Diego Hunger Coalition
                         United Way of San Diego County


          Oppose:   None received



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