BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1502
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          Date of Hearing:   April 8, 2014

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                    AB 1502 (Mullin) - As Amended:  April 3, 2014
           
          SUBJECT  :  CalWORKs: Family Unity Act of 2015.

           SUMMARY  :  Streamlines CalWORKs eligibility standards for  
          two-parent families and caretaker relatives to promote family  
          maintenance.  

          Specifically,  this bill  : 

          1)Deletes the prohibition on providing CalWORKs aid to an  
            otherwise eligible assistance unit with two parents if the  
            primary wage earner has worked more than 100 hours in a month.

          2)Removes the deprivation standard used to determine CalWORKs  
            eligibility for needy two-parent families and continues to  
            apply all other income, resource and participation  
            requirements to determine eligibility.

          3)Includes nonparent caretaker relatives among the individuals  
            exempt from meeting CalWORKs welfare-to-work requirements  
            while they are caring for non-natural, non-adoptive child  
            relatives.

           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  
            U.S.C. 601 et seq., WIC 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 approximately 40% of the Federal  
            Poverty Level.  (WIC 11450, 11150 et seq.)

          3)Provides that a child for whom a parent is applying for  
            CalWORKs assistance shall be considered deprived of parental  








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            support or care due to the unemployment of his or her  
            parent(s) when the parent has worked less than 100 hours in  
            the preceding four weeks, as specified.  (WIC 11201)

          4)Grants CalWORKs aid, services, or both to families with  
            related children under 18 years of age, except as specified,  
            if they are deemed needy and deprived of parental support or  
            care due to the death, physical or mental incapacity or  
            incarceration of a parent; the unemployment of a parent or  
            parents; or the continued absence of a parent from the home  
            due to divorce, separation, desertion, or any other reason,  
            except occasional absence due solely to the parent's active  
            duty with the US armed services.  (WIC 11250)

          5)Establishes a 48-month lifetime limit of CalWORKs benefits for  
            eligible adults, including 24 months during which a recipient  
            must meet federal work requirements in order to retain  
            eligibility.  (WIC 11454, 11322.85)

          6)Requires all individuals over 16 years of age, unless they are  
            otherwise exempt, to participate in welfare-to-work activities  
            as a condition of eligibility for CalWORKs.  (WIC 11320.3,  
            11322.6)

          7)Establishes the number of weekly hours of welfare-to-work  
            participation necessary to remain eligible for aid, including  
            requirements for an unemployed parent in a two-parent  
            assistance unit, as specified.  (WIC 11322.8)

          8)Exempts specified categories of recipients from participation  
            in welfare-to-work activities, including a parent or other  
            adult CalWORKs recipient with primary responsibility for  
            personally providing care to one child from birth to 23  
            months, inclusive, and requires this exemption to be available  
            only once in addition to any other young child exemption, as  
            specified.  (WIC 11320.3(b))

          9)Provides an exemption from participation in welfare-to-work  
            activities for nonparent caretaker relatives with primary  
            responsibility for providing care for a child who is a  
            dependent or ward of the court, or at risk of placement in  
            foster care, and the county determines that the caretaking  
            responsibilities are beyond those considered normal day-to-day  
            parenting responsibilities such that they impair the caretaker  
            relative's ability to be regularly employed or to participate  








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            in welfare-to-work activities. (WIC 11320.3(b)(4))

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :  This bill seeks to increase the likelihood that  
          low-income families in need of assistance remain intact by  
          eliminating barriers to assistance for two-parent families and  
          nonparent relatives temporarily caring for their relatives'  
          children.

          The California Work Opportunity and Responsibility to Kids  
          (CalWORKs) program provides monthly income assistance and  
          employment-related services aimed at moving children out of  
          poverty and helping families meet basic needs.  Federal funding  
          for CalWORKs comes from the Temporary Assistance for Needy  
          Families (TANF) block grant.  The average monthly cash grant for  
          a family of three on CalWORKs (one parent and two children) is  
          $463.  According to recent data from the California Department  
          of Social Services, 554,292 families rely on CalWORKs, including  
          over one million children.  Nearly 80% of the children are under  
          age twelve and 40% are under age five.

          Average grants of $463 per month for a family of three means  
          $15.43 per day, per family, or $5.14 per family member, per day  
          to meet basic needs, including rent, clothing, utility bills,  
          food, and anything else a family needs to ensure children can be  
          cared for at home and safely remain with their families.  This  
          grant amount puts the annual household income at $5,556 per  
          year.  Federal Poverty Guidelines show that 100% of poverty for  
          a family of three is over three and a half times that at $19,790  
          per year.  
           
          Welfare-to-Work requirements  :  Welfare-to-work activities within  
          the CalWORKs program include public or private sector subsidized  
          or unsubsidized employment; on-the-job training; community  
          service; secondary school, adult basic education and vocational  
          education and training when the education is needed for the  
          recipient to become employed; specific mental health, substance  
          abuse, or domestic violence services if they are necessary to  
          obtain or retain employment; and a number of other activities  
          necessary to assist a recipient in obtaining unsubsidized  
          employment.  

          Unless they are exempt, single parent adults must participate  
          for at least 30 hours per week in welfare-to-work activities,  








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          whereas the minimum participation requirement for two-parent  
          families is 35 hours per week.  After receiving aid for up to a  
          maximum of 24 months, adults without an exemption must work in  
          unsubsidized employment or participate in community services  
          activities for the minimum number of hours listed above.  If a  
          CalWORKs recipient who is not exempt from participation does not  
          meet his or her welfare-to-work requirements, the recipient is  
          sanctioned for noncompliance, and that recipient's portion of  
          the family's grant is removed, resulting in a reduction of the  
          family's maximum monthly grant of up to $122.  

           Welfare-to-Work exemptions :  Under current law, CalWORKs  
          recipients over 16 years of age are required to participate in  
          county-approved welfare-to-work activities as a condition of  
          receiving aid while on the program unless they are eligible for  
          a welfare-to-work exemption.  Included among the list of  
          exempted individuals are recipients with an enduring disability  
          that prevents them from being able to regularly participate in  
          welfare-to-work activities; recipients of advanced age;  
          recipient caretakers of disabled family members, or children at  
          risk of placement in foster care, whose care needs impair the  
          CalWORKs recipient's ability to be regularly employed or to  
          participate in welfare-to-work activities; and pregnant women  
          who can provide medical verification that their pregnancy  
          impairs their ability to participate in welfare-to-work  
          activities or otherwise be regularly employed.  Exemptions from  
          welfare-to-work requirements can also be granted to parents or  
          other relative caretakers with personal responsibility to care  
          for children from zero to six months of age, the duration of  
          which can be reduced to 12 weeks or increased to 12 months at a  
          county's discretion.  As a result of SB 1041 (Committee on  
          Budget) Chapter 47, Statutes of 2012, which restricts the  
          applicability of certain welfare-to-work activities and support  
          services to a 24-month period within a recipient's lifetime  
          limit of 48 months of aid, state law includes a young child  
          exemption from welfare-to-work requirements that can be applied  
          to a parent or relative caretaker caring for a child under two  
          years of age.  This exemption can only be used once during the  
          parent or relative caretaker's time on aid.   

          Counties can also excuse recipients from participation in  
          welfare-to-work activities for good cause if a county has  
          determined that a recipient's condition or other circumstances  
          temporarily prevent him or her from being able to participate in  
          welfare-to-work activities or to be regularly employed.  Under  








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          good cause, a victim of domestic violence must be excused if  
          participation in welfare-to-work would be detrimental to the  
          victim or his or her family.  Pregnant women who experience  
          temporary illness due to their pregnancy but are not able to  
          provide medical verification can also be excused under good  
          cause, provided that the county determines that the pregnant  
          woman is not able to participate in welfare-to-work activities  
          or engage in regular employment.  However, unlike the specific  
          aforementioned exemptions from welfare-to-work requirements,  
          good cause is granted at the county's discretion based on a  
          county's determination that a condition or circumstance meets  
          specified criteria.  

          Because recipients who are determined to be exempt or excused  
          from welfare-to-work activities have been deemed by the county  
          to be incapable of fully participating in available work  
          activities or other employment, these recipients cannot be  
          sanctioned for noncompliance and are eligible to continue to  
          receive their grants during the period of exemption.   
          Additionally, state law explicitly allows any recipient who is  
          exempt from welfare-to-work participation to voluntarily  
          participate, and that recipient can choose to end his or her  
          voluntary participation without losing eligibility for aid as  
          long as he or she continues to meet the exemption criteria.   
          This allows new mothers who are exempt, for example, to remain  
          engaged in the workforce without penalizing them for choosing to  
          discontinue or lessen participation in their work activity to  
          spend time caring for their infants.

           Need for the bill  :  The Personal Responsibility and Work  
          Opportunity Reconciliation Act of 1996 (PRWORA), which was the  
          final piece of federal welfare reform legislation, repealed the  
          Aid to Families with Dependent Children (AFDC) program and  
          created the block-granted Temporary Assistance for Needy  
          Families (TANF) program.  The new approach emphasized  
          integrating parents into the workforce, and one of the resulting  
          four core purposes of the federal TANF program is to encourage  
          the formation and maintenance of two-parent families.  However,  
          current state law prevents a poor two-parent family from  
          receiving aid if the primary wage earner has worked more than  
          100 hours in a month.  This policy mirrors AFDC provisions  
          included in the Code of Federal Regulations which haven't been  
          updated since before PRWORA was implemented, making California  
          one of only eight states that still implements this standard.   
          While the 100-hour policy is based on the assumption that an  








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          average of 25 hours of work per week can generate enough income  
          for a parent to provide for his or her family and set the  
          family's income above the eligibility threshold for CalWORKs,  
          this is often not the case.  In direct conflict with the goal of  
          two-parent family maintenance, this policy encourages parents to  
          split, as the same family would be eligible for aid if the  
          primary wage earner left the home.  This bill repeals the  
          100-hour standard while maintaining all resource and income  
          eligibility requirements, all of which reveal a CalWORKs  
          applicant family's need for assistance.

          In addition to facilitating the maintenance of two-parent  
          families, this bill seeks to further encourage nonparent  
          caretaker relatives to care for their relatives' children, which  
          can help stabilize a child's household and minimize or eliminate  
          a child's interaction with the state's child welfare system.   
          Under current law, a needy relative caregiver is exempt from  
          welfare-to-work requirements when caring for a relative's child  
          who is a dependent or ward of the court, or at risk for  
          placement in foster care, and the county determines that the  
          caretaking responsibilities for that child exceed what would be  
          considered "normal day-to-day parenting responsibilities" and  
          therefore impair the relative's ability to be regularly employed  
          or participate in welfare-to-work activities.  Some caretaker  
          relatives will be able to enter a child's life and provide  
          relief to the child's parent(s) before true interaction with the  
          child welfare system commences.  At times, a child's stay with  
          the caretaker relative may be prolonged, but many needy  
          relatives care for their grandchildren, nieces and nephews for  
          short periods of time to help the child's family stabilize.  The  
          author maintains that the current requirement results in  
          unnecessary state costs, as a CalWORKs eligible caretaker  
          relative's participation in welfare-to-work and receipt of aid  
          will be short-term in many instances, and the relative's  
          connection to CalWORKs, including the welfare-to-work activity,  
          may not continue once the child can be cared for by his or her  
          parent(s).  This bill removes the requirement that caretaking  
          responsibilities be inordinate and simply exempts nonparent  
          relatives from welfare-to-work requirements when caring for  
          needy children who are not their own.













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          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          California Catholic Conference
          California Immigrant Policy Center (CIPC)
          California Partnership
          Coalition of California Welfare Rights Organizations -sponsor
          County Welfare Directors Association of CA (CWDA)
          Hunger Action Los Angeles
          Legal Services for Prisoners with Children
          National Association of Social Workers, CA Chapter (NASW)
          The San Francisco Living Wage Coalition
          Western Center on Law and Poverty

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089