BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                                   Senator Kevin de Le�n, Chair


          AB 1502 (Mullin) - CalWORKs: Family Unity Act of 2015.
          
          Amended: August 4, 2014         Policy Vote: Human Services 3-1
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 1502 would expand eligibility for the CalWORKs  
          program through deletion of the consideration of child  
          deprivation as a factor in determining eligibility, as follows: 
               Provides that CalWORKs aid be granted to a family with a  
              related child who is under 18 years of age if the family  
              meets applicable eligibility requirements, without regard to  
              the employment status of the parent (current law requires  
              the principal earner to be unemployed or working less than  
              100 hours per month).
               Provides that the absence of a parent, as defined, is not  
              a condition of eligibility to receive CalWORKs benefits, and  
              expands the definition of "absent parent" to include parents  
              absent solely by reason of the performance of active duty in  
              the armed forces (current law excludes parents on active  
              military duty from the definition of an absent parent).

          Fiscal Impact: Ongoing major increase in CalWORKs grant,  
          services, and administrative costs of $13.2 million to $17.5  
          million (General Fund) to the extent removing the child  
          deprivation rule results in additional eligible cases and fewer  
          cases discontinued from the CalWORKs program.

          Background: Existing federal law under the Temporary Assistance  
          for Needy Families (TANF) program provides 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 California Work  
          Opportunity and Responsibility to Kids (CalWORKs) program.

          Existing state law provides that CalWORKs aid and services be  
          granted to families with related children under the age of 18  
          years, with exceptions, who are considered to be deprived of  








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          parental support or care due to the following circumstances:

                 The death, physical or mental incapacity, or  
               incarceration of a parent;
                 The unemployment of a parent or parents;
                 Continued absence of a parent from the home due to  
               divorce, separation, or, desertion, or any other reason,  
               except absence occasioned solely by reason of the  
               performance of active duty in the uniformed services of the  
               United States.

          Under existing law, "unemployment of a parent" means a natural  
          or adoptive parent with whom the child is living and works less  
          than 100 hours in the preceding four weeks and meets specified  
          federal definitions of an unemployed parent. Existing law  
          provides that a family receiving CalWORKs benefits with a child  
          who is considered to be deprived of parental support due to  
          unemployment may continue to receive assistance regardless of  
          the number of hours his or her parent works provided the family  
          does not exceed the applicable gross or net income limits and is  
          otherwise eligible for assistance.

          Proposed Law: This bill would expand eligibility for the  
          CalWORKs program through deletion of the consideration of child  
          deprivation as a factor in determining eligibility, as follows: 
               Provides that CalWORKs aid be granted to a family with a  
              related child who is under 18 years of age if the family  
              meets applicable eligibility requirements, without regard to  
              the employment status of the parent (current law requires  
              the principal earner to be unemployed or working less than  
              100 hours per month).
               Provides that the absence of a parent, as defined, is not  
              a condition of eligibility to receive CalWORKs benefits.
               Expands the definition of "absent parent" to include  
              parents absent solely by reason of the performance of active  
              duty in the uniformed services of the United States.
               Requires the DSS to implement the provisions of the bill  
              through an all-county letter or similar instructions no  
              later than July 1, 2015, and shall adopt regulations no  
              later than July 1, 2017.

          Staff Comments: By removing the consideration of child  
          deprivation as a factor in determining CalWORKs eligibility,  
          this bill will result in both newly eligible cases as well as  








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          cases that will no longer be discontinued from the CalWORKs  
          program. 

          Based on DSS reports (CA 255CW and CA 253CW) indicating the  
          annual number of cases denied eligibility due to not meeting the  
          child deprivation requirement and the number of cases  
          discontinued due to no longer meeting the child deprivation  
          requirement, and discounting for those cases that would have  
          been found ineligible under existing law due to excess income  
          and resources, results in a monthly average of about 800 newly  
          eligible cases and about 1,000 cases that would no longer be  
          discontinued. Total annual costs for grants, services,  
          administration, and child care (for the newly eligible cases),  
          based on applicable utilization rates would result in costs of  
          about $17.5 million. To the extent 25 percent of cases denied or  
          discontinued due to not meeting the child deprivation  
          requirement would have successfully reapplied at a later date  
          and would otherwise have been found eligible, results in annual  
          costs of $13.2 million.