BILL ANALYSIS                                                                                                                                                                                                    




          Appropriations Committee Fiscal Summary

                                AB 1039  (Aroner)

Hearing Date:8/23/99            Amended:8/17/99 + proposed
                                                             
          amendments                
Consultant: Anne Maitland           Policy Vote:Health &HS:  
6-1                      
____________________________________________________________ 

BILL SUMMARY: 

AB 1039, as proposed to be amended, allows the Director of  
Social Services to select 5 counties which could offer  
subsidized employment in lieu of community service to  
CalWORKS recipients.  In addition, it allows students to  
count class preparation as part of the work requirement and  
requires county to provide notice of  applicants' right to  
contest the terms of welfare-to-work plans

                         Fiscal Impact (in thousands)
  
Major Provisions                1999-2000      2000-01       2001-02           Fund  
                                     Unknown costs potentially exceeding        
  General
                                      $1 million

STAFF COMMENTS:  
This bill meets the criteria to be placed on the Suspense  
file.
AB 1039 authorizes the Director of Social Services (DSS) to  
select 5 counties which could offer subsidized employment  
instead of community service to CalWORKS recipients.  The  
subsidized employment must be for at least 24 hours a week  
and could last for up to one year.  Participants in a  
subsidized employment program would be considered employees  
for all purposes.  A $90 monthly stipend would be paid in  
addition to any wages. Counties would fund the subsidized  
employment from its block grant for employment services,  
other funds or grant diversion.  Counties must assist  
participants in applying for the federal earned income tax  
credit.
In addition, AB 1039 makes the following changes:
 It allows students to include classroom preparation time  
  as part of the 32 hours required for CalWORKS  










  participation.  If attendance and preparation time does  
  not equal at least 32 hours, the county must require  
  participation in work activities to make up the  
  difference.  DSS notes that these hours would not count  
  toward meeting federal work requirements
 It requires counties to notify participants that they may  
  contest the terms of a welfare-to-work plan or request  
  changes; this notice would be included in the program  
  information counties are currently required to provide
 It allows it permits former CalWORKS recipients to claim  
  a "good cause" exemption for noncooperation with child  
  support services as current recipients are entitled to  
  claim.
Staff notes that AB 1039 contains intent language that DSS  
not implement the three provisions described above unless  
funding is provided in the budget.  These provisions create  
mandates which would reimbursable regardless of budget  
action.