BILL ANALYSIS
AB 1039
Page 1
GOVERNOR'S VETO
AB 1039 (Aroner)
As Amended September 8, 1999
2/3 vote
ASSEMBLY: 42-36 (June 3, 1999) SENATE:21-11 (September 9,
1999)
ASSEMBLY: 42-34 (September 10, 1999)
Original Committee Reference: HUM. S.
SUMMARY : Expands work and education opportunities in the
California Work Opportunity and Responsibility to Kids
(CalWORKs) program.
The Senate amendments :
1)Permit CalWORKs recipients in self-initiated education
programs to count up to six hours per week classroom
preparation time toward their 32 hour per week work activity
requirement.
1)Establish a presumption that classroom preparation time shall
be one hour of study for each hour of instruction.
1)Permit the Department of Social Services (DSS) to increase the
six-hour study time cap after January 1, 2002, if an
assessment establishes that the six-hour limit promotes
success in participant's education programs and
self-supporting employment.
1)Limit the subsidized employment program to up to five counties
and permit DSS to determine the duration of the demonstration
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project.
1)Make various technical amendments to the subsidized employment
demonstration program.
1)Modify the Child Support Assurance Demonstration Project by:
a) Eliminating the requirement that one of the
demonstration projects conform to a specified design;
b) Permitting DSS to approve joint demonstration projects
by two or more counties if specified conditions are met;
c) Permitting counties to limit the number of families that
will be permitted to enroll in the demonstration program;
and,
d) Requiring DSS, to the extent possible, to utilize
funding streams that would cause participants to not be
subject to time limits.
AS PASSED BY THE ASSEMBLY , this bill:
1)Permitted counties to establish a subsidized employment
program as an alternative, or in addition to, community
service activities, subject to the following conditions:
a) Participants shall be entitled to a stipend of $90 per
month for mandatory payroll deductions and other work
expenses instead of the earned income disregard;
b) Participation shall not exceed one year in duration;
c) Counties shall count toward the participant's weekly
hours of participation requirement the hours of sick leave
authorized by the employer and hours a participant cannot
work because of employer-recognized holidays;
d) Participants shall be considered employees for all
purposes, including the Fair Labor Standards Act, and must
be compensated at no less than the higher of the state or
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federal minimum wage;
e) Counties shall require that participants perform at
least 24 hours of work per week that may be increased at
the option of the county to 32 hours per week;
f) Counties shall assist recipients in applying and
qualifying for the Earned Income Tax Credit (EITC);
g) Participants who fail to perform the required number of
hours in the first month shall be entitled to an assistance
payment equal to the wages not received for the hours not
worked, but shall be ineligible for the program if they
fail to meet the work requirement in the second month;
h) Employers or entities other than the county shall pay
participants' wages;
i) Counties may fund the wages for subsidized employment
through their single allocation or any other funds; and,
j) Counties shall monitor the retention of participants as
permanent employees of employers participating in
subsidized employment and cancel participation of employers
who demonstrate an unwillingness to permanently hire
individuals who have participated in subsidized employment.
2)Required counties to include in their existing notice to
CalWORKs applicants and in the welfare-to-work plan, a
description of the right of the applicant or recipient to
contest the terms of his or her welfare-to-work plan or seek
changes in the plan.
3)Conformed the allowable work activities for students to the
allowable work activities for other CalWORKs recipients by
allowing recipients to count their study time toward their
work activity requirement and created a presumption of two
hours of study time for each hour of classroom time.
4)Permitted a former CalWORKs recipient to claim a good cause
exemption from the county welfare department for
noncooperation with child support services in the same manner
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as CalWORKs applicants and recipients.
5)Made subsidized employment projects contingent upon funding in
the annual Budget Act.
FISCAL EFFECT : The Senate Appropriations Committee found
unknown costs potentially exceeding
$1 million.
COMMENTS :
Subsidized Employment. As part of California's welfare reform plan,
a CalWORKs recipient who is not employed after 18 or 24 months on
aid must go into community service employment. Community service
employment is work performed by recipients of public assistance
that otherwise would have gone undone by employees in the public,
private or non-profit sector. There are two broad approaches to
community service: a) workfare; and, b) wage-based community
service. Under workfare, recipients are required to participate
in community service as a condition of receiving their public
assistance grant. Under wage-based community service, the
recipient's grant is used to fully or partially offset wages that
are paid to the recipient.
The Legislative Analyst's Office (LAO) recently completed a
report on CalWORKs community service, "CalWORKS Community
Service, What Does It Mean for California? " (February 4,
1999). In that report, LAO found that wage-based community
service results in more income for families by allowing them
to access the EITC. A typical family of three in wage-based
community service would receive an EITC of about $250 per
month, or about $3,000 per year. The report also noted that
wage-based community service aids recipients in the transition
to work by giving participants actual work experience.
Self-Initiated Education Programs. The author states that one
purpose of this bill is to correct discriminatory hourly
requirements for CalWORKs recipients who are self-initiated
students. She states that a recent oversight hearing by the
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Select Committee on Welfare Reform Implementation on the role of
community colleges in welfare reform determined that there are
several barriers to CalWORKs recipients receiving an education.
One of the major barriers identified was the current law
requirement that students may not count their study time towards
their work participation hours.
GOVERNOR'S VETO MESSAGE :
Among its changes, AB 1039 would set a standard of one
hour of preparation time, up to a maximum of six hours
per week, to count towards a CalWORKs recipients
participation requirement and establishes guidelines
for a pilot program to allow counties to implement a
subsidized employment program as an alternative, or in
addition to, community service activities.
While I am supportive of fine tuning the CalWORKs
program to optimize its implementation, I am not
supportive of making any major changes. Providing
subsidized employment for up to 60 months is
inconsistent with the message that welfare is
temporary and may reduce the incentive for recipients
to find unsubsidized employment.
Analysis Prepared by : Curtis Child / HUM. S. / (916) 319-2247
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