BILL ANALYSIS
AB 1233
Page 1
ASSEMBLY THIRD READING
AB 1233 (Aroner)
As Amended June 1, 1999
2/3 vote. Appropriations
HUMAN SERVICES 5-2 APPROPRIATIONS 14-7
-----------------------------------------------------------------
|Ayes:|Aroner, Bock, Ducheny, |Ayes:|Migden, Cedillo, Davis, |
| |Dutra, | |Hertzberg, Kuehl, Papan, |
| |Strom-Martin | |Romero, Shelley, |
| | | |Steinberg, Thomson, |
| | | |Wesson, Wiggins, Wright, |
| | | |Aroner |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Ashburn, Olberg |Nays:|Brewer, Asburn, Battin, |
| | | |Pescetti, Maldonado, |
| | | |Runner, Zettel |
-----------------------------------------------------------------
SUMMARY : Modifies the California Work Opportunity and
Responsibility to Kids (CalWORKs) program. Specifically, this
bill :
1)Exempts $7,500 of the equity value of one automobile from the
CalWORKs resource limit and permits the Department of Social
Services (DSS) to annually adjust the value and establish
criteria for verification of value.
2)Revises the definition of disability-based income to include
income from any benefit program that requires a determination
of disability made by the agency administering the benefit
program and conforms other disability definitions to that
definition.
3)Modifies the Child Support Assurance Demonstration Project by:
a) Removing the three-county limit on the number of
demonstration projects and allowing demonstration projects
in five counties;
b) Eliminating the requirement that one of the
demonstration projects conform to a specified design; and,
AB 1233
Page 2
c) Permitting DSS to approve joint demonstration projects
by two or more counties if specified conditions are met.
EXISTING LAW :
1)Establishes the CalWORKs program, which provides cash
assistance and supportive services to qualified low-income
families.
2)Requires the value of any automobiles a CalWORKs applicant or
recipient owns be counted toward the program automobile
resource limit of $4,650 and be valued pursuant to methods
established under the federal food stamp program.
3)Requires that specified amounts of earned and disability-based
unearned income be excluded from countable income used in
calculating a CalWORKs grant.
4)Provides that state disability insurance benefits, private
disability benefits, Temporary Workers' Compensation benefits
and Social Security disability benefits are the only
disability-based unearned income subject to exclusion.
5)Establishes the Child Support Assurance Demonstration Program
in up to three counties to test models of child support
assurance, one of which is specified, and provides funding
from the CalWORKs program.
6)Requires DSS to develop research designs to ensure thorough
evaluation of the Child Support Assurance Demonstration
projects, including the impact of welfare-to-work
participation rates of custodial parents, CalWORKs
participation rates and costs, paternity and child support
order establishment, and other relevant information.
FISCAL EFFECT : Unknown costs for increasing the value of the
automobile exclusion and disability-based income. Child Support
Assurance costs are paid out of the counties' CalWORKs
allocation.
COMMENTS :
1)As part of welfare reform, the Legislature attempted to
simplify the administrative burden of determining the value of
automobiles owned by CalWORKs applicants and recipients by
AB 1233
Page 3
conforming the determination process to the one used in the
food stamp program. However, counties still must identify the
value of automobiles. County welfare departments state this
is a costly and time-consuming process that distracts
caseworkers from assisting recipients in finding work. This
bill would exempt from a CalWORKs household $7,500 of the
equity value of one automobile and permit DSS to establish
simplified procedures for verification. In addition to
simplifying eligibility, excluding $7,500 equity value in one
automobile will assure that many CalWORKs recipients will have
reliable transportation to assist them in obtaining
employment.
2)This bill provides that "disability-based income" is subject
to the income disregard so that Veteran's and other similar
benefits are included in the disregard. It also conforms the
definition of disability used for determining program
exemptions to the same definition.
3)The welfare reform law established a three-county Child
Support Assurance Demonstration project to test whether a
guaranteed child support payment instead of welfare benefits
can improve the financial well-being of children. Three
counties have been selected to participate in this
demonstration project. This bill eliminates the three-project
limit and allows five counties to participate in Child Support
Assurance. It also eliminates the requirement that one of the
projects must conform to a specified design, thereby allowing
the counties to design their own programs.
Analysis Prepared by : Curtis Child / HUM. S. / (916) 319-2247
FN: 0001654