Existing law establishes the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families using federal, state, and county funds. Existing law requires a recipient of CalWORKs to participate in welfare-to-work activities as a condition of eligibility. Existing law limits the time period in which a participant may engage in certain state-authorized work activities, in satisfaction of welfare-to-work requirements, to 24 cumulative months during a participants lifetime, and requires the participant to engage in federally defined work activities after that period expires. Existing law requires that necessary supportive services be available to every participant in order to participate in the program activity to which he or she is assigned.

This bill would require an adult the county to deem a recipient who to be in compliance with CalWORKs welfare-to-work requirements if the recipient reports and the county verifies, or the county otherwise discovers, that the recipient meets the federally required minimum average number or of hours per week of welfare-to-work participation to be deemed to be in compliance with CalWORKs welfare-to-work hours requirements, participation, as specified. The bill would require the county to arrange for the provision of necessary supportive services for these recipients, thereby imposing a state-mandated local program. The bill would exempt these adults from sanctions for failure or refusal to comply with welfare-to-work program requirements. The bill would direct the department to issue an all-county letter or similar instruction on or before January 1, 2018.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing the bill.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Existing law establishes the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families using federal, state, and county funds. Existing law requires a recipient of CalWORKs to participate in welfare-to-work activities as a condition of eligibility. Existing law limits the time period in which a participant may engage in certain state-authorized work activities, in satisfaction of welfare-to-work requirements, to 24 cumulative months during a participants lifetime, and requires the participant to engage in federally defined work activities after that period expires. Existing law requires that necessary supportive services be available to every participant in order to participate in the program activity to which he or she is assigned.

This bill would require an adult recipient who meets minimum federal the federally required minimum average number or hours per week of welfare-to-work participation requirements to be deemed to be in compliance with CalWORKs welfare-to-work hours requirements, as specified. The bill would require the county to arrange for the provision of necessary supportive services for these recipients, thereby imposing a state-mandated local program. The bill would exempt these adults from sanctions for failure or refusal to comply with welfare-to-work program requirements. The bill would direct the department to issue an all-county letter or similar instruction on or before January 1, 2018.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing the bill.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Existing law establishes the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families using federal, state, and county funds. Existing law requires a recipient of CalWORKs to participate in welfare-to-work activities as a condition of eligibility. Existing law limits the time period in which a participant may engage in certain state-authorized work activities, in satisfaction of welfare-to-work requirements, to 24 cumulative months during a participants lifetime, and requires the participant to engage in federally defined work activities after that period expires. Existing law requires that necessary supportive services be available to every participant in order to participate in the program activity to which he or she is assigned.

This bill would require an adult recipient who meets minimum federal welfare-to-work participation requirements to be deemed to be in compliance with welfare-to-work hours requirements, as specified. The bill would require the county to arrange for the provision of necessary supportive services for these recipients, thereby imposing a state-mandated local program. The bill would exempt these adults from sanctions for failure or refusal to comply with welfare-to-work program requirements. The bill would direct the department to issue an all-county letter or similar instruction on or before January 1, 2018.

Existing law continuously appropriates moneys from the General Fund to defray a portion of county costs under the CalWORKs program.

This bill would instead provide that the continuous appropriation would not be made for purposes of implementing the bill.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Date of Hearing: May 4, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 1790

Author:(Weber) – As Amended Ver:April 20, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: Yes

SUMMARY:

This bill prohibits sanctions for adult California Work Opportunity and Responsibility to Kids (CalWORKs) program recipients who are meeting federal work requirements. Specifically, this bill:

1. Requires that an adult CalWORKs recipient who meets the minimum average per-week federal welfare-to-work participation requirements is deemed to be in compliance with state CalWORKs welfare-to-work requirements, as specified.
2. Requires that necessary supportive services be provided to recipients meeting federal welfare-to-work requirements, as specified.
3. Prohibits sanctioning of adults who are meeting federal work participation but who fail or refuse to comply with specified CalWORKs program requirements, as specified.
4. Prohibits the provisions of this bill from entitling a person to a corrective payment, as specified, prior to the effective date of those provisions.
5. Requires the provisions of this bill to be implemented by the Department of Social Services (DSS) via all-county letter or similar instruction issued no later than January 1, 2018, as specified.

FISCAL EFFECT:

1. Unknown, but not likely significant impacts to DSS for increased grant amounts and required supportive services. Approximately 2,200 CalWORKs recipients meeting federal work requirements were sanctioned last year, with an average monthly grant reduction of $120. The bill does not require counties to actively seek out these recipients and it is unlikely the entire caseload would report their status to the county. If from one percent to ten percent of the recipients had their sanctions removed, statewide grant costs would increase by $32,000 to $317,000 annually.
2. Unknown, but likely minor costs to counties, potentially reimbursable, to arrange for necessary supportive services for any client who is entitled as a result of no longer being sanctioned.

COMMENTS:

1. Purpose. According to the author, “This bill would prohibit the imposition of financial sanctions against a family receiving the CalWORKs program when adults in the family are meeting the federal work participation requirement. This bill streamlines the process between the federal work participation requirement and the CalWORKs program and ensures families are not penalized.”
2. Sanctions for noncompliance. If a CalWORKs participant fails or refuses to comply with program requirements without good cause, he or she may be subject to financial sanctions which involve removing his or her portion of aid from the CalWORKs grant received by the household. Reasons an individual may be sanctioned include not agreeing to a welfare-to-work plan, not showing satisfactory progress in a welfare-to-work activity, or quitting or refusing a job without sufficient reason. Participants facing potential sanction have the opportunity to claim good cause or enter into a compliance plan; failure to comply with that plan or show good cause results in sanction. In Federal Fiscal Year 2014, the average CalWORKs monthly grant for a single-parent-headed household was $519, compared to an average grant of $399 for a sanctioned (no aided adult) household.

This bill will exempt a recipient from sanction for failure or refusal to comply with welfare-to-work program requirements without the recipient engaging in a compliance plan or otherwise having to cure the sanction.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 12, 2016

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Susan Bonilla, Chair

ABPCA Bill Id:AB 1790 (

Author:Weber) – As Amended Ver:April 6, 2016

SUBJECT: CalWORKs: welfare-to-work

SUMMARY: Prohibits sanctions for adult California Work Opportunity and Responsibility to Kids (CalWORKs) program recipients who are meeting federal work requirements.

Specifically, this bill:

1. Requires that an adult CalWORKs recipient who meets the minimum average per-week federal welfare-to-work participation requirements is deemed to be in compliance with state CalWORKs welfare-to-work requirements, as specified.
2. Requires that necessary supportive services be provided to recipients meeting federal welfare-to-work requirements, as specified.
3. Prohibits sanctioning of adults who are meeting federal work participation but who fail or refuse to comply with specified CalWORKs program requirements, as specified.
4. Prohibits the provisions of this bill from entitling a person to a corrective payment, as specified, prior to the effective date of those provisions.
5. Requires the provisions of this bill to be implemented by the Department of Social Services (DSS) via all-county letter or similar instruction issued no later than January 1, 2018, as specified.
6. Provides that no appropriation, as specified, shall be made for purposes of implementing this bill.

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 California Work Opportunity and Responsibility to Kids (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 around 40% of the Federal Poverty Level. (WIC 11150 to 11160, 11450 et seq.)
3. 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)
4. 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)
5. 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)
6. Requires necessary supportive services, including child care, transportation, ancillary costs and personal counseling, as specified, to be available to every CalWORKs participant in order to facilitate his or her participation in the CalWORKs program activity to which he or she is assigned or acceptance of employment. (WIC 11323.2)
7. Requires an individual participating in CalWORKs to be subject to sanctions whenever he or she has failed or refused to comply with program requirements without good cause and refuses to agree to or fails, without good cause, to comply with a compliance plan, as specified. (WIC 11327.4)
8. Requires the county to make a corrective payment equal to the full amount of underpayment when an underpayment or denial of public social service occurs and results in an applicant or recipient not receiving the amount to which he or she is entitled, as specified.

(WIC 11004 (k))

FISCAL EFFECT: Unknown.

COMMENTS:

CalWORKs: 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 2016-17 monthly cash grant is $497.35, and the maximum monthly grant amount for a family of three, if the family has no other income and lives in a high-cost county, is $704. According to recent data from DSS, around 497,000 families rely on CalWORKs, including over one million children

Maximum grant amounts in high-cost counties of $704 per month for a family of three, with no other income, means $23.46 per day, per family, or $7.82 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 $8,448 per year, or 42% of poverty. Federal Poverty Guidelines for 2016 show that 100% of poverty for a family of three is $20,160 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.

Federal work requirements and the work participation rate: In order to receive federal TANF monies (California receives an annual TANF block grant of $3.7 billion), states programs are assessed using the “work participation rate” (WPR). To determine the WPR, the number of “Work Eligible Individuals” who are meeting federal work requirements is divided by the total number of Work Eligible Individuals subject to those federal requirements. Fifty percent (50%) of all families, and 90% of two-parent families, must be participating in countable federal work activities (although states can get a caseload reduction credit that reduces the overall target percentage to be reached). If a state fails to meet the WPR requirements, it could face penalties. California has not complied with WPR requirements since 2007, and has as a result submitted corrective compliance plans over that time period (some have been accepted, others are pending; the state has not yet paid a federal fiscal penalty).

Key to meeting the WPR is recipient compliance with federal work requirements. CalWORKs has two main categories of work requirements: CalWORKs federal standards, and CalWORKs minimum standards. The minimum standards include activities that are allowable for up to 24 months of the total 48 months an adult may participate in CalWORKs – this is often referred to as the “24 month clock,” and consists of a broader range and flexibility of allowable activities. CalWORKs federal standards are more restricted and, while not identical to, closely align with federal TANF requirements. Recipients must participate in welfare to work activities for an average minimum number of hours per week.

Sanctions for noncompliance: If a CalWORKs participant fails or refuses to comply with program requirements without good cause, he or she may be subject to financial sanctions which involve removing his or her portion of aid from the CalWORKs grant received by the household. Reasons an individual may be sanctioned include not agreeing to a welfare-to-work plan, not showing satisfactory progress in a welfare-to-work activity, or quitting or refusing a job without sufficient reason. Participants facing potential sanction have the opportunity to claim good cause or enter into a compliance plan; failure to comply with that plan or show good cause results in sanction. In Federal Fiscal Year 2014, the average CalWORKs monthly grant for a single-parent-headed household was $519, compared to an average grant of $399 for a sanctioned (no aided adult) household.

Need for this bill: According to the author, “[This bill] would prohibit the imposition of financial sanctions against a family receiving the California Work Opportunity and Responsibility to Kids (CalWORKs) program when adults in the family are meeting the federal work participation requirement. This bill streamlines the process between the federal work participation requirement and the CalWORKs program and ensures families are not penalized.”

Suggested amendments: In order to clarify the ways in which recipient compliance with federal work requirements would be identified – i.e., through self-reporting on the part of the recipient or discovery by the county when, for example, sampling for WPR compliance – and in order to explicitly provide for county verification of compliance, committee staff recommends the following amendments starting on line 3 of page 2 of the bill:

3

11322.81.   (a)  Notwithstanding any other law, if an adult

4

recipient reports and the county verifies, or the county

otherwise discovers, that the recipient is meeting who meets

the federally required minimum federal

5

average number of hours per week of welfare-to-work participation

6

requirements as set forth in Section 607 of Title 42 of the United

7

States Code, Code, that recipient shall be deemed to be in compliance with

8

Section 11322.8. Necessary

REGISTERED SUPPORT / OPPOSITION:

Support

California Immigrant Policy Center (CIPC)

Children’s Defense Fund

Coalition of California Welfare Rights Organizations, Inc. – sponsor

Courage Campaign

Ella Baker Center for Human Rights

Legal Services for Prisoners with Children (LSPC)

National Association of Social Workers, CA Chapter (NASW-CA)

Western Center on Law and Poverty

Opposition

None on file.

Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089