BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2062


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          Date of Hearing:  May 18, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2062 (Lopez) - As Amended April 20, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:


          This bill prohibits the assessment of a California Work  
          Opportunity and Responsibility to Kids (CalWORKs) overpayment in  
          the month immediately following a reported change in income or  








                                                                    AB 2062


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          household composition, if 10-days' notice of change in benefits  
          has not been provided prior to the beginning of that month.


          FISCAL EFFECT:


          1)Minor costs to the General Fund, likely less than $100,000, to  
            absorb any overpayments. The dollar adjustment and the number  
            of impacted cases are small.


          2)Unknown, but likely minor costs to DSS for automation changes.


          3)Unknown, but likely minor costs to counties for process  
            adjustments. These costs are potentially reimbursable should a  
            county choose to submit a claim with the Commission on State  
            Mandates and the Commission determines that the cost is  
            reimbursable. Staff notes that the continuous appropriation  
            normally made under existing law to defray a portion of these  
            costs is prohibited under this bill.


          COMMENTS:


          1)Purpose. According to the author, "CalWORKs is designed to  
            ensure that families can find employment and are capable of  
            supporting their family.  With much difficulty, working  
            parents have many expenses pertinent to work that need  
            attention, such as, child care and transportation.  Receiving  
            a letter from the county informing the family that an  
            overpayment was acquired due to their change in income should  
            be one less stress they need to endure.  In cases like this,  
            the county was unable to provide the sufficient 10-day notice  
            of this modification in benefits.  This bill would streamline  
            the process and align the procedures welfare case workers  
            currently follow for CalFresh recipients when it comes to  








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            overpayment, and make it applicable to the CalWORKs program."


          2)Background. Typically, any changes in a CalWORKs recipient's  
            income are only reported during a semi-annual or annual (for  
            Child Only cases) report.  However, if a recipient's income  
            surpasses the Income Reporting Threshold (IRT), then a  
            mid-period report is mandatory.  When a recipient's income  
            exceeds the IRT, he or she must report this change to the  
            county within 10 days.  If the IRT is exceeded towards the end  
            of the month, an overpayment in the following month can  
            result, which the recipient must repay.  


            The California Department of Social Services, reports that  
            just under 500,000 families rely on CalWORKs, including over  
            one million children.  Nearly 60% of cases include children  
            under 6 years old.
          





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