BILL ANALYSIS Ó AB 2062 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2062 (Lopez) - As Amended April 20, 2016 ----------------------------------------------------------------- |Policy |Human Services |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 AB 2062 Page 3 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