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HomeMy WebLinkAboutMINUTES - 08162011 - C.33RECOMMENDATION(S): SUPPORT Assembly Bill 6 (Fuentes): CalWORKs and CalFresh, a bill that repeals the provisions relating to fingerprinting for eligibility purposes under the CalWORKs program and CalFresh and the quarterly reporting requirements under the CalWORKs program, imposes a semiannual reporting period, requires an income reporting threshold for program recipient, revises CalWORKS grant overpayment collection provisions, authorizes counties to adopt staggered semiannual report requirements, and requires the development of a utility assistance initiative, as recommended by the Director of the Employment and Human Services Department. FISCAL IMPACT: Per the Assembly Appropriations Committee, first year costs for the three program changes required by this bill would be approximately $11 million ($8 million TANF/General Fund). By the second year, the remaining up-front automation and training costs for the semiannual reporting would be fully offset by one half year of administrative savings for a net savings to the State of $17 million ($16 million TANF/General Fund). The Committee estimated that on-going savings and workload relief for counties (statewide) would be approximately $77 million annually ($51 million APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/16/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: L. DeLaney, 925-335-1097 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 16, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.33 To:Board of Supervisors From:Legislation Committee Date:August 16, 2011 Contra Costa County Subject:SUPPORT AB 6 (Fuentes): CalWORKs and CalFresh FISCAL IMPACT: (CONT'D) TANF/General Fund). The Committee also projects that these changes would result in additional benefits to the State, including $850 million in federal Supplemental Nutritional Assistance Program (CalFresh) funding and $23 million in additional sales tax revenue for the General Fund. Approximately $45 million dollars in additional federal funding could come to the State to provide these children with free school lunches and breakfasts. Finally, several million dollars in increased federal child welfare services funds could be received by the State. BACKGROUND: Introduced by Assembly Member Felipe Fuentes, Assembly Bill 6 would increase access to and participation in CalFresh by moving to a semi-annual reporting period, eliminating the Statewide Finger Imaging System (SFIS), and implementing a "Heat and Eat" program. The author notes that in difficult budget times, opportunities to improve nutrition for low-income Californians are rare: this bill will bring more federal funds to the State while also reducing State fiscal pressures. Existing law Federal law requires states to implement a system to disburse federal benefits through the Temporary Assistance to Needy Families (TANF) program and the Supplemental Nutritional Assistance Program (SNAP) block grants. In California those programs are implemented through the CalWORKsand CalFresh programs. Federal law requires California to review recipient eligibility and grant amounts. State law requires quarterly reviews of eligibility and prospective budgeting. State law also specifies that counties may implement staggered reporting cycles, establishes criteria for a complete report, and defines steps to be taken when a recipient fails to submit a complete report. Federal law directs states to establish a system to ensure that no individual receives supplemental nutrition assistance benefits more than once a month, but federal law does not require recipients to be fingerprinted. California law requires fingerprints be submitted as a condition of the application. California participation is low. Half of eligible Californians receive CalFresh, according to reports by the United States Department of Agriculture (USDA). The State ranked second to last in 2008 among states in use of benefits by eligible residents, and California ranked last in use of benefits among eligible working poor families, according to the USDA. USDA lists California among traditionally poor performing states. California's low participation has been a concern of the federal government, which provides 100 percent of the funding for CalFresh benefits. In Contra Costa County, more than 100,000 individuals are eligible for, but not receiving food assistance. Approximately 16% of adults in Contra Costa County are living in food insecure households. California is one of three states and one city that require fingerprinting as a condition of eligibility. By fingerprinting applicants, counties are able to determine whether the same applicant receives duplicate benefits in another county or under another name. A 2003 Bureau of State Audits report, "Statewide Fingerprint Imaging System:The State Must Weigh Factors Other Than Need and Cost-Effectiveness When Determining Future Funding for the System," concluded that the State "was remiss" in implementing the system before determining the extent of duplicate aid fraud. It noted that other computer checks are in place to ensure that duplication and other forms of fraud are identified. It said that in 1998, the USDA had expressed concern about the ability of DSS to identify the extent of duplicate-aid fraud throughout the State. The primary benefits that the State derives from continuing to use SFIS are the proven effectiveness of fingerprint imaging technology to identify duplicate fingerprints and its ability to identify applicants who may travel from county to county seeking duplicate aid. On the other hand, most of the matches that SFIS identified have turned out to be administrative errors made by county staff, and the level of detected duplicate-aid fraud has been small. The USDA notes that states with finger imaging requirements have an average 7 percent lower participation rate when compared to similar states, and USDA is concerned enough about the deterrent factor that it has prohibited other states from requiring applicants to be fingerprinted. In a May 7, 2010 letter to the director of DSS, the undersecretary of USDA's Food, Nutrition and Consumer services branch emphasized the agency's serious concerns that finger imaging requirements may be a barrier to participation and encouraged DSS to "actively consider" more cost-effective alternatives to finger imaging. In a letter to the author sent in May of 2011, the USDA Under Secretary noted, "There are serious concerns that finger imaging requirements may be a barrier to participation among many of the hard to reach eligible populations who wish to enroll in the program? We must ensure that we are not creating unnecessary barriers in the application process." The counties also use a computerized "Income and Eligibility Verification System" currently to detect other types of fraud. This system also is employed by the counties for use in tracking fraud in their general assistance programs. California is the only state that continues to require quarterly reporting; 47 other states, Guam, the U.S. Virgin Islands and the District of Columbia have moved to Guam, the U.S. Virgin Islands and the District of Columbia have moved to semiannualreporting. For two years, the USDA has requested that California move to a simplified reporting system, citing concerns with low participation and a belief that streamlining the reporting process would result in better access for participants and improved program administration and accuracy. USDA findings from other states indicate moving to semiannual reporting would limit the number of changes that need to be reported by CalFresh participants, thus improving the state's reporting error rate. Moving to semiannual reporting should also measurably reduce county administrative workload and provide greater access to CalFresh because there would be fewer terminations due to incomplete recertifications. In September 2009, the USDA rejected a DSS request to extend the current quarterly reporting waiver for an additional four years. Instead, USDA granted a six-month extension to develop a plan for converting to a simplified reporting system. Upon submission of the plan in February 2010, DSS received an additional 12-month extension of the current waiver during which time the state was supposed to begin implementation. This bill is a necessary part of that plan. In March, the waiver extension expired, and DSS requested a 38-month extension in order to implement semiannual reporting. The USDA refused this request, granting a six-month extension - to September 30, 2011 - and give DSS time to obtain necessary legislative authority and to take other steps to implement semiannual reporting. This bill seeks to keep CalFresh and CalWORKs aligned by moving CalWORKs recipients to a semiannual reporting system as well. DSS estimates approximately 40 percent of CalFresh recipients also receive CalWORKs, and reporting for the two programs is currently done jointly. Separating the two functions could create additional workload, inefficiency, and confusion among participants. The bill codifies California's current income reporting threshold requirements for both CalWORKs and CalFresh participants. Economic impact of CalFresh CalFresh benefits have the highest economic multiplier effect of all government programs or fiscal policy tools that stimulate the economy, according to Moody's Investor Services, an independent financial services research firm. Moody's projects that for every $1 spent from CalFresh benefits, $1.74 is generated in economic activity. Increased CalFresh participation would generate additional General Fund revenues due to increased taxable purchases by recipients. The establishment of a Home Energy Assistance Program, "Heat and Eat," funded through existing federal block grant allocations from the Low-Income Home Energy Assistance Program, would result in additional utility benefits for needy families. Enrollees in the CalFresh program automatically would be enrolled also in the energy Enrollees in the CalFresh program automatically would be enrolled also in the energy assistance program. This automatic enrollmentwould allow CalFresh applicants to claim the standard utility allowance, simplifying paperwork by not requiring applicants to submit a utility bill for use in calculating benefits. Many CalFresh recipients lose benefits because they do not submit any utility verification to use in benefit calculation. Use of the standard utility allowance would increase the amount of federal CalFresh benefits to many participants. Arguments for: The California Food Policy Advocates contend that increasing participation levels to near 100 percent of eligible households, as other states have done, could mean an additional $4.9 billion in federal benefits for needy Californians, with the potential to benefit all Californians through the more than $8.7 billion in associated economic activity. Supporters also believe the bill will lead to increased senior enrollment in CalFresh: research shows that CalFresh is underutilized among seniors, and that higher participation in the program would result in better nutrition for older Californians. Arguments against: Los Angeles County opposes the bill unless amended, arguing that elimination of the finger imaging system would remove an important anti-fraud tool which increases public confidence in the integrity of the welfare system and costs 37 cents per $100 of CalWORKs costs. Maintaining the fingerprint system is also critical, says the county, to its cross check of General Assistance applicants against CalWORKs and CalFresh cases. The County is, however, amenable to dropping the imaging requirement for CalFresh-only cases, and does support the move to semiannual reporting. Support: California Food Policy Advocates (sponsor) Alameda County Community Food Bank California Catholic Conference, Inc. California Chamber of Commerce California Communities United Institute California Farm Bureau Federation California Grocers Association California Hunger Action Coalition California Immigrant Policy Center California Pan-Ethnic Health Network California Restaurant Association California Retailers Association City and County of San Francisco City of Los Angeles County Welfare Directors Association Having Our Say Coalition National Association of Social Workers, California Chapter San Diego Food Bank San Francisco Food Bank Silicon Valley Community Foundation Western Center on Law and Poverty Yolo County Board of Supervisors 1 individual Oppose: California District Attorneys Association Los Angeles County Board of Supervisors (unless amended) DISPOSITION: Pending DISPOSITION: Pending COMMITTEE: Senate Appropriations Committee HEARING: 08/15/2011 10:00 am, Burton Hearing Room (4203) CONSEQUENCE OF NEGATIVE ACTION: The Board of Supervisors' support of this bill will not be formally recognized. CHILDREN'S IMPACT STATEMENT: This bill supports two of the community outcomes established in the Children's Report Card: 1) Families that are economically self sufficient 2) Families that are safe, stable and nurturing ATTACHMENTS AB 6 (Fuentes) bill text AMENDED IN ASSEMBLY APRIL 12, 2011 california legislature—2011–12 regular session ASSEMBLY BILL No. 6 Introduced by Assembly Member Fuentes (Coauthors: Assembly Members Beall, Blumenfield, Dickinson, Hall, Roger Hernández, Bonnie Lowenthal, Skinner, Solorio, and Yamada) (Coauthor: Senator Pavley) December 6, 2010 An act to amend Sections 11020, 11320.2, 11372, 11450, 11450.12, 11450.13, 11451.5, and 18901.4 of, to add Section 18901.2 to, to repeal Chapter 4.6 (commencing with Section 10830) of Part 2 of Division 9 of, and to repeal and add Sections 11004.1, 11265.1, 11265.2, 11265.3, and 18910 of, the Welfare and Institutions Code, relating to public social services. legislative counsel’s digest AB 6, as amended, Fuentes.CalWORKs and CalFresh Program. Existing law requires each county to provide cash assistance and other social services to needy families through the California Work Opportunity and Responsibility to Kids (CalWORKs) program using federal Temporary Assistance to Needy Families (TANF) block grant program, state, and county funds. Existing federal law provides for the federal Supplemental Nutrition Assistance Program (SNAP), known in California as the CalFresh Program CalFresh, formerly the Food Stamp Program, under which food stampsnutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. 98 (1)  Existing law requires the State Department of Social Services and the California Health and Human Services Agency Data Center to design, implement, and maintain a statewide fingerprint imaging system for use in connection with the determination of eligibility for benefits under the CalWORKs program, excluding the Aid to Families with Dependent Children-Foster Care program, and the CalFresh Program. Existing law, with specified exceptions, requires applicants for, and recipients of, CalWORKs and CalFresh benefits, as a condition of eligibility, to be fingerprint imaged, pursuant to the statewide fingerprint imaging system. This bill would repeal these provisions relating to fingerprints and would make related conforming changes. (2)  Under existing law, the county is required to annually redetermine eligibility for CalWORKs benefits. Existing law additionally requires the county to implement a recipient monthly reporting system, consistent with federal law until the Director of Social Services makes a specified declaration, at which time the county would be required to redetermine recipient eligibility and grant amounts on a quarterly basis, using prospective budgeting, and to prospectively determine the grant amount that a recipient is entitled to receive for each month of the quarterly reporting period. Under existing law, a CalWORKs recipient is required to report to the county, orally or in writing, specified changes that could affect the amount of aid to which the recipient is entitled. Under existing law, the CalWORKs quarterly reporting system is also implemented by the State Department of Social Services in administering SNAP. This bill would repeal the requirements relating to quarterly reporting and prospective determination grant amounts, and would, instead, impose similar requirements for a semiannual reporting period, operative July 1, 2012, to be implemented no later than January 1, 2013, except as prescribed. The bill would also require the department to establish an income reporting threshold for CalWORKs recipients, as specified. The bill would make various related conforming changes, including revising provisions relating to the collection of CalWORKs grant overpayments and self-sufficiency review requirements. The bill would authorize counties to adopt staggered semiannual reporting requirements, as specified. The bill would authorize the department to implement the semiannual reporting provisions through all-county letters until the adoption of implementing regulations, as prescribed. (3)  This bill would, to the extent permitted by federal law, require the State Department of Social Services, in conjunction with the State 98 — 2 —AB 6 Department of Community Services and Development, to design, implement, and maintain a utility assistance initiative, under which the State Department of Social Services would be required to grant applicants and recipients of CalFresh benefits a nominal Low Income Home Energy Assistance Program (LIHEAP) benefit Home Energy Assistance Program (HEAP) benefit, as specified. (4)  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. (5)  To the extent that the bill would expand eligibility for CalWORKs and CalFresh benefits, the bill would create a state-mandated local program. 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. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 SECTION 1.Chapter 4.6 (commencing with Section 10830) of Part 2 of Division 9 of the Welfare and Institutions Code is repealed. SEC. 2.Section 11004.1 of the Welfare and Institutions Code is repealed. SEC. 3.Section 11004.1 is added to the Welfare and Institutions Code, to read: 11004.1.(a)  In addition to Section 11004, this section shall apply to the CalWORKs program. (b)  The amount of any CalWORKs grant overpayment shall be the difference between the grant amount the assistance unit actually received and the grant amount the assistance unit would have received under the semiannual reporting, prospective budgeting system if no county error had occurred and if the recipient had timely, completely, and accurately reported as required under 98 AB 6— 3 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Sections 11265.1 and 11265.3. No overpayment shall be established based on any differences between the amount of income the county prospectively determined for the recipient for the semiannual reporting period and the income the recipient actually received during that period, provided the recipient’s report was complete and accurate. (c)  No CalWORKs grant underpayment shall be established based on any differences between the amount of income the county prospectively determined for the recipient for the semiannual reporting period and the income the recipient actually received during that period. SEC. 4.Section 11020 of the Welfare and Institutions Code, as amended by Section 26 of Chapter 1022 of the Statutes of 2002, is amended to read: 11020.(a)  Where a recipient under a categorical aid program other than CalWORKs has received aid in good faith but in fact owned excess property, he or she shall be considered to have been ineligible for aid during the period for which any excess property would have supported him or her at the rate of the aid granted to him or her. Under these circumstances, the recipient or his or her estate shall repay the aid he or she received during this period of ineligibility. (b)  With respect to recipients under Chapter 3 (commencing with Section 12000), overpayments shall be collected by the federal government pursuant to federal law. (c)  Where a CalWORKs recipient has received aid in good faith, but in fact owned excess property, the recipient shall have an overpayment equal to the lesser of the amount of the excess property or the aid received during the period the recipient owned the excess property and the grant was not accurately determined under the semiannual reporting, prospective budgeting system due to the excess property. SEC. 5.Section 11265.1 of the Welfare and Institutions Code, as amended by Section 1 of Chapter 826 of the Statutes of 1999, is repealed. SEC. 6.Section 11265.1 of the Welfare and Institutions Code, as added by Section 30 of Chapter 1022 of the Statutes of 2002, is repealed. SEC. 7.Section 11265.1 is added to the Welfare and Institutions Code, to read: 98 — 4 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 11265.1.(a)  In addition to the requirement for an annual redetermination of eligibility, counties shall redetermine recipient eligibility and grant amounts on a semiannual basis in a prospective manner, using reasonably anticipated income consistent with Section 5 of the federal Food Stamp Act (7 U.S.C. Sec. 2014(f)(3)(A)), implementing regulations, and any waivers obtained by the department pursuant to subdivision (g) of Section 11265.2. Counties shall use the information reported on a recipient’s semiannual report form to prospectively determine eligibility and the grant amount for the following semiannual reporting period. (b)  A semiannual reporting period shall be six consecutive calendar months. The recipient shall submit one semiannual report form for each semiannual reporting period. Counties shall provide a semiannual report form to recipients at the end of the fifth month of the semiannual reporting period, and recipients shall return the completed semiannual report form with required verification to the county by the 11th day of the sixth month of the semiannual reporting period. (c)  The semiannual report form shall be signed under penalty of perjury, and shall include only the information necessary to determine CalWORKs and CalFresh eligibility and calculate the CalWORKs grant amount and CalFresh allotment, as specified by the department. The form shall be as comprehensible as possible for recipients and shall require recipients to provide the following: (1)  Information about income received during the fifth month of the semiannual reporting period. (2)  Any other changes to facts required to be reported. The recipient shall provide verification as specified by the department with the semiannual report form. (d)  A semiannual report form shall be considered complete if the following requirements, as specified by the department, are met: (1)  The form is signed no earlier than the first day of the sixth month of the semiannual reporting period by the persons specified by the department. (2)  All questions and items pertaining to CalWORKs and CalFresh eligibility and grant amounts are answered. (3)  Verification required by the department is provided. 98 AB 6— 5 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (e)  If a recipient fails to submit a complete semiannual report form, as described in subdivision (d), by the 11th day of the sixth month of the semiannual reporting period, the county shall provide the recipient with a notice that the county will terminate benefits at the end of the month. Prior to terminating benefits, the county shall attempt to make personal contact to remind the recipient that a completed report is due, or, if contact is not made, shall send a reminder notice to the recipient no later than five days prior to the end of the month. Any discontinuance notice shall be rescinded if a complete report is received by the first working day of the first month of the following semiannual reporting period. (f)  The county may determine, at any time prior to the last day of the calendar month following discontinuance for nonsubmission of a semiannual report form, that a recipient had good cause for failing to submit a complete semiannual report form, as described in subdivision (d), by the first working day of the month following discontinuance. If the county finds a recipient had good cause, as defined by the department, it shall rescind the discontinuance notice. Good cause exists only when the recipient cannot reasonably be expected to fulfill his or her reporting responsibilities due to factors outside of the recipient’s control. (g)  No savings determined by the State Department of Social Services as a result of the act adding this section shall be assumed until actual savings related to the change to semiannual reporting are realized based on data developed in consultation with the California Welfare Directors Association (CWDA). (h)  (1)  The department, in consultation with the CWDA, shall report to the relevant policy and fiscal committees of the Legislature in April 2013 regarding the effects upon the program efficiency of implementation of semiannual reporting requirements set forth in Section 11004.1. The report shall be based on data collected by CWDA and select counties. The department, in consultation with CWDA, shall determine the data collection needs required to assess the effects of the semiannual reporting. (2)  The requirement for submitting a report imposed under this subdivision is inoperative on April 30, 2017, pursuant to Section 10231.5 of the Government Code. (3)  A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. 98 — 6 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (i)  Counties may establish staggered semiannual reporting cycles for individual recipients, based on factors established or approved by the department, including, but not limited to, application date or case number. If a county elects to stagger the reporting periods for individuals, this section shall apply to an individual recipient on the first day of the month assigned to the recipient, but in no event later than July 1, 2012. Up to and until the establishment of a semiannual system, counties shall operate a quarterly system, as established by law and regulation applicable immediately prior to the establishment of the semiannual reporting system. SEC. 8.Section 11265.2 of the Welfare and Institutions Code is repealed. SEC. 8.Section 11265.2 of the Welfare and Institutions Code, as added by Section 32 of Chapter 1022 of the Statutes of 2002, is repealed. 11265.2.(a)  The grant amount a recipient shall be entitled to receive for each month of the quarterly reporting period shall be prospectively determined as provided by this section. If a recipient reports that he or she does not anticipate any changes in income during the upcoming quarter, compared to the income the recipient reported actually receiving on the quarterly report form, the grant shall be calculated using the actual income received. If a recipient reports that he or she anticipates a change in income in one or more months of the upcoming quarter, the county shall determine whether the recipient’s income is reasonably anticipated. The grant shall be calculated using the income that the county determines is reasonably anticipated in each of the three months of the upcoming quarter. (b)  For the purposes of the quarterly reporting, prospective budgeting system, income shall be considered to be “reasonably anticipated” if the county is reasonably certain of the amount of income and that the income will be received during the quarterly reporting period. The county shall determine what income is “reasonably anticipated” based on information provided by the recipient and any other available information. (c)  If a recipient reports that their income in the upcoming quarter will be different each month and the county needs additional information to determine a recipient’s reasonably anticipated income for the following quarter, the county may 98 AB 6— 7 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 require the recipient to provide information about income for each month of the prior quarter. (d)  Grant calculations pursuant to subdivision (a) may not be revised to adjust the grant amount during the quarterly reporting period, except as provided in Section 11265.3 and subdivisions (e), (f), (g), and (h), and as otherwise established by the department. (e)  Notwithstanding subdivision (d), statutes and regulations relating to (1) the 60-month time limit, (2) age limitations for children under Section 11253, and (3) sanctions and financial penalties affecting eligibility or grant amount shall be applicable as provided in such statutes and regulations. Eligibility and grant amount shall be adjusted during the quarterly reporting period pursuant to such statutes and regulations effective with the first monthly grant after timely and adequate notice is provided. (f)  Notwithstanding Section 11056, if an applicant applies for assistance for a child who is currently aided in another assistance unit, and the county determines that the applicant has care and control of the child, as specified by the department, and is otherwise eligible, the county shall discontinue aid to the child in the existing assistance unit and shall aid the child in the applicant’s assistance unit effective as of the first of the month following the discontinuance of the child from the existing assistance unit. (g)  If the county is notified that a child for whom CalWORKs assistance is currently being paid has been placed in a foster care home, the county shall discontinue aid to the child at the end of the month of placement. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. (h)  If the county determines that a recipient is no longer a California resident, pursuant to Section 11100, the recipient shall be discontinued. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. SEC. 9.Section 11265.2 of the Welfare and Institutions Code, as amended by Section 5 of Chapter 8 of the Statutes of 2011, is repealed. 11265.2.(a)  The grant amount a recipient shall be entitled to receive for each month of the quarterly reporting period shall be prospectively determined as provided by this section. If a recipient reports that he or she does not anticipate any changes in income during the upcoming quarter, compared to the income the recipient reported actually receiving on the quarterly report form, the grant 98 — 8 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shall be calculated using the actual income received. If a recipient reports that he or she anticipates a change in income in one or more months of the upcoming quarter, the county shall determine whether the recipient’s income is reasonably anticipated. The grant shall be calculated using the income that the county determines is reasonably anticipated in each of the three months of the upcoming quarter. (b)  For the purposes of the quarterly reporting, prospective budgeting system, income shall be considered to be “reasonably anticipated” if the county is reasonably certain of the amount of income and that the income will be received during the quarterly reporting period. The county shall determine what income is “reasonably anticipated” based on information provided by the recipient and any other available information. (c)  If a recipient reports that their income in the upcoming quarter will be different each month and the county needs additional information to determine a recipient’s reasonably anticipated income for the following quarter, the county may require the recipient to provide information about income for each month of the prior quarter. (d)  Grant calculations pursuant to subdivision (a) may not be revised to adjust the grant amount during the quarterly reporting period, except as provided in Section 11265.3 and subdivisions (e), (f), (g), and (h), and as otherwise established by the department. (e)  Notwithstanding subdivision (d), statutes and regulations relating to (1) the 48-month or 60-month time limit, (2) age limitations for children under Section 11253, and (3) sanctions and financial penalties affecting eligibility or grant amount shall be applicable as provided in those statutes and regulations. Eligibility and grant amount shall be adjusted during the quarterly reporting period pursuant to those statutes and regulations effective with the first monthly grant after timely and adequate notice is provided. (f)  Notwithstanding Section 11056, if an applicant applies for assistance for a child who is currently aided in another assistance unit, and the county determines that the applicant has care and control of the child, as specified by the department, and is otherwise eligible, the county shall discontinue aid to the child in the existing assistance unit and shall aid the child in the applicant’s 98 AB 6— 9 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 assistance unit effective as of the first of the month following the discontinuance of the child from the existing assistance unit. (g)  If the county is notified that a child for whom CalWORKs assistance is currently being paid has been placed in a foster care home, the county shall discontinue aid to the child at the end of the month of placement. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. (h)  If the county determines that a recipient is no longer a California resident, pursuant to Section 11100, the recipient shall be discontinued. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. SEC. 9. SEC. 10.Section 11265.2 is added to the Welfare and Institutions Code, to read: 11265.2.(a)  The grant amount a recipient shall be entitled to receive for each month of the semiannual reporting period shall be prospectively determined, using reasonably anticipated income, and calculated in a manner consistent with Section 5 of the federal Food Stamp Act (7 U.S.C. Sec. 2014(f)(3)(A)), implementing regulations, and any waivers obtained by the department pursuant to subdivision (g). (b)  Grant calculations pursuant to subdivision (a) shall not be revised to adjust the grant amount during the semiannual reporting period, except as provided in Section 11265.3 and subdivisions (c), (d), (e), and (f), and as otherwise established by the department. (c)  Notwithstanding subdivision (b), statutes and regulations relating to the 48-month or 60-month time limit, age limitations for children under Section 11253, and sanctions and financial penalties affecting eligibility or grant amount shall be applicable as provided in those statutes and regulations. Eligibility and grant amount shall be adjusted during the semiannual reporting period pursuant to those statutes and regulations effective with the first monthly grant after timely and adequate notice is provided. (d)  Notwithstanding Section 11056, if an applicant applies for assistance for a child who is currently aided in another assistance unit, and the county determines that the applicant has care and control of the child, as specified by the department, and is otherwise eligible, the county shall discontinue aid to the child in the existing assistance unit and shall aid the child in the applicant’s 98 — 10 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 assistance unit effective as of the first of the month following the discontinuance of the child from the existing assistance unit. (e)  If the county is notified that a child for whom CalWORKs assistance is currently being paid has been placed in a foster care home, the county shall discontinue aid to the child at the end of the month of placement. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. (f)  If the county determines that a recipient is no longer a California resident, pursuant to Section 11100, the recipient shall be discontinued. The county shall discontinue the case if the remaining assistance unit members are not otherwise eligible. (g)  The department shall take all necessary steps to implement this section in the simplest manner possible for both county human services departments and recipients of aid under this chapter, including, but not limited to, exploring the feasibility of accumulating reported changes, acting on changes once per month rather than multiple times, and whether additional flexibility is available under federal food stamp rules to simplify the consideration of reasonably anticipated income when setting grant levels for the upcoming semiannual reporting period. SEC. 10. SEC. 11. Section 11265.3 of the Welfare and Institutions Code is repealed. SEC. 11. SEC. 12.Section 11265.3 is added to the Welfare and Institutions Code, to read: 11265.3.(a)  In addition to submitting the semiannual report form as required in Section 11265.1, the department shall establish an income reporting threshold for recipients of CalWORKs. (b)  The CalWORKs income reporting threshold shall be the lesser of the following: (1)  The amount likely to render the recipient ineligible for federal food stamp nutrition assistance benefits. (2)  The amount likely to render the recipient ineligible for CalWORKs benefits. (c)  A recipient shall report to the county, orally or in writing, within 10 days, when any of the following occurs: (1)  The monthly household income exceeds the threshold established pursuant to this section. (2)  The household address has changed. 98 AB 6— 11 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (3)  A drug felony conviction, as specified in Section 11251.3. (4)  An incidence of an individual fleeing prosecution or custody or confinement, or violating a condition of probation or parole, as specified in Section 11486.5. (d)  At least once per semiannual reporting period, counties shall inform each recipient of all of the following: (1)  The duty to report under this section. (2)  The consequences of failing to report. (3)  The amount of the recipient’s income reporting threshold. (e)  When a recipient reports income exceeding the reporting threshold, the county shall redetermine eligibility and the grant amount as follows: (1)  If the recipient reports the increase in income for the first through fifth months of a current semiannual reporting period, the county shall verify the report and determine the recipient’s financial eligibility and grant amount. (A)  If the recipient is determined to be financially ineligible based on the increase in income, the county shall discontinue the recipient with timely and adequate notice, effective at the end of the month in which the income was received. (B)  If it is determined that the recipient’s grant amount should decrease based on the increase in income, the county shall reduce the recipient’s grant amount for the remainder of the semiannual reporting period with timely and adequate notice, effective the first of the month following the month in which the income was received. (2)  If the recipient reports an increase in income for the sixth month of a current semiannual reporting period, the county shall not redetermine eligibility for the current semiannual reporting period, but shall consider this income in redetermining eligibility and the grant amount for the following semiannual reporting period, as provided in Section 11265.2. (f)  Counties shall act upon changes in income voluntarily reported during the semiannual reporting period that result in an increase in benefits, only after verification specified by the department is received. Reported changes in income that increase the grants shall be effective for the entire month in which the change is reported. If the reported change in income results in an increase in benefits, the county shall issue the increased benefit amount within 10 days of receiving required verification. 98 — 12 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (g)  (1)  When a decrease in gross monthly income is voluntarily reported and verified, the county shall redetermine the grant for the current month and any remaining months in the semiannual reporting period by averaging the actual gross monthly income reported and verified from the voluntary report for the current month and the gross monthly income that is reasonably anticipated for any future month remaining in the semiannual reporting period. (2)  When the average is determined pursuant to paragraph (1), and a grant amount is calculated based upon the averaged income, if the grant amount is higher than the grant currently in effect, the county shall revise the grant for the current month and any remaining months in the semiannual reporting period to the higher amount and shall issue any increased benefit amount as provided in subdivision (f). (h)  During the semiannual reporting period, a recipient may report to the county, orally or in writing, any changes in income and household circumstances that may increase the recipient’s grant. Except as provided in subdivision (i), counties shall act only upon changes in household composition voluntarily reported by the recipients during the semiannual reporting period that result in an increase in benefits, after verification specified by the department is received. If the reported change in household composition is for the first through fifth month of the semiannual reporting period and results in an increase in benefits, the county shall redetermine the grant effective for the month following the month in which the change was reported. If the reported change in household composition is for the sixth month of a semiannual reporting period, the county shall not redetermine the grant for the current semiannual reporting period, but shall redetermine the grant for the following reporting period as provided in Section 11265.2. (i)  During the semiannual reporting period, a recipient may request that the county discontinue the recipient’s entire assistance unit or any individual member of the assistance unit who is no longer in the home or is an optional member of the assistance unit. If the recipient’s request was verbal, the county shall provide a 10-day notice before discontinuing benefits. If the recipient’s report was in writing, the county shall discontinue benefits effective the end of the month in which the request is made, and simultaneously issue a notice informing the recipient of the discontinuance. 98 AB 6— 13 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 SEC. 12.Section 11320.2 of the Welfare and Institutions Code is amended to read: 11320.2.(a)  Commencing July 1, 2011, subject to subdivision (g), the county shall conduct self-sufficiency reviews with all aided caretaker relatives and the adult caretaker or minor parent head-of-household in child-only cases, except for individuals who are exempt from welfare-to-work activities pursuant to Section 11320.3. Reviews shall be conducted every six months, except as otherwise provided in this subdivision. For an assistance unit determined to be eligible under this chapter on or after July 1, 2011, reviews shall be conducted at the end of each semiannual reporting period. The review at the end of the second semiannual reporting period of each year shall be conducted with the annual redetermination, on the same day and in the same location. The notice, scheduling, and accommodation requirements used for the annual redetermination shall be utilized uniformly for the self-sufficiency reviews. For an assistance unit determined to be eligible under this chapter prior to July 1, 2011, reviews shall be conducted starting at the end of each assistance unit’s first semiannual reporting period and with the next regularly scheduled redetermination, and then annually thereafter. (b)  The county shall provide notification to individuals for whom a review has been scheduled, not less than 60 calendar days prior to the appointment, and provide for a process for rescheduling, if necessary, on a date not to exceed 20 calendar days beyond the scheduled review. (c)  Self-sufficiency reviews shall be conducted by a county social worker or employment services worker. (d)  The purposes of the self-sufficiency review are to determine barriers to participation, including those that may establish the basis for an exemption, to assess needed services and resources, and to provide tools to connect the recipient with the needed services and activities in order to increase his or her work or community service participation pursuant to Section 11320. (e)  (1)  If the recipient fails to attend the review, the county shall provide the recipient with a notice that the county shall reduce the recipient’s benefits by 50 percent after 30 calendar days, unless the participant has complied or provided good cause. Prior to reducing benefits by 50 percent, the county shall attempt to make personal contact, consistent with current practice as exercised for 98 — 14 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 the annual redetermination, to remind the recipient that attending the self-sufficiency review is required, or, if contact is not made, shall send a reminder notice to the recipient no later than five days prior to the end of the 30-calendar day period. The county may determine at any time prior to reducing benefits by 50 percent for failure to attend the self-sufficiency review, or after the sanction has been imposed, that a recipient had good cause for failing to attend the self-sufficiency review. A notice regarding a 50-percent reduction in benefits shall be rescinded when the self-sufficiency review is completed. (2)  If the participant is found to not comply with the requirement to attend the self-sufficiency review, the benefits shall be reduced by 50 percent. (3)  The county may determine, at any time prior to the end of the 30-calendar day period following the reduction of benefits by 50 percent for failure to attend the self-sufficiency review, or after the sanction has been imposed, that a recipient had good cause for failing to attend the review. If the county finds a recipient had good cause, it shall rescind the reduction in benefits notice. Good cause exists only when the recipient cannot reasonably be expected to fulfill his or her responsibilities, due to factors beyond the recipient’s control. (f)  Not later than January 1, 2013, the county shall provide the department with an evaluation of the implementation of the self-sufficiency reviews that addresses the effectiveness of the reviews in meeting the goals stated in subdivision (d). Upon receipt of all of the county evaluations, the department shall forward the evaluations to the relevant fiscal and policy committees of the Legislature for review. (g)  An aided adult who is fully meeting the hours of participation required of CalWORKs recipients under applicable state law shall not be subject to self-sufficiency reviews. (h)  A review conducted in accordance with this section that occurs at either the 42nd or 54th month of aid pursuant to Section 11454 shall include all of the components specified in subdivision (a), and shall also include information and a warning to the individual regarding the upcoming consequences of reaching the 48-month or 60-month time limits, depending on the specific circumstances of the case. The review shall occur six months before the applicable time limit. However, if a recipient returns to aided 98 AB 6— 15 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 status when fewer than six months remain before the 60-month time limit, he or she shall receive a review under this section within a reasonable time prior to the 60th month, as determined by the county. (i)  This section shall become operative on July 1, 2011. SEC. 13.Section 11372 of the Welfare and Institutions Code is amended to read: 11372.(a)  Notwithstanding any other provision of law, the state-funded Kinship Guardianship Assistance Payment Program implemented under this article is exempt from the provisions of Chapter 2 (commencing with Section 11200) of Part 3. (b)  Any exemptions exercised pursuant to this section shall be implemented in accordance with Section 11369. SEC. 14.Section 11450 of the Welfare and Institutions Code is amended to read: 11450.(a)  (1)  Aid shall be paid for each needy family, which shall include all eligible brothers and sisters of each eligible applicant or recipient child and the parents of the children, but shall not include unborn children, or recipients of aid under Chapter 3 (commencing with Section 12000), qualified for aid under this chapter. In determining the amount of aid paid, and notwithstanding the minimum basic standards of adequate care specified in Section 11452, the family’s income, exclusive of any amounts considered exempt as income or paid pursuant to subdivision (e) or Section 11453.1, determined for the prospective semiannual period pursuant to Sections 11265.2 and 11265.3, and then calculated pursuant to Section 11451.5, shall be deducted from the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2). In no case shall the amount of aid paid for each month exceed the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2), plus any special needs, as specified in subdivisions (c), (e), and (f): Maximum aid    Number of eligible needy    persons in the same home $  326          1..................................................................................     535          2.................................................................................. 98 — 16 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40     663          3..................................................................................     788          4..................................................................................     899          5..................................................................................   1,010          6..................................................................................   1,109          7..................................................................................   1,209          8..................................................................................   1,306          9..................................................................................   1,403        10 or more.................................................................... If, when, and during those times that the United States government increases or decreases its contributions in assistance of needy children in this state above or below the amount paid on July 1, 1972, the amounts specified in the above table shall be increased or decreased by an amount equal to that increase or decrease by the United States government, provided that no increase or decrease shall be subject to subsequent adjustment pursuant to Section 11453. (2)  The sums specified in paragraph (1) shall not be adjusted for cost of living for the 1990–91, 1991–92, 1992–93, 1993–94, 1994–95, 1995–96, 1996–97, and 1997–98 fiscal years, and through October 31, 1998, nor shall that amount be included in the base for calculating any cost-of-living increases for any fiscal year thereafter. Elimination of the cost-of-living adjustment pursuant to this paragraph shall satisfy the requirements of Section 11453.05, and no further reduction shall be made pursuant to that section. (b)  When the family does not include a needy child qualified for aid under this chapter, aid shall be paid to a pregnant mother for the month in which the birth is anticipated and for the three-month period immediately prior to the month in which the birth is anticipated in the amount that would otherwise be paid to one person, as specified in subdivision (a), if the mother, and child, if born, would have qualified for aid under this chapter. Verification of pregnancy shall be required as a condition of eligibility for aid under this subdivision. Aid shall also be paid to a pregnant woman with no other children in the amount which would otherwise be paid to one person under subdivision (a) at any time after verification of pregnancy if the pregnant woman is also eligible for the Cal-Learn Program described in Article 3.5 (commencing with Section 11331) and if the mother, and child, if born, would have qualified for aid under this chapter. 98 AB 6— 17 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (c)  The amount of forty-seven dollars ($47) per month shall be paid to pregnant mothers qualified for aid under subdivision (a) or (b) to meet special needs resulting from pregnancy if the mother, and child, if born, would have qualified for aid under this chapter. County welfare departments shall refer all recipients of aid under this subdivision to a local provider of the Women, Infants and Children program. If that payment to pregnant mothers qualified for aid under subdivision (a) is considered income under federal law in the first five months of pregnancy, payments under this subdivision shall not apply to persons eligible under subdivision (a), except for the month in which birth is anticipated and for the three-month period immediately prior to the month in which delivery is anticipated, if the mother, and the child, if born, would have qualified for aid under this chapter. (d)  For children receiving AFDC-FC under this chapter, there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month which, when added to the child’s income, is equal to the rate specified in Section 11460, 11461, 11462, 11462.1, or 11463. In addition, the child shall be eligible for special needs, as specified in departmental regulations. (e)  In addition to the amounts payable under subdivision (a) and Section 11453.1, a family shall be entitled to receive an allowance for recurring special needs not common to a majority of recipients. These recurring special needs shall include, but not be limited to, special diets upon the recommendation of a physician for circumstances other than pregnancy, and unusual costs of transportation, laundry, housekeeping services, telephone, and utilities. The recurring special needs allowance for each family per month shall not exceed that amount resulting from multiplying the sum of ten dollars ($10) by the number of recipients in the family who are eligible for assistance. (f)  After a family has used all available liquid resources, both exempt and nonexempt, in excess of one hundred dollars ($100), with the exception of funds deposited in a restricted account described in subdivision (a) of Section 11155.2, the family shall also be entitled to receive an allowance for nonrecurring special needs. (1)  An allowance for nonrecurring special needs shall be granted for replacement of clothing and household equipment and for emergency housing needs other than those needs addressed by 98 — 18 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 paragraph (2). These needs shall be caused by sudden and unusual circumstances beyond the control of the needy family. The department shall establish the allowance for each of the nonrecurring special need items. The sum of all nonrecurring special needs provided by this subdivision shall not exceed six hundred dollars ($600) per event. (2)  Homeless assistance is available to a homeless family seeking shelter when the family is eligible for aid under this chapter. Homeless assistance for temporary shelter is also available to homeless families which are apparently eligible for aid under this chapter. Apparent eligibility exists when evidence presented by the applicant, or which is otherwise available to the county welfare department, and the information provided on the application documents indicate that there would be eligibility for aid under this chapter if the evidence and information were verified. However, an alien applicant who does not provide verification of his or her eligible alien status, or a woman with no eligible children who does not provide medical verification of pregnancy, is not apparently eligible for purposes of this section. A family is considered homeless, for the purpose of this section, when the family lacks a fixed and regular nighttime residence; or the family has a primary nighttime residence that is a supervised publicly or privately operated shelter designed to provide temporary living accommodations; or the family is residing in a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. A family is also considered homeless for the purpose of this section if the family has received a notice to pay rent or quit. The family shall demonstrate that the eviction is the result of a verified financial hardship as a result of extraordinary circumstances beyond their control, and not other lease or rental violations, and that the family is experiencing a financial crisis that could result in homelessness if preventative assistance is not provided. (A)  (i)  A nonrecurring special need of sixty-five dollars ($65) a day shall be available to families of up to four members for the costs of temporary shelter, subject to the requirements of this paragraph. The fifth and additional members of the family shall each receive fifteen dollars ($15) per day, up to a daily maximum of one hundred twenty-five dollars ($125). County welfare departments may increase the daily amount available for temporary 98 AB 6— 19 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 shelter as necessary to secure the additional bedspace needed by the family. (ii)  This special need shall be granted or denied immediately upon the family’s application for homeless assistance, and benefits shall be available for up to three working days. The county welfare department shall verify the family’s homelessness within the first three working days and if the family meets the criteria of questionable homelessness established by the department, the county welfare department shall refer the family to its early fraud prevention and detection unit, if the county has such a unit, for assistance in the verification of homelessness within this period. (iii)  After homelessness has been verified, the three-day limit shall be extended for a period of time which, when added to the initial benefits provided, does not exceed a total of 16 calendar days. This extension of benefits shall be done in increments of one week and shall be based upon searching for permanent housing which shall be documented on a housing search form; good cause; or other circumstances defined by the department. Documentation of a housing search shall be required for the initial extension of benefits beyond the three-day limit and on a weekly basis thereafter as long as the family is receiving temporary shelter benefits. Good cause shall include, but is not limited to, situations in which the county welfare department has determined that the family, to the extent it is capable, has made a good faith but unsuccessful effort to secure permanent housing while receiving temporary shelter benefits. (B)  A nonrecurring special need for permanent housing assistance is available to pay for last month’s rent and security deposits when these payments are reasonable conditions of securing a residence, or to pay for up to two months of rent arrearages, when these payments are a reasonable condition of preventing eviction. The last month’s rent or monthly arrearage portion of the payment (i) shall not exceed 80 percent of the family’s total monthly household income without the value of food stamps or special needs for a family of that size and (ii) shall only be made to families that have found permanent housing costing no more than 80 percent of the family’s total monthly household income without the value of food stamps or special needs for a family of that size. 98 — 20 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 However, if the county welfare department determines that a family intends to reside with individuals who will be sharing housing costs, the county welfare department shall, in appropriate circumstances, set aside the condition specified in clause (ii) of the preceding paragraph. (C)  The nonrecurring special need for permanent housing assistance is also available to cover the standard costs of deposits for utilities which are necessary for the health and safety of the family. (D)  A payment for or denial of permanent housing assistance shall be issued no later than one working day from the time that a family presents evidence of the availability of permanent housing. If an applicant family provides evidence of the availability of permanent housing before the county welfare department has established eligibility for aid under this chapter, the county welfare department shall complete the eligibility determination so that the denial of or payment for permanent housing assistance is issued within one working day from the submission of evidence of the availability of permanent housing, unless the family has failed to provide all of the verification necessary to establish eligibility for aid under this chapter. (E)  (i)  Except as provided in clauses (ii) and (iii), eligibility for the temporary shelter assistance and the permanent housing assistance pursuant to this paragraph shall be limited to one period of up to 16 consecutive calendar days of temporary assistance and one payment of permanent assistance. Any family that includes a parent or nonparent caretaker relative living in the home who has previously received temporary or permanent homeless assistance at any time on behalf of an eligible child shall not be eligible for further homeless assistance. Any person who applies for homeless assistance benefits shall be informed that the temporary shelter benefit of up to 16 consecutive days is available only once in a lifetime, with certain exceptions, and that a break in the consecutive use of the benefit constitutes permanent exhaustion of the temporary benefit. (ii)  A family that becomes homeless as a direct and primary result of a state or federally declared natural disaster shall be eligible for temporary and permanent homeless assistance. (iii)  A family shall be eligible for temporary and permanent homeless assistance when homelessness is a direct result of 98 AB 6— 21 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 domestic violence by a spouse, partner, or roommate; physical or mental illness that is medically verified that shall not include a diagnosis of alcoholism, drug addiction, or psychological stress; or, the uninhabitability of the former residence caused by sudden and unusual circumstances beyond the control of the family including natural catastrophe, fire, or condemnation. These circumstances shall be verified by a third-party governmental or private health and human services agency, except that domestic violence may also be verified by a sworn statement by the victim, as provided under Section 11495.25. Homeless assistance payments based on these specific circumstances may not be received more often than once in any 12-month period. In addition, if the domestic violence is verified by a sworn statement by the victim, the homeless assistance payments shall be limited to two periods of not more than 16 consecutive calendar days of temporary assistance and two payments of permanent assistance. A county may require that a recipient of homeless assistance benefits who qualifies under this paragraph for a second time in a 24-month period participate in a homelessness avoidance case plan as a condition of eligibility for homeless assistance benefits. The county welfare department shall immediately inform recipients who verify domestic violence by a sworn statement pursuant to clause (iii) of the availability of domestic violence counseling and services, and refer those recipients to services upon request. (iv)  If a county requires a recipient who verifies domestic violence by a sworn statement to participate in a homelessness avoidance case plan pursuant to clause (iii), the plan shall include the provision of domestic violence services, if appropriate. (v)  If a recipient seeking homeless assistance based on domestic violence pursuant to clause (iii) has previously received homeless avoidance services based on domestic violence, the county shall review whether services were offered to the recipient and consider what additional services would assist the recipient in leaving the domestic violence situation. (vi)  The county welfare department shall report to the department through a statewide homeless assistance payment indicator system, necessary data, as requested by the department, regarding all recipients of aid under this paragraph. (F)  The county welfare departments, and all other entities participating in the costs of the AFDC program, have the right in 98 — 22 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 their share to any refunds resulting from payment of the permanent housing. However, if an emergency requires the family to move within the 12-month period specified in subparagraph (E), the family shall be allowed to use any refunds received from its deposits to meet the costs of moving to another residence. (G)  Payments to providers for temporary shelter and permanent housing and utilities shall be made on behalf of families requesting these payments. (H)  The daily amount for the temporary shelter special need for homeless assistance may be increased if authorized by the current year’s Budget Act by specifying a different daily allowance and appropriating the funds therefor. (I)  No payment shall be made pursuant to this paragraph unless the provider of housing is a commercial establishment, shelter, or person in the business of renting properties who has a history of renting properties. (g)  The department shall establish rules and regulations ensuring the uniform application statewide of this subdivision. (h)  The department shall notify all applicants and recipients of aid through the standardized application form that these benefits are available and shall provide an opportunity for recipients to apply for the funds quickly and efficiently. (i)  Except for the purposes of Section 15200, the amounts payable to recipients pursuant to Section 11453.1 shall not constitute part of the payment schedule set forth in subdivision (a). The amounts payable to recipients pursuant to Section 11453.1 shall not constitute income to recipients of aid under this section. (j)  For children receiving Kin-GAP pursuant to Article 4.5 (commencing with Section 11360) or Article 4.7 (commencing with Section 11385) there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month, which, when added to the child’s income, is equal to the rate specified in Sections 11364 and 11387. SEC. 14.Section 11450 of the Welfare and Institutions Code is amended to read: 11450.(a)  (1)  Aid shall be paid for each needy family, which shall include all eligible brothers and sisters of each eligible applicant or recipient child and the parents of the children, but shall not include unborn children, or recipients of aid under Chapter 98 AB 6— 23 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 3 (commencing with Section 12000), qualified for aid under this chapter. In determining the amount of aid paid, and notwithstanding the minimum basic standards of adequate care specified in Section 11452, the family’s income, exclusive of any amounts considered exempt as income or paid pursuant to subdivision (e) or Section 11453.1, averaged determined for the prospective quarter semiannual period pursuant to Sections 11265.2 and 11265.3, and then calculated pursuant to Section 11451.5, shall be deducted from the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2). In no case shall the amount of aid paid for each month exceed the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2), plus any special needs, as specified in subdivisions (c), (e), and (f): Maximum aid    Number of eligible needy    persons in the same home $  326          1..................................................................................     535          2..................................................................................     663          3..................................................................................     788          4..................................................................................     899          5..................................................................................   1,010          6..................................................................................   1,109          7..................................................................................   1,209          8..................................................................................   1,306          9..................................................................................   1,403        10 or more.................................................................... If, when, and during those times that the United States government increases or decreases its contributions in assistance of needy children in this state above or below the amount paid on July 1, 1972, the amounts specified in the above table shall be increased or decreased by an amount equal to that increase or decrease by the United States government, provided that no increase or decrease shall be subject to subsequent adjustment pursuant to Section 11453. 98 — 24 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (2)  The sums specified in paragraph (1) shall not be adjusted for cost of living for the 1990–91, 1991–92, 1992–93, 1993–94, 1994–95, 1995–96, 1996–97, and 1997–98 fiscal years, and through October 31, 1998, nor shall that amount be included in the base for calculating any cost-of-living increases for any fiscal year thereafter. Elimination of the cost-of-living adjustment pursuant to this paragraph shall satisfy the requirements of Section 11453.05, and no further reduction shall be made pursuant to that section. (b)  When the family does not include a needy child qualified for aid under this chapter, aid shall be paid to a pregnant mother for the month in which the birth is anticipated and for the three-month period immediately prior to the month in which the birth is anticipated in the amount that would otherwise be paid to one person, as specified in subdivision (a), if the mother, and child, if born, would have qualified for aid under this chapter. Verification of pregnancy shall be required as a condition of eligibility for aid under this subdivision. (1)  Aid shall also be paid to a pregnant woman with no other children in the amount which would otherwise be paid to one person under subdivision (a) at any time after verification of pregnancy if the pregnant woman is also eligible for the Cal-Learn Program described in Article 3.5 (commencing with Section 11331) and if the mother, and child, if born, would have qualified for aid under this chapter. (2)  Paragraph (1) shall apply only when the Cal-Learn Program is operative. (c)  The amount of forty-seven dollars ($47) per month shall be paid to pregnant mothers qualified for aid under subdivision (a) or (b) to meet special needs resulting from pregnancy if the mother, and child, if born, would have qualified for aid under this chapter. County welfare departments shall refer all recipients of aid under this subdivision to a local provider of the Women, Infants and Children program. If that payment to pregnant mothers qualified for aid under subdivision (a) is considered income under federal law in the first five months of pregnancy, payments under this subdivision shall not apply to persons eligible under subdivision (a), except for the month in which birth is anticipated and for the three-month period immediately prior to the month in which delivery is anticipated, if the mother, and the child, if born, would have qualified for aid under this chapter. 98 AB 6— 25 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (d)  For children receiving AFDC-FC under this chapter, there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month which, when added to the child’s income, is equal to the rate specified in Section 11460, 11461, 11462, 11462.1, or 11463. In addition, the child shall be eligible for special needs, as specified in departmental regulations. (e)  In addition to the amounts payable under subdivision (a) and Section 11453.1, a family shall be entitled to receive an allowance for recurring special needs not common to a majority of recipients. These recurring special needs shall include, but not be limited to, special diets upon the recommendation of a physician for circumstances other than pregnancy, and unusual costs of transportation, laundry, housekeeping services, telephone, and utilities. The recurring special needs allowance for each family per month shall not exceed that amount resulting from multiplying the sum of ten dollars ($10) by the number of recipients in the family who are eligible for assistance. (f)  After a family has used all available liquid resources, both exempt and nonexempt, in excess of one hundred dollars ($100), with the exception of funds deposited in a restricted account described in subdivision (a) of Section 11155.2, the family shall also be entitled to receive an allowance for nonrecurring special needs. (1)  An allowance for nonrecurring special needs shall be granted for replacement of clothing and household equipment and for emergency housing needs other than those needs addressed by paragraph (2). These needs shall be caused by sudden and unusual circumstances beyond the control of the needy family. The department shall establish the allowance for each of the nonrecurring special need items. The sum of all nonrecurring special needs provided by this subdivision shall not exceed six hundred dollars ($600) per event. (2)  Homeless assistance is available to a homeless family seeking shelter when the family is eligible for aid under this chapter. Homeless assistance for temporary shelter is also available to homeless families which are apparently eligible for aid under this chapter. Apparent eligibility exists when evidence presented by the applicant, or which is otherwise available to the county welfare department, and the information provided on the application documents indicate that there would be eligibility for 98 — 26 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 aid under this chapter if the evidence and information were verified. However, an alien applicant who does not provide verification of his or her eligible alien status, or a woman with no eligible children who does not provide medical verification of pregnancy, is not apparently eligible for purposes of this section. A family is considered homeless, for the purpose of this section, when the family lacks a fixed and regular nighttime residence; or the family has a primary nighttime residence that is a supervised publicly or privately operated shelter designed to provide temporary living accommodations; or the family is residing in a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. A family is also considered homeless for the purpose of this section if the family has received a notice to pay rent or quit. The family shall demonstrate that the eviction is the result of a verified financial hardship as a result of extraordinary circumstances beyond their control, and not other lease or rental violations, and that the family is experiencing a financial crisis that could result in homelessness if preventative assistance is not provided. (A)  (i)  A nonrecurring special need of sixty-five dollars ($65) a day shall be available to families of up to four members for the costs of temporary shelter, subject to the requirements of this paragraph. The fifth and additional members of the family shall each receive fifteen dollars ($15) per day, up to a daily maximum of one hundred twenty-five dollars ($125). County welfare departments may increase the daily amount available for temporary shelter as necessary to secure the additional bedspace needed by the family. (ii)  This special need shall be granted or denied immediately upon the family’s application for homeless assistance, and benefits shall be available for up to three working days. The county welfare department shall verify the family’s homelessness within the first three working days and if the family meets the criteria of questionable homelessness established by the department, the county welfare department shall refer the family to its early fraud prevention and detection unit, if the county has such a unit, for assistance in the verification of homelessness within this period. (iii)  After homelessness has been verified, the three-day limit shall be extended for a period of time which, when added to the initial benefits provided, does not exceed a total of 16 calendar 98 AB 6— 27 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 days. This extension of benefits shall be done in increments of one week and shall be based upon searching for permanent housing which shall be documented on a housing search form; good cause; or other circumstances defined by the department. Documentation of a housing search shall be required for the initial extension of benefits beyond the three-day limit and on a weekly basis thereafter as long as the family is receiving temporary shelter benefits. Good cause shall include, but is not limited to, situations in which the county welfare department has determined that the family, to the extent it is capable, has made a good faith but unsuccessful effort to secure permanent housing while receiving temporary shelter benefits. (B)  A nonrecurring special need for permanent housing assistance is available to pay for last month’s rent and security deposits when these payments are reasonable conditions of securing a residence, or to pay for up to two months of rent arrearages, when these payments are a reasonable condition of preventing eviction. The last month’s rent or monthly arrearage portion of the payment (i) shall not exceed 80 percent of the family’s total monthly household income without the value of food stamps or special needs for a family of that size and (ii) shall only be made to families that have found permanent housing costing no more than 80 percent of the family’s total monthly household income without the value of food stamps or special needs for a family of that size. However, if the county welfare department determines that a family intends to reside with individuals who will be sharing housing costs, the county welfare department shall, in appropriate circumstances, set aside the condition specified in clause (ii) of the preceding paragraph. (C)  The nonrecurring special need for permanent housing assistance is also available to cover the standard costs of deposits for utilities which are necessary for the health and safety of the family. (D)  A payment for or denial of permanent housing assistance shall be issued no later than one working day from the time that a family presents evidence of the availability of permanent housing. If an applicant family provides evidence of the availability of permanent housing before the county welfare department has established eligibility for aid under this chapter, the county welfare 98 — 28 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 department shall complete the eligibility determination so that the denial of or payment for permanent housing assistance is issued within one working day from the submission of evidence of the availability of permanent housing, unless the family has failed to provide all of the verification necessary to establish eligibility for aid under this chapter. (E)  (i)  Except as provided in clauses (ii) and (iii), eligibility for the temporary shelter assistance and the permanent housing assistance pursuant to this paragraph shall be limited to one period of up to 16 consecutive calendar days of temporary assistance and one payment of permanent assistance. Any family that includes a parent or nonparent caretaker relative living in the home who has previously received temporary or permanent homeless assistance at any time on behalf of an eligible child shall not be eligible for further homeless assistance. Any person who applies for homeless assistance benefits shall be informed that the temporary shelter benefit of up to 16 consecutive days is available only once in a lifetime, with certain exceptions, and that a break in the consecutive use of the benefit constitutes permanent exhaustion of the temporary benefit. (ii)  A family that becomes homeless as a direct and primary result of a state or federally declared natural disaster shall be eligible for temporary and permanent homeless assistance. (iii)  A family shall be eligible for temporary and permanent homeless assistance when homelessness is a direct result of domestic violence by a spouse, partner, or roommate; physical or mental illness that is medically verified that shall not include a diagnosis of alcoholism, drug addiction, or psychological stress; or, the uninhabitability of the former residence caused by sudden and unusual circumstances beyond the control of the family including natural catastrophe, fire, or condemnation. These circumstances shall be verified by a third-party governmental or private health and human services agency, except that domestic violence may also be verified by a sworn statement by the victim, as provided under Section 11495.25. Homeless assistance payments based on these specific circumstances may not be received more often than once in any 12-month period. In addition, if the domestic violence is verified by a sworn statement by the victim, the homeless assistance payments shall be limited to two periods of not more than 16 consecutive calendar days of temporary assistance 98 AB 6— 29 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 and two payments of permanent assistance. A county may require that a recipient of homeless assistance benefits who qualifies under this paragraph for a second time in a 24-month period participate in a homelessness avoidance case plan as a condition of eligibility for homeless assistance benefits. The county welfare department shall immediately inform recipients who verify domestic violence by a sworn statement pursuant to clause (iii) of the availability of domestic violence counseling and services, and refer those recipients to services upon request. (iv)  If a county requires a recipient who verifies domestic violence by a sworn statement to participate in a homelessness avoidance case plan pursuant to clause (iii), the plan shall include the provision of domestic violence services, if appropriate. (v)  If a recipient seeking homeless assistance based on domestic violence pursuant to clause (iii) has previously received homeless avoidance services based on domestic violence, the county shall review whether services were offered to the recipient and consider what additional services would assist the recipient in leaving the domestic violence situation. (vi)  The county welfare department shall report to the department through a statewide homeless assistance payment indicator system, necessary data, as requested by the department, regarding all recipients of aid under this paragraph. (F)  The county welfare departments, and all other entities participating in the costs of the AFDC program, have the right in their share to any refunds resulting from payment of the permanent housing. However, if an emergency requires the family to move within the 12-month period specified in subparagraph (E), the family shall be allowed to use any refunds received from its deposits to meet the costs of moving to another residence. (G)  Payments to providers for temporary shelter and permanent housing and utilities shall be made on behalf of families requesting these payments. (H)  The daily amount for the temporary shelter special need for homeless assistance may be increased if authorized by the current year’s Budget Act by specifying a different daily allowance and appropriating the funds therefor. (I)  No payment shall be made pursuant to this paragraph unless the provider of housing is a commercial establishment, shelter, or 98 — 30 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 person in the business of renting properties who has a history of renting properties. (g)  The department shall establish rules and regulations ensuring the uniform application statewide of this subdivision. (h)  The department shall notify all applicants and recipients of aid through the standardized application form that these benefits are available and shall provide an opportunity for recipients to apply for the funds quickly and efficiently. (i)  Except for the purposes of Section 15200, the amounts payable to recipients pursuant to Section 11453.1 shall not constitute part of the payment schedule set forth in subdivision (a). The amounts payable to recipients pursuant to Section 11453.1 shall not constitute income to recipients of aid under this section. (j)  For children receiving Kin-GAP pursuant to Article 4.5 (commencing with Section 11360) or Article 4.7 (commencing with Section 11385) there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month, which, when added to the child’s income, is equal to the rate specified in Sections 11364 and 11387. SEC. 15.Section 11450.12 of the Welfare and Institutions Code, as amended by Section 39 of Chapter 1022 of the Statutes of 2002, is amended to read: 11450.12.(a)  An applicant family shall not be eligible for aid under this chapter unless the family’s income, exclusive of the first ninety dollars ($90) of earned income for each employed person, is less than the minimum basic standard of adequate care, as specified in Section 11452. (b)  A recipient family shall not be eligible for further aid under this chapter if the monthly income determined for the semiannual period pursuant to Sections 11265.2 and 11265.3, less exempt income and exclusive of amounts exempt under Section 11451.5, equals or exceeds the maximum aid payment specified in Section 11450. SEC. 16.Section 11450.13 of the Welfare and Institutions Code, as amended by Section 40 of Chapter 1022 of the Statutes of 2002, is amended to read: 11450.13.In calculating the amount of aid to which an assistance unit is entitled in accordance with Section 11320.15, the maximum aid payment, adjusted to reflect the removal of the 98 AB 6— 31 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 adult or adults from the assistance unit, shall be reduced by the gross monthly income of the adult or adults removed from the assistance unit, determined for the semiannual period pursuant to Sections 11265.2 and 11265.3, and less any amounts exempted pursuant to Section 11451.5. Aid may be provided in the form of cash or vouchers, at the option of the county. SEC. 17.Section 11451.5 of the Welfare and Institutions Code, as amended by Section 329 of Chapter 62 of the Statutes of 2003, is amended to read: 11451.5.(a)  Except as provided by subdivision (f) of Section 11322.6, the following income, determined for the semiannual period pursuant to Sections 11265.2 and 11265.3, shall be exempt from the calculation of the income of the family for purposes of subdivision (a) of Section 11450: (1)  If disability-based unearned income does not exceed two hundred twenty-five dollars ($225), both of the following amounts: (A)  All disability-based unearned income plus any amount of not otherwise exempt earned income equal to the amount of the difference between the amount of disability-based unearned income and two hundred twenty-five dollars ($225). (B)  Fifty percent of all not otherwise exempt earned income in excess of the amount applied to meet the differential applied in subparagraph (A). (2)  If disability-based unearned income exceeds two hundred twenty-five dollars ($225), both of the following amounts: (A)  All of the first two hundred twenty-five dollars ($225) in disability-based unearned income. (B)  Fifty percent of all earned income. (b)  For purposes of this section: (1)  Earned income means gross income received as wages, salary, employer-provided sick leave benefits, commissions, or profits from activities such as a business enterprise or farming in which the recipient is engaged as a self-employed individual or as an employee. (2)  Disability-based unearned income means state disability insurance benefits, private disability insurance benefits, temporary workers’ compensation benefits, and social security disability benefits. (3)  Unearned income means any income not described in paragraph (1) or (2). 98 — 32 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 SEC. 17.Section 11451.5 of the Welfare and Institutions Code, as amended by Section 24 of Chapter 8 of the Statutes of 2011, is amended to read: 11451.5.(a)  Except as provided by subdivision (f) of Section 11322.6, the following income, averaged determined over the quarter semiannual period pursuant to Sections 11265.2 and 11265.3, shall be exempt from the calculation of the income of the family for purposes of subdivision (a) of Section 11450: (1)  If disability-based unearned income does not exceed two hundred twenty-five dollars ($225), both of the following amounts: (A)  All disability-based unearned income plus any amount of not otherwise exempt earned income equal to the amount of the difference between the amount of disability-based unearned income and two hundred twenty-five dollars ($225). (B)  Fifty percent of all not otherwise exempt earned income in excess of the amount applied to meet the differential applied in subparagraph (A). (2)  If disability-based unearned income exceeds two hundred twenty-five dollars ($225), both of the following amounts: (A)  All of the first two hundred twenty-five dollars ($225) in disability-based unearned income. (B)  Fifty percent of all earned income. (b)  For purposes of this section: (1)  Earned income means gross income received as wages, salary, employer provided employer-provided sick leave benefits, commissions, or profits from activities such as a business enterprise or farming in which the recipient is engaged as a self-employed individual or as an employee. (2)  Disability-based unearned income means state disability insurance benefits, private disability insurance benefits, temporary workers’ compensation benefits, and social security disability benefits. (3)  Unearned income means any income not described in paragraph (1) or (2). (c)  This section shall become inoperative on the first day of the first month following 90 days after the effective date of the act that added this subdivision, or June 1, 2011, whichever is later, and as of the inoperative date is repealed. 98 AB 6— 33 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 SEC. 18.Section 11451.5 of the Welfare and Institutions Code, as added by Section 25 of Chapter 8 of the Statutes of 2011, is amended to read: 11451.5.(a)  Except as provided by subdivision (f) of Section 11322.6, the following income, averaged determined over the quarter semiannual period pursuant to Sections 11265.2 and 11265.3, shall be exempt from the calculation of the income of the family for purposes of subdivision (a) of Section 11450: (1)  If disability-based unearned income does not exceed two hundred twenty-five dollars ($225), both of the following amounts: (A)  All disability-based unearned income, plus any amount of not otherwise exempt earned income not in excess of the lesser of the following: (i)  One hundred twelve dollars ($112). (ii)  The amount of the difference between the amount of disability-based unearned income and two hundred twenty-five dollars ($225). (B)  Fifty percent of all not otherwise exempt earned income in excess of the amount applied to meet the differential applied in subparagraph (A). (2)  If disability-based unearned income exceeds two hundred twenty-five dollars ($225), both of the following amounts: (A)  All of the first two hundred twenty-five dollars ($225) in disability-based unearned income. (B)  Fifty percent of all earned income. (b)  For purposes of this section: (1)  Earned income means gross income received as wages, salary, employer provided employer-provided sick leave benefits, commissions, or profits from activities such as a business enterprise or farming in which the recipient is engaged as a self-employed individual or as an employee. (2)  Disability-based unearned income means state disability insurance benefits, private disability insurance benefits, temporary workers’ compensation benefits, and social security disability benefits. (3)  Unearned income means any income not described in paragraph (1) or (2). (c)  This section shall become operative on the first day of the first month following 90 days after the effective date of the act that added this section, or June 1, 2011, whichever is later. 98 — 34 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 SEC. 18. SEC. 19.Section 18901.2 is added to the Welfare and Institutions Code, to read: 18901.2.The Legislature finds and declares all of the following: (a)  Many California families struggle with high rent and utility costs, straining their household’s financial resources and often limiting resources for food purchases. (b)  A number of other states have taken action to reduce these struggles by implementing a “Heat and Eat” program that alleviates the burden of high energy and shelter costs by maximizing federal nutrition benefits, and consequently reducing paperwork. (c)  It is the intent of the Legislature to create a program in California that provides a nominal Low Income Home Energy Assistance Program (LIHEAP) benefit Home Energy Assistance Program (HEAP) benefit, through the Low-Income Home Energy Assistance Program (LIHEAP) block grant, to all applicants and recipients of the CalFresh Program so that some households may experience an increase in federal nutrition benefits and benefit from paperwork reduction. (d)  To the extent permitted by federal law, the State Department of Social Services shall, in conjunction with the State Department of Community Services and Development, design, implement, and maintain a utility assistance initiative. (e)  In implementing and maintaining the utility assistance initiative, the State Department of Social Services shall do all of the following: (1)  (A)  Grant all applicants and recipients of CalFresh benefits pursuant to this chapter a nominal Low Income Home Energy Assistance Program (LIHEAP) Home Energy Assistance Program (HEAP) benefit out of the federal Low-Income Home Energy Assistance Program block grant (42 U.S.C. 8621 et seq.). (B)  In establishing the LIHEAP HEAP benefit amount, the department shall take into consideration that the benefit level need not provide significant utility assistance. (2)  Provide the LIHEAP HEAP benefit without requiring the applicant or recipient to provide additional paperwork or verification. (3)  To the extent permitted by federal law and to the extent federal funds are available, provide the LIHEAP HEAP benefit annually to each recipient of CalFresh benefits. 98 AB 6— 35 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (4)  Deliver the LIHEAP HEAP benefit using the Electronic Benefit Transfer (EBT) system or other nonpaper delivery system. (5)  Ensure that receipt of LIHEAP HEAP benefits pursuant to this section shall not disqualify the applicant or recipient of CalFresh benefits from receiving other LIHEAP HEAP benefits or other utility benefits for which they qualify. (f)  To the extent permitted by federal law, a CalFresh household receiving or anticipating receipt of LIHEAP HEAP benefits pursuant to the utility assistance initiative or any other law shall be entitled to use the full standard utility allowance (SUA) for the purposes of calculating CalFresh benefits. A CalFresh household shall be entitled to use the full SUA regardless of whether the LIHEAP HEAP benefit is actually redeemed. (g)  The department shall implement the initiative by January 1, 2013. SEC. 19. SEC. 20.Section 18901.4 of the Welfare and Institutions Code is amended to read: 18901.4.(a)  Effective July 1, 2010, the department shall propose a Transitional Food Stamps for Foster Youth demonstration project under which independent foster care adolescents, as defined in Section 1905(w)(1) of the federal Social Security Act (42 U.S.C. Sec. 1396d(w)(1)) who are not eligible for CalWORKs or Supplementary Supplemental Security Income program benefits, shall be eligible without regard to income or resources, subject to federal law authorizing demonstration projects pursuant to Section 2011 and following of Title 7 of the United States Code. (b)  An individual eligible for the program proposed pursuant to this section shall receive the maximum benefit amount allotted for a household size of one for the initial certification period, which shall remain constant for the entirety of the initial certification period. The food stamp case shall be established and maintained in the county of jurisdiction designated by the terminating foster care case. (c)  The demonstration project proposed pursuant to this section shall maximize access to benefits and minimize interim reporting requirements during the certification period. (d)  Not later than March 1, 2010, the department shall seek all necessary federal approvals to implement this section as a 98 — 36 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 demonstration project for these beneficiaries. This section shall be implemented only to the extent that federal financial participation is available. (e)  The department shall implement this section by an all-county letter (ACL) or similar instruction from the director and shall adopt regulations as otherwise necessary to implement this section no later than January 1, 2011. SEC. 20. SEC. 21.Section 18910 of the Welfare and Institutions Code is repealed. SEC. 21. SEC. 22.Section 18910 is added to the Welfare and Institutions Code, to read: 18910.(a)  To the extent permitted by the federal Food Stamp Act, including Section 2015(c) of Title 7 of the United States Code, implementing regulations, and any waivers obtained by the department pursuant to subdivision (g) of Section 11265.2, the department shall implement a prospective budgeting, semiannual reporting system for recipients of CalFresh benefits. (1)  CalFresh households that also receive CalWORKs benefits shall be subject to the CalWORKs semiannual reporting procedures established in Sections 11265.1, 11265.2, and 11265.3. (2)  CalFresh households not receiving CalWORKs shall not be required to report within the semiannual reporting period unless specifically required by federal food stamp law. Otherwise, CalFresh households not receiving CalWORKs shall be subject to semiannual reporting procedures established in Sections 11265.1, 11265.2, and 11265.3, excluding the CalWORKs income reporting threshold and any provisions not permitted under federal food stamp law, regulation, or waivers obtained by the department pursuant to subdivision (g) of Section 11265.2. (b)  For recipients of CalFresh benefits who also are Medi-Cal beneficiaries and who are subject to the Medi-Cal midyear status reporting requirements, counties shall seek to align the timing of reports required under this section with midyear status reports required by the Medi-Cal program. (c)  The requirements of subdivisions (h) and (i) of Section 11265.1 and subdivision (g) of Section 11265.2 shall apply to the implementation of this section. 98 AB 6— 37 — 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 (d)  The department shall seek all necessary waivers from the United States Department of Agriculture to implement this section. (e)  Counties may establish staggered, semiannual reporting cycles for individual recipients, based on factors established or approved by the department, including, but not limited to, application date or case number. If the county elects to stagger the reporting periods for individual recipients, this section shall apply to an individual recipient on the first day of the month assigned to the recipient, but in no event later than July 1, 2012. Up to and until the establishment of the semiannual reporting system, counties shall operate a quarterly system, as established by law and regulation applicable immediately prior to the establishment of the semiannual reporting system. SEC. 22. SEC. 23.(a)  Except for Section 18901.2, the changes made to the Welfare and Institutions Code by this act shall become operative in a county on the date that the county implements the semiannual reporting provisions referred to in those sections. A county may implement the semiannual reporting provisions as early as July 1, 2012, but in no event later than January 1, 2013. (b)  Notwithstanding subdivision (a), if a county elects to stagger the reporting periods for individuals pursuant to subdivision (i) of Section 11265.1 of the Welfare and Institutions Code or subdivision (e) of Section 18910 of the Welfare and Institutions Code, as added by this act, this act shall apply to an individual recipient on the first day of the month assigned to that recipient, but in no event later than July 1, 2013. SEC. 23. SEC. 24.(a)  Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, until emergency regulations are filed with the Secretary of State, the State Department of Social Services may implement the changes made by this act through all-county letters or similar instructions from the director. The department shall adopt emergency regulations, as necessary to implement those changes no later than January 1, 2013. (b)  The adoption of regulations pursuant to subdivision (a) shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety, or general welfare. The emergency regulations authorized by this section shall be 98 — 38 —AB 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 exempt from review by the Office of Administrative Law. The emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State and shall remain in effect for no more than 180 days, by which time final regulations shall be adopted. SEC. 24. SEC. 25.No appropriation pursuant to Section 15200 of the Welfare and Institutions Code shall be made for purposes of this act. SEC. 25. SEC. 26. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. O 98 AB 6— 39 —