BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1264
                                                                  Page  1

          Date of Hearing:   June 18, 2002

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                 Dion Aroner, Chair
                     SB 1264 (Alpert) - As Amended:  May 23, 2002

           SENATE VOTE  :   30-6
           
          SUBJECT  :   Public assistance grant calculations: Awards and  
          scholarships

           SUMMARY  :   Modifies the way in which California Work Opportunity  
          and Responsibility to Kids (CalWORKs) dependent children's  
          scholarships and awards are treated for purposes of calculating  
          eligibility for program benefits.  Specifically,  this bill  :  

          1)States legislative findings that current law inhibits the  
            educational achievement and future economic self-sufficiency  
            of dependent children in the CalWORKs program.

          2)Exempts from calculations of CalWORKs program eligibility and  
            benefits any award or scholarship granted to or on behalf of a  
            CalWORKs dependent child for the child's academic, scholastic,  
            educational or extracurricular achievement or participation.

          3)Exempts from the CalWORKs work participation requirements  
            dependent children age 16 or 17 who hold a high school diploma  
            or equivalent and are enrolled, or planning to enroll, in a  
            post-secondary education, vocational, or technical training  
            program.

          4)Defines "planning to enroll" as personally submitting, or  
            having a parent submit on the dependent child's behalf, a  
            written statement expressing an intent to enroll in a  
            post-secondary education, vocational, or technical training  
            program for the following term.

          5)Establishes that the bill does not make a continuous  
            appropriation of public assistance funds.

           EXISTING LAW  

          1)Establishes the CalWORKs program which provides cash grants  
            and welfare-to-work services to families whose incomes are not  
            adequate to meet their basic needs. 








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          2)Limits the assets and resources a family may possess and still  
            be eligible for CalWORKs benefits.

          3)Prohibits CalWORKs benefits from being granted to or on behalf  
            of any dependent child that is 18 years of age unless the  
            child is attending high school or the equivalent level of  
            vocational or technical training on a full-time basis and can  
            reasonably be expected to complete the educational or training  
            program before reaching age 19. 

          4)Requires CalWORKs recipients to meet the requirements of a  
            welfare-to-work plan, including weekly work participation  
            requirements and provides exemptions for some CalWORKs  
            recipients, including dependent children under age 16 and  
            dependent children attending school on a full-time basis, from  
            work participation requirements.

          5)Requires CalWORKs dependent children age 16 or 17 and  
            recipients who are custodial parents under age 20 without high  
            school diplomas or its equivalent to perform weekly work  
            participation if not attending school on a full-time basis.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, the prior version of the bill would result in costs  
          of $100,000 in the 2002-03 fiscal year, and costs of $200,000  
          annually thereafter. The bill has been subsequently amended in a  
          manner that the Senate Appropriations Committee noted will  
          reduce the cost of the bill.

           COMMENTS :   

          1)According to the sponsor, Western Center on Law and Poverty,  
            the current treatment of children's scholarships and awards in  
            CalWORKs places limits on the educational achievement of  
            children in families on welfare.  Currently, state or federal  
            scholarships based upon need, as well as income earned from a  
            dependent child's employment, are exempt from consideration in  
            calculating CalWORKs benefits.  However, merit-based awards  
            are counted as income and result in a dollar-for dollar  
            reduction in a family's CalWORKs cash grant.  The author and  
            sponsor argue that exempting scholarships and awards from  
            income calculations will promote academic achievement among  
            children of welfare recipients.









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          2)Currently, CalWORKs dependent children lose eligibility for  
            assistance at age 18, but can receive one additional year of  
            assistance if they are attending high school and expected to  
            graduate before turning 19.  Non-parent CalWORKs dependent  
            children age 16 or 17 who have completed high school are  
            subject to a 32-hour weekly work requirement.  According to  
            the sponsor, this work requirement was designed to apply to  
            high school drop-outs, but has had the unintended consequence  
            of applying to highly motivated students who finish school  
            before age 18, even if they are enrolling or planning to  
            enroll in a post-secondary education program.  This work  
            requirement, the sponsor argues, interferes with CalWORKs  
            dependent children's capability to get an early start on their  
            higher education. 
           
          3)The author intends to offer the following amendment to address  
            concerns that have been raised:

          Page 5, line 4, Section 11320.3(b)(2)(D) would be amended to  
            read:

          (D) For purposes of subparagraph (C), a person shall be deemed  
            to be planning to enroll in a postsecondary education,  
            vocational or technical school training program if he or she,  
            or his or her parent, acting on his or her behalf, submits a  
            written statement expressing his or her intent to enroll in  
            such a program for the following term.   The exemption from  
            participation shall not continue beyond the beginning of the  
            term unless verification of enrollment is provided or obtained  
            by the county, or unless the student does not enroll for good  
            cause.  






















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           REGISTERED SUPPORT / OPPOSITION  :

           Support  
                                                  
          Western Center on Law & Poverty (Sponsor)
          Alpha Youth & Family Resource Center    
          American Academy of Pediatrics               
          American Federation of State, County & Municipal Employees
          Asian Pacific American Legal Center of Southern California
          Boys & Girls Clubs of America
          California Conference of Bishops                  
          California Community Colleges, Chancellor's Office
          California Council for Youth  
          California National Organization for Women        
          California Teachers Association                   
          Caring Council                               
          Center on Policy Initiatives                      
          Children's Advocacy Institute                     
          Children's Defense Fund                           
          Church of Nazarene in Mid-City                    
          County of San Diego Supervisor Ron Roberts
          County Welfare Directors Association                   
          Ecumenical Council of San Diego County            
          First United Methodist Church                     
          Golden Hill Health Careers Academy                 
          Grossmont College                                 
          Home Start                                        
          International Rescue Committee                    
          La Mesa First United Methodist Church              
          Lambda Letters Project, The                        
          Metro United Methodist Urban Ministry             
          Mid-City for Youth                                
          Plymouth Congregational Church                    
          Project New Village                               
          San Diego Association of Nonprofits               
          San Diego State Univ. Graduate Social Action Committee 
          San Diego Unified School District                 
          Springfield College, School of Health & Human Services        
          ST. Dunstan's Episcopal Church                    
          Supportive Parents Information Network            
          Vietnam Veterans of San Diego, Inc.               
          Western University of Health Sciences             
                         
           Opposition









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           None on file.                           

          Analysis Prepared by:    Kirsten Deichert / HUM. S. / (916)  
          319-2247