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AB-1436 CalWORKs: eligibility: income exemptions.(2019-2020)

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Date Published: 05/17/2019 04:00 AM
AB1436:v96#DOCUMENT

Amended  IN  Assembly  May 16, 2019
Amended  IN  Assembly  April 25, 2019
Amended  IN  Assembly  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1436


Introduced by Assembly Member Mark Stone

February 22, 2019


An act to amend Sections 11450.12 and Section 11451.5 of the Welfare and Institutions Code, relating to CalWORKs.


LEGISLATIVE COUNSEL'S DIGEST


AB 1436, as amended, Mark Stone. CalWORKs: eligibility: income exemptions.
Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which, through a combination of state and county funds and federal funds received through the TANF program, each county provides cash assistance and other benefits to qualified low-income families. Existing law continuously appropriates money from the General Fund to pay for a share of aid grant costs under the CalWORKs program. Under existing law, an applicant family is not eligible for aid under the CalWORKs program unless the family’s income, exclusive of the first $90 of earned income for each employed person, is less than the minimum basic standard of care, as specified. Existing law also exempts certain income from the calculation of the family’s income for purposes of determining eligibility for the CalWORKs program, including disability-based unearned income, in accordance with specified provisions, depending upon whether or not that income exceeds $225.
This bill would incrementally increase the above amounts of excluded and exempted income on an annual basis, commencing on January 1, 2020. The bill would declare that no appropriation would be made for purposes of the bill pursuant to the provision continuously appropriating funds for the CalWORKs program. Because the bill would result in an increase in CalWORKs eligibility, thus increasing the duties of counties administering the CalWORKs program program, the bill would impose a state-mandated local program. The bill also would delete an obsolete provisions provision of existing law.
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 the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.Section 11450.12 of the Welfare and Institutions Code is amended to read:
11450.12.

(a)(1)Except as provided in paragraphs (2) to (4), inclusive, 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.

(2)Commencing January 1, 2020, an applicant family shall not be eligible for aid under this chapter unless the family’s income, exclusive of the first five hundred dollars ($500) of earned income for each employed person, is less than the minimum basic standard of adequate care, as specified in Section 11452.

(3)Commencing January 1, 2021, an applicant family shall not be eligible for aid under this chapter unless the family’s income, exclusive of the first five hundred fifty dollars ($550) of earned income for each employed person, is less than the minimum basic standard of adequate care, as specified in Section 11452.

(4)Commencing January 1, 2022, and annually thereafter, an applicant family shall not be eligible for aid under this chapter unless the family’s income, exclusive of the first six hundred dollars ($600) of earned income for each employed person, is less than the minimum basic standard of adequate care, as specified in Section 11452. The amount of excluded income shall be increased on January 1 of each subsequent year by an amount equal to the increase in the California Necessities Index for the most recent fiscal year.

(b)A recipient family shall not be eligible for further aid under this chapter if reasonably anticipated income, less exempt income, determined for the semiannual period pursuant to Sections 11265.1, 11265.2, and 11265.3, and exclusive of amounts exempt under Section 11451.5, equals or exceeds the maximum aid payment specified in Section 11450.

SEC. 2.SECTION 1.

 Section 11451.5 of the Welfare and Institutions Code is amended to read:

11451.5.
 (a) Except as provided in subdivision (c), the following income 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, social security disability benefits, and any veteran’s disability compensation.
(3) Unearned income means any income not described in paragraph (1) or (2).
(c) Each two-hundred-twenty-five-dollar ($225) amount specified in paragraphs (1) and (2) of, and subparagraphs (A) of paragraphs (1) and (2) of, subdivision (a), shall be increased as follows:
(1) Effective January 1, 2020, to five hundred dollars ($500).
(2) Effective January 1, 2021, to five hundred fifty dollars ($550).
(3) Effective January 1, 2022, and annually thereafter, to six hundred dollars ($600). The amount of exempted income shall be increased on January 1 of each subsequent year by an amount equal to the increase in the California Necessities Index for the most recent fiscal year.

SEC. 3.SEC. 2.

 No appropriation pursuant to Section 15200 of the Welfare and Institutions Code shall be made for the purposes of this act.

SEC. 4.SEC. 3.

 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.