(a) (1) The department may, subject to the requirements of federal regulations and Section 18204, conduct three pilot projects, to be located in the Counties of Los Angeles, Merced, and Santa Clara, upon approval of the department and the participating counties. The pilot projects shall test the reporting systems described in subparagraphs (A), (B), and (C) of paragraph (4).
(2) (A) The pilot project conducted in Los Angeles County shall test one or both reporting systems described in subparagraphs (A) and (B) of paragraph (4). The pilot project population for each test shall be limited to 10,000 cases.
(B) The pilot projects in the other counties shall test one of the reporting systems described in subparagraph (A) or (C) of paragraph (4) and shall be limited to 2,000 cases per project.
(3) (A) The pilot projects shall be designed and conducted according to standard scientific principles, and shall be in effect for a period of 24 months.
(B) The projects may be extended an additional year upon the approval of the department.
(C) The projects shall be designed to compare the monthly reporting system with alternatives described in paragraph (4) as to all of the following phenomena:
(i) Administrative savings resulting from reduced worker time spent in reviewing monthly reports.
(ii) The amount of cash assistance paid to families.
(iii) The rate of administrative errors in cases and payments.
(iv) The incidence of underpayments and overpayments and the costs to recipients and the administering agencies of making corrective payments and collecting overpayments.
(v) Rates at which recipients lose eligibility for brief periods due to failure to submit a monthly report but file new applications for aid and thereafter are returned to eligible status.
(vi) Cumulative benefits and costs to each level of government and to aid recipients resulting from each reporting system.
(vii) The incidence of, and ability to, prosecute fraud.
(viii) Ease of use by clients.
(ix) Case errors and potential sanction costs associated with those errors.
(4) The pilot projects shall adopt reporting systems providing for one or more of the following:
(A) A reporting system that requires families with no income or whose only income is comprised of old age, survivors, or disability insurance benefits administered pursuant to Subchapter 2 (commencing with Section 401) of Chapter 7 of Title 42 of the United States Code, and with no recent work history to report changes in circumstances that affect eligibility and grant amount as changes occur. These changes shall be reported directly to the county welfare department in person, in writing, or by telephone. In all cases in which monthly reporting is not required, a form advising recipients of what changes must be reported, and how they may be reported shall be provided to recipients of aid along with benefit payments each month.
(B) A reporting system that permits families with no income or whose only income is comprised of old age, survivors, or disability insurance benefits administered pursuant to Subchapter 2 (commencing with Section 401) of Chapter 7 of Title 42 of the United States Code, and with no changes in eligibility criteria, to report electronically monthly, using either an audio response or the CalFresh online issuance and recording system, or a combination of both. Adequate instruction and training shall be provided to county welfare department staff and to recipients who choose to use this system prior to its implementation.
(C) A reporting system that requires all families to report changes in circumstances that affect eligibility and grant amount as changes occur. The changes shall be reported directly to the county welfare department in person, in writing, or by telephone. In all cases in which monthly reporting is not required, a form advising recipients of what changes must be reported, and how they may be reported, shall be provided to recipients of aid along with benefit payments each month.
(b) (1) The participating counties shall be responsible for preparing federal demonstration project proposals, to be submitted by the department, upon the department’s review and approval of the proposals, to the federal agency on the counties’ behalf. The development, operation, and evaluation of the pilot projects shall not result in an increase in the state allocation of county administrative funds.
(1.5) Each pilot county shall prepare and submit quarterly reports, annual reports, and a final report to the department.
(2) Each quarterly report shall be submitted no later than 30 calendar days after the end of the quarter.
(3) Each annual report shall be submitted no later than 45 days after the end of the year.
(4) (A) Each pilot county shall submit a final report not later than 90 days following completion of the pilot projects required by this section.
(B) (i) As part of the final report, the pilot counties shall prepare and submit evaluations of the pilot projects to the department.
(ii) Each evaluation shall include, but not be limited to, an analysis of the factors set forth in paragraph (3) of subdivision (a) compared to each other and the current reporting systems in both the AFDC program and CalFresh. The final evaluations shall be prepared by an independent consultant or consultants contracted with for that purpose prior to the commencement of the projects.
(c) The department may terminate any or all of the pilot projects implemented pursuant to this section after a period of six months of operation if one or more of the pilot counties submits data to the department, or information is otherwise received, indicating that the pilot project or projects are not costeffective or adversely impact recipients or county or state operations based on the factors set forth in subparagraph (C) of paragraph (3) of subdivision (a).
(d) The pilot projects shall be implemented only upon receipt of the appropriate federal waivers.
(Amended by Stats. 2012, Ch. 728, Sec. 194. (SB 71) Effective January 1, 2013.)
Last modified: October 25, 2018