California Assembly Bill AB1809 Amended / Bill

 BILL NUMBER: AB 1809AMENDED BILL TEXT AMENDED IN SENATE JUNE 15, 2016 AMENDED IN ASSEMBLY APRIL 6, 2016 AMENDED IN ASSEMBLY MARCH 28, 2016 INTRODUCED BY Assembly Member Lopez (Coauthors: Assembly Members  Gipson   Cristina Garcia,   Gipson,  and Mullin) (Coauthors: Senators Hertzberg and Mitchell) FEBRUARY 8, 2016 An act to amend Section 95504 of the Government Code, and to amend Sections 11151, 11322.5, 11375, 11450, 11450.5, 14140, and 18923 of, and to repeal Sections 11155, 11155.1, 11155.2, 11155.6, 11157.5, 11257, 11257.5, and 11260 of, the Welfare and Institutions Code, relating to CalWORKs. LEGISLATIVE COUNSEL'S DIGEST AB 1809, as amended, Lopez. CalWORKs eligibility: asset limits. Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states, with California's version of this program being known as the California Work Opportunity and Responsibility to Kids (CalWORKs) program. Under the CalWORKs program, each county provides cash assistance and other benefits to qualified low-income families and individuals who meet specified eligibility criteria, including limitations on income and assets generally applicable to public assistance programs. Existing law continuously appropriates money from the General Fund to pay for a share of aid grant costs under the CalWORKs program. This bill would repeal those limitations on assets with regard to eligibility for CalWORKs, thereby eliminating the consideration of an individual's or family's assets as a condition of eligibility for CalWORKs. The bill would also make conforming changes. By increasing the duties of counties administering the CalWORKs program, the bill would impose a state-mandated local program. 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. 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: SECTION 1. The Legislature finds and declares all of the following: (a) In 1996, the United States Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), known as welfare reform, which created the Temporary Assistance to Needy Families (TANF) program. TANF gives states power to design their own programs, including establishing asset limits. The California Work Opportunity and Responsibility to Kids (CalWORKs) program is California's program that implements federal welfare reform provisions. (b) In California, to qualify for public assistance under CalWORKs, impoverished families must demonstrate that they are both income- and  asset- poor.   asset-poor.  Under current law, a low-income family will not qualify for assistance if the family has savings or other assets, excluding a home and a vehicle of a specific value, exceeding the asset limit of $2,000. The asset test has been removed for both CalFresh and Medi-Cal. (c) Research published in 2015 shows that very few families (0.1 percent) applying for or receiving CalWORKs assistance are found to exceed the vehicle and cash asset test. (d) Other states, realizing that very few families had assets over the limit, have removed the limit with the goal of streamlining the eligibility process and cutting down on administrative costs. In Virginia, this decision has saved the state an estimated $400,000 annually, and to date, the State of Virginia has reported no negative impacts. A study published in 2015 has estimated that if California were to repeal the CalWORKs asset limit, there would be minimal to no increase in caseloads and an annual $6.4 million in administrative savings allowing county case workers to spend less time reviewing the value of vehicles and savings and more time helping people get the resources they need to get back to work. (e) Asset limits were intended to ensure that public assistance programs provide benefits only to those with too few resources to support themselves. But years of research and practitioner experience has proven that personal savings and assets are precisely the kinds of resources that allow people to move off public benefits programs. Without being able to maintain or build up a small savings cushion, these families are highly vulnerable to falling into debt in the event of an emergency or other unexpected expense. (f) It is the intent of the Legislature to repeal the asset test for the CalWORKs program, thereby aligning program rules with Medi-Cal and CalFresh, making the program more efficient, and increasing the capacity of poor families to exit poverty. SEC. 2. Section 95504 of the Government Code is amended to read: 95504. (a) The nonprofit facilitator shall subcontract with service providers to implement the project around the state. The nonprofit facilitator shall make an attempt to select service providers for programs of different size, geographical distribution, and target population to be served. Additionally, the nonprofit facilitator may consider giving special consideration to service providers that demonstrate partnerships with local public agencies. (b) The service providers shall perform all of the following duties in implementing the project: (1) Recruit and select participants who meet the following criteria: (A) The individual is at least 18 years of age. (B) The individual is a member of a household with an income of not more than 80 percent of the area median income based on United States Department of Housing and Urban Development guidelines at the time of program enrollment. (C) The individual is not a dependent of another person for federal income tax purposes. (D) The individual is not a debtor for a judgment resulting from nonpayment of a court-ordered child support obligation. (E) The individual meets eligibility criteria as defined by the funding source for the program created under this title. (2) Develop and sign contracts with each participant, to include all program requirements and policies governing the participant's account. (3) Assist participants in opening individual development accounts. The accounts shall be established using an account structure parallel to a restricted account as described in former Section 11155.2 of the Welfare and Institutions Code that meets both of the following requirements: (A) One separate account shall be established for each participant in a federally or state insured financial institution, community development financial institution, any financial institution eligible to hold an individual retirement account, or community development credit union, in which each participant's savings are deposited and maintained. The program participant may withdraw his or her own savings at any time. (B) Another separate, parallel account shall be established and maintained by service providers in which the matching funds from state, federal, and private donations are kept. The parallel account may contain all matching funds for a pool of any service provider's participants. (4) Help individuals receive their matching funds at the conclusion of the program. (5) Provide participants with a minimum of 12 hours of financial education and training. The education and training shall include, but need not be limited to, all of the following: (A) Household and personal budget management. (B) Economic literacy. (C) Credit repair. (6) Develop a program dismissal process for participants who do not fulfill program participation requirements, and seek to ensure that matching funds are used for their intended purposes. (7) Collect and maintain information about their programs, in a manner that provides the capacity to report semiannually all of the following information to the department: (A) The number and demographic characteristics of participants enrolled in the program. (B) The number of accounts established. (C) The individual and aggregate savings level of participants. (D) The number of participants who closed accounts and the amount of associated savings. (E) The actual and proposed program budget. (F) The size and origin of matching pool funds received, obligated, and paid to participants. (G) The program achievements and obstacles. (H) Twelve-month program and financial projections. (I) At least one participant profile. SEC. 3. Section 11151 of the Welfare and Institutions Code is amended to read: 11151. An applicant or recipient shall be ineligible to receive public assistance unless the property he or she owns is held for the following purposes: (a) The property is used to provide the applicant or recipient with a home and conforms to the provisions of Section 11152. (b) The property is producing income for the support of the applicant or recipient and conforms to the provisions of Section 11153.7. (c) The property is held as a reserve to meet a contingent need, not included within the standard of assistance for which an aid payment is made, and conforms to the provisions of Section 11154. (d) The property is personal in nature, or meets a special need of the applicant or recipient, or is part of a self-care or rehabilitation plan, or is not available for expenditure or disposition by the applicant or recipient. SEC. 4. Section 11155 of the Welfare and Institutions Code is repealed. SEC. 5. Section 11155.1 of the Welfare and Institutions Code is repealed. SEC. 6. Section 11155.2 of the Welfare and Institutions Code is repealed. SEC. 7. Section 11155.6 of the Welfare and Institutions Code is repealed. SEC. 8. Section 11157.5 of the Welfare and Institutions Code is repealed. SEC. 9. Section 11257 of the Welfare and Institutions Code is repealed. SEC. 10. Section 11257.5 of the Welfare and Institutions Code is repealed. SEC. 11. Section 11260 of the Welfare and Institutions Code is repealed. SEC. 12. Section 11322.5 of the Welfare and Institutions Code is amended to read: 11322.5. (a) It is the intent of the Legislature to do each of the following: (1) Maximize the ability of CalWORKs recipients to benefit from the federal Earned Income Tax Credit (EITC), including retroactive EITC credits and the Advance EITC, take advantage of the earned-income disregard to increase their CalFresh Program benefits, and accumulate credit toward future social security income. (2) Educate and empower all CalWORKs participants who receive the federal EITC to save or invest part or all of their credits in instruments such as individual development accounts, 401(k) plans, 403(b) plans, IRAs, 457 plans, Coverdell ESA plans, or 529 plans, and to take advantage of the federal Assets for Independence program and other matching funds, tools, and training available from public or private sources, in order to build their assets. (b) It is the intent of the Legislature that counties encourage CalWORKs recipients to participate in activities that will maximize their receipt of the EITC. To this end, counties may do all of the following: (1) Structure welfare-to-work activities pursuant to subdivisions (a) to (j), inclusive, of Section 11322.6 to give recipients the option of maximizing the portion of their CalWORKs benefits that meets the definition of "earned income" in Section 32(c)(2) of the Internal Revenue Code. (2) Inform CalWORKs recipients of each of the following: (A) That earned income, either previous or future, may make them eligible for the federal EITC, including retroactive EITC credits and the Advance EITC, increase their CalFresh Program benefits, and accumulate credit toward future social security income. (B) That recipients, as part of their welfare-to-work plans, have the option of engaging in subsidized employment and grant-based on-the-job training, as specified in Section 11322.6, and that participating in these activities will increase their earned income to the extent that they meet the requirements of federal law. (C) That receipt of the federal EITC does not affect their CalWORKs grant and is additional tax-free income for them. (D) That a CalWORKs recipient who receives the federal EITC may invest these funds in an individual development account, 401(k) plan, 403(b) plan, IRA, 457 plan, 529 college savings plan, or Coverdell ESA, and that investments in these accounts will not make the recipient ineligible for CalWORKs benefits or reduce the recipient's CalWORKs benefits. (3) At each regular eligibility redetermination, the county shall ask a recipient whether the recipient is eligible for and takes advantage of the EITC. If the recipient may be eligible and does not participate, the county shall give the recipient the federal EITC form and encourage and assist the recipient to take advantage of it. SEC. 13. Section 11375 of the Welfare and Institutions Code is amended to read: 11375. The following shall apply to any child or nonminor in receipt of state-funded Kin-GAP benefits: (a) He or she is eligible to request and receive independent living services pursuant to Section 10609.3. (b) He or she may retain cash savings, not to exceed ten thousand dollars ($10,000), including interest, in addition to any other property accumulated pursuant to former Section 11257 or Section 11257.5. (c) He or she shall have earned income disregarded pursuant to Section 11008.15. SEC. 14. Section 11450 of the Welfare and Institutions Code, as added by Section 4 of Chapter 632 of the Statutes of 2014, is amended to read: 11450. (a) (1) (A) 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 11265.1, 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): Number of eligible needy persons in Maximum the same home aid 1.............................. $ 326 2.............................. 535 3.............................. 663 4.............................. 788 5.............................. 899 6.............................. 1,010 7.............................. 1,109 8.............................. 1,209 9.............................. 1,306 10 or more...................... 1,403 (B) 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 former Section 11453.05, and no further reduction shall be made pursuant to that section. (b) (1) When the family does not include a needy child qualified for aid under this chapter, aid shall be paid to a pregnant child who is 18 years of age or younger at any time after verification of pregnancy, in the amount that would otherwise be paid to one person, as specified in subdivision (a), if the child and her 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. (2) Notwithstanding paragraph (1), when the family does not include a needy child qualified for aid under this chapter, aid shall be paid to a pregnant woman for the month in which the birth is anticipated and for the six-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 woman 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. (3) 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 women qualified for aid under subdivision (a) or (b) to meet special needs resulting from pregnancy if the woman 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 women 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 woman and 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 that, 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), 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 needs items. The sum of all nonrecurring special needs provided by this subdivision shall not exceed six hundred dollars ($600) per event. (2) (A) 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 that are apparently eligible for aid under this chapter. Apparent eligibility exists when evidence presented by the applicant, or that 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. (B) 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. (C) (i) A nonrecurring special needs benefit 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 needs benefit 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,   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. (D) (i) A nonrecurring special needs benefit 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. (ii) 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 CalFresh benefits or special needs benefit 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 CalFresh benefits or special needs benefit for a family of that size. (iii) 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 subclause (II) of clause (ii). (E) The nonrecurring special needs benefit for permanent housing assistance is also available to cover the standard costs of deposits for utilities that are necessary for the health and safety of the family. (F) 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. (G) (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 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 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 necessary data to the department through a statewide homeless assistance payment indicator system, as requested by the department, regarding all recipients of aid under this paragraph. (H) The county welfare departments, and all other entities participating in the costs of the CalWORKs 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 (G), the family shall be allowed to use any refunds received from its deposits to meet the costs of moving to another residence. (I) Payments to providers for temporary shelter and permanent housing and utilities shall be made on behalf of families requesting these payments. (J) The daily amount for the temporary shelter special needs benefit 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. (K) 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 statewide application of this section. (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) (1) 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). (2) 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. (k) (1) A county shall implement the semiannual reporting requirements in accordance with Chapter 501 of the Statutes of 2011. (2) Upon completion of the implementation described in paragraph (1), each county shall provide a certificate to the director certifying that semiannual reporting has been implemented in the county. (3) Upon filing the certificate described in paragraph (2), a county shall comply with the semiannual reporting provisions of this section. SEC. 15. Section 11450.5 of the Welfare and Institutions Code is amended to read: 11450.5. For purposes of computing and paying aid grants under this chapter, the director shall adopt regulations establishing a budgeting system consistent with Sections 11265.1, 11265.2, and 11265.3. This section, Sections 11004 and 11450, or any other provision of this code, shall not be interpreted to prohibit the establishment of, or otherwise  restricting   restrict  the operation of, any budgeting system adopted by the director. SEC. 16. Section 14140 of the Welfare and Institutions Code is amended to read: 14140. The following definitions shall apply to the provisions of this article: (a) "Net worth" means: (1) Personal property, which consists of cash, savings accounts, securities, and similar items; notes, mortgages, and deeds of trust; the cash surrender value of life insurance on the life of the applicant or beneficiary, on the life of the spouse or any member of the family, except as provided in Section 11158; motor vehicles, except one that meets the transportation needs of the person or family; and any other property or equity other than real estate. (2) Real property, including any interest in land of more than nominal interest that does not constitute the home of the applicant for aid under this chapter. The home of the applicant shall be exempt from consideration as net worth under this section to the extent of ten thousand dollars ($10,000) in assessed valuation, as assessed by the county assessor. (3) "Income" that consists of the sum of adjusted gross income as used for purposes of the Federal Income Tax Law. (b) "Family unit" means: (1) In the case of an unmarried patient under 21 years of age living with his  or her  parent or parents, the patient and his  or her  parents. (2) In the case of a married patient under 21 years of age, the patient and his  or her  spouse. (3) In the case of a patient over  21,  21 years of age,  the patient, and if married,  the patient' s wife.   his or her spouse.  SEC. 17. Section 18923 of the Welfare and Institutions Code is amended to read: 18923. (a) The State Department of Social Services shall submit a request to the United States Department of Agriculture for a waiver to permit a CalFresh household to retain funds in the restricted savings account as specified in subdivision (a) of former Section 11155.2 and as accumulated while participating in the Aid to Families with Dependent Children program. The participation requirements for this specific savings account as specified in subdivision (a) of former Section 11155.2 shall apply to CalFresh. Penalties for nonqualifying withdrawal of these funds shall result in a calculation of a period of ineligibility for all persons in the CalFresh household, to be determined by dividing the balance in the account immediately prior to the withdrawal by the CalFresh allotment to which the household is entitled. The resulting whole number shall be the number of months of ineligibility. The period of ineligibility may be reduced when the divisor, which is the CalFresh allotment, increases as a result of a cost-of-living adjustment. (b) The director may waive, with federal approval, the enforcement of specific federal Supplemental Nutrition Assistance Program requirements, regulations, and standards necessary to implement this provision. SEC. 18. No appropriation pursuant to Section 15200 of Welfare and Institutions Code shall be made for the purposes of this act. SEC. 19. 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.