BILL ANALYSIS
AB 433
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Date of Hearing: April 10, 2007
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 433 (Beall) - As Introduced: February 16, 2007
SUBJECT : Food stamps; categorical eligibility; program name
SUMMARY : Requires the Department of Social Services (DSS) to
propose a new name for the Food Stamp program and to establish
categorical eligibility for food stamp benefits for Medi-Cal
recipients who are eligible for services funded by the Temporary
Assistance for Needy Families (TANF) block grant. Specifically,
this bill :
1)Makes legislative findings about the danger of poor nutrition
for children, the underutilization of food programs, the value
of food stamps to local economies, the availability of federal
mechanisms to improve participation, and the need to create a
name for the food stamp program which better promotes its
health and nutrition goals.
2)Requires DSS in consultation with a diverse group of
stakeholders to propose a new name for the Food Stamp Program
by July 1, 2008, reflecting its current realities and function
as a health and nutrition program.
3)Requires DSS to establish a program of categorical eligibility
for food stamp benefits for persons receiving services under
the Medi-Cal program when they are eligible for benefits or
services funded by the Temporary Assistance for Needy Families
block grant.
4)Provides that the program shall include only those households
eligible for benefits equal to or greater than the minimum
federal food stamp benefit.
5)Provides that DSS shall implement the categorical eligibility
program only with appropriate federal authorization without
loss of federal financial participation, shall be established
no later than July 1, 2008, and shall be fully implemented as
to new applicants as of January 1, 2009.
6)Requires that after January 1, 2009, counties to make
reasonable efforts to review existing Medi-Cal cases to
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identify individuals who could benefit from the program of
categorical eligibility.
EXISTING FEDERAL LAW :
1)Establishes the food stamp program, in which food assistance
benefits are provided to eligible households and administered
by state and local agencies.
2)Establishes the Temporary Assistance for Needy Families (TANF)
block grant, in which federal funds are distributed to states
to assist low-income families for one of four specified
purposes, including the care of children in their own homes,
and the end of dependency of needy parents on government
benefits through job preparation, work and marriage.
3)Requires states to contribute designated amounts of funds,
known as Maintenance of Effort (MOE) dollars, as a condition
of receiving their full allocation of federal TANF funds.
4)Provides that households receiving or authorized to receive
aid or services from a program funded by TANF or state MOE
dollars may be determined by states to be categorically
eligible for food stamp benefits.
EXISTING STATE LAW
1)Provides for the Medi-Cal program, administered by the State
Department of Health Services, under which medical benefits
are provided to public assistance recipients and other
low-income persons.
2)Requires the Department of Social Services (DSS) to establish
a program of categorical eligibility for food stamps for
persons receiving county general relief cash aid.
FISCAL EFFECT : Unknown. According to the Senate Appropriations
Committee analysis of last session's AB 2205, the categorical
eligibility program results in an estimated $3.4 million General
Fund in administrative costs in implementing the program.
However, this is offset by an estimated $4.2 million in
additional sales tax revenue due to spending on taxable items
instead of food, based upon the state's receipt of increased
federal food stamp dollars of $188.6 million.
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COMMENTS : This bill seeks to simplify the process and avoid
barriers to participation of low-income families and children in
the federal food stamp program. It also seeks to update the
name of the food stamp program to more accurately reflect its
current function and purpose. According to the author, it "will
reduce hunger and improve nutrition for low-income children by
coordinating health care, food stamp and school meals programs."
Persistence of food insecurity . A 2005 UCLA Center for Health
Policy Research study found that food insecurity affects 38% of
California families with children. School meal and food stamp
programs have been shown to be effective ways of preventing
childhood hunger and improving nutrition, yet California's rate
of participation in these programs is low. Only 46% of eligible
Californians received food stamps in 2004, according to the U.S.
Department of Agriculture, the 49th worst rate in the nation.
Bureaucratic barriers and the rule denying aid to families with
over $2,000 in assets can deny vital nutrition help to families
and children who need it.
The federal "categorical eligibility" option. Federal law gives
states options to improve access to nutrition assistance.
Families authorized to receive any benefit or service funded by
the federal Temporary Assistance for Needy Families (TANF) block
grant can be deemed "categorically eligible" for food stamps and
do not need to make a separate application and meet additional
eligibility or paperwork requirements. While categorical
eligibility based upon receipt of cash aid was long a feature of
federal policy, in 1999 the U.S. Department of Agriculture
issued guidance under the 1996 welfare reform law and expanded
the scope of the option to include receipt or eligibility for
services as well as cash. 7 C.F.R. 273.2(j)(2). Once eligible
for food stamps, the federal Child Nutrition and WIC
Reauthorization Act of 2004 provides that children are
automatically certified to receive free school meals. 42 U.S.C.
1758(b)(2)(C)(i).
The bill envisions that Medi-Cal families currently not
receiving food stamps would be given access to a TANF-funded
service (such as a brochure describing available job services).
This would trigger categorical eligibility for food stamps,
without the need to make a new application or meet certain
eligibility conditions which are applied to food stamps but not
Medi-Cal, such as the $2,000 resource limit. The amount of
benefits for which the household would be eligible would depend
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on its income, however. The bill only includes within its scope
households eligible for benefits equal or greater than the
minimum food stamp benefit ($10). Thus, families who may
qualify for Medi-Cal but have incomes higher than the food stamp
eligibility threshold (130% of poverty) would not become
categorically eligible for food stamps under the bill.
Over 40 states have used the categorical eligibility option in
some manner. The method proposed in this bill is similar to
that adopted in Michigan, which makes any Medicaid case
containing a child or pregnant woman eligible for Employment
Support Services. Since ESS is supported with TANF and state
Maintenance of Effort (MOE) funds, the families are
categorically eligible for food stamps. The State of Washington
uses a similar approach. Pennsylvania links food stamps to
TANF-funded child care.
Phase-in of categorical eligibility. The categorical
eligibility provision of AB 433 takes effect on July 1, 2008,
with implementation to cover all new applicants by January 1,
2009. Thereafter, counties are required to make "reasonable
efforts" to review existing Medi-Cal cases to identify
individuals who could benefit from categorical eligibility.
Proposed repeal of federal categorical eligibility option. In
its past three budget proposals, the Bush Administration has
sought to eliminate the use of categorical eligibility. The
proposal has been repeatedly rejected. The House of
Representatives version of the Deficit Reduction Act of 2005 at
one time also contained the repeal, but that was dropped in
negotiations and was not part of the final bill. While the
President has renewed the proposal in his fiscal year 2008
budget, there are few indications that it will face a different
fate this year.
Food stamp name change. AB 433 requires DSS to rename the Food
Stamp Program in consultation with a stakeholder group. As
stated in the bill's legislative findings, the program has
evolved significantly over the past several decades. Benefits
have not been provided as "stamps" since the 1940s, and now are
delivered through electronic transfer. There is increasing
interest in using the program to promote healthier food
purchases to reduce the incidence of obesity. Proponents assert
that the continued identification of it as a "welfare" rather
than a "food and nutrition" program plays a role in its low
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participation rate.
The Food and Nutrition Service (FNS) of USDA itself has been
soliciting public comments on a name change since 2004. As USDA
noted in its Farm Bill proposal, "While there is no consensus on
a new name, the vast majority of the comments supported a name
change with certain words commonly included in the suggestions -
food and nutrition." AB 433 supporters include "health" as
another key element. While the matter is being considered at
the national level, states are able to name their programs in
state law (as California does with CalWORKs), and this may
assist the determination ultimately made by USDA.
Prior legislation. The categorical eligibility option was first
contained in the original version of AB 696 (Chu), and passed
the Assembly with that provision. That issue was deleted in the
Senate Appropriations Committee, and the bill, in final form
containing only a repeal of the fingerimaging requirement, was
vetoed by the Governor.
Last year, categorical eligibility was contained in AB 2205
(Evans). The bill passed the Legislature and was vetoed by the
Governor. The veto message stated, "While I support efforts to
increase participation in the Food Stamps program through
improved outreach efforts and more streamlined administrative
requirements ? [AB 2205] would expand eligibility for food
stamps increasing state costs by tens of millions of dollars."
REGISTERED SUPPORT / OPPOSITION :
Support
California Food Policy Advocates (sponsor)
Alameda County Community Food Bank
American Federation of State, County and Municipal Employees
C.U.R.A., Inc.
California Association of food Banks
California Commission on the Status of Women
California Hunger Action Coalition
California/Nevada Community Action Partnership
Coalition of California Welfare Rights Organizations (CCWRO)
Food Bank of Contra Costa and Solano County
Hunger Action Los Angeles
Imperial Valley Food Bank
Interfaith Food Council of Amador County
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JERICHO, A Voice for Justice
Plowshares Peace & Justice Center
San Francisco Board of Supervisors Food Security Task Force
San Francisco Food Bank
Second Harvest Food Bank of Santa Cruz and San Benito Counties
St. Anthony Foundation
St. Joseph's Family Center
Transitional Food and Shelter, Inc.
Western Center on Law and Poverty
4 individuals
Opposition
None on file.
Analysis Prepared by : Casey McKeever / HUM. S. / (916)
319-2089