BILL ANALYSIS
AB 433
Page 1
ASSEMBLY THIRD READING
AB 433 (Beall)
As Amended June 1, 2007
Majority vote
HUMAN SERVICES 5-2 APPROPRIATIONS 12-5
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|Ayes:|Beall, Davis, DeSaulnier, |Ayes:|Leno, Caballero, Davis, |
| |Krekorian | |DeSaulnier, Huffman, |
| |Richardson | |Karnette, Krekorian, |
| | | |Lieu, Ma, Nava, Solorio, |
| | | |Feuer |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Berryhill, Duvall |Nays:|Walters, Emmerson, la |
| | | |Malfa, Nakanishi, Sharon |
| | | |Runner |
| | | | |
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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 TANF block grant.
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4)Provides that the program shall include only those households
eligible for benefits 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
identify individuals who could benefit from the program of
categorical eligibility.
EXISTING FEDERAL LAW provides that households receiving or
authorized to receive aid or services from a program funded by
TANF or state maintenance of effort 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 : According to the Assembly Appropriations
Committee, administrative costs would be up to $20 million
annually, $7 million of which would be paid by the state and $3
million by counties. Californians could receive almost $200
million in federal food stamp benefits, over $30 million dollars
in additional federal funding for free school lunches and
breakfasts, and several million dollars in increased federal
child welfare services funds. The cost of the TANF-funded
service families for which families would need to be eligible,
such as a brochure that outlines available TANF employment
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services, would be minimal.
In addition to increased federal funding, the state could expect
to receive additional state revenues due to increased sales tax.
By providing these families with food stamps, 45% of the money
previously used by the family to purchase food would now be used
for taxable goods. Based on this assumption, the state could
expect to receive up to $5 million in additional sales tax
revenue.
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, AB 433
"will reduce hunger and improve nutrition for low-income
children by coordinating health care, food stamp and school
meals programs."
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 worst rate in the nation.
Federal law gives states options to improve access to nutrition
assistance. Families authorized to receive any benefit or
service funded by the 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. 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.
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
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Medi-Cal, such as the $2,000 resource limit. The amount of
benefits for which the household would be eligible would depend
on its income. The bill only includes within its scope
households eligible for benefits greater than the minimum food
stamp benefit ($10).
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.
AB 433 also 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. Proponents assert that the continued
identification of it as a "welfare" rather than a "food and
nutrition" program plays a role in its low participation rate.
The Food and Nutrition Service of USDA itself has been
soliciting public comments on a name change since 2004.
Last year, categorical eligibility was contained in AB 2205
(Evans). The bill passed the Legislature and was vetoed by the
Governor.
Analysis Prepared by : Casey McKeever / HUM. S. / (916)
319-2089
FN: 0001125