BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           433 (Beall)
          
          Hearing Date:  8/30/07          Amended: 6/1/07
          Consultant:  John Miller        Policy Vote: Human Svcs 3 - 2
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          ____
          BILL SUMMARY:  AB 433 requires the Department of Social Services  
          to establish categorical eligibility for food stamps to  
          qualified Medi-Cal recipients.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions        2007-08      2008-09       2009-10     Fund
           Food benefits (costs)  $ 0        $ 7,000     $ 7,000   GF
                                 $ 0        $10,000     $10,000   FF
                                 $ 0        $  3,000    $  3,000  Cty
          Mandate costs          undetermined

          Food benefits (new)    $ 0        $(200,000)  $(200,000)FF
          School lunches (new)   $ 0        $(  30,000) $(  30,000)   FF

          Sales tax revenue (new)$ 0        $(     5,000)         $(     
          5,000)                 FF         
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          ____

          STAFF COMMENTS:  SUSPENSE FILE        AS PROPOSED TO BE AMENDED

          This measure seeks to increase access to healthier foods for low  
          income individuals and to maximize federal benefits available to  
          low income families. The bill requires the department to  
          establish categorical eligibility for food stamp benefits for  
          Medi-Cal recipients qualified as TANF beneficiaries and directs  
          the department to convene a group to find a new name for the  
          food stamp program. The state currently has developed  
          categorical food stamp eligibility for individuals qualified for  
          cash assistance. The bill further mandates counties to make  
          reasonable efforts to identify eligible Medi-Cal beneficiaries  
          who would be eligible and benefit from access to better food. 

          Providing categorical eligibility to families receiving Medi-Cal  
          could cost up to $20 million annually for administering  










          additional cases. Of this amount one half would be paid by the  
          federal government with the remaining $10 million split between  
          the state (70%) and county governments (30%). Expansion of the  
          food stamp program would generate nearly $200 million in federal  
          food stamp benefits and would qualify children in these families  
          for $30 million in free school meals which are primarily  
          federally funded. In addition to the federal benefits, the state  
          would realize roughly $5 million in sales tax revenue as  
          provision of food stamps would allow poor families to spend more  
          on taxable products. California has one of the lowest rates of  
          food stamp participation in the nation. More than 2 million  
          California families are eligible for food stamps but do not  
          receive them.

          Amendments reduce state administrative costs and delay  
          implementation by 6 months.