BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 433|
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                                 THIRD READING


          Bill No:  AB 433
          Author:   Beall (D), et al
          Amended:  6/1/07 in Assembly
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  3-2, 6/26/07
          AYES:  Alquist, Romero, Yee
          NOES:  Harman, Cogdill

           ASSEMBLY FLOOR  :  47-32, 6/5/07 - See last page for vote


           SUBJECT  :    Food Stamp Program:  categorical eligibility

          SOURCE  :     California Food Policy Advocates


           DIGEST  :    This bill requires the Department of Social  
          Services 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 block grant.

           ANALYSIS  :    

          Existing federal law:

          1. Establishes the food stamp program, administered by  
             state and local agencies to provide federally funded  
             food assistance benefits to eligible households.

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          2. Establishes the Temporary Assistance for Needy Families  
             (TANF) block grant, to distribute federal funds to  
             states to assist low-income families for 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), 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  
             Department of Health Services (after July 1, 2007, the  
             Department of Health Care Services), under which  
             comprehensive health benefits are provided to low-income  
             families, pregnant women, elderly, blind or disabled  
             persons, as well as to recipients of public assistance.

          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.

          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  







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             program by July 1, 2008, reflecting one or more  
             specified concepts including the fact that food stamps  
             are no longer delivered by stamps.

          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 receiving or are eligible to receive specified  
             benefits or services funded by the TANF block grant.   
             This bill does not specify these benefits or services  
             and leaves that determination to DSS.

          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 make  
             reasonable efforts to review existing Medi-Cal cases to  
             identify individuals who could benefit from the program  
             of categorical eligibility.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                         Fiscal Impact (in thousands)

            Major Provisions       2007-08    2008-09     2009-10     Fund  

           Food benefits (costs)         $0        $7,000     
           $7,000General
                                $0       $10,000   $10,000    
           Federal
                                $0       $3,000    $3,000    County
           Mandate costs        undetermined
           Food benefits (new)           $0         







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           $(200,000)$(200,000) Federal
           School lunches (new)          $0         
           $(30,000)$(30,000)   Federal
           Sales tax revenue (new)       $(5,000)  $(5,000)   
           Federal

           SUPPORT  :   (Verified  9/10/07)

          California Food Policy Advocates (source)
          American Federation of State, County and Municipal  
          Employees
          California Catholic Conference
          California Commission on the Status of Women
          Jericho
          Western Center on Law and Poverty

           OPPOSITION  :    (Verified  9/10/07)

          Department of Finance


           ASSEMBLY FLOOR  : 
          AYES:  Arambula, Bass, Beall, Berg, Brownley, Caballero,  
            Charles Calderon, Carter, Coto, Davis, De La Torre, De  
            Leon, DeSaulnier, Dymally, Eng, Evans, Feuer, Fuentes,  
            Galgiani, Hancock, Hayashi, Hernandez, Huffman, Jones,  
            Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu,  
            Ma, Mendoza, Mullin, Nava, Parra, Portantino, Price,  
            Richardson, Ruskin, Salas, Saldana, Solorio, Swanson,  
            Torrico, Wolk, Nunez
          NOES:  Adams, Aghazarian, Anderson, Benoit, Berryhill,  
            Blakeslee, Cook, DeVore, Duvall, Emmerson, Fuller,  
            Gaines, Garcia, Garrick, Horton, Houston, Huff, Jeffries,  
            Keene, La Malfa, Maze, Nakanishi, Niello, Plescia, Sharon  
            Runner, Silva, Smyth, Spitzer, Strickland, Tran,  
            Villines, Walters
          NO VOTE RECORDED:  Soto


          CTW:mw  9/10/07   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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