BILL ANALYSIS                                                                                                                                                                                                    






                                   SENATE  HUMAN
                               SERVICES COMMITTEE
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 508                                       
          A
          AUTHOR:        Swanson                                      
          B
          VERSION:        March 29, 2007  
          HEARING DATE:   June 26, 2007                                 
          5
          FISCAL:         Appropriations                                
          0
                                                                      
          8
          CONSULTANT:       
          Flores            
                                        

                                         
                                      SUBJECT
                                         
                     Food stamps: eligibility: drug felons


                                     SUMMARY  

          Repeals the lifetime disqualification from food stamps for  
          persons convicted of  specified felonies   a felony  involving  
          controlled substances.
           
           
                                     ABSTRACT  

           Current federal law
             1)   Prohibits recipients of food stamps or benefits funded  
            by Temporary Assistance for Needy Families (TANF) funds  
            from qualifying for benefits if they have been convicted  
            of a felony crime involving controlled substances, but  
            allows states to opt out of the disqualification in whole  
            or part  .   ;
             
            
           Current state law
           1)Provides that persons convicted of drug felonies are  
                                                         Continued---



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            eligible to receive food stamps subject to specified  
            limitations.  
            
           
          2)Excludes from eligibility persons convicted of unlawfully  
            transporting, importing, selling, furnishing,  
            administering, giving away, possessing for sale,  
            manufacturing a controlled substance, possessing  
            precursors with intent to sell, or cultivating,  
            harvesting or processing marijuana, or who have been  
            convicted of soliciting, inducing, encouraging or  
            intimidating a minor to participate in any such crimes.  
            
           
          3)Requires as a condition of eligibility for food stamps  
            that applicants convicted of a drug felony prove  
            completion, participation in, enrollment in, or placement  
            on a waiting list for a government-recognized drug  
            treatment program, or provide other evidence that illegal  
            use of controlled substances has ceased.

           

                                   FISCAL IMPACT  

          According to the Assembly Appropriations Committee  , this  
          bill will generate   analysis: 

          1) U   u  p to $1 million in additional federal food stamps  
          benefits to the extent additional individuals receive food  
          stamps, with associated increases in local tax revenues to  
          the extent that new food stamp recipients spend funds on  
          taxable goods, and unknown savings, to the extent federal  
          food assistance reduces the need for other kinds of public  
          benefits.  

             The bill also generates   2) M   m  inor absorbable workload to  
          local welfare departments to process additional food stamps  
          applications or adjust existing family food stamps  
          benefits.    
            
           

                            BACKGROUND AND DISCUSSION  





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          This bill entirely opts California out of the lifetime ban  
          on food stamp benefits for persons convicted of  
          drug-related felonies.  It extends the partial restoration  
          of benefits contained in AB 1796 (Leno), Chapter 932,  
          Statutes of 2004, which applied only to convictions related  
          to use or possession, and required  proof   satisfaction  of  
           participation in  a  condition related to  drug treatment  
           program  or  other evidence of  cessation of  illegal drug  use.   
            

           Historical background
           .    The lifetime ban on food stamps and TANF-funded benefits  
          for persons with felony drug convictions was included in  
          the 1996 federal welfare reform bill  :   , as  Section 115 of  
          the Personal Responsibility and Work Opportunity  
          Reconciliation Act.  There is little legislative history  
          explaining the provision, since it was first raised in a  
          floor amendment and not the subject of committee hearings.    
           

          The federal provision gives states the ability to opt out  
          of the disqualification.  California declined to include  
          any opt-out provision when it implemented welfare reform in  
          1997.   According to a 2005 report by the General Accounting  
          Office (GAO), 15 states fully implemented the federal ban  
          on food stamp benefits to convicted drug felons, and 35  
          states had laws modifying the federal ban on food stamps.   
          Of the 35 states with exemptions, 14 states exempted all  
          convicted drug felons from the food stamp ban, and 21 have  
          laws that exempt some convicted drug felons from the food  
          stamp ban provided they meet certain conditions.   According  
          to a 2005 report of the Sentencing Project, 11 states plus  
          the District of Columbia have entirely opted out of the  
          TANF ban, including Michigan, New York, Ohio, Oklahoma and  
          Oregon.  An additional 14 states have partially opted out  
          of the ban on TANF-funded benefits, either by limiting the  
          ban to certain offenses (such as sale or trafficking) or  
          establishing qualifying conditions which relate to  
          participation in or completion of drug treatment programs.  
           
          The GAO report also notes that proportionally more female  
          drug felons than males are affected by the ban.  The GAO  
          calculates that about 27 percent  %  of female and  only  15  
          percent  %  of all drug offenders released from prison in 2001  
          in states that had not modified the ban would have met the  




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          eligibility requirements and therefore, be affected by the  
          ban.  
           
           Criticism of the lifetime ban.  The drug felon rule has  
          been the subject of much criticism by drug treatment  
          providers, advocates for the poor and law enforcement  
          organizations because it permanently disqualifies otherwise  
          needy persons from receiving assistance and may interfere  
          with their current or continued recovery.  Individuals may  
          be disqualified even if they are in a treatment program and  
          need a healthy diet to succeed, if the conviction occurred  
          long before the time they needed assistance, or if they  
          have no current substance problem.

          The Sentencing Project report concluded, "The lifetime  
          welfare ban . . . makes the possibility of returning to  
          their communities as productive members more difficult than  
          before their conviction, and in some cases improbable."  It  
          also noted a disparate impact of the rule on women of  
          color, since 46% of women convicted of felony drug offenses  
          are African-American or Latina.  
           
          Previous efforts to modify the ban
          There have been several legislative proposals to modify the  
          CalWORKs ban.  The first was SB 659 (Wright), 1999-2000,  
          which applied to all drug felonies but required treatment  
          or cessation of use conditions similar to those later  
          enacted in AB 1796.  The bill passed the Assembly 60-8 and  
          the Senate 30-4, but was vetoed by Governor Davis.  AB 767  
          (Goldberg), 2001-2002, adopted the basic framework of SB  
          659 but applied only to convictions for possession and use.  
           It also was vetoed by Governor Davis.  AB 1947  
          (Washington), 2001-2002, created an exception to the ban  
          for persons enrolled in Proposition 36 treatment programs.   
          As introduced, it applied to both CalWORKs and food stamps;  
          in final form, it covered only food stamps.  Governor Davis  
          vetoed it.   

          As previously noted, AB 1796 (Leno) of 2004 enacted a  
          partial opt-out for food stamps, covering persons convicted  
          of use or possession crimes and requiring proof of  
          treatment or cessation of use.  Governor Schwarzenegger  
          signed it, becoming effective on January 1, 2005.  AB 855  
          (Bass) and AB 2192 (Bass) of 2005-06 sought to apply the  
          eligibility limitations of AB 1796 to the CalWORKs program.  




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           The governor vetoed both.   

          Arguments in support: c  C  riticism of the lifetime ban
           .   Supporters of AB 508 argue that it is an injustice to  
          penalize convicted felons twice for the same mistake.   
          Convicted felons who are released from prison have  already  
           served out the sentence for their crime.  In addition, as  
          stated by Western Center on Law and Poverty, the lifetime  
          "ban on food stamps undermines California's efforts to  
          reduce recidivism of parolees and probationers while  
          reducing state correction costs."   
           Supporters of AB 508 observe that Proposition 36 of 2000  
          demonstrated the voters' intention to take a remedial,  
          non-punitive approach to substance abuse.  Moreover, as  
          stated by Western Center on Law and Poverty, AB 508 would  
          save foster care and group home costs because it "helps  
          give children who are in foster care or might otherwise go  
          into foster care a permanent placement."
           
          Arguments in opposition  Opposition to the bill.   
          Opponents cite their concern that allowing persons  
          convicted of drug felonies to be eligible for food stamps  
          opens the door for these individuals to use public benefits  
          to support drug sales and substance abuse.   Opponents also  
          argue that although food stamps are now provided through  
          electronic benefit transfer (EBT) system, it is unclear  
          that this is enough to prevent fraud.  Supporters have also  
          argued that it imposes a special penalty only upon persons  
          poor enough to need public assistance; those convicted of  
          such crimes who do not need cash aid face no added  
          financial penalty beyond the criminal consequences.  

           Previous efforts to modify the ban.  There have been  
          numerous previous legislative efforts to modify the  
          CalWORKs ban.  The first was SB 659 (C. Wright) of  
          1999-2000, which applied to all drug felonies but required  
          treatment or cessation of use conditions similar to those  
          later enacted in AB 1796.  The bill passed the Assembly  
          60-8 and the Senate 30-4, but was vetoed by Governor Davis.  
           AB 767 (Goldberg), 2001-2002, adopted the basic framework  
          of SB 659 but applied only to convictions for possession  
          and use.  It also was vetoed by Governor Davis.  AB 1947  
          (Washington) of 2001-2002, created an exception to the ban  
          only for persons enrolled in Proposition 36 treatment  
          programs.  As introduced it applied to both CalWORKs and  




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          6


          

          food stamps, but in final form was amended to cover only  
          food stamps.  Again, it met with Governor Davis' veto. 

          As previously noted, AB 1796 (Leno) of 2004 enacted a  
          partial opt-out for food stamps, covering only persons  
          convicted of use or possession crimes and requiring proof  
          of treatment or cessation of use.  It was signed by  
          Governor Schwarzenegger and became effective on January 1,  
          2005.  AB 855 (Bass) and AB 2192 (Bass) of 2005-06 sought  
          to apply the eligibility limitations of AB 1796 to the  
          CalWORKs program.  They were both vetoed by Governor  
          Schwarzenegger. 

          Assembly votes
          Floor          42 - 34
          AppropriationsAppropriatinos  11 -   5
          Human Services  5 -   2


                                   POSITIONS

          Support:       Alameda County Board of Supervisors
                         California Catholic Conference
                         City and County of San Francisco
                         Coalition for Effective Public Safety
           Support:       City of Oakland (sponsor)
                          Western Center on Law and Poverty  
                          

          Oppose:   California District Attorneys Association
                          Jan Scully,  District Attorney,  of  Sacramento  
                    County


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