BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       SB 718                                       
          S
          AUTHOR:        Leno                                         
          B
          VERSION:       As introduced
          HEARING DATE:  April 14, 2009                               
          7
          FISCAL:        To Appropriations                            
          1
                                                                      
          8
          CONSULTANT:                                                
          Hailey
                                        

                                     SUBJECT
                                         
          Public social services: CalWORKs and the Food Stamp Program

                                     SUMMARY  

          Eliminates the requirement for submitting fingerprint  
          imaging for some applicants for food stamps.

                                     ABSTRACT  

           Current law:
           1.  Establishes the California Work Opportunity and  
          Responsibility to Kids program (CalWORKs) to assist parents  
          who have children under 18 years of age to transition from  
          welfare to work.  CalWORKs is the state version of the  
          federal program Temporary Assistance for Needy Families.

          2.  Establishes the food stamp program, which provides cash  
          assistance to low-income households to purchase food.  It  
          is the state version of the federal Supplemental Nutrition  
          Program, or SNAP.

          3.  Requires applicants for CalWORKs and for food stamps to  
          provide fingerprint images  as part of the eligibility  
          process. 
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL 718 (Leno)              Page  
          2





           This bill:
           1.  Would waive the fingerprint imaging requirement for  
          food stamp applicants who are not also applying for  
          CalWORKs or for non-health benefits in the general  
          assistance program.


                                  FISCAL IMPACT  

          Unknown

                            BACKGROUND AND DISCUSSION  

          According to the author, California is ranked last among  
          the states in its participation in the federal supplemental  
          nutrition program.  Approximately two million families in  
          California are eligible for food stamps yet do not receive  
          them.  The author estimates that these lost benefits are  
          valued at $2 billion -- $2 billion not spent on food in  
          low-income areas of the state.

          The author believes that lack of participation in the food  
          stamp program is not just a fiscal blow to local grocers  
          and local economies.  Millions of California residents face  
          hunger, food insecurity, obesity, and other health related  
          illnesses in part because they lack access to affordable  
          and nourishing foods, which can be purchased with food  
          stamps.

          California requires all adult household members who obtain  
          food stamp benefits to submit an electronic fingerprint  
          images.  The California's Statewide Finger Imaging System  
          (SFIS) was designed to detect "duplicate aid fraud."  The  
          author believes that, by all measurable accounts, this is a  
          relatively rare occurrence whereby a beneficiary collects  
          food stamps for multiple names or in more than one county  
          at the same time.

          On the other hand, the author believes that this  
          fingerprint-imaging requirement adds to the number of  
          eligible Californians who do not enroll in the food stamp  
          program.  The author and advocates state that the SFIS adds  
          one more step to an already burdensome application  
          procedure.  Nationally, it takes an average of five hours  




          STAFF ANALYSIS OF SENATE BILL 718 (Leno)              Page  
          3




          and three trips to the food stamp office to apply for  
          benefits.  Add SFIS, and the process becomes more  
          burdensome to the applicant.  In addition, advocates point  
          out, prior to SFIS in California, only one adult had to go  
          to the food stamp office to apply for food stamps.  Under  
          SFIS, all adults have to appear at the office.

          A study by the United States Department of Agriculture  
          found that about four percent of eligible households do not  
          complete their application in those states that requires  
          all adult members of the household to submit a fingerprint  
          image.

           Profile of food stamp households
                  Three quarters of all food stamp households are  
               headed by a female.
                 $259 is the average monthly food stamp benefit.
                 Between 40 and 45 percent of food stamp households  
               are also participating in the CalWORKs program.
                 About 40 percent of all food stamp households  
               consist of one person.
                 The average size of a food stamp household is 2.5.

           Numbers effected by this bill
           Applicants for food stamps have increased during the final  
          months of 2008 and the first month of 2009 when compared to  
          months earlier in 2008.  For example, in December, 2008,  
          about 75,000 people applied for food stamps and no other  
          form of aid (they did not apply for CalWORKs or general  
          assistance).  

          Currently, each of these applicants must submit a  
          fingerprint image in order to prevent duplicate aid fraud,  
          whereby a person applies for food stamp benefits more than  
          once using different names or addresses.  This imaging  
          process costs between $15 and $25 per person.  That's a  
          range of $1 million to $1.5 million for a month such as  
          December of 2008.  SB 718 would waive the requirement that  
          these individuals submit fingerprints during the food stamp  
          application process.

           Denials for food stamp benefits
           DSS reports the number of persons who apply for food stamps  
          and the number of persons whose applications are denied,  
          but DSS does not report the cause or causes of those  




          STAFF ANALYSIS OF SENATE BILL 718 (Leno)              Page  
          4




          denials.  Slightly fewer than one of every three applicants  
          are denied food stamp benefits.

           Bureau of State Audits report
           In 2003, the Bureau of State Audits looked at the value of  
          fingerprint images in deterring fraud in the food stamps  
          program: part of its conclusion read, "most of the matches  
          that SFIS [the state fingerprint imaging system] identified  
          have turned out to be administrative errors made by county  
          staff, and the level of detected duplicate-aid fraud has  
          been small."  The bureau recommends that the Legislature  
          weigh the cost and outcomes of the fingerprint requirement  
          with the number of eligible households it keeps from  
          completing their application.


                          QUESTIONS AND RECOMMENDATIONS
           
          1.  The committee may want to recommend to the author that  
          he seek a breakout - from DSS or from several large  
          counties -- of the characteristics of persons denied food  
          stamps to determine how many, on average during monthly or  
          quarterly intervals, are denied benefits because the  
          applicant is found to be the same person as another  
          applicant or recipient of benefits.  The costs of this  
          fingerprint imaging requirement -- as well as its  
          presenting a bureaucratic hurdle that deters a measurable  
          percentage of eligible persons from applying - may well  
          exceed any benefit from the practice.


                                    POSITIONS  

          Support:       California Catholic Conference of Bishops
                         County Welfare Directors Association of  
          California
                         Western Center on Law and Poverty

          Oppose:   None received




                                   -- END --