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 --