BILL ANALYSIS Ó
AB 69
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Date of Hearing: April 5, 2011
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 69 (Beall) - As Introduced: December 15, 2010
SUBJECT : Senior nutrition benefits
SUMMARY : Seeks to identify, through the Social Security
Administration (SSA) benefits database, needy seniors who may be
eligible for CalFresh benefits in order to enroll them and
improve their nutrition. Specifically, this bill :
1)Requires the Department of Social Services (DSS) to seek a
federal waiver to establish a pilot project in two counties,
and:
a) Work with SSA to develop ways to target social security
recipients eligible for CalFresh benefits;
b) Develop a streamlined application process to enroll
eligible seniors in CalFresh who are 65 years and older;
c) Consider other states' experiences when implementing the
pilot project that would reduce paperwork and increase
nutritional benefits, including but not limited to,
self-certification or key eligibility factors,
standardization of benefits and deductions, and automation
of the application process; and
d) Consider other strategies to increase CalFresh
participation among existing eligible seniors.
EXISTING LAW :
1)Prohibits CalFresh eligibility for seniors who receive
Supplemental Security Income/State Supplementary Payment
(SSI/SSP), also known as "Cash-out."
2)Provides, under federal law, the Supplemental Nutrition
Assistance Program (SNAP), known in California as CalFresh
(formerly the Food Stamp Program), under which nutrition
assistance benefits formerly referred to as food stamps are
distributed to eligible households.
AB 69
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FISCAL EFFECT : Unknown
COMMENTS : According to the author, senior participation in the
CalFresh program is disturbing low and this bill attempts to
reach out to this vulnerable group and enroll them in CalFresh.
Background
Good nutrition is especially important for seniors. It can help
improve resistance to illness and disease or help manage
existing health problems. It can improve mental acuity and
increase longevity. And for many seniors relying on
prescription medications, nutrition is vital - as many
medications are required to be taken with food.
But many seniors are struggling. According to the Elder
Economic Security Standard Index, about half a million seniors
who live alone are not able to make ends meet. Many struggle to
afford nutritious food. According to the California Health
Interview Survey, nearly 20% of low-income seniors in California
are "food insecure" or an inability to secure adequate food.
While a number of programs exist to increase resources for food,
one of the largest remains severely underutilized: only 10% of
eligible seniors participate in CalFresh and only 5% of eligible
Social Security recipients in California participate in
CalFresh.
Since the creation of the Food Stamp Program, very few seniors
have participated. In the 1970's, "cashout" was established and
seniors on SSI in California have been barred from participating
since then. This has meant a large segment of the senior
population has been ineligible for quite some time, while
actually eligible senior populations have gotten confused over
their eligibility (especially those receiving other benefits
from the Social Security Administration).
Since 1997, the federal government has required the Social
Security Administration to give SSI applicants the opportunity
to file a food stamp application. This requirement and a
general interest in increasing enrollment among seniors have led
many states to develop and test the now proven successful
strategies that have increased enrollment among SSI recipients.
However, no such efforts have occurred to enroll recipients of
Social Security.
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Why senior participation is so low
CalFresh participation is low across all populations, but there
are clearly some unique barriers to participation among seniors
such as transportation, a confusing application process, and the
perceived stigma of receiving "charity." Despite some special
rules for seniors the application process is still challenging
for many. Other states have taken steps to make it easier for
some seniors to participate. For example, many states operate
Combined Application Projects (CAPs) to enroll elderly SSI
recipients into SNAP (the federal name for CalFresh). Though
SSI recipients in California are ineligible for CalFresh, the
approaches used in other states may prove successful if applied
to other California senior populations that are indeed eligible.
Given that the Social Security Administration was the primary
partner in the CAP projects in other states, the hope is that
they could be enlisted in an effort to test strategies for
enrolling Social Security recipients in California into
CalFresh. This bill seeks to design and implement a pilot
project that would use the existing information within the SSA
database to identify eligible CalFresh seniors and enroll them
in a very streamlined fashion. If successful, the projects in
two counties could increase senior participation and obtain
critical nutrition benefits for this vulnerable group. At the
same time, the increase in participation would have the added
plus of infusing much needed economic stimulus for grocery
stores, farmers, and related businesses involved in the growing,
selling, and distribution of food. Indeed, this effect is
recognized with the support from the California Farm Bureau
Federation, California Retailers Association, California Grocers
Association, and the California Restaurant Association.
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Positive fiscal effect of food stamp benefits
According to Moody's Investor Services, an independent provider
of credit ratings and financial services research, CalFresh
benefits have the highest economic multiplier effect out of all
government programs or fiscal policy tools that stimulate the
economy. Moody's finds that for every CalFresh dollar spent,
$1.74 is generated in economic activity. (The USDA finds this
amount to be $1.84). Additionally, these benefits generate
sales tax revenue for county and the state coffers. To the
extent that this bill increases CalFresh participation, the
state could expect to receive additional state General Fund
revenue due to increased taxable purchases by recipients. This
is possible because studies show that low-income families such
as CalFresh recipients spend approximately 45% of their income
on taxable goods. By providing these families with CalFresh
benefits, 45% of the money previously used by the family to
purchase food would now be used for purchasing taxable goods.
REGISTERED SUPPORT / OPPOSITION :
Support
AARP
Alameda County Community Food Bank
California Association of Food Banks
California Catholic Conference, Inc.
California Commission on Aging
California Communities United Institute
California Farm Bureau Federation (Farm Bureau)
California Grocers Association (CGA)
California Hunger Action Coalition
California Restaurant Association
California Retailers Association
California School Employees Association, AFL-CIO
California Senior Legislature (CSL)
Catholic Charities of California (co-sponsor)
Catholic Charities of California United
Community Action Partnership of Orange County
FOOD Share, Inc.
Hunger Action, Los Angeles
JERICHO
Second Harvest Food Bank, Santa Cruz County
Senior Services Coalition, Alameda Co.
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St. Anthony's
Opposition
None on file.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089