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.









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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.








                                                                  AB 69
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          St. Anthony's

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Frances Chacon / HUM. S. / (916) 
          319-2089