BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 69
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          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 69 (Beall) - As Introduced:  December 15, 2010 

          Policy Committee:                              Human 
          ServicesVote:6 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill requires the Department of Social Services (DSS) to 
          seek a federal waiver allowing them to establish a pilot project 
          to explore using existing Social Security Administration (SSA) 
          data to determine CalFresh eligibility for senior citizens. 
          Specifically, this bill requires DSS to do all of the following: 


          1)Seek a federal waiver, demonstration project, or other 
            authority to establish a two-county pilot project that would 
            create a streamlined enrollment process for eligible social 
            security recipients.

          2)Identify two areas of the state in which to operate the 
            project.

          3)Work with SSA to develop a method for targeting eligible 
            social security recipients. 

          4)Develop a streamlined application process for eligible 
            CalFresh recipients.

          5)Consider other state's experiences when implementing the 
            project.

          6)Explore additional strategies for increasing CalFresh 
            participation among California's seniors. 

           FISCAL EFFECT  

          1)Unknown one-time costs, (GF and federal funds) potentially in 








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            the millions of dollars, for the automation changes required 
            by this legislation.

          2)Data suggest there are currently 440,000 CalFresh eligible 
            households with Social Security recipients. If this pilot 
            project allows 10,000 people who would otherwise not receive 
            CalFresh benefits to participate in the program it would 
            result in almost $1 million in additional federal CalFresh 
            benefits flowing into California. 

          3)Because this pilot creates a streamlined application and 
            eligibility process, on-going administrative costs for these 
            cases should be minimal because the required federal waiver 
            could include a request to eliminate the application interview 
            for these recipients and perhaps standardize deductions, thus 
            minimizing complex medical and shelter calculations.

          4)Unknown one-time costs, potentially in excess of $100,000, for 
            DSS to develop a streamlined application process for SSA 
            recipients. 

          5)One-time costs potentially in excess of $75,000 for DSS to 
            establish a workgroup to explore additional strategies for 
            increasing CalFresh participation among seniors. 

           COMMENTS  

           1)Rationale  . Currently, only 10% of eligible seniors participate 
            in the CalFresh program and only 5% of eligible Social 
            Security recipients in California participate. This bill is 
            intended to establish a pilot program which would allow 
            eligible Social Security recipients access to the CalFresh 
            program through a streamlined, automated application process. 
            The author hopes simplifying this process for senior citizens 
            will mean a vulnerable population in California receives the 
            assistance they are entitled to and that more federal SNAP 
            (Supplemental Nutrition Assistance Program - the federal name 
            for CalFresh) benefits will flow into the state.

           2)Committee Concern  .  As written, this bill contains none of the 
            traditional parameters established for a pilot project. There 
            is no sunset date and there are no evaluation requirements to 
            determine at the end of the pilot or whether or not it was 
            successful. In addition, the primary costs associated with 
            this project are driven by necessary automation changes.  All 








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            counties use one of three available automation systems.  If 
            the participating counties require that two of those systems 
            need to be modified in order for them to participate, it would 
            make sense that the program be implemented statewide, rather 
            than through a pilot, since the automation costs would be the 
            same whether one county using the system participates or all 
            of the counties on a particular system participate. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081