BILL ANALYSIS Ó AB 69 Page 1 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 AB 69 Page 2 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 AB 69 Page 3 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