BILL ANALYSIS                                                                                                                                                                                                    Ó






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 69                                       
          A
          AUTHOR:        Beall                                       
          B
          VERSION:       May 27, 2011
          HEARING DATE:  June 28, 2011                               
          6
          FISCAL:        Appropriations                              
          9
                                                                     
          CONSULTANT:                                                
          Hailey
                                        
                                     SUBJECT
                                         
                           Senior nutrition benefits

                                     SUMMARY  

          Allows counties to identify, through the Social Security 
          Administration's benefits database, needy seniors who may 
          be eligible for CalFresh benefits and then send them a 
          simplified form to enroll in the CalFresh program.

                                     ABSTRACT  

           Current law
           1.  Federal statute creates the Supplemental Nutrition 
          Assistance Program (SNAP), formerly food stamps, and state 
          statute creates CalFresh to provide cash benefits for 
          eligible persons to purchase food.

           This bill  
          1.  Makes findings and declarations about the importance of 
          good nutrition to seniors and the number of California 
          seniors whose limited incomes may imperil their diets.

          2.  Requires the Department of Social Services (DSS) to 
          allow counties to use existing information from SSA to 
          identify low-income seniors and to simplify their CalFresh 
          enrollment as long as the counties have the ability to 
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          adapt their existing automation systems without significant 
          changes or costs.

          3.  Requires DSS to support CalFresh enrollment efforts by:

                         a.  Working with SSA to identify low-income 
          seniors age 60 or older whose
                               income and other factors are likely to 
          qualify them for CalFresh benefits;

                         b.  Developing a streamlined application and 
          simplified enrollment process for
                               likely eligible recipients, which may 
          include strategies used by other states;
                               and,
                         c.  Seeking waivers, grants, or other 
          necessary federal authority and support.
                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee, there 
          would be one-time costs, potentially in excess of $100,000, 
          for DSS to develop a streamlined application process for 
          social security recipients.  There are currently 440,000 
          California households that include a social security 
          recipient eligible for CalFresh.  Each 100,000 persons 
          added to the CalFresh program would result in about $10 
          million in additional federal CalFresh benefits coming into 
          California.

                            BACKGROUND AND DISCUSSION  

           Author's rationale
           According to the author, senior participation in the 
          CalFresh program is disturbingly low, and this bill 
          attempts to reach out to this group to enroll them in 
          CalFresh.  Good nutrition is important for seniors:  it can 
          improve resistance to illness and disease, and it helps 
          with management of existing health problems.  It can 
          improve mental acuity and increase longevity.  In addition, 
          for many seniors relying on prescription medications, 
          nutrition is vital as many medications must be taken with 
          food.

          Many seniors are struggling, notes the author.  According 
          to the California Health Interview Survey, nearly 20 




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          percent 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 underutilized:  only 10 percent 
          of eligible seniors participate in CalFresh and only 5 
          percent of eligible Social Security recipients in 
          California participate in CalFresh.
           
           Utilizing the Social Security Administration for outreach 
          to seniors eligible for CalFresh
           This bill enlists the assistance of the Social Security 
          Administration to test strategies for enrolling additional 
          social security recipients into CalFresh.  This bill also 
          directs DSS to design and implement a simplified 
          application process that would use the existing information 
          within the SSA database to identify eligible CalFresh 
          seniors and enroll them.  
           
           CalFresh participation - and "cash out" of benefits for SSI 
          recipients
           Beginning in the 1970's, the Legislature calculated 
          Supplemental Security Income (SSI) grants for aged and 
          disabled individuals and couples to reflect the inclusion 
          of nutritional benefits - the old food stamp program, now 
          CalFresh.  This "cash out" of food stamps means that SSI 
          recipients receive a larger grant rather than a grant plus 
          the food-stamp script or the electronic benefit card.
          The "cash out" has meant that a large segment of the 
          lowest-income population of California seniors has been 
          ineligible for CalFresh, and it may have contributed to 
          confusion concerning seniors' eligibility for CalFresh.
           Economic impact of CalFresh
           According to Moody's Investor Services, an independent 
          provider of credit ratings and financial services research, 
          for every CalFresh dollar spent, $1.74 is generated in 
          economic activity.  (The U.S. Department of Agriculture 
          estimates this amount to be $1.84).  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.  By providing 
          individuals with CalFresh benefits, a proportion of 
          household income previously used to purchase food would now 
          be used to purchase taxable goods.

           Assembly votes




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           Floor          54 -21
          Appropriations12 -  5
          Human Services  6 -  0
                                         
                                   POSITIONS  

          Support:       California Food Policy Advocates (sponsor)
                         Catholic Charities of California (sponsor)
                         AARP
                         Alameda County Food Bank
                         California Association of Food Banks
                         California Catholic Conference, Inc.
                         California Commission on Aging
                         California Communities United Institute
                         California Farm Bureau Federation
                         California Grocers Association
                         California Hunger Action Coalition
                         California Optometric Association
                         California Restaurant Association
                         California Retailers Association
                         California School Employees Association, 
                         AFL-CIO
                         California Senior Leaders Alliance
                         California Senior Legislature
                         City and County of San Francisco
                         Community Action Partnership of Orange 
                         County
                         Congress of California Seniors
                         Feeding America
                         Food Share, Inc.
                         Food Share, Ventura County
                         Hunger Action Los Angeles
                         JERICHO
                         Jewish Family Service of Los Angeles
                         National Association of Social Workers, 
                         California Chapter
                         Orange County Food Bank  
                         San Francisco Food Bank
                         Second Harvest Food Bank, Santa Cruz County
                         Senior Services Coalition, Alameda County
                         St. Anthony's
                         United Way Silicon Valley
                         Western Center on Law & Poverty
                         12 individuals





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          Oppose:   California Right to Life Committee, Inc.



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