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 Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 69 (Beall) Page 2 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 STAFF ANALYSIS OF ASSEMBLY BILL 69 (Beall) Page 3 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 STAFF ANALYSIS OF ASSEMBLY BILL 69 (Beall) Page 4 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 STAFF ANALYSIS OF ASSEMBLY BILL 69 (Beall) Page 5 Oppose: California Right to Life Committee, Inc. -- END --