BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 69
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 69 (Beall)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |54-21|(June 1, 2011)  |SENATE: |26-2 |(August 31,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    HUM. S.
           
           SUMMARY  :  Allows counties to identify, through the Social 
          Security Administration (SSA) benefits database, seniors who may 
          be eligible for CalFresh benefits in order to enroll them in the 
          program and improve their nutrition.  Specifically,  this bill  :  

          1)Requires the Department of Social Services (DSS) to allow 
            interested counties to use existing information from SSA to 
            identify low-income seniors and simplify their CalFresh 
            enrollment as long as the counties have the ability to adapt 
            their existing automation systems without significant changes 
            or costs to the state or county; and makes the bill operative 
            on July 1, 2012.

          2)Requires DSS to support 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)   Simplifying the application process which may include 
               strategies used by other states, as specified; and, 

             c)   Seeking waivers, grants, or other necessary federal 
               authority and support. 

           The Senate amendments  add an operative date of July 1, 2012.  

          AS PASSED BY THE ASSEMBLY  , this bill remains substantially 
          similar as the version passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee:









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           Major Provisions         2011-12      2012-13      2013-14     Fund
           
          Increased CalFresh     Unknown; increased benefits, potentially 
          Federal*
          participation           in the low hundreds of millions annually

          CalFresh administration$2,700 to $3,800 annually, 
          dependentGeneral 
                                 upon level of participation

          Sales tax revenue      Potentially $5,000 to $7,000 
          ongoingGeneral

          *CalFresh benefits are 100 percent federally funded.


           COMMENTS  :  According to the author, senior participation in the 
          CalFresh program is disturbingly 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 1970s, "Cashout" was established and 
          since then seniors on Supplemental Security Income (SSI) in 
          California have been prohibited from participating.  This has 
          meant a large segment of the senior population has been 
          ineligible for quite some time while non-SSI (i.e., eligible) 








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          senior populations have been confused over their eligibility 
          (especially those receiving other benefits from SSA).

          Since 1997, the federal government has required SSA 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.

           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 the Supplemental Nutrition Assistance Program (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 SSA 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 simplified application process 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, 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.

           Positive fiscal effect of food stamp benefits  :  According to 








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          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 U.S. Department of 
          Agriculture 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.   
           
           
          Analysis Prepared by  :    Frances Chacon / HUM. S. / (916) 
          319-2089 


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