BILL ANALYSIS Ó AB 402 Page 1 Date of Hearing: April 13, 2011 ASSEMBLY COMMITTEE ON EDUCATION Julia Brownley, Chair AB 402 (Skinner) - As Introduced: February 14, 2011 SUBJECT : CalFresh program: School Lunch Program: information SUMMARY : Authorizes a school district or a county superintendent of schools to incorporate CalFresh program information in the School Lunch Program (SLP) application. Specifically, this bill : 1)Specifies that at the option of a school district or a county superintendent of schools, and to the extent necessary to implement a program authorizing a county to determine CalFresh program eligibility using information from the SLP application, the following information shall be incorporated into the SLP application packet using simple and culturally appropriate language: a) A notification that if a pupil qualifies for free school lunches, he or she also may qualify for the CalFresh program. b) A request for the applicant's consent for the pupil to participate in the CalFresh program, if eligible, and to have information on the school lunch application shared with the local agency that determines eligibility under the CalFresh program. c) A notification that the school district or county superintendent of schools will not forward the school lunch application to the local agency that determines eligibility under the CalFresh program without the consent of the pupil's parent or guardian. d) A notification that the school lunch application is confidential and, with the exception of forwarding the information for use in CalFresh program enrollment, upon the consent of the pupil's parent or guardian, the school district or county superintendent of schools will not share the information with any other governmental agency, including the federal Immigration and Naturalization Service and the Social Security Administration, for any AB 402 Page 2 purpose other than administration of the CalFresh program. e) A notification that information contained in the SLP application packet will only be used by state and local agencies that administer the CalFresh program for purposes directly related to the administration of the CalFresh program and will not be shared with other governmental agencies, including the federal Immigration and Naturalization Services and the Social Security Administration, except as necessary to verify information provided by the applicant. f) Information regarding the CalFresh program, including available services, program requirements, rights and responsibilities, and privacy and confidentiality requirements. 2)Specifies that school districts and county superintendents of schools may implement a process to share information provided on the SLP application with the local agency that determines eligibility under the CalFresh program and share that information with that agency, if the applicant consents to that sharing of information. This information may be shared electronically, physically, or through whatever method is determined appropriate. 3)Specifies that each school district or county superintendent of schools that chooses to share information pursuant to this bill shall enter into a memorandum of understanding with the local agency that determines eligibility under the CalFresh program that sets forth the roles and responsibilities of each agency and the process to be used in sharing the information. 4)Specifies that the local agency that determines eligibility under the CalFresh program shall only use information provided by applicants on the SLP application for purposes directly related to administration of the CalFresh program. 5)Specifies that after a school district or county superintendent of schools shares information regarding the school lunch application with the local agency that determines eligibility under the CalFresh program for the purpose of determining CalFresh program eligibility, the local agency shall not share information about SLP participation or CalFresh program eligibility with each other unless AB 402 Page 3 specifically authorized under other provisions of law. 6)Requires each county to participate in a statewide pilot program to use the procedure established pursuant to this bill to determine CalFresh program eligibility for children whose information is shared with the county and, if the child is eligible, requires the county to enroll the child in the CalFresh program, upon receipt of a signed CalFresh program application. 7)Specifies that if the county determines from the SLP application and supporting documents that the child or his or her family meets the income eligibility requirements for participation in the CalFresh program, the county shall notify the parent or guardian of the child that the child or his or her family has been found eligible for the CalFresh program. 8)Specifies that if the county is unable to determine from the information on the application whether the child or his or her family is eligible for the CalFresh program, the county shall contact the parent or guardian of the child to seek any additional information regarding income, household composition, or deductions that the county may determine to be necessary to complete the CalFresh program application. Provides that if the county determines that the child or his or her family does not meet the eligibility requirements for participation in the CalFresh program, the county shall notify the parent or guardian of the child of the determination. 9)Requires each county to request the parent or guardian of each child whom the county determines meets the eligibility requirements for participation in the CalFresh program to provide additional documentation as required by current law necessary for retention of eligibility in the CalFresh program. 10)Specifies that if a parent or guardian of a child does not provide the documentation required for retention of CalFresh program eligibility, the county shall deny or discontinue CalFresh program benefits in accordance with existing regulations and laws. EXISTING LAW : 1)Requires each school district or county superintendent of AB 402 Page 4 schools maintaining any kindergarten or any of grades 1 through 12 to provide for each needy pupil one nutritionally adequate free or reduced-price meal during each schoolday, except for family day care homes that shall be reimbursed for 75% of the meals served. 2)Defines needy children as those children who meet federal eligibility criteria for free and reduced price meals, except for family day care homes which shall be reimbursed for 75% of the meals. 3)Requires the governing board of a school district and the county superintendent of schools to make applications for free or reduced price meals available to students at all times during each regular schoolday. Requires the application to contain specified information. 4)Requires the California Department of Education (CDE) to create a computerized data-matching system using existing databases from the CDE and the State Department of Health Care Services to directly certify recipients of the Food Stamp Program, the California Work Opportunity and Responsibility to Kids Program (CalWORKs), and other programs authorized for direct certification under federal law, for enrollment in the National School Lunch and School Breakfast Programs (SBP). 5)Encourages each school district and county superintendent of schools to include information in the meal application that parents may use to request information concerning the Medi-Cal program and the Healthy Families Program. Specifies that at the option of the school district and county superintendent, the application may contain the following: a) A notification that if a child qualifies for free school lunches, then the child may qualify for free or reduced-cost health coverage. b) A request for consent to allow information in the SLP application to be shared with the entity that makes eligibility determination for the Medi-Cal program. c) A notification that the information in the school lunch application is confidential and, with the exception of sharing the information with the agency that determines Medi-Cal eligibility, will not be shared with any governmental agency, including the federal Department of Homeland Security and the Social Security Administration. AB 402 Page 5 d) Information regarding the Medi-Cal Program. 6)Authorizes school districts and county superintendent of schools to implement a process to share information provided on the SLP application with the entity designated by the State Department of Health Services to make an accelerated determination and with the local agency that determines eligibility under the Medi-Cal Program. Requires each school district or county superintendent that chooses to share information to enter into a memorandum of understanding with the local agency that determines Medi-Cal eligibility that sets forth the roles and responsibilities of each agency and the process to be used in sharing the information. FISCAL EFFECT : Unknown COMMENTS : According to the author, "As families continue to feel the impacts of the recession, federal programs such as the Free or Reduced Price Meal Program and CalFresh (formerly Food Stamp) provide a safety net to help ensure that low-income children get adequate nutrition. Recent U.S. data found that in 2009 nearly 17.2 million children, or almost one in four, lived in food insecure households where their families faced a constant struggle against hunger. In California between 2008 and 2010, an alarming number of children became newly eligible for free and reduced-cost meal programs in nearly every county. Although 3.4 million children are now eligible for school meal programs, a large number of these children and their families are not participating in CalFresh. California loses nearly $5 billion in federal food benefits and $1.7 billion in generated economic activity due to low CalFresh participation rates." This bill proposes to utilize information contained in the school meal program application to initiate the determination of eligibility for the CalFresh program (formerly the Food Stamp program). School meal programs : Existing law requires LEAs to provide one nutritiously adequate free and reduced-price meal to needy children once a day during each schoolday. A needy child is defined as a child who meets the federal eligibility for free and reduced-price meals. School meal programs are funded predominantly by the United States Department of Agriculture (USDA) through its National School Lunch and School Breakfast programs and supplemented by state funds. These programs are AB 402 Page 6 federal entitlement programs, which mean that allocations are not fixed; federal funds will be provided as long as recipients meet eligibility criteria. In 2009-10, the state received $341.3 million for SBP and $1.2 billion for SLP. State funds augmented the program by $40.6 million for SBP and $93.8 million for SLP. According to the CDE, on an average day, more than 4.7 million nutritious meals are served at approximately 43,000 locations. Income eligibility is 130% of federal poverty guidelines for free meals ($28,665 for a family of four) and 185% of federal poverty guidelines for reduced-price meals ($40,793 for a family of four). Current law also establishes a direct certification process whereby children who are enrolled in certain public benefits programs such as CalWORKs and CalFresh are automatically enrolled in the free and reduced-price meal program, and a categorically eligible process whereby migrant, homeless and foster care children are also automatically enrolled. Existing law requires a LEA to make applications for free or reduced price meals available to students at all times during each regular schoolday. According to the CDE, 1,013 of 1,047 districts in the state offer SLP while 866 districts offer SBP. CalFresh program : CalFresh is another food program for low income individuals funded through the USDA. Similar to the SBP and the SLP, CalFresh is also an entitlement program. CalFresh is available to individuals with maximum gross income of 130% of federal poverty level ($28,665 for a family of four) and a net income of 100% of federal poverty guidelines and who meet one of the following: 1) applicant has lived in the country for five years; 2) applicant is receiving disability-related benefits, regardless of how long s/he has lived in the country; or, 3) applicant is a child under 18 years of age regardless of how long s/he has lived in the country. Each individual/household amount of benefit varies depending on income. According to the California Department of Social Services, the average amount per household per month is $200. The benefit amount is deposited into a debit card which can be used to purchase food or seeds and plants to grow food, including grocery stores, convenience stores, and even some farmer's markets. Children are eligible for benefits even if their parents are not eligible. Over two million Californians receive CalFresh benefits. However, according to the California Food Policy Advocates, there are an estimated three million eligible individuals who are not receiving CalFresh benefits. AB 402 Page 7 This bill authorizes LEAs to include CalFresh information on the school meal program application. The form would include an area where parents or legal guardians can provide consent to allow LEAs to share information regarding children who are eligible for free and reduced-price meals with the county agency responsible for determining eligibility for CalFresh. According to the sponsors, County Welfare Directors Association and Western Center on Law and Poverty, the USDA's Food and Nutrition Services agency, which oversees the Supplemental Nutrition Assistance Program (SNAP) - the name of the CalFresh program at the federal level - has encouraged county social service departments to ask school districts to provide data for school meal program recipients in order to establish a data match for SNAP enrollment. This has been a very effective means of increasing SNAP enrollment in other locations, such as Montgomery County, Maryland where over 20,000 children receiving free school lunches were enrolled into the program via this data-sharing method. School districts, however, assert that the Federal Educational Rights and Privacy Act prohibits release of pupil information, except for specified purposes, without the consent of pupils or their parents/legal guardians if the pupils are under age 18. This bill is modeled after an existing program commonly called the Express Lane Eligibility program, which seeks parental/legal guardian consent through the SLP to enroll children in the Medi-Cal program (California's Medicaid program) based initially on information on the SLP provided by school districts or county superintendent of schools to county social services agencies responsible for determining Medi-Cal eligibility. County social service agencies are required to participate in a state pilot program to determine Medi-Cal eligibility based on the information provided by LEAs. Medi-Cal Express Lane Eligibility program : Established by AB 59 (Cedillo), Chapter 894, Statutes of 2001, the Express Lane Eligibility program was launched in 2003-04 as a pilot program with participation by districts in four counties: Fresno, Los Angeles, San Diego, and San Mateo. Four more districts from Mendocino and San Luis Obispo counties joined the pilot program in 2004-05. Under the premise that improving access to health care reduces absenteeism and improves school readiness, information regarding the Medi-Cal program is incorporated into SLP applications to inform parents that eligibility in the free AB 402 Page 8 and reduced-price lunch programs may indicate eligibility for the Medi-Cal program. Parents could provide their consent to allow the LEA to forward the information contained in the SLP to the county through the SLP application. The county would provide presumptive (immediate) eligibility for Medi-Cal benefits while reviewing and collecting additional information to determine on-going eligibility. LEAs and counties participating in the program must develop and sign a memorandum of understanding detailing their respective roles and responsibilities. A 2006 report evaluating the program over a three year period found that in the first year, 42% of parents of free and reduced-price eligible children provided consent. The percentage of parents providing consent declined over the next two years. County social service agencies reported receiving 5,500 Express Lane applications in the first year, 3,100 in the second year and 3,700 in the third year. Over the course of the pilot program, between 1,200 (32%) and 1,800 (45%) children were "expressed enrolled". Of these, 916 (51%) received on-going eligibility in the first year but declined to 437 (35%) in the second year and 546 (33%) in the third year. The decrease may be due in part to some applicants being found to be ineligible; some were already enrolled in Medi-Cal, while some did not submit the necessary information for the county to determine on-going eligibility. Existing law prohibits the use of the information on the SLP application for any other purposes other than to determine eligibility for free and reduced-price meals and, with parents' consent, share the information with the county social service agency to determine Medi-Cal eligibility. Existing law also requires the information on the SLP to include notification that the information will not be shared with the Department of Homeland Security or the Social Security Administration. As of 2004-05, 19 districts participated in the program. The process to be used by this bill is identical to that of the Express Lane Eligibility program. Discussion : Will this form be too long and overwhelm parents? The report on the Express Lane Eligibility program did not show that applications for school meals were reduced as a result of adding Medi-Cal information. Will this addition be too much? This bill requires the county agency responsible for determining AB 402 Page 9 CalFresh eligibility to participate in a pilot with LEAs to determine eligibility using the school meal program application. The reference to pilot was modeled after the Express Lane Eligibility. However, the Express Lane program does not have an end date and has not been treated as a pilot. Staff recommends striking the reference to a pilot. What happens with the application if the recipient is already receiving CalFresh benefits? In the Express Lane program, parents/guardians of children who were already receiving Medi-Cal received a notice that their children were not eligible. This lead to confusion. Staff recommends an amendment to clarify that if a child is already receiving CalFresh, the county would not be required to do anything with the application. Staff also recommends including a notification in the SBL application that no further action will be taken if the child is already receiving CalFresh. Under federal rules, counties are required to process applications within 30 days of receipt of application. Staff recommends a clarification that for the purpose of this bill, the date of receipt of an application is the date the county social service office receives the school meal application from the LEA. Arguments in Support . The Western Center on Law and Poverty states, "There is well documented relationship between hunger, academic achievement and child development. According to the Food Research and Action Center, children experiencing hunger can have many negative effects on children's academic performance and school behavior, including: Hungry children have lower math scores and are more likely to have to repeat a grade. Children experiencing hunger are more likely to be hyperactive, absent and tardy, in addition to having behavioral and attention problems more often than other children. Children who experience hunger are more likely to have repeated a grade, received special education services, or received mental health counseling, than low-income children who do not experience hunger." Related legislation . AB 839 (Brownley), pending in the Assembly Education Committee, requires each school district or county AB 402 Page 10 superintendent of schools maintaining kindergarten or any of grades 1 through 12 to submit specified reports and governing board resolutions to the California Department of Education regarding access and participation in the federal SBP. REGISTERED SUPPORT / OPPOSITION : Support County Welfare Directors Association of California (co-sponsor) Western Center on Law and Poverty (co-sponsor) Butte County Department of Employment and Social Services California Association of Food Banks California Hunger Action Coalition Coalition of California Welfare Rights Organizations County of Santa Clara Board of Supervisors Humboldt County Department of Health and Human Services Jericho Laborers' Local 777 Laborers' Local 792 Santa Barbara County Department of Social Services Opposition None on file Analysis Prepared by : Sophia Kwong Kim / ED. / (916) 319-2087