BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 402
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 402 (Skinner) - As Amended:  April 26, 2011 

          Policy Committee:                              Education 
          Vote:7-2

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes a school district and county office of 
          education (COE) to incorporate CalFresh program information into 
          the School Lunch (SL) program application.  Specifically, this 
          bill: 

          1)Requires the following information be incorporated into the SL 
            program application (at the option of the district or to the 
            extent necessary to implement the CalFresh program): pupil 
            eligibility; parental consent regarding forwarding any 
            eligibility information to the agency that administers the 
            CalFresh program; information about the CalFresh program; 
            notification that SL program information is confidential 
            (unless authorized by the parent); and notification that SL 
            program information will only be used by CalFresh state and 
            local agencies, as specified.  

          2)Authorizes districts and COEs to implement a process to share 
            information provided on the SL program application with the 
            local agency that determines CalFresh program eligibility.

          3)Requires each county to use information shared from the SL 
            program application to determine CalFresh program eligibility 
            and enroll eligible children in the CalFresh program, upon 
            receipt of a signed application.  

          4)Requires the county to notify the parent/guardian that his or 
            her family is eligible for the CalFresh program, if the county 
            determines eligibility from the SL program application.  

          5)Requires the county to contact the parent/guardian of a child 
            to seek additional information regarding eligibility, if the 







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            county is unable to determine eligibility in the CalFresh 
            program from the SL application, as specified.  

          6)Requires each county to request information from a 
            parent/guardian that will ensure sustained participation in 
            the CalFresh program.  This measure also requires the county 
            to deny or discontinue CalFresh program benefits if the 
            parent/guardian does not provide this information.  

           FISCAL EFFECT  

          1)One-time GF/98 cost pressure, likely between $250,000 and 
            $500,000, to school districts and COEs to revise the SL 
            program application, as specified.  There were 1,021 districts 
            and COEs in the state in 2009-10.  If this process leads to 
            increase eligibility in the CalFresh program, the state will 
            receive an increase in federal funds to implement this 
            program.    

          2)The 2010 Budget Act allocated approximately $1.29 billion for 
            the SL program.  Of this amount, approximately $1.2 billion is 
            federal funding and $93.8 million is GF/98.  

           COMMENTS  

           1)Background  .  The CalFresh program, formerly known as Food 
            Stamps, provides food to low-income individuals with a 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, as specified.  The cost of this program is borne 
            entirely by the federal government. Associated administrative 
            costs are shared between the federal government (50%), the 
            state (35%), and the counties (15%). 

            Existing law requires all public school districts and COEs to 
            make available, free or at a reduced price, one nutritionally 
            adequate meal to each needy student every school day.  A needy 
            student is one who qualifies for free or reduced price meals, 
            according to specified family size and income standards.  

           2)Rationale  .  The United States Department of Agriculture 
            studies reveal that only 50% of eligible Californians receive 
            CalFresh.  According to the author, "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 







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            in federal food benefits and $1.7 billion in generated 
            economic activity due to low CalFresh participation rates.  AB 
            402 allows school districts to use their school meal 
            application as a tool to increase CalFresh participation by 
            sharing information with local social services agencies."  

           3)Existing law  authorizes school districts and COEs to establish 
            a process to share information provided under the SL program 
            application with the local entity that determines eligibility 
            under the Medi-Cal program.  This bill attempts to establish a 
            similar process between districts and COEs for the CalFresh 
            program, as specified.  
           
          4)The SL program  is a federally funded reimbursement program 
            that assists schools and other agencies in providing 
            nutritious lunches to children at reasonable prices.  The 
            program is required to available to all enrolled children.  
            Free or reduced price meals must be provided to those children 
            who qualify for such benefits according to specified family 
            size and income standards.  According to the State Department 
            of Education, 580.8 million school lunches were served in 
            2009-10.  Of the number, 390 million meals were free and 70.2 
            million meals were a reduced price.  Approximately 1,000 
            school districts, COEs, and charter schools participated in SL 
            program during this time period.   


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916) 
          319-2081