BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 402
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          ASSEMBLY THIRD READING
          AB 402 (Skinner)
          As Amended  May 27, 2011
          Majority vote 

           EDUCATION           7-2         APPROPRIATIONS      12-5        
           
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          |Ayes:|Brownley, Ammiano,        |Ayes:|Fuentes, Blumenfield,     |
          |     |Buchanan,                 |     |Bradford, Charles         |
          |     |Bonilla, Carter, Eng,     |     |Calderon, Campos, Davis,  |
          |     |Williams                  |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Norby, Hagman             |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Authorizes a school district or a county office of 
          education (COE) to incorporate CalFresh program information in 
          the School Lunch Program (SLP) application.  Specifically,  this 
          bill  :  

          1)Authorizes each school district or a COE to enter into a 
            memorandum of understanding (MOU) with the local agency that 
            determines CalFresh program eligibility, or its designee, to 
            share information provided on the SLP application with that 
            agency, if the applicant consents to the sharing of that 
            information.  Authorizes the information to be shared 
            electronically, physically, or through whatever method is 
            determined appropriate.  Specifies that the MOU shall set 
            forth the roles and responsibilities of the school district or 
            COE and the local agency and the process to be used in sharing 
            the information.

          2)Specifies that the local agency that determines CalFresh 
            program eligibility shall only use information provided on a 
            SLP application for purposes directly related to the 
            enrollment of families in the CalFresh program.

          3)Specifies that after a school district or COE shares 
            information provided on a SLP application with the local 
            agency that determines CalFresh program eligibility, or its 








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            designee, for the purpose of determining the applicant's 
            eligibility for the CalFresh program, the school district or 
            the COE and the local agency, or its designee, shall not share 
            information about the applicant or his or her household with 
            each other, or any entity, unless specifically authorized to 
            do so pursuant to other provisions of law. 

          4)Requires each county 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. 

          5)Specifies that upon receipt of a SLP application pursuant to 
            this bill for a pupil who is not already enrolled in the 
            CalFresh program, the county shall treat the application as an 
            application for the CalFresh program.  Specifies that for 
            purposes of administration of the CalFresh program, the 
            application date shall be the date that the application is 
            received by the county human services department.  Provides 
            that if the county determines the pupil is already enrolled in 
            the CalFresh program, it shall not take any further action.

          6)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.

          7)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 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.

          8)Requires each county to request the parent or guardian of each 








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            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.

          9)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.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, one time General Fund/Proposition 98 cost pressure, 
          likely less than $150,000 to school districts and COEs to revise 
          the SLP application.  There were 1,021 districts and COEs in the 
          state in 2009-10.  If this process leads to increased 
          eligibility in the CalFresh program, the state will receive an 
          increase in federal funds to implement this program.  

           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.  

          Existing law requires local educational agencies (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 








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          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 (SBPs) and supplemented by state funds.  These programs 
          are 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 the California Work 
          Opportunities and Responsibility to Kids 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 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 from grocery stores, convenience stores, 
          and even some farmer's markets.  Children are eligible for 








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          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.   

          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.
           

          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087 



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