BILL ANALYSIS Ó AB 402 Page 1 ASSEMBLY THIRD READING AB 402 (Skinner) As Amended May 27, 2011 Majority vote EDUCATION 7-2 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |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 AB 402 Page 2 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 AB 402 Page 3 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 AB 402 Page 4 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 AB 402 Page 5 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 FN: 0001137