BILL ANALYSIS Ó AB 828 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 828 (Swanson) - As Introduced: February 17, 2011 Policy Committee: Human ServicesVote:4 - 2 Urgency: No State Mandated Local Program: Yes Reimbursable: Yes SUMMARY This bill allows individuals convicted of drug-related felonies to receive federal CalFresh (food stamps) benefits. FISCAL EFFECT 1)Up to $1 million in federal CalFresh benefits to the extent additional individuals receive CalFresh. For every 900 beneficiaries, about $1 million in CalFresh benefits are received annually. These benefits are 100% federal funds. 2)Minor absorbable workload to local welfare departments to process additional CalFresh applications or adjust existing family CalFresh benefits. 3)Unknown GF and local tax revenues to the extent that new CalFresh recipients spend funds on taxable goods. 4)Unknown savings, to the extent federal food assistance reduces the need for other kinds of public benefits. COMMENTS 1)Purpose . The premise of the original federal law that underlies this bill was that individuals should be prevented from using public benefits to support substance abuse. AB 828 Page 2 However, in recent years, the food stamps program been moved to an electronic benefit transfer (EBT) system that virtually eliminates the opportunity for recipients to convert food assistance into drugs. 2)Small Estimated Increase in Caseload . Currently close to 2 million low-income families receive food stamps. According to previous Department of Social Services' (DSS) assumptions about the affected caseload, this bill will increase the number of food stamps recipients by about 840, significantly less than a one percent increase in caseload, and most of these newly eligible participants will be part of families already receiving food assistance. 3)Does the Lifetime Ban Make Sense ? According to a report by the federal Governmental Accountability Office, banning convicted drug felons who have completed their sentences and paid their debt to society from critical public assistance, including food stamps, runs contrary to state and federal initiatives intended to reduce recidivism by easing prisoner reentry and fostering prisoner reintegration into society. The drug felon rule has been the subject of much criticism by drug treatment providers, advocates for the poor and law enforcement organizations because it permanently disqualifies needy persons from receiving assistance and interferes with their recovery. Individuals may be disqualified even if they are in a treatment program and need a healthy diet to succeed, if the conviction occurred long before the time they needed assistance, or if they have no current substance problem. A report by the Sentencing Project concluded, "The lifetime welfare ban . . . makes the possibility of returning to their communities as productive members more difficult than before their conviction, and in some cases improbable." The Sentencing Project also noted a disparate impact of the rule on women of color, since 46% of women convicted of felony drug offenses are African-American or Latina. 4)Related Legislation. AB 828 Page 3 a) AB 1756 (Swanson), 2010, was identical to this bill and was held on the Senate Appropriations Suspense file. b) AB 1198 (Swanson), 2009, a bill that would have removed the lifetime food stamp ban for former drug felons who met certain criteria, was held on the Senate Appropriations Committee Suspense File. c) AB 1996 (Swanson), 2008, a substantially similar bill to AB 1198 was vetoed by the governor. In his veto message he stated, "Extending food stamp eligibility to drug dealers or traffickers, upon the condition that they engage in drug treatment, will not ensure these individuals will stop selling or trafficking illegal drugs. Therefore, this bill does not provide a targeted approach to the right population and does not ensure adequate public safety protections." d) AB 508 (Swanson), 2007, would have repealed the lifetime disqualification from food stamps for persons convicted of specified felonies involving controlled substances. The bill was vetoed. In his veto message, the governor noted that "the current requirement for drug-related felons to participate in a drug treatment program, or provide evidence that drug usage has ceased, remains a viable intervention prior to eligibility in the Food Stamp Program." AB 1996 has addressed these concerns by mirroring the eligibility requirements of AB 1796 (see below) which was signed by the governor in 2004. e) AB 1796 (Leno), Chapter 932, Statutes of 2004, enacted a partial opt-out for food stamps, covering only persons convicted of use or possession crimes and requiring proof of treatment or cessation of use. The passage of that bill provided eligibility for an estimated 57.5% for the otherwise eligible drug felon caseload. AB 1996 would extend eligibility to the remaining 42.5 percent. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081 AB 828 Page 4