BILL ANALYSIS Ó SENATE HUMAN SERVICES COMMITTEE Senator Carol Liu, Chair BILL NO: AB 828 A AUTHOR: Swanson B VERSION: As introduced HEARING DATE: June 14, 2011 8 FISCAL: Appropriations 2 8 CONSULTANT: Park SUBJECT Food stamps: eligibility: drug felonies SUMMARY Removes restrictions on the ability of convicted drug felons to receive CalFresh benefits, based on the type of conviction, and whether they have participated, completed, enrolled, or been placed in a government-recognized drug treatment program, and makes them eligible for CalFresh benefits, provided that they otherwise meet the program's eligibility criteria. ABSTRACT Existing federal and state law: 1.Provides for the federal Supplemental Nutrition Assistance Program (SNAP), formerly the Food Stamp Program, also known in California as the CalFresh Program, under which food assistance benefits are allocated to the state by the federal government are distributed to eligible individuals by each county. 2.Prohibits, under federal law, applicants for SNAP or Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 2 benefits funded by Temporary Assistance for Needy Families (TANF) funds from qualifying if they have been convicted of a felony crime involving controlled substances, but allows states to opt out of the disqualification in whole or part. 3.Opts into the federal prohibition on SNAP eligibility for persons convicted of drug trafficking, as defined, or who have been convicted of soliciting, inducing, encouraging or intimidating a minor to participate in any such crimes. 4.Opts out of the federal prohibition on CalFresh eligibility for individuals convicted of a use or possession-related drug felony, as defined, who can prove completion, participation in, enrollment in, or placement on a waiting list for a government-recognized drug treatment program, or provide other evidence that illegal use of controlled substances has ceased. This bill: 1.Requires California to opt out of the federal lifetime ban on convicted drug felons for CalFresh eligibility. 2.Removes the requirement that specified drug felons demonstrate participation in, enrollment in, or placement on a waiting list for a government-recognized drug treatment program, or provide other evidence that illegal use of controlled substances has ceased, in order to qualify for CalFresh. FISCAL IMPACT According to the Assembly Appropriations Committee, this bill would engender minor absorbable workload to county welfare departments to process additional CalFresh applications, or adjust existing family CalFresh benefits, and would generate up to $1 million in federally funded CalFresh benefits statewide. The committee's analysis also notes unknown General Fund and local tax revenues to the extent that new CalFresh recipients spend funds on taxable goods, and unknown savings, to the extent federal food assistance reduces the need for other kinds of public STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 3 benefits. BACKGROUND AND DISCUSSION Author's statement The author states that California's recidivism rate is 70 percent, largely due to the lack of resources ex-offenders can access when they return to their communities. The author believes that this bill will begin to address the most basic of needs-nutrition, as a means for former offenders to successfully reintegrate into their communities and help support their families. The author contends that this bill will help stimulate the communities that former drug felons return to, pointing to a Moody's Economy's analysis of fiscal stimulus programs, which states that for every $1.00 spent on SNAP benefits, $1.74 is injected back into the economy. The author also contends that the lifetime ban negatively affects children; and, while the children of the formerly incarcerated can still qualify for benefits, a family's funds go toward caring for the entire family, not just the individuals who qualify for federal assistance. CalFresh/SNAP The Supplemental Nutrition Assistance Program, formerly known as the Food Stamp Program, provides food assistance benefits to individuals who meet income and eligibility requirements. The federal government picks up 100 percent of the cost of the food assistance benefit and the federal, state, and county governments share in the administration costs. In California, the program, known as CalFresh, is administered locally by county welfare departments. Currently, more than 3 million low-income Californians receive food assistance benefits. The average SNAP benefit for a family of three is about $341 per household. The lifetime ban on food assistance for persons with felony drug convictions was included as a provision in the 1996 federal welfare reform bill (Section 115 of the Personal Responsibility and Work Opportunity Reconciliation Act). Several groups, including drug treatment providers, advocates for the poor, and law enforcement organizations, have criticized the drug felon rule, because it permanently STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 4 disqualifies otherwise needy persons from receiving food assistance and may interfere with their current or continued recovery. Such groups point out that the lifetime ban on convicted drug felons is compounded over time and does not take into account an individual's track record, time served, or rehabilitation efforts. Notably, SNAP has also gone through significant changes in the time since the federal ban was imposed, including replacing the old paper "food stamps" with an EBT card which provides benefits through a more secure debit card subject to electronic tracking. Other states and federal data Federal law gives states the option to pass legislation to "opt-out" of the federal exclusion completely, or in part, without any repercussions. As of 2010, approximately 40 states passed laws to limit the ban. Of those, 15 states including New York, Kansas, Ohio and Washington have completely lifted the ban. While California initially declined the federal exemption during its welfare-to-work reform in 1997, in 2004, the Legislature passed AB 1796 (Leno), which provided a partial exemption for drug felons convicted of possession and use-related offenses. According to a 2005 report by the federal General Accounting Office (GAO), proportionally more female drug felons than males are affected by the ban. The GAO calculates that about 27 percent of female and 15 percent of all drug offenders released from prison in 2001 in states that had not modified the ban would have met the eligibility requirements and therefore, be affected by the ban. Prior legislation AB 1756 (Swanson) 2010 was identical to this bill. Held in the Senate Appropriations Committee. AB 1198 (Swanson) 2009 included a modified ban which allowed convicted drug felons to apply for food stamps provided they comply with drug treatment provisions. Held in Senate Appropriations Committee. AB 1996 (Swanson) 2008 proposed a modified ban with drug treatment provisions. Vetoed by the Governor. STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 5 AB 508 (Swanson) 2007 proposed a complete opt out of the ban. Vetoed by the Governor. AB 1796 (Leno) Chapter 932, Statutes of 2004, established a partial exemption to the federal ban for individuals convicted of drug use or possession related felonies and required the individual to demonstrate participation in a drug addiction treatment program. PRIOR VOTES Assembly Floor: 46 -30 Assembly Appropriations:11 - 6 Assembly Human Services: 4 - 2 Arguments in support Western Center on Law and Poverty, a co-sponsor of this measure, writes that this ban unfairly punishes parents and individuals who have served their time, are looking to start over and need food assistance. Denying food benefits to parents with prior drug felony convictions hinders their ability to provide and care for their children. Many states have restored partial or full benefits to this vulnerable population. Access to nutritious food through the CalFresh Program prevents recidivism, supports lifelong sobriety and supports parents in rebuilding their relationships with their children. Other supporters state that the bill will help reduce recidivism and hunger in low-income communities, reduce administrative costs and time, and bring about gains in economic activity. The California Association of Food Banks states that, without these benefits, individuals who have already paid their debt to society are unable to secure nutritious food for their families. The County of Alameda states that the current policy undermines the state's interest in helping to rehabilitate ex-felons and support their successful reentry to local communities. Arguments in opposition The California District Attorneys Association (CDAA) writes that it is concerned that these benefits will be used to assist in the sale and procurement of controlled substances. CDAA states that expanding the availability of these benefits to persons convicted of STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 6 trafficking and manufacturing offenses increases the risk that public resources will be used to facilitate criminal activity. POSITIONS Support: Western Center on Law and Poverty (co-sponsor) Women's Policy Institute (co-sponsor) Alameda County Community Food Bank Alameda County, Board of Supervisors American Civil Liberties Union Books Not Bars (Ella Baker Center for Human Rights) California Association of Food Banks California Catholic Conference California Coalition for Women Prisoners California Commission on the Status of Women California Hunger Action Coalition California National Organization for Women California Pan-Ethnic Health Network California Partnership California Public Defenders Association California Rural Legal Assistance Foundation City and County of San Francisco Coalition of California Welfare Rights Organizations County Welfare Directors Association of CA Drug Policy Alliance East Bay Community Law Center Friends Committee on Legislation of California Having Our Say! Homeless Action Center Hunger Action Los Angeles JERICHO Legal Services for Prisoners with Children Los Angeles Community Action Network National Association of Social Workers, California Chapter St. Anthony's, San Francisco St. Mary's Center Stop the Cuts Coalition of Alameda County Transitions Clinic 1 individual STAFF ANALYSIS OF ASSEMBLY BILL 828 (Swanson) Page 7 Oppose:California District Attorneys Association California Narcotic Officers' Association -- END --