BILL ANALYSIS Ó SENATE HUMAN SERVICES COMMITTEE Senator Carol Liu, Chair BILL NO: AB 1400 A AUTHOR: Committee on Human Services B VERSION: June 16, 2011 HEARING DATE: June 28, 2011 1 FISCAL: To the floor 4 0 CONSULTANT: 0 Hailey SUBJECT CalFresh SUMMARY Brings code references to CalFresh up to date and makes technical changes to bring other code sections up to date. ABSTRACT Current law 1. Establishes in federal law, with conforming state statutes, a program to provide eligible persons with a benefit, in the form of an account accessed with an electronic benefit transfer card, to purchase food. It has been called "food stamps" and is now known, at the federal level, as SNAP, the supplemental nutrition assistance program. 2. Requires the Department of Social Services (DSS) to propose a new name for the food stamp program in California by July 1, 2009; it is now called CalFresh in California. Continued--- STAFF ANALYSIS OF ASSEMBLY BILL 1400 (Human Services Comm.) Page 2 2. Directs the Department of Social Services (DSS) to submit a report to the Legislature, by May 1, 2000, estimating the number of counties that may opt to issue cash benefits using electronic benefits transfer technology. 3. Establishes the California Health and Human Services Agency and provides that the governor shall appoint a secretary to lead it. The agency was at one time named the California Health and Welfare Agency. 4. Establishes a welfare reform steering committee and directs it to report, by spring of 1998, recommended alternative ways to budget for the administration of the state's program to aid families with dependent children, now called California Work Opportunity and Responsibility to Kids (CalWORKs). 5. Suspends an adjustment to the maximum aid payment in CalWORKs for the first three months of the 2004-05 fiscal year. 6. Establishes rates for foster care group homes and includes in statute specific change for the years 1998 through 2001. 7. Directs DSS to revise data collection, by July 1, 1998, to reflect changes in welfare programs brought about by federal welfare reform. 8. Directs DSS to complete an evaluation of the Cal-Learn program by July 1, 2000. This bill 1. Deletes out-dated code sections. 2. Corrects references to the California Health and Human Services Agency. 3. States that the name of the federal supplemental nutrition assistance program (SNAP), as administered in California, shall be CalFresh. 4. Specifies that any reference in any other law to the STAFF ANALYSIS OF ASSEMBLY BILL 1400 (Human Services Comm.) Page 3 food stamp program shall refer to CalFresh and to the CalFresh program. FISCAL IMPACT None BACKGROUND AND DISCUSSION AB 1400 now combines the version of AB 1400 passed by the Assembly and the version of SB 936 (Committee on Human Services) that passed out of the Senate. Both bills provided technical clean-up to provisions of code outdated by changes in program names - such as CalFresh - or by the passage of time. "Food stamps" becomes "CalFresh" The U.S. Congress passed the Food, Conservation, and Energy Act of 2008 (Public Law 110-246), that included a provision to rename the federal food stamp program as the supplemental nutrition assistance program or "SNAP." The act also gave states the option to rename their programs. States could choose to use the new federal name, SNAP, or create their own. California chose to explore other naming options. AB 433 (Beall, Chapter 625, Statutes of 2008) required DSS to rename the food stamp program in consultation with a stakeholder group. The program had evolved over the past several decades, and benefits have not been provided as "stamps" since the 1940s, and now are delivered through an electronic benefit transfer card (EBT) which can be used like a credit card at most food retailers. There was also an increased public awareness and interest in using the program to promote healthier food purchases to reduce incidence of obesity. Additionally, proponents of a name change believed that the continued identification of the program as a "welfare" rather than a "food and nutrition" program played a role in its low participation rate: in California, approximately half of those who are eligible for the program are not participating. STAFF ANALYSIS OF ASSEMBLY BILL 1400 (Human Services Comm.) Page 4 In renaming the program, DSS was to reflect on more of the following concepts: Food stamps are no longer delivered by stamps; Food stamps support healthy living; Food stamps are important to agriculture in California; and, Food stamps would be better viewed as a health and nutrition program than as a welfare program. In 2009, DSS convened a diverse group of stakeholders to develop the new name, and included representatives from agencies working to improve health and reduce diet-related illnesses. DSS also conducted focus groups to test the impact the new name would have on improving the perception of the program among low-income residents, and on increasing program participation. The process was funded with private dollars. Assembly votes Floor: 68-9 Human Services: 5-0 POSITIONS Support: None received Oppose: None received -- END --