BILL ANALYSIS Ó
AB 1560
Page 1
Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 1560 (Fuentes) - As Introduced: January 30, 2012
SUBJECT : CalFresh: categorical eligibility
SUMMARY : Requires the Department of Social Services, to the
extent permitted by federal law, to waive the CalFresh gross
income test for any individual who is categorically eligible for
CalFresh and who is a member of a household that receives, or is
eligible to receive, medical assistance under the Medi-Cal
program.
EXISTING LAW
1)Establishes California's CalFresh program to administer the
state's allocation of federal funds under the Supplemental
Nutrition Assistance Program (SNAP), formerly called food
stamps. Counties distribute CalFresh benefits to eligible
participants.
2)Establishes categorical eligibility for the CalFresh program
for needy households that meet all other federal SNAP
requirements in which all members receive or are eligible to
receive cash aid-principally, CalWORKs, general assistance or
general relief.
3)Provides that households without an elderly or disabled member
must meet both a gross and net income determination tests,
whereas households with an elderly or disabled member or where
all members receive cash aid must meet only the net income
determination test.
4)Provides for the Medi-Cal program, administered by the
Department of Health Care Services, providing medical benefits
to low-income persons.
FISCAL EFFECT : Unknown
COMMENTS :
Background : The California Center for Research on Women and
Families cites data showing that, during federal fiscal year
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(FFY) 2010, average monthly CalFresh participation was 3.2
million individuals. California's SNAP/CalFresh participation
rates have consistently ranked among the lowest in the nation.
From 2004 to 2008, CalFresh served approximately one-third of
California's eligible working poor and no more than half of all
eligible individuals in the state. From FFY 2002 to 2006,
CalFresh served no more than 11% of the state's eligible seniors
(individuals 60 years of age and older). Over 70% of CalFresh
households include children, and 75% have female heads of
households. Understanding Nutrition: Primer Module on CalFresh
(October 2011);
http://www.ccrwf.org/wp-content/uploads/2011/10/calfresh-module-c
crwf-nutrition-primer.pdf .
CalFresh eligibility is based on several factors including
income, disability, age, and citizenship status. The maximum
allowable gross income is 130% of the Federal Poverty Guidelines
(FPG). Households with elderly or disabled members are not
subject to gross income criteria but must have a net monthly
income at or below the FPG. Other households must meet both
gross and net monthly income tests.
Federal law gives states options to improve access to nutrition
assistance. Families authorized to receive any benefit or
service funded by the federal Temporary Assistance for Needy
Families (TANF) block grant can be deemed "categorically
eligible" for SNAP benefits and do not need to make a separate
application and meet additional eligibility or paperwork
requirements. While categorical eligibility, or Cat-El, based
upon receipt of cash aid was long a feature of federal policy,
in 1999 the United States Department of Agriculture (USDA)
issued guidance under the 1996 welfare reform law and expanded
the scope of the option to include receipt or eligibility for
services as well as cash. 7 C.F.R. § 273.2(j)(2). In addition,
once eligible for food stamps, the federal Child Nutrition and
WIC Reauthorization Act of 2004 provides that children are
automatically certified to receive free school meals. 42 U.S.C.
§ 1758(b)(2)(C)(i).
In 2008, California used Cat-El to successfully remove the asset
test from CalFresh. AB 433 (Beall), Chapter 625, Statutes of
2008. Other recent legislation removed additional barriers to
CalFresh by, for example, changing from quarterly to semi-annual
reporting, and eliminating finger imaging requirements. AB 6
(Fuentes), Chapter 501, Statutes of 2011.
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Need for this bill : Although nutrition is a critical component
of health and wellbeing, the author notes, "not all Medi-Cal
recipients receive nutrition assistance through CalFresh. To
ensure that low-income households can support healthy living,
nutrition assistance should be offered hand-in-hand with public
health coverage." According to this bill's sponsor, California
Food Policy Advocates (CFPA), "İm]any people that receive
Medi-Cal are likely eligible for CalFresh but may have
misconceptions around their eligibility. Research shows that
some Medi-Cal recipients do not apply for CalFresh because they
believe their income is too high, or they won't qualify if they
are employed."
Under current rules, the general gross income threshold for
CalFresh is 130% of FPG. Presently, Medi-Cal eligibility is not
connected with one specific income threshold; thresholds can
vary for different applicants. This bill would allow all
Medi-Cal recipients with gross incomes up to 200% FPG to be
automatically income-eligible for CalFresh. Alignment would
increase CalFresh participation among current Medi-Cal
recipients, and those who are newly eligible for Medi-Cal in
2014, when Medi-Cal eligibility will include people with incomes
up to 138% of FPG, in addition to select groups that were
previously covered (refugees, people with disabilities, seniors,
etc.). According to USDA data provided by CFPA, as of January
3, 2012, 43 states have used Cat-El to eliminate the asset test
for SNAP eligibility, and 26 of those states have also raised
the income threshold for all recipients up to 200% of FPG. See,
http://www.fns.usda.gov/snap/rules/Memo/BBCE.pdf .
By raising the income threshold only for Medi-Cal recipients,
CFPA notes, the administrative costs of processing the
additional cases would be shared between the Medi-Cal and
CalFresh programs. Moreover, with Cat-El for CalFresh for
Medi-Cal recipients, caseworkers will no longer need to
determine CalFresh income eligibility for these individuals,
resulting in less duplication and increased efficiencies. In
addition, parents will no longer need to fill out an application
for their children to receive free school meals.
CPFA also points out that increasing federally funded CalFresh
benefits provides an immediate stimulus to the economy. The
USDA has shown that every dollar in SNAP/CalFresh expenditures
generates $1.79 in economic activities.
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In a joint support letter, the California Association of
Counties and the County Welfare Directors Association of
California say they support the intent of the bill to increase
nutritional benefits for low-income households, noting that
"İg]ood nutrition and access to food are key components for
health, and increasing eligibility for CalFresh may reduce state
Medi-Cal costs in the long run."
In sum, the author concludes:
Aligning İMedi-Cal and CalFresh] will help to connect
low-income households receiving Medi-Cal to nutrition
assistance for healthy living, and directly certify
children in those households for free school meals,
eliminating excessive paperwork for parents. This
bill will boost CalFresh participation and draw down
federal nutrition benefits that will bolster the state
economy. Nationwide, California has the lowest
participation rate in nutrition assistance; this bill
can help to reverse that trend.
REGISTERED SUPPORT / OPPOSITION :
Support
California Food Policy Advocates (CFPA) (sponsor)
AARP
Alameda County Community Food Bank
American Federation of State, County and Municipal Employees,
AFL-CIO (AFSCME)
California Association of Food Banks
California Catholic Conference
California Commission on Aging
California Communities United Institute
California Family Resource Association
California Pan-Ethnic Health Network
California State Association of Counties
California WIC Association
Catholic Charities of California United
Central California Regional Obesity Prevention Program
Coalition of California Welfare Rights Organizations, Inc.
Congregation Emanu-E1
County of Los Angeles Board of Supervisors
County Welfare Directors Association of California
AB 1560
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Feeding America
Four Winds of Indian Education, Inc.
Hunger Advocacy Network
Jewish Family Services of San Diego
Los Angeles County Board of Supervisors
Prevention Institute
Saint Anthony Foundation
St. Joseph's Family Center (Gilroy, CA)
The San Fernando Valley Interfaith Council
The San Francisco Food Security Task Force
Western Center on Law & Poverty
3 individuals
Opposition
None on file.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089