BILL ANALYSIS Ó
SB 43
Page 1
SENATE THIRD READING
SB 43 (Liu)
As Amended August 26, 2011
Majority vote
SENATE VOTE :39-0
HUMAN SERVICES 6-0 APPROPRIATIONS 12-0
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|Ayes:|Beall, Jones, Ammiano, |Ayes:|Fuentes, Blumenfield, |
| |Grove, Hall, Portantino | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Seeks to make the state's CalFresh Employment and
Training program (CalFresh E&T) more effective and equitable.
Specifically, this bill :
1)Requires counties to screen work registrants to determine
whether they will participate in, or be deferred from CalFresh
E&T.
2)Requires an individual to be deferred from mandatory placement
in the CalFresh E&T program if he/she satisfies any of the
federally mandated criteria, or if he/she resides in a
federally determined work surplus area. Allows a work
registrant, who is deferred, to request to enroll in the
CalFresh E&T program as a voluntary participant.
3)Requires a county that participates in the CalFresh E&T
program to demonstrate how it is effectively using the
CalFresh E&T funds for each component that the county offers,
including, but not limited to, self-initiated workfare, work
experience or training, education, job search, and the support
services or client reimbursements needed to participate in
these components, as allowed by federal law and guidance.
Clarifies that a county is not required to offer any
particular component.
4)Provides that a county has no duty to provide for workers'
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compensation coverage for the CalFresh E&T program participant
who elects to participate in self-initiated workfare, and that
nothing in this measure shall limit a county's ability to
condition nonmedical benefits.
5)Updates the name of the Food Stamp Employment and Training
program to CalFresh E&T.
6)Expresses the intent of the Legislature to increase meaningful
opportunities for employment and training in the CalFresh E&T
program and to assist CalFresh recipients in meeting the work
requirements under the CalFresh program.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1) It is unknown how many able-bodied adults (age 18 to 49)
without dependents, known as ABAWDs, participants are
discontinued for failure to participate in the CalFresh E&T
program. Assuming, half of the discontinued ABAWDs are
potential CalFresh E&T participants and 25% of those
discontinuances are due to a failure to participate in the
CalFresh E&T program, approximately 3,000 ABAWD CalFresh
recipients are being discontinued each month for failing to
participate.
2) Exempting these recipients from mandatory participation
could result in a $1.3 million increase in federal CalFresh
benefits annually, if the average discontinuance lasts for
three months. The total administrative costs for those
cases would be less than $50,000.
COMMENTS : The author states that:
SB 43 will help CalFresh recipients retain their
eligibility for federal food benefits in tough
economic times and increase meaningful opportunities
in the CalFresh Employment and Training (CalFresh E&T
program) program. The author believes that during
periods of high unemployment, when meeting work
requirements is most difficult, waiving CalFresh E&T
work requirements when federal SNAP work requirements
are waived can help vulnerable Californians maintain
their access to federal food benefits and help retail
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businesses weather economic downturn. The author
points out that, according to the USDA, every $5 in
new SNAP benefits generates $9 in total community
spending. Additionally, the author states that, by
allowing people who are assigned to the CalFresh E&T
to meet their work requirements by volunteering at a
public or private nonprofit agency, such as a school,
food bank, or fire department, the bill encourages
individual initiative and helps local communities
benefit from these volunteers.
SNAP/CalFresh background : In California, 3.6 million people
participate in CalFresh/Supplemental Nutrition Assistance
Program (SNAP). In the last federal fiscal year, California
received $6.8 billion in federal food assistance benefits; yet,
only about half of eligible persons in California participate in
CalFresh. Some advocates argue that the state could be
receiving billions more in food assistance benefits and the
state should take actions to improve food stamp participation
for the benefit of low-income individuals and the state's
economy.
To qualify for SNAP benefits, households must meet income tests,
and some households must meet specified work requirements. SNAP
requires all recipients, unless exempted by law, to register for
work at the appropriate employment office, participate in an
employment and training program if assigned by a state or local
administering agency, and accept an offer of suitable
employment. SNAP beneficiaries are exempted from registering
for work and engaging in employment and training activities if
they are under age 16 or over age 59; physically or mentally
unfit for employment; caring for a child under the age of six
(or 12, in some cases); employed 30 hours a week; or, subject to
and complying with work requirements for other programs, such as
those required by CalWORKs. Additionally, others are exempted
because they are receiving unemployment insurance compensation,
participating in a drug and alcohol treatment and rehabilitation
program, or are students enrolled at least half time (these
students must meet other work participation requirements).
CalFresh E&T program background : The USDA provides annual
funding for program administration for the CalFresh E&T program,
which is designed to help CalFresh participants gain skills,
training, work experience, and secure work. There are two types
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of funding from USDA: a 100% federal amount for states that is
capped; and an uncapped 50-50 (%) federal/state/other
reimbursement program. The 100% funds are allocated to states
based on a formula that takes into account the number of work
registrants in the state. Under the 50-50 formula, the federal
government reimburses states $0.50 of every non-federal dollar
spent on allowable employment and training services or
activities. Non-federal dollars can come from state, county or
city revenue; foundation grants; employer paid costs; private
tuition payments and private funds raised by community-based
organizations. USDA Food and Nutrition Services guidance
indicates that non-governmental revenue is subject to federal
approval for the purposes of obtaining the 50% reimbursement.
In California, counties determine which individuals in a
non-assistance (i.e., non CalWORKs) CalFresh household must
participate in the CalFresh E&T program. Federal law provides
for certain exemptions, but counties can additionally determine
who must participate in the CalFresh E&T program or be exempt
beyond the population determined to be exempt by federal law.
CalFresh E&T programs can include a variety of services and
support for training and employment activities, such as
employment search; general education development; high school
equivalency; job skills training; short-term vocational
training; and, supportive services. In California, individual
counties determine the range of services as well as the rules
governing mandatory and voluntary placements and exemptions.
For federal fiscal year (FFY) 2010, 23 counties in California
participated in the CalFresh E&T program, which totaled $94.5
million. Of that amount, 100% federal funds accounted for $7.5
million; 50/50 federal/county funds (for overmatch for
administration cost and participant reimbursements) accounted
for the remainder. Job search and job club accounted for the
vast majority of expenditures, followed by modest expenditures
in workfare, vocational training, education, and job retention.
On the job training and self-initiated workfare accounted for
negligible amounts. Of the $7.5 million in 100% federal funds,
DSS withheld $808,000 from the federal allocation for covering
state administrative costs and for providing workers'
compensation coverage for Food Stamp Employment Training (FSET)
participants, which DSS typically budgets at around $408,000.
For FFY 2010, DSS reported more than 791,850 work registrants.
Of this population, about 73,859 individuals were expected to
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participate in at least one CalFresh E&T program component.
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089
FN: 0002332