BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 43| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 43 Author: Liu (D) Amended: 9/2/11 Vote: 21 SENATE HUMAN SERVICES COMMITTEE : 7-0, 4/12/11 AYES: Liu, Emmerson, Berryhill, Hancock, Strickland, Wright, Yee SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/26/11 AYES: Kehoe, Walters, Alquist, Lieu, Pavley, Price, Runner, Steinberg NO VOTE RECORDED: Emmerson SENATE FLOOR : 39-0, 6/1/11 AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon, Cannella, Corbett, Correa, De León, DeSaulnier, Dutton, Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Price, Rubio, Runner, Simitian, Steinberg, Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee NO VOTE RECORDED: Emmerson ASSEMBLY FLOOR : Not available SUBJECT : CalFresh Employment and Training program SOURCE : Western Center on Law and Poverty CONTINUED SB 43 Page 2 DIGEST : This bill seeks to make the state's CalFresh Employment and Training program (CalFresh E&T) more effective and equitable. Assembly Amendments delete language requiring counties that participate in the CalFresh E&T program to screen work registrants for specified reasons, make corrections to legal citations, program names, and legislative acts, and make clarifying changes. ANALYSIS : Existing federal law: 1. Establishes the Supplemental Nutrition Assistance Program (SNAP), formerly the food stamp program, administered by the United States Department of Agriculture (USDA), which imposes specified rules on specified program participants and limits benefits based on those rules. Generally, one group of participants, able-bodied adults (age 18 to 49) without dependents, known as ABAWDs, are limited to three months of food stamp benefits within a 36-month period unless they comply with work requirements. 2. Establishes the CalFresh E&T program, administered by the USDA, which requires state agencies to implement an employment and training program to assist food stamp recipients who are able-bodied to gain skills, training, work or experience to help them obtain employment. Existing state law: 1. Establishes a statewide program, CalFresh, administered by state and local agencies, that enables recipients of aid and other low-income households to receive federal food assistance benefits. 2. Requires the Department of Social Services, to the extent permitted by federal law, to annually seek a federal waiver of the existing food stamp program limitation that stipulates that an ABAWD participant is limited to three months of food stamps in a three-year period unless that participant has met the work CONTINUED SB 43 Page 3 participation requirement. 3. Requires all eligible counties to be included in and bound by this waiver unless a county declines to participate in the waiver request, as specified. 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 workers' compensation coverage for the CalFresh E&T program participants. 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. CONTINUED SB 43 Page 4 Prior Legislation SB 1322 (Liu), 2009-10 Session, in its final version, was nearly identical to SB 43. In his veto message, Governor Schwarzenegger stated: "While I support the state's Food Stamp Employment and Training program and the economic benefits that federal food stamps bring to California, I am troubled that this bill reduces county flexibility and instead requires that they offer self-initiated workfare. Self-initiated workfare weakens the 'work-first' message of the program by allowing recipients to self-direct their own volunteer work. While I wholeheartedly support volunteer work in local communities, it does not build the skills and work experience that is the primary objective of this particular program. For these reasons, I cannot support this measure." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No 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 percent 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. SUPPORT : (Verified 8/30/11) Western Center on Law and Poverty (source) AARP CONTINUED SB 43 Page 5 Alameda County Community Food Bank California Association of Food Banks California Food Policy Advocates California Grocers Association California Hunger Action Coalition California Retailers Association Catholic Charities of California United Coalition of California Welfare Rights Organizations County Welfare Directions Association Hunger Action Los Angeles JERICHO Jewish Family Service of Los Angeles Los Angeles Regional Foodbank Sacramento Hunger Coalition ARGUMENTS IN SUPPORT : Western Center on Law and Poverty (WCLP), the bill's sponsor, writes that participation in CalFresh has almost doubled since the recession began; yet California has the worst food stamp participation rates according to the USDA. WCLP believes that one of the most efficient and humane ways to address under-participation in the program is to ensure that people who are eligible and currently receiving CalFresh benefits can easily retain them when they are eligible under federal law. WCLP notes that aligning federal and local work rules associated with the CalFresh Program and offering new ways for people to meet these work rules will help achieve that. WCLP points out that, during times of high unemployment, the federal government relaxes the mandatory work rules by allowing states to waive work requirements and time limits for ABAWDs, because it is unfair to keep food assistance from people who cannot meet work rules when unemployment is high, and because communities depend on federal funds to continue to infuse their local economies when they are struggling through bad economic times. WCLP notes that, over the past several years, all counties have chosen to 'opt in' to the federal ABAWD waiver, relieving its food stamp participants of this work rule; yet 20 counties imposed harsher sanctions on the same population of unemployed Californians who are required to participate in their CalFresh E&T Programs. WCLP believes that, because work rules and accompanying sanctions are applied CONTINUED SB 43 Page 6 disproportionately across the state, unemployed Californians are losing federal food benefits and going hungry. CTW:mw 9/6/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED