BILL ANALYSIS Ó AB 191 Page 1 Date of Hearing: April 2, 2013 ASSEMBLY COMMITTEE ON HUMAN SERVICES Mark Stone, Chair AB 191 (Bocanegra) - As Introduced: January 28, 2013 SUBJECT : CalFresh: categorical eligibility SUMMARY : Requires the California Department of Social Services (DSS), 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 benefits under the Medi-Cal program. EXISTING LAW 1)Establishes the CalFresh program, through which federal Supplemental Nutrition Assistance Program (SNAP) benefits are administered and provided to eligible participants. 2)Establishes the CalWORKs program, through which counties provide cash assistance and support services to eligible low-income families and individuals. 3)Deems needy households categorically eligibility for CalFresh provided that the household meets all federal SNAP eligibility requirements that would make all members of the household eligible for CalWORKs or other cash aid programs such as General Assistance or General Relief. 4)Provides that households with an elderly or disabled member or where all members receive cash aid must only meet a net income determination test, whereas households without an elderly or disabled member must meet both gross and net income eligibility determination tests. 5)Provides that any child who is eligible for federal SNAP benefits is automatically certified to receive free school meals without an additional application. 7 U.S.C. §2020(u)(2)(A). 6)Provides for the Medi-Cal program, administered by the State Department of Health Care Services, under which medical benefits are provided to recipients of public assistance and AB 191 Page 2 other eligible low-income persons. FISCAL EFFECT : Unknown BACKGROUND CalFresh benefits, which are entirely funded by the federal government through the Supplemental Nutrition Assistance Program (SNAP), are made available on a monthly basis for food purchase through an ATM-like electronic benefits transfer (EBT) card. The United States Department of Agriculture (USDA) sets specific eligibility requirements for SNAP programs across the United States, including a gross and net income asset test, work requirements, and other documentation requirements. The maximum allowable gross income is 130% of the Federal Poverty Level (FPL). Households with elderly or disabled members are not subject to gross income criteria but must have a net monthly income at or below 100% of the FPL. Other households must meet both gross and net monthly income tests. Additionally, resources, such as cash on hand, generally cannot exceed $2,000, or $3,250 for households in which there is a household member who has a disability or is 60 years of age or older. CalFresh is administered locally by county welfare departments, and the federal, state, and county governments share in the cost of administration of the program. The monthly average CalFresh benefit per household is $339 ($151 per person), benefitting around 1.6 million households in California. The average monthly enrollment for Medi-Cal is 7.5 million Californians. According to California Food Policy Advocates (CFPA), of the 2.5 million Medi-Cal beneficiaries who are currently eligible for CalFresh, only 1.3 million actually participate in the program. Categorical eligibility Longstanding federal regulations established CalFresh categorical eligibility based on receipt of cash aid under the Temporary Assistance to Needy Families (TANF) block grant, administered in California as CalWORKs. In 1999, the USDA issued guidance that broadened that option under the 1996 welfare reform law, expanding the option under categorical eligibility to include receipt of, or eligibility for, services as well as cash. 7 C.F.R. § 273.2(j)(2). Additionally, children in families that are eligible for CalFresh benefits are automatically certified to receive free and reduced meals at AB 191 Page 3 school. ------------------------------------------------------------------------ |Nationwide, 43 other states have implemented some form of broad-based | |categorical eligibility. Twenty-seven other states have increased | |access to SNAP benefits by removing the asset test and raising the | |gross income limit. | ------------------------------------------------------------------------ Need for this bill Author's statement: "Although nutrition is a critical component of health and wellbeing, many Medi-Cal recipients who are currently eligible for CalFresh do not participate. To ensure that low-income households can support healthy living, nutrition assistance should be offered hand-in-hand with Medi-Cal. Only half of eligible Californians participate in CalFresh, in part because of stigma, a burdensome application, or misinformation regarding eligibility. As Californians struggle to make ends meet, it is critical that they receive nutrition assistance." According to the California Food Policy Advocates: "Food insecurity continues to be a struggle faced by too many California families. We must work to continue implementing strategies that reduce barriers to accessing nutrition benefits. Many Californians who are eligible for, but not participating in, CalFresh may be receiving other public benefits, such as Medi-Cal. Efforts to ensure that low-income families receive a package of benefits that includes CalFresh and supports their overall health and well-being are furthered by improved alignment between programs." AB 191 Page 4 COMMENTS : Recent legislation removed some 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. Still, while statewide and local efforts have been instrumental in increasing CalFresh participation rates through outreach and education, barriers to access-both real and perceived-still exist and contribute to California's historically low participation rate. Based on the Department of Social Services Food Stamp Program Participation and Benefit Issuance Report, over four million Californians were participating in CalFresh as of January 2013. However, it has been determined by the US Department of Agriculture (USDA) that nearly twice as many Californians meet the federal SNAP eligibility requirements, but are not participating in CalFresh. This bill would make households with at least one Medi-Cal recipient categorically eligible for CalFresh by raising the CalFresh gross income test for these households 200% FPL. This will ensure that the current gross income test of 130% FPL does not prevent high need households with a Medi-Cal recipient who are otherwise eligible for Calfresh from applying. RELATED LEGISLATION AB 1560 (Fuentes) 2012, was identical to this bill. It was held on the suspense file in Senate Appropriations Committee. AB 433 (Beall) Chapter 623, Statutes of 2008, established categorical eligibility for CalFresh benefits for individuals at or below 130% of the federal poverty level, regardless of the level of their assets. Initial versions included categorical eligibility for Medi-Cal beneficiaries as well, but this language was stripped from the final version of the bill. AB 2205 (Evans) 2006, would have established categorical eligibility for CalFresh for recipients of Medi-Cal if they were eligible for or receiving services from the CalWORKs program. This bill was vetoed by the governor. REGISTERED SUPPORT / OPPOSITION : AB 191 Page 5 Support AARP California Catholic Conference of Bishops California Commission on Aging California Pan-Ethnic Health Network (CPEHN) California School Employees Association Coalition of California Welfare Rights Organizations, Inc. Laborers' International Union of North America Locals 777 & 792 Lutheran Office of Public Policy - California National Association of Social Workers, CA Chapter (NASW-CA) San Diego Hunger Advocacy Network & San Diego Hunger Coalition The Food Bank of Contra Costa and Solano Western Center on Law and Poverty 1 individual Opposition None on file Analysis Prepared by : Myesha Jackson / HUM. S. / (916) 319-2089