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  








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            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  








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          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."


















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           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
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           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