BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 191
          Author:   Bocanegra (D)
          Amended:  6/27/13 in Senate
          Vote:     21


           SENATE HUMAN SERVICES COMMITTEE  :  4-2, 6/25/13
          AYES:  Yee, Evans, Liu, Wright
          NOES:  Berryhill, Emmerson

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/30/13
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines

           ASSEMBLY FLOOR  :  54-23, 5/29/13 - See last page for vote


           SUBJECT  :    CalFresh:  categorical eligibility

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Social Services  
          (DSS) to design and implement a program of categorical  
          eligibility for CalFresh for the purpose of establishing the  
          gross income limit for the federal Temporary Assistance for  
          Needy Families (TANF) and state maintenance of effort funded  
          service for any household that is categorically eligible and  
          includes a member who receives, or is eligible to receive,  
          medical assistance under the Medi-Cal program.



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           ANALYSIS  :    

          Existing law:

          1.Provides for the federal Supplemental Nutrition Assistance  
            Program (SNAP), under which each county distributes nutrition  
            assistance benefits provided by the federal government to  
            eligible households, and the CalWORKs program, under which  
            each county provides cash assistance and other benefits to  
            qualified low-income families and individuals.  In California,  
            federal nutrition assistance benefits are administered through  
            CalFresh.

          2.Provides for the Medi-Cal Program, which is administered by  
            the Department of Health Care Services (DHCS), pursuant to  
            which medical benefits are provided to public assistance  
            recipients and other low-income persons.

          3.Requires DSS to develop a program of categorical eligibility  
            under CalFresh for needy households who meet all other SNAP  
            eligibility requirements, in accordance with federal law.

          This bill requires DSS, to the extent permitted by federal law,  
          to design and implement a program of categorical eligibility for  
          CalFresh for the purpose of establishing the gross income limit  
          for the federal TANF and state maintenance of effort funded  
          service for any household that is categorically eligible, as  
          defined, and includes a member who receives, or is eligible to  
          receive, medical assistance under existing law.

           Background
           
           CalFresh  .  CalFresh food benefits for low-income, needy  
          Californians are wholly funded through the SNAP program at the  
          U.S. Department of Agriculture (USDA). CalFresh is administered  
          locally by county welfare departments, and the federal, state,  
          and county governments share in the cost of administration of  
          the program.

          Generally, eligibility for the program is determined by the USDA  
          and is consistent across the nation, although states may seek  
          waivers to modify some elements of the program.  It includes a  
          gross and net income asset test, work requirements, and other  

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          documentation requirements.  From that information, a caseworker  
          calculates eligibility and benefits based on specified income  
          and deductions. 

           Categorical eligiblity  .  Federal law provides two pathways for  
          SNAP eligibility:  either by meeting federal eligibility  
          requirements, or by being automatically or "categorically"  
          eligible for SNAP, based on being eligible for other low-income  
          assistance programs.  In April 2012, there were 46 million  
          people in 22 million households benefitting from SNAP, according  
          to a summary of the program by the Congressional Research  
          Service in 2012.

          Traditionally across the country, categorical eligibility  
          establishes the eligibility for SNAP benefits through  
          eligibility in the state TANF program or other specified public  
          benefits.  In California, this translates to categorical  
          eligibility for CalFresh benefits if the recipient is eligible  
          for or receiving the CalWORKs benefits, or county-run General  
          Assistance programs.  Additionally, the 1996 welfare reform law  
          permitted states to convey categorical eligibility to recipients  
          of a TANF "benefit," beyond cash aid, based on a wide range of  
          benefits and services.  TANF benefits other than cash assistance  
          typically are available to a broader range of households and at  
          higher levels of income than are TANF cash assistance benefits.   
          In total, 43 jurisdictions have implemented what the USDA has  
          called "broad-based" categorical eligibility.

           Participation rate  .  California's SNAP participation rates have  
          consistently ranked among the lowest in the nation.  In 2010,  
          just 55% of all eligible individuals participated in CalFresh,  
          according to USDA data, which is an improvement over prior  
          years.  Since the beginning of the recession, CalFresh  
          enrollment has increased approximately 21% from FY 2009 to FY  
          2010.  Still, that growth has not met the growing need for  
          nutrition assistance, according to a 2013 report, "Lost Dollars,  
          Empty Plates," published by the California Food Policy  
          Advocates.

          According to the report, more than 4.1 million Californians were  
          participating in CalFresh as of November 2012, up from 3.9  
          million participants a year earlier.  The USDA's target  
          participation rate for states was 71% in 2011.  Between 2004 to  
          2008, CalFresh served approximately one-third of California's  

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          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, 60  
          years or older.

          CalFresh participants received more than $612 million in federal  
          monthly nutrition assistance benefits for eligible children,  
          adults, and seniors, for an average household benefit of $332  
          per month during FY 2012.





           Prior Legislation

           AB 6 (Fuentes, Chapter 501, Statutes of 2011) made a number of  
          broad changes to CalFresh policy, including implementing "Heat  
          and Eat," to draw federal funds and to simplify verification of  
          utility costs for CalFresh applicants.

          AB 1560 (Fuentes, 2012) was identical to this bill.  It was held  
          on the suspense file in the 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.

          AB 2205 (Evans, 2006) would have established CalFresh  
          categorical eligibility for Medi-Cal recipients if they were  
          eligible for or receiving services from the CalWORKs program.   
          This bill was vetoed by Governor Schwarzenegger.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

           For existing Medi-Cal recipients currently eligible but not  
            participating in CalFresh, and those newly eligible under this  
            bill, potential annual costs of $12.2 million (General Fund)  
            for CalFresh administration and California Food Assistance  
            Program (CFAP) benefits and administration.  Increased federal  

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            funding in the range of $375 million in CalFresh benefits,  
            generating $6.7 million (General Fund) through increased sales  
            tax revenue.

           For every 5% of the 600,000 to 700,000 individuals potentially  
            eligible for CalFresh/CFAP (assuming 30% to 35% of the 2  
            million newly eligible Medi-Cal recipients under federal  
            health care reform effective January 1, 2014, would be  
            eligible), annual costs of $3 million to $3.5 million (General  
            Fund) for state benefits and administration.  Increased  
            federal funding in the range of $50 million to $60 million in  
            CalFresh benefits, generating $0.9 million to $1.1 million in  
            increased sales tax revenue.

           For every 100,000 newly eligible children directly certified  
            for free school meals under the National School Lunch Program  
            and School Breakfast Program, increased federal funding of $75  
            million could be received and state reimbursement of up to $8  
            million (General Fund) would potentially be required.  To the  
            extent only a portion of those newly eligible ultimately  
            participate in the program, costs could be considerably less.

           SUPPORT :   (Verified  8/30/13)

          AARP
          AFSCME
          Alameda County Community Food Bank
          Asian Law Alliance
          California Association of Food Banks
          California Catholic Conference
          California Food Policy Advocates
          County Health Executives Association of California
          Feeding America San Diego
          Food for People, Inc.
          Greenlining Institute
          Health Access California
          Interfaith Community Services
          Jewish Family Service of Los Angeles
          Jewish Family Service of San Diego
          Latino Coalition for a Healthy California
          National Association of Social Workers
          San Diego Hunger Coalition
          San Francisco and Marin Food Banks
          Second Harvest Food Bank

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          St. Anthony Foundation
          Women Organizing Resources Knowledge & Services

           ASSEMBLY FLOOR  :  54-23, 5/29/13
          AYES:  Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,  
            Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chávez, Chesbro, Cooley, Daly, Dickinson,  
            Eggman, Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez,  
            Gordon, Gray, Hall, Roger Hernández, Jones-Sawyer, Levine,  
            Lowenthal, Medina, Mitchell, Mullin, Muratsuchi, Nazarian,  
            Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  
            Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams,  
            Yamada, John A. Pérez
          NOES:  Achadjian, Allen, Bigelow, Conway, Dahle, Donnelly, Beth  
            Gaines, Gorell, Grove, Hagman, Harkey, Jones, Logue,  
            Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen,  
            Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED:  Holden, Linder, Vacancy


          JL:ej  8/30/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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