BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 191| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. CONTINUED AB 191 Page 2 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 CONTINUED AB 191 Page 3 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 CONTINUED AB 191 Page 4 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 CONTINUED AB 191 Page 5 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 CONTINUED AB 191 Page 6 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 **** END **** CONTINUED