BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 191
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 191 (Bocanegra)
          As Amended  June 27, 2013
          Majority vote
           
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          |ASSEMBLY:  |54-23|(May 29, 2013)  |SENATE: |28-10|(September 9,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    HUM. S.  

           SUMMARY  :  Requires the California Department of Social Services  
          (DSS), to the extent permitted by federal law, to design and  
          implement a program of categorical eligibility for CalFresh, as  
          specified, for any categorically eligible household that  
          includes a member who receives, or is eligible to receive,  
          assistance under the Medi-Cal program.

           The Senate amendments  :  
           
          1)Delete the explicit requirement for DSS to raise the maximum  
            gross income limit allowed in the CalFresh program for  
            purposes of determining eligibility.

          2)Delete all provisions related to the Low-Income Home Energy  
            Assistance Program (LIHEAP).

           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 California Work Opportunity and Responsibility  
            to Kids (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.









                                                                  AB 191
                                                                  Page  2

          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 United States Code  
            Section 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  
            other eligible low-income persons.

           
          FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:

          1)For existing Medi-Cal recipients currently eligible but not  
            participating in CalFresh, and those newly eligible under the  
            bill, potential annual costs of $12.2 million (General Fund)  
            for CalFresh administration and California Food Assistance  
            Program (CFAP) benefits and administration.  Increased federal  
            funding in the range of $375 million in CalFresh benefits,  
            generating $6.7 million (General Fund) through increased sales  
            tax revenue. 

          2)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 (ACA) 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.


          3)For every 100,000 newly eligible children directly certified  
            for free school meals under the National School Lunch Program  
            (SLP) and School Breakfast Program (SBP), increased federal  
            funding of $75 million could be received and state  
            reimbursement of $8 million (General Fund) would be required. 








                                                                  AB 191
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           COMMENTS  :  CalFresh benefits, which are entirely funded by the  
          federal government through the 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 $334 ($153  
          per person), benefitting nearly 1.9 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. 

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          |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 Code of Federal Regulations (C.F.R.) Section  |
          |273.2(j)(2)).  Additionally, children in families that are       |
          |eligible for CalFresh benefits are automatically certified to    |
          |receive free and reduced meals at 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   |








                                                                  AB 191
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          |income limit.                                                    |
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          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 recent data from the Department of Social Services,  
          over four million Californians receive CalFresh benefits.   
          However, it has been determined by the USDA that nearly twice as  
          many Californians meet the federal SNAP eligibility  
          requirements, but are not participating in CalFresh. 

           Need for this bill  :  According to the author, "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."


           Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089 


          FN:  
          0002214