BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 1930 (Skinner) - CalFresh: student eligibility. Amended: August 4, 2014 Policy Vote: Human Services 3-0 Urgency: No Mandate: Yes Hearing Date: August 4, 2014 Consultant: Jolie Onodera This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1930 would: Require the Department of Social Services (DSS), in consultation with various stakeholders, to establish a protocol to identify and grant all potential student exemptions to student eligibility requirements under the CalFresh Program and to identify and verify participation in the Community College Extended Opportunity Program and Services (EOPS) and other educational programs, as specified, that would exempt a student from the student eligibility rule. Require county human services agencies to consider all potential exemptions to CalFresh eligibility requirements for students utilizing the DSS-established protocol when determining eligibility and benefit level for the CalFresh Program. Fiscal Impact: Potentially moderate to significant one-time costs (General Fund) for the DSS to establish the screening protocol and identify other programs eligible for exemption from the student eligibility rule in consultation with various stakeholders. To the extent the consultation takes place through existing workgroups convened by the DSS would serve to mitigate costs to some degree. Potentially major ongoing state-reimbursable costs in the millions of dollars (General Fund) for county human services agencies to consider all potential exemptions (which would require screening students) utilizing the protocol established by the DSS. For every 100,000 students screened for all potential exemptions assuming 15 minutes per screening would cost about $1.4 million (General Fund). Over 186,000 students receive CSU Pell grants and 75,000 students AB 1930 (Skinner) Page 1 are served in the EOPS program alone. As an indicator of possible need, there were 1.1 million students in California community colleges that qualified for a fee waiver in the 2012-13 academic year. Potential ongoing increase in CalFresh and California Food Assistance Program (CFAP) benefits and administration costs (Federal/General Fund) to the extent the screening protocol results in additional student eligibility for CalFresh. These costs would be offset in part by the associated economic benefit of sales tax revenue generated through the sale of taxable items. Background: Existing federal law establishes the Supplemental Nutrition Assistance Program (SNAP) for the purpose of promoting the general welfare and to safeguard the health and well-being of the nation's population by raising the levels of nutrition among low-income households. (Code of Federal Regulations, Title 7, § 271.1.) State law establishes the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting the eligibility criteria. (Welfare and Institutions Code §§ 18900-18927.) Federal requirements prohibit an individual who is enrolled at least half-time in an institution of higher education from SNAP/CalFresh eligibility, unless the student qualifies for one of the following exemptions: 1. Be younger than age 17 or older than 50. 2. Be physically or mentally unfit. 3. Be receiving TANF (or CalWORKs) benefits. 4. Be enrolled in school as a result of participation in the Job Opportunities and Basic Skills program, as specified. 5. Be employed for a minimum of 20 hours per week, as specified. 6. Be participating in a state or federally financed work study program during the regular school year, as specified. 7. Be participating in an on-the-job training program, as specified. 8. Be responsible for the care of a dependent household member under the age of 6. AB 1930 (Skinner) Page 2 9. Be responsible for the care of a dependent household member who has reached age 6-12 when the DSS has determined that adequate child care is not available to enable the student to attend class and comply with the work requirements of items (5) or (6). 10. Be a single parent enrolled in an institution of higher education on a full-time basis and be responsible for the care of a dependent child under age 12, as specified. 11. Be assigned to or placed in an institution of higher education through a federally identified program, as specified. (CFR, Title 7, § 273.5.) This bill seeks to ensure that low-income college students eligible for CalFresh benefits are properly identified and provided assistance in enrolling for these benefits. Proposed Law: This bill would require the DSS, in consultation with representatives of the office of the Chancellor of the California Community Colleges (CCC), offices of the Chancellor of the California State University (CSU), University of California (UC) Chancellors' offices, the California Workforce Investment Board (CWIB), county human services agencies, and advocates for students and clients, to establish a protocol to identify and grant all potential exemptions to the student eligibility rule under the CalFresh Program and to identify and verify participation in the EOPS and other educational programs that would exempt a student from the student eligibility rule, as specified. Additionally, this bill: Requires county human services agencies to consider all potential exemptions to the student eligibility rule utilizing the DSS-established protocol when determining eligibility and benefit level for the CalFresh Program. Provides that a county human services agency is not required to offer a particular component, support services, or worker's compensation to a student found eligible for an exemption pursuant to the bill's provisions. Provides that the bill's provisions do not require a college or university to provide a student with information necessary to verify eligibility for CalFresh. Requires the DSS to implement by all-county letter or similar instructions no later than October 1, 2015, until regulations are adopted, which shall be no later than AB 1930 (Skinner) Page 3 October 1, 2017. Related Legislation: SB 999 (Liu) 2014 would have required the CCC Chancellor's Office and the DSS to establish detailed guidelines identifying categories of students that may qualify for federal exemptions that would allow them to receive CalFresh benefits. This bill required CCCs to provide specific documentation to students who may qualify for an exemption. This bill was held on the Suspense File of this Committee. Staff Comments: The DSS would incur potentially moderate to significant one-time costs to develop the screening protocol and identify programs exempt from federal student work requirements in consultation with the specified stakeholders. While the bill provides for the consultation to take place through existing workgroups convened by the DSS to the extent possible, the time and resources necessary to complete the mandated tasks would likely not be absorbable, though incorporating the consultation into existing workgroups would serve to provide some efficiencies. By requiring county human services agencies to consider all potential exemptions to the student eligibility rule using the DSS-established protocol, this bill creates a state-reimbursable mandate, potentially resulting in major ongoing costs to the state. While the actual number of students that will be screened is unknown, and the time required to screen each student will be dependent on the specified protocols developed by the DSS, it is estimated the costs could be substantial. For every 100,000 students that have all potential exemptions considered, and assuming 15-minutes per student for consideration of all potential exemptions could cost in the range of $1.4 million (General Fund). Staff notes over 186,000 students receive CSU Pell grants and 75,000 students are served in the EOPS program alone. There were about 1.1 million students in California community colleges that qualified for a fee waiver in the 2012-13 academic year. Although the income threshold for the Board of Governor's fee waiver is slightly higher (roughly 150 percent of FPL) than the income threshold for CalFresh (roughly 130 percent of FPL), this could be used as a general indicator of possible need. To the extent that mandated consideration of all potential exemptions to the student eligibility rule results in additional AB 1930 (Skinner) Page 4 students accessing Cal Fresh benefits, the level of CalFresh benefits and administrative costs could increase. Additional administrative costs would increase commensurate with the participating caseload and ratio of new to existing households receiving benefits. Additional costs to the state would also be partially offset by a likely increase in sales tax revenue. Studies show that low-income families spend a significant portion of their money on food, and increasing CalFresh access would allow them to spend that money on taxable items.