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  








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              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.








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               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  








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              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  








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          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.