BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1930
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1930 (Skinner)
          As Amended  August 18, 2014
          Majority vote
           
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          |ASSEMBLY:  |61-12|(May 23, 2014)  |SENATE: |34-0 |(August 19,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    HUM. S.  

           SUMMARY  :  Improves access to CalFresh benefits for eligible,  
          needy college students.  Specifically,  this bill  :

          1)States the intent of the Legislature to increase college  
            graduation rates of low-income Californians and to reduce the  
            incidence of economic hardship and hunger among low-income  
            college students.

          2)Requires that an educational program that could be a component  
            of a CalFresh Employment and Training (CalFresh E&T) program,  
            as specified, that is identified by the Department of Social  
            Services (DSS), is considered an employment and training  
            program for purposes of fulfilling federal work requirements,  
            as specified, for students receiving CalFresh.

          3)Requires DSS, in consultation with the office of the  
            Chancellor of the California Community Colleges, offices of  
            the Chancellor of the California State University, University  
            of California Chancellors' offices, the California Workforce  
            Investment Board, county human services agencies, advocates  
            and other stakeholders, as specified, to establish a protocol  
            to identify and verify all potential exemptions to the federal  
            work rule for nutrition assistance and to identify and verify  
            participation in educational programs, including, but not  
            limited to, self-initiated placements, that would exempt a  
            student from the work rule.  Requires that this consultation  
            take place through existing workgroups convened by DSS, to the  
            extent possible.

          4)Require DSS to implement the provisions of this bill via  
            all-county letters or similar instructions no later than  
            October 1, 2015.









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           The Senate amendments  :

          1)Remove references to the Community College Extended  
            Opportunity Programs and Services (EOPS) and, instead, make a  
            more general reference to educational programs, as specified,  
            that are identified by DSS and can qualify a student is  
            meeting the federal student work requirements in order to be  
            eligible for CalFresh.

          2)Require DSS to seek and obtain any necessary federal approval  
            prior to implementing a process for verifying that students  
            meet the federal work rule or exempting students from the work  
            rule for purposes of CalFresh eligibility.

          3)Clarify that provisions in this bill do not do any of the  
            following:

             a)   Require a county human services agency to offer a  
               particular component, support services, or worker's  
               compensation to a student found eligible for an exemption  
               to the work rule;

             b)   Restrict or require the use of federal funds for the  
               financing of CalFresh E&T programs; or

             c)   Require a college or university to provide a student  
               with information necessary to verify eligibility for  
               CalFresh.

           EXISTING LAW  :

          1)Establishes, under federal law, the Supplemental Nutrition  
            Assistance Program (SNAP), pursuant to the Food Stamp Act of  
            1964 and subsequent revisions, and establishes, in California  
            law, the CalFresh program to administer the provision of  
            federal SNAP benefits to low-income families and individuals  
            meeting specified eligibility criteria.  (7 United States Code  
            Section 2011 et seq., Welfare and Institutions Code (WIC)  
            Section 18900 et seq.)

          2)Establishes, under federal law, eligibility requirements for  
            receipt of SNAP benefits, including income that is at or below  
            130% of the federal poverty level (FPL) and is determined to  
            be a substantial limiting factor in permitting a recipient to  
            obtain a more nutritious diet, as specified.  (7 Code of  








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            Federal Regulations (CFR) Section 273.9) 


          3)Prohibits federal Food Stamp Program eligibility for an  
            individual who is enrolled at least half-time in an  
            institution of higher education unless the individual  
            qualifies for an exemption, as specified.  (7 CFR Section  
            273.5)


          4)Establishes the CalFresh E&T program, as authorized by the  
            federal Food and Nutrition Act of 2008, to assist members of  
            CalFresh households in gaining skills, training, work, or  
            experience that will increase their ability to obtain regular  
            employment. (WIC Section 18926.5(a))

          5)Requires that a California county that elects to participate  
            in CalFresh E&T shall screen CalFresh work registrants to  
            determine whether they will participate in, or be deferred  
            from, the program. Requires that an individual be deferred  
            from a mandatory placement in the CalFresh E&T program for a  
            number of specified reasons, including residence in a  
            federally determined work surplus area. (WIC Section 18926)

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee:
                  
          1)Potentially moderate to significant one-time costs (General  
            Fund) for 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 DSS, this would serve to mitigate costs  
            to some degree.

          2)Potentially major non-reimbursable local costs in the millions  
            of dollars (Local) for county human services agencies to  
            consider all potential exemptions (which could include  
            screening students) utilizing the protocol established by 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  
            California State University Pell grants.  As an indicator of  
            possible need, there were 1.1 million students in California  
            community colleges that qualified for a fee waiver in the  








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            2012-13 academic year.

          3)Potential ongoing increase in CalFresh and California Food  
            Assistance Program 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.

           COMMENTS  :  This bill seeks to ensure needy students who are  
          actively participating in their education plans, and who meet  
          all other eligibility requirements for CalFresh, are adequately  
          screened for exemptions from federal work requirements for  
          students applying for or receiving SNAP benefits.

          CalFresh:  Nutrition benefits provided through the CalFresh  
          program are funded entirely by the federal government through  
          the SNAP.  The United States Department of Agriculture (USDA)  
          sets specific eligibility requirements for SNAP programs across  
          the United States, including gross and net income tests, work  
          requirements, and other documentation requirements.  CalFresh is  
          administered locally by county human services agencies, and the  
          federal, state, and county governments share in the cost of  
          administration of the program.  

          The maximum allowable gross income for CalFresh is 130% of the  
          Federal Poverty Level (FPL), and 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.  The average monthly benefit for a CalFresh recipient is  
          $153.13 per month, or $5.10 per person per day.
           
           Food insecurity:  During the past decade, the number of families  
          experiencing food insecurity, meaning they lacked access to  
          enough food for a healthy life for all household members, has  
          increased.  Nationally, the USDA reported an estimated 14.5% of  
          American households were food insecure at least some time during  
          the year 2012.  According to data from the California Health  
          Interview Survey (CHIS), at least four million low-income  
          Californians struggled with food insecurity during 2011-12.  A  
          research brief published in 2012 by the University of  
          California, Los Angeles Center for Health Policy Research and  
          the California Food Policy Advocates noted that in 2009, more  








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          than four in 10 Californian adults, roughly 3.8 million people,  
          who were at or below 200% of the FPL suffered from food  
          insecurity.  Of those, more than one third, or 1.4 million  
          people, reported very low food security, meaning they  
          experienced having to cut back on food.  

          Evidence of the increasing number of food-insecure families in  
          recent years can be seen in the steady climb in the overall  
          CalFresh caseload, which increased by more than one million  
          people between 2010 and 2013, at the peak of the Great  
          Recession.  Still, California's SNAP participation rate has  
          lagged behind the rest of the nation for years, with only 57% of  
          eligible individuals enrolled in the program in 2011, compared  
          to a national average of 79%.  DSS notes that every $5 in  
          federal SNAP benefits is calculated to generate $9 of local  
          economic activity.
           
           Hunger among students:  The problem of hunger on campus was  
          recently highlighted in an April 9, 2014, Washington Post  
          article, which described several students at various four-year  
          universities who quit their college meal plans in order to save  
          money to pay tuition, then found themselves hungry and barely  
          able to afford food.  The article noted that in 2007, Michigan  
          State University started a food bank on campus to help alleviate  
          hunger among students there.  Since then, another 120 colleges  
          and universities have created food banks on their own campuses.   
           

          A January 2014 study conducted by researchers from Oregon State  
          University, Western Oregon University and Benton County Health  
          Department found that six in 10 students on one Oregon  
          university campus were food insecure at least once in the prior  
          year.  The study, Prevalence and Correlates of Food Insecurity  
          Among Students Attending a Midsize Rural University in Oregon,  
          noted that a lower grade point average and fair to poor health  
          were factors associated with food concerns among the college  
          students surveyed.  Low income was also a factor, even for  
          students working more than 40 hours per week.


          SNAP student work rule:  Federal law prohibits students enrolled  
          at least half-time in a college or university from receiving  
          SNAP benefits unless they qualify for an exemption, even when  
          they meet all other eligibility requirements.  In general,  
          students are exempt from the prohibition if they are:








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          1)Younger than age 18 or older than age 50;

          2)Physically or mentally disabled;

          3)Receiving CalWORKs benefits;

          4)Enrolled in school as a result of participation in the Job  
            Opportunities and Basic Skills program;

          5)Employed in a paid position for a minimum of 20 hours per week  
            or, if self-employed, receiving weekly earnings at least equal  
            to the federal minimum wage multiplied by 20 hours;

          6)Participating in a state- or federally-financed work study  
            program during the regular school year;

          7)Participating in an on-the-job training program;

          8)Responsible for the care of a dependent household member under  
            the age of six;

          9)Responsible for the care of a dependent household member who  
            has reached the age of six but is under age 12 when the state  
            agency 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) above.

          10)A single parent enrolled in an institution of higher  
            education on a full-time basis (as determined by the  
            institution) and responsible for the care of a dependent child  
            under age 12; or, 

          11)Participating in a program under the Workforce Investment  
            Act.

          The SNAP student work rule was originally developed to ensure  
          that benefits intended for hungry, low-income students don't go  
          to students who receive support from their families and who  
          wouldn't meet eligibility requirements if they weren't living  
          away from home and considered to be a household of one.  The  
          work requirement assumes that students who are actually needy  
          will engage in work programs to receive an income and be able to  
          better provide for themselves. 









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          Need for this bill:  Throughout a student's life, hunger can be  
          a major barrier to learning and academic success.  Adding to the  
          daily stress most college students experience, the stress that  
          comes from food insecurity often lowers educational  
          participation, and decreases the probability that a student will  
          achieve his or her academic goals.  While the list of exemptions  
          to the student work rule is extensive, and even includes  
          additional employment and training programs that the USDA deems  
          appropriate, most students aren't aware of the exemptions for  
          which they qualify, nor is there currently a process to ensure  
          they are informed of the exemptions.  This bill requires the  
          development of a protocol for identify and verify all potential  
          exemptions to the federal work rule for nutrition assistance and  
          to identify and verify students' participation in educational  
          programs that would exempt them from the work rule in an effort  
          to ensure that needy students aren't denied federal nutrition  
          assistance for which they are eligible.  

          According to the author, "This bill will result in fewer  
          [CalFresh] denials of eligible low-income college students, not  
          only reducing hunger, but bringing in much needed federal food  
          assistance to support disadvantaged students and reinforce our  
          state's investment in their education."
           

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


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