BILL ANALYSIS Ó AB 1930 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1930 (Skinner) As Amended August 18, 2014 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |61-12|(May 23, 2014) |SENATE: |34-0 |(August 19, | | | | | | |2014) | ----------------------------------------------------------------- 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. AB 1930 Page 2 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 AB 1930 Page 3 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 AB 1930 Page 4 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 AB 1930 Page 5 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: AB 1930 Page 6 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. AB 1930 Page 7 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 FN: 0005094