BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 283
                                                                  Page  1

          Date of Hearing:   August 14, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 283 (Hancock) - As Amended:  August 5, 2013 

          Policy Committee:                             Human  
          ServicesVote:5 - 2 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill allows individuals convicted of drug-related felonies  
          to receive federal CalFresh (food stamps) benefits.

           FISCAL EFFECT  

          1)Up to $3 million in federal CalFresh benefits to the extent  
            additional individuals receive CalFresh. For every 1000  
            beneficiaries, approximately $1 million in CalFresh benefits  
            are received annually. These benefits are 100% federal funds.  
            The Department of Social Services estimates that this  
            legislation will result in approximately 3000 new cases.

          2)Annual administrative workload costs in excess of $250,000  
            ($125,000 GF) for local welfare departments to administer 3000  
            new CalFresh cases or adjust existing family CalFresh  
            benefits. 

          3)Unknown GF and local tax revenues to the extent that new  
            CalFresh recipients spend funds on taxable goods. 

          4)Unknown savings, to the extent federal food assistance reduces  
            the need for other kinds of public benefits. 

           COMMENTS  

           1)Purpose  . The premise of the original federal law that  
            underlies this bill was that individuals should be prevented  
            from using public benefits to support substance abuse.  
            However, in recent years, the food stamps program moved to an  
            electronic benefit transfer (EBT) system that virtually  








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            eliminates the opportunity for recipients to convert food  
            assistance into drugs. 

           2)Small Estimated Increase in Caseload  . Currently close to 2.5  
            million low-income families and individuals receive food  
            stamps. According to DSS' assumptions about the affected  
            caseload, this bill will increase the number of food stamps  
            cases by about 3000, with an additional 1300 individuals added  
            to existing cases, less than a one percent increase in  
            caseload. 
           
          3)Does the Lifetime Ban Make Sense  ? According to a report by the  
            federal Governmental Accountability Office, banning convicted  
            drug felons who have completed their sentences and paid their  
            debt to society from critical public assistance, including  
            food stamps, runs contrary to state and federal initiatives  
            intended to reduce recidivism by easing prisoner reentry and  
            fostering prisoner reintegration into society. 

            The drug felon rule has been the subject of much criticism by  
            drug treatment providers, advocates for the poor and law  
            enforcement organizations because it permanently disqualifies  
            needy persons from receiving assistance and interferes with  
            their recovery. Individuals may be disqualified even if they  
            are in a treatment program and need a healthy diet to succeed,  
            if the conviction occurred long before the time they needed  
            assistance, or if they have no current substance problem. 

            A report by the Sentencing Project concluded, "The lifetime  
            welfare ban . . . makes the possibility of returning to their  
            communities as productive members more difficult than before  
            their conviction, and in some cases improbable."  The  
            Sentencing Project also noted a disparate impact of the rule  
            on women of color, since 46% of women convicted of felony drug  
            offenses are African-American or Latina. 

           4)Related Legislation  . This bill has been introduced numerous  
            times. In the last three years, the bill died on the Senate  
            Appropriations Suspense File. In 2007 and 2008, the bill was  
            vetoed by Governor Schwarzenegger. In his veto of AB 1996  
            (Swanson) in 2008, the governor noted, "Extending food stamp  
            eligibility to drug dealers or traffickers, upon the condition  
            that they engage in drug treatment, will not ensure these  
            individuals will stop selling or trafficking illegal drugs.  
            Therefore, this bill does not provide a targeted approach to  








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            the right population and does not ensure adequate public  
            safety protections." 
             
             AB 1796 (Leno), Chapter 932, Statutes of 2004, enacted a  
            partial opt-out for food stamps, covering only persons  
            convicted of use or possession crimes and requiring proof of  
            treatment or cessation of use. The passage of that bill  
            provided eligibility for an estimated 57.5% for the otherwise  
            eligible drug felon caseload.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081