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 SB 283 Page 2 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 SB 283 Page 3 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