BILL ANALYSIS �
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THIRD READING
Bill No: SB 672
Author: Leno (D)
Amended: 5/28/13
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 6-0, 4/9/13
AYES: Yee, Berryhill, Emmerson, Evans, Liu, Wright
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/13
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
SUBJECT : CalFresh: eligibility: guidelines
SOURCE : San Francisco Living Wage Coalition
Western Center on Law and Poverty
DIGEST : This bill requires the Department of Social Services
(DSS) to issue guidance to simplify the verification of
dependent care expense deductions necessary to determine
eligibility for, or the benefit level of, CalFresh, to the
extent permitted by federal law.
ANALYSIS : Existing federal law provides for the federal
Supplemental Nutrition Assistance Program (SNAP), under which
nutrition assistance benefits are allocated to each state by the
federal government.
Existing state law:
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1. Provides that the CalFresh program, California's federal
allocation is distributed to eligible individuals by each
county.
2. Requires that the eligibility of households be determined to
the extent permitted by federal law, and requires the DSS to
establish a program of categorical eligibility for CalFresh
in accordance with federal law.
3. Requires each county welfare DSS to carry out the local
administrative responsibilities of this program, subject to
the supervision of the DSS and to rules and regulations
adopted by the DSS.
This bill:
1. Requires the DSS to issue guidance to simplify the
verification of dependent care expense deductions necessary
to determine eligibility for, or the benefit level of,
CalFresh, to the extent permitted by federal law.
2. Requires the guidance to establish that dependent care
expenses shall be considered verified upon receipt of a
self-certified statement of monthly expenses, unless federal
law requires, or the county human services agency requests,
additional documentation, as specified.
3. Authorizes a county human services agency to request
additional documentation to verify a dependent care expense
deduction if the verification received is questionable.
Background
Approximately 1.9 million households in the state receive
CalFresh, California's name for the national SNAP, which
provides benefits to low-income households to alleviate hunger
and to improve nutrition and health by helping individuals meet
their nutritional needs. The state also provides benefits
through the California Food Assistance Program to about 47,000
eligible legal immigrants who are not eligible for federal
nutrition assistance.
The CalFresh application process includes completing and filing
an application, being interviewed, and providing information
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subject to verification, such as earned income and dependent
care expenses in order to determine eligibility and benefit
level. County human services departments are required to act
promptly on all applications and provide CalFresh benefits
retroactive to the month of application to those households that
have completed the application process and have been determined
eligible.
Federal laws and regulations provide states the flexibility to
define the scope of allowable expenses for the dependent care
deduction. This bill proposes to simplify the process of
verification of dependent care expenses and earned income to
enable more applicants and recipients of CalFresh to receive the
increased monthly benefits for which they are eligible.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
One-time, minor increased workload to the DSS to issue
guidance to counties. Potential additional costs of about
$150,000 (General Fund) to the extent the development and
adoption of revised regulations are required to implement the
provisions of this bill.
Potential near-term state-reimbursable costs to county
agencies for costs associated with implementation of the
revised eligibility process of verification of dependent care
expenses. Potential administrative cost savings in future
years to the extent the provisions of this bill result in
administrative efficiencies.
Significant local costs to implement the process and
notification requirements related to verification of income.
Additional, unknown, potentially significant one-time costs
for automation changes required to implement the new
processes.
Annual increase in CalFresh and CalWORKs payments due to new
process requiring notification prior to negative actions
being taken.
Streamlining the application process could increase
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participation and benefit levels for low-income families,
significantly increasing the amount of CalFresh (Federal)
benefits received, potentially in the hundreds of thousands
to millions of dollars. For example, if 500 households
claimed the dependent care deduction and experienced a
benefit increase of $118 per month, benefits would increase
by over $700,000 annually. Increased administration
(Federal/General Fund) costs for newly eligible (not
existing) cases would be offset in minor part by increased
sales tax revenue on the sales of taxable goods.
SUPPORT : (Verified 5/28/13)
San Francisco Living Wage Coalition (co-source)
Western Center on Law and Poverty (co-source)
Alameda County Food Bank
Asian Law Alliance
California Alliance for Retired Americans
California Association of Food Banks
California Catholic Conference
California Coalition of Welfare Rights Organizations
California Food Policy Advocates
California National Organization for Women
Laborers' International Union of North America Locals 777 and
792
Low Income Families' Empowerment through Education
San Diego Hunger Coalition
San Francisco Mayor Edwin M. Lee
AL/RM:k 5/28/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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