BILL ANALYSIS                                                                                                                                                                                                    Ó






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       SB 1147                                      
          S
          AUTHOR:        DeSaulnier                                   
          B
          VERSION:       March 27, 2014
          HEARING DATE:  April 8, 2014                                
          1
          FISCAL:        Yes                                          
          1
                                                                      
          4
          CONSULTANT:    Mareva Brown                                 
          7

                                        

                                     SUBJECT
                                         
            CalFresh: customer service standards: performance goals

                                     SUMMARY

           This bill requires the Department of Social Services (DSS),  
          in collaboration with key stakeholders, to establish and  
          periodically revise statewide CalFresh customer service  
          standards and performance goals. It requires DSS to measure  
          annually the progress made toward the execution of the  
          standards and goals, and to make that information publicly  
          available. The bill requires DSS to develop a data  
          management tool that includes specified data, to make  
          public the data from this management tool and to update it  
          at least quarterly within 60 days following the end of each  
          quarter. It requires the department to use data from the  
          tool to measure the progress made towards the standards and  
          goals. The bill makes related findings and declarations.


                                     ABSTRACT  

           Existing law  : 

                                                         Continued---




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          1)   Establishes under federal law the Supplemental  
               Nutrition Assistance Program (SNAP) to promote the  
               general welfare and to safeguard the health and  
               wellbeing of the nation's population by raising the  
               levels of nutrition among low-income households. (7  
               CFR 271.1)

          2)   Establishes in California statute the CalFresh program  
               to administer the provision of federal SNAP benefits  
               to families and individuals meeting specified  
               criteria. (WIC 18900 et seq.)

          3)   Establishes, under federal law, eligibility  
               requirements for receipt of SNAP benefits, including  
               income that is at or below 130 percent of the federal  
               poverty level and is determined to be a substantial  
               limiting factor in permitting a recipient to obtain a  
               more nutritious diet, as specified.  (7 CFR 273.9) 

          4)   Requires a simplified eligibility process for CalFresh  
               enrollment, to include, among other elements,  
               expedited enrollment in Medi-Cal, provisions for  
               tracking data on participants in both programs and  
               requirements for outreach to participants in CalFresh  
               who are eligible, but not enrolled in Medi-Cal. (WIC  
               18925) 

          5)   Requires each county welfare department to carry out  
               the local administrative responsibilities for the  
               CalFresh program, subject to the supervision of the  
               department and to rules and regulations adopted by the  
               department. (WIC 18902)

          6)   Requires that an application and an authorization for  
               participation in CalFresh shall be processed within a  
               period of not more than 30 days from the date of  
               application. (WIC 18911 (a))

          7)   Requires DSS to collect quarterly, expedited service  
               data, on a county-by-county basis, of the number of  
               applications and the disposition of the applications,  
               and to publish those statistics quarterly. (WIC 18913)  
                






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           This bill : 

          1)   Makes various findings and declarations about hunger  
               and food insecurity in California, the importance of  
               the state's CalFresh program and the state's poor  
               participation rate in the CalFresh program.

          2)   Makes various findings and declarations about efforts  
               in other programs and states to improve participation  
               through data-driven policy decisions and performance  
               standards.

          3)   States Legislative intent to establish statewide  
               CalFresh customer service standards and performance  
               goals and to periodically monitor progress toward  
               meeting those goals in order to improve CalFresh  
               participation and access.

          4)   Requires the DSS, in collaboration with key  
               stakeholders, to establish statewide customer service  
               standards and performance goals with regard to  
               CalFresh. 

          5)   Requires DSS to revise the standards and goals to  
               reflect changes in CalFresh performance over time and  
               to measure the progress made toward the execution of  
               the standards and goals on an annual basis.

          6)   Requires DSS to make the standards and goals publicly  
               available for the purpose of informing the Legislature  
               and the public.

          7)   Requires DSS and key stakeholders to take into  
               consideration what is achievable under current funding  
               and, if applicable, the cost impact of improved  
               program efficiency and the need for additional  
               resource investment when developing the customer  
               service standards and performance goals.

          8)   Requires DSS, when appropriate, to use the data made  
               available in the data management tool, as defined, to  
               measure the progress made toward achieving the  
               established standards and goals.

          9)   Requires DSS, in collaboration with key stakeholders,  





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               to develop a data management tool that is dynamic in  
               that it presents data showing change, activity, or  
               progress over time, and the data can be extracted for  
               further analysis.

          10)  Permits DSS to expand upon existing technology for  
               this purpose, including, but not limited to, expansion  
               of the CalFresh data dashboard, if such expansion is  
               feasible and appropriate.

          11)  Requires that the data management tool shall include  
               data presented on a statewide and county-by-county  
               basis to be derived by the department from the  
               Medi-Cal Eligibility Data System (MEDS), the Statewide  
               Automated Welfare System (SAWS), or any other  
               appropriate information management systems.

          12)  Requires the data management tool to include, but not  
               be limited to, all of the following data:

                  a.        Multi-program enrollment, which may  
                    include, but is not limited to, dual eligibility  
                    and dual participation among CalFresh and  
                    Medi-Cal recipients.
                  b.        CalFresh applications received through  
                    multiple channels, including, but not limited to,  
                    which may include in-person, online, and by phone  
                    telephone.
                  c.        CalFresh application and recertification  
                    outcomes, which may include, but is not limited  
                    to, disposition and processing times.
                  d.        CalFresh reapplications, which may  
                    include, but is not limited to, rate of return  
                    within 30, 60, and 90 days.

          13)  Requires that information from the data management  
               tool be made publicly available on an ongoing basis  
               and updated at least on a quarterly basis within 60  
               days following the end of each quarter.

          14)  Requires DSS, in collaboration with key stakeholders,  
               to identify necessary revisions to the data management  
               tool as necessary to fulfill the established statewide  
               customer service standards and performance goals.






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                                  FISCAL IMPACT  

          This bill has not been analyzed by a fiscal committee.

                            BACKGROUND AND DISCUSSION  

           Purpose of the bill

           The author states that the Legislature, administration and  
          counties have taken important steps to improve CalFresh  
          access and participation. Recent changes have focused on  
          enhancing the client experience and more efficiently  
          meeting the growing need for nutrition assistance. Some  
          CalFresh improvements have resulted in statewide change,  
          while others have been adopted by select counties. 

          However, according to the author, such inconsistencies  
          contribute to a fragmented system in which access to  
          CalFresh and the quality of customer service vary by  
          geographic location. Enrolling and participating in  
          CalFresh should be a straightforward, consistent experience  
          for individuals and families throughout the state, the  
          author states. This bill establishes statewide performance  
          goals and customer service standards to provide a more  
          effective, efficient and consistent experience statewide.  
          It also requires the state to establish a statewide  
          measurement tool in order to evaluate the effects of policy  
          changes and guide improvements in the future. 
           
          CalFresh 

           The U.S. Department of Agriculture's (USDA) Supplemental  
          Nutritional Assistance Program (SNAP) funds 100 percent of  
          food benefits to eligible individuals living in this  
          country. The program is administered in California as  
          CalFresh, and administrative funding is allocated through a  
          combination of federal, state and county funds. Specific  
          eligibility requirements for SNAP programs across the  
          country are set by the USDA, including gross- and  
          net-income asset tests for most recipients, work  
          requirements and specific documentation requirements. The  
          maximum gross income allowed to be eligible is 130 percent  
          of the federal poverty level, which the federal government  







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          has set in 2014 as $23,850 for a family of four.<1> (The  
          SNAP maximum therefore would be $31,005 for a family of  
          four or a gross family income of $2,583.75 per month).

          The average monthly benefit for a CalFresh recipient is  
          $153.13 per month, or $5.10 per day. (The maximum monthly  
          CalFresh benefit for a household of four is $632 or $5.27  
          per person, per day). In California, 58 percent of CalFresh  
          recipients are children. Benefits for all families were  
          decreased in November 2013 due to the expiration of a  
          temporary federal increase in benefits during the Great  
          Recession through the American Reinvestment and Recovery  
          Act. The overall CalFresh caseload had grown steadily since  
          2001, including an increase of more than 1 million people  
          between 2010 and 2013, at the peak of the Great Recession. 
           
           Participation rate 

          For years, California has been ranked last in the country  
          in SNAP participation rates, prompting concerns from the  
          USDA, stories in the state's newspapers and many  
          legislative hearings, including two in 2014. 

          In 2011, the most recent data available, just 57 percent of  
          eligible individuals were enrolled in the program, compared  
          to a national average of 79 percent. Additionally,  
          California is tied with Hawaii for the lowest SNAP  
          participation rate in the nation for working poor families  
          who are eligible to receive benefits: Just 44 percent of  
          California's eligible working poor families received  
          CalFresh benefits. The national average was 67 percent.   
          DSS notes that the low CalFresh participation rate  
          significantly impacts California's economy, and  
          particularly in impoverished areas of the state, as every  
          $5 of federal SNAP benefits are calculated to generate $9  
          of local economic activity.

          In 2012, the average CalFresh recipient was 38 years old  
          and the average age of a child receiving CalFresh benefits  
          was 7.5 years. One in five households reported earned  
          income and 7.6 percent had been receiving CalFresh benefits  
          for five or more years. 

          Churn
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          <1> http://aspe.hhs.gov/poverty/14poverty.cfm




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           When an individual or family who is receiving CalFresh  
          benefits is dropped from the program for reasons other than  
          a loss of fiscal eligibility, and then re-applies to the  
          program and is reinstated within 90 days, it is called  
          churn. Typically, this involves a beneficiary who does not  
          return required paperwork completely or on time in order to  
          remain on the program. The process of discontinuing a  
          family from benefits and then re-instating them is  
          time-consuming for both the low-income participant and the  
          counties and costly for the counties. Because of this,  
          recent conversations in California have focused on the  
          state's churn rate, which was 38 percent in the final  
          quarter of 2012, and on individual county rates, which vary  
          somewhat. 
           
          Efforts to improve participation and retention
           
          CalFresh Modernization

          In conjunction with a number of recent legislative changes,  
          the state launched a 'CalFresh Refresh" initiative to  
          streamline the application and certification processes.  
          Among those changes was a shift from quarterly to  
          semi-annual reporting requirements, moving from required  
          face-to-face interviews to a telephone interview option  
          when appropriate, and requiring counties to screen all  
          applicants for expedited service. Another key change was  
          removal of a fingerprint submission requirement in order to  
          receive benefits.


          In 2013, DSS asked counties to develop new initiatives to  
          increase participation in the program and to submit plans  
          to the state detailing those efforts. Most counties focused  
          on outreach to seniors and other vulnerable populations;  
          in-reach to households receiving Medi-Cal; and strategies  
          to reduce churning of cases. DSS notes that addressing the  
          low participation rate has been a priority of the  
          department and Governor in recent years. 

          DSS Data Dashboard








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          In February 2014, DSS released a data dashboard<2>  
          containing information about enrollment growth (persons and  
          households), percent of CalFresh participants who also are  
          receiving Medi-Cal benefits and vice versa, timeliness of  
          approval, churn rates for 30- and 90-day reapplications,  
          and other information. Additionally, the dashboard provides  
          information about active error rates, timeliness for  
          expedited cases and regular processing and demographic data  
          for each county including the number of elderly  
          participants, children under age 18, unemployment rate, and  
          other information.

          The dashboard provides statewide information and  
          information for each of the 58 counties and is updated  
          quarterly. DSS said that the department will monitor county  
          performance in key areas and provide technical assistance,  
          as needed, to improve in-reach and reduce churn. 

           County innovations
           
          In 2012, in response to ongoing concerns about California's  
          poor participation rate, DSS asked each county to provide a  
          three-year plan to increase participation. As for March  
          2013, 51 counties had submitted plans detailing their  
          unique populations and barriers, as well as strategies to  
          remove those barriers. The majority of plans identified  
          common targets to improve participation, including  
          targeting low-income seniors, identifying individuals who  
          participate in the Medi-Cal program but do not receive  
          CalFresh benefits, focusing on reducing churn and targeting  
          outreach to the working poor.
           
          Federal performance standards

           The USDA requires various SNAP standards be met and  
          reported by states. These include an annual overall  
          performance measure calculated for each state by the  
          federal government by multiplying the state's error rate by  
          the state's total value of national allotments. Additional  
          federal standards include a 30-day application processing  
          timeline, a seven-day expedited service timeline and an  
          overall participation rate. The DSS data dashboard includes  
          these federal performance standards.
           
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          <2> http://www.cdsscounties.ca.gov/foodstamps/




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          Related legislation  :

          SB 1002 (de León) 2014, seeks to reduce churn by aligning  
          the Medi-Cal redetermination process with the CalFresh  
          recertification process.  

          AB 6 (Fuentes) Chapter 501, Statues of 2011, eliminated the  
          fingerprinting requirement for CalFresh eligibility,  
          changed reporting requirements from quarterly to  
          semi-annually and established the state's "Heat and Eat"  
          program, which simplified the verification process for  
          utility costs.

          AB 1400, Committee on Human Services. (Chapter 227,  
          Statutes of 2011) established the food stamp program's name  
          in California to be CalFresh and made other streamlining  
          changes.

          AB 537 Arambula, (Chapter 435, Statutes of 2010) permitted  
          farmer's markets to establish a CalFresh EBT authorization  
          system in order to sell fresh produce to beneficiaries. 
           
          Comments:

           This bill would require DSS and its stakeholders to  
          establish statewide customer service standards for CalFresh  
          in order to provide more consistency throughout the state.  
          The bill does not define what a customer service standard  
          is, nor does it define how it differs from a performance  
          goal, which also is required. The California Welfare  
          Directors Association, in a letter to this committee, also  
          urges clarity around the definition of performance  
          standards. 

          Should this bill move forward, prior to being heard in the  
          next committee, staff recommends clarifying both the  
          definitions of "customer service standard," and  
          "performance goal," in order for the department and  
          stakeholders to have clear direction as to how to proceed.
          

                                    POSITIONS  

          Support:       AFSCME
                         Asian Law Alliance





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                         California Association of Food Banks
                         California Catholic Conference of Bishops
                         California Center for Public health Advocacy
                         California Food Policy Advocates
                         California Hunger Action Coalition
                         Calvary Street/Isaiah 58 Ministries 
                         Coalition of California Welfare Rights  
                         Organizations
                         Community Food and Justice Coalition
                         County Welfare Directors Association
                         Donaldina Cameron House
                         Donate Don't Dump
                         Feeding America
                         Hunger Action Los Angeles
                         Hunger Advocacy Network
                         Los Angeles Regional Food Bank
                         Project Open Hand
                         San Diego Hunger Coalition
                         SF-Marin Food Bank
                         Sunrise Community Pantry
                         The Vietnamese Elderly Mutual Assistance  
          Association
                         Women Organizing Resources, Knowledge &  
          Services
                         7 Individuals

          Oppose:   None received.






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