Amended in Assembly March 28, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1747

Introduced by Assembly Member Weber

February 2, 2016

An act to add Section 66025.93 to the Education Code, and to amend Sections begin delete 10072, 18904.3, end delete begin insert 18904.3 end insert and 18995 of the Welfare and Institutions Code, relating to food assistance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1747, as amended, Weber. Food assistance: higher education students.

(1) Existing federal law provides for the Supplemental Nutrition Assistance Program (SNAP), known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing state law authorizes a county to deliver CalFresh benefits through the use of an electronic benefits transfer (EBT) system. Existing federal law authorizes counties to participate in the Restaurant Meals Program.

Existing law establishes the Cal Grant Program under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under the program for participating students attending qualifying institutions. Existing law requires each Cal Grant participating institution, as a condition for its voluntary participation in the Cal Grant Program, to annually report to the commission specified information for its undergraduate programs.

This bill would require, as a condition of participation in the Cal Grant Program, each public and private postsecondary educational institution to ensure that surcharge-free transactions are accessible on each campus through the EBT system. begin insert The bill would prohibit these educational institutions from entering into contracts with a bank or financial institution that imposes a fee or surcharge on a person using an EBT card. end insert The bill would also require begin delete these end delete begin insert educational end insert institutions that are located in a county that participates in the Restaurant Meals Program to apply to become an approved food vendor for the program, if the institution operates any qualifying food facilities on campus, or to provide contracting food vendors with specified information about the program.

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(2) Under existing law, a recipient of public assistance benefits may be charged a fee for cash withdrawal transactions using the EBT system, but excludes CalFresh transactions from this fee.

end delete begin delete

This bill would additionally exclude from the fee a transaction processed though a point of sale device or an automated teller machine located on the campus of a public or private postsecondary educational institution.

end delete begin delete

(3)

end delete

begin insert (2) end insert  Existing law requires the State Department of Social Services, if private nonprofit organizations are successful in raising money for CalFresh outreach activities and have secured a local governmental agency to serve as the contracting agency, upon request and subject to approval by the United States Department of Agriculture, to act as their state entity for the receipt of matching funds.

This bill would include public postsecondary educational institutions among the entities that may receive matching funds for conducting CalFresh outreach activities, as specified.

begin delete

(4)

end delete

begin insert (3) end insert  Existing law requires the State Department of Social Services to establish and administer the State Emergency Food Assistance Program, to provide food and funding for the provision of emergency food to food banks, as provided. Existing law creates the State Emergency Food Assistance Program Account within the Emergency Food Assistance Program Fund and requires that moneys in the account, upon appropriation by the Legislature, be used by the program for the purchase, storage, and transportation of food grown or produced in California and for the department’s administrative costs.

This bill would establish the Public Higher Education Pantry Assistance Account in the Emergency Food Assistance Program Fund, and would require that moneys in the account, upon appropriation by the Legislature, be allocated to the department for allocation to food banks that support on-campus pantry and hunger relief efforts serving low-income students, as specified.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

It is the intent of the Legislature to increase the
college graduation rates of low-income Californians and to reduce
the incidence of economic hardship and hunger among low-income
college students.

SEC. 2.  

Section 66025.93 is added to the Education Code, immediately following Section 66025.92, to read:

66025.93.  

(a) As a condition of its participation in the Cal
Grant Program, begin delete each end delete begin insert all of the following shall apply to end insert public and
private postsecondary education begin delete institution shall do all of the
following: end delete begin insert institutions: end insert

(1)  begin delete Ensure end delete begin insert The institution shall ensure end insert that surcharge-free
transactions are accessible on each campus using the electronic
benefits transfer (EBT) system established pursuant to Chapter 3
(commencing with Section 10065) of Part 1 of Division 9 of the
Welfare and Institutions Code.

(2) If the institution is located in a county that participates in
the Restaurant Meals Program established pursuant to Section
2020 of Title 7 of the United States Code, the institution shall do
all of the following:

(A) Apply to become an approved food vendor for the
Restaurant Meals Program, if the institution operates any qualifying
food begin delete facilities end delete begin insert facility end insert on campus.

(B) Annually provide all on-campus food vendors not operated
by the institution with information regarding the Restaurant Meals
Program and the manner in which to apply.

(C) If an on-campus food vendor has been approved to
participate in the Restaurant Meals Program, annually inform
students about the program using information provided by the
State Department of Social Services.

begin insert

(3) The institution shall not enter into a contract with a bank
or financial institution that imposes a fee or surcharge on a person
using an EBT card.

end insert

(b) This section does not require an institution to create, operate,
or maintain an EBT system on behalf of on-campus food vendors.

(c) To the extent any contract would be substantially impaired
as a result of the application of this section, this section shall apply
only to contracts renewed or entered into on or after January 1,
2017.

begin delete

SEC. 3.  

Section 10072 of the Welfare and Institutions Code is
amended to read:

10072.  

The electronic benefits transfer system required by this
chapter shall be designed to do, but not be limited to, all of the
following:

(a) To the extent permitted by federal law and the rules of the
program providing the benefits, recipients who are required to
receive their benefits using an electronic benefits transfer system
shall be permitted to gain access to the benefits in any part of the
state where electronic benefits transfers are accepted. All electronic
benefits transfer systems in this state shall be designed to allow
recipients to gain access to their benefits by using every other
electronic benefits transfer system.

(b) To the maximum extent feasible, electronic benefits transfer
systems shall be designed to be compatible with the electronic
benefits transfer systems in other states.

(c) All reasonable measures shall be taken in order to ensure
that recipients have access to electronically issued benefits through
systems such as automated teller machines, point-of-sale devices,
or other devices that accept electronic benefits transfer transactions.
Benefits provided under Chapter 2 (commencing with Section
11200) of Part 3 shall be staggered over a period of three calendar
days, unless a county requests a waiver from the department and
the waiver is approved, or in cases of hardship pursuant to
subdivision (p).

(d) The system shall provide for reasonable access to benefits
to recipients who demonstrate an inability to use an electronic
benefits transfer card or other aspect of the system because of
disability, language, lack of access, or other barrier. These
alternative methods shall conform to the requirements of the
Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.),
including reasonable accommodations for recipients who, because
of physical or mental disabilities, are unable to operate or otherwise
make effective use of the electronic benefits transfer system.

(e) The system shall permit a recipient the option to choose a
personal identification number, also known as a “PIN” number,
to assist the recipient to remember his or her number in order to
allow access to benefits. Whenever an institution, authorized
representative, or other third party not part of the recipient
household or assistance unit has been issued an electronic benefits
transfer card, either in lieu of, or in addition to, the recipient, the
third party shall have a separate card and personal identification
number. At the option of the recipient, he or she may designate
whether restrictions apply to the third party’s access to the
recipient’s benefits. At the option of the recipient head of
household or assistance unit, the county shall provide one electronic
benefits transfer card to each adult member to enable them to
access benefits.

(f) The system shall have a 24-hour per day toll-free telephone
hotline for the reporting of lost or stolen cards that will provide
recipients, at no additional cost to the recipient, with information
on how to have the card and personal identification number
replaced, and that will allow an authorized representative or head
of household to access, over the telephone, the transaction history
detail for at least the last 10 transactions and to request that the
transaction history detail for at least the past two months be sent
by mail.

(g) The system shall have an Internet Web site that will provide
recipients, at no additional cost to the recipient, with information
on how to have the card and personal identification number
replaced, and that will allow an authorized representative or head
of household to view the transaction history detail for at least the
last 10 transactions and to request that the transaction history detail
for at least the past two months be sent by mail.

(h) In addition to the ability to receive transaction history detail
pursuant to subdivisions (f) and (g), a county human services
agency shall make available to an authorized representative or
head of household, at no additional cost to the authorized
representative or head of household, all electronic benefit
transaction history details that are available to the county human
services agency within 10 business days after a request has been
received by the agency.

(i) (1) A recipient shall not incur any loss of electronic benefits
after reporting that his or her electronic benefits transfer card or
personal identification number has been lost or stolen. The system
shall provide for the prompt replacement of lost or stolen electronic
benefits transfer cards and personal identification numbers.
Electronic benefits for which the case was determined eligible and
that were not withdrawn by transactions using an authorized
personal identification number for the account shall also be
promptly replaced.

(2) A recipient shall not incur any loss of cash benefits that are
taken by an unauthorized withdrawal, removal, or use of benefits
that does not occur by the use of a physical EBT card issued to the
recipient or authorized third party to directly access the benefits.
Benefits taken as described in this paragraph shall be promptly
replaced in accordance with the protocol established by the
department pursuant to paragraph (3).

(3) The State Department of Social Services shall establish a
protocol for recipients to report electronic theft of cash benefits
that minimizes the burden on recipients, ensures prompt
replacement of benefits in order to minimize the harm to recipients,
and ensures program integrity. This protocol may include the
automatic replacement of benefits without the need for recipient
reporting and verification.

(j) Electronic benefits transfer system consumers shall be
informed on how to use electronic benefits transfer cards, how to
protect their cards from misuse, and where consumers can use their
cards to withdraw benefits without incurring a fee, charge, or
surcharge.

(k) The electronic benefits transfer system shall be designed to
inform recipients when the electronic benefits transfer system does
not function or is expected not to function for more than a one-hour
period between 6 a.m. and midnight during any 24-hour period.
This information shall be made available in the recipient’s preferred
language if the electronic benefits transfer system vendor contract
provides for services in that language.

(l) Procedures shall be developed for error resolution.

(m) No fee shall be charged by the state, a county, or an
electronic benefits processor certified by the state to retailers
participating in the electronic benefits transfer system.

(n) Except for CalFresh transactions and transactions processed
though a point of sale device or an automated teller machine
located on the campus of a public or private postsecondary
educational institution pursuant to Section 66025.93 of the
Education Code, a recipient may be charged a fee, not to exceed
the amount allowed by applicable state and federal law and
customarily charged to other customers, for cash withdrawal
transactions that exceed four per month.

(o) The electronic benefits transfer system shall be designed to
ensure that recipients of benefits under Chapter 2 (commencing
with Section 11200) of Part 3 have access to using or withdrawing
benefits with minimal fees or charges, including an opportunity
to access benefits with no fee or charges.

(p) A county shall exempt an individual from the three-day
staggering requirement under subdivision (c) on a case-by-case
basis for hardship. Hardship includes, but is not limited to, the
incurrence of late charges on an individual’s housing payments.

(q) A county shall use information provided by the department
to inform recipients of benefits under Chapter 2 (commencing with
Section 11200) of Part 3 of all of the following:

(1) The methods of electronic delivery of benefits available,
including distribution of benefits through the electronic benefits
transfer system or direct deposit pursuant to Section 11006.2.

(2) Applicable fees and charges, including surcharges, consumer
and privacy protections, and liability for theft associated with the
electronic benefits transfer system.

(3) How to avoid fees and charges, including opting for delivery
of benefits by direct deposit and using the electronic benefits
transfer card solely at surcharge free locations.

(4) Where to withdraw benefits without a surcharge when using
the electronic benefits transfer system.

(5) That a recipient may authorize any available method of
electronic delivery of benefits and instructions regarding how the
recipient may select or change his or her preferred method of
electronic delivery of benefits and that the recipient shall be given
the opportunity to select the method prior to the first payment.

(6) That a recipient may be entitled to an alternative method of
delivery if the recipient demonstrates an inability to use an
electronic benefits transfer card or other aspect of the system
because of disability, language, lack of access, or other barrier
pursuant to subdivision (d) and instructions regarding how to
determine whether the recipient qualifies for an alternative method
of delivery.

(7) That a recipient may be entitled to an exemption from the
three-day staggering requirement under subdivision (c) on a
case-by-case basis for hardship pursuant to subdivision (o) and
instructions regarding how to determine whether the recipient
qualifies for the exemption.

(r) A county is in compliance with subdivision (q) if it provides
the recipient a copy of the information developed by the
department. A county may provide a recipient information, in
addition to the copy of the information developed by the
department, pursuant to subdivision (q), either verbally or in
writing, if the county determines the additional information will
benefit the recipient’s understanding of the information provided.

end delete

begin delete SEC. 4. end delete

begin insert SEC. 3. end insert   

Section 18904.3 of the Welfare and Institutions Code
is amended to read:

18904.3.  

(a) If a private nonprofit organization or a public
postsecondary educational institution is successful in raising money
for CalFresh outreach activities and has secured a local
governmental agency to serve as the contracting agency, the
department shall, upon request and subject to approval by the
United States Department of Agriculture, act as the organization’s
or institution’s state entity for receipt of matching funds.

(b) Any reduction in federal funding to the state that is due to
the result of any audit of CalFresh outreach contracts or activities
shall be applied to the appropriate local government that served
as the contracting agency for CalFresh outreach activities.

begin delete SEC. 5. end delete

begin insert SEC. 4. end insert   

Section 18995 of the Welfare and Institutions Code is
amended to read:

18995.  

(a) On and after January 1, 2012, the State Department
of Social Services shall establish and administer the State
Emergency Food Assistance Program (SEFAP). The SEFAP shall
provide food and funding for the provision of emergency food to
food banks established pursuant to the federal Emergency Food
Assistance Program (7 C.F.R. Parts 250 and 251) whose ongoing
primary function is to facilitate the distribution of food to
low-income households.

(b) (1) The State Emergency Food Assistance Program Account
is hereby established in the Emergency Food Assistance Program
Fund established pursuant to Section 18852 of the Revenue and
Taxation Code, and may receive federal funds and voluntary
donations or contributions.

(2) Notwithstanding Section 18853 of the Revenue and Taxation
Code, the following shall apply:

(A) All moneys received by the State Emergency Food
Assistance Program Account shall, upon appropriation by the
Legislature, be allocated to the State Department of Social Services
for allocation to the SEFAP and, with the exception of those
contributions made pursuant to Section 18851 of the Revenue and
Taxation Code and funds received through Parts 250 and 251 of
Title 7 of the Code of Federal Regulations, shall be used for the
purchase, storage, and transportation of food grown or produced
in California. Storage and transportation expenditures shall not
exceed 10 percent of the SEFAP fund’s annual budget.

(B) Notwithstanding paragraph (1), funds received by the State
Emergency Food Assistance Program Account shall, upon
appropriation by the Legislature, be allocated to the State
Department of Social Services for allocation to the SEFAP as
described in paragraph (1), and shall, in part, be used to pay for
the department’s administrative costs associated with the
administration of the SEFAP.

(c) (1) The Public Higher Education Pantry Assistance Program
Account is hereby established in the Emergency Food Assistance
Fund established pursuant to Section 18852 of the Revenue and
Taxation Code.

(2) Notwithstanding Section 18853 of the Revenue and Taxation
Code, funds in the Public Higher Education Pantry Assistance
Account shall, upon appropriation by the Legislature, be allocated
to the State Department of Social Services for allocation to food
banks established pursuant to Parts 250 and 251 of Title 7 of the
Code of Federal Regulations that meet both of the following
criteria:

(A) The primary function of the food bank is the distribution
of food to low-income households.

(B) The food bank has identified specific costs associated with
supporting on-campus pantry and hunger relief efforts serving
low-income students.