BILL NUMBER: AB 1747 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2016
INTRODUCED BY Assembly Member Weber
FEBRUARY 2, 2016
An act to add Section 66025.93 to the Education Code, and to amend
Sections 10072, 18904.3, 18904.3 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. 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. The bill would also require
these educational 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.
(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.
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.
(3)
(2) 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.
(4)
(3) 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, each all of the following
shall apply to public and private postsecondary education
institution shall do all of the following:
institutions:
(1) Ensure The institution
shall ensure 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
facilities facility 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.
(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.
(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.
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.
SEC. 4. SEC. 3. 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.
SEC. 5. SEC. 4. 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.