BILL ANALYSIS Ó
AB 1747
Page 1
Date of Hearing: March 29, 2016
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Susan Bonilla, Chair
AB 1747
(Weber) - As Amended March 28, 2016
SUBJECT: Food assistance: higher education students
SUMMARY: This bill requires private and public postsecondary
educational institutions to take a number of steps to facilitate
student access to nutrition programs as a condition of Cal Grant
Program eligibility.
Specifically, this bill:
1)States Legislative intent 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.
2)Requires a public or private postsecondary education
institution, as a condition of its participation in the Cal
Grant Program, to do all of the following:
a) Ensure campus access to surcharge-free transactions
using the electronic benefits transfer (EBT) system, as
specified;
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b) Increase access to and information about the Restaurant
Meals Program on campus, as specified; and
c) Not enter into a contract with a bank or financial
institution that imposes a fee or surcharge on a person
using an EBT card.
3)Specifies that a public or private postsecondary education
institution is not required to create, operate, or maintain an
EBT system on behalf of on-campus food vendors.
4)Stipulates that the provisions of this bill shall apply only
to contracts renewed or entered into on or after January 1,
2017, to the extent any contract would be substantially
impaired as a result of the new requirements.
5)Allows public postsecondary educational institutions that are
successful in raising money for CalFresh outreach activities
to receive matching funds from the United States Department of
Agriculture, as specified.
6)Creates the Public Higher Education Pantry Assistance Program
Account in the Emergency Food Assistance Program, as
specified.
7)Allocates funds in the Public Higher Education Pantry
Assistance account to food banks if:
a) The primary function of the food bank is the
distribution of food to low-income households; and
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b) The food bank has identified specific costs associated
with supporting on-campus pantry and hunger relief efforts
serving low-income students.
EXISTING LAW:
1)Establishes the Electronic Benefits Transfer (EBT) Act, and
defines the EBT system as the program designed to provide
benefits to those eligible to receive public assistance
benefits such as CalWORKs and CalFresh. (WIC 10065 et seq.)
2)Establishes that an EBT recipient may be charged a fee for
cash withdrawal transactions that exceed four per month as
specified by state and federal law and customarily charged to
other customers. (WIC 10072).
3)Establishes under federal law the Supplemental Nutrition
Assistance Program (SNAP) pursuant to the Food Stamp Act of
1964 and establishes, in California statute, the CalFresh
program to administer the provision of federal SNAP benefits
to families and individuals meeting certain criteria, as
specified. (WIC 18900 et seq.)
4)Establishes the Restaurant Meals Program under the SNAP
program to allow eligible homeless, disabled or elderly
recipients to purchase hot, prepared food from participating
restaurants. (7 U.S.C. § 2020)
5)Authorizes the Cal Grant program, administered by the
California Student Aid Commission (CSAC), to provide grants to
financially needy students to attend college. The Cal Grant
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programs include both the entitlement and the competitive Cal
Grant awards. The program consists of the Cal Grant A, Cal
Grant B, and Cal Grant C programs, and eligibility is based
upon financial need, grade point average, residency, and other
eligibility criteria, as specified. (EDC 69430 et seq.)
6)Requires institutions to meet specified criteria in order to
participate in the Cal Grant program, as specified. (EDC
69432.7)
7)Establishes the Emergency Food Assistance Program within the
State Treasury and authorizes the Controller to transfer from
the Personal Income Tax Fund to the Emergency Food Assistance
Program Fund not in excess of the sum of the amounts
designated by individuals as specified. (RTC 18852)
FISCAL EFFECT: Unknown.
COMMENTS:
Electronic Benefit Transfer (EBT): EBT is an electronic system
that automates the delivery, redemption, and reconciliation of
issued public assistance benefits such as CalWORKs. EBT is also
the method for distributing Cal Fresh benefits (formerly known
as Food Stamps and currently known federally as Supplemental
Nutrition Assistance Program (SNAP)). EBT is currently used in
all 50 states. In California, CalWORKs and CalFresh recipients
access their benefits via what has been named the Golden State
Advantage EBT card. Like a bank-issued automated teller machine
(ATM) card, the cardholder slides this card through a
point-of-sale (POS) device, or uses the card at an ATM.
Under existing law, the electronics benefit processor cannot
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charge a recipient a fee for cash transactions until after the
fourth transaction within a month; however surcharges for
subsequent transactions currently range from $1.00 to $3.50. In
2014-15, low-income Californians paid more than $19 million in
EBT related surcharge fees to banks, according to data from the
California Department of Social Services.
CalFresh: CalFresh benefits are funded entirely by the federal
government through the Supplemental Nutrition Assistance Program
(SNAP), and the United States Department of Agriculture (USDA)
sets specific eligibility requirements for SNAP programs across
the United States, including a gross and net income test, work
requirements, and other documentation requirements. The maximum
allowable gross income is 200% of the Federal Poverty Level
(FPL). Households with elderly or disabled members are not
subject to gross income criteria but must have a net monthly
income at or below 100% of the FPL. Other households must meet
both gross and net monthly income tests. CalFresh is
administered locally by county human services agencies, and the
federal, state, and county governments share in the cost of
administration of the program.
Benefits are made available on a monthly basis for food purchase
through an ATM-like electronic benefits transfer (EBT) card.
However, unlike other types of benefits that may be accessed
through an EBT card, CalFresh benefits cannot be withdrawn in
cash at point-of-sale terminals or at ATM machines. CalFresh
benefits can only be used to purchase food items to be prepared
and consumed at home, as well as seeds and plants that can be
grown at home and produce food. The average monthly benefit for
a CalFresh recipient is $144.35 per month, or $4.81 per person
per day.
Restaurant Meal Program: Under SNAP rules, recipients are
limited to purchasing only non-prepared food items; however
people who are homeless, elderly, or who have disabilities are
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less able to use SNAP food benefits in traditional ways due to
the lack of necessary tools, appliances or physical abilities
required to prepare their own meals. As a result of this, SNAP
allows states to choose whether or not to offer a Restaurant
Meal Program option, which allows SNAP recipients to purchase
hot prepared food in authorized restaurants. California
operates the largest Restaurant Meal Program and has allowed
counties to utilize Restaurant Meal Programs as an option since
2003.
Cal Grant Program: The Cal Grant Entitlement Program guarantees
financial aid awards to recent high school graduates and
community college transfer students who meet financial,
academic, and other eligibility requirements. The state also
provides a relatively small number of competitive Cal Grants to
students who do not qualify for entitlement awards; these awards
are capped at $22,500, half of which are set aside for community
college students. Cal Grants cover full systemwide tuition at
the public universities for up to four years and partly
contribute to tuition costs at nonpublic institutions.
Food insecurity: Student hunger contributes to lower
participation rates among low income students, and as such,
students who are unable to meet their basic needs are less
likely to perform as well in college or may be forced to drop
out before graduating. According to a recent Washington Post
article, the number of food banks opening on university and
college campuses around the country is on the rise. A recent
study conducted by the California State University system found
that as much as 24% of the student population is food insecure,
though exact numbers are unknown.
Need for this bill: According to the author, "Students from
working class families and impoverished homes are some of best
and brightest in the United States. For these young people,
going to college may offer their only avenue to exit poverty.
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However, an increasing number of students face homelessness and
food insecurity that, ultimately, hinders their success in
college while increasing the likelihood of an incomplete
post-secondary education. With everything that California has
invested in higher education, students continue to face higher
costs to attend California's colleges and universities. [This
bill] will help curb additional hardship while increasing a
student's ability to complete college. [This bill] is a first
step towards alleviating student food insecurity by enacting
several proposals that surfaced at the Assembly Select Committee
on Campus Climate hearing in November 2015. At this hearing,
the select committee heard about many issues related to student
food insecurity and student homelessness from colleges and
universities in San Diego County. It also became evident that
every college and university handles these issues differently.
[This bill] was conceived to help colleges and universities
address these issues."
According to the bill's sponsor, the Western Center on Law &
Poverty, "[This bill] seeks to address the growing incidence of
hunger among low-income college students in California by giving
the state several new tools to draw down federal resources and
improve coordination between college campus anti-hunger efforts
and those in their communities. [This bill] offers a few small
steps to reduce hunger and increase college opportunity for
low-income Californians by maximizing federal food assistance
received and spent in California."
Opposition: According to organizations writing in opposition to
this bill, the bill could harm students who do not receive EBT
benefits by restricting on-campus ATMs for financial
institutions that charge fees on "foreign" transactions. In
addition to this, these organizations assert that a framework
already exists for EBT ATM transactions, and thus, the bill
should focus on food vendors instead of ATMs. Concerns were
also raised in opposition to the bill regarding the broad nature
of the bill's current language as it pertains to the type of
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contract entered into by a postsecondary educational institution
and a bank or financial institution that charges for EBT
transactions.
PRIOR LEGISLATION:
AB 832 (Weber), 2013, would have required all convenience stores
and bookstores at the California State University, the
University of California, and community colleges to accept the
use of EBT cards. It died in the Assembly Human Services
Committee.
AB 756 (Mitchell), 2011, would have prohibited surcharges on ATM
withdrawals and POS transactions for CalWORKs recipients when
they use their state-issued EBT card. It died in the Assembly
Human Services Committee.
DOUBLE REFERRAL . This bill has been double-referred. Should
this bill pass out of this committee, it will be referred to the
Assembly Higher Education Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
American Federation of State, County and Municipal Employees
(AFSCME)
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California Association of Food Banks
California Federation of Teachers (CFT)
California Food Policy Advocates (CFPA)
County Food Access Coalition
California Immigrant Policy Center (CIPC)
California Primary Care Association (CPCA)
California State Student Association (CSSA)
Coalition of California Welfare Rights Organizations, Inc.
Courage Campaign
Food Bank of Contra Costa & Solano
National Association for the Education of Homeless Children &
Youth (NAEHCY)
National Association of Social Workers, CA Chapter (NASW-CA)
Orange County Food Access Coalition
St. Anthony Foundation
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University of California Student Association
Western Center on Law & Poverty - co-sponsor
Opposition
California Bankers Association (CBA)
California Credit Union League (CCUL)
Analysis Prepared by:Kelsy C. Castillo / HUM. S. / (916)
319-2089