BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1747


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          ASSEMBLY THIRD READING


          AB  
          1747 (Weber)


          As Amended  May 31, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Human Services  |5-1  |Bonilla, Calderon,    |Maienschein         |
          |                |     |Lopez, Mark Stone,    |                    |
          |                |     |Thurmond              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Higher          |11-0 |Medina, Bloom,        |                    |
          |Education       |     |Chávez, Irwin,        |                    |
          |                |     |Jones-Sawyer, Levine, |                    |
          |                |     |Linder, Low,          |                    |
          |                |     |Santiago, Weber,      |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |14-5 |Gonzalez, Bloom,      |Bigelow, Chang,     |
          |                |     |Bonilla, Bonta,       |Jones, Obernolte,   |
          |                |     |Calderon, Daly,       |Wagner              |
          |                |     |Eggman, Eduardo       |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Quirk, Santiago,      |                    |








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          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Requires and authorizes private and public  
          postsecondary educational institutions to take a number of steps  
          to facilitate student access to nutrition programs.


          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 located in a county that participates in the  
            Restaurant Meals Program to increase access to and provide  
            information about the Restaurant Meals Program on campus, as  
            specified.


          3)Specifies that a public or private postsecondary education  
            institution is not required to create, operate, or maintain an  
            Electronic Benefit Transfer (EBT) system on behalf of  
            on-campus food vendors pursuant to provisions of this bill.


          4)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 (USDA), as specified.










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          5)Creates the Public Higher Education Pantry Assistance Program  
            Account in the Emergency Food Assistance Program, as  
            specified.


          6)Allocates funds in the Public Higher Education Pantry  
            Assistance account, as specified, to food banks if:


             a)   The primary function of the food bank is the  
               distribution of food to low-income households; and


             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 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.  (Welfare and Institutions Code Section (WIC) 10065  
            et seq.)


          2)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.)


          3)Establishes the Restaurant Meals Program under the SNAP  
            program to allow eligible homeless, disabled or elderly  
            recipients to purchase hot, prepared food from participating  








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            restaurants.  (7 United States Code Section 2020)


          4)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.  (Revenue and Taxation  
             Code Section (RTC) 18852)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill may result in minor and absorbable costs  
          associated with applying to become an approved vendor for the  
          Restaurant Meals Program.


          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. 


          CalFresh:  CalFresh benefits are funded entirely by the federal  
          government through the SNAP, and the 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  








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          (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  
          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.  


          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  








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          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.   
          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."


          PRIOR LEGISLATION:


          AB 832 (Weber), of 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. 








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          AB 756 (Mitchell), of 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.




          Analysis Prepared by:                                             
                          Kelsy Castillo / HUM. S. / (916) 319-2089  FN:  
          0003317