BILL ANALYSIS Ó AB 1747 Page 1 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, | | AB 1747 Page 2 | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------ 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. AB 1747 Page 3 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 AB 1747 Page 4 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 AB 1747 Page 5 (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 AB 1747 Page 6 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. AB 1747 Page 7 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