BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 1747
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          |Author:   |Weber                                                 |
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          |Version:  |May 31, 2016           |Hearing    |June 28, 2016    |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Taryn Smith                                           |
          |:         |                                                      |
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                Subject:  Food assistance:  higher education students


            SUMMARY
          


          Requires and authorizes private and public postsecondary  
          educational institutions to take a number of steps to facilitate  
          student access to the federal Restaurant Meal Program and  
          creates the new Public Higher Education Pantry Assistance  
          Program Account in the Emergency Food Assistance Program.



            ABSTRACT
          
          Existing law:

             1)   Establishes under federal law the Supplemental Nutrition  
               Assistance Program (SNAP) within the US Department of  
               Agriculture (USDA) to promote the general welfare and to  
               safeguard the health and wellbeing of the nation's  
               population by raising the levels of nutrition among  
               low-income households. It establishes SNAP eligibility  
               requirements, including income that is at or below 130  
               percent of the federal poverty level and is a substantial  
               limiting factor in permitting a recipient to obtain a more  
               nutritious diet. (7CFR 271.1; 7 CFR 273.9)









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             2)   Establishes in California statute the CalFresh program  
               to administer the provisions of federal SNAP benefits to  
               families and individuals meeting specified criteria. (WIC  
               18900 et seq.)


             3)   Establishes in the Electronic Benefits Transfer (EBT)  
               Act a system for the distribution and use of public  
               assistance benefits, such as CalFresh, and requires EBT  
               access to be provided through automated teller machines  
               (ATMs), point-of-sale devices and other devices that accept  
               EBT transactions. (WIC 10065 et seq.) 

             4)   Requires California Department of Social Services (CDSS)  
               to act as the state entity for receiving matching funds  
               when a private nonprofit organization is successful in  
               raising money for CalFresh outreach activities and has  
               secured a local governmental agency to serve as the  
               contracting agency, as specified. (WIC 18904.3)


             5)   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 United States Code Section  
               2020)


             6)   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)


          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.











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             2)   Requires each public and private postsecondary education  
               institution located in a county that participates in the  
               Restaurant Meals Program to do all of the following: 


                  a.        Apply and become an approved vendor for the  
                    Restaurant Meals Program, if the institution operates  
                    any qualifying food facility on campus. 
                  b.        Annually provide all on-campus food vendors  
                    not operated by the institution with information about  
                    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 CDSS.


             3)   Requires CDSS to act as the state entity for receiving  
               matching funds 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, as specified.


             4)   Establishes the Public Higher Education Pantry  
               Assistance Program Account in the Emergency Food Assistance  
               Program and requires the funds in the Pantry Account, upon  
               appropriation by the Legislature, to be allocated to the  
               CDSS for allocation to food banks the meet the following  
               criteria: 


                  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. 


            FISCAL IMPACT
          
          According to the Assembly Appropriations Committee, this bill  









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          may result in minor and absorbable costs associated with  
          applying to become an approved vendor for the Restaurant Meals  
          Program.

            BACKGROUND AND DISCUSSION
          
          Purpose of the 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, per the author.   
          However, the author states, 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.  


          Per the author, AB 1747 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. The select committee heard about many  
          issues related to student food insecurity and student  
          homelessness from colleges and universities in San Diego County  
          and it became evident that every college and university handles  
          these issues differently.  AB 1747 was conceived to help  
          colleges and universities address these issues, per the author.


          Food insecurity 


          Food security is defined as having access by all members of the  
          household at all times to enough food for an active, healthy  
          life. Food insecure households are those in which the children  
          or adults or both report limited access to food resulting in  
          reduced quality or variety of diet (low food security), reduced  
          food intake or disrupted eating patterns (very low food  
          security).  


          According to a report issued by the USDA, 14 percent of American  
          households were food insecure at least some time during 2014,  










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          including 5.6 percent with very low food security.<1> Another  
          USDA report indicates that children living in a food insecure  
          household face higher risks of health, psychosocial, and  
          developmental problems compared to children in food secure  
          households.<2>  


          There is increased evidence that low income students  
          experiencing food insecurity are less likely to perform well in  
          college and may be forced to drop out before graduating.  


                 According to a 2014 Washington Post article, the number  
               of food banks opening on university and college campuses  
               around the country has increased from only one in 2007 to  
               121 in 2014.<3>  
                 A study released in 2014 by the California State  
               University system found that over half of students (59%)  
               were food insecure at some point during the previous year.  
               The study also found that having fair or poor health and  
               having earned income below $15,000 per year was associated  
               with food insecurity. In turn, good academic performance  
               was inversely associated with food insecurity, per the  
               study.<4> 

                 According to the 2012 UC Undergraduate Experience  
               Survey, about 25 percent of UC San Diego students report  
               that they "often" or "very often" skip meals in order to  
               save money.  As a result of the survey, the school opened  
             --------------------------
          <1> http://www.ers.usda.gov/media/1896841/err194.pdf


          <2> http://www.ers.usda.gov/media/155368/eib56_1_.pdf


          <3>  
          https://www.washingtonpost.com/local/more-college-students-battle 
          -hunger-as-education-and-living-costs-rise/2014/04/09/60208db6-bb 
          63-11e3-9a05-c739f29ccb08_story.html
          <4> http://ir.library.oregonstate.edu/xmlui/handle/1957/45177












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               an on-campus food pantry in February 2015.<5>



          At least one national hunger relief organization, the College  
          and University Food Bank Alliance, focuses its efforts  
          exclusively on student food needs. The College and University  
          Food Bank Alliance is a professional organization consisting of  
          campus-based programs focused on alleviating food insecurity,  
          hunger, and poverty among college and university students in the  
          United States. The alliance provides support, training, and  
          resources for campus food banks and pantries that primarily  
          serve students. As of June 2016, there are more than 320 campus  
          members of the College and University Food Bank Alliance, with  
          more than 30 in California.



          CalFresh

          CalFresh provides monthly benefits to assist low-income  
          households in purchasing food or food products intended for  
          human consumption.  CalFresh benefits are 100 percent federally  
          funded and national eligibility standards and benefit levels are  
          established by the federal government. 

          To participate in CalFresh, households must meet certain  
          income-eligibility standards, work requirements, and other  
          documentation requirements.  The average monthly benefit for a  
          CalFresh recipient in federal fiscal year 2015 was $126.83 per  
          month, or $4.23 per day, according to the USDA. Households that  
          receive or are eligible to receive cash assistance under  
          CalWORKs or General Assistance/General Relief programs are  
          categorically eligible for CalFresh.  

          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. CalFresh currently  
          serves approximately 4.4 million people, according to USDA data.  
          Nonetheless, California's participation rate has been ranked  
          last or near last in the country for years, prompting concerns  

          ---------------------------


          <5>  
          http://ucsdnews.ucsd.edu/feature/triton_food_pantry_opens_at_uc_s 
          an_diego






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          from the USDA, stories in the state's newspapers and two  
          Legislative hearings in 2014. 



          Electronic Benefit Transfer (EBT)


          The EBT system automates the delivery, redemption, and  
          reconciliation of public assistance benefits such as CalWORKs  
          and CalFresh.  EBT cards function like a bank-issued automated  
          teller machine (ATM) cards.  EBT cardholders can slide the card  
          through a point-of-sale device, or use the card at an ATM.  
          California EBT cards can be used at more than 15,000 businesses  
          and over 54,000 ATMs in California.


          Unlike other types of benefits that may be accessed through an  
          EBT card, CalFresh benefits cannot be withdrawn as cash.   
          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. 


          Restaurant Meal Program


          Recognizing that some recipients of SNAP (CalFresh in  
          California) benefits do not have access to grocery stores or the  
          tools necessary to prepare a hot meal, SNAP has created a  
          voluntary Restaurant Meals Program to help expand food access to  
          homeless, elderly or disabled individuals who do not have a  
          place to store and cook food.  The Restaurant Meals Program is  
          voluntary. Currently, only Sacramento, Los Angeles, Alameda, San  
          Francisco and Santa Clara counties operate Restaurant Meals  
          programs.  Participating restaurants generally serve fast food.   


          Counties authorize CalFresh recipients to receive Restaurant  
          Meals benefits if they meet criteria, including homelessness,  
          being elderly or having a disability.  Under the program,  
          authorized restaurants within participating counties may accept  
          EBT payments from CalFresh recipients.  










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          To participate in the Restaurant Meals Program, counties must  
          submit a proposal for approval to CDSS. Once approved, counties  
          can then enter into memorandums of understanding (MOUs) with  
          restaurants located within the county.  The MOU must contain a  
          requirement that the restaurant offer low cost meals to these  
          recipients.  MOUs are also contingent on restaurants being  
          authorized by USDA as a SNAP retailer.  In order to be approved  
          as a retailer, participating restaurants must include a copy of  
          their MOU in their retailer application, limit sales to specific  
          Restaurant Meals Program populations, offer meals at low cost  
          and not charge SNAP recipients sales tax on these meals.  

          Who will be served?

          USDA and CDSS do not collect data that would indicate how many  
          Restaurant Meals Program-approved recipients are also students  
          enrolled in public or private postsecondary institutions.  
          However, according to recent research by the California State  
          University, approximately 10,000 students identified themselves  
          as homeless on their Free Application for Federal Student Aid in  
          2013-2014.<6>  According to a story in Los Angeles Times, one in  
          ten students California State University students is  
          homeless.<7> Additionally, about 121,000 students enrolled in  
          California's community colleges were disabled in Fiscal Years  
          2013-14 and 2014-15.  Low-income students who are already  
          receiving meal benefits through their schools are not necessary  
          precluded from receiving RMP benefits.  Therefore these students  
          could benefit from on-campus RMP food vendors.

          Related 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 EBT  
          cards.  It was held in the Assembly Human Services Committee. 


            COMMENTS
          
          ---------------------------
          <6>  
          https://presspage-production-content.s3.amazonaws.com/uploads/148 
          7/cohomelessstudy.pdf?10000
          <7>http://www.latimes.com/local/lanow/la-me-cal-state-homelessnes 
          s-20160620-snap-story.html








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          AB 1747 seeks to create greater access to food for Restaurant  
          Meals Program recipients who are elderly, disabled or homeless  
          by increasing the likelihood that restaurants or cafeterias on  
          public and private postsecondary campuses will participate in  
          the program.  

          It requires public institutions that administer their own  
          on-campus prepared-food establishments (like a cafeteria) in  
          counties that participate in the Restaurant Meals Program, to  
          apply for approval. The bill would also require that public and  
          private postsecondary institutions operating in counties that  
          participate in the program to provide information to on-campus  
          prepared food vendors about the program. Additionally, the bill  
          requires public and private postsecondary institutions with  
          approved on-campus Restaurant Meals Program vendors to annually  
          advise students about the program. 

          The program is restricted to people who are elderly, homeless or  
          disabled, per federal law.  This bill does not expand  
          eligibility for the program to students who do not meet  
          eligibility criteria.  However, it would facilitate newly  
          approved Restaurant Meals Program food facilities on campuses,  
          thereby increasing access for benefit recipients - regardless of  
          whether they are enrolled in classes on the campus - to approved  
          food facilities on campus.  

          In addition to expanding awareness of the program on  
          postsecondary campuses throughout the state, this bill would  
          establish a fund to support partnerships between food banks and  
          on-campus food kitchens.  If appropriated, the fund would allow  
          local partnerships to increase the amount of food available to  
          hungry students.   

          The committee suggests the following clarifying amendments: 
          
          1.An analysis prepared by Senate Education Committee suggests  
            that the bill might be amended to require on-campus food  
            vendors and counties that participate in the program to meet  
            existing requirements and standards for the program. Therefore  
            the following amendments are suggested: 

          Education Code section 66025.93
          (a) Each public or private postsecondary education institution  
          that is located in a county that participates in the Restaurant  









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          Meals Program established pursuant to Section 2020 of Title 7 of  
          the United States Code shall do all of the following:
          (1) Apply to become an approved food vendor for the Restaurant  
          Meals Program, if the institution operates any qualifying food  
          facility on campus.
          (2) 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.
          (3) 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.
          (b) This section does not require an institution to create,  
          operate, or maintain an EBT system on behalf of on-campus food  
          vendors. 
           (c) An approved food vendor participating in the Restaurant  
          Meals Program pursuant to this section, and the county in which  
          the program is operated, shall meet the requirements of the  
          Restaurant Meal Program as determined by the United States  
          Department of Agriculture.
           

          2.This bill contains language referencing federal matching  
            dollars for CalFresh outreach.  According to CDSS, the federal  
            government does not provide matching funds for CalFresh  
            outreach. Instead, the state receives reimbursements.  
            Additionally, counties are not reimbursed for CalFresh  
            outreach activities.  Therefore, following technical  
            amendments are suggested in order to more closely reflect  
            current law and practices: 

          Welfare and Institutions Code section 18904.3 
          (a) If a private nonprofit organization  ,   or a  public  
          postsecondary educational institution,  or other state or local  
          agency   is successful in raising money   secures funds  for  
          CalFresh outreach activities  that are allowable for partial  
          federal reimbursement  and  has secured a local governmental  
          agency to serve as the contracting agency   complies with  
          contracting requirements established in state and federal law,   
          the department shall,  upon request and  subject to approval  of  
          the state's outreach plan  by the United States Department of  
          Agriculture, act as the organization's  ,   or  institution's  , or  
          agency's  state entity for receipt of  matching funds   federal  
          reimbursement  .  (b) Any reduction in federal funding to the state  









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          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.
           

            PRIOR VOTES
          
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          |Assembly Floor:                                            |70 - |
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          |Assembly Appropriations Committee:                         |14 - |
          |                                                           |5    |
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          |Assembly Human Services Committee:                         |5 -  |
          |                                                           |1    |
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            POSITIONS
                                          
          Support:       
               Western Center on Law and Poverty (Sponsor)
               California Food Policy Advocates 
               California Immigrant Policy Center
               Community Action Partnership of Orange County
               Courage Campaign
               National Association for the Education of Homeless Children  
          and Youth (NOEHCY)
               Orange County Food Access Coalition
               San Diego Hunger Advocacy Network
               St. Anthony Foundation
               The American Federation of State, County and Municipal  
               Employees (AFSCME)
               The California Primary Care Association
               The California State Student Association
               The California State University (CSU)
               The California State University (CSU)
               The Food Bank of Contra Costa and Solano
               The National Association of Social Workers, California  
          Chapter
               The San Diego Hunger Advocacy Network 
               The University of California Student Association










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          Oppose:
               None.
                                      -- END --