BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 1747 ----------------------------------------------------------------- |Author: |Weber | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |May 31, 2016 |Hearing |June 28, 2016 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Taryn Smith | |: | | ----------------------------------------------------------------- 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) AB 1747 (Weber) PageB of? 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. AB 1747 (Weber) PageC of? 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 AB 1747 (Weber) PageD of? 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, AB 1747 (Weber) PageE of? 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 AB 1747 (Weber) PageF of? 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 AB 1747 (Weber) PageG of? 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. AB 1747 (Weber) PageH of? 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 AB 1747 (Weber) PageI of? 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 AB 1747 (Weber) PageJ of? 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 apublic postsecondary educational institution, or other state or local agencyis successful in raising moneysecures funds for CalFresh outreach activities that are allowable for partial federal reimbursement andhas secured a local governmental agency to serve as the contracting agencycomplies with contracting requirements established in state and federal law, the department shall,upon request andsubject to approval of the state's outreach plan by the United States Department of Agriculture, act as the organization's ,orinstitution's , or agency's state entity for receipt ofmatching fundsfederal reimbursement .(b) Any reduction in federal funding to the state AB 1747 (Weber) PageK of? 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 ----------------------------------------------------------------- |Assembly Floor: |70 - | | |7 | |-----------------------------------------------------------+-----| |Assembly Appropriations Committee: |14 - | | |5 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: |5 - | | |1 | ----------------------------------------------------------------- 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 AB 1747 (Weber) PageL of? Oppose: None. -- END --