BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1770


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          GOVERNOR'S VETO


          AB  
          1770 (Alejo)


          As Enrolled  September 6, 2016


          2/3 vote


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          Original Committee Reference:  HUM. S.




          SUMMARY:  Extends eligibility for nutrition assistance under the  
          California Food Assistance Program (CFAP) to all noncitizens who  








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          are lawfully present in the United States, provided they meet  
          all other eligibility requirements.


          The Senate amendments:


          1)Clarify that the use of Supplemental Nutrition Assistance  
            (SNAP) coupons for the purpose of administering the CFAP  
            program be allowed to the extent allowed by federal law.


          EXISTING LAW:  


          1)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.  (Welfare and Institutions Code Section (WIC) 18900  
            et seq.)


          2)Establishes, under federal law, eligibility requirements for  
            receipt of SNAP benefits, including income that is at or below  
            130% of the federal poverty level and is determined to be a  
            substantial limiting factor in permitting a recipient to  
            obtain a more nutritious diet, as specified.  (7 Code of  
            Federal Regulations Section (CFR) 273.9)


          3)Authorizes the provision of aid to eligible legal immigrants  
            who have been lawfully admitted for permanent residence or are  
            otherwise permanently residing in the United States under  
            color of law, to the extent permitted by federal law.  (WIC  
            11104)










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          4)Establishes the California Food Assistance Program (CFAP) to  
            provide state-funded nutrition assistance to legal permanent  
            residents for whom the sole reason for ineligibility for  
            federal SNAP benefits is the period of time they have resided  
            in the United States.  (WIC 18930 et seq.)


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          on May 31, 2016, this bill may result in the following:


          1)One-time costs to the Department of Social Services (DSS) of  
            approximately $13.8 million for fiscal year 2016-17 and  
            ongoing costs of $46 million per year for providing benefits  
            to recipients.  (General Fund)


          2)Unknown, but likely significant costs to DSS for automation  
            changes to the current benefits delivery system and for  
            administering the program.  (General Fund)


          COMMENTS:


          CalFresh:  CalFresh benefits are funded entirely by the federal  
          government through 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 typically  
          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.









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          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 an ATM.  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, or $4.81 per person per day.


          California Food Assistance Program (CFAP):  In 1996, Congress  
          passed the Personal Responsibility and Work Opportunity  
          Reconciliation Act (PRWORA), commonly known as federal "welfare  
          reform."  Welfare reform restricted SNAP benefits eligibility  
          for immigrants who entered the United States after August 22,  
          1996.  CFAP was established in 1997 to provide state-funded  
          nutrition benefits to legally present immigrants who lost  
          federal SNAP eligibility under PRWORA.  State dollars are used  
          to provide aid to families not eligible for federal funding  
          solely due to residency requirements.  Income and other  
          eligibility requirements for CFAP are aligned with CalFresh  
          requirements, as are benefit amounts.  According to DSS, during  
          the 2015-16 fiscal year, CFAP provided food assistance to  
          approximately 20,700 households, which is a 6.7% increase from  
          the previous year. 


          Need for this bill:  According to the author's office,  
          "California has the largest immigrant population in the country:  
           approximately 10.5 million residents, comprising 27% of our  
          state's population.  One in four children in California  
          experience hunger and nearly five million Californians suffer  
          from food insecurity, frequently not knowing whether they will  
          have food to put on the table for their families.  Following the  
          passage of federal welfare reform in 1996 California extended  
          CalFresh benefits in 1997 to provide state-funded food  
          assistance to legal immigrants who are not eligible for federal  








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          food assistance programs.  Most immigrant Californians are  
          eligible for food assistance under SNAP or under California's  
          CalFresh.  However, under current law, certain immigrant  
          Californians are still ineligible for food assistance, including  
          immigrants legally residing in California under immigration  
          categories that did not exist in 1997, such as Deferred Action  
          for Childhood Arrivals (DACA).  Current law also excludes  
          CalFresh eligibility to longtime residents who are applying for  
          legal permanent residency status under certain programs.   
          Expanding eligibility for CalFresh will reduce hunger, food  
          insecurity, and poverty in California."


          


          PRIOR LEGISLATION:


          AB 2345 (Gonzalez) of 2014, would have expanded eligibility for  
          noncitizens who are lawfully in the United States for aid under  
          the CalWORKs program and for nutrition assistance under CFAP.   
          This bill died in the Assembly Appropriations Committee.


          AB 35 (Hernández,) Chapter 571, Statutes of 2013, among other  
          provisions, extended consumer protections for youth applying for  
          DACA policy and codified the requirement that DACA-approved  
          individuals be eligible for unemployment insurance benefits.


          SB 1569 (Kuehl,) Chapter 672, Statutes of 2006, provided  
          temporary and immediate access to social services, including  
          CalWORKs and CFAP, for non-citizen survivors of human  
          trafficking, domestic violence, and other serious crimes.


          GOVERNOR'S VETO MESSAGE:









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          I am returning the following five bills without my signature:


          Assembly Bill 492


          Assembly Bill 885


          Assembly Bill 1584


          Assembly Bill 1770


          Assembly Bill 1838


          Each of these bills make changes to a worthy program that  
          results in increased funding, a few of which received increases  
          in this year's budget.  These bills are an end run of the budget  
          process, and would commit us to spending an additional $240  
          million every year.


          The budget process allows for all spending proposals to be  
          weighed equally through public hearings, negotiations and,  
          finally, approval of a balanced budget.  This is the best way to  
          evaluate and prioritize all new spending proposals, including  
          those that increase the cost of existing programs.  This process  
          is even more important when the state's budget is precariously  
          balanced.


          The budget process begins again on January 10, 2017, which is  
          the appropriate time to discuss these proposals.










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          Analysis Prepared by:                                             
                          Kelsy Castillo / HUM. S. / (916) 319-2089  FN:  
          0005101