BILL ANALYSIS Ó AB 1770 Page 1 GOVERNOR'S VETO AB 1770 (Alejo) As Enrolled September 6, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |53-25 |(June 2, 2016) |SENATE: |29-7 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |55-25 |(August 29, | | | | | | |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HUM. S. SUMMARY: Extends eligibility for nutrition assistance under the California Food Assistance Program (CFAP) to all noncitizens who AB 1770 Page 2 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) AB 1770 Page 3 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. AB 1770 Page 4 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 AB 1770 Page 5 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: AB 1770 Page 6 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. AB 1770 Page 7 Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0005101