BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2054


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          Date of Hearing:   March 29,2016


                        ASSEMBLY COMMITTEE ON HUMAN SERVICES


                                Susan Bonilla, Chair


          AB 2054  
          (Thurmond) - As Introduced February 17, 2016


          SUBJECT:  Nutrition assistance:  Summer Electronic Benefits  
          Transfer for Children


          SUMMARY:  Mandates the design and implementation of the Summer  
          Electronic Benefits Transfer for Children (SEBTC).


          Specifically, this bill: 


          1)Makes a number of Legislative findings and declarations  
            related to poverty, food insecurity, and the "summer nutrition  
            gap" experienced by many children.


          2)Defines "Summer Electronic Benefits Transfer for Children," or  
            "SEBTC," to mean a program, pilot, or demonstration project  
            that provides nutrition assistance when school is out of  
            session via electronic benefits transfer (EBT) to households  
            with children eligible for free and reduced price meals, as  
            specified.


          3)Requires the California Department of Health and Human  
            Services Agency, in conjunction with other agencies as  








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            specified and pursuant to federal approval and/or  
            authorization, to design and implement the SEBTC to provide  
            nutrition assistance benefits to eligible households. 


          4)Requires the SEBTC system to be compatible with the State's  
            existing EBT system, comply with any federal laws and  
            regulations governing SEBTC, and comply with any and all  
            privacy and confidentiality procedures, as specified.


          EXISTING LAW:  


          1)Establishes the Electronic Benefits Transfer 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.  (WIC 10065 et seq.) 


          2)Establishes the National School Lunch Program, and program  
            requirements for schools participating in the program.  (42  
            U.S.C. 1751 et seq.)


          FISCAL EFFECT: Unknown.  


          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  








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          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.


          California National School Breakfast and Lunch Program:  The  
          United States Department of Agriculture (USDA) provides funding  
          to support school meals and milk programs to assist schools,  
          districts, and other non-profit agencies in providing nutritious  
          meals and milk to children for free or for a reduced price.  The  
          California Department of Education (CDE) is responsible for the  
          administration and implementation of the National School Lunch  
          Program, which provides nutritious lunches to children at  
          reasonable prices, or for free if their family receives certain  
          public benefits, including SNAP benefits, or are eligible based  
          on income.


          Food scarcity during summer months:  According to a study  
          conducted by researchers at the Economic Research Service of the  
          U.S. Department of Agriculture and the Congressional Research  
          Service, food insecurity (chronic hunger) among households with  
          school-age children is more prevalent during the summer than  
          during the school year.  In addition to this, research by the  
          California Food Policy Advocates (the sponsor of this  
          legislation), indicates that, in 2014, nearly 2 million (or 80%  
          of) children and youth who benefitted from federally funded free  
          or reduced-price lunches during the school year missed out on  
          such lunches during the summer.  While the need for nutritious,  
          affordable meals is consistent year-round, many children fall  
          into the summer nutrition gap.


          Summer EBT for Children (SEBTC):  In 2011, as part of its  
          efforts to end child hunger, the USDA's Food and Nutrition  
          Service (FNS) created the Summer Electronic Benefits Transfer  
          for Children (SEBTC) program to study the use of SNAP and Women,  
          Infants, and Children (WIC) EBT technology by providing children  
          and their families with more resources to use at food stores  








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          during the summer months.  In 2011, the USDA began "proof-of  
          concept" demonstrations in two states, Michigan and Texas, for  
          the WIC model, and in three states, Connecticut, Missouri, and  
          Oregon, for the SNAP model.  Each state provided benefits to  
          2,500 children in the summer of 2011.  In 2012, each of the five  
          proof-of-concept states increased operations to reach 5,000  
          children in new parts of their states.  In addition to this, in  
          2012, five new states and Tribal Organizations implemented SEBTC  
          projects:  Cherokee Nation (WIC), Chickasaw Nation (WIC), Nevada  
          (WIC), Delaware (SNAP), and Washington (SNAP).


          President's Budget proposal:  According to the USDA, "The  
          President's FY 2017 Budget seeks to ensure that all children  
          have consistent and adequate access to nutritious food year  
          round by proposing a permanent, nationwide expansion of the  
          [SEBTC] program.  This program will provide families with  
          children eligible for free and reduced price school meals access  
          to additional food benefits during the summer." 


          The President's proposal would invest $12 billion over 10 years  
          to create a permanent, universal Summer EBT program.   
          Specifically, the proposal includes a $45 monthly benefit per  
          child during the summer months for school-aged children eligible  
          for free and reduced price meals through the National School  
          Lunch Program (NSLP).  The monthly benefit can be redeemed for  
          food purchases at grocery stores and would be annually adjusted  
          for inflation going forward.  The program would be phased in  
          over ten years with 10% of states participating by 2017 and  
          serving almost one million low-income children.  By 2026, when  
          all states are expected to participate, nearly 20 million  
          children will receive SEBTC benefits


          Need for this bill:  According to the author, "Research and  
          common sense tell us that children need year-round access to  
          nutritious meals in order to learn, grow, and achieve at their  
          full potential?Research also shows that food insecurity  








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          increases during the summer months. Currently, federally funded  
          summer meal programs operate in a number of communities across  
          California.  While summer meal programs provide valuable  
          resources when and where they are able to reach children, nearly  
          90% of low-income, school-age children in California are not  
          served by these programs?Complex problems like child hunger need  
          multiple solutions.  Fortunately, one clear solution has already  
          been rigorously tested and proven effective:  Summer Electronic  
          Benefits for Children.  Summer EBT for Children (SEBTC) provides  
          nutrition assistance for the purchase of groceries when school  
          is out of session and children lose access to school meals.   
          [This bill] will prepare California to implement SEBTC, which  
          has been successfully serving children in other areas of the  
          country since 2011?[This bill] will ensure that California  
          seizes these opportunities to better support children in need."


          PRIOR LEGISLATION:


          AB 1542 (Ducheny), Chapter 270, Statutes of 1997, implemented  
          federal welfare reform and established the CalWORKs program, and  
          conformed to federal law in establishing the Electronic Benefits  
          Transfer (EBT) Act.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Academy of Pediatrics


          Association of California Healthcare Districts (ACHD)









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          CA4Health


          California Alternative Payment Program Association (CAPPA)


          California Association of Food Banks


          California Catholic Conference


          California Center for Public Health Advocacy (CCPHA)


          California Food Policy Advocates (CSPA) - sponsor


          California Primary Care Association (CPCA)


          Children's Defense Fund - CA (CDF-CA)


          Coalition of California Welfare Rights Organization (CCWRO)


          County Health Executives Association of CA (CHEAC)


          Food Bank of Contra Costa and Solano


          Food for People, Inc.


          Hunger Action Los Angeles









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          Locally Delicious, Inc., in Arcata, CA


          National Association of Social Workers, CA Chapter (NASW-CA)


          Orange County Food Access Coalition


          Sacramento Hunger Coalition 


          St. Anthony Foundation


          Western Center on Law and Poverty


          8 Individuals





          Opposition





          None on file.




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









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