BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2054


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


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


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY: This bill directs the California Health and Human  
          Services Agency to design and implement the Summer Electronic  
          Benefits Transfer for Children (SEBTC). Specifically, this bill:  



          1)Defines "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.








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          2)Requires the California Department of Health and Human  
            Services Agency, in conjunction with other agencies as  
            specified, and pursuant to federal approval and/or  
            authorization, to design and implement the SEBTC to provide  
            nutrition assistance benefits to eligible households. 


          3)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.


          FISCAL EFFECT:


          1)Unknown costs, but likely in the hundreds of millions of  
            dollars, to fund the benefit level provided to eligible  
            households. The bill does not specify a benefit level but, for  
            example, if the monthly benefit was $45 per child (as proposed  
            in the Federal budget), the annual cost to fund the benefit  
            level would be approximately $918.5 million, based on an  
            estimated caseload of 1.7 million eligible children. If the  
            proposed federal program is in place, this cost would be 100%  
            federally funded. Absent the program, the program would be  
            entirely state funded.


          2)Unknown, but potentially significant costs for automation,  
            design, implementation and operation of a Summer EBT program.  
            If a Federal program is in place, such as is proposed in the  
            2017 federal budget, these costs would be a shared  
            federal/state/county cost (50/35/15). Otherwise, these costs  
            would be entirely state funded.


          COMMENTS:








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          1)Purpose. 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 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.  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."
          2)Background. Electronic Benefit Transfer (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 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.


            In 2011, as part of its efforts to end child hunger, the  
            United States Department of Agriculture's (USDA) Food and  
            Nutrition Service (FNS) created the Summer Electronic Benefits  
            Transfer for Children program to study the use of SNAP and  
            Women, Infants, and Children (WIC) EBT technology by providing  








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            children and their families with more resources to use at food  
            stores 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).


          3)Federal Budget. The President's FY 2017 proposed budget  
            invests $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


          4)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.


          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  








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