BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2054


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          ASSEMBLY THIRD READING


          AB  
          2054 (Thurmond)


          As Amended  May 27, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Human Services  |6-0  |Bonilla, Calderon,    |                    |
          |                |     |Lopez, Maienschein,   |                    |
          |                |     |Mark Stone, Thurmond  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood   |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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                                                                    AB 2054


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          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 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. 


          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.


          5)Specifies that the provision of SEBTC benefits to eligible  
            households is contingent on federal funding for the SEBTC  
            program.


          EXISTING LAW:  










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          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.  (Welfare and Institutions Code Section  
            (WIC) 10065 et seq.) 


          2)Establishes the National School Lunch Program, and program  
            requirements for schools participating in the program.  (42  
            United States Code 1751 et seq.)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, this bill may result in the following costs:


          1)Unknown costs, but likely in the hundreds of millions of  
            dollars (Federal funds), 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. 


          2)Unknown, but potentially significant costs for automation,  
            design, implementation and operation of a Summer EBT program.   
            These costs would be a shared federal/state/county cost  
            (50/35/15). 


          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  








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          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.


          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  
          USDA 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  








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          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  
          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










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          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  
          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.




          Analysis Prepared by:                                             
                          Kelsy Castillo / HUM. S. / (916) 319-2089  FN:  
          0003321












                                                                    AB 2054


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