BILL ANALYSIS Ó
AB 2054
Page 1
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 | |
| | | | |
| | | | |
------------------------------------------------------------------
AB 2054
Page 2
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:
AB 2054
Page 3
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
AB 2054
Page 4
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
AB 2054
Page 5
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
AB 2054
Page 6
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
Page 7