BILL ANALYSIS Ó
SENATE COMMITTEE ON HUMAN SERVICES
Senator McGuire, Chair
2015 - 2016 Regular
Bill No: AB 2054
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|Author: |Thurmond |
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|Version: |May 27, 2016 |Hearing |June 28, 2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Taryn Smith |
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Subject: Nutrition assistance: Summer Electronic Benefits
Transfer for Children
SUMMARY
This bill mandates the design and implementation of a Summer
Electronic Benefits Transfer for Children (SEBTC) contingent
upon federal authorization and funding.
ABSTRACT
Existing law:
1) Establishes under federal law the Supplemental Nutrition
Assistance Program (SNAP) within the US Department of
Agriculture (USDA) to promote the general welfare and to
safeguard the health and wellbeing of the nation's
population by raising the levels of nutrition among
low-income households. It establishes SNAP eligibility
requirements, including income that is at or below 130
percent of the federal poverty level and is a substantial
limiting factor in permitting a recipient to obtain a more
nutritious diet. (7 CFR 271.1; 7 CFR 273.9)
2) Establishes in California statute the CalFresh program
to administer the provisions of federal SNAP benefits to
families and individuals meeting specified criteria. (WIC
18900 et seq.)
AB 2054 (Thurmond) PageB
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3) Establishes in the Electronic Benefits Transfer (EBT)
Act a system for the distribution and use of public
assistance benefits, such as CalFresh, and requires EBT
access to be provided through automated teller machines
(ATMs), point-of-sale devices and other devices that accept
EBT transactions. (WIC 10065 et seq.)
4) Establishes the National School Lunch Program, and
program requirements for schools participating in the
program. (42 United States Code 1751 et seq.)
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" to mean a program, pilot, or demonstration
project that provides nutrition assistance when school is
out of session via EBT to households with children eligible
for free and reduced price meals.
3) Requires the California Health and Human Services
Agency, in conjunction with other agencies to design and
implement the SEBTC to provide nutrition assistance
benefits to eligible households, as specified.
4) Requires the Secretary of the California Health and
Human Services Agency to notify the head of each
appropriate state agency in a timely manner that the agency
is required to request or apply for federal approval or
authorization in order to carry out the requirements of
this section, as specified.
5) 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
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all privacy and confidentiality procedures, as specified.
6) Requires each agency, as specified, to do the following:
a. Request or apply for federal approval or
authorization necessary to implement and operate SEBTC
and support the request or application of any other
state agency, if necessary.
b. Request or apply for all available federal
funding to assist the state in implementing and
operating SEBTC and support the request or application
of any other state agency, if necessary, to obtain all
available federal funds for that purpose.
7) Specifies that the provision of SEBTC benefits to
eligible households is contingent on federal funding for
the SEBTC program.
FISCAL IMPACT
According to the Assembly Appropriations Committee, this bill
may result in unknown costs that are 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, 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. There
would be additional unknown, but potentially significant costs
for automation, design, implementation and operation of an SEBTC
program. These costs would be a shared federal/state/county
cost (50/35/15).
BACKGROUND AND DISCUSSION
Purpose of the bill:
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According to the author, two in five low-income households with
children cannot consistently afford enough food. The author also
states that children in at least 1.7 million California
households live in food-insecure conditions and that summer is a
particularly vulnerable time for low-income children. When
school is out of session, these children lose access to many
critical resources, including nutritious, affordable school
meals, per the author.
Summer EBT for Children (SEBTC) is a federally funded nutrition
assistance program that allows participants to purchase
groceries through SEBTC when school is out of session and school
meals are not available. As shown by federal demonstration
projects operating in eight other states and two tribal nations,
SEBTC is a well-tested strategy to decrease hunger and improve
nutrition, the author states.
AB 2054 would prepare California to implement federally funded
SEBTC. Specifically, the bill directs the California Health and
Human Services Agency, and all other relevant state agencies, to
(1) design a system to deliver SEBTC to eligible Californians
and (2) pursue federal authorization and approval and all
available federal funds to operate the system.
The author states that while child hunger is a complex problem,
SEBTC is one clear solution. By preparing California to
implement SEBTC, AB 2054 will help to mitigate chronic hunger
among low-income children, according to the author.
Food insecurity
Food security is defined as access by all members of the
household at all times to enough food for an active, healthy
life. Food insecure households are those in which the children
or adults or both report limited access to food resulting in
reduced quality or variety of diet (low food security), or
reduced food intake or disrupted eating patterns (very low food
security).
According to a report issued by the USDA, 14 percent of American
households were food insecure at least some time during 2014,
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including 5.6 percent with very low food security.<1> Another
USDA report indicates that children living in a food insecure
household face higher risks of health, psychosocial, and
developmental problems compared to children in food secure
households.<2>
CalFresh
CalFresh provides monthly benefits to assist low-income
households in purchasing food or food products intended for
human consumption. CalFresh benefits are 100 percent federally
funded and national eligibility standards and benefit levels are
established by the federal government. To participate in
CalFresh, households must meet certain income-eligibility
standards. The average monthly benefit for a CalFresh recipient
in federal fiscal year 2015 was $126.83 per month, or $4.23 per
day, according to the USDA. Households that receive or are
eligible to receive cash assistance under CalWORKs or General
Assistance and General Relief programs are categorically
eligible for CalFresh.
CalFresh currently serves approximately 4.4 million people,
according to USDA data. Nonetheless, California's participation
rate has been ranked last or near last in the country for years,
prompting concerns from the USDA, stories in the state's
newspapers and two Legislative hearings in 2014.
Electronic Benefit Transfer (EBT)
The EBT system automates the delivery, redemption, and
reconciliation of public assistance benefits such as CalWORKs
and CalFresh. EBT cards function like a bank-issued automated
teller machine (ATM) card; the cardholder slides this card
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<1> http://www.ers.usda.gov/media/1896841/err194.pdf
<2> http://www.ers.usda.gov/media/155368/eib56_1_.pdf
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through a point-of-sale device, or uses the card at an ATM.
California EBT cards can be used at more than 15,000 businesses
and over 54,000 ATMs in California.
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 ATM machines. 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.
National School Lunch Program
The National School Lunch Program is a federally funded program
that assists schools and other agencies in providing nutritious
lunches to children for free or at a reduced price. In addition
to financial assistance, the program provides donated commodity
foods to help reduce lunch program costs. The USDA is
responsible for overseeing the program nationally. In
California, the program is administered by the California
Department of Education (CDE), Nutrition Services Division.
For children, the National School Lunch Program provides a
nutritious meal that contains one-third of the recommended
dietary allowance of necessary nutrients. For parents, the
program offers a convenient method of providing a nutritionally
balanced lunch at the lowest possible price. For schools, the
program enhances children's learning abilities by contributing
to their physical and mental well-being. Studies have shown that
children whose nutritional needs are met have fewer attendance
and discipline problems and are more attentive in class.
Summer nutrition gap
A study conducted by researchers at the USDA's Economic Research
Service and the Congressional Research Service showed that food
insecurity among households with school-age children is more
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prevalent during the summer months than during the school year.
<3>
According to the bill's sponsor, California Food Policy
Advocates, almost 2 million of California's low-income children
fell into the summer nutrition gap in 2014. This means about 80
percent of the children and youth who received federally funded
free or reduced-price lunches during the school year missed out
on such lunches during the summer.
Summer EBT for Children (SEBTC)
In 2011, the USDA initiated a SEBTC demonstration project to
test the impact of providing additional resources to buy food
during the summer months for low-income households with children
when the children do not have access to school-based meal
programs. This SETBC program uses SNAP and Women, Infants, and
Children (WIC) EBT technology to provide children and their
families with more resources to use at food stores during the
summer months.
Demonstration projects were launched in Michigan and Texas
(using the WIC model) and in Connecticut, Missouri, and Oregon
(using the SNAP model). Under the same project, each
participating state provided benefits to 2,500 children in the
summer of 2011. In 2012, all five states increased operations
to reach 5,000 children within expanded areas of their states.
Also in 2012, the SEBTC program was expanded to the Cherokee and
Chickasaw Nations (using the WIC model) and to Nevada, Delaware
and Washington (using the SNAP model).
Evaluations of SEBTC pilots found that providing additional food
benefits on debit cards to low-income families with school-aged
children during the summer months can significantly reduce food
insecurity and improve nutrition. Specifically, the pilots
reduced very low food security among children, the most severe
form of food insecurity, by one third. Studies also showed that
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<3>
http://www.tandfonline.com/doi/abs/10.1080/10796120600879582?jour
nalCode=cjcp20
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these additional resources enabled families to eat significantly
more fruits and vegetables and whole grains.<4>
President's Budget proposal
The President's Fiscal Year 2017 budget builds on the SEBTC
program by investing $12 billion over 10 years to start up a
nationwide, universal SEBTC 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. As
proposed, the monthly benefit could 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 percent of states participating by 2017,
serving almost one million low-income children. By 2026, when
all states are expected to participate, nearly 20 million
children will receive SEBTC benefits.<5>
Related 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 EBT Act.
COMMENTS
This bill proposes to provide a vehicle through which the state
can pursue federal authority and funding to implement and
operate SEBTC. While expansion of the current demonstration
project has not been approved, this bill provides guidance to
state agencies in anticipation of such funding becoming
available. According to the sponsor, there are currently three
potential opportunities for the federal government to authorize
and fund SEBTC in California.
---------------------------
<4>
http://www.fns.usda.gov/ops/summer-electronic-benefit-transfer-ch
ildren-sebtc Nationwide Summer EBT
<5>
http://www.fns.usda.gov/sites/default/files/ops/FY17SEBTCBudgetFa
ctSheet.pdf
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The federal spending bill for FFY 2016 included an
increase in funding for SEBTC demonstration projects. The
bill did not limit SEBTC to communities where demonstration
projects are already taking place. Future federal
appropriations may create similar opportunities for
California to establish SEBTC.
The President's FFY 2017 budget includes a proposal to
expand SEBTC nationwide and permanently, rolling the
program out over a number of years.
There is also a recurring opportunity for federal
lawmakers to expand authority and funding for SEBTC via the
Child Nutrition Reauthorization.
If federal authority to expand SEBT passes, funding will likely
be available to states on a competitive basis. AB 2054 will help
ensure that California is able to maximize any federal SEBTC
opportunities, and to do so in a timely way.
Given the fact that this bill anticipates federal action, the
bill lacks specificity regarding implementation. Therefore,
future legislation may be necessary to provide guidance and
authorization to the appropriate state agency and to county
welfare offices. In the meantime, the following amendments are
recommended in order to clarify mandates if and when the federal
SEBTC program is authorized and funded:
10072.2. (a) (1) The California Health and Human Services Agency
shall designate the appropriate state agency or agencies to , in
conjunction with any other state agency described in paragraph
(2), shall design and implement the Summer Electronic Benefits
Transfer for Children (SEBTC) to provide nutrition assistance
benefits to eligible households.
(2) If federal law requires a state agency or agencies other
than the California Health and Human Services Agency to obtain
federal approval or authorization in order to carry out the
requirements of this section, the Secretary of the California
Health and Human Services Agency shall designate the appropriate
that state agency which shall request or apply for the necessary
federal approval or authorization. The Secretary of the
California Health and Human Services Agency shall notify in a
timely manner the appropriate head of each additional agency
that is required to request or apply for that approval or
authorization so as to permit the other agency or agencies
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sufficient time to complete the process.
PRIOR VOTES
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|Assembly Floor: |80 - |
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|Assembly Appropriations Committee: |20 - |
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|Assembly Human Services Committee: |6 - |
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POSITIONS
Support:
California Food Policy Advocates (Sponsor)
Alameda County Community Food Bank
Asian Law Alliance
CA4Health
California Center for Public Health Advocacy
California WIC Association (CWA)
Children's Defense Fund
Feeding America
Food for People, Inc.
Food for People, the Food Bank for Humboldt County
Humboldt Food Policy Council
Hunger Action Los Angeles
Jewish Family Service of Los Angeles
Locally Delicious, Inc.
Orange County Food Access Coalition
Orange County United Way
Roots of Change
St Anthony's Foundation
The American Heart Association/American Stroke Association
The California Alternative Payment Program Association
The California Association of Food Banks
The California Catholic Conference
The California Children's Hospital Association
The California State PTA
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The County Health Executives association of California
The Food Bank of Contra Costa and Solano
The National Association of Social Workers
The Sacramento Hunger Coalition
The Santa Clara County Board of Supervisors
United Ways of California
Western Center on Law and Poverty
Oppose:
None.
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