BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2054 (Thurmond) - Nutrition assistance: Summer Electronic
Benefits Transfer for Children
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|Version: June 30, 2016 |Policy Vote: HUMAN S. 5 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Debra Cooper |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 2054 would require the California Health and Human
Services Agency (CHHS) to designate an appropriate agency or
agencies to design and implement a Summer Electronic Benefit
Transfer for Children (SEBTC) system to deliver nutrition
assistance to children eligible for free and reduced-price meals
during periods when school is out of session.
Fiscal
Impact: Unknown, but potentially significant costs for
automation, design, implementation, and operation of an SEBTC
program. (GF)
Background: The federal National School Lunch Program provides low-cost or
free school lunch meals to nearly 22 million low-income children
each school day through subsidies to schools. However, many of
the children do not receive these meals during the summer
AB 2054 (Thurmond) Page 1 of
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months, leaving low-income children at higher risk of food
insecurity and poor nutrition when school is out of session.
According to the California Food Policy Advocates, almost 2
million of California's low-income children and youth who
receive federally funded lunches during the school year miss out
on such lunches during the summer.
In 2011, the USDA created a SEBTC demonstration project to test
the impact of providing low-income households with children with
additional resources to buy food during the summer months. The
demonstration studies the use of Supplemental Nutrition
Assistance Program (SNAP) and Women, Infants, and Children (WIC)
EBT technology in providing food assistance at food stores
during the summer months. Demonstration projects have been
launched in Michigan, Nevada, Texas, Cherokee Nation, and
Chickasaw Nation using the WIC model, and in Connecticut,
Delaware, Missouri, Oregon, and Washington using the SNAP model.
The President's FY 2017 budget builds on the SEBTC program by
investing $12 billion over 10 years to start up a permanent,
universal Summer EBT program. This includes a $45 monthly
benefit per eligible child during the summer months, which could
be redeemed for food purchases at grocery stores. The program
would be phased in over 10 years with approximately 10% of
states participating in summer 2017.
In anticipation of approval for expansion of the SEBTC
demonstration project and funding becoming available, this bill
provides state agencies guidance for California to implement the
SEBTC program. According to the sponsor, there are currently
three potential opportunities for the federal government to
authorize and fund SEBTC in California:
The federal spending bill for FY 2016 included an increase in
funding for SEBTC demonstration projects. Future federal
appropriations may create similar opportunities for California
to establish an SEBTC program.
The President's FY 2017 budget includes a proposal to expand
SEBTC nationwide and permanently.
There is a recurring opportunity for federal lawmakers to
expand authority and funding for SEBTC through the Child
Nutrition Reauthorization.
AB 2054 (Thurmond) Page 2 of
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Proposed Law:
This bill would:
Require the California Health and Human Services (CHHS) Agency
to designate an appropriate agency or agencies to design and
implement the Summer Electronic Benefits Transfer for Children
(SEBTC) program and an appropriate agency or agencies to
request or apply for the necessary federal approval or
authorization.
Require the SEBTC system program to be compatible with the
state's Electronic Benefits Transfer (EBT) system, as
specified.
Require each participating agency to request or apply for
federal approval or authorization and federal funding
necessary to implement and operate the SEBTC.
Specify that the provision of SEBTC benefits to eligible
households is contingent upon the availability of federal
funding.
Staff Comments:
If an SEBTC program, pilot, or demonstration project were
approved in California, benefits would be federally funded.
However, administrative costs for the design, implementation,
and administration of the program would be shared across
federal/state/county costs (50/35/15).
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