BILL ANALYSIS Ó AB 2099 Page 1 Date of Hearing: March 29, 2016 ASSEMBLY COMMITTEE ON HUMAN SERVICES Susan Bonilla, Chair AB 2099 (Mark Stone) - As Amended March 28, 2016 SUBJECT: Safe drinking water assistance program SUMMARY: Provides for safe drinking water assistance to be made available to specified individuals via the electronic benefits transfer (EBT) system. Specifically, this bill: 1)Makes a number of Legislative findings and declarations regarding barriers to safe, clean, and affordable drinking water faced by many Californians, and the effectiveness and efficiency of the EBT system in delivering assistance to individuals and households. 2)Requires the Department of Social Services (DSS) to establish and administer a process for delivering interim emergency drinking water assistance to households that are both of the following: a) Low-income, as determined through participation in a means-tested public assistance program, as specified; and AB 2099 Page 2 b) Lacking adequate access to safe drinking water because they are one of the following: served by noncompliant small water systems in disadvantaged communities, located in communities deemed eligible for interim emergency drinking water benefits, or have private wells with active outages or water supply problems, as specified. 3)Requires DSS to utilize a computerized data-matching system using existing databases, as specified. 4)Requires DSS to deliver the benefits through the EBT system, to the extent allowable under state and federal law. 5)Requires the process to be funded from existing drought response resources allocated for interim water assistance, and further requires DSS, in consultation with specified entities, to identify existing resources. 6)Stipulates that the benefits shall be in addition to the California Work Opportunity and Responsibility to Kids (CalWORKs) program and shall not be considered as income or resources for any other program established under the Welfare and Institutions Code. EXISTING LAW: 1)Establishes the Electronic Benefits Transfer (EBT) 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. (WIC 10065 et seq.) AB 2099 Page 3 2)Establishes the Water Quality, Supply, and Infrastructure Improvement Act of 2014. (WAT 79700 et seq.) 3)Provides funding pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 to address the critical and immediate needs of disadvantaged, rural, or small communities that suffer from contaminated drinking water supplies, including, but not limited to, projects that address a public health emergency. (WAT 79720 et seq.) 4)Defines "disadvantaged community" for the purposes of various sections of state Water Code to mean a community with an annual median household income that is less than 80% of the statewide annual median household income. (WAT 79505.5) 5)Requires the Office of Systems Integration within DSS to implement a statewide automated welfare system (SAWS) for specified public assistance programs. (WIC 10823) FISCAL EFFECT: Unknown. 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 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. As with a bank-issued automated teller AB 2099 Page 4 machine (ATM) card, the cardholder slides this card through a point-of-sale (POS) device, or uses the card at an ATM. Access to safe drinking water for low-income households: Infrastructure failures, polluted water sources, and the drought all contribute to decreased access to adequate drinking water. Small, disadvantaged communities face particular challenges with inadequate drinking water supplies. According to the Public Policy Institute of California (PPIC), "several recent studies indicate that a lack of access to safe drinking water in poor, rural communities is a serious problem. Small water systems generally rely on groundwater supplies. They have little ratepayer capacity and high unit costs for supplying safe piped drinking water to households, and they are often in areas where groundwater is highly contaminated." The state has taken a number of steps in the wake of the drought to help ensure that low-income households can obtain safe drinking water; these have included interim measures such as: the State Water Resources Control Board approving funds to repair wells and supply bottled water and filtration devices, among other services; the Office of Emergency Services providing emergency drinking water; and the Department of Water Resources working on finding longer-term solutions to assist with the drinking water shortage. However, California Food Policy Advocates, the sponsors of this bill, point to the gap left by these current efforts, stating that, among other things the slow implementation and the often longer-term, infrastructure-focused approaches can lead to somewhat uneven and limited access to emergency drinking water assistance. This bill, they contend, helps fill that gap because it provides an individual household-level, easy-to-access benefit that a family can access when it is needed in a given month. Need for this bill: According to the author, this bill "represents a temporary, interim solution to upholding the right AB 2099 Page 5 of all Californians to have safe drinking water. The Legislature has taken several necessary steps to make long-term improvements to water delivery and water quality infrastructure. Yet over a million Californians continue to live in households where their tap water is so contaminated that no one can drink it, and thousands of Californians live in homes where there simply is no water to use - their wells dried up during the drought. When families can no longer trust their municipal water systems or private wells to access enough clean water, they must rely on local utilities delivering water, private companies or charities donating water, or their own ability to purchase bottled water. With California's poverty rate at 16%, many Californians must choose between using contaminated water and expending their own scarce resources to pay for clean water. And it should come as no surprise that inadequate drinking water supplies disproportionately burden people living in poverty, communities of color, homeless people, indigenous peoples, and residents of unincorporated areas. Since the onset of the drought, the state has taken several measures to help ensure that low-income households can access adequate drinking water supplies. Sadly, these interim measures have not met the needs of all low-income Californians with inadequate drinking water supplies. Ultimately, the best way to address the crisis of inadequate drinking water supplies across the state is by investing in several expensive, long-term solutions, including upgrading existing infrastructure, improving water use efficiency and conservation, improving water treatment, and carefully monitoring and minimizing the use of contaminated water supplies. In the meantime, though, poor people need and deserve to access clean and safe drinking water. AB 2099 Page 6 [This bill] provides temporary relief to struggling families who live in homes with inadequate drinking water supplies by offsetting the cost of bottled water during the interim wait for long-term water supply infrastructure upgrades. The measure allows impoverished families and who live in a community or home with insufficient, contaminated, or otherwise unsafe drinking water supplies to access a small supplemental cash benefit for purchasing water. [This bill] adds an additional means of reaching additional families who need safe drinking water, and it would become part of an already broad state response to California's drinking water crisis." Staff comments: The policy objective of this bill is clear, and it is important: providing vulnerable populations with access to safe drinking water is arguably an imperative goal - and unfortunately, a persistent challenge - for the state. However this bill, as written, necessarily raises questions regarding the ability of the SAWS and EBT system to deliver the proposed benefit to all intended recipients. There remain questions about proper identification of all eligible households and, upon identification, seamless delivery of benefits to those individuals. While the bill currently establishes a framework for identifying eligible households, it doesn't define roles and responsibilities for the various entities involved (including, at least, DSS, the State Water Resources Control Board, and the Department of Water Resources). More importantly, however, is the question about how the benefit will be delivered to individuals who may be eligible per the bill's requirements, but not in possession of an EBT card. For example, if an individual is a Medi-Cal participant, but doesn't participate in any other means-tested programs, he or she would both be eligible for the benefit proposed by this bill, but also lacking an EBT card, and therefore a means for readily accessing this benefit. This type of probable scenario highlights some of the issues, and lack of AB 2099 Page 7 clear direction, inherent in the current design of this benefit as put forth by the bill. Recommended amendments: To address the above concerns, with the goal of developing an easily-implemented and fully-accessible benefit, committee staff recommends establishing a workgroup to develop recommendations regarding the design and implementation of the benefit proposed by this bill, and therefore, committee staff recommends the following amendments: 1) Strike lines 29 through 40 on page 3 of the bill, and pages 4 and 5, inclusive. 2) After line 28 on page 3 of the bill, insert: 18997 (a) The Department of Social Services shall convene a workgroup by February 1, 2017, to develop recommendations for delivering a water benefit to supplement the purchase of drinking water for low-income households with inadequate access to safe drinking water. (b) The water benefit to be developed shall do all of the following: (1) Be made available to low-income households with limited access to safe drinking water including, but not limited to: households served by noncompliant small water systems in disadvantaged communities, as defined in Section 79505.5 of the Water Code; households located in communities deemed eligible for interim emergency drinking water benefits by the State Water Resources Control Board; and households whose private wells have active outages or water supply problems as determined by the Department of Water Resources. AB 2099 Page 8 (2) To the extent possible, be made available via the electronic benefits transfer system. (3) To the extent possible, be funded from existing emergency drought response resources allocated for interim water assistance. (a) The workgroup shall consist of representatives from all of the following entities: (1) Department of Social Services (2) State Water Resources Control Board (3) Department of Water Resources (4) Office of Emergency Services (5) County Welfare Directors Association of California (6) Food policy advocates (7) Other community advocates, as applicable (a) The workgroup shall develop recommendations to include the following: (1) The design of the benefit. (2) An implementation plan for identification of eligible households and delivery of the benefit to those households. (3) Possibilities for interim or permanent adoption and implementation of the benefit through regulations, all-county letters, or related. (a) The Department of Social Services shall produce a report with recommendations for the Legislature and the Administration by July 1, 2017. DOUBLE REFERRAL . This bill has been double-referred. Should this bill pass out of this committee, it will be referred to the Assembly Environmental Safety and Toxic Materials Committee. AB 2099 Page 9 REGISTERED SUPPORT / OPPOSITION: Support CA4Health California Association of Food Banks California Center for Public Health Advocacy (CCPHA) California Food Policy Advocates (CFPA) - sponsor California Primary Care Association (CPCA) California Retailers Association California Rural Legal Assistance Foundation (CRLAF) Coalition of California Welfare Rights Organizations (CCWRO) Community Clinic Association of Los Angeles (CCALAC) Community Health Councils AB 2099 Page 10 Community Water Center Leadership Counsel for Justice and Accountability Orange County Food Access Coalition Rural Community Assistance Corporation Sacramento Hunger Coalition (SHC) St. Anthony Foundation The Environmental Justice Coalition for Water Opposition None on file. Analysis Prepared by:Daphne Hunt / HUM. S. / (916) 319-2089 AB 2099 Page 11