BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: AB 2099 ----------------------------------------------------------------- |Author: |Mark Stone | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |May 27, 2016 |Hearing |June 14, 2016 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Debra Cooper | |: | | ----------------------------------------------------------------- Subject: Safe drinking water benefit SUMMARY This bill would require the California Department of Social Services (CDSS) to establish and administer a safe drinking water assistance program to provide cash benefits to low-income households with inadequate access to safe drinking water. This bill would also require CDSS, in consultation with other specified state agencies, to create a workgroup to develop recommendations for the program. ABSTRACT Existing law: 1) Establishes the Human Right to Water Act, ensuring that every person has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. (WAT 106.3 (a)) 2) Defines a "disadvantaged community" as a community "in which the median household income is less than 80 percent of the statewide average." (HSC 116275 (ab)) 3) Defines a "small community water system" as a "community water system that serves no more than 3,300 service connections or a year-long population of no more than AB 2099 (Mark Stone) Page 2 of ? 10,000 persons." (HSC 116275 (aa)) 4) Establishes the Electronic Benefits Transfer (EBT) Act, defining the EBT system as the program to provide benefits to recipients of public social services (WIC 10065 et seq.) 5) Requires the Office of Systems Integration within CDSS to implement a statewide automated welfare system for specified public assistance programs. (WIC 10823) 6) Establishes the Water Quality, Supply, and Infrastructure Improvement Act of 2014, providing funding for projects that improve water quality and provide reliable drinking water. Eligible projects 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.) 7) Allocates, pursuant to Proposition 1, $260 million for grants and loans for public water system infrastructure improvements and related actions to meet safe drinking water standards and/or ensure affordable drinking water. Requires that priority is given to projects that provide treatment for contamination or access to an alternate drinking water source for small community water systems or state small water systems in disadvantaged communities whose drinking water source is impaired by chemical and nitrate contaminants and other health hazards identified by the State Water Board. (WAT 79724. (a)(1)) This bill: 1) Makes a series of uncodified Legislative findings and declarations including: a. Describing the EBT system and its advantages for delivering public benefits. b. Stating that the Legislature and the Governor established The Human Right to Water in 2013, and that despite a history of proactive water policies, California residents still face formidable challenges AB 2099 (Mark Stone) Page 3 of ? as the drought continues to exacerbate water quality issues for disadvantaged communities who disproportionately bear the health and financial impacts of inadequate access to safe water. c. Significant barriers to water access exist for marginalized Californians who are forced to choose between drinking water and expending scarce resources to pay for clean water, including in 2014, more than 1 million Californians faced water safety violations that made water unsafe to drink, and as the drought enters its fifth year, more than 2,000 domestic wells have gone dry in the Central Valley, affecting tens of thousands of people. Many small communities face chronic water quality problems. Almost 400 small rural water systems and schools are unable to provide safe drinking water. d. Declares Legislative intent to use the EBT system to deliver emergency water to households in disadvantaged communities. 2) Requires CDSS to convene a workgroup on or before 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. 3) Requires that the water benefit to the extent possible, be provided through the EBT system and be funded from existing emergency drought response resources allocated for interim water assistance. 4) Requires the workgroup to consist of representatives from CDSS, the State Water Resources Control Board, the Department of Water Resources, the Office of Emergency Services, the County Welfare Directors Association of California, Food Policy Advocates, and other applicable community advocates. 5) Requires the recommendations established through the workgroup to include the design of the benefit and an implementation plan that considers the following populations: a. Households in disadvantaged communities served AB 2099 (Mark Stone) Page 4 of ? by noncompliant small community water systems. b. Households located in communities deemed eligible for interim emergency drinking water benefits. c. Households with private wells that have active outages or water supply problems. 6) Requires the recommendations shall include possibilities for interim or permanent adoption and implementation of the benefit through regulations, all-county letters, or similar instruction. 7) Requires CDSS to submit a report of the recommendations to the Legislature and the California Health and Human Services Agency by July 1, 2017, as specified. 8) Sunsets the provisions of this bill on July 1, 2021, and repeals those provisions on January 1, 2022. FISCAL IMPACT According to an analysis by the Assembly Committee on Appropriations, costs for CDSS to convene the workgroup and to produce the required report to the Legislature for this bill would be minor and absorbable; future costs for CDSS to implement the recommendations in the report would be significant. BACKGROUND AND DISCUSSION Purpose of the bill: According to the author, the state has taken several measures - all implemented following the Governor's emergency declaration for the drought - to increase adequate drinking water to low-income households, however these measures have not met the needs of all low-income Californians with inadequate drinking water. Access to programs providing resources for safe drinking water varies across the state: Some communities rely on grants awarded to the county, others rely on local non-profit organizations, and only in Tulare County do residents have access to a county-run water assistance program. Purchasing bottled water is a costly alternative to gain access AB 2099 (Mark Stone) Page 5 of ? to safe drinking water. In households where income falls below the poverty level, 20% of their income can be devoted to water sanitation and purchasing bottled water. The author acknowledges that long-term solutions are necessary to increase access to adequate drinking water, however this bill provides "temporary relief to struggling families who live in homes with inadequate drinking water supplies." Access to safe drinking water In 2012, the Human Right to Water Law (AB 685, Eng, Chapter 524, Statutes of 2012), affirmed the right of every person to safe, clean, affordable, and accessible drinking water. Because of both human actions and naturally occurring processes, such as infrastructure failures, polluted water sources, and the drought, many low-income communities have inadequate drinking water. According to the Public Policy Institute of California (PPIC) almost 400 small rural water systems and schools across the state are unable to provide safe drinking water, and treatment to remove contaminants is costly for small systems. In 2013, a U.S. Environmental Protection Agency survey identified California as the state with the greatest infrastructure improvement needs. The state has taken a number of interim steps to help ensure that low-income households can obtain safe drinking water. Recent measures taken include approval by the State Water Resources Board of $19 million from the Cleanup and Abatement Account in 2015 to meet interim emergency drinking water needs. Additionally, the Office of Emergency Services received $22 million in 2015 to provide emergency drinking water, and the Department of Water Resources received $45 million to assist with drinking water shortages. The sponsors of the bill, California Food Policy Advocates, state that "without affordable access to safe water, disadvantaged communities in California will continue to bear a disproportionate burden of this drought." They contend that this bill will provide an interim, supplemental benefit for households in disadvantaged communities. Electronic Benefits Transfer (EBT) The EBT system is an electronic system in California used for the delivery of public assistance benefits such as CalWORKS and AB 2099 (Mark Stone) Page 6 of ? CalFresh. EBT is currently used in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam. In California, recipients of public assistance access their benefits through the Golden State Advantage EBT card. California EBT cards can be used at more than 15,000 businesses and over 54,000 ATMs in California. The cards are used similarly to a bank ATM or debit card by sliding the card through a point-of-sale device or ATM to receive and use benefits. Bottled drinking water is currently an eligible food item under the California EBT program, but purchasing bottled water with EBT credit reduces the remaining benefit amount available for other nutritional needs. Related legislation: AB 1376 (Perea, 2015) would have general fund monies for projects that address drought-related drinking water emergencies. It was held in the Assembly Water, Parks and Wildlife Committee. AB 401 (Dodd, Chapter 662, Statutes of 2015) required the State Water Resources Control Board and the Board of Equalization to develop a plan to fund and implement the Low-Income Water Rate Assistance Program, which would create recommendations for cost-effective methods of offering assistance to low-income water customers. AB 1471 (Rendon, Chapter 188, Statutes of 2014) established the Water Quality, Supply, and Infrastructure Improvement Act of 2014. SB 104 (Committee on Budget and Fiscal Review, Chapter 3, Statutes of 2014) appropriated funds to the Department of Water Resources for integrated regional water management grants for projects that provide immediate regional drought preparedness, increase local water supply reliability and the delivery of safe drinking water, and appropriated funds to the Department of Water Resources for integrated regional water management grants. AB 685 (Eng, Chapter 524, Statutes of 2012) established the Human Right to Water Act. AB 2099 (Mark Stone) Page 7 of ? COMMENTS The intention of this bill is to provide an interim solution for increasing access to safe drinking water for individuals in disadvantaged communities whose water supply is inadequate. This bill would create a committee to study the feasibility of, among other things, delivering emergency water benefits through the EBT system, or to consider the most efficient and effective way of implementing the benefit. It is unclear if the existing EBT system can dedicate benefits specifically to emergency water relief. However, the state is working to fulfill a federal mandate which requires state agencies that deliver food benefits to implement EBT systems that incorporate WIC by October 1, 2020. The California Department of Public Health (CDPH) is currently working on meeting the Federal mandate by developing technology that incorporates EBT Services for Food and Cash programs and the WIC Program. Though still in development, it is possible that this technology will allow for benefits to be more targeted, and would allow specific allocations for an emergency water benefit. As that technology is not currently developed, and may not be available before October 1, 2020, the author may want to emphasize that the EBT system is to be used only if it is feasible to do so. Staff recommends the following amendment: (j) Recognizing this, it is the intent of the Legislatureto utilize the existing EBT systemto deliver appropriate emergency water benefits to disadvantaged households in an efficient and effective manner , and to the extent possible, to utilize the EBT system to accomplish this goal . PRIOR VOTES ----------------------------------------------------------------- |Assembly Floor: |78 - | | |1 | |-----------------------------------------------------------+-----| |Assembly Appropriations Committee: |20 - | | |0 | |-----------------------------------------------------------+-----| |Assembly Human Services Committee: |6 - | AB 2099 (Mark Stone) Page 8 of ? | |0 | | | | ----------------------------------------------------------------- POSITIONS Support: California Food Policy Advocates (Sponsor) Asian Law Alliance CA4Health California Academy of Physicians California Health+ Advocates Community Health Councils Community Water Center Jewish Family Service of Los Angeles (JFS) Rural Community Assistance Corporation The American heart Association/ American Stroke Association The California Association of Food Banks The Los Angeles Trust for Children's Health Oppose: None -- END --