BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 2099
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          |Author:   |Mark Stone                                            |
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          |Version:  |May 27, 2016           |Hearing    |June 14, 2016    |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Debra Cooper                                          |
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                        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  







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               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  








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                    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  








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                    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  








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          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  








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          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.










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           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 Legislature  to  
          utilize the existing EBT system  to 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
          
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          |Assembly Floor:                                            |78 - |
          |                                                           |1    |
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          |Assembly Appropriations Committee:                         |20 - |
          |                                                           |0    |
          |-----------------------------------------------------------+-----|
          |Assembly Human Services Committee:                         |6 -  |








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            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

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