BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2151


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          Date of Hearing:  May 4, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2151 (Chu) - As Amended April 27, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:  This bill requires a special, diet-related food need  
          allowance for California Work Opportunity and Responsibility to  
          Kids (CalWORKs) participants, and modifies the current CalWORKs  
          allowance for recurring special needs.  Specifically, this bill:


          1)Removes, under the existing recurring special needs allowance,  
            the requirement that a physician recommend a recipient receive  
            a special diet allowance as a condition of receipt.


          2)Includes food preparation needs in the definition of the  
            recurring special needs allowance.









                                                                    AB 2151


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          3)Entitles CalWORKs participants to a special, diet-related food  
            needs allowance of $20, or actual verified expenses whichever  
            is greater, provided need is verified, and verification has  
            been signed by a licensed physician, dentist, physician's  
            assistant, nurse practitioner, or other qualified health care  
            provider to whom the recipient has been referred.


          4)Requires the special, diet-related food needs allowance be  
            provided in the form of a supplemental food benefit.


          FISCAL EFFECT:


          1)Unknown costs, but likely at least in the hundreds of  
            thousands of dollars annually to provide a minimum $20 monthly  
            food benefit.  This benefit is uncapped and based on actual  
            expenses so the cost could potentially be much higher.


          2)Significant costs, likely in the range of $1 million to $2  
            million for automation costs to DSS.  Because the new  
            allowance in this bill is a supplemental food benefit, it  
            cannot be included in the CalWORKs monthly cash grant, but  
            must instead be accounted for separately on the recipient's  
            electronic benefit transfer (EBT) card. 


          COMMENTS:


          1)Purpose.  According to the author, "Individuals in low-income  
            households are often more likely to experience chronic  
            conditions such as diabetes, and face significant challenges  
            to balancing the cost of special nutrition needs.  In  
            addition, many Medi-Cal beneficiaries struggle to gain access  
            to their primary care physicians due to shortage of physicians  








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            and lack of transportation.  This bill will address this  
            reality by adopting a CalWORKs special foods allowance of $20  
            a month, issuing the allowance as a food benefit rather than  
            as cash, and permitting verification for the allowance to be  
            signed by qualified health professionals in addition to a  
            physician.  Doing so will improve the health of very poor  
            children and parents who face diet-related diseases, while  
            also leveraging downstream savings associated with reduced  
            Medi-Cal expenses, reduced school absences and improved  
            likelihood of achieving self-sufficiency, a core goal of the  
            CalWORKs program."


          2)Background. The CalWORKs program provides monthly income  
            assistance and employment-related services.  Federal funding  
            for CalWORKs comes from the Temporary Assistance for Needy  
            Families (TANF) block grant.  The average 2015-16 monthly cash  
            grant for a family of three on CalWORKs (one parent and two  
            children) is $506.55, and the maximum monthly grant amount for  
            a family of three, if the family has no other income and lives  
            in a high-cost county, is $704.  According to recent data from  
            the California Department of Social Services (DSS), over  
            497,000 families rely on CalWORKs, including over one million  
            children.  Nearly 60% of cases include children under 6 years  
            old.


            


            Current law allows, for families demonstrating special needs  
            not common to a majority of CalWORKs recipients (such as  
            unusual costs of transportation or laundry), a monthly $10  
            allowance for each member of the household who is eligible for  
            assistance.  This allowance can also be granted for needs  
            related to special diets, for circumstances other than  
            pregnancy, upon the recommendation of a physician. 










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            This bill would require an additional allowance of $20 or  
            actual expenses to a recipient who has a special, diet-related  
            food need caused by a verified medical condition. 





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081