BILL ANALYSIS Ó
AB 2151
Page 1
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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|Policy |Human Services |Vote:|5 - 1 |
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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.
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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
AB 2151
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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