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 ----------------------------------------------------------------- |Policy |Human Services |Vote:|5 - 1 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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. AB 2151 Page 4 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