BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator McGuire, Chair 2015 - 2016 Regular Bill No: SB 521 ----------------------------------------------------------------- |Author: |Liu | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |February 26, 2015 |Hearing |April 21, 2015 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mareva Brown | |: | | ----------------------------------------------------------------- Subject: CalFresh employment and training program SUMMARY This bill would make several changes to the CalFresh Employment and Training (E&T) program. It would require the California Department of Social Services (CDSS) to request a federal waiver to permit counties to provide post-employment services of the CalFresh E&T program, for a period of up to five months. It would require CDSS to issue annual guidance for county human services agencies wishing to partner with a community college in the administration of its CalFresh E&T program, as specified. Additionally, it would prohibit a county from assigning a CalFresh penalty to a client who has been sanctioned in CalWORKs for noncompliance with their welfare-to-work plan until the county has taken steps to ensure the recipient does not qualify for an exemption to the CalFresh work requirement, or has the opportunity to cancel the sanction by registering for work, as specified. The bill also would require the CalFresh E&T program to be included in the Workforce Investment and Opportunity Act state plan, and it makes related findings and declarations. ABSTRACT Existing law: 1) Establishes the federal Temporary Assistance for Needy Families (TANF) program, which permits states to implement the program under a state plan. (42 USC § 601 et seq.) SB 521 (Liu) PageB of? 2) Establishes in state law the CalWORKs program to provide cash assistance and other social services for low-income families through the TANF program. Under CalWORKs, each county provides assistance through a combination of state, county and federal TANF funds. (WIC 10530) 3) Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) within the US Department of Agriculture (USDA) to promote the general welfare and to safeguard the health and wellbeing of the nation's population by raising the levels of nutrition among low-income households. It establishes SNAP eligibility requirements, including income that is at or below 130 percent of the federal poverty level and is determined to be a substantial limiting factor in permitting a recipient to obtain a more nutritious diet. (7 CFR 271.1; 7 CFR 273.9) 4) Establishes in California statute the CalFresh program to administer the provision of federal SNAP benefits to families and individuals. (WIC 18900 et seq.) 5) Establishes under the CalWORKs benefit, a welfare-to-work program and requirement that adults participate in work or employment-related activities for specified amounts of time. (WIC 11320, et seq.) 6) Establishes a process for sanctioning adults in the CalWORKs program who do not comply with their welfare-to-work plan, as specified. (WIC 11327.4) 7) Requires that a CalFresh sanction be imposed when an individual is sanctioned for failing to comply with CalWORKs welfare-to-work program requirements, as well as other sanctions. (MPP 63-407.21) 8) Requires that each county welfare department provide transitional CalFresh benefits to households terminating their participation in the CalWORKs program for five months, and to the extent allowed by federal law. (WIC 18901.6)(MPP 63-504.132) 9) Establishes within CalFresh the federal E&T program to SB 521 (Liu) PageC of? assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment. (7 CFR 273.7, WIC 18926.5) 10) Requires that an educational program that could qualify under federal regulations as an E&T program must be considered an E&T program unless prohibited by federal law. (WIC 18901.11(a)) 11) Defines in federal statute, approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities. (7 U.S.C. Sec. 2015(e)(3)(B) 12) Requires CDSS in consultation with the office of the chancellors of the California Community Colleges, California State University, University of California, the California Workforce Investment Board, counties and advocates to establish a protocol to identify and verify participation in educational programs that would exempt a student from CalFresh E&T requirements. (WIC 18901.11 (b)) This bill: 1) States various Legislative findings, including: a. According to the Employment Development Department, Labor Market Information Division, there were over 600,000 long-term unemployed persons in California in February of 2014, well above pre-Great Recession levels. b. Counting people who are out of work and have stopped searching, California had the highest "U6" unemployment rate in the country, 15.8 percent, in late 2014. c. The federal Supplemental Nutrition Assistance Program Employment and Training Program offers a dollar for dollar federal match of allowable expenses to fund employment training and post-employment support for CalFresh recipients for the purposes of increasing future earnings in order to reduce their dependence on CalFresh. SB 521 (Liu) PageD of? 2) Adds a section to existing statute that prohibits a county from penalizing the benefit of a CalFresh recipient because the recipient has been sanctioned for non-compliance with their CalWORKs Welfare to Work plan until the county has taken several actions: a. Determined that the recipient is not eligible for an exemption and has not registered for work, as required, and b. Notified the recipient that the recipient is ineligible for an exemption, and c. Instructed the recipient about how to comply with the requirements or verify an exemption from the CalFresh work requirements. 3) Requires that if a recipient complies with the requirements during the notice of adverse action period, and has registered for work with the Employment Developemnt Department, the proposed CalFresh penalty shall be canceled and shall not count as an occurrence for the purposes of determining the length of future CalFresh disqualification periods. 4) Requires that if a county elects to administer a CalFresh E&T program, as defined in existing statute, it must screen the recipients pursuant to paragraph (b) of 18926.5 before placement into the program. 5) Specifies that receipt of CalWORKs cash aid by another person in the recipient's household does not impact the eligibility of a CalFresh recipient to participate in a CalFresh E&T program. 6) Requires CDSS to seek a federal waiver to allow county human services agencies to extend CalFresh E&T program benefits to up to five months, matching the length of service for transitional CalFresh benefits, as specified, with the post-employment services of the CalFresh E&T program for a period of up to five months. 7) Requires the state to include the CalFresh E&T program in the state's Workforce Investment and Opportunity Act (WIOA) state plan in order to improve coordination between established workforce training programs. SB 521 (Liu) PageE of? 8) Requires CDSS to annually issue guidance through all county letters for county human services agencies wishing to partner with a community college in the administration of its CalFresh E&T program in order to improve employment opportunities and increase wages of CalFresh recipients by increasing access to adult and post-secondary education and vocational training programs at California community colleges. 9) Additionally, requires CDSS to support any county seeking approval by the USDA to include a community college component in its approved CalFresh E&T program plan. 10) Requires that the guidance include: a. A list of approved sources of that can be used to match state funding for community college CalFresh E&T programs. b. A list of federally approved education courses, as defined, which are either: i. Part of a program of career and technical education, that may be completed within four years at an institution of higher education, as defined, or ii. Limited to remedial courses, basic adult education, literacy, or English as a second language. c. The additional outcomes that are required to be reported beyond those required in existing law, when a county's CalFresh E&T program includes a community college component. d. The process for verifying that a student is eligible to participate in the CalFresh E&T program at a community college. 11) Specifies that a student is eligible to be assigned to participate in the program by the county human services agency or designee of the agency only as a volunteer, not as a mandatory participant. SB 521 (Liu) PageF of? 12) Prohibits a CalFresh recipient who is also receiving CalWORKs benefits from participating in the CalFresh E&T program, but declares that the recipt of CalWORKs cash aid by other people in his or her household shall not impact his or her eligibility for the CalFresh E&T program. 13) Specifies that counties are not required to offer a particular component as a part of its CalFresh E&T plan, and that this section does not restrict the use of federal funds for the financing of CalFresh E&T programs. FISCAL IMPACT This bill has not been analyzed by a fiscal committee. BACKGROUND AND DISCUSSION Purpose of the bill: According to the author, more than 4 million Californians receive food assistance through CalFresh, with the majority of recipients either unemployed or underemployed. According to the California Employment Development Department's Labor Market Information Division, in January 2015 there were more than 1.3 million unemployed individuals in California. The author states that the CalFresh E&T Program is intended to improve employment skills and work opportunities, reducing reliance on CalFresh benefits in the future. However, the author states this program has gone underutilized, leaving dollar-for-dollar federal funds intended for employment training unspent while CalFresh recipients remain unemployed and underemployed. Food Insecurity An estimated 14.5 percent of American households were food insecure at least some time during 2012, meaning they lacked access to enough food for an active, healthy life for all household members.<1> During the last decade, and especially during the Great Recession, the number of families experiencing --------------------------- <1> USDA "Household Food Security in the United States in 2012," Economic Research Report No. (ERR-155) September 2013 SB 521 (Liu) PageG of? food insecurity has increased. According to data from the California Health Interview Survey (CHIS), at least 4 million low-income Californians struggled with food insecurity during 2011-12. A research brief published in 2012 by UCLA's Center for Health Policy Research and the California Food Policy Advocates noted that in 2009, at the height the Recession, more than four in 10 Californian adults, roughly 3.8 million people, who were at or below 200 percent of the Federal Poverty Level (FPL) suffered from food insecurity. Of those, more than one third - 1.4 million people - reported very low food security. This is defined as having to cut back on food. Nationally, about 5.7 percent of Americans suffered from very low food security. CalFresh California currently provides nutritional benefits to approximately 4.4 million people through the USDA's SNAP program, which funds 100 percent of food benefits to eligible households nationwide. California, its 58 counties and the federal government share the cost of administering the program, which is known as CalFresh. Specific eligibility requirements are set by the USDA, including gross- and net-income asset tests for most recipients, work requirements and specific documentation requirements. The maximum gross income allowed to be eligible is 130 percent of FPL, or $26,117 for a family of four in 2015. The average monthly benefit for a CalFresh recipient in 2014 was $141.99 per month, or $4.73 per day, according to the USDA. Transitional CalFresh benefits Federal and state law require counties to provide up to five months of transitional CalFresh benefits to a family leaving the CalWORKs program without requiring the family to reapply or submit additional paperwork or information. States are prohibited in federal law from providing transitional benefits to families that are removed from TANF, or CalWORKs, because of a sanction, or to households disqualified from the CalFresh program. SB 521 (Liu) PageH of? During the transitional period the household's food stamp benefit level is frozen at the amount it received prior to its TANF case closure, adjusted for the loss of TANF income. There are two possible exceptions to this freeze: 1) a household may reapply in order to have its benefits adjusted, and 2) the state may opt to adjust benefits based on information it receives from another program in which the household participates. If a household is due to reapply for benefits during the transitional period, the state may push back the reapplication or recertification until the transitional period is over. According to a brief published by the Center on Budget and Policy Priorities in 2003, shortly after federal passage of the enabling legislation, most families that leave TANF programs remain income eligible for food stamps when they go to work. However, research by both the US Department of Health and Human Services and the Urban Institute has shown that fewer than half of the individuals who leave TANF cash assistance continue to participate in the Food Stamp Program despite earning low wages and (in most cases) remaining eligible for benefits. The transitional food stamp benefit was intended to help families to transition to work with more stability, ensuring families are better off working. Work requirements SNAP requires all recipients, unless exempted by law, to register for work at the appropriate employment office, participate in an employment and training program if assigned by a state or local administering agency, and accept an offer of suitable employment. SNAP beneficiaries do not have to work or participate in employment and training activities if they are under age 16 or over age 59, are physically or mentally unfit for employment, are caring for a child under the age of six, already employed 30 hours a week, or, subject to and complying with work requirements for other programs, such as CalWORKs, among other exemptions. CalFresh E&T program SB 521 (Liu) PageI of? The CalFresh E&T program is a federally subsidized, optional program administered by counties. It is designed to help CalFresh participants gain skills, training, work experience, and to find jobs. Federal law provides for certain exemptions, but counties can additionally determine exemptions to program requirements. CalFresh E&T programs can include a variety of training and employment activities, such as job search; general education development (GED) attainment; high school equivalency; job skills training; short-term vocational training and supportive services. Each county has discretion to determine the range of services, as well as the rules governing mandatory and voluntary placements and exemptions. For federal fiscal year (FFY) 2015, 24 counties in California participated in the CalFresh E&T program, which totaled nearly $106 million. One year earlier, there were 26 participating counties and $101 million in funding. Of the FFY 2015 dollars, 100% federally funded activities accounted for $7 million and federally matched funds accounted for the remainder. For FFY 2014, CDSS reported more than 1.2 million work registrants. Of this population, 77,427 individuals were participating in at least one CalFresh E&T program component. CalWORKS One of California's most essential anti-poverty strategies is the California Work Opportunity and Responsibility to Kids program (CalWORKs), which provides cash assistance to approximately 540,000 families - including more than 1 million children. Federal funding for CalWORKs comes from the TANF block grant. TANF requires that families participate in federally allowable work activities in order to receive benefits through the program. A grant to a family of three in a high-cost California county is $704 per month in 2015, which equates to slightly more than 40 percent of FPL. CalFresh sanctions under CalWORKs SB 521 (Liu) PageJ of? Food stamp sanctions must be imposed when an individual is sanctioned for failing to comply with work requirements of the CalWORKS Welfare-to-Work Program, according to the state's manual of policies and procedures and a directive from CDSS to counties. A one-, three-, or six-month food stamp sanction will be imposed unless the sanctioned individual qualifies for one of the defined food stamp work registration exemptions, according to federal legislation and regulations.<2> The sanctions are progressive: They increase with each violation. WIOA The July 2014 federal Workforce Innovation and Opportunity Act (WIOA) makes significant changes to vocational rehabilitation and independent living programs and is designed to help job seekers - including those with barriers to employment - access jobs, education, and support services to succeed in the modern labor market. The law also encourages workforce development programs to help match employers with skilled workers needed to compete in the global economy. WIOA emphasizes quality training that leads to credentials, regional planning and service coordination, and the use of targeted sectorbased strategies and career pathways. WIOA makes Temporary Assistance for Needy Families (TANF) a mandatory partner, unless the governor of a state specifically excludes the program in writing.<3> WIOA requires a single, unified, fouryear state plan covering all core programs --------------------------- <2> Department of Social Services, All County Letter No. 10-11, July 27, 2010 <3> http://www.aphsa.org/content/dam/NASTA/PDF/WIOAOpportunities%20fo r%20Human%20Services%20Final.pdf SB 521 (Liu) PageK of? authorized under the bill. The plan must describe the state's overall strategy for workforce development and how the strategy will meet identified skill needs for workers, job seekers and employers. Per California's Workforce Investment Board website, the state board approved creation of the WIOA Implementation Work Group in September 2014. Over the next 12 months, the group will ensure that California's implementation of the new law reflects state strategies and aligns resources accordingly. The group's work includes developing WIOA performance measures and multi-agency metrics, developing policy, catalyzing systems alignment and regional collaboration, and determining any needed governance changes. This bill mandates the additional inclusion of the CalFresh E&T program in the crafting of California's state WIOA plan. CalFresh and postsecondary education Federal law prohibits students enrolled at least half-time in institutions of higher education from eligibility in the federal SNAP program, unless the student qualifies for an exemption. Among the exemptions is participation in an employment and training program. AB 1930 (Skinner, Chapter 729, Statutes of 2014) required that an educational program identified by CDSS as having a component of a CalFresh E&T program is able to fulfill the federal requirements of an employment and training program. This opened the door for students in specified programs at community colleges to qualify for food benefits. That bill also required the community colleges, with the voluntary involvement of the CSU and UC systems, work with CDSS to establish guidelines to identify categories of students that could qualify for an exemption as well as identifying the programs in which enrollment might satisfy the E&T training requirement. SB 521 (Liu) PageL of? Related legislation: SB 306 (Hertzberg, 2015) would require all counties to participate in the CalFresh E&T program, and would direct each county to provide a placement in the program for every ABAWD that requests one, among other provisions. AB 1930 (Skinner, Chapter 729, Statutes of 2014) exempted students in community college from the student work requirement under CalFresh if they participated in the EOPS program, as specified. It also required the state to establish a protocol to screen students for all potential exemptions to the work rule, as defined. SB 999 (Liu, 2014) would have required CDSS and the California Community Colleges to identify categories of students who might qualify for federal exemptions that would allow them to receive CalFresh benefits and to provide students with documentation to assist in getting waivers. It died in the Senate Appropriations Committee. SB 43 (Liu Chapter 507, Statutes of 2011) permitted counties to defer able-bodied working adults from CalFresh E&T participation in high unemployment areas, as specified. COMMENTS SB 521 includes five different approaches to reduce the effects of poverty in California. Staff recommends the following amendments to clarify the intent and language of the bill, as well as to clarify that clients are ineligible for both CalFresh E&T and CalWORKs welfare to work benefits simultaneously. Section 1: Delete findings and declarations, as (a) and (b) are date-specific and (c) is unnecessary to explain the bill. Section 2: SB 521 (Liu) PageM of? Clarify language in section 11327.10 by breaking into separate subsections and clarify that a CalFresh recipient is ineligible for E&T services if they receive CalWORKs post-employment services. In section (2)(c) strike redundant language, as follows: 11327.10. (a) When a CalWORKs recipient has been sanctioned due to non-compliance with his or her welfare-to-work plan, pursuant to Section 11327.4, the recipient shall not be assigned a CalFresh penalty until the county has: (1) Determined that the individual does not qualify for an exemption to the CalFresh work requirement and has not registered for work, the county has notified the recipient that the recipient is not eligible for an exemption; and, (2) Has instructed the recipient about how to comply with the requirements or verify an exemption to the CalFresh work requirements. (b) If the recipient complies with the requirements during the notice of adverse action period and has registered for work with the Employment Development Department, the proposed penalty shall be canceled and shall not count as an occurrence for the purposes of determining the length of future CalFresh disqualification periods. (c)If a county elects to administer a CalFresh E&T program pursuant to Section 18926.5, it shall screen these recipients pursuant to paragraph (b) of Section 18926.5 before placement into the program.A CalFresh recipient also receiving CalWORKs cash aid or CalWORKs post-employment services is ineligible to participate in the CalFresh E&T program, but the receipt of CalWORKs cash aid by other people in his or her household shall not impact his or her eligibility for the CalFresh E&T program. Section 3: Strike redundant language, as follows: 18901.65. The department shall seek a federal waiver to allow county human services agencies to serve CalFresh E&T program recipients for up to five months, to match the length of service for transitional CalFresh benefits, established in Section 18901.6., with the post-employment services of the CalFresh E&T program, established in Section 18926.5, for a period of up to five months. SB 521 (Liu) PageN of? Section 5: Remove reference to CDSS supporting counties seeking waiver approval at the request of the author, to reduce the scope of CDSS responsibility. Additionally, add language to clarify that guidance may be issued in conjunction with other, related, guidance that is sent annually. Additional amendments clarify that requirements to identify E&T-eligible courses are those that are already known to CDSS, per requirements in AB 1930 in 2014, and to clarify that a client cannot be eligible for post-employment training in both CalWORKs and CalFresh at the same time. 18901.13. (a) The department shall, in order to improve employment opportunities and increase wages of CalFresh recipients by increasing access to adult and post-secondary education and vocational training programs at California community colleges, annually issue guidance through all county letters for county human services agencies wishing to partner with a community college in the administration of its CalFresh E&T program, and support any county seeking approval by the United States Department of Agriculture to include a community college component in its approved CalFresh E&T program plan. (b) The guidance provided for in this section may be issued with other E&T guidance not specific to community colleges and shall include: (1) Alist of approved sources ofdescription of requirements for state share matchforthat is specific to community college CalFresh E&T programs. (2) A list of education courses known to CDSS to qualifythat would be approvedunder Section 4007 of the Agricultural Act of 2014 (7 U.S.C. Sec. 2015(e)(3)(B)), which are either: (A) Part of a program of career and technical education, as defined in the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. Sec. 2302) that may be completed within four years at an institution of higher education, as defined in Section 102 of the Higher Education Act of 1965 (20 U.S.C. Sec. 1002). (B) Limited to remedial courses, basic adult education, literacy, or English as a second language. (3) The additional outcomes that are required to be reported beyond those required by subdivision (c) of Section 18926.5, when a county's CalFresh E&T program includes a community college component. SB 521 (Liu) PageO of? (4) The process for verifying that a student is eligible to participate in the CalFresh E&T program at a community college. A student is eligible to be assigned to participate in the program by the county human services agency or designee of the agency only as a volunteer, not as a mandatory participant. A CalFresh recipient also receiving CalWORKs cash aid or CalWORKs post-employment services is ineligible to participate in the CalFresh E&T program, but the receipt of CalWORKs cash aid by other people in his or her household shall not impact his or her eligibility for the CalFresh E&T program. (c) Nothing in this section requires a county to offer a particular component as a part of its CalFresh E&T plan or restricts the use of federal funds for the financing of CalFresh E&T programs. POSITIONS Support: Alameda County Community Food Bank California Association of Food Banks California Catholic Conference California Hunger Action Coalition Coalition of California Welfare Rights Organizations Community Food and Justice Coalition Courage Campaign National Association of Social Workers, California Chapter PolicyLink Reading and Beyond San Diego Hunger Coalition St. Anthony's Foundation Western Center on Law and Poverty Women's Foundation of the California Women's Policy Institute Oppose: None. -- END -- SB 521 (Liu) PageP of?