BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:              SB 521
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          |Author:   |Liu                                                   |
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          |Version:  |February 26, 2015      |Hearing    |April 21, 2015   |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Mareva Brown                                          |
          |:         |                                                      |
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                 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.)








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             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  









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               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.










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             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.









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             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.










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             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








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          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. 










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          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 









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          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










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          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








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          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. 











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          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:
          









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          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  . 










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          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) A  list of approved sources of   description of requirements  
          for  state share match  for   that is specific to  community college  
          CalFresh E&T programs.
          (2) A list of education courses  known to CDSS to qualify   that  
          would be approved  under 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.









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          (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 --
          












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