BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 521 (Liu) - CalFresh employment and training program
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: April 23, 2015         |Policy Vote: HUMAN S. 4 - 0     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: Yes                    |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: May 11, 2015      |Consultant: Jolie Onodera       |
          |                                |                                |
           ----------------------------------------------------------------- 

          This bill meets the criteria for referral to the Suspense File. 


          Bill Summary:  SB 521:
                 Requires counties to complete specified tasks prior to  
               assigning a CalFresh penalty on a CalWORKs recipient that  
               has been sanctioned due to non-compliance with his or her  
               welfare-to-work plan.
                 Requires the Department of Social Services (DSS) to seek  
               a federal waiver to allow county agencies to serve CalFresh  
               E&T program recipients for up to five months, as specified.
                 Requires the state to include the CalFresh E&T program  
               in the state's Workforce Investment and Opportunity Act  
               (WIOA) state plan, as specified.
                 Requires the DSS to issue guidance annually for county  
               human services agencies electing to partner with community  
               colleges in the administration of its CalFresh E&T program,  
               as specified.


          Fiscal  
          Impact:  
            County mandate  :  Significant ongoing county administrative  
            costs potentially in the millions of dollars (General Fund) to  







          SB 521 (Liu)                                           Page 1 of  
          ?
          
          
            complete the specified tasks including instructing the  
            recipient how to comply with requirements, determining that  
            the individual does not qualify for an exemption and has not  
            registered for work, and notifying the recipient of  
            ineligibility for an exemption, prior to assigning a CalFresh  
            penalty. DSS data indicates an average of 27,812 cases in  
            non-compliance per month, and 60,269 cases sanctioned in 2014.  
            To the extent the increase in county agency workload qualifies  
            as a reimbursable state mandate, counties could submit claims  
            for reimbursement of those costs (General Fund). 
            CalFresh benefits/administration  :  Potentially significant  
            increase in CalFresh benefits and administrative costs  
            (Federal/State) to the extent the mandated county activities  
            and cancellation of penalties, as specified, result in fewer  
            cases being sanctioned under CalFresh.  
            CalFresh E&T services  :  Potentially significant increase in  
            services provided (Federal/State) through CalFresh E&T  
            programs to the extent the provisions of this measure enable  
            counties to provide services to additional recipients and/or  
            provide services for an extended period.
            Economic benefit  :  Additional CalFresh administrative costs  
            would be offset in part by an increase in sales tax revenue  
            (General Fund) to the extent families spend a significant  
            portion of their income on food, and increasing CalFresh  
            benefits would allow families to spend more income on taxable  
            items.
            WIOA state plan  :  Minor impact to Workforce Investment Board  
            to add CalFresh E&T program to the state plan.


          Background:  Existing law establishes a process for sanctioning adults in  
          the CalWORKs program who do not comply with their  
          welfare-to-work plan, as specified. Existing regulations require  
          that a CalFresh penalty be imposed when an individual is  
          sanctioned for failing to comply with CalWORKs welfare-to-work  
          program requirements, as well as other sanctions. 
          Existing law establishes within CalFresh the federal Employment  
          and Training (E&T) program to assist members of CalFresh  
          households in gaining skills, training, work, or experience that  
          will increase their ability to obtain regular employment.

          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,  








          SB 521 (Liu)                                           Page 2 of  
          ?
          
          
          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 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.

          The Senate Committee on Human Services analysis (April 14, 2015)  
          reported the following information related to the CalFresh E&T  
          program:
           
          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 percent federally funded activities accounted for $7 million  
          and federally matched funds accounted for the remainder. For FFY  
          2014, DSS 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. 

          Proposed Law:  This bill:
           Requires counties to complete the following activities prior  
            to assigning a CalFresh penalty on a CalWORKs recipient that  
            has been sanctioned due to non-compliance with his or her  
            welfare-to-work plan:
              o     Determined that the individual does not qualify for an  
                exemption to the CalFresh work requirement and has not  
                registered for work, and the county has notified the  
                recipient that the recipient is not eligible for an  
                exemption.
              o     Instructed the recipient about how to comply with the  
                requirements or verify an exemption to the CalFresh work  
                requirements.
           Provides that 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.
           Provides that a CalFresh recipient also receiving CalWORKs  








          SB 521 (Liu)                                           Page 3 of  
          ?
          
          
            cash aid or CalWORKs postemployment services is ineligible to  
            participate in the CalFresh E&T program, but the 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.
           Provides that a student is eligible to be assigned to  
            participate in CalFresh E&T only as a volunteer, not as a  
            mandatory participant.
           Requires the DSS to seek a federal waiver to allow county  
            agencies to serve CalFresh E&T program recipients for up to  
            five months, as specified.
           Requires the state to include the CalFresh E&T program in the  
            state's Workforce WIOA state plan, as specified.
           Requires the DSS to issue guidance annually for county human  
            services agencies electing to partner with community colleges  
            in the administration of its CalFresh E&T program, as  
            specified.


          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 able  
          bodied adult with dependents that requests one. This bill is  
          pending hearing in this Committee.
          Prior Legislation:  AB 1930 (Skinner) Chapter 729/2014 exempts  
          students in community colleges from the student work requirement  
          under CalFresh if they participated in the EOPS program, as  
          specified. This bill also required the state to establish a  
          protocol to screen students  


          Staff  
          Comments:  By requiring local agencies to complete additional  
          activities prior to assessing a CalFresh penalty, this bill  
          creates a state-mandated local program, the costs of which could  
          be subject to reimbursement by the State. In addition to any new  
          costs to counties that are not currently completing the  
          specified activities to assist recipients avoid a CalFresh  
          penalty, any costs incurred by counties currently assisting  
          clients to avoid penalties would also be potentially subject to  
          reimbursement by the State.
          To the extent the additional county efforts to assist clients  
          prior to assigning a CalFresh penalty results in fewer CalFresh  








          SB 521 (Liu)                                           Page 4 of  
          ?
          
          
          sanctions, the level of CalFresh benefits received by recipients  
          could significantly increase.  The magnitude of the increase  
          would be dependent on the number of clients positively impacted,  
          which is unknown. Additional CalFresh administrative costs would  
          be offset in part by an increase in sales tax revenue to the  
          extent families spend a significant portion of their income on  
          food, and increasing CalFresh benefits would allow families to  
          spend more income on taxable items.

          To the extent the federal waiver is approved and/or the guidance  
          provided by DSS assists county human services agencies electing  
          to partner with community colleges in the administration of its  
          CalFresh E&T program, participation in CalFresh E&T programs  
          could significantly increase.


                                      -- END --