BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 904 (Hertzberg) - Public social services: CalFresh
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|Version: January 21, 2016 |Policy Vote: Human Services |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: April 11, 2016 |Consultant: Jolie Onodera |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 904 would require all eligible counties to be
included in the annual federal waiver of the Able-Bodied Adults
Without Dependents (ABAWDs) time limitation for CalFresh
benefits, as specified.
Fiscal
Impact:
CalFresh administration : Potentially major state-reimbursable
county costs in the millions of dollars (General Fund) for
CalFresh administration to the extent counties are no longer
allowed to opt out of participation in the federal waiver.
Although counties have historically opted to participate in
the federal waiver, by eliminating the ability of counties to
opt out could result in claims for reimbursement for
administrative costs for ABAWDs impacted by the waiver.
CalFresh/CFAP benefits : To the extent a county would have
otherwise opted out of the federal waiver, potentially
SB 904 (Hertzberg) Page 1 of
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significant increase in CalFresh (Federal Funds) and CFAP
(General Fund) benefits. For every 5,000 ABAWDs impacted,
additional CalFresh benefits of $8.6 million and CFAP benefits
of $0.1 million could be received annually by ABAWDs that
otherwise may have been denied aid (based on an average
monthly benefit of $145 per month).
Background: Existing federal law establishes the Supplemental Nutrition
Assistance Program (SNAP) for the purpose of promoting and
safeguarding the health and well-being of the nation's
population by raising the levels of nutrition among low-income
households. (Code of Federal Regulations, Title 7, § 271.1.)
Existing state law establishes the CalFresh program to
administer the provision of federal SNAP benefits to families
and individuals meeting specified eligibility criteria. (Welfare
and Institutions Code (WIC) §§ 18900-18927.) Additionally,
existing law establishes the California Food Assistance Program
(CFAP) which provides food benefits to eligible legal
noncitizens that meet all federal SNAP eligibility criteria with
the exception of their immigration status. CFAP benefits and
administration costs are funded entirely with General Fund. (WIC
§§ 18930-18935.)
Under federal law, able-bodied adults without dependents
(ABAWDs) - persons between the ages of 18 and 49 who have no
dependents and are not disabled - are restricted to time-limited
SNAP benefits of three months during any 36-month period unless
special work requirements are met. To be eligible beyond the
time limit, an ABAWD must work at least 20 hours per week,
participate in qualifying education and training activities at
least 80 hours per month, or comply with a workfare program.
ABAWDs may also meet work requirements through a SNAP Employment
and Training Program.
The federal government has offered states the option to seek
waivers of the ABAWD time limit in areas with high unemployment,
known as Labor Surplus Areas. Under a federal waiver, an ABAWD
is still subject to the same work requirements as other adults
receiving SNAP benefits, but they are no longer denied SNAP
benefits if unable to find a job within three months.
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On February 2, 2016, the Department of Social Services (DSS)
notified counties through an All County Information Notice that
the USDA Food and Nutrition Service approved California's
request for a one-year extension of the statewide waiver of the
three-month time limit for CalFresh benefits for ABAWDs through
December 31, 2017.
SB 68 (Senate Budget and Fiscal Review) Chapter 78/2005 made it
mandatory, to the extent permitted by federal law, for the DSS
to annually seek a federal waiver of the three-month limitation
on SNAP benefits for ABAWDs. SB 68 additionally provided
counties the option of choosing not to participate in the waiver
request, subject to the provision of documentation from the
board of supervisors of the non-participating county to that
effect. According to the DSS, only one county has opted out of
the ABAWD waiver in the past (Lake County in 2006).
This bill seeks to maximize participation in the CalFresh
program by eliminating the authority of a county to opt out of a
federal waiver request of the ABAWD time limitation for CalFresh
benefits.
Proposed Law:
This bill establishes Legislative intent that the CalFresh
program be administered in a way that maximizes eligibility and
participation in the program, to the extent permitted by federal
law. Additionally, this bill:
Eliminates the option for a county to decline participation in
an existing federal SNAP waiver of the benefit time limit for
ABAWDs to three months in a three-year period, unless
participants have met the work participation requirements.
Deletes the requirement for counties that opt out of the
waiver to submit documentation to the board of supervisors of
that county to that effect.
Deletes the provision of law authorizing the Department of
Social Services to notify counties of the federal waiver via
all county letter or similar instructions.
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Prior
Legislation: SB 306 (Hertzberg) 2015, was similar to but
broader in scope than this measure. In addition to the
provisions included in this bill, SB 306 prohibited any month
during a federally-declared recession from being counted toward
the CalWORKs 48-month time limit, and required all counties to
participate in the CalFresh Employment and Training program, as
specified. This bill was held on the Suspense File of this
Committee.
AB 1970 (Skinner) 2012, the Social Services Modernization Act of
2012, included various provisions seeking to streamline the
application and recertification process for public benefits. AB
1970 also deleted the county option to decline participation in
the annual federal waiver request of the existing SNAP time
limitation for ABAWDs. This bill was held on the Suspense File
of this Committee.
SB 68 (Budget and Fiscal Review) Chapter 78/2005, added WIC §
18926, mandating the state to annually seek a federal waiver of
the SNAP time limitation for ABAWDs.
Staff
Comments: By eliminating the option for counties to decline
participation in the annual federal waiver of ABAWD time-limited
benefits, this bill creates a state-mandated local program,
potentially resulting in significant General Fund costs to
reimburse counties for CalFresh administration costs for ABAWDs
impacted by the waiver should the Commission on State Mandates
determine that these local agency expenditures qualify as a
reimbursable state mandate.
The DSS has indicated that all counties are currently
participating in the federal waiver that is effective through
December 31, 2017. Although counties have historically opted to
participate in the waiver, the DSS has indicated that one county
did opt out of participation in the federal waiver in 2006.
Based on data from DSS, the number of ABAWDs statewide was
approximately 415,000 as of October 1, 2015. Based on the
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average monthly CalFresh administrative cost per case of $9.73
(based on semi-annual reporting cost assumptions) for
non-assistance cases, assuming 50 percent of total ABAWDs would
otherwise be impacted by the waiver could result in over $24
million (General Fund) in administrative costs associated with
additional benefits provided to ABAWDs. While $12 million would
be covered by federal funds, the 15 percent county share of the
remaining $12 million could require General Fund to the extent
the counties submit claims for state reimbursement of these
costs, and the Commission on State Mandates determines these
costs are eligible for reimbursement. Costs would be
proportionally higher or lower depending on the number of ABAWDs
statewide actually impacted by the waiver and the length of time
the ABAWDs would have otherwise been denied aid in the absence
of mandated participation in the federal waiver.
To the extent a county would have otherwise opted out of the
federal waiver, mandating county participation in the waiver
would result in additional CalFresh (Federal) and CFAP (General
Fund) benefits received by ABAWDs that otherwise may have been
cut off from aid. For every 5,000 participants impacted, $8.6
million in additional CalFresh benefits and $0.1 million in CFAP
benefits could be received, based on an average monthly benefit
of $145 per month. For counties with larger or smaller
populations of ABAWDs, the level of benefits potentially
received would be accordingly greater or less.
Additionally, any increases in CalFresh and CFAP benefits could
subsequently result in increased sales tax revenue, assuming
families spend a significant portion of their income on food,
and increasing benefits would allow families to spend more
income on taxable items.
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