BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          Bill No:                           SB 904     Hearing Date:      
          March 29, 2016
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          |Author:    |Hertzberg                                            |
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          |Version:   |January 21, 2016                                     |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Taryn Smith                                          |
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                     Subject:  Public social services:  CalFresh


           SUMMARY
           
          This bill would require all eligible counties to be included in  
          the annual federal waiver of the Able Bodied Adult Without  
          Dependents (ABAWD) time limitation and would delete the  
          authorization for the California Department of Social Services  
          (CDSS) to implement this provision by all-county letters or  
          similar instructions. 


           ABSTRACT
           
          Existing law: 
          
             1)   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)

             2)   Establishes in California statute the CalFresh program  
               to administer the provisions of federal SNAP benefits to  








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               families and individuals meeting specified criteria. (WIC  
               18900 et seq.)


             3)   Requires CDSS annually, to the extent permitted by  
               federal law, to seek a federal SNAP waiver to the  
               three-month limit in a three-year period of CalFresh  
               benefits for an ABAWD, unless that participant has met the  
               work participation requirement. (WIC 18926)


          This bill:

             1)   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.

             2)   Eliminates the option for a county to decline  
               participation in an existing federal SNAP waiver that  
               waives the limit for an able-bodied adult without  
               dependents to three months of CalFresh benefits in a  
               three-year period, unless that participant has met the work  
               participation requirement. 

             3)   Deletes the requirement for counties that decline the  
               waiver to submit documentation from the board of  
               supervisors of that county to that effect.

             4)   Removes the ability of CDSS to notify counties of the  
               federal waiver via all county letter.


           FISCAL IMPACT
           
          This bill has not been analyzed by a fiscal committee.

           BACKGROUND AND DISCUSSION
           

          According to the author, more than 80 percent of the able-bodied  
          adults without dependents subject to a federally mandated  
          three-month limit to CalFresh benefits live with incomes below  
          half of the poverty line. SB 904 would require California  









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          counties and regions to accept extended federal funds (beyond  
          the 3-month limit) for able bodied adults without dependents in  
          areas of declared job shortages. The author states that extended  
          assistance should not be refused when the health and economic  
          realities of CalFresh participants are desperate. 

          According to the author, considering the existing barriers in  
          participation, requiring all counties to accept ABAWD waivers  
          will easily remove a barrier in delivering food assistance to  
          eligible individuals. The author further states that ensuring  
          CalFresh reaches all eligible individuals is not only important  
          for the nutritional needs of families, but also for  
          strengthening economic activity. The author cites a USDA data  
          that indicates every dollar in SNAP expenditures generates $1.79  
          in economic activity, and will have an ongoing multiplier effect  
          on the economy.<1>

          The author states there is little evidence that participating in  
          CalFresh discourages individuals from working when jobs are  
          available. Instead, participants face limited job prospects  
          since they are more likely to lack basic job skills like reading  
          and math.  According to the author, this bill will help prevent  
          hunger and hardship among Californians when jobs are scarce.  

          Food Insecurity


          Nationally, the USDA reported an estimated 14 percent of  
          American households were food insecure at least some time during  
          the year in 2014, meaning they lacked access to enough food for  
          an active, healthy life for all household members. 


          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  
          ---------------------------


          <1>  
           http://www.ers.usda.gov/topics/food-nutrition-assistance/suppleme 
          ntal-nutrition-assistance-program-(snap)/economic-linkages.aspx 







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          the Federal Poverty Level 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


          CalFresh provides monthly benefits to assist low-income  
          households in purchasing food or food product intended for human  
          consumption.  CalFresh benefits are 100% federally funded and  
          national eligibility standards and benefit levels are  
          established by the federal government. To participate in  
          CalFresh, households must meet certain income-eligibility  
          standards.  The average monthly benefit for a CalFresh recipient  
          in federal fiscal year 2015 was $126.83 per month, or $4.23 per  
          day, according to the USDA. Households who receive or are  
          eligible to receive cash assistance under CalWORKs or General  
          Assistance/General Relief programs are categorically eligible  
          for CalFresh.  

          CalFresh currently serves approximately 4.4 million people,  
          according to USDA data. Nonetheless, California's participation  
          rate has been ranked last or near last in the country for years,  
          prompting concerns from the USDA, stories in the state's  
          newspapers and two Legislative hearings in 2014. 


          In 2013, the year for which the most recent data is available,  
          California's SNAP participation rate was 66 percent of eligible  
          individuals.  That year, California and Nevada tied for  
          second-lowest participation rate in the country. Wyoming's  
          participation rates were the lowest at 57 percent. That rate  
          compares to a national average of 85 percent. Just 52 percent of  
          California's eligible working poor families received CalFresh  
          benefits, the worst rate in the country, compared to a national  















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          average of 74 percent.<2> 


          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 (or  
          12, in some cases), already employed 30 hours a week, or,  
          subject to and complying with work requirements for other  
          programs, such as those required by CalWORKs, among other  
          exemptions.


          Able Bodied Adults Without Dependents (ABAWDs)

          Federal law restricts the amount of time a childless,  
          able-bodied adult can receive SNAP benefits to three months  
          during any three-year time period unless they are working at  
          least 20 hours per week.  It can be difficult to meet these work  
          requirements when jobs are scarce.  To address job shortage  
          issues, the federal government offers waivers to eliminate time  
          limits in areas with high unemployment, known as Labor Surplus  
          Areas.  Under a waiver, an ABAWD is still subject to the same  
          work requirements as other adults receiving food stamps, but  
          they are no longer cut off from food aid if they can't find a  
          job by the end of three months. 

          SB 68 (Senate Budget and Fiscal Review, Chapter 78, Statutes of  
          2005) made it mandatory, to the extent permitted by federal law,  
          for CDSS to seek a federal waiver of the three month limitation  
          on SNAP benefits for ABAWDs.  SB 68 gave counties the option of  
          choosing not to accept the waiver, thereby refusing federal  
          ---------------------------
          <2> USDA, "Reaching Those in Need: Estimates of State  
          Supplemental Nutrition Assistance Program Participation Rates in  
          2013," February 2016










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          money for food assistance. In 2006, at least one county opted  
          out of the ABAWD waiver.  After that, it appears no other county  
          has opted out of the waiver. 


          Declaration of Recession
          
          A recession in the United States is officially declared by the  
          National Bureau of Economic Research, a private, nonprofit,  
          nonpartisan research organization committed to undertaking and  
          disseminating unbiased economic research in a scientific manner,  
          and without policy recommendations, among public policymakers,  
          business professionals, and the academic community. The NBER was  
          founded in 1920, according to its website, and counts among its  
          researchers 24 Nobel Prize winners in Economics and thirteen  
          past chairs of the President's Council of Economic Advisers. 

          The National Bureau of Economic Research has declared five  
          recessions since 1980:<3>
                                                         
          
                  ----------------------------------- 
                 |         Dates         | Duration  |
                 |-----------------------+-----------|
                 |January 1980 - July    |13 months  |
                 |1980                   |           |
                 |-----------------------+-----------|
                 |July 1981 - November   |16 months  |
                 |1982                   |           |
                 |-----------------------+-----------|
                 |July 1990 - March 1991 |8 months   |
                 |-----------------------+-----------|
                 |March 2001 - November  |8 months   |
                 |2001                   |           |
                 |-----------------------+-----------|
                 |December 2007 - July   |18 months  |
                 |2009                   |           |
                  ----------------------------------- 
                                                               Source:  
                         National Bureau of Economic Research


          Related Legislation:



          ---------------------------
          <3> http://www.nber.org/cycles.html








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          SB 306 (Hertzberg, 2015) included provisions of SB 904, but also  
          had two components that are not included in SB 904.  Those  
          components were to: 1) prohibit any month during a  
          federal-declared recession from being counted toward the  
          CalWORKSs 48-month time limit, and 2) require all counties to  
          participate in the CalFresh Employment and Training program and  
          provide a placement in the program for every able bodied adults  
          without dependents that requests one. SB 306 was held in the  
          Senate Appropriations Committee.


          SB 43 (Liu, Chapter 507, Statutes of 2011) permitted counties to  
          defer able-bodied working adults from required employment and  
          training participation in high unemployment areas, as specified.


          SB 68 (Budget and Fiscal Review, Chapter 78, Statutes of 2005)  
          added WIC Section 18926, requiring the state to seek available  
          able bodied adults without dependents waivers.








           POSITIONS
                                           
          Support:  
               Coalition of California Welfare Rights Organizations  
          (Co-sponsor)
               Western Center on Law and Poverty (Co-sponsor)
               Alameda County Community Food Bank
               California Association of Food Banks
               California Catholic Conference, INC
               California Food Policy Advocates
               California Hunger Action Coalition
               California Immigrant Policy Center
               Courage Campaign 
               Ella Baker Center for Human Rights
               Food Bank of Contra Costa and Solano
               Hunger Action Los Angeles









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               St. Anthony's Foundation

               

          Oppose:   
                    None received. 
                                      -- END --