BILL ANALYSIS Ó SENATE COMMITTEE ON HUMAN SERVICES Senator Mike McGuire, Chair 2015 - 2016 Regular Bill No: SB 904 Hearing Date: March 29, 2016 ----------------------------------------------------------------- |Author: |Hertzberg | |-----------+-----------------------------------------------------| |Version: |January 21, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Taryn Smith | | | | ----------------------------------------------------------------- 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 SB 904 (Hertzberg) PageB of? 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 SB 904 (Hertzberg) PageC of? 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 SB 904 (Hertzberg) PageD of? 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 SB 904 (Hertzberg) PageE of? 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 SB 904 (Hertzberg) PageF of? 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 SB 904 (Hertzberg) PageG of? 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 SB 904 (Hertzberg) PageH of? St. Anthony's Foundation Oppose: None received. -- END --