BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1796
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          Date of Hearing:   March 23, 2004

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Lois Wolk, Chair
                   AB 1796 (Leno) - As Introduced:  January 7, 2004
           
          SUBJECT  :  Food stamps; eligibility.

           SUMMARY  :  Permits convicted drug felons to qualify for food  
          stamp benefits.  Specifically,  this bill  provides that  
          California shall opt out of the lifetime federal  
          disqualification from food stamps for persons convicted of a  
          felony involving controlled substances.

           EXISTING LAW:  

          1)Under federal law, prohibits recipients of food stamps or  
            benefits funded by Temporary Assistance for Needy Families  
            (TANF) funds from qualifying for benefits if they have been  
            convicted of a felony crime involving controlled substances,  
            but allows states to opt out of the disqualification in whole  
            or part;

          2)Provides that persons convicted of specified felonies related  
            to controlled substances are ineligible for aid under the  
            CalWORKs and food stamp programs if the conviction occurred  
            after the provisions' effective dates.

           FISCAL EFFECT  :  The Department of Social Services (DSS)  
          estimates total food stamp administrative costs of  $74,000, of  
          which $25,900 are general fund in 2004-05, assuming a January  
          2005 implementation date, and $70,000 ($24,500 General Fund) in  
          ongoing annual food stamp administrative costs.  The annual  
          impact for the California Food Assistance Program for immigrants  
          is under $25,000.  There could be savings to the extent that the  
          availability of food assistance aids in the recovery of persons  
          who thereafter become self-sufficient, reducing the need for  
          assistance by others in the household.

           COMMENTS  :  The lifetime ban on food stamps and TANF-funded  
          benefits for persons with felony drug convictions was included  
          in the 1996 federal welfare reform bill, as Section 115 of the  
          Personal Responsibility and Work Opportunity Reconciliation Act.  
           There is little legislative history explaining the provision,  








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          since it was first raised in a floor amendment and not the  
          subject of committee hearings.

          The federal provision gives states the ability to opt out of the  
          disqualification.  California declined to include any opt-out  
          provision for food stamps when it implemented welfare reform in  
          1997.  According to the Food and Nutrition Service of the U.S.  
          Department of Agriculture, 32 states and territories have chosen  
          to avoid the rule in whole or in part.  Twelve states have opted  
          out entirely, including Maine, Michigan, New York, Ohio,  
          Oklahoma and Oregon.  Eight states have qualifying conditions  
          which relate to participation in or completion of drug treatment  
          programs, whether as part of the criminal sentence or otherwise:  
          Hawaii, Maryland, Utah, Nevada, New Jersey, Washington, Kentucky  
          and South Carolina.

          According to DSS estimates, 1640 persons are denied food stamps  
          annually because of the drug felon prohibition.

          The drug felon rule has been the subject of much criticism by  
          drug treatment providers, advocates for the poor and law  
          enforcement organizations because it permanently disqualifies  
          otherwise needy persons from receiving food assistance and may  
          interfere with their current or continued recovery.  A person  
          may be disqualified even if they are in a treatment program and  
          need a healthy diet to succeed, or if the conviction occurred  
          long before the time they needed assistance, or if they have no  
          current substance problem.

          A report released in 2002 by the Sentencing Project concluded,  
          "The lifetime welfare ban . . . makes the possibility of  
          returning to their communities as productive members more  
          difficult than before their conviction, and in some cases  
          improbable."  It also noted a disparate impact of the rule on  
          women of color, since 46% of women convicted of felony drug  
          offenses are African-American or Latina.

          A 2001 paper published by the University of Maryland School of  
          Medicine found that "[p]roper nutrition is a crucial element of  
          the recovery process as it helps the body to reverse the effects  
          of the substance while boosting the body's ability to complete  
          detoxification."  

          The premise of the original rule was that substance abusers  
          should be prevented from misusing public benefits to fuel their  








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          addiction.  However, the lifetime ban denies aid to many who  
          pose no such risk, and, especially after the food stamp program  
          has moved to an Electronic Benefit Transfer (EBT) system, there  
          is very little ability for recipients to convert food assistance  
          into drugs.  Moreover, it is noteworthy that passage of  
          Proposition 36 in 2000 demonstrated the voters' intention to  
          take a remedial, non-punitive approach to substance abuse.

          Opponents of the rule have also argued that it imposes a special  
          penalty only upon persons poor enough to need public assistance;  
          those convicted of such crimes who do not need food stamps or  
          cash aid face no added financial penalty beyond the criminal  
          consequences.  

           PRIOR RELATED LEGISLATION:  

           SB 659 (C. Wright), 1999-2000.   This bill created a set of  
          exceptions to the bar on food stamps and CalWORKs for those who  
          completed, enrolled in, or applied for certified drug treatment  
          services, or for whom five years had elapsed since successfully  
          fulfilling conditions, or who were not using a controlled  
          substance.  It also required passage of a drug screening test in  
          some cases as a condition of eligibility, and subjected  
          recipients to tests after qualifying.  It also created  
          interagency county level teams to provide case management  
          services to all families eligible for aid.  Passed the Assembly  
          60-8 and the Senate 30-4; vetoed by Governor Davis.

           AB 767 (Goldberg), 2001-2002.   This adopted the basic framework  
          of SB 659, creating exceptions to the disqualification from  
          CalWORKs and food stamps, but was narrower.  It applied only to  
          convictions for possession and use, not for sale or transport,  
          and did not contain the interagency teams.  It passed the  
          legislature and was vetoed by Governor Davis.

           AB 1947 (Washington), 2001-2002.   This created an exception to  
          the ban for persons enrolled in Proposition 36 treatment  
          programs.  (Those completing such programs are eligible to apply  
          to have their convictions dismissed, which re-establishes  
          eligibility.)  As introduced it applied to both CalWORKs and  
          food stamps, but in final form was amended to cover only food  
          stamps.  This bill was also vetoed by Governor Davis.

          AB 1796 differs from prior efforts because as introduced it only  
          applies to food stamps.  Previous bills emphasized treatment and  








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          rehabilitation as a condition for eligibility for cash aid and  
          food assistance.  Proponents of AB 1796 argue that many of the  
          qualifying conditions in SB 659 and AB 767 are unnecessary  
          because the potential to misuse benefits in the way originally  
          envisioned is virtually impossible in an EBT system involving  
          food and not cash.  Moreover, the costs of administering complex  
          determinations and drug testing have raised concerns as counties  
          have suffered budgetary reductions and denial of cost of doing  
          business increases over the past several years.

           Arguments of supporters
           
          As noted, supporters of AB 1796 contend that the current  
          lifetime ban is unfairly punitive and counter-productive, and  
          that access to food assistance aids in recovery from substance  
          addiction.  The California Association of Addiction Recovery  
          Resources asserts that, "denying individuals food assistance  
          threatens their ability to become self sufficient, provide and  
          care for their children and overcome their drug addiction."   
          Among its reasons for supporting the bill, Family Rights and  
          Dignity argues that "the ban unfairly punishes parents and  
          individuals who have served their time, are looking to start  
          over and need food assistance."  

          The California Police Chiefs Association asserts in support,  
          "preventing an otherwise eligible person from receiving food  
          stamps because of a prior drug conviction makes little sense ?  
          [and] merely increases the chances that they will fall back into  
          re-offending behavior."  According to the California Narcotics  
          Officers' Association (CNOA), "the federal prohibition on  
          eligible persons receiving food stamps due to a prior drug  
          conviction is not only silly, but increases the possibility that  
          the individual will return to the same illegal drug behavior  
          that got them in trouble in the first place."

          Free Battered Women observes that the current prohibition has a  
          negative impact on victims of domestic violence.  "Survivors of  
          domestic violence are often charged with drug-related crimes  
          when their batterers coerce them into participating in the drug  
          trade ? Survivors' options for keeping themselves and their  
          children safe from violence are limited when their access to  
          material resources such as food stamps . . . is restricted."

           REGISTERED SUPPORT / OPPOSITION  :   









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           Support 
           
          Alameda County Community Food Bank
          American Civil Liberties Union
          American Federation of State, County and Municipal Employees
          Asian Pacific American Legal Center
          Beacon House Association of San Pedro
          California Association of Addiction Recovery Resources
          California Catholic Conference
          California Food Policy Advocates
          California Narcotics Officers' Association
          California Police Chiefs Association
          California State Conference of the NAACP
          Coalition California Welfare Rights Organizations, Inc.
          Drug Policy Alliance Network
          Family Rights and Dignity project of the San Francisco Coalition  
          on Homelessness
          Fourwinds Lodge
          Free Battered Women, a Project of the California Coalition for  
          Women Prisoners
          JERICHO: A Voice for Justice
          Lambda Letters
          Los Angeles Coalition to End Hunger and Homelessness
          Senior Gleaners, Inc.
          Southern California Alcohol and Drug Programs, Inc.


           Support Cont.

           Western Center on Law and Poverty
          Women of Color Resource Center

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Casey McKeever / HUM. S. / (916)  
          319-2089