BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1796
                                                                  Page  1

          Date of Hearing:   April 14, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                  AB 1796 (Leno) - As Introduced:  January 7, 2004 

          Policy Committee:                              Human Services  
          Vote:        5-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill eliminates California's lifetime disqualification from  
          federal food stamps benefits for individuals who have been  
          convicted of drug-related felonies. 

           FISCAL EFFECT  

          1)Up to several million dollars in food stamps benefits to the  
            extent that additional individuals receive food stamps.  For  
            every 900 beneficiaries, about $1 million in food stamps are  
            received annually. These benefits are 100 percent federal  
            funds.

          2)Minor absorbable workload to local welfare departments to  
            process additional food stamps applications or adjust existing  
            family food stamps benefits.  

          3)Unknown GF and local tax revenues to the extent that new food  
            stamp recipients spend funds on taxable goods.   

          4)Unknown savings, to the extent federal food assistance reduces  
            the need for other kinds of public benefits. 

           COMMENTS  

           1)Rationale  . The premise of the original federal law that  
            underlies this bill was that individuals should be prevented  
            from using public benefits to support substance abuse.  
            However, in recent years, the food stamps program has been  
            moved to an electronic benefit transfer  (EBT) system that  
            greatly reduces the likelihood that recipients will be able to  








                                                                  AB 1796
                                                                  Page  2

            convert food assistance into drugs.  

          2)Existing Law  . The state-option lifetime ban on food stamps for  
            people with felony drug convictions was included in the 1996  
            federal welfare reform bill. Twelve states have opted out of  
            the lifetime ban entirely, including Michigan, New York, Ohio  
            and Oregon. Eight states have conditions that relate to drug  
            treatment, including Hawaii, New Jersey, and Washington. 

           3)Small Estimated Increase in Caseload  . Currently 1.8 million  
            low-income families receive food stamps. According to the  
            Department of Social Services (DSS), this bill will increase  
            the number of food stamps recipients by about 2,000  
            individuals-significantly less than a one percent increase in  
            caseload-and most of these eligibles will be administratively  
            added to families already receiving food assistance.

           4)Related Legislation  .  At least three prior bills have been  
            passed by the Legislature on this topic; and Governor Davis  
            vetoed all three.

             a)   AB 1947 (Washington) in 2002 created an exception to the  
               food stamps ban for individuals enrolled in Proposition 36  
               treatment programs. 

             b)   AB 767 (Goldberg) in 2001 created exceptions to the  
               disqualification from CalWORKs and food stamps.

             c)   SB 659 (C. Wright) in 1999 created a set of exceptions  
               to the bar on food stamps and CalWORKs for those who  
               completed, enrolled in or applied for drug treatment. 

              
              

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081