BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1796
                                                                  Page  1

          ASSEMBLY THIRD READING
          AB 1796 (Leno)
          As Introduced January 7, 2004
          Majority vote 

           HUMAN SERVICES      5-2         APPROPRIATIONS      14-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Wolk, Dutra, Lieber,      |Ayes:|Chu, Berg, Calderon,      |
          |     |Longville, Mullin         |     |Corbett, Firebaugh,       |
          |     |                          |     |Goldberg, Leno, Nation,   |
          |     |                          |     |Negrete McLeod, Oropeza,  |
          |     |                          |     |Pavley, Ridley-Thomas,    |
          |     |                          |     |Wiggins, Yee              |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Haynes, Garcia            |Nays:|Runner, Bates, Correa,    |
          |     |                          |     |Haynes, Keene             |
           ----------------------------------------------------------------- 
           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 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.

           EXISTING LAW  provides that persons convicted of specified  
          felonies related to controlled substances are ineligible for aid  
          under the California Work Opportunity and Responsibility to Kids  
          and food stamp programs if the conviction occurred after the  
          provisions' effective dates.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:

          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% federal funds. 








                                                                  AB 1796
                                                                  Page  2


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

          3)Unknown General Fund 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  :  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,  
          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 United  
          States 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. 

          The Department of Social Services estimates 1,640 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.

          The premise of the original rule was that substance abusers  
          should be prevented from misusing public benefits to fuel their  
          addiction.  However, the lifetime ban denies aid to many who  








                                                                  AB 1796
                                                                  Page  3

          pose no such risk, and, especially after the food stamp program  
          has moved to an Electronic Benefit Transfer 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.

          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."  

          Supporters of this bill 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.  

          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." 
           

          Analysis Prepared by  :    Casey McKeever / HUM. S. / (916)  
          319-2089 



                                                                FN: 0004862