BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE HEALTH AND HUMAN SERVICES
                               COMMITTEE ANALYSIS
                        Senator Deborah V. Ortiz, Chair


          BILL NO:       AB 1796                                      
          A
          AUTHOR:        Leno                                         
          B
          AMENDED:       May 17, 2004
          HEARING DATE:  June 16, 2004                                
          1
          FISCAL:        Appropriations                               
          7
                                                                      
          9
          CONSULTANT:                                                 
          6
          Vazquez / ak
                                        

                                     SUBJECT
                                         
                           Food stamps:  eligibility

                                     SUMMARY  

          This measure permits persons with felony convictions  
          involving possession or use of drugs to qualify for food  
          stamp benefits.

                                     ABSTRACT  

          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 state 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 (CalWORKs) and food stamp programs if the conviction  
          occurred after the provisions' effective dates.
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          This bill:
          1.Provides that California shall opt out of the lifetime  
            federal disqualification from food stamps for persons  
            convicted of a felony involving controlled substances.

          2.Excludes from food stamp eligibility persons convicted of  
            unlawfully transporting, importing, selling, furnishing,  
            administering, giving away, possessing or purchasing for  
            sale, or manufacturing a controlled substance.



                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee analysis  
          (prior to the amendment excluding persons with sale,  
          transport or manufacturing convictions), the bill's fiscal  
          impact includes:

          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.

          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.

                            BACKGROUND AND DISCUSSION 

          Background 
          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  
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          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.  According to the author's office, data from  
          the California Department of Corrections show that about  
          half of felony drug convictions involve crimes eligible for  
          benefits under the bill, i.e., the convictions are for  
          possession or personal use.

          Discussion 
          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  
          persons who have served their sentence without a showing  
          that they are drug dependent and would use the benefits to  
          further their habit.  Additionally, the food stamp program  
          has converted to an Electronic Benefit Transfer (EBT)  
          system in which benefits are received through a debit card  
          subject to electronic tracking, and there is very little  
          ability for recipients to convert food assistance into  
          drugs.

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          Supporters also contend that passage of Proposition 36 in  
          2000 demonstrated the voters' intention to take a remedial,  
          non-punitive approach to substance abuse.  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."

          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.

          Arguments in support
          Supporters of this bill have 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."

          Prior legislation 
            SB 659 (C. Wright), 1999.   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 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.  This measure was vetoed  
            by Governor Davis.

            AB 767 (Goldberg), 2001.   This measure adopted the basic  
            framework of SB 659, creating exceptions to the  
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            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.  This measure was vetoed by  
            Governor Davis.



            AB 1947 (Washington), 2002.   This bill 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 measure was vetoed by Governor Davis.

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

                                  PRIOR ACTIONS

           Assembly Floor:          42 - 30Pass
          Assembly Appropriations: 14 - 5 Do Pass
          Assembly Human Services:   5 - 2Do Pass 

                                    POSITIONS  

          Support:  Alameda County Board of Supervisor's Health  
          Committee
                    Alameda County Community Food Bank
                    All of Us or None 
                    American Civil Liberties Union
                    Asian Pacific American Legal Center
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                    Beacon House Association of San Pedro
                    Blacksmith Records, Inc.
                    California Association of Addiction Recovery  
                    Resources
                    California Association for Alcohol and Drug  
                    Educators
                    California Association for Alcohol and Drug  
                    Executives, Inc.
                    California Association of Food Banks
                    California Catholic Conference of Bishops
                    California Commission on the Status of Women
                    California Food Policy Advocates
                    California Hunger Action Coalition
                    California Narcotics Officers' Association
                    California Police Chiefs' Association
                    California State Conference of the NAACP





























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                    California State Sheriffs' Association
                    Central Coast Hunger Coalition
                    City and County of San Francisco



                    Coalition California Welfare Rights  
                    Organizations, Inc.
                    County Alcohol and Drug Program Administrators  
                    Association
                       of California
                    Drug Policy Alliance Network
                    Ecology Center
                    Ecumenical Council of Pasadena Area Churches
                    Family Rights and Dignity
                    Food Bank for Monterey County
                    Fourwinds Lodge
                    Friends of Choice
                    Free Battered Women
                    Helping Other People Eat
                    Jardini?re
                    JERICHO
                    Lambda Letters Project
                    Legal Services for Prisoners with Children
                    Los Angeles Coalition to End Hunger and  
                    Homelessness
                    Los Angeles County Sheriff's Department
                    Maternal and Child Health Access
                    National Council on Alcoholism and Drug  
                    Dependence of the South Bay
                    Nextcourse
                    Office of the Attorney General
                    Senior Gleaners, Inc.
                    Southern California Alcohol and Drug Programs,  
                    Inc.
                    Western Center on Law and Poverty
                    Women of Color Resource Center
                    Approximately 150 individuals

          Oppose:None received






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