BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1796
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1796 (Leno)
          As Amended August 23, 2004
          Majority vote
           
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          |ASSEMBLY:  |42-30|(May 24, 2004)  |SENATE: |21-12|(August 25,    |
          |           |     |                |        |     |2004)          |
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           Original Committee Reference:    HUM. S.

          SUMMARY  :  Permits persons with specified felony convictions  
          involving possession or use of drugs to qualify for food stamp  
          benefits if they have completed or are enrolled in a drug  
          treatment program, or can demonstrate that drug use has ceased. 
           
          The Senate amendments  : 

          1)Add to the crimes for which eligibility is not available as  
            follows:

             a)   Cultivating, harvesting, and processing of controlled  
               substances pursuant to Health and Safety Code 11358; and,

             b)   Unlawfully soliciting or inducing a minor to participate  
               in any of the excluded crimes.

          2)Add as a condition to receive benefits proof of one of the  
            following:

             a)   Completion of a recognized drug treatment program;

             b)   Participation in a government recognized drug treatment  
               program;

             c)   Enrollment in a government-recognized drug treatment  
               program ;

             d)   Placement on a waiting list for a government-recognized  
               drug treatment program; or,

             e)   Other evidence that the illegal use of controlled  
               substances has ceased, as established by the Department of  
               Social Services (DSS) in regulations.








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          3)Authorize DSS to implement this bill through an all-county  
            letter no later than January 1, 2005.

          4)Require DSS to adopt regulations to implement this bill, which  
            may be through emergency regulations, no later than July 1,  
            2005.

           EXISTING FEDERAL LAW  prohibits recipients of food stamps 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 food stamp programs if the conviction occurred after  
          the effective date of the federal welfare reform law.

           AS PASSED BY THE ASSEMBLY  , this bill:

          1)Provided that California shall opt out of the lifetime federal  
            disqualification from food stamps for persons convicted of a  
            felony involving controlled substances.

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

           FISCAL EFFECT  :  Unknown.  The Assembly Appropriations Committee  
          analysis prepared before this bill contained any exceptions or  
          qualifications found up to several million dollars in federal  
          food stamp benefits, but subsequent amendments lower that amount  
          significantly.  The fiscal impact also includes:

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

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

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









                                                                  AB 1796
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           COMMENTS  :  The lifetime ban on food stamps 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 of 1996. 

          The federal provision gives states the ability to opt out of the  
          disqualification.  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. 

          DDS 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 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 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.  

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

          Senate amendments narrow this bill significantly, requiring a  
          demonstration of completion or participation in drug treatment,  
          or other evidence that drug use has ceased.  They are the  








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          product of discussions between the author's office, the bill's  
          supporters and the California Health and Human Services Agency.  


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



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