BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1198
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                AB 1198 (Swanson) - As Introduced:  February 27, 2009 

          Policy Committee:                              Human  
          ServicesVote: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. Specifically, this bill: 

          1)Allows individuals who have been convicted of drug-related  
            felonies to receive federal food stamps benefits.

          2)Requires people with convictions to provide proof of one of  
            the following criteria in order to receive food stamps:

             a)   Completion of a drug treatment program.

             b)   Participation in a drug treatment program.

             c)   Enrollment in a drug treatment program.

             d)   Placement on a waiting list for a drug treatment  
               program.

             e)   Other evidence that the illegal use of controlled  
               substances has ceased.

           FISCAL EFFECT  


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









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          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)Purpose  . 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  
            virtually eliminates the opportunity for recipients to convert  
            food assistance into drugs. 


           2)Small Estimated Increase in Caseload  . Currently close to 2  
            million low-income families receive food stamps. According to  
            previous Department of Social Services' (DSS) assumptions  
            about the affected caseload, this bill will increase the  
            number of food stamps recipients by about 840, significantly  
            less than a one percent increase in caseload, and most of  
            these newly eligible participants will be part of families  
            already receiving food assistance. 

           
          3)Does the Lifetime Ban Make Sense  ? According to a report by the  
            federal Governmental Accountability Office, banning convicted  
            drug felons who have completed their sentences and paid their  
            debt to society from critical public assistance, including  
            food stamps, runs contrary to state and federal initiatives  
            intended to reduce recidivism by easing prisoner reentry and  
            fostering prisoner reintegration into society. 









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            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  
            needy persons from receiving assistance and interferes with  
            their recovery. Individuals may be disqualified even if they  
            are in a treatment program and need a healthy diet to succeed,  
            if the conviction occurred long before the time they needed  
            assistance, or if they have no current substance problem. 


            A report 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."  The  
            Sentencing Project 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. 

           
          4)Related Legislation.   In 2008, AB 1996 (Swanson) a  
            substantially similar bill was vetoed by the governor. In his  
            veto message he stated, "Extending food stamp eligibility to  
            drug dealers or traffickers, upon the condition that they  
            engage in drug treatment, will not ensure these individuals  
            will stop selling or trafficking illegal drugs. Therefore,  
            this bill does not provide a targeted approach to the right  
            population and does not ensure adequate public safety  
            protections." 

            In 2007, AB 508 (Swanson) would have repealed the lifetime  
            disqualification from food stamps for persons convicted of  
            specified felonies involving controlled substances. The bill  
            was vetoed. In his veto message, the governor noted that "the  
            current requirement for drug-related felons to participate in  
            a drug treatment program, or provide evidence that drug usage  
            has ceased, remains a viable intervention prior to eligibility  
            in the Food Stamp Program." AB 1996 has addressed these  
            concerns by mirroring the eligibility requirements of AB 1796  
            (see below) which was signed by the governor in 2004.

            AB 1796 (Leno;  Chapter 932, Statutes of 2004) enacted a  
            partial opt-out for food stamps, covering only persons  
            convicted of use or possession crimes and requiring proof of  
            treatment or cessation of use. The passage of that bill  








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            provided eligibility for an estimated 57.5% for the otherwise  
            eligible drug felon caseload.  AB 1996 would extend  
            eligibility to the remaining 42.5 percent.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081