BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1198
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          ASSEMBLY THIRD READING
          AB 1198 (Swanson)
          As Introduced  February 27, 2009
          Majority vote 

           HUMAN SERVICES      5-2         APPROPRIATIONS      11-4        
           
           ------------------------------------------------------------------ 
          |Ayes:|Beall, Ammiano, Hall,     |Ayes:|De Leon, Ammiano, Charles  |
          |     |Portantino, Torres        |     |Calderon, Davis, Fuentes,  |
          |     |                          |     |Hall, John A. Perez,       |
          |     |                          |     |Price, Skinner, Solorio,   |
          |     |                          |     |Torlakson                  |
          |     |                          |     |                           |
          |-----+--------------------------+-----+---------------------------|
          |Nays:|Tom Berryhill, Logue      |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Audra Strickland           |
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           SUMMARY  :  Expands eligibility for Food Stamp Program (FSP)  
          benefits to convicted drug felons who distributed illegal  
          controlled substances, if they provide proof of one of the  
          following subsequent to their most recent drug-related  
          conviction:

          1)Completion of, participation or enrollment in, or placement on  
            a waiting list for a government-recognized drug treatment  
            program.

          2)Other evidence that the illegal use of controlled substances  
            has ceased, as established by State Department of Social  
            Services regulations.  

           EXISTING LAW  :

          1)Prohibits, under federal law, applicants for food stamps or  
            benefits funded by Temporary Assistance for Needy Families  
            (TANF) funds from qualifying 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.

          2)Opts into the federal prohibition on federal food stamp  
            eligibility for persons convicted of drug trafficking, as  
            defined, or who have been convicted of soliciting, inducing,  








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            encouraging or intimidating a minor to participate in any such  
            crimes.

          3)Opts out of the federal prohibition on food stamp eligibility  
            for "drug users" convicted of a drug felony, as defined, who  
            can prove completion, participation in, enrollment in, or  
            placement on a waiting list for a government-recognized drug  
            treatment program, or provide other evidence that illegal use  
            of controlled substances has ceased.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis:

          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. 

          2)Minor absorbable workload to local welfare departments to  
            process additional food stamps 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 FSP is California's most significant means of  
          reducing hunger and improving nutrition among the state's poor.   
          It serves a total of nearly two million people.  The benefits,  
          paid monthly through an electronic benefit transfer system or  
          "EBT" card, are entirely funded by the federal government.  The  
          federal, state and county governments share the cost of  
          administration.  The program is administered locally by county  
          welfare departments.
           
           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 (Section 115 of the  
          Personal Responsibility and Work Opportunity Reconciliation  
          Act).  However, this new law also gave states the ability to opt  
          out of the ban for either of these programs or based on  
          particular drug felonies.  California declined to include any  








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          opt-out provision when it implemented welfare reform in 1997,  
          but several years later, with AB 1796 (Leno), Chapter 932,  
          Statutes of 2004, opted out of the ban for drug users applying  
          to the FSP.  These individuals were deemed eligible for these  
          benefits based on the condition that they offer the following  
          proof: completion of, participation or enrollment in, placement  
          on a waiting list to a government-recognized drug treatment  
          program, or other proof of having ceased using illegal drugs.   
          The author of this bill seeks to expand the conditions above to  
          drug distributors.  This is an identical bill to the one that  
          the author introduced last year and that was ultimately vetoed.   
          The Governor's veto message clarified that he supports drug  
          treatment programs for drug users, but pointed out that the  
          bill's expansion of food stamp eligibility to drug distributors  
          based on the incentive of drug treatment was not an appropriate  
          solution because treatment does not stop the distribution.   
          While this bill is identical to last year's, the author's office  
          has indicated that it will be working with the Governor's office  
          to find the appropriate solution for this population of  
          convicted drug felons.

           Other states actions  :  According to a 2005 report by the General  
          Accounting Office (GAO), 15 states fully implemented the federal  
          ban on food stamp benefits to convicted drug felons, and 35  
          states had laws modifying the federal ban on food stamps.  Of  
          the 35 states with exemptions, 14 states exempted all convicted  
          drug felons from the food stamp ban, and 21 have laws that  
          exempt some convicted drug felons from the food stamp ban  
          provided they meet certain conditions.
           
           Who is affected by this bill  ?  The GAO report also notes that  
          proportionally more female drug felons than males are affected  
          by the ban.  The GAO calculates that about 27% of female and 15%  
          of all drug offenders released from prison in 2001 in states  
          that had not modified the ban would have met the eligibility  
          requirements and therefore, be affected by the ban.

           Nutrition and drug felons  :  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 banned even if they are in  
          a treatment program and need a healthy diet to succeed, or if  








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          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 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.
           
          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.
           
          Related legislation  :  AB 1996 (Swanson), of 2008, would have  
          expanded eligibility for FSP benefits to convicted drug felons  
          who distributed the illegal controlled substances, as specified;  
          bill was vetoed by Governor Schwarzenegger.

          AB 508 (Swanson), of 2007, would have repealed the lifetime  
          disqualification from food stamps for persons convicted of  
          specified felonies involving controlled substances; bill was  
          vetoed by the Governor. 

           
          Analysis Prepared by  :    Frances Chacon / HUM. S. / (916)  
          319-2089 



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