BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1198 (Swanson)
          
          Hearing Date:  07/13/2009           Amended: As introduced
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Human  
          Services 3-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1198 eliminates California's lifetime  
          disqualification from federal food stamps benefits for  
          individuals who have been convicted of drug-related felonies.  
          This bill allows individuals who have been convicted of  
          drug-related felonies to receive federal food stamps benefits if  
          they provide proof of one of the following criteria as a  
          condition of eligibility:

             1)   Completion of a government-recognized drug treatment  
               program.
             2)   Participation in a government-recognized drug treatment  
               program.
             3)   Enrollment in a government-recognized drug treatment  
               program.
             4)   Placement on a waiting list for a government-recognized  
               drug treatment program.
             5)   Other evidence that the illegal use of controlled  
               substances has ceased. Requires the Department of Social  
               Services (DSS) to establish those regulations.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions           2009-10    2010-11       2011-12     Fund
           Expands food stamp eligibility     Unknown, potentially  
          significant costs      General    
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.

          Federal law prohibits individuals who have been convicted of  
          drug felonies from receiving federal food stamps, but allows  
          state to opt out of some or all of the provisions of the  
          automatic aid disqualification. Existing California state law  










          opts out of the federal prohibition against food stamp  
          eligibility, in part, for persons convicted of a drug felony  
          that is not related to distribution or sales (primarily  
          possession and use) 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. 

          Existing state law retains the federal prohibition against  
          eligibility for food stamps for persons convicted of a felony  
          involving transporting, importing, selling, furnishing,  
          administering, giving away, possessing for sale, manufacturing a  
          controlled substance, possessing precursors with intent to sell,  
          cultivating or processing marijuana, or convicted of a felony  
          involving soliciting, inducing, encouraging, or intimidating a  
          minor to participate in any such crimes. This bill would provide  
          the same eligibility standard for these crimes, as for  
          possession and use crimes, as specified. 

          The extent to which food stamp eligibility and participation  
          would be increased is unknown, because eligibility is based on  
          several criteria. The universe of individuals this bill would  
          apply to is limited. It expands eligibility to people who meet  
          the income, 
          Page 2
          AB 1198 (Swanson)

          citizenship, and documentation requirements, and are only  
          excluded because of a disqualifying drug conviction. The number  
          is further limited to those who provide proof of meeting one of  
          the specified drug treatment requirements. 

          DSS estimates that this bill would cause only a very minor  
          increase to the food stamp caseload, based on the number of  
          adults who apply for food stamps and are disqualified by one of  
          the specified drug convictions. It is unclear, however, the  
          number of individuals who have a disqualifying drug conviction  
          and simply do not apply for food stamps because they know they  
          are disqualified. There are likely thousands of people living in  
          the state with a disqualifying drug conviction on their records  
          who have not ever applied for food stamps since the conviction.  
          There is insufficient data to determine how many people who have  
          ever been convicted of a disqualifying offense have sufficiently  
          low incomes as to qualify for food stamps.

          The degree to which disqualified drug felons currently collect  










          food stamps is also unknown. Felony drug convictions are  
          self-disclosed by food stamps applicants, under penalty of  
          perjury, on their applications. Typically, these declarations  
          (or their absence) are not verified by eligibility or social  
          workers, and are not verified by DSS. It is also unclear how  
          many newly eligible individuals would apply for food stamps. The  
          Public Policy Institute of California estimates that only 50% of  
          Californians eligible for food stamps receive them.

          The food stamp benefit is federally funded, and state costs are  
          for administration of the program. The cost of a food stamp  
          caseload increase depends on the number of cases, and the  
          counties in which the individuals are served. Costs are also  
          impacted by whether or not the cases are new, or are simply  
          adding an excluded individual to a family case already receiving  
          food stamps. The state pays 35% of the cost to administer the  
          food stamps program. Approximately 830,000 families receive food  
          stamps, and an increase of 1% would cost the state approximately  
          $2 million. This cost would be offset to some degree by a likely  
          increase in sales tax. Studies show that low-income families  
          spend 40% of their money on food, and food stamps allow them to  
          spend that money on taxable items.

          A virtually identical bill, AB 1996 (Skinner 2008), was vetoed  
          with the following message:

           I am returning Assembly Bill 1996 without my signature. In  
          vetoing similar legislation last year, I made it clear that I  
          support the use of drug treatment programs as a viable  
          intervention tool for drug users. It is important to provide  
          individuals with the correct incentive to transition from a life  
          of crime and substance abuse to one of work and personal  
          responsibility. However, 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.