BILL ANALYSIS                                                                                                                                                                                                    






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       AB 1914                                      
          A
          AUTHOR:        Davis                                        
          B
          VERSION:       May 26, 2010
          HEARING DATE:  June 22, 2010                                
          1
          FISCAL:        Appropriations                               
          9
                                                                      
          1
          CONSULTANT:                                                 
          4
          Hailey
                                        
                                     SUBJECT
                                         
                  Public social services: food stamp benefits

                                     SUMMARY  

          Clarifies the process for determining food stamp  
          eligibility and benefits if the applicant is awaiting  
          unemployment insurance benefits.

                                     ABSTRACT  
           
          Current law
           1)  Establishes the federal supplemental nutrition  
          assistance program (SNAP), under which food stamp benefits  
          are allocated to the state for distribution by counties to  
          eligible households.

          2)  Provides for the payment of unemployment compensation  
          benefits to eligible individuals who are unemployed through  
          no fault of their own.

          3)  Provides the State Department of Social Services and  
          county welfare departments access to information maintained  
          in the files of the Employment Development Department in  
          order to determine if applicants or participants in the  
                                                         Continued---



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          CalWORKs welfare-to-work program are eligible for  
          unemployment insurance or disability insurance benefits.

           This bill  
          1)  States that unemployment insurance benefits, for  
          applicants applying to or receiving benefits from the food  
          stamp program, can be counted as income for purposes of  
          determining eligibility and calculating benefits only if  
          the county welfare department obtains a report from the  
          Employment Development Department specifying a start date  
          and amount of the unemployment insurance benefits.

          2)  Requires that a copy of the report be provided to the  
          food stamp program applicant or recipient if the county  
          welfare department takes any action based on the report.

                                  FISCAL IMPACT 

          According to the Assembly Appropriations Committee, there  
          are no new costs associated with this legislation.  The  
          committee also notes that to the extent applicants have  
          been denied food stamps based on anticipated unemployment  
          insurance benefits, this bill could result in an increase  
          in the amount of federal food stamp benefits flowing to the  
          state.


                            BACKGROUND AND DISCUSSION  

          According to the author, reports from his constituents  
          indicate that county welfare departments are not applying  
          food stamp program rules correctly, resulting in a denial  
          of these benefits to families that are anticipating receipt  
          of unemployment insurance benefits.  The author believes  
          that these constituents were denied food stamp benefits  
          while waiting for unemployment insurance benefits because  
          county welfare departments incorrectly considered the  
          anticipated unemployment benefits as income in-hand in  
          hand.

           Income eligibility  
          For most households, California prospectively budgets food  
          stamps on a quarterly basis.  The county determines a  
          household's eligible for benefits and the amount of food  
          stamps the household will receive based on the income the  




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          household reasonably anticipates during that upcoming  
          quarter.  Regulations include standards for determining  
          what income can be reasonably anticipated: income the  
          household and county are almost certain the household will  
          receive.

          For new sources of income, such as unemployment insurance  
          benefits, the household would have to know the amount and  
          starting date.  If the household is unsure, regulations  
          direct the food stamp office not to count those new income  
          sources.

          This bill would codify these regulatory provisions.

           Arguments in support  
          Supporters state that current state food stamp regulations  
          stipulate that a new source of income cannot be anticipated  
          until there is certainty as to when it will begin and how  
          much it will be.  This bill clarifies how this policy  
          should be interpreted for the purposes of counting  
          unemployment insurance benefits in the determination of  
          food stamp eligibility.  Supporters add that ensuring that  
          applicants have secured unemployment insurance benefits  
          prior to counting this income during food stamp eligibility  
          determination will prevent newly unemployed households from  
          being further disadvantaged by needlessly experiencing  
          hunger.

           Assembly votes
           Human Services Committee   4-1
          Appropriations Committee 10-5
          Floor                    45-28



                                    POSITIONS  

          Support:       California Catholic Conference
                         California Communities United Institute
                         California Labor Federation
                         Coalition of California Welfare Rights  
          Organizations
                         National Association of Social Workers,  
          California Chapter
                         Western Center on Law and Poverty




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          Oppose:   None received






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