BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1914
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1914 (Davis)
          As Amended  August 18, 2010 
          Majority vote
           
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          |ASSEMBLY:  |45-28|(May 6, 2010)   |SENATE: |23-13|(August 23,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    HUM. S.

            SUMMARY  :  Clarifies existing regulations for persons that are  
          applying to the Food Stamp Program (FSP) and awaiting  
          Unemployment Insurance benefits (UI benefits).  Specifically,  
           this bill:
           
          1)Requires a county welfare office to:

             a)   Check its Income Eligibility and Verification System  
               (IEVS) when considering an applicant or recipient's UI  
               benefits in its eligibility determination, and;

             b)   Provide a copy of the UI benefits report to that  
               applicant or recipient if the county takes any action based  
               on the information in the that report.

          2)Requires the Department of Social Services (DSS) to  
            "initially" implement the provisions of this bill by January  
            1, 2011 through All County Letters, and develop regulations  
            and set a public hearing by January 1, 2012.

           The Senate amendments  :  

           1)Delete the requirement for a county welfare office to obtain a  
            UI benefits report from the Employment Development Department  
            if they are to consider those benefits in the eligibility  
            calculation, and instead, use IEVS to determine whether or not  
            the applicant or recipient is receiving UI benefits.

          2)Add implementation and the adoption of regulations deadlines.
           
          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.  
           








                                                                  AB 1914
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           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, unknown potentially significant costs to county  
          welfare departments.

           COMMENTS :  According to the author, reports from his  
          constituents indicate that county welfare offices are not  
          applying FSP program rules correctly resulting in a denial of  
          these benefits and hunger within these households.  The author  
          states that these constituents applied for food stamps while  
          waiting for UI benefits but were denied the food stamps because  
          county welfare offices incorrectly considered the anticipated UI  
          benefits income in the calculation of the eligibility  
          determination even though the applicant had not yet received the  
          income.  

           Background on income eligibility  :  For most households,  
          California "prospectively budgets" food stamps on a quarterly  
          basis.  This means that the county decides whether a household  
          is eligible and the amount of food stamps based on the income  
          the household "reasonably anticipates" it will get in the  
          upcoming quarter.


          There are strict and specific regulatory standards for when  
          income can be "reasonably anticipated."  Basically, the county  
          can only count income the household and county are almost  
          certain the household will receive.  That is, the income must  
          have been or will be approved or authorized within the upcoming  
          quarter; and the household is otherwise reasonably certain that  
          the income will be received within the quarter; and the amount  
          of the income is known. 


          For new sources of income, such as UI benefits, this means that  
          the household must know the amount and start date of the income.  
           If the household is not sure when it will receive new income or  
          how much it will get, the food stamp office cannot count it.   
          For example, a family applies for UI benefits but has not  
          received a letter indicating when the benefits will start and  
          how much the benefit will be.  Therefore, this scenario does not  
          meet the definition of anticipated income.  This bill requires  
          county welfare offices to check IEVS for confirmation that the  
          applicant or recipient is indeed receiving UI Benefits.  IEVS is  
          a system that can generate, among other information, income  
          records.  








                                                                  AB 1914
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          Analysis Prepared by  :    Frances Chacon / HUM. S. / (916)  
          319-2089 



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