BILL ANALYSIS
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: SB 1322
S
AUTHOR: Liu
B
VERSION: March 22, 2010
HEARING DATE: April 13, 2010
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FISCAL: Appropriations
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2
CONSULTANT:
2
Park
SUBJECT
Food Stamp Employment and Training program
SUMMARY
Makes changes to the administration of the Food Stamp
Employment and Training program, including rules governing
mandatory and voluntary placements into the program, as
well as exemptions. Requires counties, as specified, to
prioritize program dollars for specified activities and to
offer self-initiated workfare as a way for specified food
stamp participants to meet federal work requirements.
Requires the Department of Social Services to undertake
specified coordination, convening, and county assistance
activities related to administration of the Food Stamp
Employment and Training program.
ABSTRACT
Existing federal law:
1.Establishes the Supplemental Nutrition Assistance Program
(SNAP), formerly the food stamp program, administered by
the U.S. Department of Agriculture (USDA), which imposes
specified rules on specified program participants and
Continued---
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limits benefits based on those rules. Generally, one
group of participants, able-bodied adults (age 18 to 49)
without dependents, known as ABAWDs, are limited to three
months of food stamp benefits within a 36-month period
unless they comply with work requirements.
2.Establishes the Food Stamp Employment and Training (FSET)
program, administered by the USDA, which requires state
agencies to implement an employment and training program
to assist food stamp recipients who are able-bodied to
gain skills, training, work or experience to help them
obtain employment.
Existing state law:
1.Establishes a statewide program, administered by state
and local agencies, that enables recipients of aid and
other low-income households to receive federal food
assistance benefits.
2.Requires the Department of Social Services (DSS), to the
extent permitted by federal law, to annually seek a
federal waiver of the existing food stamp program
limitation that stipulates that an ABAWD participant is
limited to three months of food stamps in a three-year
period unless that participant has met the work
participation requirement.
3.Requires all eligible counties to be included in and
bound by this waiver unless a county declines to
participate in the waiver request, as specified.
This bill:
1.Requires counties to screen work registrants to determine
whether they will participate in, or be deferred from,
the FSET program. Requires an individual to be deferred
from mandatory placement in the FSET program if he or she
satisfies any of the federally mandated criteria, or if
he or she resides in a federally determined work surplus
area. Allows a work registrant, who is deferred, to
request to enroll in the FSET program as a voluntary
participant.
2.Prohibits, to the extent permitted by federal law, an
individual from receiving a food stamp sanction when he
or she is sanctioned for failing to comply with the work
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requirements of other programs, as specified.
3.Requires a county that implements the federal time limits
for ABAWDs to receive food stamps to offer self-initiated
workfare, as defined in federal regulations, as a means
to satisfy the federally mandated work requirement for
ABAWDs, in addition to any other methods the county
provides.
4.Requires a county that participates in the FSET program
to demonstrate that it is prioritizing the use of FSET
program funds for self-initiated workfare, work
experience or training, education, and the support
services or client reimbursements needed to participate
in these components, as allowed by federal law and
guidance.
5.Requires DSS to assign staff to assist counties in the
development of vocational, educational, and job training
programs allowed under federal guidance for SNAP, and to
assist in the identification of private, third-party,
in-kind, state, and other funds that are able to be used
to draw down federal funding. Requires DSS to assign
staff to coordinate with other workfare programs in the
state, as specified.
6.Requires DSS to convene a stakeholder task force to
develop a plan to improve and expand the FSET program
educational components, and to expand the Cal Success
program, as allowed by federal administrators. Requires
the task force to report to the Legislature on its
progress by January 15, 2011.
7.Allows DSS to retain FSET program funds in an amount not
to exceed the amount necessary to administer specified
tasks, and requires DSS to annually report to the
Legislature the amount expended on administration.
8.Expresses the intent of the Legislature to increase
meaningful opportunities for employment and training in
the FSET program.
FISCAL IMPACT
Unknown
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BACKGROUND AND DISCUSSION
Author's statement
The author writes that SB 1322 will increase uniformity for
the minimum work requirements for food stamp participation,
help counties develop better FSET programs with stronger
vocational education components, and maximize opportunities
for receiving more federal funds. The author notes that
the FSET program is an underutilized source of employment
and training that can help low-income individuals gain the
skills and training needed to secure work and achieve
self-sufficiency. By offering additional and more
meaningful ways to meet work requirements, and by aligning
various work rules, the bill will help this population
retain their food assistance benefits and take advantage of
meaningful employment and training opportunities.
SNAP/food stamp program
In California, more than 3 million people receive federal
food assistance benefits. According to the USDA, in 2009,
California received $4.3 billion in federal food assistance
benefits; yet, only about half of eligible persons actually
receive food stamps. Some advocates argue that the state
could be receiving billions more in food assistance
benefits and the state should take actions to improve food
stamp participation for the benefit of low-income
individuals and the state's economy.
To qualify for SNAP benefits, households must meet certain
income tests, and some households must meet certain
resource tests and work requirements. SNAP requires all
recipients, unless exempted by law, to register for work at
the appropriate employment office, participate in an
employment and training program if assigned by a state or
local administering agency, and accept an offer of suitable
employment. Food stamp recipients are exempted from
registering for work and engaging in employment and
training activities if they are under age 16 or over age
59; physically or mentally unfit for employment; caring for
a child under the age of 6 (or 12, in some cases); employed
30 hours a week; or subject to and complying with work
requirements for other programs, such as those required by
CalWORKs. Additionally, others are exempted because they
are receiving unemployment insurance compensation,
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participating in a drug and alcohol treatment and
rehabilitation program, or are students enrolled at least
half time (these students must meet other work
participation requirements).
As noted above, families receiving CalWORKS must comply
with CalWORKs work requirements in order to be exempt from
meeting the food stamp work requirements. Non-CalWORKs
families (known as non-assistance food stamps population)
must register for work, unless exempt, and participate in
FSET program activities, if they are assigned to the
program. Federal law also requires that ABAWDs are
generally limited to three months of food assistance
benefits in a 36-month period unless they fulfill federal
work requirements or receive an exemption. The American
Recovery and Reinvestment Act of 2009 eliminated this time
limit restriction until September 30, 2010.
Food Stamp Employment and Training Program
The USDA provides annual funding for program administration
for the FSET program, which is designed to help food stamp
participants gain skills, training, work experience, and
secure work. There are two types of funding from USDA: a
100 percent federal amount for states that is capped; and
an uncapped 50-50 (percent) federal/state/other
reimbursement program. The 100 percent funds are allocated
to states based on a formula that takes into account the
number of work registrants in the state. Under the 50-50
formula, the federal government reimburses states fifty
cents of every non-federal dollar spent on allowable
employment and training services or activities. Non-federal
dollars can come from state, county or city revenue;
foundation grants; employer paid costs; private tuition
payments and private funds raised by community-based
organizations. USDA Food and Nutrition Services guidance
indicates that non-governmental revenue is subject to
federal approval for the purposes of obtaining the 50
percent reimbursement. Additionally, the federal
government pays half of approved reimbursements to FSET
program participants for work-related expenses. States may
determine the reimbursement structure and procedures for
these supports, which may include uniforms, supplies,
transportation, interview and work clothing, books and
manuals, professional testing and licensing, as well as
other items.
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In California, counties determine which individuals in the
food stamp household must participate in the FSET program.
Federal law determines who must be exempt, but counties can
additionally determine whether a food stamp recipient is a
mandatory or volunteer participant in FSET, or exempt
(beyond the population determined to be exempt by federal
law). FSET programs can include a variety of services and
support for training and employment activities, such as
English as a second language; employment search; general
education development; high school equivalency; job skills
training for non-ABAWDs; literacy skills; job
readiness/motivation; on-the-job training; orientation;
short-term vocational training; and supportive services
including counseling and parenting/life skills. In
California, individual counties determine the range of
services as well as the rules governing mandatory and
voluntary placements and exemptions.
A General Accounting Office report from 2003 noted that the
percentage of food stamp recipients served by FSET programs
was only nine percent, because most food stamp recipients
are exempt from food stamp work requirements due to their
age or health problems. The report also described the
population as generally hard to employ because they have
little education, a limited work history, and are prone to
substance abuse problems and homelessness.
In California, more than 20 counties participate in the
FSET program. According to DSS, in 2009, the FSET program
(combined 100 percent, 50/50 funds, including county funds)
was about $82.6 million. For federal fiscal year 2009, DSS
reported more than 327,913 work registrants. Of this
population, about 83,389 individuals participated in at
least one FSET program component. One center on
homelessness notes that people who are typically exempt
from FSET program participation and work registration,
could be a volunteer participant if allowed by a state.
In order to draw down more federal funds through the FSET
program, the state recently undertook a third-party match
model called "Cal Success," a partnership between the
state, counties, and community colleges to expand
educational opportunities for food stamp participants by
increasing access to FSET funds. Three California community
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colleges (Foothill-De Anza College in Santa Clara County,
Cabrillo College in Santa Cruz County, and Skyline College
in San Mateo County) were authorized to use existing
community college general funds as the match, allowing the
college to draw down an equal amount of FSET program funds
to provide job readiness training, case management and
tutoring, job placement services, as well as fund career
technical education and basic skills courses, and provide
textbook and transportation support directly to
participants.
The Cal Success pilot and the FSET program were the subject
of a March 9 hearing on maximizing federal funds for human
services. Since that hearing, the Food and Nutrition
Service of USDA has issued further guidance on allowable
reimbursements using community college spending, which will
force the state to rethink and refashion how it draws down
50-50 funds for this population.
Arguments in support
Western Center on Law and Poverty, the sponsor of the
measure, writes that SB 1322 will address longstanding
barriers to participation in the food stamp program and
encourage vocational education within the FSET program.
The sponsor states that, in 2009, even though the federal
government waived work rules in the food stamp program
throughout the country due to high unemployment, California
continued to require work registrants to participate in job
search and other work programs in order to continue
receiving food stamps. The sponsor believes that these
policies contribute to an average of 15,000-20,000 work
registrants losing their food stamp benefits each month,
and notes that, for every $1.00 that a low-income
Californian loses in federal food stamps, the state loses
$1.73 in economic activity.
The California Association of Food Banks writes that the
bill will help food banks by reducing barriers to food
stamps, thus reducing dependence on food banks, and by
encouraging people to meet their food stamp work
requirements by volunteering at nonprofit organizations,
like food banks, which have been seeing declining pools of
volunteers over the past decade. As an example, the group
notes that the Alameda County Community Food Bank has
benefited from volunteers from Alameda County's workfare
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program.
POSITIONS
Support: Western Center on Law and Poverty (sponsor)
Alameda County Community Food Bank
California Association of Food Banks
California Catholic Conference, Inc.
California Food Policy Advocates
Coalition of California Welfare Rights
Organizations
Insight Center for Community Economic Development
Single Stop USA
Oppose:None received
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