BILL ANALYSIS
SB 1322
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Date of Hearing: August 4, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 1322 (Liu) - As Amended: August 2, 2010
Policy Committee: Human
ServicesVote:4 - 2
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill requires counties to allow able-bodied adults without
dependents (ABAWDs) who receive food stamps to fulfill their
federal work participation requirement through self-initiated
workfare programs. Specifically, this bill:
1)Requires counties, as specified, to offer self-initiated
workfare as a way for food stamp participants who are
able-bodied adults without dependents to meet federal work
participation requirements.
2)Makes changes to the administration of the Food Stamp
Employment and Training (FSET) program, including rules
governing mandatory and voluntary placements into the program,
as well as exemptions from work requirements.
3)Requires counties operating FSET programs to screen food stamp
work registrants to determine whether they will participate in
or be exempt from the FSET program. If exempt, participants
can enroll in FSET as a voluntary participant.
4)Requires counties operating FSET programs to allow mandatory
participants to fulfill their work requirements through
self-initiated workfare as of October 1, 2011.
5)Requires counties to demonstrate in their FSET plan how they
are using federal FSET funds for self-initiated workfare, work
experience or training, education, job search, or supportive
services.
6)Requires the California Department of Social Services (DSS) to
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promulgate regulations implementing the provisions of this
legislation by October 1, 2012. Prior to that date, DSS is
authorized to implement the legislation by all-county letter.
FISCAL EFFECT
1)Because this legislation could constitute a state mandate by
requiring counties to provide self-initiated workfare programs
for ABAWD participants, it could result in counties filing
mandate claims for the county cost associated with those
participants who elect to fulfill their work requirement
through self-initiated workfare.
If 10% of the ABAWDS not residing in FSET counties or not
subject to a federal work requirement waiver elected
self-initiated workfare, the General Fund cost to the state
could be up to $2 million for the associated case management,
transportation, and ancillary costs.
2)Unknown, but potentially significant state mandated costs
associated with requiring FSET counties to offer
self-initiated workfare to their participants if the
Commission on State Mandates determines this constitutes a
reimbursable mandate. Currently, activities offered in a
county FSET program are largely contingent upon the county's
FSET budget (federal/county funds). However, this bill would
require FSET counties to offer self-initiated workfare for
their FSET participants.
Although FSET counties could choose to no longer offer other
activities they were previously offering to accommodate
self-initiated workfare, it is likely that counties would
instead add self-initiated workfare to their list of
activities since this would be a state mandate, and they would
be able to ask for state reimbursement. These reimbursement
costs would include costs for case management, transportation,
and ancillary administration.
COMMENTS
1)Rationale . The purpose of this legislation is to provide an
additional employment option for recipients of food stamps who
fall into the ABAWD category and must meet federal work
requirements in order to maintain their eligibility for food
stamps. In addition, the bill aligns ABAWD and FSET work
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requirements. The author states, "This bill brings more
uniformity to the minimum work requirements for participation
in the Food Stamp program (FSP) and offers additional and more
meaningful ways to meet those work requirements."
2)FSET Program . Federal food stamp program rules require all
recipients, unless exempted by law, to register for work in
county welfare offices, participate in an employment and
training program if assigned by a state or local agency, and
accept an offer of suitable employment.
The FSET program delivers employment and training services to
people who receive food stamp benefits, but are not on the
California Work Opportunity and Responsibility to Kids program
(CalWORKs), the state's temporary financial assistance and
employment services program for families with children. FSET
is administered by the United States Department of
Agriculture's Food and Nutrition Service, DSS, and
participating counties. Funding is intended to help
participants acquire skills to exit the food stamp program or
to fulfill federal work requirements that are necessary to
continue receiving food stamps. However, not all counties
participate in FSET and not all FSET programs are the same, or
apply the same rules. In California, more than 20 counties
participate in the FSET program.
3)Federal Work Requirement Waiver . Unless exempt, federal law
requires that after three months ABAWD participants receiving
food stamps participate in a work activity for at least 20
hours per week in order to maintain their eligibility for food
stamps. The American Recovery and Reinvestment Act of 2009
suspended the work requirement until September 30, 2010. In
addition, areas with high unemployment can apply for a federal
waiver of the work requirements. California has been granted
a waiver for the entire state for federal fiscal year 2011.
4)Key Issue . The FSET program is a federal program administered
by the state. There is no reference to FSET in current law.
The Legislature may wish to consider whether this bill should
establish the program in state law. As currently written,
this bill simply establishes specific requirements for
counties that are operating FSET programs.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081
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