BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1322
                                                                  Page  1


          SENATE THIRD READING
          SB 1322 (Liu)
          As Amended  August 16, 2010
           Majority vote 

           SENATE VOTE  :36-0  
           
           HUMAN SERVICES      4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Beall, Ammiano, Hall,     |Ayes:|Fuentes, Bradford,        |
          |     |Portantino                |     |Huffman, Coto, Davis, De  |
          |     |                          |     |Leon, Gatto, Hall,        |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Tom Berryhill, Logue      |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Allows participants in the Food Stamp Employment and  
          Training (FSET) program to fulfill their work requirement  
          through a public service placement in a public or private  
          nonprofit agency.  Specifically,  this bill  :   

          1)Requires a county that operates an FSET program to screen food  
            stamp work registrants to determine if they are mandated to  
            work or be deferred due to an existing exemption.

          2)Allows deferred work registrants to participate in the  
            self-initiated workfare option as a voluntary participant.

          3)Allows, starting on October 1, 2011, work registrants who are  
            mandatorily placed in the FSET program to meet their work  
            requirements through self-initiated workfare.

          4)Defines self-initiated workfare, as specified.  

          5)Requires a county that participates in the FSET program to  
            demonstrate it is effectively using FSET funds, as specified.

          6) Requires the Department of Social Services (DSS) to adopt  
            implementing regulations by October 1, 2012.








                                                                  SB 1322
                                                                  Page  2



           FISCAL EFFECT :  According to the Assembly Appropriations  
          Committee, unknown, but potentially significant state mandate  
          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.  

           COMMENTS  :  The Food Stamp Program (FSP) 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 administering  
          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 USDA's Food and Nutrition Service, DSS, and  
          participating counties.  Funding helps 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.  

          According to the author, in California, approximately 30,000  
          food stamp recipients are registered as new work registrants per  
          month.  According to federal law, certain food stamp recipients  








                                                                  SB 1322
                                                                  Page  3


          are required to register for work and, depending on state law,  
          may be required to participate in mandatory work programs.  This  
          is true even during periods of high unemployment.  Through 2009,  
          as 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.  These policies contribute to the average  
          15-20,000 work registrants losing their food stamp benefits each  
          month.  This bill would add an additional way for work  
          registrants to fulfill their work requirements through an option  
          called self-initiated workfare.  This option allows work  
          registrants to find voluntary work with a public or private  
          non-profit entity resulting in these individuals ability to meet  
          their work requirements, continue to receive food assistance,  
          and build or strengthen their work experience during economic  
          times when paying jobs are extremely difficult to obtain.

          Prioritizing FSET funding  :  This bill also requires counties to  
          demonstrate that they are effectively using FSET funding for  
          various program components.  The author's intent is to provide  
          flexibility, little cost, and having FSET counties be more  
          thoughtful about their programs and developing components that  
          really help people improve their skills and get off aid.  
           
           
           Analysis Prepared by  :    Frances Chacon / HUM. S. / (916)  
          319-2089 




                                                                FN: 0006063