BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1322|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1322
          Author:   Liu (D)
          Amended:  8/16/10
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  3-1, 4/13/10
          AYES:  Liu, Romero, Yee
          NOES:  Runner
          NO VOTE RECORDED:  Maldonado

           SENATE APPROPRIATIONS COMMITTEE  :  10-0, 5/27/10
          AYES:  Kehoe, Alquist, Corbett, Denham, Leno, Price,  
            Walters, Wolk, Wyland, Yee
          NO VOTE RECORDED:  Cox

           SENATE FLOOR  :  36-0, 6/2/10
          AYES:  Aanestad, Alquist, Ashburn, Calderon, Cedillo,  
            Cogdill, Corbett, Correa, Cox, Denham, DeSaulnier,  
            Ducheny, Dutton, Florez, Hancock, Harman, Hollingsworth,  
            Huff, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod,  
            Padilla, Pavley, Price, Romero, Runner, Simitian,  
            Steinberg, Strickland, Walters, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Oropeza, Wiggins, Vacancy, Vacancy

           ASSEMBLY FLOOR   58-16, 8/23/10 - See last page for vote


           SUBJECT  :    Food Stamp Employment and Training program

           SOURCE  :     Western Center on Law and Poverty


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           DIGEST  :    This bill allows participants in the Food Stamp  
          Employment and Training program to fulfill their work  
          requirement through a public service placement in a public  
          or private nonprofit agency.

           Assembly Amendments  require counties that elect to  
          participate in the Food Stamp Employment and Training  
          program (FSET) program to demonstrate effectiveness based  
          on specified criteria requires counties that participate to  
          allow work registrants to meet requirements by October 1,  
          2011, and provides that counties are not required to  
          provide for workers' compensation coverage in certain  
          situations.

           ANALYSIS  :    

          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 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  

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             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 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.

           Background
           
          In California, more than three 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  

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          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,  
          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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          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  

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          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.

           SUPPORT  :   (Verified  8/24/10)

          Western Center on Law and Poverty (source)
          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


          ARGUMENTS IN SUPPORT  :    Western Center on Law and Poverty,  
          the sponsor of this bill writes this bill 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.


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          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  
          program.


           ASSEMBLY FLOOR  : 
          AYES: Ammiano, Arambula, Bass, Beall, Bill Berryhill,  
            Block, Blumenfield, Bradford, Brownley, Buchanan,  
            Caballero, Charles Calderon, Carter, Chesbro, Coto,  
            Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Galgiani, Gatto, Gilmore, Hall, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jones, Lieu, Logue,  
            Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, Nestande,  
            V. Manuel Perez, Portantino, Ruskin, Salas, Saldana,  
            Skinner, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, John A. Perez
          NOES: Adams, Anderson, Tom Berryhill, Conway, DeVore,  
            Fuller, Gaines, Garrick, Hagman, Harkey, Knight, Miller,  
            Niello, Nielsen, Silva, Smyth
          NO VOTE RECORDED: Cook, Furutani, Jeffries, Norby, Vacancy,  
            Vacancy


          CTW:do  8/24/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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