BILL ANALYSIS �
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THIRD READING
Bill No: AB 6
Author: Fuentes (D), et al.
Amended: 8/30/11 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 4-0, 06/28/11
AYES: Liu, Hancock, Wright, Yee
NO VOTE RECORDED: Emmerson, Berryhill, Strickland
SENATE APPROPRIATIONS COMMITTEE : 6-3, 08/25/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
ASSEMBLY FLOOR : 49-27, 06/01/11 - See last page for vote
SUBJECT : CalWORKs and CalFresh
SOURCE : Author
DIGEST : This bill changes policies relating to the
administration of the California Work Opportunity and
Responsibility to Kids (CalWORKs) and CalFresh programs.
ANALYSIS : Existing law:
1.Establishes the CalWORKs program, which requires each
county to provide cash assistance and services to needy
families using federal Temporary Assistance to Needy
Families (TANF) block grants, as well as state and county
funds.
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2.Establishes the CalFresh program to administer
California's allocation of federal funds under the
Supplemental Nutrition Assistance Program (SNAP),
formerly called food stamps. Counties distribute
CalFresh benefits to eligible participants.
3.Requires that the Department of Social Services (DSS) and
the Health and Welfare Data Center maintain a statewide
fingerprint imaging system to use as a part of the
application process under the CalWORKs and CalFresh
programs and requires applicants, as a condition of
eligibility, to submit their fingerprints.
4.Requires counties to re-determine eligibility for
CalWORKs benefits and grant amounts on a quarterly basis
and to determine prospectively the grant amount that a
recipient is entitled to receive for each month of the
quarterly reporting period.
5.Directs DSS to use the CalWORKs quarterly reporting
system in its administration of CalFresh.
6.Requires that participants of both programs submit
quarterly reports in order to maintain their eligibility.
7.Establishes that DSS is responsible for administering
CalFresh benefits and that the Department of Community
Services and Development is responsible for administering
the federal Low-Income Energy Assistance Program block
grant.
This bill:
1.Requires counties to convert from a quarterly to a
semi-annual reporting (SAR) system for the CalWORKs and
CalFresh programs no later than January 1, 2013.
2.Eliminates the Statewide Fingerprint Imaging System
(SFIS) requirement for CalWORKs and CalFresh.
3.Creates a "Heat and Eat" program jointly with DSS and the
Department of Community Services Development (CSD) by
January 1, 2013.
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4.Retains fingerprint imaging for the CalWORKs program,
thereby removing potential increased CalWORKs grant costs
of up to $65 million annually.
5.Lowers the income reporting threshold under SAR to 55
percent of the federal poverty level for a family of
three, thereby substantially reducing increased ongoing
CalWORKs grant costs.
6.Specifies that administrative savings that may be
reflected in the budget due to the implementation of SAR
shall not exceed the amount necessary to fund the net
General Fund costs of the SAR provisions of the bill.
Possible additional savings in excess of this amount may
only be reflected to the extent that they are based on
actual savings related to the change to SAR calculated
based on data developed in consultation with California
Welfare Directors Association (CWDA).
7.Removes the provision of the bill allowing counties to
implement SAR on a staggered basis, and would extend the
operative date to April 1, 2013, with full implementation
no later than October 1, 2013.
8.Makes various technical changes.
Background
California participation is low
Half of eligible Californians receive CalFresh, according
to reports by the United States Department of Agriculture.
The state ranked second to last in 2008 among states in use
of benefits by eligible residents, and California ranked
last in use of benefits among eligible working poor
families, according to the USDA. USDA lists California
among traditionally poor performing states. California's
low participation has been a concern of the federal
government, which provides 100 percent of the funding for
CalFresh benefits.
Fingerprinting and USDA concerns
California is one of three states and one city that require
fingerprinting as a condition of eligibility. By
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fingerprinting applicants, counties are able to determine
whether the same applicant receives duplicate benefits in
another county or under another name.
A 2003 Bureau of State Audits report, Statewide Fingerprint
Imaging System: The State Must Weigh Factors Other Than
Need and Cost-Effectiveness When Determining Future Funding
for the System , concluded that the state "was remiss" in
implementing the system before determining the extent of
duplicate aid fraud. It noted that other computer checks
are in place to ensure that duplication and other forms of
fraud are identified. It said that in 1998, the USDA had
expressed concern about the ability of DSS to identify the
extent of duplicate-aid fraud throughout the state.
The primary benefits that the State derives from
continuing to use SFIS are the proven effectiveness of
fingerprint imaging technology to identify duplicate
fingerprints and its ability to identify applicants
who may travel from county to county seeking duplicate
aid. On the other hand, most of the matches that SFIS
identified have turned out to be administrative errors
made by county staff, and the level of detected
duplicate-aid fraud has been small.
The USDA notes that states with finger imaging requirements
have an average seven percent lower participation rate when
compared to similar states, and USDA is concerned enough
about the deterrent factor that it has prohibited other
states from requiring applicants to be fingerprinted.
In a May 7, 2010 letter to the director of DSS, the
undersecretary of USDA's Food, Nutrition and Consumer
services branch emphasized the agency's serious concerns
that finger imaging requirements may be a barrier to
participation and encouraged DSS to "actively consider"
more cost-effective alternatives to finger imaging. In a
letter to the author sent in May of 2011, the USDA Under
Secretary noted, "There are serious concerns that finger
imaging requirements may be a barrier to participation
among many of the hard to reach eligible populations who
wish to enroll in the program?. We must ensure that we are
not creating unnecessary barriers in the application
process."
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The counties also use a computerized Income and Eligibility
Verification System currently to detect other types of
fraud. This system also is employed by the counties for
use in tracking fraud in their general assistance programs.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13
2013-14 Fund
Conversion to SAR*
Automation $19,000 ($14,000 TANF/GF)
one-timeFed/TANF/GF
Limited-term staffing $2,700 ($700
GF) over four years
Fed/General
CalWORKs grants $0
($375)$12,900TANF/GF
CFAP grants $0 $650 $2,000General
Potential admin savings** $0
($8,700) ($33,100) General
Elimination of SFIS - CalFresh
Automation $1,600 $3,200
$3,200TANF/GF
CalFresh administration $1,600 $6,300
$6,000 General
CFAP grants $400 $1,500
$3,000General
"Heat and Eat" Program
CSD programming $500
to $1,000 one-time, $120 ongoing
General
HEAP benefit Unknown; up to
$3,000 annually Federal
CalFresh admin $0 $0 $500 General
CFAP grants $0 $1,200$2,800General
Increased CalFresh benefitsPotentially in excess of
$775,000 annually Federal
Total annual cost $4,700
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$26,900$30,800 TANF/GF
Admin savings to fund SAR* $0
($8,700) ($15,100) TANF/GF
Potential tax revenue ($675)
($7,100) ($15,800) General
*Conversion to SAR will preclude the State from incurring
one-time upfront costs to implement federal pure
quarterly reporting of $5 million and ongoing costs of
$13 million General Fund annually.
**Savings may be taken in the Budget Act up to the amount
necessary to fund the net General Fund costs of the SAR
provisions. Additional savings in excess of this amount
to be based on data developed in consultation with the
CWDA.
SUPPORT : (Verified 8/29/11)
AARP California
Alameda County Community Food Bank
California Alliance for Retired Americans
California Association of Food Banks
California Association of Retailers
California Catholic Conference
California Chamber of Commerce
California Communities United
California Farm Bureau Federation
California Grocers Association
California Hunger Action Coalition
California Immigrant Policy Group
California/Nevada Community Action Partnership
California Restaurant Association
California WIC Association
Catholic Charities of California
Catholic Charities Diocese of San Diego
Children's Defense Fund- California
City of Los Angeles
City and County of San Francisco
Coalition of California Welfare Rights Organizations
Congregation Emanu-El
Feeding America
First Five Los Angeles
Food Bank of Contra Costa and Solano
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Food Bank of Santa Barbara County
Food for People-Humboldt Counter
Food Share-Ventura
JERICHO
Hunger Action Los Angeles
Jewish Family Services of San Diego
Jewish Family Services of Los Angeles
Los Angeles County Domestic Violence Council
Los Angeles Regional Food Bank
MAZON: A Jewish Response to Hunger
National Association of Social Workers - California Chapter
New America Foundation
Orange County Food Bank
Orange County Food Access Coalition
Sacramento Hunger Coalition
San Diego Food Bank
San Diego Hunger Action Coalition
Santa Cruz County Board of Supervisors
Second Harvest Food Bank, Santa Cruz County
Silicon Valley Community Foundation
St. Anthony's Foundation-San Francisco
The Jewish Federation of Greater Los Angeles
United Way of Silicon Valley
Yolo County Board of Supervisors
Western Center on Law and Poverty
OPPOSITION : (Verified 8/29/11)
Los Angeles County Board of Supervisors
California District Attorneys' Association
ARGUMENTS IN SUPPORT : Supporters also believe the bill
will lead to increased senior enrollment in CalFresh,
research shows that CalFresh is underutilized among
seniors, and that higher participation in the program would
result in better nutrition for older Californians.
ARGUMENTS IN OPPOSITION : Los Angeles County opposes the
bill unless amended, arguing that elimination of the finger
imaging system would remove an important anti-fraud tool
which increases public confidence in the integrity of the
welfare system and costs 37 cents per $100 of CalWORKs
costs. Maintaining the fingerprint system is also
critical, says the county, to its cross check of General
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Assistance applicants against CalWORKs and CalFresh cases.
The county is, however, amenable to dropping the imaging
requirement for CalFresh-only cases, and does support the
move to semiannual reporting.
ASSEMBLY FLOOR : 49-27, 06/01/11
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Charles Calderon, Campos, Carter, Cedillo, Chesbro,
Davis, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani,
Galgiani, Gordon, Hall, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma,
Mendoza, Mitchell, Monning, Pan, Perea, Portantino,
Skinner, Solorio, Swanson, Torres, Wieckowski, Williams,
Yamada, John A. P�rez
NOES: Achadjian, Conway, Cook, Donnelly, Fletcher, Beth
Gaines, Garrick, Gatto, Grove, Hagman, Halderman, Harkey,
Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell,
Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Bill Berryhill, Butler, Gorell, V.
Manuel P�rez
CTW:nl 8/30/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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