BILL ANALYSIS �
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 1560
A
AUTHOR: Fuentes
B
VERSION: May 25, 2012
HEARING DATE: June 26, 2012
1
FISCAL: Yes
5
6
CONSULTANT: Mareva Brown
0
SUBJECT
CalFresh: categorical eligibility
SUMMARY
Waives the gross income test for CalFresh for any
individual who is categorically eligible for CalFresh and
who is a member of a household that receives, or is
eligible to receive, assistance under the Medi-Cal program,
to the extent permitted by federal law.
ABSTRACT
Existing law
1.Establishes the CalFresh program in state law to
administer federal funds available through the USDA's
Supplemental Nutrition Assistance Program (SNAP) which
are intended to aid low-income California households that
face hunger, undernutrition, and malnutrition. (WIC
18900)
2.Establishes that needy households become categorically
eligible for CalFresh benefits if they meet other
eligibility requirements for SNAP benefits, receive or
Continued---
STAFF ANALYSIS OF ASSEMBLY BILL 1560 (Fuentes) Page
2
are eligible for cash aid (including CalWORKs and general
assistance) or are eligible or food assistance as legal
immigrants, regardless of their assets. (WIC 18901.5)
3.Provides in federal law that households must meet both a
gross and net income determination test to qualify for
benefits. In households with an elderly or disabled
resident, or where all members receive cash aid, a
CalFresh beneficiary must meet only the net income
determination test. (7 U.S.C. 2014)
4.Provides that qualifying individuals receive health care
and related remedial or preventive services, including
related social services. (WIC 14000 et seq)
This bill :
1.Requires the Department of Social Services to waive the
CalFresh gross income test for any individual who is
categorically eligible for CalFresh benefits and is a
member of a household that is eligible or receiving
assistance through the Medi-Cal program.
FISCAL IMPACT
According to an analysis prepared by the Assembly
Appropriations Committee, administrative costs for 5,000
newly eligible participants could be up to $787,000
($393,000 GF) per year and result in approximately $650,000
in additional federal Supplemental Nutritional Assistance
Program funding.
Additionally, the analysis said administrative costs for
approximately 60,000 eligible households which are
currently eligible and are expected to begin participating
would be approximately $3 million ($1.5 million GF). This
bill could result in up to $80 million in additional
federal SNAP (CalFresh) funding. Those federal benefits
would generate close to $2 million in GF revenue through
increased sales taxes.
BACKGROUND AND DISCUSSION
STAFF ANALYSIS OF ASSEMBLY BILL 1560 (Fuentes) Page
3
Purpose of the bill
According to the author, while nutrition is a critical
component of health and wellbeing, many Medi-Cal recipients
who are currently eligible for CalFresh benefits do not
participate in the program. SNAP benefits are fully paid by
the federal government, although states are required to
fund administrative costs. In California, where
participation rates are among the lowest in the country,
advocates and policy makers have had ongoing conversations
about how to improve participation in the program among
eligible families. This bill would most impact working
households with children that rely on Medi-Cal, the author
states. "To ensure that low-income households can support
healthy living, nutrition assistance should be offered
hand-in-hand with public health coverage."
An additional efficiency, already grounded in existing
CalFresh statute, would allow Medi-Cal beneficiaries who
choose to participate in the CalFresh program, to have
their children automatically enrolled in school lunch
programs.
Currently, the gross income threshold for CalFresh is 130%
of federal poverty level. Medi-Cal eligibility does not
have a single income threshold. While the most commonly
cited income threshold is 133% of FPL, thresholds can vary
for different recipients. Thus, this bill could allow all
Medi-Cal recipients with gross incomes up to 200% of the
federal poverty level to be automatically income-eligible
for CalFresh.
Alignment would increase CalFresh participation among
current Medi-Cal recipients and those who are newly
eligible for Medi-Cal in 2014 by streamlining the
eligibility process for food assistance. By raising the
income threshold only for Medi-Cal recipients, California
Food Policy Advocates notes, the administrative costs of
processing the additional cases would be shared between the
Medi-Cal and CalFresh programs. Additionally, caseworkers
will no longer need to determine CalFresh income
eligibility for these households, and parents will no
longer need to fill out an application for their children
to receive free school meals.
STAFF ANALYSIS OF ASSEMBLY BILL 1560 (Fuentes) Page
4
CalFresh eligibility
The USDA prescribes specific eligibility requirements for
SNAP programs across the United States, including a gross
and net income asset test, work requirements, and other
documentation. The maximum allowable gross income is 130%
of the Federal Poverty Guidelines (FPG). Households with
elderly or disabled members are not subject to gross income
criteria but must have a net monthly income at or below the
FPG. Other households must meet both gross and net monthly
income tests.
Federal regulations provide states the option to permit
"categorical eligibility" for SNAP (CalFresh) benefits to
families who are authorized to receive any benefit funded
by the Temporary Assistance to Needy Families (TANF) block
grant, administered in California as CalWORKs. These
families do not need to make a separate application or meet
additional eligibility or paperwork requirements. In 2008,
AB 433 (Beall) established categorical eligibility and
eliminated the asset test for CalFresh recipients.
Additionally, children in families who are found eligible
for CalFresh benefits are certified automatically to
receive free and reduced meals at school.
While categorical eligibility based upon receipt of cash
aid was long a feature of federal policy, in 1999 the
United States Department of Agriculture (USDA) issued
guidance to expand the scope of the option to include
receipt or eligibility for services as well as cash. 7
C.F.R. � 273.2(j)(2).
Participation rate
California's SNAP participation rates have consistently
ranked among the lowest in the nation. In 2009, the state
ranked dead last, with the USDA estimating just 53 percent
of eligible Californians participated in the program. As of
December 2011, there were approximately 3.9 million
participants. The USDA's target participation rate for
states is 71 percent. From 2004 to 2008, CalFresh served
approximately one-third of California's eligible working
poor and no more than half of all eligible individuals in
the state. From FFY 2002 to 2006, CalFresh served no more
than 11% of the state's eligible seniors, 60 years or
STAFF ANALYSIS OF ASSEMBLY BILL 1560 (Fuentes) Page
5
older.
In its February 2012 report "Lost Dollars, Empty Plates,"
the California Food Policy Advocates estimate If CalFresh
reached 100 percent of all eligible individuals, California
would receive an estimated $4.9 billion in additional
federal nutrition benefits each year. Those benefits would
generate an estimated $8.7 billion in additional economic
activity per year.
Other states
According to USDA data provided by the bill's sponsor,
California Food Policy Advocates, 43 states have used
categorical eligibility to eliminate the asset test for
SNAP eligibility as of January 2012, including California.
Of those states, 27 also have raised the gross income limit
above the federal standard of 130 percent of federal
poverty guidelines.
Related legislation
AB 433 (Beall) Chapter 623, Statutes of 2008, established
categorical eligibility for CalFresh beneficiaries who are
under 130 percent of the federal poverty level, regardless
of the level of their assets. Initial versions included
categorical eligibility for Medi-Cal beneficiaries as well,
but this language was stripped from the final version of
the bill.
AB 2205 (Evans) 2006, would have established categorical
eligibility for CalFresh for recipients of Medi-Cal if they
were eligible for or receiving services from the CalWORKs
program. It was vetoed by the governor.
PRIOR VOTES
Assembly Floor: 51 - 25
Assembly Appropriations:12 - 5
Assembly Human Services: 4 - 2
POSITIONS
Support: California Food Policy Advocates (Sponsor)
STAFF ANALYSIS OF ASSEMBLY BILL 1560 (Fuentes) Page
6
AARP California
California Association of Food Banks
Congregation Emanu-El of San Francisco
Feeding America
Food Share, Ventura County's Food Bank
Hand Up Youth Food Pantry Student Advisory
Board
Hunger Advocacy Network
Jewish Family Service of San Diego
Latino Coalition for a Healthy California
San Diego Hunger Coalition
San Francisco and Marin Food Banks
Santa Clara Board of Supervisors
Western Center on Law and Poverty
Oppose: None received
-- END --