BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 43|
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                                 THIRD READING


          Bill No:  SB 43
          Author:   Liu (D)
          Amended:  4/25/11
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  7-0, 4/12/11
          AYES:  Liu, Emmerson, Berryhill, Hancock, Strickland, 
            Wright, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  8-0, 5/26/11
          AYES:  Kehoe, Walters, Alquist, Lieu, Pavley, Price, 
            Runner, Steinberg
          NO VOTE RECORDED:  Emmerson


           SUBJECT  :    CalFresh Employment and Training program

           SOURCE  :     Western Center on Law and Poverty


           DIGEST  :    This bill requires those counties that elect to 
          provide a CalFresh Employment and Training (CalFresh E&T) 
          program to screen work registrants and defer (exempt) an 
          individual from mandatory placement if he or she meets 
          federal deferral criteria or resides in a federally 
          determined work surplus area. This bill would also require 
          those counties that elect to participate in the CalFresh 
          E&T program, beginning October 1, 2012, to offer 
          self-initiated workfare to registrants who are mandatorily 
          placed in the program. 

           ANALYSIS  :    
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          Existing federal law:

          1. Establishes the Supplemental Nutrition Assistance 
             Program (SNAP), formerly the food stamp program, 
             administered by the United States 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 CalFresh E&T 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, CalFresh, 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 
             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 counties to screen work registrants to 
             determine whether they will participate in, or be 
             deferred from, the CalFresh E&T program.  Requires an 

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             individual to be deferred from mandatory placement in 
             the CalFresh E&T program if he/she satisfies any of the 
             federally mandated criteria, or if he/she resides in a 
             federally determined work surplus area.  Allows a work 
             registrant, who is deferred, to request to enroll in the 
             CalFresh E&T program as a voluntary participant.

          2. Requires a county that participates in the CalFresh E&T 
             program to demonstrate how it is effectively using 
             CalFresh E&T program funds for each component that the 
             county offers, including, but not limited to, 
             self-initiated workfare, work experience or training, 
             education, job search, and the support services or 
             client reimbursements needed to participate in these 
             components, as allowed by federal law and guidance.  
             Clarifies that a county is not required to offer any 
             particular component.

          3. Requires a county that elects to participate in the 
             CalFresh E&T program, beginning October 1, 2012, to 
             allow work registrants who are mandatorily placed in the 
             CalFresh E&T program to meet work requirements of that 
             CalFresh E&T placement through self-initiated workfare 
             and requires the county to notify the work registrant of 
             the option.

          4. Provides that a county has no duty to provide for 
             workers' compensation coverage for a CalFresh E&T 
             participant who elects to participate in self-initiated 
             workfare, and that nothing in this measure shall limit a 
             county's ability to condition nonmedical benefits under 
             Section 17000.

          5. Defines "self-initiated workfare" as a public service 
             placement in a public or private nonprofit agency that 
             is initiated by the CalFresh recipient, for which the 
             recipient is responsible for documentation of hours.  
             Requires self-initiate workfare to be verified in the 
             same manner as other work activity verification, and 
             must meet other federal requirements.

          6. Expresses the intent of the Legislature to increase 
             meaningful opportunities for employment and training in 
             the CalFresh E&T program and to assist CalFresh 

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             recipients in meeting the work requirements under the 
             CalFresh program.

           Prior Legislation
           
          SB 1322 (Liu), 2009-10 Session, in its final version, was 
          nearly identical to SB 43.  In his veto message, Governor 
          Schwarzenegger stated:  "While I support the state's Food 
          Stamp Employment and Training program and the economic 
          benefits that federal food stamps bring to California, I am 
          troubled that this bill reduces county flexibility and 
          instead requires that they offer self-initiated workfare.  
          Self-initiated workfare weakens the 'work-first' message of 
          the program by allowing recipients to self-direct their own 
          volunteer work.  While I wholeheartedly support volunteer 
          work in local
          communities, it does not build the skills and work 
          experience that is the primary objective of this particular 
          program.  For these reasons, I cannot support this 
          measure."

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

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions        2011-12    2012-13     2013-14       Fund  

          Additional CalFresh            $10,700 annually for every 
          25% of                Federal
          benefits              E&T participants discontinued due
                                to work requirements

          Additional CalFresh            $1,100 annually ($385 GF) 
          for every             Federal/
          admin                 25% of E&T participants 
          discontinuedGeneral/
                                due to work requirements       Local

          CalFresh E&T regulation        cost pressure on county E&T 
          grants                Federal
          changes

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           SUPPORT  :   (Verified  5/26/11)

          Western Center on Law and Poverty (source)
          AARP 
          Alameda County Community Food Bank
          California Association of Food Banks
          California Food Policy Advocates
          California Grocers Association
          California Hunger Action Coalition
          California Retailers Association
          Catholic Charities of California United
          Coalition of California Welfare Rights Organizations
          County Welfare Directions Association 
          Hunger Action Los Angeles
          JERICHO
          Jewish Family Service of Los Angeles
          Los Angeles Regional Foodbank
          Sacramento Hunger Coalition


           ARGUMENTS IN SUPPORT  :    Western Center on Law and Poverty 
          (WCLP), the bill's sponsor, writes that participation in 
          CalFresh has almost doubled since the recession began; yet 
          California has the worst food stamp participation rates 
          according to the USDA.  WCLP believes that one of the most 
          efficient and humane ways to address under-participation in 
          the program is to ensure that people who are eligible and 
          currently receiving CalFresh benefits can easily retain 
          them when they are eligible under federal law.  WCLP notes 
          that aligning federal and local work rules associated with 
          the CalFresh Program and offering new ways for people to 
          meet these work rules will help achieve that.

          WCLP points out that, during times of high unemployment, 
          the federal government relaxes the mandatory work rules by 
          allowing states to waive work requirements and time limits 
          for ABAWDs, because it is unfair to keep food assistance 
          from people who cannot meet work rules when unemployment is 
          high, and because communities depend on federal funds to 
          continue to infuse their local economies when they are 
          struggling through bad economic times.  WCLP notes that, 
          over the past several years, all counties have chosen to 
          'opt in' to the federal ABAWD waiver, relieving its food 

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          stamp participants of this work rule; yet 20 counties 
          imposed harsher sanctions on the same population of 
          unemployed Californians who are required to participate in 
          their CalFresh E&T Programs.  WCLP believes that, because 
          work rules and accompanying sanctions are applied 
          disproportionately across the state, unemployed 
          Californians are losing federal food benefits and going 
          hungry.


          CTW:mw  5/26/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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