BILL ANALYSIS �
SB 43
Page 1
Date of Hearing: June 28, 2011
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
SB 43 (Liu) - As Amended: April 25, 2011
SENATE VOTE : 38-0
SUBJECT : CalFresh Employment and Training program
SUMMARY : Seeks to make the state's CalFresh Employment and
Training program (CalFresh E&T) more effective and equitable.
Specifically, this bill :
1)Requires counties to screen work registrants to determine
whether they will participate in, or be deferred from,
CalFresh E&T.
2)Requires an 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.
3)Requires a county that participates in the CalFresh E&T
program to demonstrate how it is effectively using the
CalFresh E&T 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.
4)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 CalFresh E&T to meet
work requirements of that program placement through
self-initiated workfare and requires the county to notify the
work registrant of the option, and further, 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-initiated workfare to
SB 43
Page 2
be verified in the same manner as other work activity
verification, and must meet other federal requirements.
5)Provides that a county has no duty to provide for workers'
compensation coverage for the CalFresh E&T program 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.
6)Updates the name of the Food Stamp Employment and Training
program to CalFresh E&T.
7)Expresses the intent of the Legislature to increase meaningful
opportunities for employment and training in the CalFresh E&T
program and to assist CalFresh recipients in meeting the work
requirements under the CalFresh program.
SB 43
Page 3
EXISTING LAW :
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, is limited to three months of
SNAP/CalFresh benefits within a 36-month period unless they
comply with work requirements.
2)Establishes the SNAP E&T program, administered by the USDA,
which requires state agencies to implement an employment and
training program to assist SNAP/CalFresh 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 SNAP/CalFresh program limitation that
stipulates that an ABAWD participant is limited to three
months of SNAP/CalFresh benefits 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.
FISCAL EFFECT : Unknown
COMMENTS : The author states that,
SB 43 will help CalFresh recipients retain their
eligibility for federal food benefits in tough
SB 43
Page 4
economic times and increase meaningful opportunities
in the CalFresh Employment and Training (CalFresh E&T
program) program. The author believes that during
periods of high unemployment, when meeting work
requirements is most difficult, waiving CalFresh E&T
work requirements when federal SNAP work requirements
are waived can help vulnerable Californians maintain
their access to federal food benefits and help retail
businesses weather economic downturn. The author
points out that, according to the USDA, every $5 in
new SNAP benefits generates $9 in total community
spending. Additionally, the author states that, by
allowing people who are assigned to the CalFresh E&T
to meet their work requirements by volunteering at a
public or private nonprofit agency, such as a school,
food bank, or fire department, the bill encourages
individual initiative and helps local communities
benefit from these volunteers.
SNAP/CalFresh background
In California, 3.6 million people participate in CalFresh/SNAP.
In the last federal fiscal year, California received $6.8
billion in federal food assistance benefits; yet, only about
half of eligible persons in California participate in CalFresh.
Some advocates argue that the state could be receiving billions
more in food assistance benefits and the state should take
actions to improve food stamp participation for the benefit of
low-income individuals and the state's economy.
To qualify for SNAP benefits, households must meet income tests,
and some households must meet specified 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. SNAP beneficiaries 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,
SB 43
Page 5
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).
CalFresh E&T program background
The USDA provides annual funding for program administration for
the CalFresh E&T program, which is designed to help CalFresh
participants gain skills, training, work experience, and secure
work. There are two types of funding from USDA: a 100% federal
amount for states that is capped; and an uncapped 50-50
(percent) federal/state/other reimbursement program. The 100%
funds are allocated to states based on a formula that takes into
account the number of work registrants in the state. Under the
50-50 formula, the federal government reimburses states fifty
cents of every non-federal dollar spent on allowable employment
and training services or activities. Non-federal dollars can
come from state, county or city revenue; foundation grants;
employer paid costs; private tuition payments and private funds
raised by community-based organizations. USDA Food and
Nutrition Services guidance indicates that non-governmental
revenue is subject to federal approval for the purposes of
obtaining the 50% reimbursement.
In California, counties determine which individuals in a
non-assistance (i.e., non CalWORKs) CalFresh household must
participate in the CalFresh E&T program. Federal law provides
for certain exemptions, but counties can additionally determine
who must participate in the CalFresh E&T program or be exempt
beyond the population determined to be exempt by federal law.
CalFresh E&T programs can include a variety of services and
support for training and employment activities, such as
employment search; general education development; high school
equivalency; job skills training; short-term vocational
training; and supportive services. In California, individual
counties determine the range of services as well as the rules
governing mandatory and voluntary placements and exemptions.
For FFY (federal fiscal year) 2010, 23 counties in California
participated in the CalFresh E&T program, which totaled $94.5
million. Of that amount, 100% federal funds accounted for $7.5
million; 50/50 federal/county funds (for overmatch for
administration cost and participant reimbursements) accounted
for the remainder. Job search and job club accounted for the
vast majority of expenditures, followed by modest expenditures
in workfare, vocational training, education, and job retention.
SB 43
Page 6
On the job training and self-initiated workfare accounted for
negligible amounts. Of the $7.5 million in 100% federal funds,
DSS withheld $808,000 from the federal allocation for covering
state administrative costs and for providing workers'
compensation coverage for FSET participants, which DSS typically
budgets at around $408,000. For federal fiscal year 2010, DSS
reported more than 791,850 work registrants. Of this
population, about 73,859 individuals were expected to
participate in at least one CalFresh E&T program component.
Prior legislation
SB 1322 (Liu) of 2010, in its final version, was nearly
identical to this measure. The measure was vetoed by Governor
Schwarzenegger, with the following message:
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.
Arguments in support
The Western Center on Law & Poverty (WCLP), the sponsor of the
measure, writes that participation in CalFresh has almost
doubled since the recession began; yet California has the worst
CalFresh 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
SB 43
Page 7
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 Able
Bodied Adults Without Dependents (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 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.
Further, WCLP believes that self-initiated workfare will allow
an individual to select a community based nonprofit or public
agency that better fits with his or her employment goals or
skills training needs, and also benefits his or her community.
WCLP believes that the bill will help end hunger and get people
back to work when jobs return.
The Alameda County Community Food Bank (ACCFB) writes that, in
the last fiscal year, 83 people served as volunteers through the
county's self-initiated workfare program, contributing 6,502
hours to the food bank. ACCFB notes that, as the need for its
services grows due to the struggling economy, so does the need
to grow its volunteer workforce. ACCFB states that without the
workfare participants and other volunteers, it wouldn't be able
to serve the growing number of people in the county who need
food assistance.
REGISTERED SUPPORT / OPPOSITION :
Support
AARP
Alameda County Community Food Bank
California Association of Food Banks
California Commission on the Status of Women
SB 43
Page 8
California Grocers Association (CGA)
California Hunger Action Coalition (CHAC)
County Welfare Directors Association (CWDA)
Hunger Action Los Angele
Insight Center for Community Economic Development
Western Center on Law and Poverty (sponsors)
13 Individuals
Opposition
None on file
Analysis Prepared by : Frances Chacon / HUM. S. / (916)
319-2089