BILL ANALYSIS �
SB 43
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Date of Hearing: August 17, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
SB 43 (Liu) - As Amended: April 25, 2011
Policy Committee: Human
ServicesVote:6 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires counties to allow able-bodied adults without
dependents (ABAWDs) who receive CalFresh to fulfill their
federal work participation requirement through self-initiated
workfare programs. Specifically, this bill:
1)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.
2)Requires participating counties to offer self-initiated
workfare as a way for CalFresh participants who are
able-bodied adults without dependents to meet federal work
participation requirements.
3)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.
4)Allows exempt work registrants to enroll in CalFresh E &T as a
voluntary participant.
5)Requires counties operating CalFresh E &T programs to allow
mandatory participants to fulfill their work requirements
through self-initiated workfare as of October 1, 2012.
6)Requires counties to demonstrate in their CalFresh E &T plan
how they are using federal CalFresh E &T funds for
SB 43
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self-initiated workfare, work experience or training,
education, job search, or supportive services.
7)Requires the California Department of Social Services (DSS) to
promulgate regulations implementing the provisions of this
legislation by October 1, 2013. Prior to that date, DSS is
authorized to implement the legislation by all-county letter.
FISCAL EFFECT
1)It is unknown how many ABAWD participants are discontinued for
failure to participate in the CalFresh E & T program.
Assuming, half of the discontinued ABAWDs are potential
CalFresh E & T participants and 25% of those discontinuances
are due to a failure to participate in the CalFresh E & T
program, approximately 3,000 ABAWD CalFresh recipients are
being discontinued each month for failing to participate.
Exempting these recipients from mandatory participation could
result in a $1.3 million increase in federal CalFresh benefits
annually, if the average discontinuance lasts for three
months. The total administrative costs for those cases would
be less than $50,000.
2)Moderate costs of up to $100,000 for DSS to develop new
regulations, new claiming procedures, and to review county E &
T plans to determine whether or not the plans adequately
demonstrate how counties are effectively using their E & T
funds.
COMMENTS
1)Rationale . The purpose of this legislation is to provide an
additional employment option for recipients of food stamps who
fall into the ABAWD category and must meet federal work
requirements in order to maintain their eligibility for the
federal Supplemental Nutrition Assistance Program (SNAP) which
is known as CalFresh in California.
2)CalFresh E &T Program . Federal SNAP program rules require all
recipients, unless exempted by law, to register for work in
county welfare offices, participate in an employment and
training program if assigned by a state or local agency, and
accept an offer of suitable employment.
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The CalFresh E &T program delivers employment and training
services to people who receive CalFresh benefits, but are not
on the California Work Opportunity and Responsibility to Kids
program (CalWORKs), the state's temporary financial assistance
and employment services program for families with children.
The SNAP Employment and Training program, known as CalFresh E
& T in California, is administered by the United States
Department of Agriculture's Food and Nutrition Service, DSS,
and participating counties. Funding is intended to help
participants acquire skills to exit CalFresh or to fulfill
federal work requirements that are necessary to continue
receiving benefits. However, not all counties participate in
CalFresh E &T and not all CalFresh E &T programs are the same,
or apply the same rules. In California, 25 counties currently
participate in the CalFresh E &T program.
3)Federal Work Requirement Waiver . Unless exempt, federal law
requires that after three months ABAWD participants receiving
food stamps participate in a work activity for at least 20
hours per week in order to maintain their eligibility for food
stamps. The American Recovery and Reinvestment Act of 2009
suspended the work requirement until September 30, 2010. In
addition, areas with high unemployment can apply for a federal
waiver of the work requirements. California has been granted
a waiver for the entire state until October 1, 2012.
4)Related Legislation . SB 1322 (Liu) 2010, which was
substantially similar to this bill, was vetoed. In his veto
message, Gov. Schwarzenegger wrote, "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."
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081