BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 1930
          Author:   Skinner (D), et al.
          Amended:  8/18/14 in Senate
          Vote:     21

           
           SENATE HUMAN SERVICES COMMITTEE  :  3-0, 6/10/14
          AYES:  Beall, DeSaulnier, Liu
          NO VOTE RECORDED:  Berryhill, Wyland

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  61-12, 5/23/14 - See last page for vote


           SUBJECT  :    CalFresh:  student eligibility

           SOURCE  :     Coalition of California Welfare Rights Organizations  

                      Western Center on Law and Poverty


           DIGEST  :    This bill provides that, for the purposes of  
          determining eligibility, certain educational programs, as  
          determined by the Department of Social Services (DSS), shall be  
          considered employment training programs, thereby qualifying a  
          student participating in one of those programs for an exemption  
          to the prohibition on enrollment into the Supplemental Nutrition  
          Assistance Program (SNAP), unless prohibited by federal law.   
          This bill also requires the DSS, in consultation with  
          representatives from other specified organizations, to establish  
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          a protocol to identify and verify all potential exemptions and  
          participation in educational programs that qualify a student for  
          an exemption.  This bill also requires DSS to seek and obtain  
          federal approval, as specified, prior to publishing guidance or  
          regulation, if the United States Department of Agriculture  
          (USDA) requires federal approval.

           ANALYSIS  :    Existing law:

          1.Establishes under federal law, SNAP, to promote the general  
            welfare and to safeguard the health and wellbeing of the  
            nation's population by raising the levels of nutrition among  
            low-income households. 

          2.Establishes in California statute the CalFresh program to  
            administer the provision of federal SNAP benefits to families  
            and individuals meeting specified criteria. 

          3.Establishes, under federal law, eligibility requirements for  
            receipt of SNAP benefits, including income that is at or below  
            130% of the federal poverty level and is determined to be a  
            substantial limiting factor in permitting a recipient to  
            obtain a more nutritious diet, as specified. 

          4.Prohibits an individual who is enrolled at least half-time in  
            an institution of higher education from eligibility in the  
            federal Food Stamp Program unless the individual qualifies for  
            one of the specified exemptions.  

          5.Establishes the CalFresh Employment and Training program  
            (CalFresh E&T), as authorized by the federal Food and  
            Nutrition Act of 2008, to assist members of CalFresh  
            households in gaining skills, training, work, or experience  
            that will increase their ability to obtain regular employment.

          6.Requires that a California county that elects to participate  
            in CalFresh E&T shall screen CalFresh work registrants to  
            determine whether they will participate in, or be deferred  
            from, the program.  Requires that an individual be deferred  
            from a mandatory placement in the CalFresh E&T program for a  
            number of specified reasons, including residence in a  
            federally determined work surplus area.

          This bill:

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          1.Requires an educational program that could be a component of a  
            CalFresh E&T program identified by DSS, to be considered an  
            E&T program, unless prohibited by federal law.

          2.Requires DSS, in consultation with representatives of the  
            office of the Chancellor of the California Community Colleges,  
            offices of the Chancellor of the California State University,  
            University of California Chancellors' offices, the California  
            Workforce Investment Board, county human services agencies,  
            and advocates for students and clients, to establish a  
            protocol to identify and verify all potential exemptions to  
            the eligibility rule, as defined, and to identify and verify  
            participation in educational programs, including, but not  
            limited to, self-initiated placements, that exempt a student  
            from the eligibility rule. Requires, to the extent possible,  
            this consultation to take place through existing workgroups  
            convened by DSS.

          3.Specifies that if the USDA requires federal approval of the  
            exemption designation established pursuant to these  
            provisions, DSS is required to seek and obtain that approval  
            before publishing guidance or regulation.  

          4.Specifies that these provisions do not require a county human  
            services agency to offer a particular component, support  
            services, or worker's compensation to a student found eligible  
            for an exemption nor does it restrict or require the use of  
            federal funds for the financing of CalFresh E&T programs.  
            Further specifies that these provisions do not require a  
            college or university to provide a student with information  
            necessary to verify eligibility for CalFresh.

          5.Requires DSS to implement these provisions by all-county  
            letters or similar instructions beginning no later than  
            October 1, 2015, until regulations are adopted and requires  
            DSS to adopt regulations implementing these provisions on or  
            before October 1, 2017.

           Background

          Food Insecurity  .  Nationally, the USDA reported an estimated  
          14.5% of American households were food insecure at least some  
          time during the year in 2012, meaning they lacked access to  

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          enough food for an active, healthy life for all household  
          members.  During the last decade, and especially during the  
          Great Recession, the number of families experiencing food  
          insecurity has increased. 

           CalFresh  .  The USDA's SNAP funds 100% of food benefits to  
          eligible households nationwide.  The state, counties and federal  
          government share the cost of administering the program, which in  
          California is known as CalFresh. Specific eligibility  
          requirements are set by the USDA, including gross- and  
          net-income asset tests for most recipients, work requirements  
          and specific documentation requirements.  The maximum gross  
          income allowed to be eligible is 130% of the federal poverty  
          level, or $23,850 for a family of four in 2014.  The average  
          monthly benefit for a CalFresh recipient is $153.13 per month,  
          or $5.10 per day. 

          Since 2001, the overall CalFresh caseload has grown steadily,  
          including an increase of more than one million people between  
          2010 and 2013, at the peak of the Great Recession.  Nonetheless,  
          California has been ranked last in the country for years in SNAP  
          participation rates, prompting concerns from the USDA, stories  
          in the state's newspapers and two Legislative hearings in 2014,  
          including a joint Senate and Assembly Human Services committee  
          hearing on March 11.  Just 57% of eligible individuals were  
          enrolled in the program, compared to a national average of 79%  
          in 2011.  Just 44% of California's eligible working poor  
          families received CalFresh benefits, compared to a national  
          average of 67%.  DSS notes that low CalFresh participation  
          significantly impacts California's economy since every $5 of  
          federal SNAP benefits are calculated to generate $9 of local  
          economic activity.

           Prior Legislature
           
          SB 43 (Liu, Chapter 507, Statutes of 2011) permitted counties to  
          defer able-bodied working adults from required employment and  
          training participation in high unemployment areas, as specified.

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

          According to the Senate Appropriations Committee:


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           Potentially moderate to significant one-time costs (General  
            Fund) for DSS to establish the screening protocol and identify  
            other programs eligible for exemption from the student  
            eligibility rule in consultation with various stakeholders.   
            To the extent the consultation takes place through existing  
            workgroups convened by DSS, this would serve to mitigate costs  
            to some degree.

           Potentially major non-reimbursable local costs in the millions  
            of dollars (Local) for county human services agencies to  
            consider all potential exemptions (which could include  
            screening students) utilizing the protocol established by DSS.  
             For every 100,000 students screened for all potential  
            exemptions assuming 15 minutes per screening would cost about  
            $1.4 million (General Fund). Over 186,000 students receive CSU  
            Pell grants.  As an indicator of possible need, there were 1.1  
            million students in California community colleges that  
            qualified for a fee waiver in the 2012-13 academic year.

           Potential ongoing increase in CalFresh and California Food  
            Assistance Program benefits and administration costs  
            (Federal/General Fund) to the extent the screening protocol  
            results in additional student eligibility for CalFresh. These  
            costs would be offset in part by the associated economic  
            benefit of sales tax revenue generated through the sale of  
            taxable items.

           SUPPORT  :   (Verified  8/18/14)

          Coalition of California Welfare Rights Organizations (co-source)  

          Western Center on Law and Poverty (co-source) 
          Alameda County Community Food Bank 
          California Catholic Conference of Bishops 
          California Food Policy Advocates 
          California Partnership 
          Hunger Action Los Angeles 
          National Association of Social Workers, California Chapter
          St. Anthony Foundation
          Western Center on Law and Poverty


           ASSEMBLY FLOOR  :  61-12, 5/23/14
          AYES:  Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonta,  

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            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Cooley, Dababneh, Dahle, Daly, Dickinson, Eggman,  
            Fong, Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Hagman, Hall, Jones-Sawyer, Levine, Linder,  
            Lowenthal, Maienschein, Medina, Mullin, Muratsuchi, Nazarian,  
            Olsen, Pan, Perea, John A. P�rez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NOES:  Allen, Bigelow, Ch�vez, Conway, Donnelly, Beth Gaines,  
            Grove, Jones, Logue, Mansoor, Melendez, Patterson
          NO VOTE RECORDED:  Bonilla, Harkey, Roger Hern�ndez, Holden,  
            Nestande, V. Manuel P�rez, Vacancy


          JL:nl  8/18/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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