BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2115 (Bradford) - CalFresh: information to applicants.
          
          Amended: August 4, 2014         Policy Vote: Human Services 4-0
          Urgency: No                     Mandate: Yes
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 2115 would require county human service  
          agencies to provide additional information to CalFresh  
          applicants, as follows:
                 Requires a county human services agency to provide  
               CalFresh applicants that have children with information  
               about how to enroll the children in the Special  
               Supplemental Nutrition Program for Women, Infants, and  
               Children (WIC Program) and the National School Lunch and  
               School Breakfast Programs (NSLP/SBP) while the CalFresh  
               application is pending.
                 Requires a county human services agency to inform the  
               applicant that if the household is certified for CalFresh,  
               children under five years of age are income-eligible for  
               the WIC Program and all children are directly certified for  
               the NSLP/SBP.     
                 Requires additional providers to be added to the list of  
               food assistance providers currently compiled by county  
               human services agencies.
                 Requires the list to be updated based on information a  
               county human services agency receives from various entities  
               including the WIC Program, the Department of Education  
               (CDE), cities, school districts, and summer lunch  
               providers, and requires the list to be made available to  
               all households applying for CalFresh benefits, rather than  
               only upon request.
          
          Fiscal Impact: 
              Potentially significant ongoing state-reimbursable county  
              administrative costs (General Fund) to inform and provide  
              information to CalFresh applicants that have children with  
              information on eligibility and enrollment in specified  
              programs. Based on nearly 2 million CalFresh applications  








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              received annually, assuming 75 percent of applicants have  
              children in the household, providing an additional five  
              minutes of eligibility worker time would cost over $7  
              million annually. This estimate assumes many counties  
              utilize the option of waiving the face-to-face interview and  
              instead provide a telephone interview in which the  
              information would have to be explained verbally in lieu of  
              providing information on a written document. To the extent a  
              document is mailed in lieu of information provided over the  
              phone would also incur administrative resources and mailing  
              costs. 
              Likely minor state-reimbursable local costs (General Fund)  
              to add providers to, and update, food provider lists. 
              Potentially significant increase in federal WIC Program  
              (Federal) and NSLP/SBP (Federal/State) benefits to the  
              extent the mandated county efforts result in increased  
              enrollment in these programs. 

          Background: Existing state law requires each county welfare  
          department to compile a list of emergency food providers in the  
          area served by the local CalFresh office. Existing law requires  
          this list to be made available upon request and may be used to  
          refer individuals to emergency food assistance sites. 

          The federal WIC Program seeks to serve low-income, nutritionally  
          at risk pregnant women, breastfeeding women, infants and  
          children up to their fifth birthday. WIC benefits include  
          supplemental nutritious foods, nutrition education and  
          counseling at WIC clinics, and screening and referrals to other  
          health, welfare, and social services. WIC is not an entitlement  
          program as Congress does not set aside funds to allow every  
          eligible individual to participate in the program. Rather, WIC  
          is a federal grant program for which Congress authorizes a  
          specific amount of funds each year for the program. The FFY 2014  
          grant to California of $1.2 billion includes $878 million for  
          food and $328 million for nutrition services and administration.  
          As of March 2013, the WIC Program served 8.6 million  
          participants and provided an average benefit of $42.57 per  
          month. Families who are eligible for SNAP (CalFresh in  
          California), Medi-Cal, or TANF benefits are automatically  
          income-eligible for WIC benefits.

          The NSLP is a federally assisted meal program operating in over  
          100,000 public and nonprofit private schools and residential  








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          care institutions. It provided nutritionally balanced, low-cost  
          or free lunches to more than 31 million children each school day  
          in 2012. In 1998, Congress expanded the NSLP to include  
          reimbursement for snacks served to children in after-school  
          educational and enrichment programs to include children through  
          18 years of age. The Food and Nutrition Service (FNS)  
          administers the program at the federal level. At the state  
          level, the NSLP is administered by CDE, which operates the  
          program through agreements with school food authorities. 

          The SBP provides cash assistance to states to operate nonprofit  
          breakfast programs in schools and residential childcare  
          institutions. The FNS administers the SBP at the federal level,  
          CDE administers the SBP at the state level, and local school  
          food authorities operate the program in schools. Most of the  
          support USDA provides to schools in the School Breakfast Program  
          comes in the form of a cash reimbursement for each breakfast  
          served. The current basic cash reimbursement rates (through June  
          30, 2014) for non-severe need are: Free breakfast-$1.58,  
          reduced-price breakfast-$1.28, paid breakfasts-$0.28. Schools  
          may qualify for higher "severe need" reimbursements if 40  
          percent or more of their lunches are served free or at a reduced  
          price in the second preceding year. 

          Existing federal law provides that any child who is eligible for  
          federal SNAP benefits (CalFresh benefits in California) is  
          automatically certified to receive free school meals without an  
          additional application (7 U.S.C. � 2020(u)(2)(A)).

          Proposed Law: This bill would require county human service  
          agencies to provide additional information to CalFresh  
          applicants, as follows:
                 Requires a county human services agency to provide  
               CalFresh applicants that have children with information  
               about how to enroll the children in the WIC Program and the  
               NSLP/SBP while the CalFresh application is pending.
                 Requires a county human services agency to inform the  
               applicant that if the household is certified for CalFresh,  
               children under five years of age are income-eligible for  
               the WIC Program and all children are directly certified for  
               the NSLP/SBP.     
                 Requires additional providers to be added to the list of  
               food assistance providers currently compiled by county  
               human services agencies.








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                 Requires the list to be updated based on information a  
               county human services agency receives from various entities  
               including the WIC Program, CDE, cities, school districts,  
               and summer lunch providers, and requires the list to be  
               made available to all households applying for CalFresh  
               benefits, rather than only upon request.
                 Provides that the bill's provisions shall be implemented  
               by all-county letter or similar instructions no later than  
               May 1, 2015, with regulations to be adopted no later than  
               October 1, 2017.

          Staff Comments: By increasing the duties of county human  
          services agencies, this bill imposes a state-mandated local  
          program, the costs of which could require a General Fund  
          subvention of funds should county agencies submit claims and the  
          Commission on State Mandates (CSM) determines the provisions of  
          this measure constitute a reimbursable state mandate.

          While some or most county human services agencies may already be  
          informing applicants and providing the information specified in  
          this bill, by mandating the activities specifically in statute,  
          county human service agencies could potentially file claims for  
          reimbursement for the administrative costs associated with  
          informing and providing information to all CalFresh applicants  
          with information on eligibility and enrollment in the WIC and  
          NSLSB Programs. 

          Based on the data from the CalFresh Monthly Caseload Movement  
          Report (DFA 296), nearly 2 million CalFresh applications are  
          received annually. Assuming 75 percent of applicants have  
          children in the household, providing an additional five minutes  
          (based on an estimated eligibility worker cost of $57.57 per  
          hour) of eligibility worker time would cost over $7 million  
          annually. This estimate assumes many counties utilize the option  
          of waiving the face-to-face interview and instead provide a  
          telephone interview in which the information would have to be  
          explained verbally in lieu of providing information on a written  
          document. To the extent a document is mailed in lieu of  
          information provided over the phone would also incur  
          administrative resources and mailing costs. Further, even the  
          provision of a written document to an applicant filing in person  
          could require additional time to verbally explain eligibility  
          and enrollment details.









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          The costs to counties to update and add providers to food  
          assistance provider lists, while potentially state-reimbursable,  
          are estimated to be minor.

          To the extent the mandated county efforts result in increased  
          enrollment in these food assistance programs, could result in a  
          significant increase in federal WIC Program (Federal) and NSLSB  
          Program (Federal/State) benefits which would assist families  
          access these critical programs aimed at reducing the incidence  
          of food insecurity among low-income Californians.