BILL ANALYSIS
SB 2013
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Date of Hearing: July 5, 2000
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
SB 2013 (Committee on Health and Human Services) - As Amended:
June 21, 2000
Policy Committee: Human
ServicesVote:6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Department of Social Services
(CDSS) to develop and implement a simpler, shorter application
form for nonassistance food stamp (NAFS) cases. Specifically,
this bill:
1)Requires CDSS to work with stakeholder groups in developing
the form, evaluate using the form for Medi-Cal and CalWORKS
applications, and seek any necessary federal approvals to
implement the form.
2)Requires CDSS to permit a county sufficient time to reprogram
its automated system before requiring the county to implement
the simplified form.
3)Requires CDSS to report to the Legislature by July 1, 2001, on
implementation of the simplified form.
FISCAL EFFECT
1)Minor absorbable costs to CDSS to develop the simplified
application form. CDSS has already begun to meet with
stakeholder groups on this effort.
2)Unknown reimbursable one-time costs to counties, likely over
$200,000 (GF) spread over 2-4 fiscal years, to the extent the
new form requires reprogramming of county automated systems.
For many counties, however, these costs should be absorbable
within a larger effort that will be undertaken in the next 2-4
years to incorporate quarterly reporting for CalWORKS and food
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stamps, pursuant to AB 510 (Wright), Chapter 826, Statutes of
1999.
Under AB 510, a five-county demonstration project in Los Angeles
and four other counties will test switching from monthly to
quarterly reporting for CalWORKS and food stamps. These five
counties will be reprogramming their automated systems within
FY 2000-01 to change to a quarterly reporting system (costs
are included in the 2000 Budget Act). If the evaluation due
1/1/03 indicates quarterly reporting should be implemented
statewide, other counties will phase in implementation between
1/1/04 and 1/1/05.
Since this bill requires CDSS to allow counties sufficient time
to reprogram their automated systems to implement the new
form, the bulk of reprogramming costs in all likelihood will
be absorbable as part of the AB 510 reprogramming effort.
3)Unknown offsetting savings in county NAFS administrative
costs, likely over $500,000 (GF) annually, to the extent the
new form reduces county eligibility worker time to process
NAFS applications. Using FY 2000-01 projected caseloads and
costs, every 5 minutes in reduced eligibility worker time per
case will generate $511,000 GF savings annually ($1 million
total funds). This estimate is based on the FY 2000-01
average monthly NAFS caseload of 257,595 households, and
cost/hour for an NAFS worker of $47.62, assuming 50% state
sharing (i.e., all counties are assumed to be at their
maintenance of effort level for NAFS administrative costs).
4)No state fiscal impact from any new NAFS cases as a result of
the new form. The federal government pays 100% of the cost of
food stamp benefits.
COMMENTS
Purpose . According to the California Food Policy Advocates
(CFPA), the sponsor of this bill, California has historically
had one of the lowest rates of food stamp participation in the
country. The U.S. Department of Agriculture (USDA), which
administers the food stamp program, reported the state's 57%
participation rate in 1994 was the second lowest in the nation,
while more recent studies by CFPA indicate only 52% of eligible,
non-immigrant Californians received food stamps in 1998.
Supporters attribute the low rate of participation to cumbersome
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paperwork and administrative requirements, including the current
nine-page application form. The USDA found that individuals
must spend five hours and make at least two trips to the welfare
office to complete the food stamp application process.
This bill requires a shorter, simpler application form in order
to simplify the food stamp application process. Supporters note
other simplification efforts are underway for Healthy Families
and Medi-Cal. Moreover, other states have simplified their
forms: Texas uses a four-page, bilingual application form,
while Tennessee uses a two-page form for the food stamp, TANF,
and Medicaid programs.
Analysis Prepared by : Joyce Iseri / APPR. / (916) 319-2081