BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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                              UNFINISHED BUSINESS
                                        

          Bill No:  SB 2013
          Author:   Senate Health and Human Services Committee, et al
          Amended:  6/21/00
          Vote:     21

            
           SENATE HEALTH & HUMAN SERV. COMMITTEE  :  7-0, 4/5/00
          AYES:  Escutia, Haynes, Figueroa, Mountjoy, Polanco, Solis,  
            Vasconcellos

           SENATE APPROPRIATIONS COMMITTEE  :  7-1, 5/1/00
          AYES:  Johnston, Alpert, Bowen, Karnette, McPherson,  
            Perata, Vasconcellos
          NOES:  Kelley

           SENATE FLOOR  :  38-1, 5/18/00
          AYES:  Alarcon, Alpert, Bowen, Brulte, Burton, Chesbro,  
            Costa, Dunn, Escutia, Figueroa, Hayden, Haynes, Hughes,  
            Johannessen, Johnston, Karnette, Kelley, Knight, Leslie,  
            Lewis, McPherson, Monteith, Mountjoy, Murray, O'Connell,  
            Ortiz, Peace, Perata, Polanco, Poochigian, Rainey,  
            Schiff, Sher, Solis, Soto, Speier, Vasconcellos, Wright

           ASSEMBLY FLOOR  :  61-5, 8/10/00 - See last page for vote
           

           SUBJECT  :    Food Stamp Program:  application form

           SOURCE  :     California Food Policy Advocates

           
           DIGEST  :    This bill requires the State Department of  
          Social Services to develop and implement simplified and  
          shortened application forms for the Food Stamp Program.
                                                           CONTINUED





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           Assembly Amendments:  

          1.Specify that the simplified and shorter application form  
            is for nonassistance food stamp cases.

          2.Require DSS to permit a county sufficient time to  
            reprogram its automated system before requiring the  
            county to implement the simplified form.

          3.Requires DSS to report to the Legislature by July 1,  
            2001, on implementation of the simplified form.

           ANALYSIS  :    Currently, the Food Stamp Program application  
          consists of two parts.  The first part is a simplified form  
          to gather information to process expedited food stamp  
          services for those who need food stamps immediately.  The  
          second form is a longer form with questions necessary for  
          the county welfare department to determine food stamp  
          eligibility.  In addition to these two forms, which are  
          used for food stamp applicants only, multi-program forms  
          have been developed and are currently in use, which include  
          the CalWORKS, food stamp and Medi-Cal programs.

          This bill:

          1.Requires DSS 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 DSS to permit a county sufficient time to  
            reprogram its automated system before requiring the  
            county to implement the simplified form.

          3.Requires DSS to report to the Legislature by July 1,  
            2001, on implementation of the simplified form.

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

          1.Minor absorbable costs to CDSS to develop the simplified  
            application form.  CDSS has already begun to meet with  
            stakeholder groups on this effort.







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          2.Unknown reimbursable one-time costs to counties, likely  
            over $200,000 from the State General Fund spread over two  
            to four 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 two to four years to incorporate quarterly reporting  
            for CalWORKS and food 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 Fiscal Year 2000-01 to change to  
            a quarterly reporting system (costs are included in the  
            2000 Budget Act).  If the evaluation due January 1, 2003,  
            indicates quarterly reporting should be implemented  
            statewide, other counties will phase in implementation  
            between January 1, 2004, and January 1, 2005.

            Since this bill requires DSS 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 (State General Fund)  
            annually, to the extent the new form reduces county  
            eligibility worker time to process NAFS applications.   
            Using Fiscal Year 2000-01 projected caseloads and costs,  
            every five minutes in reduced eligibility worker time per  
            case will generate $511,000 General Fund savings annually  
            ($1 million total funds).  This estimate is 257,595  
            households, and cost-hour for an NAFS worker of $47.62,  
            assuming 50 percent sate 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 news NAFS cases as a  
            result of the new form.  The federal government pays 100  
            percent of the cost of food stamp benefits.







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           SUPPORT  :   (Verified  8/11/00)

          California Food Policy Advocates (source)
          Santa Clara County Board of Supervisors
          Western Center on Law and Poverty
          California Church IMPACT
          California Immigrant Welfare Collaborative
          Jericho
          California Catholic Conference
          California Dietetic Association

           OPPOSITION  :    (Verified  8/11/00)

          State Department of Finance

           ARGUMENTS IN SUPPORT  :    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 percent  
          participation rate in 1994 was the second lowest in the  
          nation, while more recent studies by CFPA indicate only 52  
          percent of eligible, non-immigrant Californians received  
          food stamps in 1998.  Supporters attribute the low rate of  
          participation to cumbersome 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 fore the food stamp, TANF, and Medicaid programs.

           ARGUMENTS IN OPPOSITION  :    The State Department of Finance  
          is opposed to this bill for the following reasons:

          1.There would be unknown, but presumably significant, costs  







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            associated with the implementation of a new form as it  
            would require the reprogramming of the current data  
            systems to capture significant program data elements at  
            the state and county levels.  County consortia systems  
            are presently designed in accordance with current  
            application forms.  The costs of conducting the required  
            automated system reprogramming at the county level would  
            be borne by the State General Fund and Federal Trust  
            Fund.  
           2.The DSS reports a need for at least two new Associate  
            Governmental Program Analysts at a cost of approximately  
            $140,000 ($105,000 General Fund; $35,000 Federal Trust  
            Fund) due to increased workload associated with this  
            bill.  We note that the provision of any new positions  
            due to increased workload associated with this bill would  
            be subject to the normal budget process.

           ASSEMBLY FLOOR  
          AYES:  Aanestad, Alquist, Aroner, Ashburn, Bates, Baugh,  
            Bock, Brewer, Briggs, Calderon, Campbell, Cardenas,  
            Cardoza, Cedillo, Corbett, Correa, Cox, Cunneen, Davis,  
            Dickerson, Ducheny, Dutra, Florez, Floyd, Gallegos,  
            Jackson, Keeley, Kuehl, Leach, Lempert, Leonard,  
            Longville, Lowenthal, Machado, Maddox, Margett, Mazzoni,  
            Migden, Nakano, Robert Pacheco, Rod Pacheco, Papan,  
            Pescetti, Reyes, Romero, Scott, Shelley, Steinberg,  
            Strom-Martin, Thomson, Torlakson, Villaraigosa, Vincent,  
            Washington, Wayne, Wesson, Wiggins, Wildman, Wright,  
            Zettel, Hertzberg
          NOES:  Ackerman, Havice, House, McClintock, Olberg


          CP:kb  8/11/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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