Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements or is otherwise exempt. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver.

This bill, for a county that elects to participate in CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would include job search training and job retention, among others, as CalFresh E&T components that a county may offer. The bill would require the department to adopt regulations by January 1, 2019.

This bill would incorporate additional changes to Section 18926.5 of the Welfare and Institutions Code proposed by SB 282 to be operative only if this bill and SB 282 are enacted and this bill is enacted last.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements or is otherwise exempt. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver.

This bill, for a county that elects to participate in CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would include job search training and job retention, among others, as CalFresh E&T components that a county may offer. The bill would require the department to adopt regulations by January 1, 2019.

This bill would incorporate additional changes to Section 18926.5 of the Welfare and Institutions Code proposed by SB 282 to be operative only if this bill and SB 282 are enacted and this bill is enacted last.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements or is otherwise exempt. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver.

This bill, for a county that elects to participate in CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would include job search training and job retention, among others, as CalFresh E&T components that a county may offer. The bill would authorize the department to implement these provisions by all-county letters or similar instructions, upon certification by the director that the department has sufficient funds to implement these provisions using federal funds or federal reimbursements to be received through CalFresh E&T, and would require the department to adopt regulations within one year of the date the certification is issued by January 1, 2019.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements. requirements or is otherwise exempt. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver unless the county declines to participate in the waiver request. waiver.

This bill, for a county that elects to participate in the CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would require the department to establish the Center for CalFresh Employment and Training Excellence to assist the state and counties to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program, as specified. The bill would require the center to serve as a statewide repository of information on effective CalFresh employment and training methodologies, including, but not limited to, curriculum, contracting templates, and outcomes research. The bill would require the center to work with the state, counties, and partner organizations to collect information, conduct research, and provide technical assistance to counties that wish to improve or implement CalFresh E&T programs. The bill would authorize the department to contract with a 3rd party to establish the center. include job search training and job retention, among others, as CalFresh E&T components that a county may offer. The bill would authorize the department to implement these provisions by all-county letters or similar instructions, upon certification by the director that the department has sufficient funds to implement these provisions using federal funds or federal reimbursements to be received through CalFresh E&T, and would require the department to adopt regulations within one year of the date the certification is issued.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver unless the county declines to participate in the waiver request.

This bill, for a county that elects to participate in the CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would authorize the department to prioritize the distribution of specified federal funding to voluntary programs that, among other things, are in areas of high unemployment. The bill would also require the State Department of Social Services require the department to establish the Center for CalFresh Employment and Training Excellence to assist the state and counties to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program, as specified. The bill would require the center to serve as a state statewide repository of information on effective CalFresh employment and training methodologies, including, but not limited to, curriculum, contracting templates, and outcomes research and to conduct research research. The bill would require the center to work with the state, counties, and partner organizations to collect information, conduct research, and provide technical assistance to counties that wish to implement outcome-based improve or implement CalFresh E&T programs. The bill would authorize the department to contract with a 3rd party to establish the center.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver unless the county declines to participate in the waiver request.

This bill, for a county that elects to participate in the CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would authorize the department to prioritize the distribution of specified federal funding to voluntary programs that, among other things, are in areas of high unemployment. The bill would also require, once funding has been appropriated in the annual Budget Act and upon certification by the State Department of Health Care Services, require the State Department of Social Services to establish the Center for CalFresh Employment and Training Excellence to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program, as specified. The bill would require the center to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research and to conduct research and provide technical assistance to counties that wish to implement outcome-based CalFresh E&T programs. The bill would authorize the department to contract with a 3rd party to establish the center.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires participating counties a participating county to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver unless the county declines to participate in the waiver request.

This bill, for a county that elects to participate in the CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would authorize the department to prioritize the distribution of specified federal funding to voluntary programs that, among other things, are in areas of high unemployment. The bill would also require, once funding has been appropriated in the annual Budget Act and upon certification by the State Department of Health Care Services, the State Department of Social Services to establish the Center for CalFresh Employment and Training Excellence with the purpose and mission of to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program, as specified. The bill would require the center to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research and to conduct research, training, and development relating to the CalFresh E&T program. research and provide technical assistance to counties that wish to implement outcome-based CalFresh E&T programs. The bill would authorize the department to contract with a 3rd party to establish the center.

Existing law authorizes counties to participate in the CalFresh Employment and Training program (CalFresh E&T), established by federal law, and requires participating counties to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the specified components that the county offers, including work experience or training and job search. Existing law, for a county that elects to participate in the CalFresh E&T, requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies various criteria, including, among others, residing in a federally determined work surplus area. Existing federal law limits a participant who is an able-bodied adult without dependents (ABAWD) to 3 months of CalFresh benefits in a 3-year period unless that participant has met specified work participation requirements. Existing law directs the State Department of Social Services to annually seek a federal waiver of this limitation, and provides that an eligible county is included in this waiver unless the county declines to participate in the waiver request.

This bill, for a county that elects to participate in the CalFresh E&T, would prohibit a person who is subject to the able-bodied adult without dependents (ABAWD) time limit described above from mandatory placement in CalFresh E&T. The bill would authorize the department to prioritize the distribution of specified federal funding to voluntary programs that, among other things, are in areas of high unemployment. The bill would also require, once funding has been appropriated in the annual Budget Act and upon certification by the State Department of Health Care Services, the State Department of Social Services to establish the Center for CalFresh Employment and Training Excellence with the purpose and mission of ensuring every CalFresh recipient has access to a high-quality employment and training program, as specified. The bill would require the center to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research and to conduct research, training, and development relating to the CalFresh E&T program. The bill would authorize the department to contract with a 3rd party to establish the center.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 563

Author:(Arambula)

As Amended Ver:September 7, 2017

Majority vote

Original Committee Reference: HUM. S.

SUMMARY: Includes individuals subject to the able-bodied adult without dependents (ABAWD) time limit among those individuals who are deferred from mandatory participation in CalFresh Employment & Training (CFET) programs, expands the list of CFET components a county may offer and for which it is required to demonstrate the effective use of funds, and maintains the ability of DSS to enter into an agreement with an organization, institution, or agency to act as a state entity for receipt of federal Supplemental Nutrition Assistance Program (SNAP) Employment and Training (E&T) reimbursement, as specified.

Specifically, this bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh benefits.
2. Includes individuals subject to the ABAWD time limit among those individuals who are deferred from mandatory placement in CFET, as specified.
3. Expands the list of components a participating county may offer, and for which it is required to demonstrate in its CFET plan how funds are being used effectively, to include: job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs.
4. Clarifies that certain support services or client reimbursements necessary for participation in a county's CFET activities, as specified, are subject to state law and guidance, in addition to federal law and guidance as required by current law.
5. Maintains the ability of DSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of E&T reimbursement through federal SNAP on behalf of the organization, institution, or agency, as specified.
6. Requires DSS to adopt regulations to implement the section of law updated by provisions of this bill by January 1, 2019.
7. Makes amendments to avoid chaptering conflicts with SB 282.
8. Makes technical changes.

The Senate amendments:

1. Delete intent language related to CFET pilot projects throughout the state and their effects on increasing access to employment.
2. Delete language allowing DSS to prioritize the distribution of federal employment and training funding to voluntary programs in areas of high unemployment or to programs that serve certain individuals, including those impacted by the time limit on ABAWDs, adults no longer eligible to receive CalWORKs benefits, as specified, and adults reentering the community following a period of detention in jail or prison, foster youth, or disconnected youth.
3. Change the date by which DSS must adopt regulations to implement the section of law updated by provisions of this bill from October 1, 2019, to January 1, 2019.
4. Delete language requiring DSS to establish the Center for CalFresh Employment and Training Excellence, as specified, to serve as a state repository for information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research, and to conduct research and provide technical assistance to counties interested in implementing outcome-based CFET programs. Further, Delete language that allows DSS to contract with a third party in order to establish the center.
5. Make amendments to avoid chaptering conflicts with SB 282 (Wiener) of the current legislative session.
6. Make technical changes.

EXISTING LAW:

1. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (Welfare and Institutions Code (WIC) 18900 et seq.)
2. Establishes the Electronic Benefits Transfer (EBT) Act, and defines the EBT system as the program designed to provide benefits to those eligible to receive public assistance benefits such as CalWORKs and CalFresh. (WIC 10065 et seq.)
3. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities. (7 United States Code Section 2015(e)(3)(B))
4. Establishes within CalFresh the federal E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment. (7 CFR 273.7, WIC 18926.5)
5. Requires that a California county that elects to participate in CalFresh E&T screen CalFresh work registrants to determine whether they will participate in, or be deferred from, the program and further, 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. (WIC 18926)
6. Establishes the SNAP time limit for an able bodied adult without dependents (ABAWD), which states that an individual is limited to receive SNAP for up to three months within a three year period, unless the individual has met certain work participation requirements, as specified. (7 CFR 273.24)
7. Requires DSS annually, to the extent permitted by federal law, to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD, unless that participant has met the work participation requirement. (WIC 18926)

FISCAL EFFECT: According to the Senate Appropriations Committee on September 1, 2017, this bill may result in ongoing, likely minor costs to DSS to identify mechanisms to increase federal reimbursements for the program.

COMMENTS:

CalFresh: CalFresh benefits are funded entirely by the federal government through the Supplemental Nutrition Assistance Program (SNAP), and the USDA sets specific eligibility requirements for SNAP programs across the United States, including a gross and net income test, work requirements, and other documentation requirements. The maximum allowable gross income is 200% of the Federal Poverty Level (FPL). Households with elderly or disabled members are not subject to gross income criteria but must have a net monthly income at or below 100% of the FPL. Other households must meet both gross and net monthly income tests. CalFresh is administered locally by county human services agencies, and the federal, state, and county governments share in the cost of administration of the program.

Benefits are made available on a monthly basis for food purchase through an ATM-like electronic benefits transfer (EBT) card. However, unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn in cash at point-of-sale terminals or at ATM machines. CalFresh benefits can only be used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home and produce food. The average monthly benefit for a CalFresh recipient is $149.05 per month, or $4.96 per person per day.

Food Stamp Employment & Training Program (SNAP E&T)/CalFresh Employment & Training Program (CFET): In 1985, the Food Security Act created the Food Stamp Employment & Training Program, which is now known as SNAP E&T. The intent of the program is to help SNAP recipients gain the skills and experience necessary to enter the workforce and reduce dependency on public benefits. Federal law requires all states to offer SNAP E&T; in California this program is known as the CalFresh Employment & Training Program (CFET). Each year, DSS is required to submit the CFET program plan to the USDA Food and Nutrition Service (FNS) for approval. Upon approval, California is eligible for federal matching funds, and in federal fiscal year 2017, the federal government approved an allocation of 100% federal funds totaling $10,335,573.

Until recently, most California counties operated mandatory or combined mandatory and voluntary CFET programs, meaning some counties required mandatory participation in CFET for all CalFresh recipients, while other counties required mandatory participation for certain populations while allowing voluntary participation for other populations. However, by signing SB 43 (Liu), Chapter 507, Statutes of 2011 into law, California required counties that operate a CFET program to implement the program as voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average; as of February 2017, the national unemployment rate is 4.7%, compared to 5.1% unemployment in Los Angeles as of January 2017, 9.5% unemployment in Fresno as of December 2016, and 4.9% unemployment in Sacramento as of December 2016. Currently, all of California has been designated as a work surplus area by the federal government. However, that designation is expected to be retracted in 2018 such that counties that operate a CFET program may choose to make participation in the program mandatory; mandatory participation can only be prohibited through legislation. Currently, 33 counties in California offer voluntary CFET programs.

Able Bodied Adults Without Dependents (ABAWDs): SNAP rules require all recipients to meet work requirements unless they are exempt due to age, disability, or another specific reason. These individuals include ABAWDs, who are individuals between 18 and 49 years of age, and who have no dependents and are not disabled; ABAWDs are subject to a specific time limit in which they can only receive SNAP for three months in three years if they do not meet special work requirements. In order to be eligible beyond this time limit, ABAWDs must work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs are also able to satisfy these requirements by participating in a SNAP Employment and Training Program (in California's case, CFET).

California currently holds an ABAWD exemption through January 2018 which allows ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. In 2018, however, when the ABAWD waiver expires, these individuals will need to comply with federal work requirement rules or be subject to the time limit. Although federal work requirements may be satisfied by participation in a SNAP E&T/CFET program, California counties may choose whether or not to offer CFET programs, thereby making access to CFET in many counties difficult for ABWADs. California can therefore expect to see a large amount of CalFresh recipients go without benefits upon expiration of the ABAWD waiver in January 2018.

Need for this bill: According to the author's office, "Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result of unemployment and low wages, Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency. As a result, they experience hunger or are forced to rely on programs in the social public safety net. The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future.

[This bill] supports CalFresh recipients in securing employment and earnings that are enough for them to exit poverty. [This bill] will accomplish this by: removing the double penalty of unemployment for recipients subject to the Able Bodied Adult Without Dependents (ABAWD) time limit, establishing a CalFresh E&T Center for Excellence, and clarifying that the Department of Social Services may directly contract with E&T Providers.

We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty."

PRIOR LEGISLATION:

House Resolution (H.R.) 2642 (Lucas), Public Law 113-79, 2014, known as the Agriculture Reform and Risk Management Act of 2014, or Farm Bill, authorized nutrition and agriculture programs in the United States for the years of 2014-2018.

SB 43 (Liu), Chapter 507, Statutes of 2011, required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

H.R. 2100 (de la Garza), Public Law 99-198, 1985, created the Food Security Act of 1985 which created the Food Stamp Employment & Training Program, now known as SNAP E&T.

Analysis Prepared by: FN: 0002264

 THIRD READING  

Bill No: AB 563

Author:

: 9/7/17

Vote:

SENATE HUMAN SERVICES COMMITTEE: 5-0, 6/27/17

AYES: Wiener, Berryhill, Glazer, Newman, Nguyen

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 76-1, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Western Center on Law and Poverty

DIGEST:

This bill prohibits a person who is subject to the able-bodied adult without dependents (ABAWD) time limit from mandatory placement in CalFresh Employment and Training (E&T). This bill includes job search training and job retention, among others, as CalFresh E&T components that a county may offer. This bill authorizes the Department of Social Services (CDSS) to implement these provisions by all-county letters or similar instructions, upon certification that sufficient federal funds are available, as specified.

Senate Floor Amendments of 9/7/17 remove unnecessary language that provides funding instructions for provisions that were previously amended out of the bill. The amendments also address chaptering issues with SB 282 (Wiener), which also affects CalFresh E&T.

ANALYSIS:

Existing law:

1. Establishes in federal law the Supplemental Nutrition Assistance Program (SNAP) within the US Department of Agriculture (USDA) 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. It establishes SNAP eligibility requirements, including income that is at or below 130 percent of the federal poverty level and is determined to be a substantial limiting factor in permitting a recipient to obtain a more nutritious diet.
2. Establishes the federal E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment.
3. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities.
4. Establishes eligibility criteria for SNAP benefits, which may include participation in SNAP E&T, among other criteria.
5. Establishes a SNAP time limit for an able bodied adult without dependents (ABAWD) of up to three months within a three year period, unless the individual has met certain work participation requirements, as specified.
6. Permits the USDA to waive the applicability of the three-month time limit for ABAWDs if the unemployment rate in which the ABAWD resides is 10 percent or higher.
7. Establishes in California statute the CalFresh program to administer the provisions of federal SNAP benefits to low-income families and individuals meeting specified criteria.
8. Establishes the CalFresh E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment.
9. Requires CDSS to ensure that all recipients subject to the federal ABAWD time limit, as specified, are permitted to meet the work requirements of the time limit through all forms of work, including, but not limited to, volunteer work at a nonprofit organization or a public institution if the county can verify the hours of participation, as specified.
10. Exempts ABAWDS who are homeless from the federal ABAWD time limit.
11. Requires CDSS annually to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD participant, unless that participant has met the work participation requirement or is otherwise exempt, to the extent permitted by federal law. Further requires that all eligible counties shall be included in and bound by the waiver.
12. Permits a county that is not eligible for a countywide waiver to request that CDSS apply for the waiver for one or more eligible subareas of the county. Requires CDSS to seek the subarea waiver within a reasonable time frame following a request made by a county, and may seek any necessary information from the county to support the waiver request.
13. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how funds are being used effectively for self-initiated workfare, work experience or training, education and job search.
14. Requires a county that participates in the CalFresh E&T program to screen CalFresh applicants to determine whether they will participate in, or be deferred from, CalFresh E&T. Requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of the federal SNAP eligibility criteria, as specified, resides in a federally determined work surplus area, is a veteran who has been honorably discharged from the United States Armed Forces, or is a victim of domestic violence.

This bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh E&T.
2. Adds individuals subject to the ABAWD time limit to those who are deferred from mandatory placement in CalFresh E&T, as specified.
3. Adds to the requirements a county participating in CalFresh E&T may be asked to demonstrate in its CalFresh E&T plan the activities of job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs.
4. Maintains the ability of CDSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of CalFresh E&T reimbursement through the federal SNAP on behalf of the organization, institution, or agency, as specified.
5. Permits CDSS to implement the provisions of this bill relating to CalFresh E&T programs through all-county letters or similar instructions upon certification by the director that CDSS has sufficient federal funds or federal reimbursements to be received through its CalFresh E&T program. Requires that regulations to implement the bill must be adopted within a year of the date that certification.
6. Permits CDSS, in order to increase the amount of federal reimbursement the state receives through its CalFresh Employment and Training program, to attempt to identify E&T programs serving, or that could serve, CalFresh recipients and may document CalFresh E&T program state share expenditures eligible for federal reimbursements. Programs considered by CDSS may include, but are not limited to, those funded through the 2011 Realignment Legislation and the Strong Workforce Program.
7. Requires CDSS to adopt regulations to implement this bill by January 1, 2019.
8. Incorporates changes to Section 18926.5 of the Welfare and Institutions Code proposed by SB 282 to be operative only if this bill and SB 282 are enacted and this bill is enacted last.

Background

Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result, according to the author, “Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency.”

Per the author, “The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future…We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty.”

According to the official poverty measure, nearly 6 million (15.3 percent) Californians lived in poverty in 2015. According to the supplemental poverty measure, a more refined measure that takes into account cost of food, clothing and shelter and utilities and other factors, 8 million (20.6 percent) Californians lived in poverty in 2015. Using a slightly different methodology, the Public Policy Institute of California (PPIC) placed the statewide poverty rate at 22 percent. The same PPIC report indicates that 19 percent of adults over 65 years of age were living in poverty. PPIC also estimates that 2.3 million children are poor in California, and an additional 1.3 million would be considered poor were it not for social safety net resources utilized by their families.

CalFresh

The CalFresh program provides qualified low-income households with electronic benefit transfer (EBT) cards which are used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home to produce food. CalFresh is California’s version of the federal SNAP program. CalFresh benefits are 100 percent federally funded and national eligibility standards and benefit levels are established by the federal government. The program is administered by the CDSS at the state level. California’s 58 counties are responsible for administering the program at the local level.

To participate in CalFresh, households must meet income-eligibility standards. Depending on the households’ circumstances, the maximum gross income limit ranges between 100 and 200 percent of the federal poverty level (FPL). For most households, monthly gross income must be at or below 200 percent of FPL, which is $3,360 for a family of three. CalFresh benefit levels are based on the household size and income after certain deductions. The average monthly CalFresh benefit in FY 2016-17 is $293 per household and $140 per person.

CalFresh Employment and Training Program

In 1985, the Food Security Act created the Food Stamp Employment & Training Program, now known nationally as SNAP E&T, to help SNAP recipients gain the skills and experience needed to enter the workforce and reduce dependency on public benefits. All states are required by federal law to offer SNAP E&T. In California, this program is called the CalFresh E&T.

While it is mandatory for California to have an E&T program, counties have the discretion as to whether or not they choose to have one. According to CDSS, 34 counties currently operate CalFresh E&T programs, and an additional two counties are projected to join in 2018. Counties that operate a CalFresh E&T program are required to make the program voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average.

Able Bodied Adults Without Dependents (ABAWDs)

Under SNAP rules, all recipients must meet work requirements unless they are exempt due to age, disability, or another specific reason. There are special rules that apply to ABAWDs, who are between 18 and 49 years of age, have no dependents and are not disabled. ABAWDs can only receive CalFresh benefits for three months in three years unless they work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs also can satisfy these requirements by participating in CalFresh E&T. Recent changes state law also permit ABAWDS to meet work requirements through volunteer work, as specified, and exempt a recipient who is homeless from the federal ABAWD time limit.

Due to high unemployment rates, California has been designated a work surplus area and therefore, has been operating with a waiver to the ABAWD time limit since 2008. This has allowed ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. The waiver is set to expire in on August 31, 2018.

Absent another statewide or county-specific waiver, ABAWDs who are not otherwise exempt will need to comply with federal work requirement rules or they will be subject to the three month within three years limit on food benefits. This bill defers ABWADs from mandatory E&T.

Related/Prior Legislation

SB 43 (Liu, Chapter 507, Statutes of 2011) required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, ongoing, likely minor costs to the CDSS to identify mechanisms to increase federal reimbursements for the program.

SUPPORT: (Verified 9/11/17)

Western Center on Law and Poverty (source)

Alameda County Food Bank

Andreas Borgeas - Fresno County Board of Supervisors

California Association of Food Banks

California Catholic Conference

California Food Policy Advocates

California Women’s Law Center

Courage Campaign

Feeding San Diego

Luis Chavez, Councilmember for District 5, City of Fresno

National Association of Social Workers- California Chapter

Women’s Foundation of California

OPPOSITION: (Verified 9/11/17)

Department of Finance

ARGUMENTS IN SUPPORT: The sponsor of this bill, Western Center on Law and Poverty, writes, “In order to ensure that some of the most destitute CalFresh recipients, ABAWDs, are not double penalized by unemployment and less likely to experience hunger while job searching, AB 563 would add to the list of people exempt from mandatory CFET (CalFresh E&T), though they would be eligible to participate voluntarily and doing so would be encouraged because it might help them to meet the ABAWD time limit work rule.”

ARGUMENTS IN OPPOSITION: The Department of Finance (DOF) estimates that the cost to create and administer a Center for CalFresh Employment and Training Excellence, as proposed in the July 21, 2017 version of this bill, would be between $3 million and $5 million. Based on those estimates, DOF wrote the following in opposition to the bill, “Finance opposes this bill because it results in increased General Fund costs, thereby placing significant pressure on the state’s budget, which remains precariously balanced after paying for existing obligations.” However, AB 563 was amended on September 1, 2017 to remove the language that would have created the CalFresh Employment and Training Center for Excellence.

ASSEMBLY FLOOR: 76-1, 5/31/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Travis Allen

NO VOTE RECORDED: Choi, Eggman, Melendez

Prepared by:

9/11/17 12:32:20

**** END ****

 THIRD READING  

Bill No: AB 563

Author:

: 9/1/17

Vote:

SENATE HUMAN SERVICES COMMITTEE: 5-0, 6/27/17

AYES: Wiener, Berryhill, Glazer, Newman, Nguyen

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 76-1, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Western Center on Law and Poverty

DIGEST:

This bill prohibits a person who is subject to the able-bodied adult without dependents (ABAWD) time limit from mandatory placement in CalFresh Employment and Training (E&T). This bill includes job search training and job retention, among others, as CalFresh E&T components that a county may offer. This bill authorizes the Department of Social Services (CDSS) to implement these provisions by all-county letters or similar instructions, upon certification that sufficient federal funds are available, as specified.

ANALYSIS:

Existing law:

1. Establishes in federal law the Supplemental Nutrition Assistance Program (SNAP) within the US Department of Agriculture (USDA) 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. It establishes SNAP eligibility requirements, including income that is at or below 130 percent of the federal poverty level and is determined to be a substantial limiting factor in permitting a recipient to obtain a more nutritious diet.
2. Establishes the federal E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment.
3. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities.
4. Establishes eligibility criteria for SNAP benefits, which may include participation in SNAP E&T, among other criteria.
5. Establishes a SNAP time limit for an able bodied adult without dependents (ABAWD) of up to three months within a three year period, unless the individual has met certain work participation requirements, as specified.
6. Permits the USDA to waive the applicability of the three-month time limit for ABAWDs if the unemployment rate in which the ABAWD resides is 10 percent or higher.
7. Establishes in California statute the CalFresh program to administer the provisions of federal SNAP benefits to low-income families and individuals meeting specified criteria.
8. Establishes the CalFresh E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment.
9. Requires CDSS to ensure that all recipients subject to the federal ABAWD time limit, as specified, are permitted to meet the work requirements of the time limit through all forms of work, including, but not limited to, volunteer work at a nonprofit organization or a public institution if the county can verify the hours of participation, as specified.
10. Exempts ABAWDS who are homeless from the federal ABAWD time limit.
11. Requires CDSS annually to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD participant, unless that participant has met the work participation requirement or is otherwise exempt, to the extent permitted by federal law. Further requires that all eligible counties shall be included in and bound by the waiver.
12. Permits a county that is not eligible for a countywide waiver to request that CDSS apply for the waiver for one or more eligible subareas of the county. Requires CDSS to seek the subarea waiver within a reasonable time frame following a request made by a county, and may seek any necessary information from the county to support the waiver request.
13. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how funds are being used effectively for self-initiated workfare, work experience or training, education and job search.
14. Requires a county that participates in the CalFresh E&T program to screen CalFresh applicants to determine whether they will participate in, or be deferred from, CalFresh E&T. Requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of the federal SNAP eligibility criteria, as specified, resides in a federally determined work surplus area, is a veteran who has been honorably discharged from the United States Armed Forces, or is a victim of domestic violence.

This bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh E&T.
2. Adds individuals subject to the ABAWD time limit to those who are deferred from mandatory placement in CalFresh E&T, as specified.
3. Adds to the requirements a county participating in CalFresh E&T may be asked to demonstrate in its CalFresh E&T plan the activities of job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs.
4. Maintains the ability of CDSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of CalFresh E&T reimbursement through the federal SNAP on behalf of the organization, institution, or agency, as specified.
5. Permits CDSS to implement the provisions of this bill relating to CalFresh E&T programs through all-county letters or similar instructions upon certification by the director that CDSS has sufficient federal funds or federal reimbursements to be received through its CalFresh E&T program. Requires that regulations to implement the bill must be adopted within a year of the date that certification.
6. Permits CDSS, in order to increase the amount of federal reimbursement the state receives through its CalFresh Employment and Training program, to attempt to identify E&T programs serving, or that could serve, CalFresh recipients and may document CalFresh E&T program state share expenditures eligible for federal reimbursements. Programs considered by CDSS may include, but are not limited to, those funded through the 2011 Realignment Legislation and the Strong Workforce Program.
7. Requires CDSS to adopt regulations to implement this bill within one year of the date the certification is issued, and makes additional technical changes.

Background

Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result, according to the author, “Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency.”

Per the author, “The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future…We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty.”

According to the official poverty measure, nearly 6 million (15.3 percent) Californians lived in poverty in 2015. According to the supplemental poverty measure, a more refined measure that takes into account cost of food, clothing and shelter and utilities and other factors, 8 million (20.6 percent) Californians lived in poverty in 2015. Using a slightly different methodology, the Public Policy Institute of California (PPIC) placed the statewide poverty rate at 22 percent. The same PPIC report indicates that 19 percent of adults over 65 years of age were living in poverty. PPIC also estimates that 2.3 million children are poor in California, and an additional 1.3 million would be considered poor were it not for social safety net resources utilized by their families.

CalFresh

The CalFresh program provides qualified low-income households with electronic benefit transfer (EBT) cards which are used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home to produce food. CalFresh is California’s version of the federal SNAP program. CalFresh benefits are 100 percent federally funded and national eligibility standards and benefit levels are established by the federal government. The program is administered by the CDSS at the state level. California’s 58 counties are responsible for administering the program at the local level.

To participate in CalFresh, households must meet income-eligibility standards. Depending on the households’ circumstances, the maximum gross income limit ranges between 100 and 200 percent of the federal poverty level (FPL). For most households, monthly gross income must be at or below 200 percent of FPL, which is $3,360 for a family of three. CalFresh benefit levels are based on the household size and income after certain deductions. The average monthly CalFresh benefit in FY 2016-17 is $293 per household and $140 per person.

CalFresh Employment and Training Program

In 1985, the Food Security Act created the Food Stamp Employment & Training Program, now known nationally as SNAP E&T, to help SNAP recipients gain the skills and experience needed to enter the workforce and reduce dependency on public benefits. All states are required by federal law to offer SNAP E&T. In California, this program is called the CalFresh E&T.

While it is mandatory for California to have an E&T program, counties have the discretion as to whether or not they choose to have one. According to CDSS, 34 counties currently operate CalFresh E&T programs, and an additional two counties are projected to join in 2018. Counties that operate a CalFresh E&T program are required to make the program voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average.

Able Bodied Adults Without Dependents (ABAWDs)

Under SNAP rules, all recipients must meet work requirements unless they are exempt due to age, disability, or another specific reason. There are special rules that apply to ABAWDs, who are between 18 and 49 years of age, have no dependents and are not disabled. ABAWDs can only receive CalFresh benefits for three months in three years unless they work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs also can satisfy these requirements by participating in CalFresh E&T. Recent changes state law also permit ABAWDS to meet work requirements through volunteer work, as specified, and exempt a recipient who is homeless from the federal ABAWD time limit.

Due to high unemployment rates, California has been designated a work surplus area and therefore, has been operating with a waiver to the ABAWD time limit since 2008. This has allowed ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. The waiver is set to expire in on August 31, 2018.

Absent another statewide or county-specific waiver, ABAWDs who are not otherwise exempt will need to comply with federal work requirement rules or they will be subject to the three month within three years limit on food benefits. This bill defers ABWADs from mandatory E&T.

Related/Prior Legislation

SB 43 (Liu, Chapter 507, Statutes of 2011) required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, ongoing, likely minor costs to the CDSS to identify mechanisms to increase federal reimbursements for the program.

SUPPORT: (Verified 8/28/17)

Western Center on Law and Poverty (source)

Alameda County Food Bank

Andreas Borgeas - Fresno County Board of Supervisors

California Association of Food Banks

California Catholic Conference

California Food Policy Advocates

California Women’s Law Center

Courage Campaign

Feeding San Diego

Luis Chavez, Councilmember for District 5, City of Fresno

National Association of Social Workers- California Chapter

Women’s Foundation of California

OPPOSITION: (Verified 8/28/17)

Department of Finance

ARGUMENTS IN SUPPORT: The sponsor of this bill, Western Center on Law and Poverty, writes, “In order to ensure that some of the most destitute CalFresh recipients, ABAWDs, are not double penalized by unemployment and less likely to experience hunger while job searching, AB 563 would add to the list of people exempt from mandatory CFET (CalFresh E&T), though they would be eligible to participate voluntarily and doing so would be encouraged because it might help them to meet the ABAWD time limit work rule.”

ARGUMENTS IN OPPOSITION: The Department of Finance (DOF) estimates that the cost to create and administer a Center for CalFresh Employment and Training Excellence, as proposed in the July 21, 2017 version of this bill, would be between $3 million and $5 million. Based on those estimates, DOF wrote the following in opposition to the bill, “Finance opposes this bill because it results in increased General Fund costs, thereby placing significant pressure on the state’s budget, which remains precariously balanced after paying for existing obligations.” However, AB 563 was amended on September 1, 2017 to remove the language that would have created the CalFresh Employment and Training Center for Excellence.

ASSEMBLY FLOOR: 76-1, 5/31/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Flora, Fong, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Travis Allen

NO VOTE RECORDED: Choi, Eggman, Melendez

Prepared by:

9/3/17 18:06:40

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 563 (Arambula) - CalFresh Employment and Training program

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on September 1, 2017

Bill Summary:

AB 563 would defer able-bodied adults without dependents (ABAWDS) from mandatory CalFresh Employment and Training program (CalFresh E&T) participation and would require counties to demonstrate how they are effectively using CalFresh E&T funds for the components offered.

Fiscal Impact:

Ongoing, likely minor costs to the California Department of Social Services (CDSS) to identify mechanisms to increase federal reimbursements for the program.

Author Amendments:

• Specify that CDSS may implement the deferment through all-county letters upon certification that the department has sufficient federal funds or federal reimbursements for the program, as specified.
• Authorize CDSS to identify mechanisms to increase the amount of federal reimbursement the state receives, as specified.
• Require CDSS to adopt regulations within one year of the date that certification of the availability of funds is issued.

Committee Amendments:

Eliminate the establishment of the Center for CalFresh Employment and Training Excellence.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 563 (Arambula) - CalFresh Employment and Training program

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 563 would instruct the California Department of Social Services (CDSS) to create the Center for CalFresh Employment and Training Excellence, defer able-bodied adults without dependents (ABAWDS) from mandatory CalFresh Employment and Training program (CalFresh E&T) participation, and require counties to demonstrate how they are effectively using CalFresh E&T funds for the components offered.

Fiscal Impact:

• Unknown, significant costs to CDSS to create the Center. If developed in-house costs will likely be in the millions of dollars; however, if contracted to a third party, some costs will be absorbed in their local assistance budget. (GF)
• Ongoing, significant costs to CDSS for additional personnel to staff the Center, likely in the range of $100,000 to $200,000 annually. (GF)

Background:

California provides nutritional benefits to approximately 4.4 million people through the CalFresh program. CalFresh benefits are funded entirely by the federal government through the USDA’s SNAP program, which provides food benefits to eligible households nationwide.

Federal law requires that California must have an E&T Program to assist recipients of CalFresh benefits in gaining skills, training, work, and experience that increases their ability to obtain regular employment. Federal law also restricts the amount of time that an ABAWD can receive SNAP benefits to three months during any three-year time period, unless they are working at least 20 hours per week. Counties have the discretion about whether to offer the program to non-assisted CalFresh clients, and counties that operate a CalFresh E&T program are now required to make the program voluntary for all participants who reside in a federally determined work surplus area (an area in which unemployment is higher than the national average).

The federal government provides for a waiver from the SNAP E&T work requirement under certain specified conditions including if an area is in a federally determined work surplus area. Under a waiver, ABAWDs are still subject to the same work requirements as other adults in CalFresh, but are no longer cut off from food aid if a job isn’t secured by the end of three months. California has been operating under a series of statewide waivers since October 1, 2008 and the extension of its current waiver is set to expire on December 31, 2017. If California's statewide waiver application is denied in part or in whole for 2018 and future years, mandatory participation in CalFresh E&T for populations that are not otherwise exempt would apply. Without the waiver, some ABAWDs will be in jeopardy of losing their CalFresh benefits – estimated at anywhere from 10,000 to 150,000 individuals.

The aim of this bill is to defer ABAWDs from mandatory E&T to ensure that they do not go without food benefits when the ABAWD waiver expires in 2018. The bill would also create the Center for CalFresh Employment and Training Excellence, to ensure that every CalFresh recipient has access to a high-quality E&T program.

Proposed Law:

This bill would:

• Require CDSS to establish the Center for CalFresh Employment and Training Excellence to assist the state and counties to ensure every CalFresh recipient has access to a high-quality employment and training program that will result in an increase in his or her family income and a reduction in his or her need for CalFresh benefits to prevent hunger;
• Require the Center to serve as a statewide repository for information on effective CalFresh employment and training methodologies, and to work with the state, counties, and partner organizations to collect information, conduct research, and provide technical assistance to counties that wish to improve or implement CalFresh Employment and Training programs;
• Authorize CDSS to contract with a third party in order to establish the Center;
• Add individuals subject to the ABAWD time limit to those who are deferred from mandatory placement in CalFresh E&T, as specified;
• Add job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs to the list of components that a county is required to demonstrate, in its CalFresh E&T plan, how it is effectively using;
• Maintain the ability of CDSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of CalFresh E&T reimbursement through the federal SNAP program on behalf of the organization, institution, or agency;
• Require CDSS to adopt regulations to implement this section by October 1, 2019.

Related Legislation:

H.R. 2642 (Lucas, P.L. 113-79, 2014), known as the Agriculture Reform and Risk Management Act of 2014, or Farm Bill, authorized nutrition and agriculture programs in the United States for the years of 2014-2018.

SB 43 (Liu, Chapter 507, Statutes of 2011) required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

-- END --

SENATE COMMITTEE ON HUMAN SERVICES

Senator Wiener, Chair

2017 - 2018 Regular

Bill No: AB 563

Subject: CalFresh Employment and Training program

SUMMARY

This bill instructs the Department of Social Services (CDSS) to create the Center for CalFresh Employment and Training Excellence, defers able-bodied adults without dependents (ABAWDs) from mandatory CalFresh Employment and Training program (CalFresh E&T) participation, and requires counties to demonstrate how they are effectively using CalFresh E&T funds for components offered.

ABSTRACT

Existing law:

1. Establishes in federal law the Supplemental Nutrition Assistance Program (SNAP) within the US Department of Agriculture (USDA) 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. It establishes SNAP eligibility requirements, including income that is at or below 130 percent of the federal poverty level and is determined to be a substantial limiting factor in permitting a recipient to obtain a more nutritious diet. (7 CFR 271.1; 7 CFR 273.9)
2. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities. (7 U.S.C. Sec. 2015(e)(3)(B))
3. Establishes eligibility criteria for SNAP benefits to include participation in SNAP E&T, among other criteria. (7 CFR 273.7)
4. Establishes the SNAP time limit for an able bodied adult without dependents (ABAWD), which states that an individual is limited to receive SNAP for up to three months within a three year period, unless the individual has met certain work participation requirements, as specified. (7 CFR 273.24)
5. Permits the USDA to waive the applicability of the 3-month time limit for ABAWDs if the unemployment rate in which the ABAWD resides is 10 percent or higher. (7 CFR 273.24 (6)(o))
6. Establishes in California statute the CalFresh program to administer the provisions of federal SNAP benefits to low-income families and individuals meeting specified criteria. (WIC 18900 et seq.)
7. Requires CDSS annually, to the extent permitted by federal law, to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD, unless that participant has met the work participation requirement. (WIC 18926)
8. Establishes the CalFresh E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment. (WIC 18926.5)
9. Requires a county that participates in the CalFresh E&T program to screen CalFresh applicants to determine whether they will participate in, or be deferred from, CalFresh E&T. Requires an individual to be deferred from a mandatory placement in CalFresh E&T if he or she satisfies any of the criteria in Sections 273.7 and 273.24 of Title 7 of the Code of Federal Regulations, resides in a federally determined work surplus area, is a veteran who has been honorably discharged from the United States Armed Forces, or is a victim of domestic violence. (WIC 18926.5 (b)(1))
10. Defines deferred to have the same definition as exempt for purposes of CalFresh E&T. (WIC 18926.5 (b(2))
11. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how it is effectively using CalFresh E&T funds for each of the components that the county offers, including, but not limited to, self-initiated workfare, work experience or training, education and job search. (WIC 18926.5 (c))

This bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh benefits.
2. Requires CDSS to establish the Center for CalFresh E&T Excellence for the purpose and mission of assisting the state and counties to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program that will result in an increase in his or her family and income and a reduction in her or her need for CalFresh benefits to prevent hunger.
3. Requires the Center to serve as a statewide repository for information on effective CalFresh E&T methodologies, including but not limited to, curriculum, contracting templates, and outcomes research. Further requires the Center to work with the state, counties, and partner organizations to collect information, conduct research, and provide technical assistance to counties that wish to improve or implement CalFresh E&T programs, including outcome-based programs.
4. Allows CDSS to contract with a third party in order to establish the center.
5. Adds individuals subject to the ABAWD time limit to those who are deferred from mandatory placement in CalFresh E&T, as specified.
6. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how funds are being used effectively for job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs, in addition to other components already required by law to be included in the plan.
7. Maintains the ability of CDSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of CalFresh E&T reimbursement through the federal SNAP on behalf of the organization, institution, or agency, as specified.
8. Permits CDSS to implement the provisions of this bill relating to CalFresh E&T programs through all-county letters or similar instructions, as specified, until regulations are adopted and further, requires those regulations to be adopted by October 1, 2019.
9. Makes other technical changes.

FISCAL IMPACT

According to an analysis prepared by the Assembly Appropriations Committee, this bill would likely generate the following fiscal impact:

1. Unknown, but significant costs to CDSS to create the Center for CalFresh Employment and Training Excellence. If developed in-house, costs will likely be in the millions of dollars (GF). If contracted to a third party, some of the costs will be covered in their local assistance budget.
2. Ongoing costs to staff the Center for CalFresh Employment and Training Excellence, likely in the range of $100,000 to $200,000 (GF) annually. The Center for CalFresh Employment and Training Excellence is required to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research. The Center for CalFresh Employment and Training Excellence must also conduct research and provide technical assistance to counties that wish to implement outcome-based CalFresh Employment and Training programs. CDSS will need at least one additional position to perform these duties.

BACKGROUND AND DISCUSSION

Purpose of the bill:

Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result, according to the author, “Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency.”

Per the author, “The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future…We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty.”

Poverty

According to the official poverty measure, nearly 6 million (15.3 percent) Californians lived in poverty in 2015. According to the supplemental poverty measure, a more refined measure that takes into account cost of food, clothing and shelter and utilities and other factors, 8 million (20.6 percent) Californians lived in poverty in 2015. Using a slightly different methodology, the Public Policy Institute of California (PPIC) placed the statewide poverty rate at 22 percent. The same PPIC report indicates that 19 percent of adults over 65 years of age were living in poverty. PPIC also estimates that 2.3 million children are poor in California, and an additional 1.3 million would be considered poor were it not for social safety net resources utilized by their families.

CalFresh

The CalFresh program provides qualified low-income households with EBT cards which are used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home to produce food. CalFresh is California’s version of the federal SNAP program. CalFresh benefits are 100 percent federally funded and national eligibility standards and benefit levels are established by the federal government. The program is administered by the CDSS at the state level. California’s 58 counties are responsible for administering the program at the local level.

To participate in CalFresh, households must meet defined income-eligibility standards. Depending on the households’ circumstances, the maximum gross income limit ranges between 100 and 200 percent of the federal poverty level (FPL). For most households, monthly gross income must be at or below 200 percent of FPL, which is $3,360 for a family of three. CalFresh benefit levels are based on the household size and income after certain deductions. The average monthly CalFresh benefit in FY 2016-17 is $293 per household and $140 per person.

Able Bodied Adults Without Dependents

According to SNAP rules, all recipients must meet work requirements unless they are exempt due to age, disability, or another specific reason. There are special rules that apply to ABAWDs, who are between 18 and 49 years of age, have no dependents and are not disabled. ABAWDs can only receive SNAP (CalFresh) benefits for three months in three years unless they work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs can also satisfy these requirements by participating in CalFresh E&T.

Due to high unemployment rates, California has been designated a work surplus area and therefore, has been operating with a waiver to the ABAWD rule since 2008. This allows ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule, since 2008. The waiver is set to expire in on August 31, 2018.

Absent another statewide or county-specific waiver, ABAWDs will need to comply with federal work requirement rules or they will be subject to the three month within three years limit on food benefits.

This bill defers ABWADs from mandatory E&T to ensure they don't go without food benefits regardless of whether there is a waiver to ABAWD work requirements.

CalFresh Employment and Training Program

In 1985, the Food Security Act created the Food Stamp Employment & Training Program, now known nationally as SNAP E&T, for the purpose of helping SNAP recipients to gain the skills and experience needed to enter the workforce and reduce dependency on public benefits. All states are required by federal law to offer SNAP E&T. In California, this program is called the CalFresh E&T.

While it is mandatory for California to have an E&T program, counties have the discretion as to whether or not they choose to have one. According to CDSS, 34 counties currently operate CalFresh E&T programs, and an additional two counties are projected to join in 2018.

USDA has approved California’s CalFresh E&T plan for Federal Fiscal Year 2017, pending final 2017 Federal Budget approval. This allocation includes 100 percent federal funds totaling over $10 million. Many counties also chose to draw down additional federal funds through the E&T 50 percent match of allowable expenditures. In total, California’s E&T program will be over $103 million.

In the past, some California counties required CalFresh E&T participation for all CalFresh recipients, while other counties only required CalFresh E&T participation for certain populations and allowed voluntary participation for other populations. That changed with passage of SB 43 (Liu, Chapter 507, Statutes of 2011. Counties that operate a CalFresh E&T program are now required to make the program voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average.

SNAP E&T innovations

In recent years, the USDA has taken steps to bolster existing SNAP E&T programs and created pilot projects that further assist individuals looking to obtain and retain quality employment.

In 2015, the USDA created a Center for Excellence for SNAP E&T, known as the SNAP to Skills program, which is a technical assistance project designed to provide states the tools and resources they need to build more effective and job-driven SNAP E&T programs. Ten states, including California, were selected based on existing levels of commitment and interest in expanding SNAP E&T. California counties selected for participation include Alameda, Contra Costa, San Francisco, and Sacramento. SNAP to Skills aims to further develop California’s existing CalFresh E&T program by developing tools and resources that facilitate the development of SNAP E&T programs; publishing a series of policy briefs to inform states and other stakeholders about innovations, policies and best practices that will further their Snap E&T programs’ success; and developing a communication platform for stakeholders to share information, resources, challenges and success. It is unclear at this time whether the USDA intends to continue the SNAP to Skills program past the September 2017 expiration date.

Additionally, there are 10 SNAP-funded pilot projects designed to test innovative strategies and approaches that connect low-income households to good paying jobs.^[1] Among these programs is the Fresno County Department of Social Services which was awarded $12 million for the project. The Fresno program builds upon the Fresno Bridge Academy in order to offer multiple career-driven services, including education, job training, support services, subsidized and unsubsidized employment, retention services, ongoing case management, and financial incentives for milestone achievements. The pilot takes a multi-generational approach that addresses adult development topics such as nutrition and health management, parenting skills, financial literacy, and services to ensure children are excelling in school. This pilot is underway and expected to end in August of 2017.

Related legislation:

H.R. 2642 (Lucas, P.L. 113-79, 2014, known as the Agriculture Reform and Risk Management Act of 2014, or Farm Bill, authorized nutrition and agriculture programs in the United States for the years of 2014-2018.

H.R. 2100 (de la Garza, P.L. 99-198, 1985) created the Food Security Act of 1985 which created the Food Stamp Employment & Training Program, now known as SNAP E&T.

SB 43 (Liu, Chapter 507, Statutes of 2011) required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

PRIOR VOTES

POSITIONS

Support:

Western Center on Law and Poverty (Sponsor)

Alameda County Food Bank

Andreas Borgeas - Fresno County Board of Supervisors

California Catholic Conference

California Food Policy Advocates

California Women’s Law Center

Courage Campaign

Feeding San Diego

Luis Chavez, Councilmember for District 5, City of Fresno

National Association of Social Workers- California Chapter

Women’s Foundation of California

Oppose:

None received.

-- END --

1. https://www.fns.usda.gov/sites/default/files/snap/SNAP-ET-Pilot-Summaries.pdf ↑

ASSEMBLY THIRD READING

ATR Bill Id:AB 563

Author:(Arambula)

As Amended Ver:March 23, 2017

Majority vote

SUMMARY: Instructs the Department of Social Services (DSS) to create the Center for CalFresh Employment and Training Excellence, defers able-bodied adults without dependents (ABAWDs) from mandatory CalFresh Employment and Training program (E&T) participation, and requires counties to demonstrate how they are effectively using CalFresh E&T funds for components offered. Specifically, this bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh benefits.
2. Requires DSS to establish the Center for CalFresh Employment and Training Excellence, as specified, to serve as a state repository for information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research, and to conduct research and provide technical assistance to counties interested in implementing outcome-based CalFresh Employment and Training (E&T) Programs.
3. Allows DSS to contract with a third party in order to establish the center.
4. Includes individuals subject to the able-bodied adult without dependents (ABAWD) time limit among those individuals who are deferred from mandatory placement in CalFresh E&T, as specified.
5. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how funds are being used effectively for job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs, in addition to other components already required by law to be included in the plan.
6. Clarifies that certain support services or client reimbursements necessary for participation in a county's CalFresh E&T activities, as specified, are subject to state law and guidance.
7. Maintains the ability of DSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of E&T reimbursement through the federal Supplemental Nutrition Assistance Program (SNAP) on behalf of the organization, institution, or agency, as specified.
8. Allows DSS to prioritize the distribution of federal E&T funding to voluntary programs located in areas with high unemployment or serving certain eligible individuals, as specified.
9. Permits DSS to implement the provisions of this bill relating to CalFresh E&T programs through all-county letters or similar instructions, as specified, until regulations are adopted and further, requires those regulations to be adopted by October 1, 2019.

EXISTING LAW:

1. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (Welfare and Institutions Code (WIC) 18900 et seq.)
2. Establishes the Electronic Benefits Transfer (EBT) Act, and defines the EBT system as the program designed to provide benefits to those eligible to receive public assistance benefits such as CalWORKs and CalFresh. (WIC 10065 et seq.)
3. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities. (7 U.S.C. Sec. 2015(e)(3)(B))
4. Establishes within CalFresh the federal E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment. (7 CFR 273.7, WIC 18926.5)
5. Requires that a California county that elects to participate in CalFresh E&T screen CalFresh work registrants to determine whether they will participate in, or be deferred from, the program and further, 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. (WIC 18926)
6. Establishes the SNAP time limit for an able bodied adult without dependents (ABAWD), which states that an individual is limited to receive SNAP for up to three months within a three year period, unless the individual has met certain work participation requirements, as specified. (7 CFR 273.24)
7. Requires DSS annually, to the extent permitted by federal law, to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD, unless that participant has met the work participation requirement. (WIC 18926)

FISCAL EFFECT: According to the Assembly Appropriations Committee on May 17, 2017, this bill may result in the following costs:

1. Unknown, but significant costs to DSS to create the Center. If developed in-house, costs will likely be in the millions of dollars (General Fund). If contracted to a third party, some of the costs will be covered in their local assistance budget; and
2. Ongoing costs to staff the Center, likely in the range of $100,000 to $200,000 (General Fund) annually. The Center is required to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research. The Center must also conduct research and provide technical assistance to counties that wish to implement outcome-based CalFresh Employment and Training programs. DSS will need at least one additional position to perform these duties.

Staff notes that the Assembly Budget Subcommittee on Health and Human Services adopted language to provide $2.1 million General Fund on a one-time basis, to be spent over three years, assuming a 50/50 federal match for the creation of a Center for CalFresh Employment and Training Excellence.

COMMENTS:

CalFresh: CalFresh benefits are funded entirely by the federal government through the Supplemental Nutrition Assistance Program (SNAP), and the USDA sets specific eligibility requirements for SNAP programs across the United States, including a gross and net income test, work requirements, and other documentation requirements. The maximum allowable gross income is 200% of the Federal Poverty Level (FPL). Households with elderly or disabled members are not subject to gross income criteria but must have a net monthly income at or below 100% of the FPL. Other households must meet both gross and net monthly income tests. CalFresh is administered locally by county human services agencies, and the federal, state, and county governments share in the cost of administration of the program.

Benefits are made available on a monthly basis for food purchase through an ATM-like electronic benefits transfer (EBT) card. However, unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn in cash at point-of-sale terminals or at ATM machines. CalFresh benefits can only be used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home and produce food. The average monthly benefit for a CalFresh recipient is $149.05 per month, or $4.96 per person per day.

Food Stamp Employment & Training Program (SNAP E&T)/CalFresh Employment & Training Program (CFET): In 1985, the Food Security Act created the Food Stamp Employment & Training Program, which is now known as SNAP E&T. The intent of the program is to help SNAP recipients gain the skills and experience necessary to enter the workforce and reduce dependency on public benefits. Federal law requires all states to offer SNAP E&T; in California this program is known as the CalFresh Employment & Training Program (CFET). Each year, DSS is required to submit the CFET program plan to the USDA Food and Nutrition Service (FNS) for approval. Upon approval, California is eligible for federal matching funds, and in federal fiscal year 2017, the federal government approved an allocation of 100% federal funds totaling $10,335,573.

Until recently, most California counties operated mandatory or combined mandatory and voluntary CFET programs, meaning some counties required mandatory participation in CFET for all CalFresh recipients, while other counties required mandatory participation for certain populations while allowing voluntary participation for other populations. However, by signing SB 43 (Liu), Chapter 507, Statutes of 2011 into law, California required counties that operate a CFET program to implement the program as voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average; as of February 2017, the national unemployment rate is 4.7%, compared to 5.1% unemployment in Los Angeles as of January 2017, 9.5% unemployment in Fresno as of December 2016, and 4.9% unemployment in Sacramento as of December 2016. Currently, all of California has been designated as a work surplus area by the federal government. However, that designation is expected to be retracted in 2018 such that counties that operate a CFET program may choose to make participation in the program mandatory; mandatory participation can only be prohibited through legislation. Currently, 33 counties in California offer voluntary CFET programs.

Able Bodied Adults Without Dependents (ABAWDs): SNAP rules require all recipients to meet work requirements unless they are exempt due to age, disability, or another specific reason. These individuals include ABAWDs, who are individuals between 18 and 49 years of age, and who have no dependents and are not disabled; ABAWDs are subject to a specific time limit in which they can only receive SNAP for three months in three years if they do not meet special work requirements. In order to be eligible beyond this time limit, ABAWDs must work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs are also able to satisfy these requirements by participating in a SNAP Employment and Training Program (in California's case, CFET).

California currently holds an ABAWD exemption through January 2018 which allows ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. In 2018, however, when the ABAWD waiver expires, these individuals will need to comply with federal work requirement rules or be subject to the time limit. Although federal work requirements may be satisfied by participation in a SNAP E&T/CFET program, California counties may choose whether or not to offer CFET programs, thereby making access to CFET in many counties difficult for ABWADs. California can therefore expect to see a large amount of CalFresh recipients go without benefits upon expiration of the ABAWD waiver in January 2018.

Need for this bill: According to the author's office, "Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result of unemployment and low wages, Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency. As a result, they experience hunger or are forced to rely on programs in the social public safety net. The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future.

[This bill] supports CalFresh recipients in securing employment and earnings that are enough for them to exit poverty. [This bill] will accomplish this by: removing the double penalty of unemployment for recipients subject to the Able Bodied Adult Without Dependents (ABAWD) time limit, establishing a CalFresh E&T Center for Excellence, and clarifying that the Department of Social Services may directly contract with E&T Providers.

We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty."

PRIOR LEGISLATION:

H.R. 2642 (Lucas), P.L. 113-79, 2014, known as the Agriculture Reform and Risk Management Act of 2014, or Farm Bill, authorized nutrition and agriculture programs in the United States for the years of 2014-2018.

SB 43 (Liu), Chapter 507, Statutes of 2011, required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

H.R. 2100 (de la Garza), P.L. 99-198, 1985, created the Food Security Act of 1985 which created the Food Stamp Employment & Training Program, now known as SNAP E&T.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0000769

Date of Hearing: May 17, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 563

Author:(Arambula) – As Amended Ver:March 23, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY: This bill requires the Department of Social Services (DSS) to establish the Center for CalFresh Employment and Training Excellence (Center), defers able-bodied adults without dependents (ABAWDs) from mandatory CalFresh Employment and Training program (E&T) participation, and clarifies that DSS may directly contract with E&T providers.

FISCAL EFFECT:

1. Unknown, but significant costs to DSS to create the Center. If developed in-house, costs will likely be in the millions of dollars (GF). If contracted to a third party, some of the costs will be covered in their local assistance budget.
2. Ongoing costs to staff the Center, likely in the range of $100,000 to $200,000 (GF) annually. The Center is required to serve as a state repository of information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research. The Center must also conduct research and provide technical assistance to counties that wish to implement outcome-based CalFresh Employment and Training programs. DSS will need at least one additional position to perform these duties.

COMMENTS:

1. Purpose. According to the author’s office, “As a result of unemployment and low wages, Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency. As a result, they experience hunger or are forced to rely on programs in the social public safety net. The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future.

[This bill] supports CalFresh recipients in securing employment and earnings that are enough for them to exit poverty. [This bill] will accomplish this by: removing the double penalty of unemployment for recipients subject to the Able Bodied Adult Without Dependents (ABAWD) time limit, establishing a CalFresh E&T Center for Excellence, and clarifying that the Department of Social Services may directly contract with E&T Providers.”

1. Background. Federal law requires all states to offer Food Stamp Employment & Training Program, (SNAP E&T) to help SNAP recipients gain the skills and experience necessary to enter the workforce and reduce dependency on public benefits. In California this program is known as the CalFresh Employment & Training Program (CFET). Each year, DSS is required to submit the CFET program plan to the USDA Food and Nutrition Service (FNS) for approval. Upon approval, California is eligible for federal matching funds. In federal fiscal year 2017, the federal government approved an allocation of 100% federal funds totaling $10,335,573.

Until recently, some counties required mandatory participation in CFET for all CalFresh recipients, while other counties required mandatory participation for certain populations. However, since 2011, California requires counties that operate a CFET program to implement the program as voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average. Currently, all of California is designated as a work surplus area by the federal government. However, that designation is expected to be retracted in 2018 such that counties that operate a CFET program may choose to make participation in the program mandatory; mandatory participation can only be prohibited through legislation. Currently, 33 counties in California offer voluntary CFET programs.

SNAP rules require all recipients to meet work requirements unless they are exempt due to age, disability, or another specific reason. These individuals include Able Bodied Adults Without Dependents (ABAWDs), who are between 18 and 49 years of age, and have no dependents and are not disabled; ABAWDs can only receive SNAP for three months in three years if they do not meet special work requirements. To be eligible beyond this time limit, ABAWDs must work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs can also satisfy these requirements by participating in CFET.

California currently holds an ABAWD exemption through January 2018, which allows ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. In 2018, however, when the ABAWD waiver expires, these individuals will need to comply with federal work requirement rules or be subject to the time limit. Although federal work requirements may be satisfied by participation in a SNAP E&T/CFET program, California counties may choose whether or not to offer CFET programs, thereby making access to CFET in many counties difficult for ABWADs.

This bill defers ABWADs from mandatory E&T to ensure they don't go without food benefits when the ABAWD waiver expires in January 2018. The bill also creates the Center for CalFresh Employment and Training Excellence, to further the goal of ensuring every CalFresh recipient has access to a high-quality employment and training program that will lead to an increase in family income and a reduction in need for CalFresh benefits to prevent hunger.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: March 21, 2017

ASSEMBLY COMMITTEE ON HUMAN SERVICES

Blanca Rubio, Chair

ABPCA Bill Id:AB 563 (

Author:Arambula) – As Amended Ver:March 13, 2017

SUBJECT: CalFresh Employment and Training program

SUMMARY: Instructs the Department of Social Services (DSS) to create the Center for CalFresh Employment and Training Excellence, defers able-bodied adults without dependents (ABAWDs) from mandatory CalFresh Employment and Training program (E&T) participation, and requires counties to demonstrate how they are effectively using CalFresh E&T funds for components offered.

Specifically, this bill:

1. Makes a number of Legislative findings and declarations regarding unemployment and CalFresh benefits.
2. Requires DSS to establish the Center for CalFresh Employment and Training Excellence, as specified, to serve as a state repository for information on effective CalFresh employment and training methodologies, curriculum, contracting templates, and outcomes research, and to conduct research and provide technical assistance to counties interested in implementing outcome-based CalFresh Employment and Training (E&T) Programs.
3. Allows DSS to contract with a third party in order to establish the center.
4. Makes operative the provisions of the bill related to establishment of the Center for CalFresh Employment and Training Excellence once state share funding has been appropriated in the annual Budget Act and upon certification by the State Department of Health Care Services that any necessary federal approvals for maximum federal reimbursement have been obtained.
5. Includes individuals subject to the able-bodied adult without dependents (ABAWD) time limit among those individuals who are deferred from mandatory placement in CalFresh E&T, as specified.
6. Requires a county participating in CalFresh E&T to demonstrate in its CalFresh E&T plan how funds are being used effectively for job search training, Workforce Innovation and Opportunity Act activities, self-employment training, job retention, and subsidized jobs, in addition to other components already required by law to be included in the plan.
7. Clarifies that certain support services or client reimbursements necessary for participation in a county’s CalFresh E&T activities, as specified, are subject to state law and guidance.
8. Maintains the ability of DSS to enter into an agreement with an organization, institution, or agency and to act as the state entity for receipt of E&T reimbursement through the federal Supplemental Nutrition Assistance Program (SNAP) on behalf of the organization, institution, or agency, as specified.
9. Allows DSS to prioritize the distribution of federal E&T funding to voluntary programs located in areas with high unemployment or serving certain eligible individuals, as specified.
10. Permits DSS to implement the provisions of this bill relating to CalFresh E&T programs through all-county letters or similar instructions, as specified, until regulations are adopted and further, requires those regulations to be adopted by October 1, 2019.

EXISTING LAW:

1. Establishes under federal law the Supplemental Nutrition Assistance Program (SNAP) pursuant to the Food Stamp Act of 1964 and establishes, in California statute, the CalFresh program to administer the provision of federal SNAP benefits to families and individuals meeting certain criteria, as specified. (WIC 18900 et seq.)
2. Establishes the Electronic Benefits Transfer (EBT) Act, and defines the EBT system as the program designed to provide benefits to those eligible to receive public assistance benefits such as CalWORKs and CalFresh. (WIC 10065 et seq.)
3. Defines in federal statute approved activities under the E&T program including education, as specified, participation in a Workforce Investment Act program, and other activities. (7 U.S.C. Sec. 2015(e)(3)(B))
4. Establishes within CalFresh the federal E&T program to assist members of CalFresh households in gaining skills, training, work, or experience that will increase their ability to obtain regular employment. (7 CFR 273.7, WIC 18926.5)
5. Requires that a California county that elects to participate in CalFresh E&T screen CalFresh work registrants to determine whether they will participate in, or be deferred from, the program and further, 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. (WIC 18926)
6. Establishes the SNAP time limit for an able bodied adult without dependents (ABAWD), which states that an individual is limited to receive SNAP for up to three months within a three year period, unless the individual has met certain work participation requirements, as specified. (7 CFR 273.24)
7. Requires DSS annually, to the extent permitted by federal law, to seek a federal SNAP waiver to the three-month limit in a three-year period of CalFresh benefits for an ABAWD, unless that participant has met the work participation requirement. (WIC 18926)

FISCAL EFFECT: Unknown.

COMMENTS:

CalFresh: CalFresh benefits are funded entirely by the federal government through the Supplemental Nutrition Assistance Program (SNAP), and the USDA sets specific eligibility requirements for SNAP programs across the United States, including a gross and net income test, work requirements, and other documentation requirements. The maximum allowable gross income is 200% of the Federal Poverty Level (FPL). Households with elderly or disabled members are not subject to gross income criteria but must have a net monthly income at or below 100% of the FPL. Other households must meet both gross and net monthly income tests. CalFresh is administered locally by county human services agencies, and the federal, state, and county governments share in the cost of administration of the program.

Benefits are made available on a monthly basis for food purchase through an ATM-like electronic benefits transfer (EBT) card. However, unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn in cash at point-of-sale terminals or at ATM machines. CalFresh benefits can only be used to purchase food items to be prepared and consumed at home, as well as seeds and plants that can be grown at home and produce food. The average monthly benefit for a CalFresh recipient is $149.05 per month, or $4.96 per person per day.

Food Stamp Employment & Training Program (SNAP E&T)/CalFresh Employment & Training Program (CFET): In 1985, the Food Security Act created the Food Stamp Employment & Training Program, which is now known as SNAP E&T. The intent of the program is to help SNAP recipients gain the skills and experience necessary to enter the workforce and reduce dependency on public benefits. Federal law requires all states to offer SNAP E&T; in California this program is known as the CalFresh Employment & Training Program (CFET). Each year, DSS is required to submit the CFET program plan to the USDA Food and Nutrition Service (FNS) for approval. Upon approval, California is eligible for federal matching funds, and in federal fiscal year 2017, the federal government approved an allocation of 100% federal funds totaling $10,335,573.

Until recently, most California counties operated mandatory or combined mandatory and voluntary CFET programs, meaning some counties required mandatory participation in CFET for all CalFresh recipients, while other counties required mandatory participation for certain populations while allowing voluntary participation for other populations. However, by signing SB 43 (Liu), Chapter 507, Statutes of 2011 into law, California required counties that operate a CFET program to implement the program as voluntary for all participants who reside in a federally determined work surplus area, meaning an area in which unemployment is higher than the national average; as of February 2017, the national unemployment rate is 4.7%, compared to 5.1% unemployment in Los Angeles as of January 2017, 9.5% unemployment in Fresno as of December 2016, and 4.9% unemployment in Sacramento as of December 2016. Currently, all of California has been designated as a work surplus area by the federal government. However, that designation is expected to be retracted in 2018 such that counties that operate a CFET program may choose to make participation in the program mandatory; mandatory participation can only be prohibited through legislation. Currently, 33 counties in California offer voluntary CFET programs.

Able Bodied Adults Without Dependents (ABAWDs): SNAP rules require all recipients to meet work requirements unless they are exempt due to age, disability, or another specific reason. These individuals include ABAWDs, who are individuals between 18 and 49 years of age, and who have no dependents and are not disabled; ABAWDs are subject to a specific time limit in which they can only receive SNAP for three months in three years if they do not meet special work requirements. In order to be eligible beyond this time limit, ABAWDs must work at least 80 hours per month, participate in a qualifying education and training activity for at least 80 hours per month, or comply with a workfare program. ABAWDs are also able to satisfy these requirements by participating in a SNAP Employment and Training Program (in California’s case, CFET).

California currently holds an ABAWD exemption through January 2018 which allows ABAWDs to receive CalFresh benefits without being subject to the time limit and without fulfilling the work requirement rule. In 2018, however, when the ABAWD waiver expires, these individuals will need to comply with federal work requirement rules or be subject to the time limit. Although federal work requirements may be satisfied by participation in a SNAP E&T/CFET program, California counties may choose whether or not to offer CFET programs, thereby making access to CFET in many counties difficult for ABWADs. California can therefore expect to see a large amount of CalFresh recipients go without benefits upon expiration of the ABAWD waiver in January 2018.

Innovative approaches: In recent years, the USDA has undertaken several innovative approaches to bolstering existing SNAP E&T programs and creating pilot projects in order to further assist individuals looking to obtain and retain quality employment.

SNAP to Skills: Created in 2015, the USDA FNS created the SNAP to Skills program, which is a technical assistance project designed to provide states the tools and resources they need to build more effective and job-driven SNAP E&T programs. Ten states, including California, Michigan, Tennessee, and Maryland, were selected based on existing levels of commitment and interest in expanding SNAP E&T. Counties selected for participation in California include Alameda, Contra Costa, San Francisco, and Sacramento. SNAP to Skills aims to further develop California’s existing CFET program by: developing tools and resources to utilize to facilitate the development of their SNAP E&T programs; publishing a series of policy briefs to inform states and other stakeholders about innovations, policies and best practices that will further their Snap E&T programs’ success; and develop a platform for stakeholders, including FNS and states to communicate, share information, resources, and challenges and success. The SNAP to Skills program will last two year and is set to end in September 2017; it is unclear at this time whether the USDA intends to continue the SNAP to Skills program past the September 2017 expiration date.

National Pilot Projects: In addition to the Snap to Skills program, in March 2015 Agriculture Secretary Tom Vilsack and Labor Secretary Tom Perez announced the recipients of $200 million in competitive awards to fund and evaluate pilot projects in 10 states (California, Delaware, Georgia, Illinois, Kansas, Kentucky, Mississippi, Virginia, Vermont, and Washington) to help SNAP participants find jobs and work toward self-sufficiency. These pilot projects, which will run concurrently with and in addition to the SNAP to Skills Project, aim to study and evaluate new strategies to determine the most effective ways to help SNAP recipients gain and retain employment. Among these programs is the Fresno County Department of Social Services which was awarded $12,166,778 for the project. The Fresno program was aimed at building upon an existing program called the Fresno Bridge Academy in order to offer multiple career-driven services, including education, job training, support services, subsidized and unsubsidized employment, retention services, ongoing case management, and financial incentives for milestone achievements. The pilot includes a multi-generational approach that includes adult development topics such as nutrition and health management, parenting skills, financial literacy, and services to ensure children are excelling in school.

Need for this bill: According to the author’s office, “Some communities in California continue to struggle with large unemployment rates, even as the national unemployment rate drops. As a result of unemployment and low wages, Californians are experiencing personal, financial, and institutional barriers blocking them from completing education and training that would otherwise help them towards a pathway which would ultimately result in self-sufficiency. As a result, they experience hunger or are forced to rely on programs in the social public safety net. The CalFresh Employment & Training Program is intended to improve employment skills and work opportunities, thereby reducing the reliance on CalFresh nutritional benefits in the future.

[This bill] supports CalFresh recipients in securing employment and earnings that are enough for them to exit poverty. [This bill] will accomplish this by: removing the double penalty of unemployment for recipients subject to the Able Bodied Adult Without Dependents (ABAWD) time limit, establishing a CalFresh E&T Center for Excellence, and clarifying that the Department of Social Services may directly contract with E&T Providers.

We need to support outcomes-based innovation in the CalFresh Employment & Training Program, increase the number of low-income Californians who can benefit from programs and ensure that every Californian who wants, and is able, has access to employment that will allow them to exit poverty.”

According to the Western Center on Law and Poverty, a sponsor of this bill, “[This bill] will work not only to improve the likelihood of employment and self-sufficiency among low-income Californians, but our hope is that it will also give us several proactive policies we can work on together in pursuit of a dialog that rises above the rhetoric.”

Proposed amendments: In order to expedite development and operation of the proposed Center, committee staff recommends the following amendments:

On page 4 of the bill, strike lines 13-17, inclusive:

13

(b) Subdivision (a) shall become operative only once state share

14

funding has been appropriated in the annual Budget Act and upon

15

certification by the State Department of Health Care Services that

16

any necessary federal approvals for maximum federal

17

reimbursement have been obtained.

PRIOR LEGISLATION:

SB 43 (Liu), Chapter 507, Statutes of 2011, required counties that offer CalFresh E&T to make participation voluntary instead of mandatory.

H.R. 2642 (Lucas), P.L. 113-79, 2014, known as the Agriculture Reform and Risk Management Act of 2014, or Farm Bill, authorized nutrition and agriculture programs in the United States for the years of 2014-2018.

H.R. 2100 (de la Garza), P.L. 99-198, 1985, created the Food Security Act of 1985 which created the Food Stamp Employment & Training Program, now known as SNAP E&T.

REGISTERED SUPPORT / OPPOSITION:

Support

Western Center on Law and Poverty (Sponsor)

Alameda County Community Food Bank

California Association of Food Banks

California Catholic Conference

California Food Policy Advocates

County of Fresno Board of Supervisors

Courage Campaign

Feeding San Diego

Food Bank of Contra Costa & Solano County

Women’s Foundation of CA

Opposition

None on file.

Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089