SB 675: Electronic benefits transfer system.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-08-21
Existing federal law provides for the Supplemental Nutrition Assistance Program (SNAP), known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing federal law requires the Secretary of Agriculture to approve retail food stores to accept CalFresh benefits through online transactions if the secretary implements this program after a required demonstration project.
Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits. Existing law authorizes a county to deliver CalFresh benefits through the use of the EBT system.
This bill would, to the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture, as specified, require the electronic benefits transfer EBT system to limit the purchase of food through an online transaction only to retailers that are authorized to accept CalFresh benefits by the United States Department of Agriculture and that comply with various requirements, including, providing reasonable access to return or exchange food within 4 hours of receipt of the food. The bill would also require the electronic benefits transfer EBT system to prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits and, if a fee is charged for the delivery of food, require that the recipient be informed in advance of the fee being charged and agree to pay the delivery fee with funds other than CalFresh benefits.
Existing federal law provides for the Supplemental Nutrition Assistance Program (SNAP), known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing federal law requires the Secretary of Agriculture to approve retail food stores to accept CalFresh benefits through online transactions if the secretary implements this program after a required demonstration project.
Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits. Existing law prohibits a fee from being charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the EBT system. Existing law requires that a recipient not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits. Existing law also requires the EBT system to provide for reasonable access to benefits to recipients who demonstrate an inability to use an EBT card or other aspect of the system because of disability, language, lack of access, or other barrier. Existing law authorizes a county to deliver CalFresh benefits through the use of the EBT system.
This bill would, to the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture, as specified, require the electronic benefits transfer system to limit the purchase of food through an online transaction only to retailers that comply with various requirements, including, providing reasonable access to return or exchange food within 4 hours of receipt of the food. The bill would also require the electronic benefits transfer system to prohibit the use of CalFresh benefits to pay a fee from being charged for the delivery of food purchased using CalFresh program food benefits and, if a fee is charged for the delivery of food purchased with cash benefits, food, require that the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits, as specified. the delivery fee with funds other than CalFresh benefits.
Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits. Existing law prohibits a fee from being charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the EBT system. Existing law requires that a recipient not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits. Existing law also requires the EBT system to provide for reasonable access to benefits to recipients who demonstrate an inability to use an EBT card or other aspect of the system because of disability, language, lack of access, or other barrier.
This bill would make technical, nonsubstantive changes to those provisions.This bill would, to the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture, as specified, require the electronic benefits transfer system to limit the purchase of food through an online transaction only to retailers that comply with various requirements, including, providing reasonable access to return or exchange food within 4 hours of receipt of the food. The bill would also require the electronic benefits transfer system to prohibit a fee from being charged for the delivery of food purchased using CalFresh program food benefits and, if a fee is charged for the delivery of food purchased with cash benefits, require that the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits, as specified.
Existing law provides for the establishment of a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits. Existing law prohibits a fee from being charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the EBT system. Existing law requires that a recipient not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits. Existing law also requires the EBT system to provide for reasonable access to benefits to recipients who demonstrate an inability to use an EBT card or other aspect of the system because of disability, language, lack of access, or other barrier.
This bill would make technical, nonsubstantive changes to those provisions.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a)To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b)(1)To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(2)(A)To the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture necessary to ensure the consumer protections provided in this paragraph, the electronic benefits transfer system shall do both of the following:
(i)Limit the purchase of food through an online transaction only to retailers that are authorized to accept CalFresh benefits by the United States Department of Agriculture and that comply with all of the following:
(I)Provide reasonable access to return or exchange the food within four hours of receipt of the food.
(II)Meet state and local food safety requirements.
(III)Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
(ii)(I)Prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits through the electronic benefits transfer system.
(II)If a fee is charged for the delivery of food, require that the recipient be informed in advance of the fee being charged and agree to pay the delivery fee with funds other than CalFresh benefits. This fee shall be reimbursed immediately if an in-person confirmation of delivery pursuant to subclause (III) of clause (i) is not secured.
(B)(i)For the purposes of this subdivision, retailer shall mean means a grocery establishment, as defined by subdivision (d) of in Section 2502 of Part 9.5 of Division 2 of the Labor Code Code, a grocery store, as defined in Section 113948 of the Health and Safety Code, a commissary, a community-supported agriculture program, as defined in Section 47060 of the Food and Agricultural Code, or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients who are elderly or homeless or who have disabilities through the CalFresh Restaurant Meals Program.
(ii)For the purposes of this subdivision,commissary means a store that sells food to the personnel or workers at a military post.
(c)All reasonable measures shall be taken in order to ensure that recipients have access to electronically issued benefits through systems including, but not limited to, automated teller machines, point-of-sale devices, or other devices that accept electronic benefits transfer transactions. Benefits provided under Chapter 2 (commencing with Section 11200) of Part 3 shall be staggered over a period of three calendar days, unless a county requests a waiver from the department and the waiver is approved, or in cases of hardship pursuant to subdivision (p).
(d)The system shall provide for reasonable access to benefits to recipients who demonstrate an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier. These alternative methods shall conform to the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101, et seq.), including reasonable accommodations for recipients who, because of physical or mental disabilities, are unable to operate or otherwise make effective use of the electronic benefits transfer system.
(e)The system shall permit a recipient the option to choose a personal identification number, also known as a PIN number, to assist the recipient to remember his or her number in order to allow access to benefits. Whenever an institution, authorized representative, or other third party not part of the recipient household or assistance unit has been issued an electronic benefits transfer card, either in lieu of, or in addition to, the recipient, the third party shall have a separate card and personal identification number. At the option of the recipient, he or she may designate whether restrictions apply to the third partys access to the recipients benefits. At the option of the recipient head of household or assistance unit, the county shall provide one electronic benefits transfer card to each adult member to enable them to access benefits.
(f)The system shall have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to access, over the telephone, the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(g)The system shall have an Internet Web site that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to view the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(h)In addition to the ability to receive transaction history detail pursuant to subdivisions (f) and (g), a county human services agency shall make available to an authorized representative or head of household, at no additional cost to the authorized representative or head of household, all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received by the agency.
(i)(1)A recipient shall not incur any loss of electronic benefits after reporting that his or her electronic benefits transfer card or personal identification number has been lost or stolen. The system shall provide for the prompt replacement of lost or stolen electronic benefits transfer cards and personal identification numbers. Electronic benefits for which the case was determined eligible and that were not withdrawn by transactions using an authorized personal identification number for the account shall also be promptly replaced.
(2)A recipient shall not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical electronic benefits transfer card issued to the recipient or authorized third party to directly access the benefits. Benefits taken as described in this paragraph shall be promptly replaced in accordance with the protocol established by the department pursuant to paragraph (3).
(3)The State Department of Social Services shall establish a protocol for recipients to report electronic theft of cash benefits that minimizes the burden on recipients, ensures prompt replacement of benefits in order to minimize the harm to recipients, and ensures program integrity. This protocol may include the automatic replacement of benefits without the need for recipient reporting and verification.
(j)Electronic benefits transfer system consumers shall be informed on how to use electronic benefits transfer cards, how to protect their cards from misuse, and where consumers can use their cards to withdraw benefits without incurring a fee, charge, or surcharge.
(k)The electronic benefits transfer system shall be designed to inform recipients when the electronic benefits transfer system does not function or is expected not to function for more than a one-hour period between 6 a.m. and midnight during any 24-hour period. This information shall be made available in the recipients preferred language if the electronic benefits transfer system vendor contract provides for services in that language.
(l)Procedures shall be developed for error resolution.
(m)A fee shall not be charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the electronic benefits transfer system.
(n)Except for CalFresh transactions, a recipient may be charged a fee, not to exceed the amount allowed by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed four per month.
(o)The electronic benefits transfer system shall be designed to ensure that recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges.
(p)A county shall exempt an individual from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship. Hardship includes, but is not limited to, the incurrence of late charges on an individuals housing payments.
(q)A county shall use information provided by the department to inform recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 of all of the following:
(1)The methods of electronic delivery of benefits available, including distribution of benefits through the electronic benefits transfer system or direct deposit pursuant to Section 11006.2.
(2)Applicable fees and charges, including surcharges, consumer and privacy protections, and liability for theft associated with the electronic benefits transfer system.
(3)How to avoid fees and charges, including opting for delivery of benefits by direct deposit and using the electronic benefits transfer card solely at surcharge free locations.
(4)Where to withdraw benefits without a surcharge when using the electronic benefits transfer system.
(5)That a recipient may authorize any available method of electronic delivery of benefits and instructions regarding how the recipient may select or change his or her preferred method of electronic delivery of benefits and that the recipient shall be given the opportunity to select the method prior to the first payment.
(6)That a recipient may be entitled to an alternative method of delivery if the recipient demonstrates an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier pursuant to subdivision (d) and instructions regarding how to determine whether the recipient qualifies for an alternative method of delivery.
(7)That a recipient may be entitled to an exemption from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship pursuant to subdivision (o) and instructions regarding how to determine whether the recipient qualifies for the exemption.
(r)A county is in compliance with subdivision (q) if it provides the recipient a copy of the information developed by the department. A county may provide a recipient information, in addition to the copy of the information developed by the department, pursuant to subdivision (q), either verbally or in writing, if the county determines the additional information will benefit the recipients understanding of the information provided.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a)To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b)(1)To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(2)(A)To the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture consistent with necessary to ensure the consumer protections provided in this paragraph, the electronic benefits transfer system shall do both of the following:
(i)Limit the purchase of food through an online transaction only to retailers that comply with all of the following:
(I)Provide reasonable access to return or exchange the food within four hours of receipt of the food.
(II)Meet state and local food safety requirements.
(III)Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
(ii)(I)Prohibit the use of CalFresh benefits to pay a fee from being charged for the delivery of food purchased using CalFresh program food benefits through the electronic benefits transfer system.
(II)If a fee is charged for the delivery of food purchased with cash benefits, food, require that the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits. the delivery fee with funds other than CalFresh benefits. This fee shall be reimbursed immediately if an in-person confirmation of delivery pursuant to subclause (III) of clause (i) is not secured.
(B)For the purposes of this subdivision, retailer shall mean a grocery establishment, as defined by subdivision (d) of Section 2502 of Part 9.5 of Division 2 of the Labor Code or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients through the CalFresh Restaurant Meals Program.
(c)All reasonable measures shall be taken in order to ensure that recipients have access to electronically issued benefits through systems including, but not limited to, automated teller machines, point-of-sale devices, or other devices that accept electronic benefits transfer transactions. Benefits provided under Chapter 2 (commencing with Section 11200) of Part 3 shall be staggered over a period of three calendar days, unless a county requests a waiver from the department and the waiver is approved, or in cases of hardship pursuant to subdivision (p).
(d)The system shall provide for reasonable access to benefits to recipients who demonstrate an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier. These alternative methods shall conform to the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101, et seq.), including reasonable accommodations for recipients who, because of physical or mental disabilities, are unable to operate or otherwise make effective use of the electronic benefits transfer system.
(e)The system shall permit a recipient the option to choose a personal identification number, also known as a PIN number, to assist the recipient to remember his or her number in order to allow access to benefits. Whenever an institution, authorized representative, or other third party not part of the recipient household or assistance unit has been issued an electronic benefits transfer card, either in lieu of, or in addition to, the recipient, the third party shall have a separate card and personal identification number. At the option of the recipient, he or she may designate whether restrictions apply to the third partys access to the recipients benefits. At the option of the recipient head of household or assistance unit, the county shall provide one electronic benefits transfer card to each adult member to enable them to access benefits.
(f)The system shall have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to access, over the telephone, the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(g)The system shall have an Internet Web site that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to view the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(h)In addition to the ability to receive transaction history detail pursuant to subdivisions (f) and (g), a county human services agency shall make available to an authorized representative or head of household, at no additional cost to the authorized representative or head of household, all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received by the agency.
(i)(1)A recipient shall not incur any loss of electronic benefits after reporting that his or her electronic benefits transfer card or personal identification number has been lost or stolen. The system shall provide for the prompt replacement of lost or stolen electronic benefits transfer cards and personal identification numbers. Electronic benefits for which the case was determined eligible and that were not withdrawn by transactions using an authorized personal identification number for the account shall also be promptly replaced.
(2)A recipient shall not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical electronic benefits transfer card issued to the recipient or authorized third party to directly access the benefits. Benefits taken as described in this paragraph shall be promptly replaced in accordance with the protocol established by the department pursuant to paragraph (3).
(3)The State Department of Social Services shall establish a protocol for recipients to report electronic theft of cash benefits that minimizes the burden on recipients, ensures prompt replacement of benefits in order to minimize the harm to recipients, and ensures program integrity. This protocol may include the automatic replacement of benefits without the need for recipient reporting and verification.
(j)Electronic benefits transfer system consumers shall be informed on how to use electronic benefits transfer cards, how to protect their cards from misuse, and where consumers can use their cards to withdraw benefits without incurring a fee, charge, or surcharge.
(k)The electronic benefits transfer system shall be designed to inform recipients when the electronic benefits transfer system does not function or is expected not to function for more than a one-hour period between 6 a.m. and midnight during any 24-hour period. This information shall be made available in the recipients preferred language if the electronic benefits transfer system vendor contract provides for services in that language.
(l)Procedures shall be developed for error resolution.
(m)A fee shall not be charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the electronic benefits transfer system.
(n)Except for CalFresh transactions, a recipient may be charged a fee, not to exceed the amount allowed by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed four per month.
(o)The electronic benefits transfer system shall be designed to ensure that recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges.
(p)A county shall exempt an individual from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship. Hardship includes, but is not limited to, the incurrence of late charges on an individuals housing payments.
(q)A county shall use information provided by the department to inform recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 of all of the following:
(1)The methods of electronic delivery of benefits available, including distribution of benefits through the electronic benefits transfer system or direct deposit pursuant to Section 11006.2.
(2)Applicable fees and charges, including surcharges, consumer and privacy protections, and liability for theft associated with the electronic benefits transfer system.
(3)How to avoid fees and charges, including opting for delivery of benefits by direct deposit and using the electronic benefits transfer card solely at surcharge free locations.
(4)Where to withdraw benefits without a surcharge when using the electronic benefits transfer system.
(5)That a recipient may authorize any available method of electronic delivery of benefits and instructions regarding how the recipient may select or change his or her preferred method of electronic delivery of benefits and that the recipient shall be given the opportunity to select the method prior to the first payment.
(6)That a recipient may be entitled to an alternative method of delivery if the recipient demonstrates an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier pursuant to subdivision (d) and instructions regarding how to determine whether the recipient qualifies for an alternative method of delivery.
(7)That a recipient may be entitled to an exemption from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship pursuant to subdivision (o) and instructions regarding how to determine whether the recipient qualifies for the exemption.
(r)A county is in compliance with subdivision (q) if it provides the recipient a copy of the information developed by the department. A county may provide a recipient information, in addition to the copy of the information developed by the department, pursuant to subdivision (q), either verbally or in writing, if the county determines the additional information will benefit the recipients understanding of the information provided.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a)To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b)(1)To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(2)(A)To the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture consistent with the consumer protections provided in this paragraph, the electronic benefits transfer system shall do both of the following:
(i)Limit the purchase of food through an online transaction only to retailers that comply with all of the following:
(I)Provide reasonable access to return or exchange the food within four hours of receipt of the food.
(II)Meet state and local food safety requirements.
(III)Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
(ii)(I)Prohibit a fee from being charged for the delivery of food purchased using CalFresh program food benefits through the electronic benefits transfer system.
(II)If a fee is charged for the delivery of food purchased with cash benefits, require that the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits. This fee shall be reimbursed immediately if an in-person confirmation of delivery pursuant to subclause (III) of clause (i) is not secured.
(B)For the purposes of this subdivision, retailer shall mean a grocery establishment, as defined by subdivision (d) of Section 2502 of Part 9.5 of Division 2 of the Labor Code or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients through the CalFresh Restaurant Meals Program.
(c)All reasonable measures shall be taken in order to ensure that recipients have access to electronically issued benefits through systems including, but not limited to, automated teller machines, point-of-sale devices, or other devices that accept electronic benefits transfer transactions. Benefits provided under Chapter 2 (commencing with Section 11200) of Part 3 shall be staggered over a period of three calendar days, unless a county requests a waiver from the department and the waiver is approved, or in cases of hardship pursuant to subdivision (p).
(d)The system shall provide for reasonable access to benefits to recipients who demonstrate an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier. These alternative methods shall conform to the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101, et seq.), including reasonable accommodations for recipients who, because of physical or mental disabilities, are unable to operate or otherwise make effective use of the electronic benefits transfer system.
(e)The system shall permit a recipient the option to choose a personal identification number, also known as a PIN number, to assist the recipient to remember his or her number in order to allow access to benefits. Whenever an institution, authorized representative, or other third party not part of the recipient household or assistance unit has been issued an electronic benefits transfer card, either in lieu of, or in addition to, the recipient, the third party shall have a separate card and personal identification number. At the option of the recipient, he or she may designate whether restrictions apply to the third partys access to the recipients benefits. At the option of the recipient head of household or assistance unit, the county shall provide one electronic benefits transfer card to each adult member to enable them to access benefits.
(f)The system shall have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to access, over the telephone, the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(g)The system shall have an Internet Web site that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to view the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(h)In addition to the ability to receive transaction history detail pursuant to subdivisions (f) and (g), a county human services agency shall make available to an authorized representative or head of household, at no additional cost to the authorized representative or head of household, all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received by the agency.
(i)(1)A recipient shall not incur any loss of electronic benefits after reporting that his or her electronic benefits transfer card or personal identification number has been lost or stolen. The system shall provide for the prompt replacement of lost or stolen electronic benefits transfer cards and personal identification numbers. Electronic benefits for which the case was determined eligible and that were not withdrawn by transactions using an authorized personal identification number for the account shall also be promptly replaced.
(2)A recipient shall not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical electronic benefits transfer card issued to the recipient or authorized third party to directly access the benefits. Benefits taken as described in this paragraph shall be promptly replaced in accordance with the protocol established by the department pursuant to paragraph (3).
(3)The State Department of Social Services shall establish a protocol for recipients to report electronic theft of cash benefits that minimizes the burden on recipients, ensures prompt replacement of benefits in order to minimize the harm to recipients, and ensures program integrity. This protocol may include the automatic replacement of benefits without the need for recipient reporting and verification.
(j)Electronic benefits transfer system consumers shall be informed on how to use electronic benefits transfer cards, how to protect their cards from misuse, and where consumers can use their cards to withdraw benefits without incurring a fee, charge, or surcharge.
(k)The electronic benefits transfer system shall be designed to inform recipients when the electronic benefits transfer system does not function or is expected not to function for more than a one-hour period between 6 a.m. and midnight during any 24-hour period. This information shall be made available in the recipients preferred language if the electronic benefits transfer system vendor contract provides for services in that language.
(l)Procedures shall be developed for error resolution.
(m)A fee shall not be charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the electronic benefits transfer system.
(n)Except for CalFresh transactions, a recipient may be charged a fee, not to exceed the amount allowed by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed four per month.
(o)The electronic benefits transfer system shall be designed to ensure that recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges.
(p)A county shall exempt an individual from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship. Hardship includes, but is not limited to, the incurrence of late charges on an individuals housing payments.
(q)A county shall use information provided by the department to inform recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 of all of the following:
(1)The methods of electronic delivery of benefits available, including distribution of benefits through the electronic benefits transfer system or direct deposit pursuant to Section 11006.2.
(2)Applicable fees and charges, including surcharges, consumer and privacy protections, and liability for theft associated with the electronic benefits transfer system.
(3)How to avoid fees and charges, including opting for delivery of benefits by direct deposit and using the electronic benefits transfer card solely at surcharge free locations.
(4)Where to withdraw benefits without a surcharge when using the electronic benefits transfer system.
(5)That a recipient may authorize any available method of electronic delivery of benefits and instructions regarding how the recipient may select or change his or her preferred method of electronic delivery of benefits and that the recipient shall be given the opportunity to select the method prior to the first payment.
(6)That a recipient may be entitled to an alternative method of delivery if the recipient demonstrates an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier pursuant to subdivision (d) and instructions regarding how to determine whether the recipient qualifies for an alternative method of delivery.
(7)That a recipient may be entitled to an exemption from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship pursuant to subdivision (o) and instructions regarding how to determine whether the recipient qualifies for the exemption.
(r)A county is in compliance with subdivision (q) if it provides the recipient a copy of the information developed by the department. A county may provide a recipient information, in addition to the copy of the information developed by the department, pursuant to subdivision (q), either verbally or in writing, if the county determines the additional information will benefit the recipients understanding of the information provided.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a)To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b)To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(c)All reasonable measures shall be taken in order to ensure that recipients have access to electronically issued benefits through systems such as including, but not limited to, automated teller machines, point-of-sale devices, or other devices that accept electronic benefits transfer transactions. Benefits provided under Chapter 2 (commencing with Section 11200) of Part 3 shall be staggered over a period of three calendar days, unless a county requests a waiver from the department and the waiver is approved, or in cases of hardship pursuant to subdivision (p).
(d)The system shall provide for reasonable access to benefits to recipients who demonstrate an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier. These alternative methods shall conform to the requirements of the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101, et seq.), including reasonable accommodations for recipients who, because of physical or mental disabilities, are unable to operate or otherwise make effective use of the electronic benefits transfer system.
(e)The system shall permit a recipient the option to choose a personal identification number, also known as a PIN number, to assist the recipient to remember his or her number in order to allow access to benefits. Whenever an institution, authorized representative, or other third party not part of the recipient household or assistance unit has been issued an electronic benefits transfer card, either in lieu of, or in addition to, the recipient, the third party shall have a separate card and personal identification number. At the option of the recipient, he or she may designate whether restrictions apply to the third partys access to the recipients benefits. At the option of the recipient head of household or assistance unit, the county shall provide one electronic benefits transfer card to each adult member to enable them to access benefits.
(f)The system shall have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to access, over the telephone, the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(g)The system shall have an Internet Web site that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to view the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(h)In addition to the ability to receive transaction history detail pursuant to subdivisions (f) and (g), a county human services agency shall make available to an authorized representative or head of household, at no additional cost to the authorized representative or head of household, all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received by the agency.
(i)(1)A recipient shall not incur any loss of electronic benefits after reporting that his or her electronic benefits transfer card or personal identification number has been lost or stolen. The system shall provide for the prompt replacement of lost or stolen electronic benefits transfer cards and personal identification numbers. Electronic benefits for which the case was determined eligible and that were not withdrawn by transactions using an authorized personal identification number for the account shall also be promptly replaced.
(2)A recipient shall not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT electronic benefits transfer card issued to the recipient or authorized third party to directly access the benefits. Benefits taken as described in this paragraph shall be promptly replaced in accordance with the protocol established by the department pursuant to paragraph (3).
(3)The State Department of Social Services shall establish a protocol for recipients to report electronic theft of cash benefits that minimizes the burden on recipients, ensures prompt replacement of benefits in order to minimize the harm to recipients, and ensures program integrity. This protocol may include the automatic replacement of benefits without the need for recipient reporting and verification.
(j)Electronic benefits transfer system consumers shall be informed on how to use electronic benefits transfer cards, how to protect their cards from misuse, and where consumers can use their cards to withdraw benefits without incurring a fee, charge, or surcharge.
(k)The electronic benefits transfer system shall be designed to inform recipients when the electronic benefits transfer system does not function or is expected not to function for more than a one-hour period between 6 a.m. and midnight during any 24-hour period. This information shall be made available in the recipients preferred language if the electronic benefits transfer system vendor contract provides for services in that language.
(l)Procedures shall be developed for error resolution.
(m)No A fee shall not be charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the electronic benefits transfer system.
(n)Except for CalFresh transactions, a recipient may be charged a fee, not to exceed the amount allowed by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed four per month.
(o)The electronic benefits transfer system shall be designed to ensure that recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges.
(p)A county shall exempt an individual from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship. Hardship includes, but is not limited to, the incurrence of late charges on an individuals housing payments.
(q)A county shall use information provided by the department to inform recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 of all of the following:
(1)The methods of electronic delivery of benefits available, including distribution of benefits through the electronic benefits transfer system or direct deposit pursuant to Section 11006.2.
(2)Applicable fees and charges, including surcharges, consumer and privacy protections, and liability for theft associated with the electronic benefits transfer system.
(3)How to avoid fees and charges, including opting for delivery of benefits by direct deposit and using the electronic benefits transfer card solely at surcharge free locations.
(4)Where to withdraw benefits without a surcharge when using the electronic benefits transfer system.
(5)That a recipient may authorize any available method of electronic delivery of benefits and instructions regarding how the recipient may select or change his or her preferred method of electronic delivery of benefits and that the recipient shall be given the opportunity to select the method prior to the first payment.
(6)That a recipient may be entitled to an alternative method of delivery if the recipient demonstrates an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier pursuant to subdivision (d) and instructions regarding how to determine whether the recipient qualifies for an alternative method of delivery.
(7)That a recipient may be entitled to an exemption from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship pursuant to subdivision (o) and instructions regarding how to determine whether the recipient qualifies for the exemption.
(r)A county is in compliance with subdivision (q) if it provides the recipient a copy of the information developed by the department. A county may provide a recipient information, in addition to the copy of the information developed by the department, pursuant to subdivision (q), either verbally or in writing, if the county determines the additional information will benefit the recipients understanding of the information provided.
|
Date
|
Status
|
|---|---|
| Aug 31, 2017 | Ordered to inactive file on request of Assembly Member Calderon. |
| Aug 24, 2017 | From consent calendar on motion of Assembly Member Calderon. |
| Aug 24, 2017 | Read second time. Ordered to consent calendar. |
| Aug 23, 2017 | From committee: Do pass. Ordered to consent calendar. (Ayes 15. Noes 0.) (August 23). |
| Aug 21, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jun 14, 2017 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 13). Re-referred to Com. on APPR. |
| Jun 1, 2017 | Referred to Com. on HUM. S. |
| May 23, 2017 | In Assembly. Read first time. Held at Desk. |
| May 22, 2017 | Read third time. Passed. (Ayes 37. Noes 0. Page 1149.) Ordered to the Assembly. |
| May 16, 2017 | Read second time. Ordered to consent calendar. |
| May 15, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| May 4, 2017 | Set for hearing May 15. |
| Apr 27, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 26, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 850.) (April 25). |
| Mar 31, 2017 | Set for hearing April 25. |
| Mar 29, 2017 | Re-referred to Com. on HUMAN S. |
| Mar 23, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 9, 2017 | Referred to Com. on RLS. |
| Feb 21, 2017 | From printer. May be acted upon on or after March 23. |
| Feb 17, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 23, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 13, 2017 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Human Services |
Passed |
|
| May 22, 2017 | Consent Calendar 2nd SB675 | Senate Floor |
Passed |
|
| Apr 25, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Human Services |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| california grocers association, co-sponsors | ** Support | Jun 8, 2017 |
| United Food And Commercial Workers Western States Council | ** Support | May 16, 2017 |
| western center on law and poverty, co-sponsors | ** Support | Jun 8, 2017 |
SENATE THIRD READING
STR Bill Id:SB 675
Author:(Skinner)
As Amended Ver:August 21, 2017
Majority vote
SENATE VOTE: 37-0
Committee | Votes | Ayes | Noes |
Human Services | 6-0 | Rubio, Choi, Arambula, Reyes, Mark Stone, Thurmond | |
Appropriations | 15-0 | Gonzalez Fletcher, Bigelow, Bocanegra, Bonta, Brough, Calderon, Chau, Eggman, Fong, Friedman, Gallagher, Gray, Jones-Sawyer, Obernolte, Reyes |
SUMMARY: Requires the electronic benefits transfer (EBT) system to comply with certain requirements when a CalFresh recipient uses his or her benefits to purchase food through an online transaction.
Specifically, this bill:
- Requires the EBT system, to the extent feasible and permitted by federal law and individual program rules, or pursuant to a waiver from the United States Department of Agriculture (USDA) necessary to ensure consumer protection, to do the following:
- Limit the purchase of food through an online transaction to retailers that are authorized to accept CalFresh benefits by the USDA and that: provide reasonable access to return or exchange food within four hours of receipt of the food, meet state and local food safety requirements, and provide a signed in-person confirmation of delivery, as specified; and
- Prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits through the EBT system.
- Specifies that if a fee is charged for the delivery of food, the recipient must be informed in advance of the fee being charged and agree to pay the delivery fee with funds other than CalFresh benefits.
- Requires a fee to be reimbursed immediately if an in-person confirmation of delivery, as specified by the provisions of this bill, is not secured.
- Defines "retailer" as a grocery establishment as defined in current law, a grocery store as defined in current law, a commissary, a community-supported agriculture program, as defined in current law, or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve CalFresh recipients who are elderly, homeless, or have disabilities through the CalFresh Restaurant Meals Program.
- Defines "commissary" as a store that sells food to the personnel or workers at a military post.
- Makes technical changes.
EXISTING LAW:
- 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.)
- 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.)
- Establishes the Restaurant Meals Program under the SNAP program to allow eligible recipients who are homeless, elderly, or living with disabilities to purchase hot, prepared food from participating restaurants. (7 United States Code. Section 2020)
- Defines "grocery establishment" as a retail store in this state that is over 15,000 square feet in side and that sells primarily household foodstuffs for offsite consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. Requires other household supplies or other products to be secondary to the primary purpose of food sales. Further states that a grocery establishment does not include a retail store that has ceased operations for six months or more. (Labor Code 2502 (d))
FISCAL EFFECT: According to the Assembly Appropriations Committee, on August 23, 2017, this bill may result in minor and absorbable costs to DSS.
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 members who are elderly or living with disabilities 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 purchased 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. The average monthly benefit for a CalFresh recipient is $149.05 per month, or $4.96 per person per day.
CalFresh benefits may only be used on foods for human consumption or seeds and plants that can be used to grow food for household use. CalFresh program rules specifically exclude the purchase of non-food items such as pet food, soaps, paper products, household supplies, grooming items and cosmetics. Benefits also exclude the purchase of alcohol and tobacco products, vitamins and medicines, or any food that is eaten in the store or that is marketed to be heated in the store, with the exception of a restaurant located in a county that is approved to operate a restaurant meals program.
Restaurant Meals Program: CalFresh recipients are limited to purchasing only nonprepared food items, however people who are homeless, elderly, or who have disabilities are less able to use SNAP food benefits in traditional ways due to the lack of necessary tools, appliances or physical abilities required to prepare their own meals. As a result of this, SNAP allows states to choose whether or not to offer a Restaurant Meals Program option, which allows SNAP recipients to purchase hot, prepared food in authorized restaurants. California operates the largest Restaurant Meals Program and has allowed counties to utilize Restaurant Meals Programs as an option since 2003.
Online food purchases: USDA pilot project: In September 2016, the USDA Food and Nutrition Service (FNS) released a request for retailer volunteers to participate in a two-year SNAP Online Purchasing Pilot project in order to test the feasibility and implications of allowing retail food stores to accept SNAP benefits through online transactions, with the ultimate goal of offering SNAP purchases through online transactions nationwide. In January 2017, FNS announced the selection of seven retailers for the initial launch of the pilot in seven states, including Alabama, Iowa, Maryland, New Jersey, New York, Oregon, and Washington. Selected retailers are currently working on EBT system enhancements to enable SNAP online transaction; FNS anticipates the pilot to launch in early 2018 once all system enhancements have been completed. The pilot project allows SNAP participants to use their benefits to purchase strictly eligible items online, and not pay for service or delivery charges.
Need for this bill: According to the author's office, "Increasingly folks are turning to shopping online for whatever they need. Recognizing this trend, the federal government started a pilot program to allow EBT recipients to use their EBT cards to shop online. [This bill] adds consumer protections for EBT users who buy food online by limiting orders to stores that allow food to be exchanged, that have safeguards to keep food fresh, and that offer replacement if food is stolen during delivery. [This bill] will ensure that food purchases made online using an EBT card do not exacerbate existing problems; and establishes consumer protections for EBT users by ensuring retailers: meet state and local food safety requirements, provide reasonable access to return or exchange food, and offer in-person confirmation of delivery."
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 2014 through 2018.
AB 1614 (Stone), Chapter 720, Statutes of 2014, required users of EBT cards to be provided access to transaction history via toll-free telephone hotline and internet website, among other methods and required the EBT system to be designed so that users are informed when the system is inoperative and funds are not accessible, as specified.
AB 1280 (Perez), Chapter 557, Statutes of 2013, authorized public assistance payments to be directly deposited by electronic fund transfer to a qualifying account and required those accounts to meet specified consumer protection regulations.
AB 2035 (Bradford), Chapter 319, Statutes of 2012, provided that a recipient would not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits.
Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089 FN: 0001418
Date of Hearing: August 23, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 675
Author:(Skinner) – As Amended Ver:August 21, 2017
Policy Committee: | Human Services | Vote: | 6 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the electronic benefits transfer (EBT) system to comply with certain requirements when a CalFresh recipient uses his or her benefits to purchase food through an online transaction. Specifically, this bill:
- Requires the EBT system, to the extent feasible and permitted by federal law and program rules, or pursuant to a waiver from the United States Department of Agriculture (USDA), to do the following:
- Limit the purchase of food through an online transaction to retailers that are authorized to accept CalFresh benefits by the USDA, and that provide reasonable access to return or exchange food within four hours of receipt of the food, meet state and local food safety requirements, and provide a signed in-person confirmation of delivery, as specified.
- Prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits through the EBT system.
- Specifies that if a fee is charged for the delivery of food, the recipient must be informed in advance of the fee being charged and must agree to pay the delivery fee with funds other than CalFresh benefits, and requires a fee to be reimbursed immediately if an in-person confirmation of delivery, as specified, is not secured.
- Defines “retailer” as a grocery establishment or grocery store as defined in current law, a commissary, a community-supported agricultural program as defined in current law, or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve CalFresh recipients who are elderly or homeless, or who have disabilities, through the CalFresh Restaurant Meals Program.
FISCAL EFFECT:
Minor and absorbable costs to the Department of Social Services.
COMMENTS:
- Purpose. According to the author’s office, “Increasingly folks are turning to shopping online for whatever they need. Recognizing this trend, the federal government started a pilot program to allow EBT recipients to use their EBT cards to shop online. This bill adds consumer protections for EBT users who buy food online by limiting orders to stores that allow food to be exchanged, that have safeguards to keep food fresh, and that offer replacement if food is stolen during delivery. This bill will ensure that food purchases made online using an EBT card do not exacerbate existing problems; and establishes consumer protections for EBT users by ensuring retailers meet state and local food safety requirements, provide reasonable access to return or exchange food, and offer in-person confirmation of delivery."
This bill anticipates the new federal authority to expand access to SNAP benefits via online retailers. In addition to meeting federal standards, approved online retailers will be expected to comply with the consumer protection provisions provided in the bill, as well as other state-specific mandates. According to the sponsor, a federal waiver may be necessary in order to ensure consumer protections provided in this bill.
- Background. California’s EBT system automates the delivery, redemption, and reconciliation of public assistance benefits, including CalFresh. EBT cards function like bank-issued ATM cards, and can be used at more than 15,000 businesses and more than 54,000 ATMs in California. Unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn as cash. Additionally, unlike ATM and credit cards, EBT cards cannot be used for any online transactions.
CalFresh benefits are funded entirely by the federal government through the Supplemental Nutrition Assistance Program (SNAP). The 2014 Farm Bill mandated a pilot to test the feasibility and implications of allowing retail food stores to accept SNAP benefits through online transactions. The pilot seeks to ensure that the foundational infrastructure necessary for running SNAP transactions online operates in a safe and secure manner.
In January 2017, seven retail firms were selected to take part in the two-year pilot in seven states, including Alabama, Iowa, Maryland, New Jersey, New York, Oregon, and Washington. Online SNAP transactions within the pilot project are required to be secure, private, easy to use, and provide similar support to that found for SNAP transactions in a retail store. Benefits cannot be used to pay for fees of any type, such as delivery, service, or convenience fees.
- Prior Legislation. AB 1614 (Stone), Chapter 720, Statutes of 2014, required users of EBT cards to be provided access to transaction history via toll-free telephone hotline and internet website, among other methods and required the EBT system to be designed so that users are informed when the system is inoperative and funds are not accessible.
AB 1280 (Perez), Chapter 557, Statutes of 2013, authorized public assistance payments to be directly deposited by electronic fund transfer to a qualifying account and required those accounts to meet specified consumer protection regulations.
AB 2035 (Bradford), Chapter 319, Statutes of 2012, provided that a recipient would not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: June 13, 2017
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Blanca Rubio, Chair
SBPCA Bill Id:SB 675
Author:(Skinner) – As Amended Ver:April 27, 2017
SENATE VOTE: 37-0
SUBJECT: Electronic benefits transfer system
SUMMARY: Requires the electronic benefits transfer (EBT) system to comply with certain requirements when a CalFresh recipient uses his or her benefits to purchase food through an online transaction.
Specifically, this bill:
- Requires the EBT system, to the extent feasible and permitted by federal law and individual program rules, or pursuant to a waiver from the United States Department of Agriculture (USDA) necessary to ensure consumer protection, to do the following:
- Limit the purchase of food through an online transaction to retailers that: provide reasonable access to return or exchange food within four hours of receipt of the food, meet state and local food safety requirements, and provide a signed in-person confirmation of delivery, as specified; and
- Prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits through the EBT system.
- Specifies that if a fee is charged for the delivery of food, the recipient must be informed in advance of the fee being charged and agree to pay the delivery fee with funds other than CalFresh benefits.
- Requires a fee to be reimbursed immediately if an in-person confirmation of delivery, as specified by the provisions of this bill, is not secured.
- Defines “retailer” as a grocery establishment as defined in current law, or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve CalFresh recipients who are elderly, homeless, or living with disabilities through the CalFresh Restaurant Meals Program.
- Makes technical changes.
EXISTING LAW:
- 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.)
- 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.)
- Establishes the Restaurant Meals Program under the SNAP program to allow eligible recipients who are homeless, elderly, or living with disabilities to purchase hot, prepared food from participating restaurants. (7 U.S.C. § 2020)
- Defines “grocery establishment” as a retail store in this state that is over 15,000 square feet in side and that sells primarily household foodstuffs for offsite consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. Requires other household supplies or other products to be secondary to the primary purpose of food sales. Further states that a grocery establishment does not include a retail store that has ceased operations for six months or more. (LAB 2502 (d))
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 members who are elderly or living with disabilities 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 purchased 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. The average monthly benefit for a CalFresh recipient is $149.05 per month, or $4.96 per person per day.
CalFresh benefits may only be used on foods for human consumption or seeds and plants that can be used to grow food for household use. CalFresh program rules specifically exclude the purchase of non-food items such as pet food, soaps, paper products, household supplies, grooming items and cosmetics. Benefits also exclude the purchase of alcohol and tobacco products, vitamins and medicines, or any food that is eaten in the store or that is marketed to be heated in the store, with the exception of a restaurant located in a county that is approved to operate a restaurant meals program.
Restaurant Meals Program: CalFresh recipients are limited to purchasing only nonprepared food items, however people who are homeless, elderly, or who have disabilities are less able to use SNAP food benefits in traditional ways due to the lack of necessary tools, appliances or physical abilities required to prepare their own meals. As a result of this, SNAP allows states to choose whether or not to offer a Restaurant Meals Program option, which allows SNAP recipients to purchase hot, prepared food in authorized restaurants. California operates the largest Restaurant Meals Program and has allowed counties to utilize Restaurant Meals Programs as an option since 2003.
Online food purchases: USDA pilot project: In September 2016, the USDA Food and Nutrition Service (FNS) released a request for retailer volunteers to participate in a two-year SNAP Online Purchasing Pilot project in order to test the feasibility and implications of allowing retail food stores to accept SNAP benefits through online transactions, with the ultimate goal of offering SNAP purchases through online transactions nationwide. In January 2017, FNS announced the selection of seven retailers for the initial launch of the pilot in seven states, including Alabama, Iowa, Maryland, New Jersey, New York, Oregon, and Washington. Selected retailers are currently working on EBT system enhancements to enable SNAP online transaction; FNS anticipates the pilot to launch in early 2018 once all system enhancements have been completed. The pilot project allows SNAP participants to use their benefits to purchase strictly eligible items online, and not pay for service or delivery charges.
Need for this bill: According to the author’s office, “Increasingly folks are turning to shopping online for whatever they need. Recognizing this trend, the federal government started a pilot program to allow EBT recipients to use their EBT cards to shop online. [This bill] adds consumer protections for EBT users who buy food online by limiting orders to stores that allow food to be exchanged, that have safeguards to keep food fresh, and that offer replacement if food is stolen during delivery. [This bill] will ensure that food purchases made online using an EBT card do not exacerbate existing problems; and establishes consumer protections for EBT users by ensuring retailers: meet state and local food safety requirements, provide reasonable access to return or exchange food, and offer in-person confirmation of delivery.
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 2014 through 2018.
AB 1614 (Stone), Chapter 720, Statutes of 2014, required users of EBT cards to be provided access to transaction history via toll-free telephone hotline and internet website, among other methods and required the EBT system to be designed so that users are informed when the system is inoperative and funds are not accessible, as specified.
AB 1280 (Perez), Chapter 557, Statutes of 2013, authorized public assistance payments to be directly deposited by electronic fund transfer to a qualifying account and required those accounts to meet specified consumer protection regulations.
AB 2035 (Bradford), Chapter 319, Statutes of 2012, provided that a recipient would not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits.
REGISTERED SUPPORT / OPPOSITION:
Support
California Grocers Association, Co-sponsors
United Food and Commercial Workers Western States Council, Co-sponsors
Western Center on Law and Poverty, Co-sponsors
Opposition
None on file.
Analysis Prepared by: Kelsy Castillo / HUM. S. / (916) 319-2089
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 675
:
SENATE HUMAN SERVICES COMMITTEE: 5-0, 4/25/17
AYES: Wiener, Berryhill, Glazer, Newman, Nguyen
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SOURCE: California Grocers Association
United Food and Commercial Workers Western States Council
Western Center on Law and Poverty
DIGEST:
This bill requires the electronic benefits transfer (EBT) system used to distribute CalFresh and other public assistance benefits to only permit online purchase of food from retailers that comply with various specified requirements. This bill requires the EBT system to prohibit payment of delivery fees for online food purchases using CalFresh food benefits and creates other requirements for online food purchases via the EBT system.
Existing law:
- Establishes, under 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 (FPL) and is a substantial limiting factor in permitting a recipient to obtain a more nutritious diet. (7 CFR 271.1; 7 CFR 273.9)
- Establishes in state statute the CalFresh program to administer the provisions of federal SNAP benefits to families and individuals meeting specific criteria. (WIC 18900, et seq.)
- Establishes in the Electronic Benefits Transfer Act a system for the distribution and use of public assistance benefits, such as CalFresh, and requires EBT access to be provided through automated teller machines (ATMs), point-of-sale devices and other devices that accept EBT transactions. (WIC 10065, et seq.)
- Defines “grocery establishment” to mean a retail store that is larger than 15,000 square feet in size and that sells primarily household foodstuffs for offsite consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (Labor Code 2502 (d))
- Requires the USDA to approve retail food stores to accept SNAP benefits through on-line transactions and requires state agencies to ensure that recipients of SNAP recipients can use their benefits on-line, unless a demonstration project finds that implementation in all state is not in the best interest of SNAP, as specified. (7 CFR 2016(k))
This bill:
- Requires the EBT system to limit the purchase of food through an online transaction only to retailers that comply with all of the following:
- Provide reasonable access to return or exchange the food within four hours of receipt of the food.
- Meet state and local food safety requirements.
- Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
- Requires the EBT system to prohibit the use of CalFresh benefits to pay a fee for the delivery of food purchased using CalFresh benefits.
- Requires the EBT system to require that if a fee is charged for the delivery of food, the recipient must be informed in advance of the fee being charged and agree to pay for the delivery fee with funds other than CalFresh benefits.
- Requires a delivery fee to be reimbursed immediately if an in-person confirmation of delivery, as specified, is not secured.
- Defines “retailer” to mean a grocery establishment, as defined in the Labor Code or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients through the CalFresh Restaurant Meals Program.
- Makes other technical amendments.
Background
Per the author, “Increasingly California consumers are turning to shopping online for purchases of goods and services. Recognizing this trend, the federal government started a pilot program to allow EBT recipients to use their EBT cards to shop online. SB 675 adds consumer protections for EBT consumers who make food purchases online by limiting stores allowed to accept online EBT purchases to only those that allow food to be exchanged during a four-hour window, that have safeguards to keep food fresh and safe, and that offer timely replacement of food if it is stolen during delivery.”
This bill is being pursued in anticipation of new federal authority to expand access to SNAP benefits via online retailers. Retailers providing online SNAP benefits will be required to get approval from FNS, as is currently the case. In addition to meeting federal standards, approved online retailers will be expected to comply with the consumer protection provisions provided in the bill, as well as other state-specific mandates. According to the sponsor, a federal waiver may be necessary in order to ensure consumer protections provided in this bill.
Food insecurity
Food security is defined as access by all members of the household at all times to enough food for an active, healthy life. Food insecure households are those in which the children or adults or both report limited access to food resulting in reduced quality or variety of diet (low food security), or reduced food intake or disrupted eating patterns (very low food security).
According to a report issued by the USDA, 14 percent of American households were food insecure at least some time during 2014, including 5.6 percent with very low food security. Another USDA report indicates that children living in a food insecure household face higher risks of health, psychosocial, and developmental problems compared to children in food secure households.
CalFresh
The CalFresh program provides qualified low-income households with EBT cards which are used to purchase food and seeds or plants that grow food for human consumption. CalFresh is California’s version of the federal SNAP program. It is administered by the California Department of Social Services at the state level. California’s 58 counties are responsible for administering the program at the local level. CalFresh benefits are 100% federally funded and national eligibility standards and benefit levels are established by the federal government.
To participate in CalFresh, households must meet certain income-eligibility standards. Generally, households must have gross income below 130 percent of the FPL, which is $26,208 for a family of three, and net income (after certain deductions) at or below 100 percent FPL, which is $20,160 for a family of three. A household with an elderly person or a person who is receiving certain types of disability payments only has to meet the net income test. 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.
Approved Retailers
The Food and Nutrition Service of the USDA licenses qualified retailers to accept SNAP benefits, provides information to retailers, monitors retailers to make sure they are following the rules, and withdraws or disqualifies retailers who no longer qualify to be in the program or who have broken program rules.
SNAP laws and regulations require that retail food stores must meet one of the following criteria:
- The store must offer for sale, on a continuous basis, at least three varieties of qualifying foods in each of the four categories of staple foods: breads/cereals, fruit/vegetables, meat/fish/poultry and dairy products. At least two of these categories must include perishable foods.
- The store must have more than 50 percent of its total gross sales in staple foods, not counting food items such as coffee, tea, cocoa, soda, candy, condiments, spices, and prepared, ready-to-eat foods.
Electronic Benefits Transfer (EBT)
California’s EBT system automates the delivery, redemption, and reconciliation of public assistance benefits such as CalWORKs and CalFresh. EBT cards function like a bank-issued ATM cards. EBT cardholders can slide the card through a point-of-sale device, or use the card at an ATM. California EBT cards can be used at more than 15,000 businesses and more than 54,000 ATMs in California. Unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn as cash. Additionally, unlike ATM and credit cards, EBT cards cannot be used for any online transactions.
The state’s Office of Systems Integration (OSI) is charged with development and maintenance of California’s EBT system. Changes to the EBT system, such as recently implemented online access to transaction history and account balances, are implemented and overseen by OSI.
Federal Pilot Project for Online SNAP Purchases
The federal government has already taken steps toward allowing online purchase of food product via SNAP. The 2014 Farm Bill mandated a pilot to test the feasibility and implications of allowing retail food stores to accept SNAP benefits through online transactions. The stated goal for the pilot is to ensure that the foundational infrastructure necessary for running SNAP transactions online operates in a safe and secure manner.
Seven retail firms were selected to take part in the two-year pilot, which is slated to begin this summer. Online SNAP transactions within the pilot project are required to be secure, private, easy to use, and provide similar support to that found for SNAP transactions in a retail store. Benefits cannot be used to pay for fees of any type, such as delivery, service, or convenience fees.
“Online purchasing is a potential lifeline for SNAP participants living in urban neighborhoods and rural communities where access to healthy food choices can be limited,” USDA Secretary Tom Vilsack said. “We're looking forward to being able to bring the benefits of the online market to low-income Americans participating in SNAP.”
Related/Prior Legislation
AB 1614 (Stone, Chapter 720, Statutes of 2014) required users of EBT cards to be provided access to transaction history via toll-free telephone hotline and Internet Web site, among other methods. AB 1614 also requires the EBT system to be designed so that users are informed when the system is down and funds are not accessible, as specified. This bill requires users of the EBT card to be informed of where they can use their cards to withdraw funds without fees, and other information regarding fees.
AB 1280 (Perez, Chapter 557, Statutes of 2013) authorized public assistance payments to be directly deposited by electronic fund transfer to a qualifying account and required those accounts to meet specified consumer protection regulations.
AB 2035 (Bradford, Chapter 319, Statutes of 2012) provided that a recipient would not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized third party to directly access the benefits.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Grocers Association (co-source)
United Food and Commercial Workers Western States Council (co-source)
Western Center on Law and Poverty (co-source)
OPPOSITION: (Verified 5/15/17)
None received
5/16/17 16:09:29
**** END ****
SENATE COMMITTEE ON HUMAN SERVICES
Senator Wiener, Chair
2017 - 2018 Regular
Bill No: SB 675
Author: | Skinner | ||
Version: | March 23, 2017 | Hearing Date: | April 25, 2017 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Taryn Smith | ||
Subject: Electronic benefits transfer system
SUMMARY
This bill requires the electronic benefits transfer (EBT) system used to distribute CalFresh and other public assistance benefits to only permit online purchase of food from retailers that comply with various specified requirements. The bill requires the EBT system to prohibit payment of delivery fees for online food purchases using CalFresh food benefits. This bill also requires that CalFresh recipients must be informed in advance of a delivery fee and that the recipient must agree to pay the fee with cash benefits, as specified.
ABSTRACT
Existing law:
- Establishes under 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 a substantial limiting factor in permitting a recipient to obtain a more nutritious diet. (7 CFR 271.1; 7 CFR 273.9)
- Establishes in state statute the CalFresh program to administer the provisions of federal SNAP benefits to families and individuals meeting specific criteria. (WIC 18900, et seq.)
- Establishes in the Electronic Benefits Transfer (EBT) Act a system for the distribution and use of public assistance benefits, such as CalFresh, and requires EBT access to be provided through automated teller machines (ATMs), point-of-sale devices and other devices that accept EBT transactions. (WIC 10065, et seq.)
- Defines “grocery establishment” to mean a retail store that is larger than 15,000 square feet in size and that sells primarily household foodstuffs for offsite consumption, including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods. (Labor Code 2502 (d))
- Requires USDA to approve retail food stores to accept SNAP benefits through on-line transactions and requires state agencies to ensure that recipients of SNAP recipients can use their benefits on-line, unless a demonstration project finds that implementation in all state is not in the best interest of SNAP, as specified. (7 CFR 2016(k))
This bill:
- Requires the EBT system to limit the purchase of food through an online transaction only to retailers that comply with all of the following:
- Provide reasonable access to return or exchange the food within four hours of receipt of the food.
- Meet state and local food safety requirements.
- Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
- Requires the EBT system to prohibit a fee from being charged for the delivery of food purchased using CalFresh program food benefits.
- Requires the EBT system to require that if a fee is charged for the delivery of food purchased with cash benefits, the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits.
- Requires a delivery fee to be reimbursed immediately if an in-person confirmation of delivery, as specified, is not secured.
- Defines “retailer” to mean a grocery establishment, as defined in the Labor Code or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients through the CalFresh Restaurant Meals Program.
- Makes other technical amendments.
FISCAL IMPACT
This bill has not been analyzed by fiscal committee.
BACKGROUND AND DISCUSSION
Purpose of the bill:
Per the author, “Increasingly California consumers are turning to shopping online for purchases of goods and services. Recognizing this trend, the federal government started a pilot program to allow EBT recipients to use their EBT cards to shop online. SB 675 adds consumer protections for EBT consumers who make food purchases online by limiting stores allowed to accept online EBT purchases to only those that allow food to be exchanged during a four-hour window, that have safeguards to keep food fresh and safe, and that offer timely replacement of food if it is stolen during delivery.”
Food insecurity
Food security is defined as access by all members of the household at all times to enough food for an active, healthy life. Food insecure households are those in which the children or adults or both report limited access to food resulting in reduced quality or variety of diet (low food security), or reduced food intake or disrupted eating patterns (very low food security).
According to a report issued by the USDA, 14 percent of American households were food insecure at least some time during 2014, including 5.6 percent with very low food security.[1] Another USDA report indicates that children living in a food insecure household face higher risks of health, psychosocial, and developmental problems compared to children in food secure households.[2]
CalFresh
The CalFresh program provides qualified low-income households with EBT cards which are used to purchase food and seeds or plants that grow food for human consumption. CalFresh is California’s version of the federal SNAP program. It is administered by CDSS at the state level. California’s 58 counties are responsible for administering the program at the local level. CalFresh benefits are 100% federally funded and national eligibility standards and benefit levels are established by the federal government.
To participate in CalFresh, households must meet certain income-eligibility standards. Generally, households must have gross income below 130 percent of the federal poverty level (FPL), which is $26,208 for a family of three, and net income (after certain deductions) at or below 100 percent FPL, which is $20,160 for a family of three. A household with an elderly person or a person who is receiving certain types of disability payments only has to meet the net income test. 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.
Approved Retailers
The Food and Nutrition Service of the U.S. Department of Agriculture (USDA) licenses qualified retailers to accept SNAP benefits, provides information to retailers, monitors retailers to make sure they are following the rules, and withdraws or disqualifies retailers who no longer qualify to be in the program or who have broken program rules.
SNAP laws and regulations require that retail food stores must meet one of the follow criteria:
- The store must offer for sale, on a continuous basis, at least three varieties of qualifying foods in each of the four categories of staple foods: breads/cereals, fruit/vegetables, meat/fish/poultry and dairy products. At least two of these categories must include perishable foods.
- The store must have more than 50 percent of its total gross sales in staple foods, not counting food items such as coffee, tea, cocoa, soda, candy, condiments, spices, and prepared, ready-to-eat foods.
Electronic Benefit Transfer (EBT)
California’s EBT system automates the delivery, redemption, and reconciliation of public assistance benefits such as CalWORKs and CalFresh. EBT cards function like a bank-issued ATM cards. EBT cardholders can slide the card through a point-of-sale device, or use the card at an ATM. California EBT cards can be used at more than 15,000 businesses and more than 54,000 ATMs in California. Unlike other types of benefits that may be accessed through an EBT card, CalFresh benefits cannot be withdrawn as cash. Additionally, unlike ATM and credit cards, EBT cards cannot be used for any online transactions.
The state’s Office of Systems Integration (OSI) is charged with development and maintenance of California’s EBT system. Changes to the EBT system, such as recently implemented online access to transaction history and account balances, are implemented and overseen by OSI.
Federal Pilot Project for Online SNAP Purchases
The Federal government has already taken steps toward allowing online purchase of food product via SNAP. The 2014 Farm Bill mandated a pilot to test the feasibility and implications of allowing retail food stores to accept SNAP benefits through online transactions. The stated goal for the pilot is to ensure that the foundational infrastructure necessary for running SNAP transactions online operates in a safe and secure manner.
Seven retail firms were selected to take part in the two-year pilot, which is slated to begin this summer. Online SNAP transactions within the pilot project are required to be secure, private, easy to use, and provide similar support to that found for SNAP transactions in a retail store. Benefits cannot be used to pay for fees of any type, such as delivery, service, or convenience fees.
“Online purchasing is a potential lifeline for SNAP participants living in urban neighborhoods and rural communities where access to healthy food choices can be limited," USDA Secretary Tom Vilsack said. "We're looking forward to being able to bring the benefits of the online market to low-income Americans participating in SNAP."[3]
Related legislation:
AB 1614 (Stone, Chapter 720, Statutes of 2014) requires users of EBT cards to be provided access to transaction history via toll-free telephone hotline and internet website, among other methods. AB 1614 also requires the EBT system to be designed so that users are informed when the system is down and funds are not accessible, as specified. This bill requires users of the EBT card to be informed of where they can use their cards to withdraw funds without fees, and other information regarding fees.
AB 1280 (Perez, Chapter 557, Statutes of 2013) authorizes public assistance payments to be directly deposited by electronic fund transfer to a qualifying account and required those accounts to meet specified consumer protection regulations.
AB 2035 (Bradford, Chapter 319, Statutes of 2012) provides that a recipient would not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical EBT card issued to the recipient or authorized 3rd party to directly access the benefits.
COMMENTS
This bill is being pursued in anticipation of new federal authority to expand access to SNAP benefits via online retailers. Retailers providing online SNAP benefits will be required to get approval from FNS, as is currently the case. In addition to meeting federal standards, approved online retailers will be expected to comply with the consumer protection provisions provided in the bill, as well as other state-specific mandates. According to the sponsor, a federal waiver may be necessary in order to ensure consumer protections provided in this bill.
Recommended Committee amendments:
The committee recommends the following amendments in order to clarify that the federal waiver to permit online food purchases with CalFresh benefits would also preserve the consumer protections provided in the bill and to clarify the prohibition on use of CalFresh benefits to pay delivery fees:
WIC 10072.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a) To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b) (1) To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(2) (A) To the maximum extent feasible and to the extent permitted by federal law and the rules of the program providing the benefits, or pursuant to a waiver from the United States Department of Agriculture consistent with necessary to ensure the consumer protections provided in this paragraph, the electronic benefits transfer system shall do both of the following:
(i) Limit the purchase of food through an online transaction only to retailers that comply with all of the following:
(I) Provide reasonable access to return or exchange the food within four hours of receipt of the food.
(II) Meet state and local food safety requirements.
(III) Provide an in-person confirmation of delivery in which the signature of the person delivering the food and of the person receiving the food is secured and stored by the retailers.
(ii) (I) Prohibit the use of CalFresh benefits to pay a fee from being charged for the delivery of food purchased using CalFresh program food benefits through the electronic benefits transfer system.
(II) If a fee is charged for the delivery of food purchased with cash benefits, require that the recipient be informed in advance of the fee being charged and agree to pay for it with cash benefits the delivery fee with funds other than CalFresh benefits. This fee shall be reimbursed immediately if an in-person confirmation of delivery pursuant to subclause (III) of clause (i) is not secured.
(B) For the purposes of this subdivision, “retailer” shall mean a grocery establishment, as defined by subdivision (d) of Section 2502 of Part 9.5 of Division 2 of the Labor Code or a restaurant that has entered into a memorandum of understanding with a county human services agency to serve elderly, homeless, or disabled CalFresh recipients through the CalFresh Restaurant Meals Program.
POSITIONS
Support:
The Western Center on Law and Poverty/ UFCW Western States Council/
California Grocers Association (Sponsor)
Oppose:
None.
-- END –
http://www.ers.usda.gov/media/1896841/err194.pdf ↑
http://www.ers.usda.gov/media/155368/eib56_1_.pdf ↑
https://www.usda.gov/media/press-releases/2017/01/05/usda-announces-retailer-volunteers-snap-online-purchasing-pilot ↑
Discussed in Hearing
3MIN
Assembly Standing Committee on Human Services
Bill Author
Bill Co-Author(s):