Senate Bill S2369

                                 BILL NUMBER:  S2369               REVISED 03/24/09

 TITLE OF BILL :

An act to amend the social services law, in relation to the food stamp
program


 PURPOSE OF BILL :

To allow all potentially eligible NYS food stamp recipients to receive
the federally funded benefits to which they may be entitled.

 SUMMARY OF SPECIFIC PROVISIONS :

Amends section 95 of the Social Services law to require the Office of
Temporary and Disability Assistance or any other agency designated by
the Governor to apply for Federal Food Stamp Program/SNAP waivers that
would allow all eligible households to receive benefits. The office
will direct local social services districts to provide these federal
benefits to qualifying persons who must meet all program requirements,
including work requirements, other than those waived.

 JUSTIFICATION :

Federal Food Stamps (now SNAP) is the principal federal anti-hunger
              

program, with 100% of the benefits being paid for by the Federal
government New York is unusual, compared to most states, in that it
allows the local counties and New York City to administer the program
rather than having the state operate the program directly.

The Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (PRWORA) limited the receipt of Food Stamp/SNAP benefits to 3
months in a 3-year period for able-bodied adults without dependents
(ABAWDs) who are not working, participating in, and complying with the
requirements of a work program for 20 hours or more each week.

Individuals are exempt from this provision if they are:

* under 18 or 50 years of age or older,

* responsible for the care of a child or incapacitated household
member,

* medically certified as physically or mentally unfit for employment,
pregnant, or

* already exempt from the work requirements of the Food Stamp Act.

States may request a waiver of this provision for people in areas with
an unemployment rate above 10 percent or for those in an area with
insufficient jobs. States also have authority to exempt individuals
using the 15% exemption authorized by the Balanced Budget Act. In
2008, 38 States had Waivers from this provision (including NY State
with the exception of New York City). These rules create a significant
administrative burden for the state, due to the extra levels of
bureaucracy involved in tracking these individuals. As a result all
but four states (Vermont, Iowa, New Hampshire and Delaware) have
applied for waivers from this rule during this past year. Our State's
policy has been to apply for a waiver, and then allow each county to
decide whether or not to apply the more stringent work requirement.
New York City, in particular, has opted to restrict food stamp
availability.

Moving to a statewide waiver will not increase administrative costs,
in fact many states in their filed plans with the USDA referenced
administrative savings. Eliminating this restriction and moving to a
state-wide consistent plan will simplify the administrative tracking
and decrease the chance of Federal Quality Control Errors, saving the
State money.

Increased participation in Food Stamps decreases demands on emergency
food programs (which are significantly paid for by state and local
government), improved access to food decreased nutrition related
health costs, and each dollar in Food Stamp spending generates a $1.73
in economic activity in the local economy creating jobs and tax
revenues.

The ARRA of 2009 provides $295 million for SNAP/Food Stamp
administrative costs, almost all of it to states. The formula is based
on a combination of each states' shares of SNAP/Food Stamp households
in last 12 months and caseload increases in last 12 months. NYS has
seen a significant increase in Food Stamp participation in the last
year and anticipates even more growth in applications, hence NYS
receive a significant increase in Federal administrative dollars which
far exceed any administrative costs of this sub-population of
applicants.

The 2009 American Recovery and Reinvestment Act (ARRA) includes
provisions which expand the availability of Food Stamps/SNAP. Similar
expansions have been a part of the federal response to most
recessions, and for good reason: there is no more efficient way to
prime the economy's pump.

According to an econometric model of the US economy developed by
Moody's, every extra dollar that is distributed by the federal
government through the food stamp program generates $1.73 in gross
domestic product within the same year. (Mark Zandi, Testimony to
Congress, 1/6/2009 available at
http://www.economy.com/mark-zandi/documents/Economic Stimulus House
Plan 012109.pdf). The effects of increased food stamp assistance on
our economy are more immediate and more profound than personal income
tax rebates ($1.03 per dollar invested) or infrastructure spending
($1.59 per dollar invested). New York will have to utilize every
available tool to stave off the worst effects of this recession, which
includes deploying every dollar that is available through the
federally funded food stamp benefits program.

Under ARRA, the "three months in three years rule" has been lifted
until 2011 in order to facilitate the efficient distribution of food
stamp assistance. New York City has indicated an intention to continue
to restrict access to food stamp benefits, despite the proven economic
stimulus that result. The State of New York cannot afford to allow the
City of New York to continue to decline this infusion of federal
dollars.

If either the State or a county choose not to accept a particular food
stamp waiver, tens of millions of dollars in federal food stamps may
not be used at New York grocery stores and farmers' markets. This
reduced spending may reduce the number of entry level jobs in food
stores in distressed neighborhoods - jobs that could be filled by
former program participants.  Overburdened nonprofit food pantries and
soup kitchen are forced to feed additional hungry people even though a
federal program is available.

This bill would allow New York to maximize food stamps coming into our
communities, benefit our local economies, improve nutrition, reduce
hunger, provide additional markets for farmers, and reduce the burdens
on emergency food programs. By simplifying Food Stamp rules and
creating one policy statewide, it will further decrease Food Stamp
Administrative Error Rates.

 LEGISLATIVE HISTORY :

1999/00 A.7470A
2001/02 A.959
2003/04 A.514
2005/06 A.2655
2007/08 A.4046

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 REGULATION IMPACT :

The Office of Temporary and Disability Assistance will inform local
social services districts of approved federal waivers.

 EFFECTIVE DATE :
Immediate.