here - UFCW Western States Council

1107 9th Street Suite 700, Sacramento CA 95814
T. 916.442.0753 F. 916.442.7966
Sacramento Office
Elizabeth A. Landsberg
Director of Legislative Advocacy
Brian Augusta
Legislative Advocate
Jessica Bartholow
Legislative Advocate
Michael E. Herald
Legislative Advocate
Michael Moynagh
Legislative Advocate
May 21, 2014
The Honorable Alex Padilla
Member, California State Senate
State Capitol
Sacramento, California
RE: SB 270 (Padilla, De León, Lara) Support with Amendments
Dear Senator Padilla,
The Western Center on Law and Poverty represents California’s poorest residents in policy
and budget discussions affecting housing, health and public benefits, including the
Supplemental Nutrition Assistance Program (SNAP), the Women, Infant and Children
(WIC) Program. We are writing in support of Senate Bill 270 with amendments to clarify
exemptions to associated fees for consumers utilizing an Electronic Benefit Transfer (EBT)
or coupons issued through WIC.
SB 270 would encourage shoppers across California to use reusable bags by banning the use
of single-use, plastic carryout bags at checkout stands and requiring a 10-cent charge for
recycled paper bags and compostable bags. We appreciate the author’s consideration in
including an exemption for nutrition assistance program recipients. Exemptions to the 10cent charge for SNAP and WIC recipients will not only help prevent hardship to the poorest
Californians, they are required by federal law. We recommended changes that would
correct the bill’s reference to SNAP and clarify when the exemption should be given in
order to prevent complications in implementation. It is my understanding that you will be
amending the bill to reflect these considerations and so I am writing to express our
gratitude and support for the bill moving forward.
Background
Electronic Benefit Transfer cards are used to distribute financial benefits to authorized units
in the California Work Opportunity and Responsibility to Kids (CalWORKs) program and
certified CalFresh households. CalFresh, referred to nationally as the Supplemental
Nutrition Assistance Program (SNAP), is required by federal law to be distributed only
through EBT. CalWORKs is required by state law to only be distributed only through EBT.
Some counties chose to also have General Assistance or General Relief payments
distributed using the EBT system.1 All EBT recipients are CalFresh Recipients (except in
1
California EBT Client Website. Available at: https://www.ebt.ca.gov/caebtclient/reciplogin_client.jsp
www.wclp.org
rare occasions). Under federal law, individuals using public assistance benefits cannot be
treated differently than other customers at a retailer POS.2
In order to accept EBT for CalFresh purchases, the vendor must meet all federal
requirements and be authorized by the United States Department of Agriculture (USDA).3
In order for the vendor to be authorized to accept CalWORKs benefits, the vendor must be
qualified under new federal regulations4 and existing state executive order.5 EBT does not
use traditional banking channels, but is a stand-alone system, requiring the customer to
choose, usually on the Point of Sale (POS) machine, that they are paying with EBT.
California`s EBT program, is one of the largest in the nation, used at more than 21,000
retailer locations and 50,000 ATMs throughout the state.
There have always been clear and long-established rules for retailers participating in
CalFresh.6 Retailers cannot sell non-food items, like alcohol, tobacco products, toiletries,
vitamins and medicine to customers paying with CalFresh.7 As recently as this year, the
Agricultural Act of 2014 reinforced that SNAP may not be used to pay for food containers.
CalFresh purchases are exempt from all sales taxes and other taxes and fees8 and cannot be
exchanged for cash. Grocery bags are on the list of non-allowable items for SNAP EBT.
Vendors that violate program regulations and policies, for any reason, may be subject to
monetary claims, civil money penalties, suspensions, terminations or disqualification from
the SNAP program or any combination of these sanctions. They must also be sanctioned
from participating as a vendor in the Women, Infant and Children Program.9
WIC participants currently shop using a monthly check or voucher specially designed to be
compatible with retail POS check readers and printers. The front of the voucher displays the
recipient’s name and recipient number, a begin use- and an end-use date, a list of allowable
items to be purchased with the check/voucher, including the quantity and/or maximum
weight of the allowed items listed. The WIC recipient can choose if they want only some or
all of the items listed on the check. The check also has an area for the cashier to enter the
sale total, and an area for the recipient to sign the check/voucher at the time of use.
California will be required to migrate its WIC program payment system to an EBT card
system by 2020. Until then, WIC Customers must separate their purchases to make their
WIC purchases separate than their non-WIC purchases in most circumstances.
2
Federal law prohibits retailers from singling out EBT cardholders “for special treatment in any way.” 7 C.F.R. §
278.2(b) (2009).
3
http://www.fns.usda.gov/snap/retail-store-eligibility-usda-supplemental-nutrition-assistance-program
http://www.wclp.org/Resources/WCLPContent/WCLPContentSearch/tabid/1131/smid/3613/ArticleID/907/reftab/1133/t/WCL
P-Submits-Comments-on-Federal-TANF-Proposed-Rules/Default.aspx
5
http://www.dss.cahwnet.gov/lettersnotices/entres/getinfo/acin/2010/I-68_10.pdf
4
6
Determining Product Eligibility for Purchase with SNAP Benefits. Published by the United States Department of
Agriculture in January 2010 http://www.fns.usda.gov/snap/retailers/eligibility.pdf
7
Food items allowed under SNAP are defined by the federal Food and Drug Administration (FDA).
8
7 C.F.R. § 272.1.
9
7 CFR § 246.12(1)(vii).
Western Center Supports if Amended
Western Center has requested amendments that would clarify that the exemptions are
given when a customer is using a certain payment method (WIC Coupons or EBT Card),
rather than simply participating in a nutrition assistance programs and would correct the
name of the “Supplemental Food Assistance Program (SNAP)” in Chapter 10 – which we
refer in statute as CalFresh.
With these amendments, not only will SB 270 implementation limit harm, it will also
resolve complications caused by the confusing patchwork of rules in over 90 cities
throughout the state that have passed local ordinances with varied exemptions for nutrition
assistance recipients, replacing it with a cohesive, statewide system for regulation and
compliance.
Western Center appreciates your consideration on this issue and supports SB 270 as
amended to reflect these changes.
Sincerely,
Jessica Bartholow
Legislative Advocate
cc:
Senator Alex Padilla, California State Senate (Author)
Senator Kevin De León, California State Senate (Co-Author)
Senator Ricardo Lara, California State Senate (Co-Author)
Sam Rodriguez, UFCW Western States Council (Co-Sponsor)
Mandy Lee, California Retailers Association (Co-Sponsor)
Keri Askew Bailey, California Grocers Association (Co-Sponsor)
Mike Murray, Californians Against Waste (Co-Sponsor)

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