HB 255-FOOD STAMPS; WORK REQS; TIME LIMITS  4:21:11 PM CHAIR ZULKOSKY announced that the final order of business would be HOUSE BILL NO. 255, "An Act relating to a waiver of work requirements or time limits in the food stamp program; and providing for an effective date." The committee took a brief at-ease. 4:21:32 PM ELISE SORUM-BIRK, Staff, Representative Andy Josephson, Alaska State Legislature, on behalf of Representative Josephson, prime sponsor of HB 255, relayed the proposed legislation would address Supplemental Nutrition Assistance Program (SNAP) waivers for able-bodied adults without dependents - specifically time- limit waivers. She turned to slide 1, entitled "Goals of HB 255," which read: ? Ensure that Alaska is seeking the broadest waiver possible under federal law ? Ensure that Alaska is approving the broadest waiver possible under law ? Ensuring that vulnerable Alaskans have the food they need to be healthy 4:23:07 PM MS. SORUM-BIRK moved on to slide 2, entitled "What is SNAP ABAWD work requirement," which read: Under the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, Able Bodied Adults Without Dependents (ABAWD) are required to meet specific work requirement of 80 hours per month to qualify for benefits. There is a 3-month time limit per 3 years on benefits if the work requirement isn't met. MS. SORUM-BIRK explained that SNAP stands for Supplemental Nutrition Assistance Program and is also known as "food stamps." She said that ABAWD stands for Able Bodied Adult Without Dependents; it is someone between 18 and 49 years old who is healthy and capable of working according to federal law. MS. SORUM-BIRK referred to slide 3, entitled "Waivers SNAP ABAWD Time Limits to Work Requirements," which read: Since the time limits enactment in 1996 states have been able to apply for waivers in areas of low work availability Additionally states can exempt up to 12% of caseload who are ineligible for benefits (extending time limit 1 additional month) Alaska and Guam lost statewide waivers between 4th quarter of 2019 and 1st quarter of 2020 4:24:38 PM MS. SORUM-BIRK continued with slide 4, entitled "CBPP- History of ABAWD Waivers from 1998 to 2019." The graphic on the slide was published by the Center for Budget Policies and Priorities (CBPP) and can be found on its website. The slide demonstrated the history of states acquiring waivers from 1998 through 2019. She pointed out from the graph that during that period, Alaska was mostly without any waivers. She mentioned that Alaska has consistently qualified for a statewide waiver due to its challenges in employment. 4:25:31 PM MS. SORUM-BIRK turned to slide 5, entitled "Why has Alaska always qualified?" which read: Consistently High Unemployment ? Alaska has consistently met unemployment requirements under the previous federal rule ? Most areas of Alaska can still meet federal requirements under the new rule Lack of Traditional Job Opportunities ? Rural communities with less cash economy ? Highly seasonal workforce in many sectors of the economy 4:26:19 PM REPRESENTATIVE SPOHNHOLZ asked for a description of the rule recently enacted by the [President Donald J.] Trump administration. MS. SORUM-BIRK stated the new rule changed the unemployment requirements that a state could use [to qualify for a waiver]. It set the unemployment rate at 10 percent or higher, or for alternate waivers, a base of 6 percent or 20 percent above the national average unemployment rate, whichever is greater. She said that in Alaska, most of the state met the 6-percent requirement. She offered that Alaska has transitioned to the new rule; however, the new rule is not effective until April [2020], and as of [March 13, 2020], implementation of the rule has been temporarily halted under a nationwide injunction [issued by the U.S. District Court for the District of Columbia]. MS. SORUM-BIRK moved on to slide 6, entitled "Which States might be Impacted Most?" which shows the results of an analysis by [Wolfram] Mathematica depicting the states that would be most impacted by the new U.S. Department of Agriculture (USDA) SNAP waiver rule. She pointed out that Alaska would be among the most impacted states with 53-77 percent of ABAWD SNAP participants affected by the new waiver rule. 4:28:37 PM MS. SORUM-BIRK moved on to slide 7, entitled "ABAWD Waiver Timeline for Alaska," to provide clarification on the history of the waiver and actions on the national level. In 1964, the Food Stamp Program was codified in federal law. Many changes occurred to the program between 1964 and 1996. In 1996, the ABAWD work requirement became part of federal law with the passage of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). In 2008, the Food Stamp Program was renamed the Supplemental Nutrition Assistance Program, or SNAP. In 2010 the American Recovery and Reinvestment Act (ARRA) waived SNAP work requirements nationally and broadened the eligibility for all states to receive waivers. Between 2010 and 2016, the waivers were suspended nationwide. MS. SORUM-BIRK relayed that in 2016, the time limits were reinstated. In 2018, an overhaul of the SNAP program was put forward in the U.S. Agriculture and Nutrition Act of 2018, or the "Farm Bill," but the proposed tightening measures were rejected by the U.S. Congress. Despite rejection of the measures, the Trump administration put forward a new rule in February 2019 revising the conditions under which USDA would be able to waive ABAWD time limits. It also limited how states could choose metrics and define geographical areas. It was under this rule that the 10 percent and 6 percent were first discussed. Attorneys general from around the nation and a group of U.S. Senators wrote letters in opposition to the rule. MS. SORUM-BIRK continued by saying that in October 2019, the [Governor Mike] Dunleavy administration began implementing the new rule at the state level using the 10 percent metric. In December 2019, the Trump Administration rule was finalized and set to go into effect in April 2020. In January 2020 once the rule was finalized, a coalition of states and New York City sued the Trump administration over the new rule. Just a few days ago [U.S. District Court Judge Beryl Howell] blocked the rule temporarily; he cited the pandemic in the opinion. 4:32:49 PM CHAIR ZULKOSKY asked how [the new rule] impacted Alaskans. MS. SORUM-BIRK said that it is estimated that 6,917 vulnerable Alaskans who participated in the SNAP program have lost SNAP benefits due to the rule change. They are individuals who were in the ABAWD category and lived in geographic areas that no longer qualified for the waiver. She referred to the handout in the committee packet, entitled "SNAP Helps 1 in 11 Workers in Alaska Put Food on the Table," and pointed out that about one- third of the Alaskans who were dependent on SNAP worked in the service industry. Those individuals were already at high risk - with little job security and difficulty meeting the 20-hour-a- week minimum for working. 4:34:37 PM CHAIR ZULKOSKY asked what the geographic spread was for the nearly 7,000 Alaskans who had lost SNAP benefits under the new rule. 4:35:10 PM SHAWNDA O'BRIEN, Director, Division of Public Assistance (DPA), Department of Health and Social Services (DHSS), relayed the areas of the state included in the waiver effective October 2019 were the Bethel Census Area, Bristol Bay Borough, Denali Borough, Haines Borough, Hoonah-Angoon Census Area, Kusilvak, Lake and Peninsula Borough, Nome Census Area, Northwest Arctic Borough, Petersburg Borough, Prince of Wales-Hyder Census Area, Southeast Fairbanks Census Area, Skagway Municipality, Valdez- Cordova Census Area, Wrangell City and Borough, Yakutat City and Borough, and Yukon-Koyukuk Census Area. The total number of individuals [affected by the waiver] for all those locations is approximately 2,000; the data was constantly changing because the population of people being served significantly fluctuated each month. At any point in time that number might change depending upon when the data was collected, the population included in the data search, and whatever additional information the individuals provided to the division to further exempt them from being considered ABAWD. At the time the waiver went into effect in October 2019, the division calculated about 7,500 individuals to be ABAWD. CHAIR ZULKOSKY asked Ms. O'Brien to provide the committee with the comprehensive list of communities currently waived and the numbers cited. MS. O'BRIEN agreed and offered to share information on the waiver for which the division has asked permission to be effective April 1. She also offered to provide the committee with the department's plan in terms of the COVID-19 [a novel coronavirus disease] response; it involved language to exempt all participants of the SNAP program from work requirements due to significant job losses in many communities. 4:38:34 PM REPRESENTATIVE TARR asked for clarification as to the number of individuals affected by the rule change. MS. O'BRIEN responded that when the data was queried in October, about 7,500 individuals were identified and notified that they would be required to participate in ABAWD work-related requirements. She reiterated that the numbers changed monthly. REPRESENTATIVE TARR asked for clarification on the "2,000" number Ms. O'Brien cited and clarification on the "boroughs" versus "census areas" in the listing of areas of the state. MS. O'BRIEN replied that about 2,000 individuals were not required to participate [in the new rule] due to the waiver; without the October waiver exempting those areas of the state, there would have been about 2,000 more individuals added to the 7,500. The waiver effective April 1 would have exempted another 900 individuals. MS. O'BRIEN stated she was not able to explain the terminology or differentiate between census areas and boroughs; it was determined by the census process within the U.S. Bureau of Labor Statistics (BLS) [U.S. Department of Labor (USDOL)]. 4:41:48 PM REPRESENTATIVE TARR asked for confirmation of her understanding: the October 1 deadline prompted notices sent to 7,500 people who would be required to participate; that number would have been 9,500; however, 2,000 were identified as not being required to participate; another waiver was requested for April 1, which would exempt an additional 900; therefore, 900 would be subtracted from 7,500. MS. O'BRIEN answered, "Correct." 4:42:30 PM REPRESENTATIVE SPOHNHOLZ asked for confirmation that in October 2019, 7,500 ABAWD were notified that they would be required to work and potentially not eligible for SNAP. MS. O'BRIEN concurred. REPRESENTATIVE SPOHNHOLZ asked how many people were no longer eligible for SNAP benefits in November. MS. O'BRIEN answered that as a result of the ABAWD implementation, none. She explained that November would have been the first month of the three months of benefits in a 36- month time frame; individuals would not have lost benefits until January. REPRESENTATIVE SPOHNHOLZ asked how many of the 7,500 were eligible for SNAP in January. MS. O'BRIEN stated that she would ask staff to query the data to determine the number of individuals who lost benefits as a result of the rule change; she added some individuals closed cases for other reasons. 4:45:09 PM CHAIR ZULKOSKY referred to the March 2020 injunction citing COVID-19 concerns and asked for the effective date of the decision. MS. SORUM-BIRK offered her belief that the decision did not apply retroactively but from the point of the decision forward. She offered to confirm that information for the committee. REPRESENTATIVE SPOHNHOLZ asked Ms. O'Brien to provide the total number of SNAP-eligible people in every month of the calendar years 2019 and 2020. MS. O'BRIEN agreed to provide that information. 4:47:10 PM MS. SORUM-BIRK clarified that "6,917" was the estimate put forth by the Dunleavy administration in August 2019 to quantify the number of SNAP recipients who would be required to meet the work requirements under the new rule starting in October. The information came from the Anchorage Daily News article [August 12, 2019] included in the committee packet. MS. SORUM-BIRK continued with the PowerPoint presentation, slide 8, entitled "COVID-19 and SNAP," which read: ? Economic uncertainty is increasing dramatically ? Many low wage jobs will be hit hardest (for example- roughly 1/3 of SNAP recipients in Alaska work in the service industry) ? Forcing needy families to go to crowded food pantries or soup kitchens would increase spread of the virus MS. SORUM-BIRK added that the intent of HB 255 was to make it as easy as possible for people to receive SNAP benefits when they needed food. She reiterated the federal judge cited COVID-19 as one of the reasons for blocking the federal rule. 4:48:50 PM MS. SORUM-BIRK reviewed slide 9, entitled "Sectional Analysis," which read: Section 1: Amends AS 47.25.975 to add a new subsection outlining requirements that DHSS: Must request, accept, and attempt to renew or extend federal waivers relating to work requirements and time limits for ABAWDs to the maximum extent allowed under federal law in all geographical areas of the state. Must implement ABAWD waivers approved by the federal government to the maximum allowable extent outlined in each waiver. May not create more stringent work requirements or time limits for ABAWDs than those outlined in an accepted waiver. Section 2: Adds a new section to the uncodified law of the State of Alaska requiring that DHSS promptly apply to the federal government for a waiver if the department determines that the waiver is necessary to implement the policy changes outlined in Section 1 of this Act. Section 3 and Section 4: Relate to the conditional effective date of this Act. 4:50:42 PM REPRESENTATIVE ANDY JOSEPHSON, Alaska State Legislature, as prime sponsor of HB 255, shared that the issue was brought to his attention by the Alaska Food Coalition, and he recognized the need for the legislature to set a different path through legislation. He maintained that the position of the Dunleavy administration regarding SNAP benefit waivers was more stringent than that of the Trump administration; the governor's policy was to not seek any possible waiver. Even before COVID-19, Alaska was the 50th state in employment. He maintained that Alaska should seek every opportunity to receive waivers as allowed. He acknowledged the philosophical viewpoint of the Dunleavy administration - the belief that not receiving SNAP benefits would force people into seeking employment. He asserted that the difficulty was that often the employment was seasonal and inadequate. Many of the recipients were service workers who, even though employed, still needed the assistance because they did not get paid enough. He stated there was a class of workers who were most vulnerable; businesses were closing in response to the COVID-19 pandemic; and those workers cannot telework. He emphasized the proposed legislation was timely; it was consistent with the [HCR 17] focus on need [passed in the House on 3/17/20]; and it was critical. REPRESENTATIVE JOSEPHSON referred to the state's opportunity to identify the most favorable period for waiver; that is, the months with the highest rate of unemployment. He suggested that the administration did not advocate for SNAP beneficiaries in that way. He said that the communities of Anchorage and the Matanuska-Susitna Valley (Mat-Su) were the ones that stood to benefit from the proposed legislation. He offered his belief that it should be the policy of the state to seek the waivers available. Other state policies reflected a similar approach. He quoted U.S. Senator Mitt Romney: "While expansions of paid leave, unemployment insurance, and SNAP benefits are crucial, the check will help fill the gaps for Americans that may not quickly navigate different government options." 4:56:10 PM CHAIR ZULKOSKY opened invited testimony during the hearing on HB 255. 4:56:29 PM CARA DURR, Director of Public Engagement, Food Bank of Alaska, relayed that staff at the Food Bank of Alaska understand what a critical role SNAP plays in fighting hunger in Alaska. For every meal provided by the Feeding America national network of food banks, SNAP provided nine meals. Her organization was concerned with any policy that restricted access to SNAP, such as is the case with time limits. When people lose SNAP, they turned to the already burdened food bank network; the food banks try but cannot fill that gap. The Food Bank of Alaska supports the goal of helping low income Alaskans who can find work and keep a job; however, restrictions on access to SNAP is not an effective way to attain that goal; it is instead a punitive work requirement. Studies have shown that existing mandatory work requirements in SNAP and other programs, such as Temporary Assistance to Needy Families (TANF), are ineffective. She said that TANF work requirements - in place since 1996 - have yielded little or no long-term positive impacts on employment or earnings. MS. DURR continued by saying that most people who received SNAP benefits and can work, do work. In many ways SNAP supports work; when people have their basic needs met, they are better prepared for the workforce. Time spent visiting food pantries is time that could be spent looking for work or working. She offered that many SNAP recipients are working in low-wage jobs with unpredictable hours. For people whose hours are reduced, who get sick, or who have a sick child, SNAP benefits are at risk. She maintained that many people who are subject to the new rule who are not working are not unemployed by choice. Many of those subject to the additional work requirements struggled to find work even when the job market was healthy. Lack of job skills, living in a rural area with few or no jobs, undiagnosed health conditions or disabilities are few of the reasons that individuals may not work. She said that being deemed "able- bodied" does not mean job-ready, and cutting a vulnerable person off food assistance does not make them any more employable. MS. DURR relayed that while there are allowed individual exemptions - such as having a disability, being medically unfit for work, or receiving unemployment benefits - and the state has a low bar for meeting them, the recipients need to understand enough about the rule to request the exemptions. MS. DURR stated that at the Alaska Food Bank, staff have received calls from individuals who have lost benefits; in most cases the individuals were very confused about the policy and why they had lost benefits. The confusion is not unique to Alaska and is not a reflection on the work of DPA but is due to the complexity of the rule. MS. DURR offered that currently there are Alaskans who have lost SNAP due to the new rule who, instead of being able to buy a small amount of emergency grocery supplies, are now going to crowded food pantries and soup kitchens to get food. As more Alaskans lose jobs and directives to stay home increase, it is not reasonable to expect someone to find a job currently. Alaska needs to plan for the possibility that the [COVID-19] situation will intensify, which may force closures of the food distribution centers. She said that while no one could have predicted the current situation, clearly Alaska needs to ensure that SNAP can easily respond to disasters of this sort. Without policy change, those who have lost benefits would be unable to requalify for SNAP; many workers who have lost hours or jobs may only qualify for a short time. She maintained SNAP will be an incredibly important resource to the many Alaskans who are struggling from the economic fallout from COVID-19 in the short- and long-term. She expressed her hope the program could be made accessible to everyone who needed it. She said she is confident the state will seek a variety of ways to expand access to SNAP in consideration of COVID-19. The situation underscored the need to maintain SNAP flexibility at all times. MS. DURR noted in conclusion that SNAP benefits are 100 percent federally funded; every $1 spent in SNAP generated $1.70 in local economic activity; SNAP injected nearly $200 million in federal dollars into Alaska's economy. She said, "Let's maximize access to this important program by seeking all available waivers from the time limit, which will benefit struggling Alaskans and our state economy." 5:01:50 PM REPRESENTATIVE SPOHNHOLZ referred to people coming in to DPA for interviews and application processing, which could present a concern regarding transmission of COVID-19 for clients and employees. She asked what processes the division will adopt to ensure that people can get access to benefits without increased risk of spreading COVID-19. 5:02:41 PM MS. O'BRIEN replied that as many agencies are, the division had been working hard to balance the need to protect staff and clients with the delivery of services. She stated that it was especially challenging for DPA: because of the number of homeless individuals who have no other means of communicating with the division, the office cannot close its lobbies or restrict access. She described solutions that DPA is implementing to limit the need for people to visit the office: working with federal partners to use telephonic interview options and asking for permission to extend certification deadlines. For example, DPA is seeking for approval to extend SNAP certifications for a period of six months for March, April, May, and June benefits. She said that staff will reassess as operations progress. She offered that TANF, Adult Public Assistance (APA), Senior Benefits, and [U.S. Centers for Medicare and Medicaid Services (CMS), U.S. Department of Health and Social Services (HSS)] health insurance program ("Medicaid") will be aligned as much as possible to minimize the impact to clients and staff. She added that she anticipated an increase in the number of individuals coming to the division for assistance as a result of job loss and other issues. She mentioned that changes were occurring rapidly and guidance from federal partners was coming to the division hourly. She concluded that together with federal partners, the division was acting as quickly and as thoughtfully as possible to meet the needs of all Alaskans. 5:05:42 PM REPRESENTATIVE SPOHNHOLZ asked about the possibility of increasing the use of online applications and using technology to increase access and reduce in-person contact. MS. O'BRIEN answered that there is an online application for Medicaid through "myAlaska.gov" or through the federally facilitated marketplace; application for other benefits cannot be submitted online; however, applications can be accessed online, printed out, and submitted through scanning the application and emailing it to the office or dropping it off. She added that the division is seeking to get permission to accept telephone signatures so that individuals may be assisted over the telephone while at home. She maintained that the division is looking for ways to accept documentation outside of normal practices. 5:08:11 PM REPRESENTATIVE SPOHNHOLZ stated she was surprised online applications were not possible for public assistance benefits. She offered having that capability would save time and money, as well as be useful for both clients and employees. MS. O'BRIEN responded that the division has been exploring the possibility of an online application with vendors. In Alaska, most of the programs can be applied for in one application; the division has reached out to other states that have successfully made available an online application. She stated that technology is a challenge in Alaska due to its information technology (IT) resources; the division has other IT needs and must prioritize use of those resources. She said that the online application is a priority, but the division must engage with several external stakeholders to accomplish it. 5:09:46 PM REPRESENTATIVE TARR commented that procedures involving printing an application and then scanning and emailing it presented a very limiting option for many people who did not have Internet, a printer, and/or a scanner. She said that someone could take a photograph of the application with a smartphone, [a multi- purpose mobile telephone with internet access], but not everyone had smartphones. She asked that the division consider other ways for receiving applications so that these people do not "slip through the cracks." She maintained that she has been in hundreds of homes in her district that do not have these devices. REPRESENTATIVE TARR asked whether Ms. O'Brien's mention of "permission to accept telephone signatures" refers to permission from the individual applicant, permission from the state, or permission from the federal government. MS. O'BRIEN responded that for the Medicaid program, the division had permission to accept telephonic signatures; but for programs like SNAP, the division did not have federal permission to accept telephonic signatures. She maintained the division was working with its federal partners, and the federal partners had been responsive and cooperative in helping DPA address its challenges. She acknowledged that Alaska had rural challenges, as well as challenges regarding individuals who did not have the capability to print or access the internet. She offered that DPA could mail applications to individuals, and it is working on options for taking information over the telephone. She mentioned that staffing is a concern as well, and the division is trying to dedicate resources appropriately for stability. 5:12:52 PM CHAIR ZULKOSKY asked for comment on the new federal rule and why Alaska's use of the 10 percent unemployment rate [as the requirement for a waiver] is more restrictive. 5:13:13 PM ED BOLEN, Senior Policy Analyst, Center on Budget and Policy Priorities, responded that the proposed legislation would give Alaska an important guide for addressing access to food assistance for very poor unemployed workers. He said SNAP was historically the second most effective response to worsening economic circumstances; unemployment insurance offered the quickest response. He relayed that Secretary of Treasury [Steve Mnuchin] just expressed his concern that the unemployment rate may spike to 20 percent. "The current policy in Alaska - where the state would only request waivers of this time limit for ... ABAWDs ... if unemployment is over 10 percent - means that because there is this look-back period that was mentioned, the state would essentially identify areas where unemployment was over 10 percent for at least 12 months." He offered that by the time that happened, the recession would have almost passed. Almost every other state, without the restriction of a 10 percent requirement of unemployment before requesting waivers, would be able to identify areas where unemployment spikes quickly and at lower rates. He said, "If their unemployment rate is currently 6 percent and then it spikes up, that's a lot of low-income workers losing jobs." States would be able to identify areas in which they could request waivers and ensure that people have access to food while they were looking for work. He opined that HB 255 would address what could be a sudden and worsening impact on low-income people in service industry jobs who would likely be affected. 5:15:56 PM REPRESENTATIVE DRUMMOND echoed the comments regarding the access of low-income individuals to computers. She mentioned that the libraries are closed in Anchorage; many services are provided in libraries, such as the social worker stationed at the library to answer questions from homeless people. She offered that not only do people lack the equipment necessary to submit an application, but many lack the sophistication to fill out a form on a smartphone; that is, if one has a smartphone and the form can be filled out on a smartphone. 5:17:55 PM REPRESENTATIVE JOSEPHSON encouraged the committee to advance HB 255 as soon as possible. He offered that it would be widely supported and, unfortunately, has become especially important. 5:18:22 PM CHAIR ZULKOSKY indicated that HB 255 would be held over.