(a) (1) To the extent permitted under federal law, the department may contract directly with an entity that provides services on a regional or statewide basis and that has expertise in, and secures funds for, CalFresh E&T program services provided to participants that are allowable for partial federal reimbursement.

(2) The department may act as the state entity for receipt of federal reimbursement on behalf of the entity, provided that the entity complies with state and federal contracting requirements and the entity serves participants who face multiple barriers to employment and offers evidence-based skills development that results in a demonstrable increase in employment rates and earnings from work. The entity may include, but is not limited to, any of the following:

(A) An employment social enterprise.

(B) A private nonprofit.

(C) A public postsecondary educational institution, or other state or local agency.

(D) An organization serving as an intermediary for an entity described in subparagraphs (A) to (C), inclusive, and the department.

(b) The department shall seek any county consultation necessary to implement subdivision (a), including, but not limited to, coordination with counties that have contracts in place pursuant to subdivision (c), or counties that are considering entering into contracts pursuant to subdivision (c).

(c) Notwithstanding subdivision (a), a county may contract with an employment social enterprise or designated intermediary to provide services to its CalFresh E&T program participants. The department shall, no later than June 1, 2018, in consultation with the County Welfare Directors Association, issue guidance instructing counties that elect to participate in CalFresh E&T program services of any special considerations for partnering with employment social enterprises in the development or implementation of their county CalFresh E&T programs.

(d) (1) For purposes of this section, “employment social enterprise” means a social purpose corporation, a benefit corporation, or a nonprofit corporation that earns 51 percent or more of its enterprise revenue from production or assembly of goods or the provision of services and that demonstrates evidence of its mission to provide employment with on-the-job and life skills training to a direct labor force, not including supervisors, administrators, and trainers, that is comprised of 80 percent or more participants who face multiple barriers to employment.

(2) For purposes of this section, “participant who faces multiple barriers to employment” means any of the following individuals:

(A) An individual with employment barriers who is a member of at least two of the groups listed under subdivision (j) of § 14005 of the Unemployment Insurance Code.

(B) An individual who is or has been a homeless individual, as defined in Section 254b of Title 42 of the United States Code.

(C) An individual who is an out-of-school youth, as defined in Section 3164(a)(1)(B) of Title 29 of the United States Code.

(Amended by Stats. 2018, Ch. 381, Sec. 2. (AB 1892) Effective January 1, 2019.)