BILL NUMBER: AB 537 AMENDED BILL TEXT AMENDED IN ASSEMBLY JANUARY 25, 2010 AMENDED IN ASSEMBLY APRIL 23, 2009 AMENDED IN ASSEMBLY APRIL 1, 2009 INTRODUCED BY Assembly Member Arambula FEBRUARY 25, 2009 An act to add Section10072.1 to the Welfare and Institutions Code, relating to public benefits. LEGISLATIVE COUNSEL'S DIGEST AB 537, as amended, Arambula. Farmers' markets: electronic benefit transfers. Existing law provides for the establishment of a statewide electronic benefit transfer (EBT) system for the purpose of providing financial and food assistance benefits to needy Californians. This bill would require , with certain exceptions a flea market farmers' market,or certified farmers' market, or other open-air market selling fresh produce,that does not have an EBT system in place by January 1, 2012, toallow adesignate or assign an interested Food Nutrition Service (FNS)-authorized3rd-partyorganization to operate an EBT acceptance system in the market, as specified. The bill wouldauthorizerequire the State Department of Social Services todesignate or assign a nonprofit organization that is or can be FNS-authorized to accept the EBT card on behalf of the produce sellersconsider and solicit input from the market prior to making a designation or assignment authorized under the bill, to avoid potential conflicts, as specified . Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 10072.1 is added to the Welfare and Institutions Code, to read: 10072.1. (a) The Legislature finds and declares thatfarmers' markets, certified farmers' markets, and other open-air markets selling fresh produceflea market farmers' markets and certified farmers' markets are important sources of low-cost produce for Californians in need of food assistance. (b) (1) If by January 1, 2012, a market described in subdivision (a) does not have a system in place for its produce sellers to accept electronic benefit transfer (EBT) for purchases, themarket shall allow aState Department of Social Services may designate or assign an interested Food and Nutrition Service (FNS)-authorizedthird-partyorganization to operate an EBT acceptance system in the market on behalf of the market's produce sellers. The market shallreasonablyallow and accommodate the FNS-authorizedthird-partyorganization in a reasonable manner that aids in the creation, implementation, and operation of the EBT acceptance system.(c) The State Department of Social Services may designate or assign a nonprofit public benefit, charitable, or social welfare organization that is or can be FNS-authorized to accept the EBT card on behalf of the produce sellers.(2) This subdivision shall not apply to a market described in subdivision (a) that operates an active and current EBT acceptance system. (c) The State Department of Social Services shall consider and solicit input from the market prior to making a designation or assignment authorized under this section, to avoid, among other potential conflicts, the selection of an entity that is in direct competition with the market being served. The department may condition an assignment or designation, and remove an FNS-authorized organization previously designated or assigned by the department. (d) Nothing in this section shall be interpreted to require a market described in subdivision (a) to itself create, operate, or maintain an EBT acceptance system on behalf of its produce sellers.