BILL ANALYSIS AB 537 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 537 (Arambula) As Amended August 18, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |66-3 |(January 27, |SENATE: |23-12|(August 23, | | | |2010) | | |2010) | ----------------------------------------------------------------- Original Committee Reference: AGRI. SUMMARY : Authorizes a group or association of active produce sellers in a flea market farmer's market or Certified Farmers' Market (CFM) to act as a Food and Nutrition Service (FNS) agent to initiate a system for acceptance of electronic benefit transfer (EBT) for sellers of produce; requires market operators to accommodate the FNS group or association while limiting activities to only EBT activities; exempts current or subsequent EBT operating systems; and, specifies that this does not mandate a market itself to create, operate or maintain an EBT system. The Senate amendments delete the authority for the State Department of Social Services (DSS) to designate or assign an organization to operate an EBT system in a market on behalf of the produce sellers and recasts authority to interested collective groups or associations of produce sellers actively participating in produce sells in the market. AS PASSED BY THE ASSEMBLY , this bill was substantially similar to the version approved by the Senate. FISCAL EFFECT : According to the Senate Appropriations Committee, estimates of one-time costs of upwards of $330,000 General Fund and $563,000 Federal Funds for the purchase of the EBT devices. COMMENTS : According to the author, when the federal government switched from paper food stamps to EBT, access to CFMs became non-existent to individuals and families receiving public assistance. AB 537 attempts to reestablish that access by authorizing CFMs to create their own EBT program, or by having existing venders within a market to establish such a program. Several welfare, hunger, and health advocates have become AB 537 Page 2 involved in outreach to farmers and community markets trying to assist low income families with greater access to fruits and vegetables. Supporters state that access to fresh produce is important, and should be available to everyone, especially low income families, as fresh products lead to healthier diets and improved health. AB 537 will increase such access to California-grown products purchased directly from California farmers. Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084 FN: 0006342