BILL ANALYSIS Ó
SENATE HUMAN
SERVICES COMMITTEE
Senator Carol Liu, Chair
BILL NO: AB 2280
A
AUTHOR: Lara
B
VERSION: May 1, 2012
HEARING DATE: June 26, 2012
2
FISCAL: Yes
2
8
CONSULTANT: Mareva Brown
0
SUBJECT
California Special Supplemental Food Program for Women,
Infants and Children
SUMMARY
Requires the Department of Public Health to provide written
notice to a vendor who has been found to overcharge a
nutrition coupon upon determination of an initial
violation, when the violation could be used later to
establish a pattern to impose a sanction. Permits the
department to decide, on a case-by-case basis, not to
provide notice if doing so would compromise an
investigation.
ABSTRACT
Existing law
1.Establishes in federal law the Special Supplemental Food
Program for Women, Infants, and Children (WIC) for
low-income mothers and their children in recognition of
the demonstrated relationship between food and good
nutrition and the capacity of children to develop and
learn (7 C.F.R. 246)
Continued---
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2.Creates the California WIC program to provide nutritional
food supplements through the issuance of nutrition
coupons to low-income pregnant, post-partum and lactating
women and low-income infants and children aged 5 and
younger. (HSC 123280)
3.Establishes protocols for vendors to accept nutrition
coupons from recipients, including a requirement that
coupon redemption be used only for specified foods and
that vendors redeem nutrition coupons at an amount that
is the same as, or lesser than, that charged other
customers for identical foods. (HSC 123315).
4.Establishes that the state may levy sanctions, as
specified, against a vendor who knowingly redeems food
coupons in excess of prices charged other customers or
commits fraud, and authorizes the state to enter a
vendor's business to verify food prices, conduct and
investigation or otherwise determine compliance. (HSC
123325 et seq.)
5.Defines in federal law specified violations and sanctions
(7 CFR 246.12 (l)).
This bill
1.Requires the Department of Public Health (DPH) within 30
days to provide written notice to a retail food vendor if
the department determines that the vendor has committed
an initial violation for which a pattern of the violation
must be established to impose a sanction.
2.Requires that the written notice be delivered to the
vendor's most recent business ownership address on file
with department before the department conducts a second
investigation for purposes of establishing a pattern of
the violation.
3.Requires that the written notice include a description of
the initial violation sufficient to allow the vendor to
take correction action. The description must include:
a. A description of the sales transaction
constituting the violation
b. The date and approximate time of the
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transaction
c. The location of the vendor store
4.Permits the department not to provide the written notice
if DPH determines on a case-by-case basis that notifying
the vendor would compromise an investigation.
5.Defines a "violation," as specified.
FISCAL IMPACT
An Assembly Appropriations Committee analysis indicates
that costs associated with this legislation would be minor
and absorbable within existing resources.
BACKGROUND AND DISCUSSION
Purpose of the bill
According to the author, this bill would reconcile current
inconsistencies between state regulations and federal law
pertaining to vendor notifications of WIC program
violations.
Federal WIC program regulations and a USDA WIC Final Policy
Memorandum (2005-1A) require states to notify vendors of an
initial violation prior to documenting another violation if
the violations are among those that require a pattern to
impose a sanction. The only exception in federal law is
when the state agency determines that notifying the vendor
would compromise an investigation. In contrast, the
California Code of Regulations directs that "a warning that
violations are occurring or have occurred is not required
prior to any adverse action taken against food vendors."
In order for WIC participants to access healthy, nutritious
foods, they must have access to state-approved WIC retail
food vendors in their communities. The author states that,
in addition to being contrary to federal regulations, the
state's failure to notify a vendor of a first or subsequent
violation before sanctions are imposed denies the vendor
the opportunity to take corrective action to prevent future
violations. Additionally, it puts the vendor in danger of
disqualification, potentially exacerbating the problem of
"food deserts" which restrict a community's access to
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eligible food vendors and necessary food products.
According to USDA data provided by the author, 10 percent
of the nation resides in a food desert, including 1 million
low-income Californians who do not have nearby supermarkets
or large grocery stores.
WIC
The WIC program in California provides nutritional food
supplements to woman, infants and children who have been
determined to be at nutritional risk by a health
professional, based on criteria established DPH.
WIC is a 100% federally funded nutrition and health
program, providing funds for buying healthy supplemental
foods from WIC-authorized vendors. It also provides as
nutrition education, help finding healthcare and other
community services. The program aids low-income pregnant,
breastfeeding and post-partum women, as well as a
low-income parent who is the sole provider of a child under
age 5. Participants must be at nutritional risk, as
determined by a health professional, and at or below 185
percent of the federal poverty level ($42,642 for a family
of four). Many WIC recipients are working parents.
In California, DPH administers contracts with 84 local WIC
agencies - half local governments and half private,
non-profit community organizations - to provide services at
more than 650 sites statewide to nearly 1.5 million
participants each month. Additionally, WIC checks can be
redeemed at any of the more than 5,500 participating
grocery stores. According to DPH, six million food checks
are issued each month. Each check is valid for a 30-day
period and is payable for a specific type and quantity of
food. DPH states that WIC is a direct infusion into the
California economy of about $1.1 billion per year, with the
retail value of WIC checks about $63 per month, per
participant.
Unlike some other public services, WIC is not an
entitlement program. The number of participants served
depends upon the amount of the discretionary grant
appropriated annually by Congress plus subsequent
reallocations of prior-year unspent funds. California's
share of the federal grant has remained approximately 17
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percent of the national appropriation over the last five
years.
Related legislation
SB 1190 (Hancock) 2012, would require the department to
provide quarterly briefings on the development of the EBT
system for WIC usage until the system is fully operational.
That bill is pending in the Assembly.
AB 2322 (Gatto) 2012, requires DPH adopt regulations
surrounding initiating moratoriums on authorizing new WIC
program vendors. That bill is pending in the Senate.
PRIOR VOTES
Assembly Floor: 70 - 0
Assembly Appropriations:17 - 0
Assembly Health 19 - 0
POSITIONS
Support:
California Chamber of Commerce
California Growers Association
California Retailers Association
Oppose: None received
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