BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 2280
Author: Lara (D)
Amended: 8/24/12 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE : 5-0, 6/26/12
AYES: Liu, Emmerson, Berryhill, Wright, Yee
NO VOTE RECORDED: Hancock, Strickland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 5/25/12 - See last page for vote
SUBJECT : California Special Supplemental Food Program
for Women,
Infants and Children
SOURCE : Author
DIGEST : This bill requires the Department of Public
Health (DPH), within 30 days after the department has
completed its first investigation, 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. Requires DPH to
deliver the notice to the vendor 30 days before conducting
a second investigation for purpose of establishing a
pattern of violation. States legislative intent that these
provisions clarify existing law.
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Senate Floor Amendments of 8/24/12 alter the bill by
prohibiting the DPH from initiating a second investigation
of a Women, Infants and Children program vendor until 30
days after the vendor has been notified of a first
violation and specify where that notice is to be delivered.
They also remove language that would have allowed DPH to
bypass the notification process in cases where DPH felt
notification would hamper an investigation. The amendments
also delete the requirement that the DPH provide vendors
with specific information about a violation, including the
location, date and description of the illegal transaction.
That language is replaced with general language requiring
"a description of the initial violation" with permission to
"include information that may assist the vendor to take
corrective action" including providing a 60-day window of
the date in which the violation.
ANALYSIS : 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.
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 five and
younger.
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.
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
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vendor's business to verify food prices, conduct and
investigation or otherwise determine compliance.
5.Defines in federal law specified violations and
sanctions.
This bill:
1.Requires that DPH 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 DPH provide that notice no later than 30
days after the department completes the investigation.
3.Requires that DPH deliver notice to a WIC vendor that it
is in violation of law 30 days before conducting a second
investigation of the same vendor for purposes of
establishing a pattern of violation. This notice must be
delivered:
A. To the vendor's most recent business ownership
address on file with DPH, or
B. To the vendor location upon identification of a
violation during a vendor monitoring visit, as
specified.
1.Requires that the written notice to the vendor includes a
description of the initial violation and permits the
department to include information to assist the vendor to
take corrective action, including identifying a 60-day
window in which the violation occurred.
2.Defines a "violation," as specified.
3.Declares legislative intent that this bill clarifies
existing law.
Background
The WIC program in California provides nutritional food
supplements to woman, infants and children who have been
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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 five. 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
percent of the national appropriation over the last five
years.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, costs
associated with this legislation would be minor and
absorbable within existing resources.
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SUPPORT : (Verified 8/27/12)
California Chamber of Commerce
California Growers Association
California Retailers Association
ARGUMENTS IN SUPPORT : According to the author's office,
this bill reconciles current inconsistencies between state
regulations and federal law pertaining to vendor
notifications of WIC program violations.
ASSEMBLY FLOOR : 70-0, 05/25/12
AYES: Achadjian, Alejo, Allen, Ammiano, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng,
Feuer, Fong, Furutani, Beth Gaines, Galgiani, Garrick,
Gatto, Gordon, Gorell, Hagman, Halderman, Harkey,
Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman,
Jeffries, Jones, Lara, Logue, Bonnie Lowenthal, Mansoor,
Mendoza, Miller, Mitchell, Monning, Morrell, Nestande,
Nielsen, Norby, Olsen, Pan, V. Manuel Pérez, Portantino,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Atkins, Bill Berryhill, Fletcher,
Fuentes, Grove, Hall, Knight, Ma, Perea, Silva
CTW:nd 8/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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