BILL ANALYSIS Ó
AB 2322
Page 1
Date of Hearing: May 16, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2322 (Gatto) - As Amended: May 1, 2012
Policy Committee: HealthVote:19 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the Department of Public Health (DPH) to
adopt regulations regarding DPH moratoriums on authorizing new
California Special Supplemental Food Program for Women, Infants,
and Children (WIC program) vendors. Specifically, this bill:
1)Requires the regulations to include the following:
a) Define effective caseload management level.
b) Identify the maximum duration of the moratorium.
c) Require a vendor alert or other communication regarding
the initiation of a moratorium.
d) Require DPH to process applications during the
moratorium if DPH was notified of the vendors' intent prior
to the moratorium.
e) Require DPH to provide retail vendors with 30-day notice
prior to the effective date or extension of a moratorium.
2)Requires DPH to seek all necessary federal approvals to
implement this legislation.
FISCAL EFFECT
One-time costs of $98,000 (federal WIC funding), spread over
three years, for the workload associated with DPH promulgating
the required regulations.
COMMENTS
1)Purpose . According to the author, over the years, supermarkets
and grocery stores have been driven out of local communities
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by slim margins, restrictive zoning requirements, and high
rents. Grocers have made strong efforts at opening stores, in
both rural and urban communities to provide access to healthy
affordable food. The author maintains that when a grocer
looks to expand operations, there are a number of factors an
operator has to understand and sometimes overcome to locate a
store. These challenges, the author asserts, range from
putting together sufficient parcels of land, zoning,
permitting, and making sure they can serve all members of the
community, especially in low-income areas where they must be
able to accept WIC benefits.
The author argues that a grocer will often make sure that
there are no moratoriums or delays in obtaining the
appropriate WIC retail food vendor location authorizations
before purchasing a new property. As a result, when a
moratorium is enacted, grocers are less likely to expand
operations into communities who may need these services most.
The author indicates that currently there are no rules or
regulations outlining how much notice DPH must provide retail
food vendors prior to enacting a moratorium, how long a
moratorium will be in place, or the actions that will be taken
to address the problem for which the moratorium was enacted.
This lack of information and uncertainty makes it challenging
for grocers to plan and serve all members of their community.
2)WIC Program . WIC is a 100% federally funded nutrition and
health program that provides education and food to pregnant
and lactating women and children up to five years old. The
program is designed to provide temporary assistance during
those brief periods in life that may be more challenging:
during pregnancy, the birth of a newborn, or having a young
child with nutrition and/or health conditions. Most families
participating in WIC, according to DPH, are employed, with
incomes at or below 185% of the federal poverty level
(currently $42,642 for a family of four).
DPH administers contracts with 84 local agencies - half local
governments and half private, non-profit community
organizations - which operate WIC centers in 650 locations
statewide. At these centers, approximately 3,000 local WIC
staff members assess WIC eligibility based on residency
requirements, income, and health or nutritional risk, and
issue six million food checks each month. Each check is valid
for a 30-day period and is payable for a specific type and
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quantity of food. On average, WIC checks equate to about $63
per month in food per participant.
3)Related Legislation . AB 2280 (Lara) requires the Department of
Public Health (DPH) to notify a California Special
Supplemental Food Program for Women's Infants, and Children's
(WIC program) vendor, in writing, within 30 days if DPH
determines that the vendor has committed a violation. That
bill is currently pending before this committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081