BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                 AB 2385
                                                                 Page  1

         Date of Hearing:   April 30, 2014

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                           Susan Talamantes Eggman, Chair
                     AB 2385 (Ting) - As Amended:  April 8, 2014
          
         SUBJECT  :  Market Match Nutrition Incentive Program.

          SUMMARY  :  Creates the Market Match Nutrition Incentive Program  
         (MMNIP) and account within the California Department of Food and  
         Agriculture (CDFA); and, creates new definitions and requirements  
         for CDFA to manage the program.  Specifically,  this bill  :  

         1)Establishes the MMNIP within CDFA for encouraging the purchase  
           and consumption of fresh California fruits, nuts, and vegetables  
           (products) by directly linking producers with nutritional  
           benefit clients (clients).

         2)States the legislative intent of MMNIP is to double the  
           purchasing value of clients when purchasing products, as  
           specified.

         3)Defines "nutrition benefit client" to mean a person who receives  
           services or payments through any of the following:

            a)   CalFresh, as defined in state statutes;

            b)   Federal WIC (women, infants and children) Farmers' Market  
              nutrition Act of 1992; 

            c)   Senior Farmers' Market Nutrition Program, as specified in  
              federal code; and, 

            d)   Supplemental Security Income or State Supplementary  
              Payment, as specified in federal code.

         4)Defines "qualified entity" to mean a certified farmers' market,  
           an association of certified producers, or a nonprofit  
           organization representing a collective or association of  
           certified producers authorized to accept federal Supplemental  
           Nutrition Assistance Program (SNAP) benefits from clients at a  
           farmers' market.  Requires certified producers to be certified  
           by a county agricultural commissioner.

         5)Creates the MMNIP account within CDFA to collect funds from the  
           federal Food Insecurity Nutrition Incentives Grant Program,  







                                                                 AB 2385
                                                                 Page  2

           which is part of the Agricultural Act of 2014 (Farm Bill), used  
           to provide grants under MMNIP and administer MMNIP according to  
           the following:

            a)   Requires MMNIP funds be spent in accordance with federal  
              regulations, yet to be developed and upon a federal  
              appropriation, to be awarded in the form of grants to  
              qualified entities for market match programs;

            b)   Requires CDFA to establish minimum standards, funding  
              schedules and procedures for awarding grants, in consultation  
              with the United States Department of Agriculture (USDA) and  
              other specified parties of interest; and, 

            c)   Requires prioritizing grants based upon, but not limited  
              to, the degree of existence of the following demographic  
              conditions and character of the communities in which direct  
              product sales are made by authorized vendors operating with  
              qualified entities:

              i)     The number of people eligible for, or receiving,  
                nutrition benefit program services;

              ii)    The prevalence of diabetes, obesity, and other  
                diet-related illnesses;

              iii)   The availability, or access to, products; and,

              iv)    The qualified entities with the greatest efficiencies  
                in administration of a market match program.

          EXISTING LAW  establishes a statewide program, CalFresh,  
         administered by state and local agencies, that enables recipients  
         of aid and other low-income households to receive federal food  
         assistance benefits; provides eligibility requirements conforming  
         with federal rules and regulations; and, reporting requirements.

         Existing federal law establishes SNAP, formerly the food stamp  
         program, administered by USDA, which imposes specified rules on  
         specified program participants and limits benefits based on those  
         rules.  The Farm Bill was recently reauthorized, enacted February  
         7, 2014, and establishes state grants for programs that supplement  
         nutrition benefits that are spent on products at farmers' markets,  
         based upon specified criteria.  USDA is in the process of  
         developing the regulations for implementation of the Farm Bill.   
         The law contains various provisions that affect SNAP eligibility,  







                                                                 AB 2385
                                                                 Page  3

         benefits, and program administration, including changes mandated  
         by the law and those that provide additional flexibility for state  
         agencies.  All provisions in the Farm Bill related to SNAP are  
         effective as of the date of enactment, unless otherwise stated.

          FISCAL EFFECT  :  Unknown.  Legislative Counsel has keyed this bill  
         fiscal.

          COMMENTS  :  According to the author, the new Farm Bill had  
         unprecedented cuts to SNAP, WIC and other "safety net" programs  
         that serve people in need, but the MMNIP was expanded to provided  
         $100 million in grants over five years.  Further, California is in  
         position to benefit from this increase due to the roughly 700  
         certified farmers' market and over 2,200 certified 
         producers.

         The sponsor, Roots of Change, state that they used $1.9 million  
         from a CDFA Specialty Block Grant, to create and fund a Market  
         Match Pilot Program (MMPP) from 2009 to 2013.  This resulted in 14  
         community-based partners now operating in 17 counties,  
         implementing MMPP in 140 markets, serving 37,000 families.   
         Currently, MMPP is funded only by philanthropic sources at a lower  
         level, thereby limiting the scope and that benefit to those in  
         need.  The sponsor states that in 2013, $238,000 in the MMPP  
         generated $1.54 million in purchases of products.  They estimate  
         that a $2 million grant from USDA could generate purchases of $18  
         million, serve 100,000 clients, and generate hundreds of farm  
         jobs.

         Currently, it is estimated that some 11.8 million people are  
         eligible for SNAP benefits in California, with some 4.2 million  
         participating in the CalFresh program.  This reflects the need for  
         fresh products purchasing options.

         Due to drought conditions here in California and reduced water  
         deliveries, it is likely that food prices will be increasing and  
         the benefit, while significant, may not be as great as predicted.   
         Further, if a pilot program already exists, the committee may wish  
         to consider if legislation is needed to create a program that will  
         be based upon federal rules and regulations that are yet to be  
         developed, rather than state statutes.
         
          REGISTERED SUPPORT / OPPOSITION  :   

          Support 
          







                                                                 AB 2385
                                                                 Page  4






















































                                                                 AB 2385
                                                                 Page  5


          Roots of Change (Sponsor) 
          Adam/Vermont & Gardena CFMS
          Agriculture and Land-based Training 
               Association, Salinas
          Alchemist Community Development 
               Corporation
          California Alliance with Family Farmers
          California Farm Bureau Federation
          California Food Policy Advocates
          California Hunger Action Coalition 
          California Partnership
          California State Grange
          Center for Food Safety, San Francisco
          Charles Drew University of Medicine 
               and Science
          City of Santa Monica - Pico Farmers' Market
          City Slicker Farms, Oakland
          Coastside Farmers' Markets
          Community Health Councils, Inc., Los Angeles
          Contra Costa Certified Farmers' Markets
          CUESA, San Francisco
          Ecology Center, Berkeley
          Farm Fresh to You and Capay Organic
          Farm to Pantry
          Food Access Coalition
          Food Chain Workers Alliance, Los Angeles
          Heart of the City Farmers' Market, 
               San Francisco
          Homeless Healthcare Los Angeles
          Hunger Action Los Angeles
          Innercity Struggle
          Kern County Network for Children
          Locally Delicious, Humboldt County
          Los Angeles Community Action 
               Network
          Mar Vista Farmers' Market
          Marin  Food Policy Council
          People's Grocery
          Point Reyes Farmers' Market
          Public Health Institute
          Roman Catholic Diocese of Fresno
          Rominger Brothers Farms, Inc.
          Sierra Orchards
          Slow Food California








                                                                 AB 2385
                                                                 Page  6

          Social Justice Learning Institute
          St. Mary's Episcopal Church, Los
               Angeles
          Thai Community Development 
               Center, Los Angeles
          The Greener Good Farmers' Markets, 
               Long Beach
          United Way of Kern County
          Valley Farmers' Market Association
          VELA, Inc.
          Visalia Farmers Market
          Women Organizing Resources, Knowledge,
                and Services

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084