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