BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2385
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          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2385 (Ting) - As Amended:  April 8, 2014

          Policy Committee:                               
          AgricultureVote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill creates the Market Match Nutrition Incentive Program  
          (MMNIP) for encouraging the purchase and consumption of fresh  
          California fruits, nuts, and vegetables by directly linking  
          producers with certain benefit recipients; creates the MMNIP  
          account within the Department of Food and Agriculture (DFA) to  
          collect funds from the federal Food Insecurity Nutrition  
          Incentives Grant Program (a part of the federal Agricultural Act  
          of 2014) and provide grants under MMNIP.

          The bill directs the DFA to solicit grant proposals, score, and  
          award grant funds in accordance with forthcoming federal  
          regulations, and establish standards, funding schedules, and  
          procedures for awarding grants in consultation with the US  
          Department of Agriculture (USDA).  The bill also establishes  
          standards for prioritizing grants within the state. 

           FISCAL EFFECT  

          Unknown but likely significant GF costs to DFA, in excess of  
          $150,000, to establish the program, solicit proposals, grant  
          funds, and oversee compliance among grant recipients.

           COMMENTS  

          1)  Purpose.   According to the author, the new federal farm bill  
            made substantial cuts to the Supplemental Nutrition Assistance  
            Program (SNAP), the federal funding source for CalFresh), the  
            federal Women, Infants & Children (WIC) program, and other  
            food and nutrition safety net programs that serve people in  
            need, but the federal MMNIP was expanded to provided $100  








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            million in grants over five years.  The author contends  
            California is in position to benefit from this increase due to  
            the roughly 700 certified farmers' markets and over 2,200  
            certified producers.

          2)  Recipients and Benefit.  Benefit recipients eligible to  
            receive additional funds include recipients under CalFresh,  
            WIC, the federal Senior Farmers' Market Nutrition Program, and  
            Supplemental Security Income or State Supplementary Payment  
            recipients.  The MMNIP is designed to double the value of  
            fresh California fruits, nuts, and vegetables that may be  
            purchased by eligible benefit recipients.

          3)  Roots of Change Pilot.   The sponsor, Roots of Change, used  
            $1.9 million from a DFA specialty block grant to create and  
            fund a market match pilot program from 2009 to 2013.  Roots of  
            Change helped establish 14 community-based partners operating  
            in 17 counties, implementing the program in 140 markets and  
            serving 37,000 families.  Currently, the program is funded by  
            philanthropic sources at a reduced level, thereby limiting its  
            scope and benefit.  The sponsor states that in 2013, $238,000  
            in the program generated $1.54 million in purchases of  
            products.  The sponsor estimates that a $2 million grant from  
            USDA could generate purchases of $18 million, serve 100,000  
            clients, and generate hundreds of farm jobs.

          4)  Current Market Match Programs.   While this bill would  
            establish a market match program at the state level, there are  
            currently eleven market match programs operating in California  
            known as the California Farmers' Market Consortium.  These  
            programs are run by a group of nonprofits and cooperatives and  
            already receive federal market match funds.  According to DFA,  
            consumers in California were able to purchase over $1.8  
            million in specialty crops using CalFresh and WIC benefits  
            between 2010 and 2012 through these local programs.

            Furthermore, while this bill would codify a MMNIP within DFA,  
            such a program is not a necessary precondition to receiving  
            USDA funds.  The benefits envisioned by this bill are, in many  
            cases, already being achieved through local programs, and may  
            also be achievable within DFA without necessarily requiring  
            the legislation proposed here.


           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081 








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