BILL ANALYSIS
AB 2384
Page A
Date of Hearing: May 3, 2006
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 2384 (Leno) - As Introduced: February 23, 2006
Policy Committee: HealthVote:9-3
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill requires the Department of Health Services (DHS) to
develop a "Healthy Food Purchase" pilot program to increase the
sale and purchase of fresh fruits and vegetables in low-income
communities. Specifically, this bill:
1)Requires DHS to design the program to include the following
two components:
a) Strategies aimed at small grocers in targeted low-income
neighborhoods to increase the offerings of fresh fruits and
vegetables in those communities. In selected pilot program
communities, DHS would be required to provide targeted food
retailers with support to obtain refrigerated produce
display cases through the assessment of the feasibility of
a variety of financing methods including, but not limited
to, leasing, lending, small business and economic
development support, and others. Additionally, DHS must
provide technical assistance to targeted retailers on the
purchase, storage, marketing, and display of fresh produce.
b) Strategies aimed at food stamp recipients to increase
their purchase of fresh fruits and vegetables by making
those products more affordable, including the development
and implementation of financial incentives. DHS would be
required to seek any necessary federal government approvals
to allow use of the Food Stamp Electronic Benefits Card to
provide those financial incentives.
2)Requires DHS to seek all necessary approvals to establish the
pilot program, to apply for available federal matching funds
AB 2384
Page B
to fund the pilot program, and requires DHS to develop a
process for evaluating the effectiveness of the program, and
to make recommendations to the Legislature regarding the
possible expansion of the pilot program.
FISCAL EFFECT
1)Unknown GF costs, likely in the millions of dollars annually,
for implementation of the pilot program, depending upon the
counties chosen, number of grants provided and the amount and
type of incentives provided to food stamp recipients. For
example, if $5,000 in assistance were provided to 100 small
grocers and an additional $10 per month were provided to
20,000 Food Stamp recipients to encourage the purchase of
fresh fruits and vegetables, GF costs would be $2.9 million.
Additional amounts would be required for system changes and
DHS program administration.
2)GF costs of approximately $100,000 for the DHS evaluation and
recommendations to the Legislature.
COMMENTS
1)Purpose . This bill is sponsored by California Food Policy
Advocates (CFPA) to strengthen California's efforts to prevent
obesity by increasing access to fresh fruit and vegetables in
low-income communities where fruit and vegetables typically
are unavailable or costly. California, like other states,
has a growing obesity problem, with approximately 60% of
adults and 25% of children obese or overweight. The
consequences of obesity are devastating to individuals, and
include diabetes, hypertension, heart disease, cancer and
other debilitating diseases. Physicians, nutritionists and
other experts recognize the importance of a diet rich in fruit
and vegetables as one key strategy in preventing obesity.
CFPA states that unfortunately, as countless studies document,
residents of low-income neighborhoods generally lack access to
fruit and vegetables.
2)Governor's Obesity Initiative . The governor's 2006-2007
budget states the Administration is developing proposals for
the May Revision to advance a healthy California, including
opportunities to improve access to affordable fruits and
AB 2384
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vegetables in low-income communities and leverage publicly
funded health insurance programs to promote improvements in
obesity prevention and treatment services.
3)California Nutrition Network . DHS administers the "California
5 a Day-For Better Health Program" (5 a Day) as part of DHS'
California Nutrition Network for Healthy, Active Families
(Network), a public/private partnership that delivers
nutrition education activities within targeted low-resource
schools and community sites. Established in 1988 and adopted
nationally in 1991, 5 a Day's purpose is to encourage Food
Stamp eligible Californians to consume fruits and vegetables
every day and be physically active. The annual budget and
staffing information for the Network, including 5 a Day, is
$90 million in federal funds.
Analysis Prepared by : Scott Bain / APPR. / (916) 319-2081