BILL ANALYSIS
AB 2384
Page 1
ASSEMBLY THIRD READING
AB 2384 (Leno)
As Amended May 26, 2006
Majority vote
HEALTH 9-3 APPROPRIATIONS
(vote not available)
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|Ayes:|Chan, Berg, Dymally, | | |
| |Frommer, Jones, Lieu, | | |
| |Montanez, Negrete McLeod, | | |
| |Ridley-Thomas | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Aghazarian, Nakanishi, | | |
| |Strickland | | |
| | | | |
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SUMMARY : Establishes a "Healthy Food Purchase" pilot program
(pilot program) to increase the sale and purchase of fresh
fruits and vegetables in low-income communities. Specifically,
this bill :
1)Requires the Department of Health Services (DHS), in
consultation with the Department of Food and Agriculture
(CDFA), to develop up to seven pilot programs with the
following components:
a) Strategies aimed at small grocers in targeted low-income
neighborhoods to increase the offerings of fresh fruits and
vegetables in those communities. Requires DHS to provide
support or assistance to obtain refrigerated produce
display cases, as specified. Requires DHS to use federal
funds for technical assistance where appropriate; and,
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. Requires DHS
to seek any necessary federal government approvals to allow
use of the Food Stamp Electronic Benefits Card, as
specified.
2)Requires DHS, in developing the program, to include the
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following:
a) At least one county that is above the food stamp average
county participation and at least one county that is below
the food stamp average county participation;
b) At least one county with high above-average rates of
poverty, food insecurity, and obesity;
c) At least one urban county; and
d) At least one rural county.
3)Requires DHS to consider the following in choosing counties to
participate in the program:
a) Level of need in the community;
b) Size of food stamp population;
c) Need for geographic diversity; and,
d) Availability of technology in targeted food retailers to
collect the data necessary to evaluate the program.
4)Requires DHS to seek all necessary approvals to establish the
pilot program, and apply for available federal matching funds
to support the work of the pilot program.
5)Requires DHS, in consultation with the United States
Department of Agriculture's Economic Research Service, to
develop a process for evaluating the effectiveness of the
pilot program. Requires DHS to make recommendations to the
Legislature regarding the continuation of the pilot program,
and any state and federal policy changes needed to support the
goals of the pilot program.
6)Requires the evaluation to examine the impact of the various
strategies employed in the pilot program on the purchase of
fresh produce and on any increase in retailer space devoted to
the sale of fresh fruits and vegetables, and the effect this
has on retailer profitability. Requires the evaluation to
develop control groups to test alternative to the reliance on
uniform product codes for identification of fresh produce
deemed eligible for financial incentives. Requires DHS to
contract with an independent external evaluator for the
evaluation.
7)Makes implementation of this bill contingent upon an
appropriation in the annual Budget Act or another statute or
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the receipt of federal funding.
8)Sunsets the provisions of this bill on January 1, 2011.
9)Makes legislative findings and declarations on the importance
of eating healthy and making available fresh fruits and
vegetables.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Assuming implementation, unknown General Fund (GF) costs,
likely in the millions of dollars annually, for implementation
of the pilot program until January 2010, 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)One-time GF costs of approximately $100,000 for the required
evaluation and report to the Legislature.
3)Implementation of this bill is contingent upon an
appropriation in the annual Budget Act or another statute or
the receipt of federal funding.
COMMENTS : According to the California Food Policy Advocates,
the sponsor of this bill, this bill strengthens 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. It states that
there is currently no state law or policy aimed at increasing
the availability of fruit and vegetables in low-income
neighborhoods. California, like the other states, has a growing
obesity problem, where approximately 60% of our adults and over
25% of our children are obese or overweight. The consequences
of obesity are devastating to individuals, characteristically
involving diabetes, hypertension, heart disease, cancer and
other debilitating diseases. Physicians, nutritionists, and
other experts recognize the importance of a diet rich in fruit
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and vegetables as one key strategy in preventing obesity.
Unfortunately, as countless studies document, residents of
low-income neighborhoods generally lack access to fruit and
vegetables.
The Governor's 2006-2007 Budget includes a $6 million GF
proposal to support a comprehensive obesity prevention program.
A goal of the proposal is to support healthy school and
workplace environments to promote physical activity and healthy
eating. The proposed funding will also support Medi-Cal managed
care efforts to increase obesity-related screening and
counseling and provide referral and treatment for overweight and
at-risk-for-overweight children. California Obesity Prevention
Initiative (COPI), established within DHS, is tasked with
promoting physical activity and healthy eating, addressing the
societal, technological, and environmental influences on obesity
to reduce the prevalence of obesity and its associated health
risks among Californians. COPI's Web site indicates that its
long term goals include reducing the life-long complications of
childhood overweight and obesity and their associated adverse
health outcomes, by intervening with children and youth who are
high risk; addressing the disparities in obesity prevalence and
treatment for underserved and vulnerable populations in
California, especially for children and youth; and, creating
environments that support healthy eating and physical activity
for all Californians, particularly for children and youth.
Analysis Prepared by : Rosielyn Pulmano / HEALTH / (916)
319-2097
FN: 0014876