BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Kevin Murray, Chairman

                                           2384 (Leno)
          
          Hearing Date:  8/17/2006        Amended: 8/7/2006
          Consultant:  John Miller        Policy Vote: Health 5 - 3
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 2384 requires the Department of Health  
          Services to develop a "Healthy Food Purchase" pilot program to  
          increase the sale and consumption of fresh fruits and vegetables  
          in low income communities. Implementation is contingent upon a  
          budget appropriation.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2006-07      2007-08       2008-09     Fund
           Technical assistance   $ 1,000    $  1,000    $ 1000    GF

          US Dept. of Agriculture programs may provide financing for most  
          components of the program. Total annualized cost to the federal  
          government estimated to be $10 million.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE

          This measure is intended to increase consumer access to fresh  
          fruits and vegetables in small neighborhood grocery stores and  
          to incentivize fresh produce purchases by low income consumers.  
          The author indicates that access to fresh produce in small urban  
          stores is very limited, and the exclusive offering of processed  
          foods contributes substantially to the obesity problem and its  
          associated costs.

          AB 2384 requires the Department of Health Services to develop up  
          to seven pilot programs which will include strategies aimed at  
          small grocers in targeted neighborhoods to increase offerings of  
          fresh fruits/vegetables. Incentives may include financing for  
          refrigerated produce cases, technical assistance and financing  
          support (all using federal funding). The bill further requires  
          the department to develop strategies aimed at food stamp  
          recipients to increase their purchase of fresh produce, and to  
          consider and pursue approvals for discounts through the  










          electronic benefits cards. The department is required to seek  
          necessary approvals, apply for any available federal funding,  
          and to arrange for an evaluation of the program.  The bill  
          specifies a variety of counties be used to test the outcome of  
          the program. 

          Implementation of the bill is contingent upon an appropriation  
          in the budget or another statute and expressly states that the  
          bill be implemented with federal participation. The 06-07 Budget  
          did not contain an appropriation for this program. The DHS notes  
          that certain pilot costs would qualify for federal funding  
          through US Department of Agriculture and other programs. The  
          department recommends implementing the pilots in four counties  
          with ten targeted stores in each county. This 4 county effort  
          would require additional funding of approximately $10 million  
          annually to provide financial incentives for the length of the  
          project and $1.8 million in one time services for technical  
          services, evaluation and oversight.