BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2384
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2384 (Leno)
          As Amended August 7, 2006
          Majority vote
           
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          |ASSEMBLY:  |51-29|(May 31, 2006)  |SENATE: |25-13|(August 24,    |
          |           |     |                |        |     |2006)          |
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           Original Committee Reference:    HEALTH  

           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, 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 available  
               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,  
               in consultation with the State Department of Social  
               Services (DSS) to seek any necessary federal government  
               approvals to allow the use of the Food Stamp Electronic  
               Benefits Card, as specified.

          2)Requires DHS, in developing the pilot program, to include the  
            following:

             a)   At least one county that is above the food stamp average  
               county participation;
             b)   At least one county that is below the food stamp average  








                                                                  AB 2384
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               county participation;
             c)   At least one county with high above-average rates of  
               poverty, food insecurity, and obesity;
             d)   At least one urban county; and,
             e)   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, in consultation with the United States (U.S.)  
            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.  

          5)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.  

          6)Makes implementation of this bill contingent upon an  
            appropriation in the annual Budget Act or another statute or  
            the receipt of federal funding.  

          7)Sunsets the provisions of this bill on January 1, 2011.

          8)Makes legislative findings and declarations on the importance  
            of eating healthy and making available fresh fruits and  
            vegetables.   

           The Senate amendments  require DHS to consult with DSS when  








                                                                  AB 2384
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          seeking federal approvals for the use of the Food Stamp  
          Electronic Benefits Card, as specified.  Make other technical  
          non-substantive changes.  
           
           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.  

          FISCAL EFFECT  :  According to the Senate Appropriations Committee  
          analysis:

                            Fiscal Impact (in thousands)

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

          U.S. Department of Agriculture programs may provide financing  
          for most components of the program. Total annualized cost to the  
          federal government estimated to be $10 million.
                    
           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  
          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.


           Analysis Prepared by  :    Rosielyn Pulmano / HEALTH / (916)  
          319-2097              FN: 0016760