BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2602
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 2602 (Eggman) - As Amended:  April 21, 2014 

          Policy Committee:                              EducationVote:6-0
                       Agriculture                               7-0

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

           SUMMARY  

          This bill establishes the Farm to School Program within the  
          Department of Food and Agriculture (DFA), contingent upon  
          funding provided by the Legislature.  Specifically, this bill:

          1)Provides elementary schoolsites with 65% of pupils eligible  
            for free or reduced-priced meals (FRPM) may receive up to  
            $5,000 in grant funds.  Grant funds can only be used for the  
            following purposes:  a) the development of salad bars; b)  
            staff training related to the preparation of fresh foods; c)  
            food literacy education, including, but not limited to,  
            through farms and gardens; and, d) kitchen equipment related  
            to the preparation of fresh foods.  

          2)Requires the Secretary of Food and Agriculture (secretary) to  
            convene an interagency working group on increasing the  
            provision of fresh and nutritious school meals to pupils that  
            includes, but is not limited to, representatives of the DFA,  
            the California Department of Education (CDE), and the State  
            Department of Public Health (DPH).  Requires the working group  
            to advise the secretary on ways to develop farm to school  
            programs and availability of state and nonstate resources and  
            technical assistance to help school districts and COEs  
            establish programs.

          3)Requires the secretary, the CDE, and the DPH to use existing  
            resources to comply with the requirements of this bill.

          4)Requires grantees to report on expenditures in a manner  
            prescribed by the secretary. Authorizes a school district or  
            COE to submit one report for all the schools that have  








                                                                  AB 2602
                                                                  Page  2

            received grants that are under the jurisdiction of the school  
            district or COE.

          5)Specifies implementation of the provisions of this bill is  
            contingent upon appropriation of funds by the Legislature.  

           FISCAL EFFECT  :  

          1)Unknown state costs, likely in the millions of dollars. This  
            bill does not specify total grant funding, does not identify a  
            funding source and does not limit the number of grants  
            awarded.  Roughly 4,000 school sites have 65% of pupils  
            eligible for FRPM.  For illustration, assuming 2,000 school  
            sites qualify for the maximum grant award of $5,000, total  
            costs would be $12 million. 

          2)This bill requires DFA to administer the grant with existing  
            resources.  DFA, however, indicates the costs to administer  
            this new grant program would not be absorbable. This bill does  
            not specify a total grant amount therefore it is difficult to  
            estimate administrative costs.  Grant programs can allow  
            anywhere from 5% to 30% of the grant to be used for  
            administration, depending on the complexity of the grant.  For  
            example, if the total grant was $6 million, DFA would likely  
            need $300,000 to $400,000 to administer the program.  

           COMMENTS   

           1)Purpose.  This bill establishes a farm to school program with  
            the goal of increasing access to food grown by local farmers.   
            The author cites high rates in childhood obesity and diabetes  
            as a need to increase access to fresh food in schools.  
            California Food Policy Advocates support the bill and note a  
            recent survey found one in three school districts lack  
            adequate kitchen supplies to prepare a variety of fruits and  
            vegetables.  

           2)Background  .  Existing law requires local educational agencies  
            to provide one nutritiously adequate free and reduced-price  
            meal to needy children once a day during each schoolday. Meals  
            are required to meet certain national and state nutrition  
            guidelines. 

            School meal programs are funded predominantly by the USDA  
            through its National School Lunch (NSL) and SBP and  








                                                                  AB 2602
                                                                  Page  3

            supplemented by state funds.  These programs are federal  
            entitlement programs, meaning federal funds are provided as  
            long as recipients meet income eligibility criteria.   
            According to the CDE, on an average day, more than 4.7 million  
            meals are served at approximately 43,000 locations.  

            The federal Healthy, Hunger-Free Kids Act of 2010 made changes  
            to the NSL and School Breakfast Program through regulations  
            adopted in 2012 to, among others, improve school nutrition  
            quality.  The Act also provided $5 million annually for the  
            Farm to School Grant Program to improve access to local foods  
            in eligible schools.  The grants provide between $15,000 to  
            $100,000 to be used for training, supporting operations,  
            planning, purchasing equipment, developing school gardens,  
            developing partnerships and implementing farm to school  
            programs.    

            Many districts currently operate farm to school programs with  
            existing resources. Santa Monica-Malibu Unified School  
            District's Farmers' Market Salad Bar was one of the first  
            programs, established in 1997.  It was expanded to all schools  
            in the district by 2001.  The Davis Joint Unified School  
            District has a farm to school program where fresh fruits and  
            vegetables are purchased from local farms and vendors.  Having  
            the proper equipment and facilities are major components of  
            the food program.  Other models of farm to school programs  
            include establishing school gardens (used for educational and  
            food program purposes) and purchasing from a third party that  
            delivers locally grown produce.         


           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081