Creates CalFresh fruit and vegetable pilot project

Existing federal law provides for the federal Supplemental Nutrition Assistance Program (SNAP), known in California as CalFresh, under which supplemental nutrition assistance benefits allocated to the state by the federal government are distributed to eligible individuals by each county. Existing law, administered by the State Department of Social Services, provides for the establishment of a statewide electronic benefits transfer (EBT) system for the purpose of providing financial and food assistance benefits, including CalFresh benefits.

This bill would establish the California Fruit and Vegetable EBT Pilot Project, which requires the department, in consultation with the Department of Food and Agriculture and stakeholders with experience operating CalFresh nutrition incentive programs, to include within the EBT system a supplemental benefits mechanism that allows an authorized retailer, as defined, to deliver and redeem supplemental benefits, as specified. The bill would define supplemental benefits to mean additional funds delivered to a CalFresh recipient’s EBT card upon purchase of California-grown fresh fruits and vegetables using CalFresh benefits, and to be redeemed only for purchases allowed under the CalFresh program at an authorized retailer.

The bill would create in the State Treasury the California Fruit and Vegetable EBT Grant Fund, as specified. The bill would, upon the deposit of sufficient moneys into the fund, as determined by the department, and upon the appropriation of moneys from the fund by the Legislature for this purpose, also require the department to provide a minimum of 3 grants to nonprofit organizations or government agencies for pilot projects to implement and test the supplemental benefits mechanism in existing retail settings, and to develop and adopt guidelines for awarding the grants, that includes selection criteria requiring that grant applicants demonstrate, among other things, previous experience and effectiveness in administering CalFresh nutrition incentive programs, or similar supplemental benefits programs. The bill would require the department to evaluate the pilot projects and make recommendations to further refine and expand the supplemental benefits mechanism, and to submit a report to the Legislature with the outcomes of that evaluation on or before January 1, 2021. The bill would require the department to seek any necessary federal approvals to establish this pilot project, and would repeal these provisions on January 1, 2024.