SB 907: Electronic benefits transfer systems: farmers’ markets.

Existing federal law establishes 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 establishes a statewide electronic benefits transfer (EBT) system, administered by the State Department of Social Services, for the purpose of providing financial and food assistance benefits, including CalFresh benefits. Existing law authorizes, to the extent and manner allowed by federal law and regulation, an interested collective group or association of produce sellers that is United States Department of Agricultures Food and Nutrition Service authorized and actively participating in produce sales in a farmers market, flea market, or certified farmers market to initiate and operate an electronic benefit transfer acceptance system on behalf of its members.

This bill would establish the Local, Equitable Access to Food (LEAF) Program and would require, upon an appropriation by the Legislature for these purposes, the Department of Food and Agriculture, with support from the State Department of Social Services, to establish a noncompetitive grant program designed to expand the use of EBT acceptance systems at California certified farmers markets and tribe-operated farmers markets on Indian reservations. The bill would, as part of that grant program, require grants to be provided to certified farmers market operators or farmers markets operated by tribal governments. The bill would limit the use of grant funds for specified activities relating to expanding the use of EBT acceptance systems at farmers markets, including, among others, scaling and improving EBT processes at existing certified farmers markets. The bill would create certain additional requirements for certified farmers markets that use grant funds to hire an individual, or to contract with a third party, to operate an EBT acceptance system, including a requirement that the person operating the EBT acceptance system be available at all times the certified farmers market is open to the public.

The bill would also, as part of that grant program, require grants to be provided to nonprofit organizations to provide technical assistance to certified farmers markets on the implementation of high-quality EBT acceptance systems. The bill would require nonprofit organizations that receive this grant to use grant funds to create materials that explain the EBT transaction process and translate those materials, as specified. The bill would also authorize the nonprofit organization to use grant funds for certain other purposes, including assisting certified farmers markets in becoming authorized retailers under the CalFresh program.

The bill would require the department to submit a report to all appropriate legislative committees 9 months after the department has issued sufficient grants to evaluate the program. The bill would prohibit the departments from using more than 5 percent of any funds appropriated for the purpose of these provisions on administrative costs.