E2SHB 2798

HOUSE BILL REPORT
E2SHB 2798

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed House:
EnterDate

Brief Description: Enacting the local farms-healthy kids and communities act.

Sponsors: By House Committee on Appropriations (originally sponsored by Representatives Pettigrew, Hinkle, Kenney, Springer, Blake, Priest, Hunt, Linville, Newhouse, Kretz, Dunshee, Green, Hudgins, Campbell, Ericks, Walsh, McCune, Quall, Goodman, Hurst, Seaquist, Hunter, Anderson, Hasegawa, Cody, Williams, Dickerson, Kagi, Roberts, Takko, Morrell, McIntire, Schual-Berke, Nelson, Rolfes, Loomis, Liias, Simpson, VanDeWege, McCoy, Warnick, Pedersen, Lantz, Appleton, Upthegrove, Sells, Conway, Sullivan, Santos, Moeller and Ormsby).

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 8 members: Representatives Blake, Chair; Van De Wege, Vice Chair; Eickmeyer, Grant, Lantz, Loomis, McCoy and Nelson.

Minority Report: Do not pass. Signed by 4 members: Representatives Kretz, Ranking Minority Member; Warnick, Assistant Ranking Minority Member; Newhouse and Orcutt.

Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Agriculture & Natural Resources. Signed by 32 members: Representatives Sommers, Chair; Dunshee, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Haler, Assistant Ranking Minority Member; Anderson, Chandler, Cody, Conway, Darneille, Ericks, Fromhold, Grant, Green, Haigh, Hinkle, Hunt, Kagi, Kenney, Kessler, Kretz, Linville, McIntire, Morrell, Pettigrew, Priest, Ross, Schmick, Schual-Berke, Seaquist, Sullivan and Walsh.

Background:

Washington Agriculture Industry
Washington is a major agricultural state with 34,000 farms operating on more than 15 million acres, producing some 300 commercial crops and livestock products valued at $6.4 billion. Washington ranks first in the United States for production of 11 commodities, including apples, sweet cherries, pears, hops, and red raspberries. Growers' production ranks second in the United States for an additional eight commodities, including potatoes, grapes, and onions. Washington is also the second-largest producer of wine in the United States. The state's diverse agricultural economy includes aquaculture, farm forest products, cranberries, spearmint and peppermint oil, and mink.

Procurement
The Department of General Administration (GA) sets policy and procedure for state procurement as well as develops and administers contracts for goods and services. The estimated term value of these contracts is approximately $900 million on behalf of state agencies, colleges and universities, select nonprofit organizations, and local governments.

The Office of the Superintendent of Public Instruction's (OSPI) procurement policy is consistent with state and federal procurement regulations. There is currently a U.S. Department of Agriculture (USDA) prohibition on granting geographic preferences when purchases are made from USDA Child Nutrition Program funds. According to USDA definition, all funding coming into Program 98 (School Food Service), regardless of source – whether state, federal, or local – is considered USDA Child Nutrition Program funds. This prohibition may be removed with the 2007 farm bill.

United States Department of Agriculture Fresh Fruits and Vegetable Program
The 2002 farm bill created a pilot program to provide free fresh fruit and vegetable snacks to students in participating schools. Separate from schools' existing meals programs, the snack program is intended to increase children's fruit and vegetable consumption for their better health. Implemented by the USDA Food and Nutrition Service, the $6 million pilot program provided grants to 25 schools in each of six states and one Native American territory. The schools used the funds to purchase their choice of snacks. In 2004 Congress made the program permanent and expanded it to eight states and three Native American territories.

Summary of Engrossed Second Substitute Bill:

For the purposes of the Local Farms-Healthy Kids Act, "Washington grown" means food that is grown and packed or processed in Washington.

Procurement
Statutory provisions regarding procurement by state agencies and institutions of higher education are amended so that the Director of General Administration (GA) will establish state policy:

Further, competitive bidding is not required for off-contract purchases by state agencies and institutions of higher education of Washington grown food when such food is not available from Washington sources through existing contracts.

For schools, school boards may develop and implement policies and procedures to develop to the greatest extent possible the purchasing of Washington grown food. This may include, but is not limited to, local preference policies and procedures.

Farm-to-School Program
The Farm-to-School Program (Program) is created in the Washington State Department of Agriculture (WSDA) to facilitate increased procurement of Washington grown food by the common schools. The WSDA shall work in consultation with the Department of Health (DOH), the OSPI, GA, and Washington State University (WSU) to:

Washington Grown Fresh Fruit and Vegetable Grants
The Washington Grown Fresh Fruit and Vegetable Grant Program (Grant Program) is created in the OSPI to facilitate the consumption of nutritious Washington grown snacks in schools to improve student health and to expand the market for locally grown fresh produce. The Grant Program shall increase the number of school children with access to Washington grown fresh fruits and vegetables and shall be modeled after the USDA's Fresh Fruits and Vegetable Program. Schools receiving funding from the USDA program are not eligible for funding through the Grant Program.

The OSPI shall develop performance measures to track the number of students served by the Grant Program and the dollar value of purchases of Washington grown fresh fruits and vegetables resulting from the Grant Program, as well as the development of federal, state, and private partnerships through the Grant Program.

For the purposes of this section, "fresh fruits and vegetables" includes perishable produce that is unprocessed, minimally processed, frozen, or otherwise prepared, stored, and handled to maintain its fresh nature.

School Gardens or Farms
School districts may operate school gardens or farms for growing fruits and vegetables to be used for educational purposes and, if appropriate, to be offered to students through the district nutrition services meal and snack programs. A school's vocational agricultural program must be given preference for operating a school garden or farm. Students participating in school gardens or farms must have the opportunity to learn both conventional and organic farming methods.

Farmers Market Technology Improvement Pilot Program
The Farmers Market Technology Improvement Pilot Program is created in the Department of Social and Health Services to lend technological hardware to farmers markets to develop the capability to accept electronic payments cards, including electronic benefits transfers. The Technology Improvement Program is intended to increase access to fresh fruits, vegetables, meat, and dairy for all Washington residents and to increase the number of food stamp recipients using food stamps through electronic benefits transfer at farmers markets.

Farmers to Food Banks Pilot Program
The Department of Community, Trade, and Economic Development (DCTED) shall establish the Farmers to Food Banks Pilot Program (Pilot Program). The purpose of the Pilot Program is for food banks in selected communities to contract with local farmers for fresh fruits, vegetables, dairy, and meat products for distribution to low-income people at local, designated food banks. The DCTED must put out a request for proposals and must select no more than five pilot site communities. One Pilot Program site shall be designated in an ethnically diverse city that has been negatively impacted by a mass transit infrastructure program and has over 500,000 residents. At least two sites must be located east of the crest of the Cascade Mountains, and at least one site must be located in a rural county.

The DCTED must collect data on the program and communicate biennially to the appropriate committees of the Legislature beginning November 15, 2009. The Pilot Program expires July 1, 2010.

The Department of Health shall adopt rules allowing farmers that have farm stands to participate in the WIC program. Rules must conform with the federal requirements for grants and cooperative agreements.

Performance Reporting
The Office of Financial Management shall work with the WSDA, the GA, and the OSPI to develop measures to track trends in the purchasing of Washington grown food by state agencies, institutions of higher education, and schools and shall report on these measures biennially to the Legislature.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed. However, the bill is null and void unless funded in the budget.

Staff Summary of Public Testimony: (Agriculture & Natural Resources)

(In support) This bill will change state contracting in two very important ways. First so that local farmers can get their product into state agencies, institutions of higher education, and the common schools, as well as provide nutritious snacks and food to the state children and population that rely on state assistance. It also creates an important partnership between the agricultural and environmental communities.

The bill is the result of an entire year of stakeholder meetings, cooperation, and coordination. It shows that various groups can come together to support policies that will foster a healthy Washington.

Schools are increasingly seeing behavioral issues with kids. Studies have shown – and the USDA Fresh Fruits and Vegetable Program impacts have also shown – that making sure kids are well-fed and have healthy snacks throughout the day improves their behavior, attendance, and attention spans.

This bill is important in educating the state's youth about the agricultural industry. The programs include education outreach regarding environmental and agricultural stewardship and bringing elements of the community, farms, and schools together toward mutually beneficial ends. Breaking down barriers is good public policy. In particular, it creates opportunities for farmers.

Most farmers markets do not currently have the capacity to accept food stamps. Only the ones around Seattle have that capability. This creates a significant gap in the food supply for those individuals on state assistance. Indeed, the bill puts two distressed communities in touch to improve both of their positions.

At food banks, the lines start an hour before the door opens and it is specifically because people want to get there early to get fresh produce. It's about more than just food, it's about fresh food that can be hard to obtain for certain populations and in certain communities.

(Opposed) None.

Staff Summary of Public Testimony: (Appropriations)

(In support) This bill represents one of the four environment policy council legislative priorities for this year. The process of formulating this bill brought together farmers, schools, public health officials, and child advocates. Schools spend $300 million on lunches, and more of these dollars should be kept in state. The programs are scalable, but each was chosen for their feasibility. The fiscal note directs dollars to a lot of administrative tasks. More dollars should be dedicated to the fresh fruits and vegetable programs. The two policy implementation programs are critical. The rules and regulations revisions are also critical. It is not clear why it would cost $100,000 for General Administration to do that, but it is critical to get done. The Office of the Superintendent of Public Instruction (OSPI) supports this bill. The OSPI would like to expand the fresh fruits and vegetables program from 25 to 75, although the fiscal note scales it down to 10 additional. Kids who participate in this program increase their fruits and vegetable consumption while in the program, and continue to do so after they leave the program as well.

(Opposed) The original bill somewhat vilified the food processing industry and it is been scaled back significantly. Also, just because food is processed doesn't mean it is not nutritious. Note that this bill spends about $322,000 for staff, benefits and travel. In the next biennium, there is $750,000 for salaries and benefits. If you really want to do something for the agriculture industry, the associations have a list of bills that are part of our legislative priorities. This is a very bureaucratic bill before the Legislature today. In policy committee, concerns were raised with regards to the commerce clause and United States Department of Agriculture requirements. Also, the bill is very heavy on administration. These programs are very expensive to run. Kids like to dunk celery in peanut butter or ranch dressing. It is not clear why the Legislature needs a bill. Leave local officials some flexibility.

Persons Testifying: (Agriculture & Natural Resources) Representative Pettigrew, prime sponsor; Cliff Traisman and Mo McBroom, Washington Environmental Council; John Stuhlmiller, Washington State Farm Bureau; Peggy Brown, Office of the Superintendent of Public Instruction; Clayton Burrows, Growing Washington; Andrew Stout, Full Circle Farm; Kurt Tonnemaker, Tonnemaker Family Orchard; Mitch Denning, Alliance of Education Associates; Lincoln Pierce, Washington School Nutrition Association; Kim Howard, Washington State Parent-Teacher Association; Aiden Kerr; Carrie Peab, Washington Association of Local WIC Agencies; Robert Coyt, Thurston County Food Bank; Sarah Chernin, Children's Alliance; Antonio Cube, Washington State Catholic Conference; Paul Benz, Lutheran Public Policy and Faith Ministry; and Susie Kyle, Local Farmers.

Persons Testifying: (Appropriations) (In support) George Sneller, Office of the Superintendent of Public Instruction; and Mo McBroom, Washington Environmental Council.

(Opposed) T.K. Bentler, Northwest Food Processors Association.

Persons Signed In To Testify But Not Testifying: (Agriculture & Natural Resources) None.