123275-123355

HEALTH AND SAFETY CODE
SECTION 123275-123355




123275.  The Legislature finds that medical, educational and
psychological evidence increasingly points to adequate nutrition as a
determinant not only of good physical health but also of full
intellectual development and educational achievement, with adequate
nutrition in the earliest months and years being particularly
important for full development of the child's mind and body, that
problems of child nutrition cut across income lines and can result
not only from low income but also from parental ignorance or neglect
and that there is a need for a statewide child nutrition program that
has the potential of reaching all pregnant women and mothers of
infants.



123279.  (a) It is the intent of the Legislature in adding this
section to authorize the establishment of a program designed to
implement the federal WIC Farmers' Market Nutrition Act of 1992
(Public Law 102-314), which is designed to accomplish the following:
   (1) Provide resources to persons who are nutritionally at risk, in
the form of fresh, high-quality agricultural products from certified
farmers' markets.
   (2) Expand the awareness and use of certified farmers' markets and
increase sales at those markets.
   (b) The department may establish a program designed to implement
the federal WIC Farmers Market Nutrition Act of 1992.
   (c) If the program is established, the department shall develop
criteria to permit any producer authorized by the department to
participate in the program to sell fresh nutritious foods to
recipients in exchange for nutrition coupons.
   (d) If the program is established, the department shall authorize
local agencies to distribute nutrition coupons to all recipients, as
defined by subdivision (c) of Section 123285 of the Health and Safety
Code.
   (e) If the program is established, the department shall design the
nutrition coupon issuance process to ensure that nutrition coupons
are bearer-only, nonnegotiable, and nontransferable by the recipient
and that they may be redeemed by recipients only to purchase fresh
produce and redeemed for reimbursement only by authorized producers.
   (f) It is the intent of the Legislature that the program
established by this section to implement the federal WIC Farmers'
Market Nutrition Act of 1992 (Public Law 102-314) be funded 70
percent by federal funds and 30 percent by private or other funds, as
specified by the federal act.



123280.  (a) The department may conduct a statewide program for
providing nutritional food supplements to low-income pregnant women,
low-income postpartum and lactating women, and low-income infants and
children under five years of age, who have been determined to be at
nutritional risk by a health professional, based on criteria
established by the department. Any program established pursuant to
this section shall do all of the following:
   (1) Comply with all the requirements of this article.
   (2) Be conducted only if a special project is authorized by
inclusion in the Budget Act or notification is provided to the
Legislature pursuant to Section 28 of the Budget Act, and federal
funds are appropriated therefor.
   (3) Be known as the California Special Supplemental Food Program
for Women, Infants, and Children.
   (b) The department shall administer this article and shall adopt
minimum standards and regulations as necessary.



123285.  As used in this article, the following definitions shall
apply:
   (a) "Health professional" means a physician and surgeon,
registered nurse, nutritionist, dietitian, or state or local
medically trained health official, who is competent to professionally
evaluate nutritional need and to authorize supplemental foods, as
determined by the state department.
   (b) "Low income" means an income of not more than 185 percent of
the poverty level as determined by the federal poverty income
guidelines promulgated by the United States Department of Health and
Human Services.
   (c) "Recipient" means low-income pregnant women, low-income
postpartum and lactating women, and low-income infants and children
under five years of age, who are determined to be at nutritional risk
by a health professional, based on criteria established by the state
department.
   (d) "Nutrition coupon" means a check that is limited as to value,
food type, and food quantity and that has a limited period of
validity.


123290.  The department, under any program established pursuant to
this article, shall do all of the following:
   (a) Establish guidelines to determine resource allocation giving
consideration to an area's nutritional need.
   (b) Designate the counties within which a program will be
conducted, with the approval of those counties.
   (c) Establish the minimum nutritional requirements for recipients.
   (d) Designate specific supplemental foods to meet the minimum
nutritional requirements for recipients.
   (e) Develop and maintain a system for the delivery of supplemental
foods to recipients through the distribution of supplemental foods
designated in subdivision (d) and nutrition coupons when other
methods of delivery are impractical.
   (f) (1) Develop and coordinate a smoking cessation component of
program operations, with consideration of local agency plans, needs,
and available tobacco education resources.
   (2) In consultation with the directors of local agencies and with
other individuals with expertise in the field of smoking cessation,
identify and promulgate a strategy for smoking cessation in the state
plan of operation and administration of the WIC program, including,
but not limited to all of the following:
   (A) Designating an agency staff member to coordinate smoking
cessation efforts.
   (B) Providing training on smoking cessation and tobacco education
to designated staff members of local agencies who are responsible for
counseling participants in the program.
   (3) Develop and implement procedures to ensure that tobacco use
screening and education, including, but not limited to, smoking
cessation counseling and referrals where appropriate, are offered to
all participants.
   (g) (1) Establish guidelines and criteria to be used by
participating local agencies, when determining recipient eligibility,
that require, in addition to a recipient being a low-income pregnant
woman, or a low-income postpartum and lactating woman, or a
low-income infant or child under five years of age, that the
recipient be at nutritional risk.
   (2) A health professional on the staff of the local agency shall
determine if a person is at nutritional risk through a medical or
nutritional assessment. This determination may be based on referral
data submitted by a health professional not on the staff of the local
agency. The person's height or length and weight shall be measured,
and a hematological test for anemia, such as a hemoglobin or
hematocrit test, shall be performed. However, the tests shall not be
required for infants under six months of age. In addition, the blood
test shall not be required for children who were determined to be
within the normal range at their last program certification. However,
the blood test shall be performed on the children at least once a
year. A breastfeeding woman may be certified if the child she is
breastfeeding is determined to be at nutritional risk and the woman
meets the income eligibility criteria.
   (h) Operate the program as an adjunct to existing health services.
   (i) Seek federal funds to carry out this article.



123295.  Nutrition coupons in an amount sufficient to meet the
nutritional needs of a recipient for one month shall be granted to a
recipient by facilities and persons referred to in subdivision (g) of
Section 123290 upon the written finding of nutritional need by the
recipient's physician or other health professional.




123300.  The department may, under any program established pursuant
to this article, investigate the feasibility of contracting with one
or more banks in the area served by the program for the redemption of
nutrition coupons.


123302.  (a) (1) Notwithstanding any other provision of law, the
department may design, implement, and fund an electronic benefits
transfer (EBT) system for the California Special Supplemental Food
Program for Women, Infants, and Children. Sections 10066, 10067, and
10068 of, and subdivision (j) of Section 10072 of, the Welfare and
Institutions Code, shall apply to the administration of this section.
   (2) The department may not implement any EBT system authorized by
this section until the department completes a feasibility study, and
funding for the system is provided in the annual Budget Act.
   (b) The department shall seek the advice of the Electronic
Benefits Transfer Committee, created by Section 10067 of the Welfare
and Institutions Code, in implementing this section, and shall obtain
the approval of the United States Department of Agriculture, which
is the federal governing agency, prior to the establishment of any
EBT system.
   (c) The department shall develop a plan to determine the
feasibility of implementing an EBT system for the California Special
Supplemental Food Program for Women, Infants, and Children by January
1, 2003, and shall report its findings to the Legislature by July 1,
2003.



123305.  The department, under any program established pursuant to
this article, may collect data to determine the need for and the
continuation of a supplemental nutritional program for recipients
under this article.


123310.  The department, under any program established pursuant to
this article, shall authorize retail food vendors, by written
agreement, to accept nutrition coupons and reimbursement according to
the system developed by the department. The department shall
authorize an appropriate number and distribution of food vendors in
order to assure adequate participant convenience and access and to
assure that state or local officials can effectively manage review of
authorized food vendors in their jurisdictions. The department shall
establish criteria to limit the number of retail food vendors with
which the department enters into agreements. The criteria, at a
minimum, shall include:
   (a) The prices the vendor charges for foods in relation to other
vendors in its peer group. For purposes of this subdivision, "peer
group" means a group of vendors with similar characteristics that may
include, but shall not be limited to, any or all of the following:
   (1) Geographic location of the store.
   (2) Store size.
   (3) Type of store.
   (4) Number of cash registers.
   (5) Sales volume relating to any program established pursuant to
this article.
   (6) Gross sales volume.
   (7) Inventory.
   (8) Other vendor characteristics established by the department.
   (b) The ability of the department to ensure that authorized
supplemental foods will be provided through in-store compliance
purchases.
   (c) The adequacy of the shelf stock of the authorized supplemental
foods.
   (d) Past performance of the vendor in compliance with this article
and with the Food Stamp Program.


123315.  (a) The department, under any program established pursuant
to this article, shall ensure that, at a minimum, the authorized
vendor shall do all of the following:
   (1) Redeem nutrition coupons only from persons bearing appropriate
identification provided by the department.
   (2) Redeem nutrition coupons for only those foods specified
thereon.
   (3) Redeem nutrition coupons at an amount that is the same as, or
lesser than, that charged other customers for identical foods.
   (4) Redeem and deposit nutrition coupons during specified valid
periods.
   (5) Deposit the nutrition coupons directly in the vendor's bank
account and not transfer them for cash payment, credit, or any other
benefit to any party other than the vendor's bank or the state.
   (6) Maintain for a period of at least three years records that
shall include, but not be limited to, all of the following:
   (A) Inventory records showing all purchases, both wholesale and
retail, in the form of invoices that identify the quantity and prices
of specified authorized supplemental foods.
   (B) Sales and use tax returns.
   (C) Books of account.
   (D) Other pertinent records that the department determines are
necessary to substantiate the volume and prices charged to the state
department through the nutrition coupons redeemed by the vendor.
   (7) Accept up to the maximum allowable department reimbursement as
payment in full for the maximum allowable quantity of food listed on
the food instrument.
   (8) Comply with department rules of vendor authorization,
reimbursement, and monitoring that control program food costs,
maximize participant access, and ensure program integrity.
   (b) The department shall adopt regulations to implement this
section and Section 123310 in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code). The adoption of any emergency regulations on
or after January 1, 2000, shall be deemed to be an emergency and
necessary for the immediate preservation of the public peace, health
and safety, or general welfare. Emergency regulations adopted
pursuant to this section shall remain in effect for no more than 180
days.



123320.  (a) The department shall inform the retail food vendors of,
and include in the written agreement with the vendors, guidelines
consistent with Section 123315, and shall print on each coupon the
following:
   (1) Specific supplemental foods and the quantities thereof for
which the coupon may be redeemed.
   (2) The period of validity of the nutrition coupon.
   (3) The maximum value for which the nutrition coupon may be
redeemed.
   (b) To the extent feasible, the information required pursuant to
subdivision (a) shall be provided in a form that may be read by
optical scanning technology readily available to vendors. The
department shall, no later than March 15, 2002, report to the
Legislature on the feasibility and costs of providing the information
in this form. This subdivision shall be implemented only to the
extent that funds for its purposes are appropriated in the annual
Budget Act or another statute.



123325.  A retail food vendor or any other person who knowingly
redeems coupons in excess of the price charged other customers for
identical foods, or who provides anything of value other than the
specified foods, or who fails to provide inventory records to
substantiate purchases for resale of authorized supplemental foods is
subject to all sanctions set forth in federal regulation for the
Special Supplemental Food Program for Women, Infants, and Children,
that is provided for in Section 246 and following of Title 7 of the
Code of Federal Regulations. The department may disqualify a food
vendor who is currently disqualified from the Food Stamp Program.




123330.  Any person or persons who have embezzled, willfully
misapplied, stolen, or fraudulently obtained funds or benefits
pursuant to this article shall be subject to the penalties set forth
in federal regulations for the Special Supplemental Food Program for
Women, Infants, and Children, that is provided for in Section 246 and
following of Title 7 of the Code of Federal Regulations.



123335.  Any officer, employee, or agent of the department may enter
the place of business of any vendor transacting nutrition coupons to
verify food prices, to witness or investigate procedures, to conduct
financial audits, or to otherwise determine compliance of the vendor
with this article and the vendor agreement.




123340.  (a) Except as provided in subdivision (c), if any amount is
due and payable and unpaid as a result of an overpayment to a vendor
or local agency established under this article that is identified
through an audit or examination conducted by or on behalf of the
director and the department has issued an audit or examination
finding, or an administrative decision resulting from an
administrative appeal of the audit or examination finding that has
become final, the director may file in the office of the County Clerk
of Sacramento County and with the county clerk of the county in
which the vendor has his or her principal place of business, a
certificate containing the following:
   (1) The amount due and owing and unpaid plus the applicable
interest at a rate equal to the monthly average of the rate received
on investments in the Pooled Money Investment Fund commencing on the
date that an audit or examination finding, made pursuant to Section
316.5 is mailed to the vendor or local agency.
   (2) A statement that the director has complied with this article
prior to the filing of the certificate.
   (3) A request that judgment be entered against the vendor or local
agency in the amount set forth in the certificate.
   The county clerk immediately upon the filing of the certificate,
shall enter a judgment for the State of California against the vendor
or local agency in the amount set forth in the certificate.
   Notwithstanding any provision of law to the contrary, the Special
Supplemental Food Program for Women, Infants, and Children shall pay
the normal fee charged by the county for the certificate of judgment.
   Nothing in this subdivision shall prevent the director from using
any other means available in law to recover amounts due and owing and
unpaid from the vendor or local agency.
   (b) The dates when the department may file the certificate and
seek judgment from the county clerk, as provided in subdivision (a),
depends on whether the audit finding is appealed by the vendor or
local agency.
   (1) If the audit finding or lower level administrative decision is
not appealed, the department may file the certificate the day after
the end of the appeal period or anytime thereafter, but not later
than three years after the payment became due and owing.
   (2) If the audit finding or lower level administrative decision is
appealed to the director, the department may file the certificate no
earlier than 90 days after the issuance of the final decision by the
director, but no later than three years after the issuance of the
final decision.
   (c) If the vendor seeks judicial review of the final decision of
the director pursuant to Section 1094.5 of the Code of Civil
Procedure, and notice of the action is properly served on the
director within 90 days of the issuance of the final decision, the
department shall not file any certificate as provided in subdivision
(a).
   If the vendor does not seek judicial review of the final decision
of the director or does not properly serve notice within 90 days from
the date of the final decision of the director, the department may
file the certificate and obtain judgment pursuant to subdivision (a).



123345.  An abstract of judgment obtained pursuant to subdivisions
(a) and (b) of Section 123340 or a copy thereof may be recorded with
the county recorder of any county. From the time of recording, the
judgment shall constitute a lien upon all real or personal property
owned by the vendor at the time, or that the vendor may afterwards,
but before the lien expires, acquire. The lien shall have the force,
effect, and priority of a judgment lien and shall continue for 10
years from the time of recording of the abstract of judgment obtained
pursuant to subdivisions (a) and (b) of Section 123340 unless sooner
released or otherwise discharged.
   The lien may, within 10 years from the date of recording of the
abstract of judgment or within 10 years from the date of the last
extension of the lien in the manner herein provided, be extended by
recording a new abstract in the office of the county recorder of any
county. From the date of the recording the lien shall be extended for
10 years unless sooner released or otherwise discharged.




123350.  The department shall arrange for the conduct of periodic
audits of participating local agencies.



123355.  The department shall provide a hearing procedure whereby
any food vendor or local agency may appeal any adverse action taken
by the department affecting the vendor's or local agency's
participation in the California Supplemental Food Program for Women,
Infants, and Children. The hearing procedure shall be in accordance
with the requirements of the federal regulations for the Special
Supplemental Food Program for Women, Infants, and Children, that is
contained in Section 246 et seq. of Title 7 of the Code of Federal
Regulations.