A5409

An Act increasing access to fruits and vegetables for individuals with limited incomes, supplementing Title 44 of the Revised Statutes, and making an appropriation.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. The United States Department of Agriculture estimates that, in 2020, approximately 657,320 people in New Jersey, including 175,830 children, were food insecure. These figures mean that one in 14 individuals, including one in 11 children, lived in homes without consistent access to adequate food for everyone to live healthy, active lives.

b. Food insecurity contributes to poor quality diets, chronic medical conditions such as diabetes, heart disease, and hypertension, behavioral health issues, and other negative outcomes for children and families. Further, food insecurity disproportionately affects people with low incomes and people of color.

c. Food assistance programs, such as the federal Supplemental Nutrition Assistance Program established pursuant to the federal "Food and Nutrition Act of 2008," Pub.L.88-525 (7 U.S.C. s.2011 et seq.), are effective at significantly reducing food insecurity; however, participants report difficulty affording and accessing healthy foods. Furthermore, fruit and vegetable consumption among such food assistance program participants is far below national dietary guidelines.

d. Therefore, the Legislature intends to create a State Fruit and Vegetable Incentives Program to benefit people who are food insecure, as well as the State’s agricultural industry and retailers.

2. As used in this act:

“Approved food retailer” means a farmers market or farmers market retailer, grocery store, or other fresh food retailer that has been approved to participate in SNAP.

“Cash-value voucher” means a form or check for a specific dollar amount that a SNAP enrollee can use to purchase fruits and vegetables approved under the program.

“Department” means the Department of Human Services.

“Financial incentives” means benefits, coupons, vouchers, or other forms that SNAP enrollees can use to lower the price of purchasing fruits and vegetables approved under the program.

“Food insecure” means a household-level economic and social condition of limited or uncertain access to adequate food.

"Medicaid" means the New Jersey Medical Assistance and Health Services Program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.).

"NJ FamilyCare" means the NJ FamilyCare Program established pursuant to sections 3 through 5 of P.L.2005, c.156 (C.30:4J-10 through C.30:4J-12).

“Program” means the Fruit and Vegetable Incentives Program established pursuant to this act.

“SNAP” means the New Jersey Supplemental Nutrition Assistance Program established pursuant to the federal “Food and Nutrition Act of 2008,” Pub.L.110-246 (7 U.S.C. s.2011 et seq.).

3. a. There is established in the Department of Human Services a Fruit and Vegetable Incentives Program to increase fruit and vegetable consumption among food insecure individuals with limited incomes. In order to effectuate the goals of the program, the department shall establish, and collaborate with, an authorized network of program providers to distribute:

(1) financial incentives to eligible SNAP enrollees to purchase approved fruits and vegetables at authorized food retailers when the enrollee uses SNAP benefits at the authorized food retailer; and

(2) cash-value vouchers, via health care providers, health educators, community health workers, or other health professionals, to eligible SNAP enrollees that may be redeemed for approved fruits and vegetables at an authorized food retailer when the individual distributing the voucher determines that the enrollee is food insecure or has a qualifying health condition, as defined by the department.

b. In administering the program, the department shall:

(1) collaborate in the development and implementation of the program with other State agencies that have missions and programs that closely align with the program, including the Department of Health and the Department of Agriculture;

(2) establish an authorized network of program partners, including, but not limited to, authorized food retailers, government agencies, health care systems, and nonprofit organizations. In establishing a network of program providers pursuant to this paragraph, the department may give preference to:

(a) authorized food retailers that are located in a county with a high level of food insecurity; and

(b) health care systems that: currently operate or previously operated fruit and vegetable prescription programs; routinely screen patients for food insecurity; have a high percentage of patients who are enrolled in Medicaid or NJ FamilyCare; or are located in a county with a high level of food insecurity;

(3) provide resources, coordination, and technical assistance to program partners, including support in pursuing all sources of available funding to implement the program;

(4) determine the approved fruits and vegetables that may be purchased or redeemed under the program at authorized food retailers;

(5) promote the program, in collaboration with program partners and other entities involved in the administration of SNAP, to SNAP enrollees, particularly in counties with a high level of food insecurity, which promotion shall include notifying SNAP enrollees of the existence of the program, providing SNAP enrollees with assistance in locating authorized food retailers, and notifying SNAP enrollees of associated and complementary programs, including the Good Food Bucks program;

(6) apply to the Food and Nutrition Service within the United States Department of Agriculture for any waivers or approvals as may be necessary to implement the program; and

(7) pursue all sources of federal funding, matching funds, and foundation funding available to implement the program.

c. (1) The department shall annually solicit applications from nonprofit organizations to receive an annual grant from the New Jersey SNAP Nutrition Incentive Fund, which grant shall be distributed by the selected nonprofit organization for the purposes set forth in paragraph (2) of this subsection. The nonprofit organization selected by the department shall, at a minimum, have a demonstrated track record of:

(a) building a Statewide network;

(b) leveraging funds to obtain matching funds or other additional funds from appropriate federal, State, and local governmental entities as well as appropriate private entities;

(d) providing training and technical assistance to authorized food retailers;

(e) conducting community outreach and data collection; and

(f) providing full accounting and administration of funds distributed to authorized food retailers;

(2) The annual grant provided from the New Jersey SNAP Nutrition Incentive Fund pursuant to this subsection shall be used by the nonprofit organization selected pursuant to paragraph (1) of this subsection to:

(a) implement the program in partnership with authorized food retailers; and

(b) annually distribute to authorized food retailers participating in the program funds equal to the dollar value spent on fresh fruits and vegetables by SNAP enrollees at the authorized food retailer.

d. (1) The department shall annually evaluate the effectiveness of program, which evaluation shall match the United States Department of Agriculture’s Gus Schumacher Nutrition Incentive Program guidelines and shall include, at a minimum, the collection of information related to fruit and vegetable consumption by eligible SNAP enrollees, levels of food security among SNAP enrollees, and the impact on public health outcomes for SNAP enrollees that may be attributable to participation in the program.

(2) No later than 12 months after the effective date of this act, the department shall submit a progress report to the to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, describing the results of the program and recommending any legislative or programmatic changes the department determines are likely to improve the effectiveness of program delivery.

(3) No later than 36 months after the effective date of this act, the department shall submit to the to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, a complete program evaluation describing the program's effectiveness, which evaluation shall include recommendations for legislative or programmatic changes the department determines are likely to improve the effectiveness of program delivery.

4. a. The Department of Human Services shall establish a separate, nonlapsing, revolving fund to be known as the “New Jersey SNAP Nutrition Incentive Fund.” The fund shall consist of the funds appropriated pursuant to section 6 of this act, any sources of funding secured by the department pursuant to paragraph (7) of subsection b. of section 3 of this act, interest or other income derived from the investment of monies in the fund, and any other monies as may be appropriated to the fund by the Legislature or otherwise provided to the fund.

b. The fund shall be held by the Department of Human Services and monies therefrom shall be used by the department as follows:

(1) at least 51 percent of monies deposited in the fund shall be used for the annual grant described in subsection c. of section 3 of this act;

(2) subject to paragraph (3) of this subsection, up to 49 percent of monies deposited in the fund shall be used for: program development, administration, promotion, outreach, and evaluation; providing training to authorized food retailers participating in the program; expanding the number of authorized food retailers participating in the program; providing technical assistance; and program data collection, evaluation, administration, and reporting; and

(3) up to five percent of monies deposited in the fund may be used for program evaluation pursuant to subsection d. of section 3 of this act.

5. The Commissioner of Human Services shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.

6. There is appropriated from the General Fund to the Department of Human Services the sum of $3 million to be credited to the “New Jersey SNAP Nutrition Incentive Fund” established pursuant to section 4 of this act, to effectuate the provisions of this act.

7. This act shall take effect 180 days after the date of enactment, except that the Commissioner of Human Services may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.

STATEMENT

This bill establishes the Fruit and Vegetable Incentives Program in the Department of Human Services to increase fruit and vegetable consumption among food insecure individuals with limited incomes as identified by enrollment in the New Jersey Supplemental Nutrition Assistance Program, or SNAP. Under the bill, food insecure means a household-level economic and social condition of limited or uncertain access to adequate food.

Specifically, the department will be required to establish, and collaborate with, an authorized network of program providers to distribute financial incentives to eligible SNAP enrollees to use SNAP funds to purchase approved fruits and vegetables and to distribute cash-value vouchers, via health care providers, health educators, community health workers, or other health professionals, to eligible SNAP enrollees that may be redeemed for approved fruits and vegetables. In administering the program, the department will be required to:

1) develop and implement the program in collaboration with other State agencies that have missions and programs that closely align with the program;

2) establish an authorized network of program partners, including, but not limited to, farmers markets, grocery stores, and other fresh food retailers authorized under SNAP, government agencies, health care systems, and nonprofit organizations. In establishing a network of program providers, the department will be authorized to give preference to food retailers located in a county with a high level of food insecurity, as well as to health care systems with experience in food security initiatives, that serve a high percentage of low-income patients, or that are located in a county with a high level of food insecurity;

3) provide resources, coordination, and technical assistance to program partners, including support in pursuing all sources of available funding to implement the program;

4) determine the approved fruits and vegetables that may be purchased or redeemed under the program;

5) promote the program, in collaboration with program partners and other entities involved in the administration of SNAP;

6) apply to the Food and Nutrition Service within the United States Department of Agriculture for any waivers or approvals as may be necessary to implement the program; and

7) pursue all sources of federal funding, matching funds, and foundation funding available to implement the program.

Under the bill, the department will be required to establish a separate, nonlapsing, revolving fund to be known as the “New Jersey SNAP Nutrition Incentive Fund.” The fund will consist of $3 million appropriated under the bill, as well as any other sources of funding secured by the department, interest or other income derived from the investment of monies in the fund, and any other monies as may be appropriated to the fund by the Legislature or otherwise provided to the fund. The fund will be held by the department, and monies from the fund are to be used to implement the program, subject to certain restrictions. Specifically, at least 51 percent of monies deposited in the fund are to be used to fund an annual grant established under the bill, and no more than 49 percent of monies deposited in the fund may be used to implement the program, provide training and technical assistance, engage in outreach and develop new program partners, and conduct data reporting and analysis. The bill provides that no more than five percent of monies deposited in the fund may be used for program evaluation, as required under the bill.

With regard to the annual grant supported by the fund, the department will be required to annually solicit applications from and select a nonprofit organization to receive the grant. The selected nonprofit organization will be required to have a demonstrated track record of building a Statewide network, leveraging funds to obtain matching funds or other additional funds; implementing fund distribution and reporting processes; providing training and technical assistance to food retailers authorized to participate in SNAP; conducting community outreach and data collection; and providing full accounting and administration of funds distributed to SNAP food retailers.

The annual grant is to be used by the selected nonprofit organization to implement the program and annually distribute to participating food retailers funds equal to the dollar value spent on fresh fruits and vegetables at the retailer under the program.

The bill requires the department to annually evaluate the effectiveness of program, consistent with the United States Department of Agriculture’s Gus Schumacher Nutrition Incentive Program (GusNIP) guidelines and is to include, at a minimum, the collection of information related to fruit and vegetable consumption by eligible SNAP enrollees, levels of food security among SNAP enrollees, and the impact on public health outcomes for SNAP enrollees that may be attributable to participation in the program.

No later than 12 months after the effective date of the bill, the department will be required to submit a progress report to the Governor and the Legislature describing the results of the program and recommending legislative or programmatic changes to improve the effectiveness of program delivery. No later than 36 months after the effective date of the bill, the department will be required to submit a complete program evaluation to the Governor and the Legislature describing the program's effectiveness and providing recommendations to improve the program.

The bill will take effect 180 days after the date of enactment, except that the Commissioner of Human Services will be authorized to take any anticipatory administrative action in advance as is necessary to implement the bill.

This bill is generally structured on the requirements of GusNIP, which supports and evaluates projects intended to increase the purchase of fruits and vegetables by low-income consumers participating in SNAP. The program awards grants to recipients to provide incentives to SNAP enrollees at the point of sale to purchase fruits and vegetables, as well as to provide fruit and vegetable prescriptions to SNAP enrollees while in a healthcare setting. The goals of this grant program are to increase consumption of fruits and vegetables, reduce individual and household food insecurity, and reduce healthcare usage. States such as Washington, California, and Connecticut have implemented successful incentive programs utilizing GusNIP funding.