BILL NUMBER: AB 152 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 14, 2011
AMENDED IN ASSEMBLY MARCH 15, 2011
INTRODUCED BY Assembly Member Fuentes
JANUARY 18, 2011
An act to add Section 131057.5 to the Health and Safety Code, to
add and repeal Sections 17053.88 and 23688 to
of the Revenue and Taxation Code, and to add
Chapter 14.5 (commencing with Section 18995) to Part 6 of Division 9
of the Welfare and Institutions Code, relating to food banks.
LEGISLATIVE COUNSEL'S DIGEST
AB 152, as amended, Fuentes. Food banks: grants: voluntary
contributions: income tax credits.
(1) Existing law establishes the scope of functions and
responsibilities of the State Department of Public Health.
This bill would additionally require the State Department of
Public Health to investigate and apply for federal funding
opportunities regarding promoting healthy eating and preventing
obesity, as specified, and, upon receipt of that funding, allow the
department to award grants and provide in-kind support to
support local assistance to local governments and nonprofit
organizations that encourage specified healthy eating programs, as
provided.
(2) Existing federal law, the Emergency Food Assistance Program,
is administered by the State Department of Social Services to provide
agricultural commodities to eligible households and recipient
agencies for distribution, as prescribed.
This bill would require the State Department of Social Services,
on and after January 1, 2012, to establish and administer the State
Emergency Food Assistance Program (SEFAP), to provide emergency food
and funding for the provision of emergency food, as provided. This
bill would create the State Emergency Food Assistance Program Account
and would, upon appropriation by the Legislature, allocate the
moneys in the account to SEFAP and require that it
those moneys be used for the purchase, storage, and
transportation of food grown or produced in California.
(3) The Personal Income Tax Law and the Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
This bill would, under both laws, for taxable years beginning on
or after January 1, 2012, and before January 1, 2017,
allow a credit for qualified taxpayers, as defined, in an
amount equal to 10% of the cost to be included in inventory costs, as
specified, with respect to the donation of fresh fruits or
fresh vegetables to food banks located in California.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) On December 16, 2010, the State Board of Food and Agriculture
released the strategic plan for the future of the state's agriculture
and food system entitled "California Agricultural Vision: Strategies
for Sustainability," which defines 12 key strategies for California'
s agriculture and food sector, including a strategy to improve access
to safe, healthy food for all Californians in order to reduce hunger
and malnutrition, chronic diseases , and health care
costs associated with poor diets, and expand markets for fruits,
vegetables, grains, dairy, and meat grown and produced in California.
(b) On December 3, 2010, the California Strategic Growth Council
accepted the first report of the Health in All Policies Task Force,
established by Executive Order S-04-10 of Governor Arnold
Schwarzenegger on February 23, 2010, which includes a goal that every
California resident has access to healthy, affordable food at
school, at work, and in his or her neighborhood.
(c) California has some of the most productive farmlands in the
world. California's farmlands produce more than 350 commodities,
specialty crops, and other food items. These farmlands are essential
for providing a healthy food supply and guarantee a natural resource
for California's future generations.
(d) According to a University of California at Los Angeles survey
of Californians' health status, despite the state's agricultural
abundance, more than 8 million people live in a household where an
adult cannot always afford enough food.
(e) Californians who experience hunger and food insecurity suffer
from poor physical and emotional health, as well as a diminished
capacity to learn and succeed in the workplace.
(f) Access to healthy food is a basic human right. Low consumption
and lack of access to healthy, affordable food may result in higher
levels of obesity and other diet-related diseases.
(g) One in every nine California children, one in three teens, and
over half of adults are overweight or obese. The obesity epidemic
affects virtually all age, income, educational, ethnic, and
disability groups in California, and rates are highest among
Californians of Latino, American-Indian, African American, and
Pacific Islander descent, Californians from lower income households,
and those with disabilities. More than 30 percent of low-income
California children and teens are overweight or obese.
(h) The growing epidemic of overweight individuals is due to poor
diet and physical inactivity, putting growing numbers of Californians
at risk for type 2 diabetes, hypertension, heart disease, stroke,
and cancer. Increased risk of chronic disease has been attributed to
low fruit and vegetable intake in the United States, accounting for
$30 billion in associated health care costs in 2008 and 2009.
(i) According to the federal Centers for Disease Control and
Prevention, in 2009 less than 20 percent of young people and 23
percent of all American adults reported consuming the minimum goal of
five servings of fruits and vegetables each day.
(j) In California, partnerships between private and public
entities, among state and local government, local and regional
businesses, nonprofit organizations, health care institutions, food
banks, and other emergency food providers have helped to establish
community programs to combat obesity and related diseases, increase
access to healthy food, promote healthy eating, increase consumption
of fruits and vegetables, and encourage physical activity.
(k) It is in the interest of the state to support programs that
promote increased access to healthy food and increased consumption of
California-grown fresh fruits and vegetables, whole grains, and
low-fat dairy in order to improve child and adult nutrition, promote
a strong, healthy workforce, and strengthen local and regional farm
economies.
(l) With the significant fiscal challenges in California, it is
further in the interest of the state to maximize the availability of
federal funding in California in order to support programs and
activities that prevent obesity and hunger and increase access to
healthy food and consumption of healthy food.
(m) It is further in the interest of the state to encourage and
facilitate partnerships between public and private entities to
promote a comprehensive approach to nutrition and wellness, including
activities that reduce obesity and related diseases, encourage
physical activity, and provide nutrition education in order to ensure
that all Californians have access to healthy food and can choose a
healthy diet.
SEC. 2. Section 131057.5 is added to the Health and Safety Code,
to read:
131057.5. (a) The State Department of Public Health shall
investigate and apply for federal funding opportunities regarding
promoting healthy eating and preventing obesity, including those
available under the Food, Conservation, and Energy Act of 2008
(Public Law 110-234), the American Recovery and Reinvestment Act of
2009 (Public Law 111-5), the federal Patient Protection and
Affordable Care Act (Public Law 111-148), and the Healthy,
Hunger-Free Kids Act of 2010 (Public Law 111-296).
(b) Upon receipt of federal funding regarding promoting healthy
eating and preventing obesity, the State Department of Public Health
may, in its sole discretion, provide in-kind support and
award grants and provide in-kind support to
support local assistance to local governments and nonprofit
organizations that the department deems eligible to encourage the
sale and consumption of fresh fruits and vegetables, implement
programs and initiatives that prevent obesity and hunger, and promote
healthy eating and access to nutritious food in underserved and
urban and rural communities. The award of these grants shall be
exempt from the State Contract Act (Part 2 (commencing with Section
10100)) of Division 2 of the Public Contract Code.
SEC. 3. Section 17053.88 is added to the Revenue and Taxation
Code, to read:
17053.88. (a) In the case of a qualified taxpayer who
donates fresh fruits or fresh vegetables to a food bank
located in California under Chapter 5 (commencing with Section 58501)
of Part 1 of Division 21 of the Food and Agricultural Code, for
taxable years beginning on or after January 1, 2012, and before
January 1, 2017, there shall be allowed as a credit against the
"net tax" (as defined by Section 17039), an amount equal to 10
percent of the cost included in inventory costs under Section 263A of
the Internal Revenue Code, or that would be required to be included
in inventory costs under Section 263A of the Internal Revenue Code
but for the exception for farming businesses contained in Section
263A(d) of the Internal Revenue Code, with respect to those fresh
fruits or fresh vegetables.
(b) A married couple or domestic partners may receive only one
credit under this section. If the spouses or domestic partners file
separate returns, the credit may be taken by either or equally
divided between them. With the exception of spouses or domestic
partners, if two or more taxpayers share in the expenses eligible for
the credit provided by this section, each taxpayer shall be eligible
to receive the tax credit in proportion to his or her respective
share of the expense paid or incurred. In the case of a partnership,
the tax credit may be divided between the partners pursuant to a
written partnership agreement in accordance with Chapter 10
(commencing with Section 17851), which includes Section 704 of the
Internal Revenue Code concerning substantial economic effect,
relating to a partner's distributive share.
(b) For purposes of this section, "qualified taxpayer" means the
person responsible for planting a crop, managing the crop, and
harvesting the crop from land.
(c) If the credit allowed by this section is claimed by the
taxpayer, any deduction otherwise allowed under this part for that
amount of the cost paid or incurred by the taxpayer that is eligible
for the credit shall be reduced by the amount of the credit provided
in subdivision (a).
(d) Upon receipt of the donated fresh fruits or fresh
vegetables, the nonprofit organization shall provide a certificate to
the donor. The certificate shall contain a statement signed and
dated by a person authorized by that organization that the product is
donated under Chapter 5 (commencing with Section 58501) of Part 1 of
Division 21 of the Food and Agricultural Code. The certificate shall
also contain the type and quantity of product donated, the name of
donor or donors, and the name and address of the donee. Upon the
request of the Franchise Tax Board, the taxpayer shall provide a copy
of the certification to the Franchise Tax Board.
(e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and for the six succeeding years if
necessary, until the credit has been exhausted.
(f) To the extent that data are available, the Franchise Tax Board
shall report annually to the Legislature on
or before December 1, 2014, and each December 1 thereafter u
ntil the operative date specified in subdivision (g),
regarding the utilization of the credit authorized by this section.
(g) (1) A report to be submitted pursuant to subdivision (f) shall
be submitted in compliance with Section 9795 of the Government Code.
(2) The requirement for submitting a report imposed under
subdivision (f) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.
(h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed. However, any unused credit may
continue to be carried forward, as provided in subdivision (e).
SEC. 4. Section 23688 is added to the Revenue and Taxation Code,
to read:
23688. (a) In the case of a qualified taxpayer who
donates fresh fruits or fresh vegetables to a food bank
located in California under Chapter 5 (commencing with Section 58501)
of Part 1 of Division 21 of the Food and Agricultural Code, for
taxable years beginning on or after January 1, 2012, and before
January 1, 2017, there shall be allowed as a credit against the
"tax" (as defined by Section 23036), an amount equal to 10 percent
of the cost included in inventory costs under Section 263A of the
Internal Revenue Code, or that would be required to be included in
inventory costs under Section 263A of the Internal Revenue Code, but
for the exception for farming businesses contained in Section 263A(d)
of the Internal Revenue Code, with respect to those fresh fruits or
fresh vegetables.
(b) If two or more taxpayers share in the expenses eligible for
the credit provided by this section, each taxpayer shall be eligible
to receive the tax credit in proportion to its respective share of
the expense paid or incurred. In the case of a partnership, the tax
credit may be divided between the partners pursuant to a written
partnership agreement in accordance with Chapter 10 (commencing with
Section 17851), which includes Section 704 of the Internal Revenue
Code concerning substantial economic effect, relating to a partner's
distributive share.
(b) For purposes of this section, "qualified taxpayer" means the
person responsible for planting a crop, managing the crop, and
harvesting the crop from land.
(c) If the credit allowed by this section is claimed by the
taxpayer, any deduction otherwise allowed under this part for that
amount of the cost paid or incurred by the taxpayer that is eligible
for the credit shall be reduced by the amount of the credit provided
in subdivision (a).
(d) Upon receipt of the donated fresh fruits or fresh
vegetables, the nonprofit organization shall provide a certificate to
the donor. The certificate shall contain a statement signed and
dated by a person authorized by that organization that the product is
donated under Chapter 5 (commencing with Section 58501) of Part 1 of
Division 21 of the Food and Agriculture Code. The certificate shall
also contain the type and quantity of product donated, the name of
donor or donors, and the name and address of the donee. Upon the
request of the Franchise Tax Board, the taxpayer shall provide a copy
of the certification to the Franchise Tax Board.
(e) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and for the six succeeding years if necessary, until
the credit has been exhausted.
(f) To the extent that data are available, the Franchise Tax Board
shall report annually to the Legislature on
or before December 1, 2014, and each December 1 thereafter until the
inoperative date specified in subdivision (g), regarding the
utilization of the credit authorized by this section.
(g) (1) A report to be submitted pursuant to subdivision (f) shall
be submitted in compliance with Section 9795 of the Government Code.
(2) The requirement for submitting a report imposed under
subdivision (f) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.
(h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed. However, any unused credit may
continue to be carried forward, as provided in subdivision (e).
SEC. 5. Chapter 14.5 (commencing with Section 18995) is added to
Part 6 of Division 9 of the Welfare and Institutions Code, to read:
CHAPTER 14.5. THE STATE EMERGENCY FOOD ASSISTANCE PROGRAM
18995. (a) On and after January 1, 2012, the State Department of
Social Services shall establish and administer the State Emergency
Food Assistance Program (SEFAP). The SEFAP shall provide emergency
food and funding for the provision of emergency food to food bank
networks and other organizations whose ongoing primary function is to
facilitate the distribution of food to low-income households.
(b) The State Emergency Food Assistance Program Account is hereby
established in the Emergency Food Assistance Program Fund established
pursuant to Section 18852 of the Revenue and Taxation Code, and may
receive General Fund moneys, federal funds, and voluntary donations
or contributions. All moneys received by the State Emergency Food
Assistance Program Account shall, upon appropriation by the
Legislature, be allocated to the State Department of Social Services
for allocation to the SEFAP and shall be used for the purchase,
storage, and transportation of food grown or produced in California.
Moneys in the fund shall not be used for the administrative costs of
the State Department of Social Services'
Services .