BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 152
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 152 (Fuentes)
          As Amended August 30, 2011
          Majority vote
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |76-0 |(June 1, 2011)  |SENATE: |40-0 |(September 6,  |
          |           |     |                |        |     |2011)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    HEALTH  

           SUMMARY  :  Provides a tax credit to California growers for the 
          costs of fresh fruits or vegetables donated to California food 
          banks.  Establishes the State Emergency Food Assistance Program 
          (SEFAP) within the Department of Social Services (DSS) and 
          allows for contributions to SEFAP for the purchase of California 
          grown fresh fruits or vegetables.  Require the Department of 
          Public Health (DPH) to apply for federal funds available for 
          promoting healthy eating and preventing obesity.

           The Senate amendments  :

          1)Require donors to provide to food banks the estimated value of 
            the donated fresh fruits or fresh vegetables and information 
            regarding the origin of where the donated fruits or vegetables 
            were grown.

          2)Require the Franchise Tax Board (FTB), in its report to the 
            Legislature, to include the estimated value of the fresh 
            fruits and fresh vegetables donated, the county in which the 
            products originated, and the month the donation was made.

          3)Permit DPH to provide in-kind support and award grants to 
            local education agencies, upon receipt of federal funds 
            regarding promoting healthy eating and preventing obesity.

          4)Clarify that SEFAP is required to provide food and funding for 
            the provision of emergency food to food banks established 
            pursuant to the federal Emergency Food Assistance Program.

          5)Delete provision permitting SEFAP Account to receive General 
            Fund moneys. 

          6)Clarify that all moneys received by SEFAP is required, upon 








                                                                  AB 152
                                                                  Page  2

            appropriation by the Legislature, to be allocated to DSS for 
            allocation to SEFAP and, with the exception of those 
            contributions made according to existing law and regulations, 
            to be used for the purchase, storage, and transportation of 
            food grown or produced in California.  Prohibits storage and 
            transportation expenditures from exceeding 10% of SEFAP's 
            annual budget.  

          7)Require, notwithstanding provisions in 4) above, funds 
            received by SEFAP, upon appropriation of the Legislature, be 
            allocated to DSS, in part, to be used for DSS' administrative 
            costs associated with the administration of SEFAP.

          8)Make other clarifying and technical amendments.

           EXISTING LAW  :

          1)Establishes the scope of functions and responsibilities of 
            DPH.
          2)Establishes The Emergency Food Assistance Program (TEFAP), 
            under federal law, which supplements the diets of low-income 
            Americans, including elderly people, by providing them with 
            emergency food and nutrition assistance at no cost.

          3)Establishes the Personal Income Tax Law which allows 
            taxpayers, until January 1, 2014, to designate on their tax 
            returns that a specified amount in excess of their tax 
            liability be contributed to the Fund, to be allocated by DSS 
            for direct services for TEFAP.

          4)Authorizes through the Personal Income Tax Law and the 
            Corporation Tax Law various credits against the taxes imposed 
            by those laws.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar 
          to the version passed by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, the new tax credit will result in a cost to the 
          General Fund (GF) in the amount of $200,000 in fiscal years (FY) 
          2011-12; $200,000 in FY 2012-13, and $400,000 in FY 2013-14.  
          The Senate Appropriations Committee states that the FTB's 
          administrative costs to the GF will be $66,000 in FY 2011-12.  
          Costs to DSS for SEFAP administration will be minor and 
          absorbable and costs to DPH will be minor to investigate federal 








                                                                  AB 152
                                                                  Page  3

          funding opportunities and distribute grants.

           COMMENTS  :  According to the author, nearly 20% of Californians 
          (over 7 million) report that they are unable to afford the food 
          they need including many seniors and working parents whose 
          budgets for food are squeezed by the economic downturn and slow 
          recovery.  Additionally, the sponsor maintains that low-income 
          Californians find it difficult to purchase healthy food such as 
          fruits and vegetables because of cost constraints and a lack of 
          access in their community.  The author asserts that since the 
          recession, food banks across California have seen a sudden and 
          unprecedented increase in requests for food assistance, beyond 
          anything that has been seen in a generation.  Statewide most 
          food banks are reporting a 30 to 50% increase in requests for 
          assistance.  

          The California Association of Food Banks, sponsor of this bill, 
          argues that while 38 other states have made an investment in 
          emergency food and nutrition programs, California currently does 
          not have a state emergency food assistance program.  State 
          programs are generally intended to fill the unmet need left by 
          TEFAP.  The lack of a state investment in emergency food, places 
          a heavy burden of providing emergency food to an 
          already-stretched network of food banks.  The author and sponsor 
          maintain that establishing a state emergency food assistance 
          program and providing an incentive for California growers to 
          donate healthy products like fruits and vegetables to food banks 
          will increase the amount of food distributed and reduce the 
          devastating impact of hunger on adults, children and seniors in 
          the State.

          The author has also included in this bill the granting of 
          authority to DPH for programs that prevent obesity and hunger, 
          and promote healthy eating and access to nutritious food.  
          According to the author, the granting language will eliminate 
          administrative burdens that delay DPH in getting obesity 
          prevention dollars out into the community.
           

          Analysis Prepared by  :    Tanya Robinson-Taylor / HEALTH / (916) 
          319-2097 
                                                                FN: 0002447











                                                                  AB 152
                                                                  Page  4