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