BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 581
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          ASSEMBLY THIRD READING
          AB 581 (John A. Pérez)
          As Amended  May 27, 2011
          Majority vote 

           AGRICULTURE         9-0         HEALTH              18-0        
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          |     |                          |     |                          |
          |Ayes:|Galgiani, Valadao, Bill   |Ayes:|Monning, Logue, Ammiano,  |
          |     |Berryhill, Hill, Ma,      |     |Atkins, Bonilla, Eng,     |
          |     |Mendoza, Olsen, Perea,    |     |Garrick, Gordon, Hayashi, |
          |     |Yamada                    |     |Bonnie Lowenthal,         |
          |     |                          |     |Mansoor, Mitchell,        |
          |     |                          |     |Nestande, Pan, V. Manuel  |
          |     |                          |     |Pérez, Silva, Smyth,      |
          |     |                          |     |Williams                  |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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          APPROPRIATIONS      17-0                                        
           
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          |Ayes:|Fuentes, Harkey,          |     |                          |
          |     |Blumenfield, Bradford,    |     |                          |
          |     |Charles Calderon, Campos, |     |                          |
          |     |Davis, Donnelly, Gatto,   |     |                          |
          |     |Hall, Hill, Lara,         |     |                          |
          |     |Mitchell, Nielsen, Norby, |     |                          |
          |     |Solorio, Wagner           |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Creates the California Healthy Food Financing 
          Initiative (CHFFI) and fund for the purpose of expanding access 
          to healthy foods in underserved communities.  Requires, by July 
          1, 2012, specified agencies to prepare recommended actions to be 
          taken to promote food access within California.  This authority 
          remains in effect until January 1, 2015.  Specifically,  this 
          bill  : 

          1)Makes various legislative findings and declarations, including 
            that opportunities for greater access to food should be 
            actively pursued and fostered.









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          2)Titles this Act as CHFFI and requires, by July 1, 2012, the  
            California Department of Food and Agriculture (CDFA), in 
            consultation with the State Department of Public Health (DPH) 
            and the State Department of Social Services (DSS), to prepare 
            recommendations to the Legislature, regarding actions that 
            need to be taken to promote food access in the state.

          3)Permits the creation of an advisory group to assist in 
            developing recommendations and specifies it's make-up to 
            include representatives from the Legislature, food policy 
            advocates, grocery and financial industries representatives, 
            food systems researchers, agricultural representatives, and 
            nonprofit organizations with food access expertise.

          4)Permits CDFA, in consultation with DPH, DSS, and the State 
            Treasurer (Treasurer), to coordinate efforts to maximize 
            funding opportunities provided by the federal 2010 Healthy 
            Food Financing Initiative (HFFI).

          5)Requires CDFA, in consultation with DPH, DSS, and the 
            Treasurer, to implement CHFFI, modeled after the HFFI, and 
            intends the CHFFI to expand access to nutritious foods in 
            underserved urban and rural areas and eliminate food deserts 
            within seven years.

          6)Creates the CHFFI Fund, to be comprised of federal, state, 
            private, and philanthropic funds, and requires them to be used 
            to expand access to healthy foods in underserved communities 
            and directs funds to be leveraged with other funding sources.

          7)Sunsets this Act on January 1, 2015, unless future statutes 
            delete or extend that date.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, given the size of the state and its large number of 
          food deserts, a significant food financing initiative would 
          likely cost tens of millions of dollars.  The state of 
          Pennsylvania initially invested $30 million over a three year 
          period in their healthy food initiative.  California is close to 
          three times the size of Pennsylvania. The bill requires that the 
          initiative be implemented using a diverse mix of funding 
          including federal, state, philanthropic and private resources.

           COMMENTS  :  An increasing problem within urban and rural 








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          communities in California, and nation-wide, is the access to 
          grocery stores and the availability of fresh produce, creating 
          what is called "food deserts."  A food desert is a geographic 
          area with limited access to affordable, quality, and nutritious 
          foods.  

          In February of 2010, the Obama Administration (Administration) 
          announced details of HFFI and committed over $400 million to the 
          program, which will help bring grocery stores and other healthy 
          food retailers to underserved urban and rural communities across 
          the nation.  

          The HFFI is a partnership between the federal Departments of the 
          Treasury, USDA, and Health and Human Services.  HFFI will 
          promote a range of interventions that expand access to 
          nutritious foods, including developing and equipping grocery 
          stores and other small businesses and retailers selling healthy 
          food in communities that currently lack these options.  
          Residents of these communities are often found in economically 
          distressed areas, and are typically served by fast food 
          restaurants and convenience stores that offer little or no fresh 
          produce.  Lack of healthy, affordable food options can lead to 
          higher levels of obesity and other diet-related diseases, such 
          as diabetes, heart disease, and cancer. 

          Through this new multi-year HFFI, and by engaging with the 
          private sector, the Administration intends to work toward 
          eliminating food deserts across the country within seven years.  
          By creating the CHFFI program and permitting CDFA to coordinate 
          the effort in its development, should provide a better 
          opportunity for California to obtain federal funds made 
          available for this purposes. 

          The author intends this bill should be modeled after the HFFI 
          and to use a wide variety of funding sources that can be 
          leveraged in order to accomplish the goal of elimination of food 
          deserts. 

          Please see policy Assembly Agriculture Committee's analysis for 
          a more comprehensive discussion of this bill.


          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 









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