BILL ANALYSIS Ó AB 581 Page 1 ASSEMBLY THIRD READING AB 581 (John A. Pérez) As Amended May 27, 2011 Majority vote AGRICULTURE 9-0 HEALTH 18-0 ----------------------------------------------------------------- | | | | | |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 | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Fuentes, Harkey, | | | | |Blumenfield, Bradford, | | | | |Charles Calderon, Campos, | | | | |Davis, Donnelly, Gatto, | | | | |Hall, Hill, Lara, | | | | |Mitchell, Nielsen, Norby, | | | | |Solorio, Wagner | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- 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. AB 581 Page 2 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 AB 581 Page 3 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 AB 581 Page 4 FN: 0000976