BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 581|
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                                 THIRD READING


          Bill No:  AB 581
          Author:   John A. Pérez (D), et al.
          Amended:  8/30/11 in Senate
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  6-0, 6/21/11
          AYES:  Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas
          NO VOTE RECORDED:  Wolk

           SENATE HEALTH COMMITTEE  :  6-1, 7/6/11
          AYES:  Hernandez, Blakeslee, De León, DeSaulnier, Rubio, 
            Wolk
          NOES:  Anderson
          NO VOTE RECORDED:  Strickland, Alquist
           
          SENATE APPROPRIATIONS COMMITTEE  :  7-1, 8/25/11
          AYES:  Kehoe, Alquist, Emmerson, Lieu, Pavley, Price, 
            Steinberg
          NOES:  Walters
          NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR  :  76-0, 6/1/11 - See last page for vote


           SUBJECT  :    Public health:  food access

           SOURCE  :     Author


           DIGEST  :    This bill (1) establishes, until July 1, 2017, 
          the California Healthy Food Financing Initiative for the 
          purpose of expanding access to healthy foods in underserved 
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          communities, (2) requires the Secretary of the Department 
          of Food and Agriculture (DFA), by July 1, 2012, to prepare 
          recommendations regarding actions to be taken to promote 
          food access in the state, (3) establishes the California 
          Healthy Foods Financing Initiative Council and requires the 
          Council to implement the Initiative, (4) requires the DFA 
          to establish an advisory group, as specified, (5) creates 
          the California Healthy Food Financing Initiative Fund, and 
          makes legislative findings and declarations.

           ANALYSIS  :    

          Existing law:

          1. Requires, until January 1, 2013, the Department of 
             Public Health (DPH), in conjunction with the DFA, to 
             develop a "Healthy Food Purchase" pilot program, in no 
             more than seven counties, to increase the sale and 
             purchase of fresh fruits and vegetables in low-income 
             communities, as specified.  

          2. Requires DPH to develop a process for evaluating the 
             effectiveness of the pilot, and contract with an 
             independent external evaluator to conduct the 
             evaluation.  

          3. Specifies that DPH shall apply for available federal 
             matching funds to support the pilot, and that no General 
             Fund monies shall be used to fund the program.

          This bill:

          1. Establishes the California Healthy Food Financing 
             Initiative (CHFFI) until July 1, 2017, for the purpose 
             of expanding access to healthy foods in underserved 
             communities. 

          2. Requires the Secretary of DFA, by July 1, 2012, to 
             prepare recommendations regarding actions to be taken to 
             promote food access in the state.

          3. Establishes the California Healthy Foods Financing 
             Initiative Council, within the Office of the State 
             Treasurer, and requires the Council to implement the 

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             Initiative.  Specifies the membership and duties of the 
             Council:

              Membership  :

                   The Treasurer or his/her designee.
                   The Secretary of DFA or his/her designee.
                   The Secretary of Health and Human Services or 
                his/her designee.
                   The Secretary of Labor and Workforce Development 
                or his/her 
                designee.

              Duties  :

                   Develop financing options using public or private 
                moneys and resources, to support access to healthy 
                foods for all Californians.

                   Develop program parameters, including, but not 
                limited to, all of the following:  (1) defining 
                eligible entities for participation, (2) developing 
                minimum eligibility thresholds for participation, and 
                (3) establishing minimum and maximum levels of 
                financial assistance.

                   Partner with federal, state, or local government 
                agencies, nonprofit organizations, and philanthropic 
                programs to further the purposes of the initiative.

                   Review recommendations of the advisory group, 
                established pursuant to Section 104662.

                   Provide updates to the Legislature as requested.

          4. Requires DFA to establish an advisory group, not to 
             exceed 21 members, as specified, to assist agencies in 
             complying with requirements of subdivision (a).

          5. Creates the California Healthy Food Financing Initiative 
             Fund comprised of federal, state, philanthropic, and 
             private funds to expand access to healthy foods in 
             underserved communities and, to the extent practicable, 
             to leverage other funding, as specified.

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          6. Makes findings and declarations regarding access to 
             healthy food items in "food desert" communities. 

          The provisions of this bill sunset July 1, 2017, unless a 
          later enacted statute, enacted before January 1, 2018, 
          deletes or extends that date.

           Background  

          The author introduced this bill to increase access to 
          healthy and nutritious foods to underserved urban and rural 
          communities in California.  Known as "food deserts," 
          regions of California with poor access to healthy food 
          generally have a higher incidence of certain types of 
          diseases such as diabetes, cancer, obesity, heart disease, 
          and premature death.  This bill brings together DFA and 
          other state agencies to maximize the impact of CHFFI and 
          leverage funding from federal and other sources to improve 
          the health of low-income Californians by increasing access 
          to nutritious food. 
          
           Food deserts  .  A food desert is described as a geographic 
          area with limited access to affordable, quality, and 
          nutritious foods.  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.  The 
          Food, Conservation, and Energy Act of 2008, commonly known 
          as the Farm Bill, required the United States Department of 
          Agriculture to study food deserts.  Findings from that 
          study include:

           Of all United States households, 2.3 million (2.2 
            percent) live more than a mile from a supermarket and do 
            not have access to a vehicle.  An additional 3.4 million 
            households (3.2 percent) live between one-half to one 
            mile from a supermarket and do not have access to a 
            vehicle.

           Area-based measures of access show that 23.5 million 
            people live in low-income areas (areas where more than 40 
            percent of the population has an income at or below 200 
            percent of federal poverty thresholds) that are more than 
            1 mile from a supermarket or large grocery store.  

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            However, not all of these 23.5 million people have low 
            incomes.  If estimates are restricted to consider only 
            low-income people in low-income areas, then 11.5 million 
            people (4.1 percent of the United States population) live 
            in low-income areas more than one mile from a 
            supermarket.

           Data on time-use and travel mode show that people living 
            in low-income areas with limited access to healthy food 
            spend significantly more time (19.5 minutes) traveling to 
            a grocery store than the national average (15 minutes).  
            However, 93 percent of those who live in low-income areas 
            with limited access traveled to the grocery store in a 
            vehicle they or another household member drove. 

          A subset of food deserts are areas increasingly referred to 
          as "food swamps."  A "food swamp" is a defined geographic 
          area where the overabundance of high-energy foods (for 
          example, caloric snacks sold at convenience stores or high 
          fat, high caloric foods sold at fast food outlets) 
          overwhelms the healthy food options.

           Healthy Food Financing Initiative (HFFI)  .  In February 
          2010, the Obama Administration released details of an over 
          $400 million HFFI, which will help bring grocery stores and 
          other healthy food retailers to underserved urban and rural 
          communities across the nation.  HFFI is a partnership 
          between the federal Departments of the Treasury, 
          Agriculture, and Health and Human Services.  HFFI seeks to 
          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.  These communities are often found in 
          economically distressed areas, and their residents are 
          typically served by fast food restaurants and convenience 
          stores that offer little or no fresh produce.  

          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.  The first year of funding proposes to leverage 
          enough investments to begin expanding healthy foods options 
          into as many as one-fifth of the nation's food deserts, and 

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          create thousands of jobs in urban and rural communities 
          across the nation.

          This Initiative is modeled after the National Healthy Food 
          Financing Initiative, which is intended to expand access to 
          nutritious foods in underserved, urban, and rural 
          communities and eliminate food deserts across the United 
          States within seven years.

           Prior Legislation

           AB 2720 (John A. Perez, 2009-10 Session), which was 
          substantially similar to this bill, was vetoed by Governor 
          Schwarzenegger.  His veto message stated:  "While my 
          Administration shares the same goals as the author when it 
          comes to promoting healthy and affordable food access for 
          low-income communities in California, the Healthy Food 
          Financing Initiative has not yet been acted on by Congress. 
           Unless and until those important federal funding details 
          are known, this bill is both premature and unnecessary."  
          The basis for the Governor's veto of similar legislation 
          last year was that Congress had not enacted the HFFI and 
          the federal funding details were not yet known.  In his 
          fiscal year 2012 Budget Proposal, President Obama requested 
          $330M for the HFFI, but Congress has yet to finalize action 
          on this proposal. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          Unknown, with latest amendments.
           
           SUPPORT  :   (Verified  8/30/11)

          American Heart Association
          California Catholic Conference
          California Center for Rural Policy at Humboldt State 
          University
          California District of the American Academy of Pediatrics
          California Farm Bureau Federation
          California Food Policy Advocates
          California Medical Association
          California Nurses Association
          California Pan-Ethnic Health Network

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          California Physical Therapy Association
          California Primary Care Association
          California Retailers Association
          California State Association of Counties
          California State Grange
          California State PTA
          California Women for Agriculture
          Children NOW
          Children's Defense Fund - California
          Coalition of California Welfare Rights Organizations
          Community Clinic Association of Los Angeles County
          County Health Executives Association of California
          County of Santa Clara
          First 5 LA
          Junior League of Los Angeles
          Latino Coalition for a Healthy California
          PolicyLink
          Western Growers

           ARGUMENTS IN SUPPORT  :    The California Catholic Conference 
          believes that access to food is a basic human right and 
          that lack of access to healthy foods can result in hunger, 
          higher levels of obesity and other diet-related diseases.  
          The Community Clinic Association of Los Angeles County 
          (CCALAC) claims to be committed to both health care and 
          healthy communities, and believes that access to healthy 
          foods is too limited in many California communities, 
          specifically low-income and underserved areas.  The CCALAC 
          believes that this bill directly impacts clinic and health 
          center patients as it would promote and potentially 
          increase access to healthy foods in these communities.  

          The California Nurses Association (CNA) believes this bill 
          positions California to receive federal dollars to finance 
          healthy food options.  The CNA claims that nurses are on 
          the front lines of providing care to patients who suffer 
          from conditions like diabetes, cancer, and obesity, and 
          know firsthand about the importance of preventing their 
          onset through healthy diets. 


           ASSEMBLY FLOOR  :  76-0, 6/1/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 

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            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, 
            Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie 
            Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, 
            Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, 
            Perea, Portantino, Silva, Skinner, Smyth, Solorio, 
            Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, 
            Yamada, John A. Pérez
          NO VOTE RECORDED:  Garrick, Gorell, Jeffries, V. Manuel 
            Pérez


          MEL:mw  8/30/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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