BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 581
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 581 (John A. Pérez)
          As Amended  August 30, 2011
          Majority vote
           
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          |ASSEMBLY:  |76-0 |(June 1, 2011)  |SENATE: |30-7 |(August 31,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    AGRI.  

           SUMMARY  :  Creates the California Healthy Food Financing 
          Initiative (CHFFI), the CHFFI fund and the CHFFI Council, for 
          the purpose of expanding access to healthy foods in underserved 
          communities.  Requires the Secretary of the California 
          Department of Food and Agriculture (CDFA), by July 1, 2012, to 
          prepare recommended actions to be taken to promote food access 
          within California.  Authorizes CDFA to create an Advisory Group 
          (AG), as specified. This authority remains in effect until 
          January 1, 2017.  

           The Senate amendments  do the following:

          1)Create a CHFFI Council, within the Office of the State 
            Treasurer, consisting of the following or their designee:

             a)   State Treasurer, who will also chair the council;

             b)   Secretary of CDFA;

             c)   Secretary of California Health and Human Services; and,

             d)   Secretary of Labor and Workforce Development.

          2)Charge the council to implement the CHFFI and gives the 
            council the following duties:

             a)   Development of financing options using public and 
               private funds and resources to support access to healthy 
               foods;

             b)   Development of  a program, including but not limited to, 
               defining eligible participants, determining minimum 
               eligibility requirements, establishing floors and caps for 








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               financial assistance; 

             c)   Further the CHFFI by partnering with federal, state, or 
               local government agencies, nonprofits organizations and 
               philanthropic programs; and,

             d)   Review recommendations of the AG and report to the 
               legislature as requested.

          3)Limit the AG to no more than 21 members and add to the list of 
            required participants in the AG, representatives from 
            underserved communities, philanthropic organizations, health 
            care providers, and others.

          4)Conform language by deleting the requirement for CDFA to 
            consult with specified state entities for the implementation 
            and maximizing of funding opportunities of  the CHFFI.

          5)Add two years to the sunset date of the CHFFI, making it 
            January 1, 2017.

          6) Delete and add to the Legislative findings and add 
            co-authors.

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

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, the dollars to implement CHHFI are unknown but would 
          likely need millions of dollars annually from various available 
          sources.  This bill does not appropriate any funds.  Funding for 
          the program would be appropriated by the Legislature and may 
          include but is not limited or required to include, state, 
          federal and/or private resources.

           COMMENTS  :  Senate amendments place the funding and 
          implementation of the CHFFI under the Office of the State 
          Treasurer, which has the authority, experience and staff for 
          such activities.  Extending the sunset to five years will 
          provide a greater opportunity to implement the CHFFI and 
          infrastructure needs.  Other changes are technical and 
          conforming.

          An increasing problem within urban and rural communities in 
          California, and nation-wide, is the access to grocery stores and 








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          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 announced details 
          of Healthy Food Financing Initiative (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.  

          This bill is modeled after the HFFI and is intended to use a 
          wide variety of funding sources that can be leveraged in order 
          to accomplish the goal of elimination of food deserts.  Creation 
          of the CHFFI provides an opportunity to address the serious 
          problem of lack of healthy foods in underserved communities and 
          is intended to lead to a healthier population.


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


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