BILL ANALYSIS Ó AB 1321 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON AGRICULTURE Henry T. Perea, Chair AB 1321 (Ting) - As Introduced February 27, 2015 SUBJECT: Nutrition Incentive Matching Grant Program. SUMMARY: This bill establishes the Nutrition Incentive Matching Grant (NIMG) Program in the Office of Farm to Fork (OF2F), creates a NIMG account and requires OF2F to establish minimum standards, funding schedules and grant procedures for the NIMG program. Specifically, this bill: 1)Establishes the NIMG program within OF2F for the purpose of encouraging the buying and eating of California fruit, nuts and vegetables. 2)Defines the following: a) Nutrition benefit client (NBC) means a person who receives services or payments through any of the following: AB 1321 Page 2 i) California Special Supplemental Food Program for Women, Infants, and Children (WIC), as described in current state law; ii) CalWORKS program, as described in current state law; iii) CalFresh, as described in current state law; iv) Implementation of the federal WIC Farmers' Market Nutrition Act of 1992; v) The Senior Farmers' Market Nutrition Program, as current United State law; or, vi) Supplemental Security Income or State Supplementary Payment, as current United State law. b) Defines a qualified entity as: i) A certified farmers' market, an association of certified producers, or a nonprofit organization representing a collective or association of certified producers, as AB 1321 Page 3 specified; or, ii) A small business that sells California grown fresh fruits, nuts, and vegetables and is authorized to accept nutrition benefits from any of the programs uses by NBC, as specified. c) Defines a consumer incentive program (CIP) to mean a program administered by a qualified entity that doubles the purchasing value of a NBC's benefits when the benefits are used to purchase California fresh fruits, nuts, and vegetables. 3)Creates the NIMG account within OF2F to collect matching funds from federal grant programs, and other public and private sources. 4)Requires OF2F to provide and administer grants under the NIMG program in accordance with the following: a) Requires, subject to federal regulation and state appropriations, funds in the NIMG account be awarded by grants to qualified entities for a CIP; b) Requires OF2F to establish minimum standards, funding schedules and procedures for awarding grants, in consultation with the United States Department of Agriculture (USDA) and AB 1321 Page 4 other specified parties of interest, as specified; i) Requires OF2F to not spend more than one-third of NIMG programs funds on CIP. c) Requires OF2F to prioritize the awarding of NIMGs based on, but not limited to, the following: i) Known demographic information as follows: (1) The NBC in an area; (2) The prevalence of diabetes, obesity or other diet related diseases; and, (3) The availability of fresh fruits, nuts and vegetables. ii) Demonstrated skill in administering a CIP; and, iii) Areas where the current population is not being served a CIP. AB 1321 Page 5 EXISTING LAW: 1)Establishes OF2F within the Department of Food and Agriculture (CDFA), to work with various entities involved in promoting food access, and to increase the amount of agricultural products available to schools and underserved communities in the state. 2)Requires OF2F to identify urban and rural communities that lack access to healthy food, and to coordinate with local, state, and federal agencies to promote and increase awareness of programs that promote greater food access. 3)Creates the Farm to Fork Account in the CDFA Fund consisting of money made available from federal, state, industry, and other sources, and would continuously appropriate the money deposited in the account to carry out the purposes of OF2F. EXISTING FEDERAL LAW: 1)Establishes the Supplemental Nutrition Assistance Program (SNAP), formerly the food stamp program, administered by USDA, which imposes specified rules on specified program participants and limits benefits based on those rules. 2)Establishes state grants for programs that supplement nutrition benefits that are spent on products at farmers' markets, based upon AB 1321 Page 6 specified criteria. FISCAL EFFECT: Unknown. This bill is keyed Fiscal by Legislative Counsel. COMMENTS: The California Market Match (MM) program was launched in 2009 to encourage low-income families receiving benefits through SNAP to purchase fresh, locally-grown fruits and vegetables at farmers' markets. The program "matches" or doubles the amount of benefits these families can spend and has expanded operations to over 150 farmers' markets across California and increased the spending power of 37,000 families. According to the author, strong demand for MM often outstrips available funding for the program. The 2014 federal Farm Bill included $100 million in grant funding for programs such as Market Match that incentivize healthier eating amongst SNAP recipients. In order to best position local programs to receive these federal grants, this bill creates a state NIMG Program to apply for federal funds and award them to local MM programs with a proven record of success. Establishing a state framework to oversee funding of MM programs would leverage state resources to streamline local program administration, and expand MM programs across a more equitable cross-section of communities that lack access to fresh produce. One of the co-sponsors of this bill, Roots of Change, explained how they used $1.9 million in CDFA Specialty Crop Block Grant money, and AB 1321 Page 7 nearly $300,000 in philanthropic funds from 2009 to 2013, to create the California MM pilot program. The MM pilot program has expanded market opportunities for specialty crop farmers. Supporters state that community-based partners operated in 23 counties to implement MM programs in 150 markets in 2014. Currently, the incentive match funds used to increase purchasing power are derived from philanthropic sources only and are therefore limited in scope. Supporters state the goal of this bill is to assist the state in leveraging federal dollars to increase specialty crop sales among low-income Californians. The author states that California is uniquely positioned to benefit from greater proliferation of programs such as MM. California grows over 400 commodities and produces nearly half of US-grown fruits, nuts and vegetables. There are approximately 700 certified Farmers' Markets and 2,200 certified producers in California. Furthermore, the author stresses that California has a persistent poverty problem to solve. 24% of Californians live in poverty and is ranked 50th in the rate of participation in SNAP. Scaling up MM programs would create an incentive for more families to utilize their SNAP benefits and ensure more Californians can afford to eat what is grown locally. REGISTERED SUPPORT / OPPOSITION: Support AB 1321 Page 8 Ecology Center (co-sponsor) Roots of Change (co-sponsor) Latino Coalition for a Healthy California (co-sponsor) Public Health Institute (co-sponsor) Agricultural Commissioner of the City/County of San Francisco Agricultural Institute of Marin Agriculture and Land-based Training Association AltaMed Health Services Corporation American Cancer Society Cancer Action Network American Heart Association American Stroke Association Ashland Cherryland Food Policy Council AB 1321 Page 9 Berkeley Food Institute Building Healthy Communities: Long Beach California Alliance of Farmers' Markets California Association of Food Banks California Black Health Network California Certified Organic Farmers California Commission on Aging California Convergence California Farm Bureau Federation California Food Policy Advocates California Food Policy Council California Hunger Action Coalition California Pan-Ethnic Health Network AB 1321 Page 10 California Partnership California Rural Legal Assistance Foundation Center for Food Safety City of Santa Monica City of Santa Monica's Farmers' Market Program Coastside Farmers' Markets Community Alliance with Family Farmers Community Food and Justice Coalition County of Yolo CUESA Cultiva La Salud Enrich LA Feeding America San Diego AB 1321 Page 11 First 5 LA Food Chain Workers Alliance Food for People, Food Bank for Humboldt County Hunger Action Los Angeles Hunger Advocacy Network Jewish Family Service of Los Angeles Los Angeles Community Action Network Los Angeles Food Policy Council Madera County Agricultural Commissioner Natural Resources Defense Council North Coast Growers' Association Orange County Food Access Coalition Pacific Coast Farmers' Market Association Plumas-Sierra Community Food Council AB 1321 Page 12 PolicyLink Prevention Institute Project Angel Food San Diego Hunger Coalition San Francisco Food Security Task Force San Francisco Unified School District San Francisco Urban Agriculture Alliance Santa Barbara Food Alliance Santa Cruz County Agricultural Commissioner Sebastopol Farmers Market SF-Marin Food Bank Slow Food California Social Justice Learning Institute AB 1321 Page 13 Sprouts of Promise Foundation SPUR St. Anthony Foundation Strategic Alliance for Healthy Food & Activity Environments Sustainable Economic Enterprises of Los Angeles Sustainable Economies Law Center Thai Community Development Center The Farmers Guild UC San Diego, Department of Pediatrics Center for Community Health United Food & Commercial Workers Union, Western States Council United Way of Kern County Urban & Environment Policy Institute Volunteers of East Los Angeles AB 1321 Page 14 Wellington Square Certified Farmers Market Western Center on Law & Poverty Western Growers Women Organizing Resources, Knowledge & Services Yolo County Ag & Food Alliance Opposition None of file Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084 AB 1321 Page 15