BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 1321         Hearing Date: 7/7/15
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          |Author:    |Ting                                                 |
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          |Version:   |7/1/15   Amended                                     |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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                Subject:  Nutrition Incentive Matching Grant Program.


           SUMMARY  :
          
          This bill would establish the Nutrition Incentive Matching Grant  
          Program in the Office of Farm to Fork within the California  
          Department of Food and Agriculture to encourage the consumption  
          and purchase of fresh fruits, nuts, and vegetables by connecting  
          farmers with food assistance recipients.

           BACKGROUND AND EXISTING  
          LAW  :

          The Office of Farm to Fork was established in 2014 within the  
          California Department of Food and Agriculture (CDFA) to increase  
          food access and the amount of agricultural products available to  
          underserved communities and schools in California (Food and  
          Agricultural Code § 49000 et seq.).

          The California Healthy Food Financing Initiative (CHFFI) was  
          established in 2011 for the purpose of promoting healthy food  
          access to underserved communities.  The CHFFI Council is  
          required to develop program parameters and financing options to  
          accomplish this goal (Health and Safety Code §104660 et seq.).  

          CDFA is responsible for regulating certified farmers' markets  
          (CFM) and other forms of direct marketing to ensure product  
          quality and to prevent fraud, deception, or misrepresentation in  
          the marketplace.  Currently, there are nearly 800 CFMs in  
          California and 3,350 certified farmers selling directly to  







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          consumers (Food and Agricultural Code §47000 et seq.).

          In a 2012 CDFA report to the legislature titled "Improving Food  
          Access in California," CDFA provided recommendations that  
          included improving the distribution of fresh produce, expanding  
          retail options for healthy food, helping low-income consumers  
          purchase food, and supporting nutritious school meals.   
          According to this report, the state can use existing  
          infrastructure and relationships with farmers and food  
          distributors to increase food access, and the state can  
          coordinate existing state and federal resources to target them  
          toward use in underserved communities.  
          (  http://www.cdfa.ca.gov/exec/public_affairs/pdf/ImprovingFoodAcce 
          ssInCalifornia.pdf ) 

          The state Department of Social Services administers the CalFresh  
          Program, federally known as the Supplemental Nutrition  
          Assistance Program (SNAP; formerly Food Stamp), to provide food  
          assistance for eligible low-income Californians.

          The federal Agricultural Act of 2014 (Farm Bill) was signed into  
          law on February 7, 2014, and provides $100 million over five  
          years for a new "Food Insecurity Nutrition Incentive" grant  
          program, administered by USDA, to support organizations offering  
          bonus incentives to SNAP participants to purchase fruits and  
          vegetables.  The program is not limited to locally grown produce  
          but does give preference to projects that involve direct  
          marketing from farmers to consumers, have a demonstrated track  
          record of implementing successful nutrition incentive programs,  
          provide local produce, and are located in underserved  
          communities.  

           PROPOSED  
          LAW  :

          This bill:

             1)   States findings and declarations related to market match  
               programs throughout California, the impact on local  
               agricultural economies, and the availability of federal  
               funds provided by the Farm Bill to help states create grant  
               programs that incentivize healthier eating by food  
               assistance recipients.

             2)   Establishes the Nutrition Incentive Matching Grant  








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               Program (Grant Program) in the Office of Farm to Fork to  
               encourage the consumption and purchase of fresh fruits,  
               nuts, and vegetables by connecting farmers with food  
               assistance recipients.

             3)   Defines "nutrition benefit client" to mean a person who  
               receives services or payments through WIC, CalWORKS,  
               CalFresh, WIC Farmers' Market Nutrition Act, Senior  
               Farmers' Market Nutrition Program, or Supplemental Security  
               Income. 

             4)   Defines "qualified entity" to mean either 1) a certified  
               farmers' market, association of certified producers, or a  
               nonprofit organization representing certified producers and  
               authorized by USDA to accept federal SNAP benefits; or 2) a  
               small business that sells California grown fresh fruits,  
               nuts, and vegetables that is authorized to accept nutrition  
               benefits.

             5)   Creates the Nutrition Incentive Matching Grant Account  
               within the Department of Food and Agriculture Fund to  
               collect matching funds from the federal Food Insecurity  
               Nutrition Incentives Grant Program and other public and  
               private sources.

             6)   Requires that sufficient funds be deposited into the  
               grant account before the Grant Program becomes operative.

             7)   Requires the Office of Farm to Fork to establish minimum  
               standards, funding schedules, and procedures for awarding  
               grants in consultation with USDA and other stakeholders,  
               including the State Department of Public Health, State  
               Department of Social Services, organizations with expertise  
               in nutrition benefit programs, qualified small business  
               owners, and certified farmers' market operators.

             8)   Limits the allocation of Grant Program funds for  
               qualified small business consumer incentive programs to  
               one-third of the fund.

             9)   Requires CDFA to give grant funding priority to  
               qualified entities based on:

                  a.        The service area and lack of consumer  
                    incentive programs.








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                  b.        Community demographics such as the number of  
                    people who qualify for food assistance, the prevalence  
                    of diet-related illnesses, and access to fresh  
                    produce.
                  c.        Demonstrated efficiency in administering a  
                    consumer incentive program.

           ARGUMENTS IN SUPPORT:
           According to the author, "AB 1321 builds off the success of  
          California Market Match, a five-year-old nutrition incentive  
          program that has operated at over 140 farmers' markets across  
          the state.  The program works by "matching" or doubling the  
          amount of nutrition benefits, such as the Supplemental Nutrition  
          Assistance Program (SNAP) that families can spend at farmers'  
          markets in order to incentivize them to purchase fresh,  
          locally-grown fruits and vegetables.

          In order to best position local programs to receive these [Farm  
          Bill nutrition incentive] federal grants, AB 1321 creates a  
          state Nutrition Incentive Matching Grant Program to apply for  
          federal funds and award them to local Market Match programs with  
          a proven record of success in areas with high prevalence of  
          diabetes and obesity.  Establishing a state framework to oversee  
          funding of Market Match programs would leverage state resources  
          to streamline local program administration, and expand Market  
          Match programs across a more equitable cross-section of  
          communities to ensure that more Californians can enjoy the  
          unparalleled bounty of our state's agriculture.  By increasing  
          access to healthy food, we can alleviate poverty and food  
          insecurity and stimulate economic growth in our communities."

           COMMENTS  :

          Market Match Pilot Program.  According to one of the bill's  
          co-sponsors, Roots of Change, they received four CDFA Specialty  
          Crop Block grants from 2009-2013 totaling $1.9 million to fund  
          the California Market Match Consortium's Market Match Pilot  
          Program.  This program's goal was to increase access to fresh  
          fruits, nuts, and vegetables for consumers using food assistance  
          programs and to increase the promotion and marketing of  
          specialty crops at certified farmers' markets, farm stands, and  
          community-supported agriculture farms.  This program operated in  
          23 counties at 150 markets in 2014 and has generated a six-fold  
          return on investment in farmers' market sales. 









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          Is legislation needed?  The federal government does not require  
          states to enact legislation in order to be eligible to receive  
          funds from the Food Insecurity Nutrition Incentive grant  
          program.  However, the co-sponsors of this bill argue that with  
          this legislation, California is better positioned to secure  
          available federal matching funds.

           RELATED  
          LEGISLATION  :

          AB 2413 (Perez), Chapter 583, Statutes of 2014.  Creates the  
          Office of Farm to Fork within CDFA to, among other things,  
          promote food access and increase the amount of agricultural  
          products available to underserved communities and schools within  
          California.

          AB 2385 (Ting) of 2014.  Would have created the Market Match  
          Nutrition Incentive Program within the California Department of  
          Food and Agriculture.  Held in Assembly Appropriations.

          AB 581 (Pérez), Chapter 505, Statutes of 2011.  Creates the  
          California Healthy Food Financing Initiative for the purpose of  
          promoting healthy food access to underserved communities.

           PRIOR  
          ACTIONS  :
                         
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          |Assembly Floor:                       |61 - 16                    |
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          |Assembly Appropriations Committee:    |12 - 1                     |
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          |Assembly Agriculture Committee:       |7 - 1                      |
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           SUPPORT  :
          
          Ecology Center (Co-Sponsor)
          Latino Coalition for a Healthy California (Co-sponsor)
          Public Health Institute (Co-Sponsor)
          Roots of Change (Co-Sponsor)
          Agricultural Commissioner of the City and County of San  
          Francisco
          Agricultural Institute of Marin








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          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
          Berkeley Food Institute
          Building Healthy Communities: Long Beach
          California Alliance of Farmers' Markets
          California Association of Food Banks
          California Black Health Network
          California Center for Public Health Advocacy
          California Certified Organic Farmers
          California Commission on Aging
          California Convergence
          California Equity Leaders Network
          California Farm Bureau Federation
          California Food Policy Advocates
          California Food Policy Council
          California Hunger Action Coalition
          California Pan-Ethnic Health Network
          California Partnership
          California Rural Legal Assistance Foundation
          California School Employees Association, AFL-CIO
          California Women for Agriculture
          Center for Food Safety
          City of Maywood
          City of Santa Monica
          Coastside Farmers' Markets
          Community Alliance with Family Farmers
          Community Food and Justice Coalition
          Contra Costa County Board of Supervisors
          Courage Campaign
          CUESA
          Cultiva la Salud
          EnrichLA
          Farm Fatales
          The Farmers Guild
          Feeding America San Diego
          First 5 LA
          Food Chain Workers Alliance
          Food for People, Inc., the Food Bank for Humboldt County
          Hunger Action Los Angeles
          Hunger Advocacy Network
          Jewish Family Service of Los Angeles
          Junior Leagues of California State Public Affairs Committee








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          Latino Health Alliance
          Long Beach Alliance for Food and Fitness
          Long Beach Time Exchange
          Los Angeles Community Action Network
          Los Angeles Food Policy Council
          Madera County Agricultural Commissioner
          Natural Resources Defense Council
          North Coast Growers' Association
          Nutrition and Fitness Collaborative of the Central Coast
          Orange County Food Access Coalition
          Pacific Coast Farmers' Market Association
          Plumas-Sierra Community Food Council
          PolicyLink
          Prevention Institute
          Project Angel Food
          Sacramento Native American Health Center, Inc.
          San Diego Food System Alliance
          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
          Sprouts of Promise
          SPUR
          St. Anthony Foundation
          Strategic Alliance for Healthy Food and Activity Environments
          Sustainable Economic Enterprises of Los Angeles
          Sustainable Economics Law Center
          Thai Community Development Center
          UC San Diego, Department of Pediatrics Center for Community  
          Health
          UFCW Western States Council
          United Way of Kern County
          Urban & Environmental Policy Institute at Occidental College
          Volunteers of East Los Angeles
          Wellington Square Certified Farmers Market
          Western Center on Law and Poverty
          Western Growers Association
          Women Organizing Resources, Knowledge and Services
          The Yolo County Ag & Food Alliance








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          Yolo County Board of Supervisors
          Youth Policy Institute
          One individual

           OPPOSITION  :
          
          None received

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