BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1321 (Ting) - Nutrition Incentive Matching Grant Program ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 1, 2015 |Policy Vote: AGRI. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1321 would establish the Nutrition Incentive Matching Grant (NIMG) Program in the Office of Farm to Fork within the California Department of Food and Agriculture (CDFA) to encourage the consumption and purchase of fresh fruits, nuts, and vegetables. It also would create the NIMG account in the state treasury. Fiscal Impact: CDFA indicates that the bill could ultimately result in annual General Fund costs potentially reaching the low millions of dollars (special fund), some of which could be offset by federal funds. However, the department would not be authorized to operate the program if sufficient funds have not been appropriated. AB 1321 (Ting) Page 1 of ? Background: The Office of Farm to Fork (OFF) 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. 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 consumers. The 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. Proposed Law: This bill would, among other things, do the following: Establish the Nutrition Incentive Matching Grant 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. Create the Nutrition Incentive Matching Grant (NIMG) 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. Require that sufficient funds be deposited into the grant account before the Grant Program becomes operative. Require OFF 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 AB 1321 (Ting) Page 2 of ? operators. Limit the allocation of Grant Program funds for qualified small business consumer incentive programs to one-third of the fund. Require CDFA to give grant funding priority to qualified entities based on: o The service area and lack of consumer incentive programs. o Community demographics such as the number of people who qualify for food assistance, the prevalence of diet-related illnesses, and access to fresh produce. o Demonstrated efficiency in administering a consumer incentive program. Related Legislation: AB 2413 (Perez, Chapter 583, Statutes of 2014) created 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. Staff Comments: The NIMG program would provide a 100 percent match of the value of qualifying CalFresh purchases made at certified farmers markets or certain other stores. As an example, a family that spends $20 in CalFresh benefits at a participating farmers market would get another $20 from the NIMG program to purchase fresh fruits and vegetables. As noted above, the NIMG account created by the bill could receive moneys from public and/or private sources. The bill AB 1321 (Ting) Page 3 of ? would preclude CDFA from operating the program until such time that the account contains "sufficient funds." However, this term is not defined in the bill. But until such time, the bill would have no fiscal impact to CDFA. Additionally, the bill provides no funding to implement the Nutrition Incentive Matching Grant Program. Implementation of the program is contingent upon funds being provided by the state or outside sources. Should funds be available for the program there will be a fiscal impact to CDFA to establish the program, apply for matching grants, solicit proposals, grant funds, and oversee compliance among grant recipients. The specific costs to CDFA would depend on the eventual funding and grant applications. -- END --