BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1321 (Ting) - Nutrition Incentive Matching Grant Program
          
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          |Version: July 1, 2015           |Policy Vote: AGRI. 4 - 1        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Robert Ingenito     |
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          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.









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          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  








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            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  








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          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.




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