BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1321| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1321 Author: Ting (D), et al. Amended: 8/31/15 in Senate Vote: 21 SENATE AGRICULTURE COMMITTEE: 4-1, 7/7/15 AYES: Galgiani, Cannella, Pan, Wolk NOES: Berryhill SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 61-16, 6/3/15 - See last page for vote SUBJECT: Nutrition Incentive Matching Grant Program SOURCE: Ecology Center Latino Coalition for a Healthy California Public Health Institute Roots of Change DIGEST: This bill establishes the Nutrition Incentive Matching Grant 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 by connecting farmers with food assistance recipients. ANALYSIS: Existing law: AB 1321 Page 2 1)Establishes the Office of Farm to Fork in 2014 within 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.). 2)Establishes the California Healthy Food Financing Initiative (CHFFI) 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.). 3)Authorizes CDFA to regulate 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 (Food and Agricultural Code §47000 et seq.). 4)Authorizes the State Department of Social Services to administer the CalFresh Program, federally known as the Supplemental Nutrition Assistance Program (SNAP; formerly Food Stamp), to provide food assistance for eligible low-income Californians. 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 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 (Women, Infants and Children), CalWORKS (California Work Opportunity and Responsibility to Kids), CalFresh, WIC Farmers' Market AB 1321 Page 3 Nutrition Act, Senior Farmers' Market Nutrition Program, or Supplemental Security Income. 4)Defines "qualified entity" to mean either (a) a CFM, association of certified producers, or a nonprofit organization representing certified producers and authorized by the United States Department of Agriculture (USDA) to accept federal SNAP benefits; or (b) 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 Incentive Grant Program and other public and private sources. 6)Requires that the grant program only provide grants upon the deposit of sufficient funds, as specified, into its grant account. 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 CFM 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. 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. Background AB 1321 Page 4 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/ ImprovingFoodAccessInCalifornia.pdf) 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. Comments Market Match Pilot Program. According to one of this 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 CFMs, 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. Is legislation needed? The federal government does not require states to enact legislation in order to be eligible to receive AB 1321 Page 5 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, CDFA indicates that this 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, CDFA would not be authorized to operate the program if sufficient funds have not been appropriated. SUPPORT: (Verified8/28/15) Ecology Center (co-source) Latino Coalition for a Healthy California (co-source) Public Health Institute (co-source) Roots of Change (co-source) Agricultural Commissioner of the City and 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 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 AB 1321 Page 6 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 City of Santa Monica's Farmers Market Program 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 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 ONEgeneration 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. AB 1321 Page 7 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 Westside Food Bank Women Organizing Resources, Knowledge and Services The Yolo County Ag & Food Alliance Yolo County Board of Supervisors Youth Policy Institute OPPOSITION: (Verified8/28/15) None received 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 AB 1321 Page 8 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." ASSEMBLY FLOOR: 61-16, 6/3/15 AYES: Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Ting, Weber, Williams, Wood, Atkins NOES: Travis Allen, Bigelow, Brough, Beth Gaines, Harper, Jones, Kim, Mathis, Mayes, Melendez, Obernolte, Patterson, Steinorth, Wagner, Waldron, Wilk NO VOTE RECORDED: Chang, Hadley, Thurmond Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/31/15 12:47:49 **** END **** AB 1321 Page 9