BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1321|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   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:








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          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  







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            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







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          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  







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          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







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          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.







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          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  







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          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


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