BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1321


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1321 (Ting)


          As Amended  August 31, 2015


          Majority vote


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          |ASSEMBLY:  |      |(June 3, 2015) |SENATE: | 30-8 |(September 2,    |
          |           |61-16 |               |        |      |2015)            |
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          |           |      |               |        |      |                 |
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          Original Committee Reference:  AGRI.


          SUMMARY:  Establishes the Nutrition Incentive Matching Grant  
          (NIMG) Program in the Office of Farm to Fork (OF2F), creates a  
          NIMG account and requires OF2F to establish minimum standards,  
          funding schedules and grant procedures for the NIMG program.   
          This bill directs the OF2F to solicit grant proposals, score,  
          and award grant funds as specified, and establish standards,  
          funding schedules, and procedures for awarding grants in  
          consultation with the United States Department of Agriculture  
          (USDA).  This bill also establishes standards for prioritizing  
          grants within the state.  


          The Senate amendments:


          1)Change the funding structure of the NIMG program by removing  
            the requirement for appropriations in the annual Budget Act. 









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          2)Clarify that state grants are only to be administered upon  
            receipt of sufficient federal funds. 


          3)Make technical changes.


          EXISTING LAW:  


          1)Establishes the Supplemental Nutrition Assistance Program  
            (SNAP), formerly the food stamp program, administered by USDA,  
            which imposes specified rules on specified program  
            participants and limits benefits based on those rules.  


          2)Establishes state grants for programs that supplement  
            nutrition benefits that are spent on products at farmers'  
            markets, based upon specified criteria.  


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, 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.


          COMMENTS:  The California Market Match (MM) program was launched  
          in 2009 to encourage low-income families receiving benefits  
          through SNAP to purchase fresh, locally-grown fruits and  
          vegetables at farmers' markets.  The program "matches" or  
          doubles the amount of benefits these families can spend and has  
          expanded operations to over 150 farmers' markets across  
          California and increased the spending power of 37,000 families.   



          According to the author, strong demand for MM often outstrips  








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          available funding for the program.  The 2014 federal Farm Bill  
          included $100 million in grant funding for programs such as MM  
          that incentivize healthier eating amongst SNAP recipients.  In  
          order to best position local programs to receive these federal  
          grants, this bill creates a state NIMG program to apply for  
          federal funds and award them to local MM programs with a proven  
          record of success.  Establishing a state framework to oversee  
          funding of MM programs would leverage state resources to  
          streamline local program administration, and expand MM programs  
          across a more equitable cross-section of communities that lack  
          access to fresh produce.


          One of the co-sponsors of this bill, Roots of Change, explained  
          how they used $1.9 million in CDFA Specialty Crop Block Grant  
          money, and nearly $300,000 in philanthropic funds from 2009 to  
          2013, to create the California MM pilot program.  The MM pilot  
          program has expanded market opportunities for specialty crop  
          farmers.  Supporters state that community-based partners  
          operated in 23 counties to implement MM programs in 150 markets  
          in 2014.  Currently, the incentive match funds used to increase  
          purchasing power are derived from philanthropic sources only and  
          are therefore limited in scope.  Supporters state the goal of  
          this bill is to assist the state in leveraging federal dollars  
          to increase specialty crop sales among low-income Californians.



          The author states that California is uniquely positioned to  
          benefit from greater proliferation of programs such as MM.   
          California grows over 400 commodities and produces nearly half  
          of the United States' grown fruits, nuts and vegetables.  There  
          are approximately 700 certified Farmers' Markets and 2,200  
          certified producers in California.  Furthermore, the author  
          stresses that California has a persistent poverty problem to  
          solve.  24% of Californians live in poverty and is ranked 50th  
          in the rate of participation in SNAP.  Scaling up MM programs  
          would create an incentive for more families to utilize their  
          SNAP benefits and ensure more Californians can afford to eat  
          what is grown locally.










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          There is no opposition on file.



          This bill is substantially similar to the version passed by the  
          Assembly. 


          Analysis Prepared by:                                             
                          Victor Francovich / AGRI. / (916) 319-2084  FN:  
          0001704