BILL ANALYSIS Ó AB 1321 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1321 (Ting) As Amended August 31, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | |(June 3, 2015) |SENATE: | 30-8 |(September 2, | | |61-16 | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 1321 Page 2 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 AB 1321 Page 3 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. AB 1321 Page 4 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