BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNANCE AND FINANCE
                         Senator Robert M. Hertzberg, Chair
                                2015 - 2016  Regular 

                              
          
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          |Bill No:  |AB 1577                          |Hearing    |6/22/16  |
          |          |                                 |Date:      |         |
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          |Author:   |Eggman                           |Tax Levy:  |No       |
          |----------+---------------------------------+-----------+---------|
          |Version:  |6/13/16                          |Fiscal:    |Yes      |
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          |Consultant|Grinnell                                              |
          |:         |                                                      |
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                           CalFood Program:  CalFood Account



          Renames the Emergency Food Assistance Program as the CalFood  
          Program.


           Background 

           Administered by the California Department of Social Services,  
          the Emergency Food Assistance Program (EFAP) provides United  
          States Department of Agriculture (USDA) commodities to a network  
          of food banks for distribution to eligible individuals and  
          households within their service area.  To be eligible for USDA  
          commodities, a recipient or household must reside in the  
          geographical area being served and meet established income  
          guidelines.  In the 1970s and early 1980s, USDA accumulated  
          large quantities of surplus dairy products, grains, and honey,  
          through the USDA price support system.  President Reagan  
          authorized the distribution by food banks to low-income  
          individuals. Subsequently, Congress authorized the Temporary  
          Emergency Food Assistance Program (TEFAP) in the Jobs Bill and  
          provided states with administrative funds to manage and  
          distribute the commodities.  In 1990, Congress changed the name  
          to the Emergency Food Assistance Program.  The program was  
          designed to both reduce federal food inventories and storage  
          costs while assisting the needy.  In 1992, Governor Wilson  
          created a program through executive order to deliver surplus  
          produce food banks and similar agencies in California.







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          Under EFAP, USDA foods available to state distributing agencies,  
          based on the number of unemployed persons and the number of  
          people with incomes below the poverty level in the state.   
          States provide the food to local agencies that they have  
          selected, usually food banks, which in turn distribute the food  
          to local organizations, such as soup kitchens and food pantries  
          that directly serve the public.  States also provide the food to  
          other types of local organizations, such as community action  
          agencies, which distribute the foods directly to needy  
          households.

          In California, EFAP supplements the nutritional needs of  
          program-eligible individuals and households, and operates under  
          federal guidelines, with 49 sites serving all 58 counties.  
          Program-eligible recipients may receive commodities through  
          congregate feeding sites which serve meals, or through  
          distribution sites, which distribute food for household  
          consumption.  EFAP funds are supplemented by the Emergency Food  
          for Families voluntary contribution fund, where individuals can  
          donate funds using their Personal Income Tax returns (AB 152,  
          Fuentes, 2011).  Advocates for food banks and agricultural  
          organizations want to change the name of EFAP to the CalFood  
          program.  


           





          Proposed Law

           Assembly Bill 1577 renames the Emergency Food Assistance Program  
          as the CalFood Program.   The measure deletes references to  
          EFAP, and replaces them with CalFood.


           State Revenue Impact

           No estimate.










          AB 1577 (Eggman) 6/13/16                                Page 3  
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           Comments

           1.  Purpose of the bill  .  According to the author, "AB 1577  
          renames the State Emergency Food Assistance Program (SEFAP) to  
          prevent confusion with the California Food Assistance Program  
          (CFAP), which sound identical when pronounced as acronyms.  This  
          change aligns SEFAP with the standard naming convention of our  
          California programs, such as CalWORKS and CalFresh. CalFood  
          follows this convention while reflecting the intent of the  
          program."

          2.   Recent amendments  .  As approved by the Assembly, AB 1577  
          revised and extended California's Personal Income and  
          Corporation Tax credit for taxpayers donating food to food  
          banks.  These provisions were incorporated into the recently  
          approved Budget Act in AB 1609 (Committee on Budget).  As such,  
          the author amended AB 1577 to delete its tax provisions, leaving  
          only the renaming of EFAP.


           Assembly Actions

           Assembly Revenue and Taxation           9-0

          Assembly Appropriations                 20-0
          Assembly Floor                          80-0

           Support and  
          Opposition   (6/15/16)


           Support :  Alameda County Community Food Bank; American Academy  
          of Pediatrics, California; California Association of Food Banks;  
          California Bean Shippers Association; California Cattleman's  
          Association; California Citrus Mutual; California Farm Bureau  
          Federation; California Fresh Fruit Association; California  
          Grocers Association; California League of Food Processors;  
          California Pan-Ethnic Health Network; California Taxpayers  
          Association; Californians Against Waste; Community Action Agency  
          of Butte County; Community Action Agency of San Bernardino  
          County; Community Action Partnership of Orange County; Community  
          Alliance with Family Farmers; Community Food Bank; FABBRI;  
          Feeding America, San Diego; FIND Food Bank; Food Access; Food  
          Bank Coalition of San Luis Obispo County; Food Bank of Contra  








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          Costa and Solano; Food Bank of Santa Cruz County; Food for  
          People, the Food Bank for Humboldt County; Foodlink for Tulare  
          County; Grimmway Enterprise, Inc.; HMC Farms; Hunger Action of  
          Los Angeles ; Hunger Advocacy Network; Imperial Valley Food  
          Bank; International Grape Management, LLC; Jacobs & Cushman; San  
          Diego Food Bank; Los Angeles Regional Food Bank; MAZON - A  
          Jewish Response to Hunger; McClarty Farms; Mendocino Food and  
          Nutrition Program; Napa Valley Food Bank; National Resources  
          Defense Council; POM Wonderful , LLC; Prime Time; Redwood Empire  
          Food Bank; Sacramento Food Bank & Family Services; San Diego  
          Food Bank; San Diego Hunger Coalition; SF-Marin Food Bank; Sharp  
          Healthcare; St. Anthony's Foundation; Sun World International,  
          LLC; The HMC Group Marketing, Inc.; The Resource Connection Food  
          Bank; Vessey & Company; Western Agricultural Processors  
          Association; Western Growers Association; Western United  
          Dairymen; Westside Food Bank; Wonderful Citrus, LLC; Wonderful  
          Orchards, LLC; Wonderful Pistachios and Almonds, LLC; Yolo Food  
          Bank.


           Opposition  :  None received.



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