BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Robert M. Hertzberg, Chair 2015 - 2016 Regular ------------------------------------------------------------------ |Bill No: |AB 1577 |Hearing |6/22/16 | | | |Date: | | |----------+---------------------------------+-----------+---------| |Author: |Eggman |Tax Levy: |No | |----------+---------------------------------+-----------+---------| |Version: |6/13/16 |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant|Grinnell | |: | | ----------------------------------------------------------------- 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. AB 1577 (Eggman) 6/13/16 Page 2 of ? 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 of ? 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 AB 1577 (Eggman) 6/13/16 Page 4 of ? 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. -- END --