BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 2635         Hearing Date:  6/21/16
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          |Author:    |Committee on Agriculture                             |
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          |Version:   |2/19/16                                              |
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          |Urgency:   |No                    |Fiscal:    |Yes              |
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          |Consultant:|Anne Megaro                                          |
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                        Subject:  Public health:  food access


           SUMMARY  :
          This bill would extend the operation and repeal dates for  
          provisions of the California Healthy Food Financing Initiative  
          until July 1, 2023 and January 1, 2024, respectively.


           BACKGROUND AND EXISTING  
          LAW  :
          Existing law establishes the California Healthy Food Financing  
          Initiative (CHFFI) 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.).  

          Existing law directs the California Department of Food and  
          Agriculture (CDFA) to develop recommendations for actions to be  
          taken to promote food access.  In a 2012 report titled  
          "Improving Food Access in California," recommendations include:

                 Improving the distribution of fresh produce
                 Expanding retail options for healthy food
                 Helping low-income consumers purchase food
                 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  







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          toward use in underserved communities.  
          (  http://www.cdfa.ca.gov/exec/public_affairs/pdf/ImprovingFoodAcce 
          ssInCalifornia.pdf  ) 



          Existing law:

             1)   Establishes the CHFFI to expand access to nutritious  
               foods in underserved urban and rural communities and to  
               eliminate food deserts in California.

             2)   Establishes the CHFFI Council to develop financing  
               options and program parameters to accomplish the purpose of  
               the initiative.

             3)   Requires CDFA, by July 1, 2012, to prepare  
               recommendations regarding actions that need to be taken to  
               promote food access in California.

             4)   Establishes the CHFFI Fund which is comprised of  
               federal, state, philanthropic, and private funds, for the  
               purpose of expanding access to healthy foods in underserved  
               communities.


           PROPOSED  
          LAW  :

          This bill:

             1)   Extends the operation and repeal dates for provisions of  
               the California Healthy Food Financing Initiative until July  
               1, 2023 and January 1, 2024, respectively.


           ARGUMENTS IN SUPPORT:
          According to the author, "CHFFI is intended to increase access  
          to healthy and nutritious foods. The law is mirrored after  
          successful HFF Programs in the states of Pennsylvania and New  
          York and addresses the issue by encouraging the active pursuit  
          of opportunities to increase the number of grocery stores, farm  
          stands, farmers' markets, direct farm to institutions and  
          consumer markets, and community gardens in underserved urban and  
          rural communities.  As CHFFI is set to expire in July of 2017,  








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          this bill extends it till July 2023."


           COMMENTS  :

          Need for this bill.  Current efforts are underway by a variety  
          of public and private entities to achieve the goal of increasing  
          food access.  It has been argued that CDFA has the expertise,  
          relationships, and infrastructure to further these efforts  
          through a collaborative statewide program.  According to the  
          2012 CDFA report previously referenced, "Government and private  
          efforts to increase food access are already underway at the  
          federal, state, and local levels.  In order to harmonize these  
          efforts and avoid duplication, the state can take an active role  
          in coordinating efforts and sharing information among the  
          various entities working to increase food access.  CHFFI can  
          serve to facilitate this coordination and make sure communities  
          have partners at the table and that they are connected to the  
          appropriate funding sources."

          Food deserts.  Food deserts are generally defined as poor  
          inner-city neighborhoods and rural communities where residents  
          live far from the closest grocery store or supermarket.  USDA  
          defines this distance as greater than a mile for urban  
          communities and greater than 10 miles for rural communities,  
          with exceptions for physical barriers (e.g. highways,  
          waterways). Residents within a food desert do not have access to  
          healthy foods and are limited to less-healthy, and sometimes  
          more expensive, alternatives available at the nearest  
          convenience store or fast-food restaurant.  Additionally,  
          research shows that residents of underserved communities have  
          higher rates of diet-related diseases, such as obesity and  
          diabetes.

          Federal and State HFFI:  In 2010, the Obama Administration  
          established the Healthy Food Financing Initiative (HFFI) to  
          support projects that increase access to healthy, affordable  
          food for communities located within food deserts.  With over  
          $400 million in funding, the initiative will work to eliminate  
          food deserts within seven years.  With coordination among the US  
          Departments of Agriculture (USDA), Health and Human Services  
          (HHS), and the Treasury, HFFI increases healthy food access by  
          developing and supporting grocery stores, small retailers,  
          corner stores, and farmers markets that provide healthy foods.   
          As of 2015, the total amount of funding awarded under the  








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          Community Economic Development Program within HHS is over $44.5  
          million.  The 2014 Farm Bill also provided $125 million for  
          HFFI, and the Treasury awarded $22 million in HFFI financial  
          assistance to Community Development Financial Institutions that  
          finance businesses providing healthy food options.  Other  
          assistance includes federal tax credits ($250 million),  
          below-market-rate loans, and grants.

          Additionally, HFFI programs have been successful in  
          Pennsylvania, where the initiative first originated, and in New  
          York. 

          State funding.  To date, California has not provided state funds  
          to support CHFFI.  This bill would extend the sunset date for  
          this initiative, allowing more time for financial support to be  
          identified and for the program to have a significant impact in  
          California.


           RELATED  
          LEGISLATION  :

          AB 2413 (Pérez), Chapter 583, Statutes of 2014.  Creates the  
          Office of Farm to Fork within CDFA to, among other things,  
          promote food access and increase the amount of agricultural  
          products available to underserved communities and schools within  
          California.  

          AB 38 (Pérez) of 2013.  Would have created the Office of Farm to  
          Fork within CDFA to, among other things, promote food access and  
          increase the amount of agricultural products available to  
          underserved communities and schools within California.  Held  
          under submission in the Assembly Committee on Appropriations.

          AB 1321 (Ting), Chapter 442, Statutes of 2015.  Establishes the  
          Nutrition Incentive Matching Grant Program in the Office of Farm  
          to Fork within CDFA to encourage the consumption and purchase of  
          fresh fruits, nuts, and vegetables by connecting farmers with  
          food assistance recipients.

          AB 2385 (Ting) of 2014.  Would have created the Market Match  
          Nutrition Incentive Program within CDFA.  Held in Assembly  
          Appropriations.

          AB 581 (Pérez), Chapter 505, Statutes of 2011.  Creates the  








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          California Healthy Food Financing Initiative for the purpose of  
          promoting healthy food access to underserved communities.


           PRIOR  
          ACTIONS  :    
                    
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          |Assembly Floor:                       |79 - 0                     |
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          |Assembly Appropriations Committee:    |19 - 0                     |
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          |Assembly Agriculture Committee:       |10 - 0                     |
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           SUPPORT  :
          
          California Food Policy Advocates
          California Retailers Association


           OPPOSITION  :
          
          None received
                                      -- END --