BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2635| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2635 Author: Committee on Agriculture Introduced:2/19/16 Vote: 21 SENATE AGRICULTURE COMMITTEE: 5-0, 6/21/16 AYES: Galgiani, Cannella, Berryhill, Pan, Wolk SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16 AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen ASSEMBLY FLOOR: 79-0, 5/5/16 (Consent) - See last page for vote SUBJECT: Public health: food access SOURCE: Author DIGEST: This bill extends the operation and repeal dates for provisions of the California Healthy Food Financing Initiative until July 1, 2023, and January 1, 2024, respectively. ANALYSIS: Existing law: 1)Establishes the California Healthy Food Financing Initiative (CHFFI) to expand access to nutritious foods in underserved urban and rural communities and to eliminate food deserts in AB 2635 Page 2 California. 2)Establishes the CHFFI Council to develop financing options and program parameters to accomplish the purpose of the initiative. 3)Requires the California Department of Food and Agriculture (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. This bill extends the operation and repeal dates for provisions of the CHFFI until July 1, 2023 and January 1, 2024, respectively. Background The CHFFI was established 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.). The CDFA is required 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 AB 2635 Page 3 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 toward use in underserved communities. (http://www.cdfa.ca.gov/exec/public_affairs/pdf/ImprovingFoodAcce ssInCalifornia.pdf) 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 AB 2635 Page 4 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 U.S. Departments of Agriculture, 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 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 extends 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, this bill would result in a cost pressure for the Legislature to fund the CHHFI. The amount is unknown, but likely would be minimally in the hundreds of thousands of dollars (General Fund or special fund). SUPPORT: (Verified8/12/16) AB 2635 Page 5 California Food Policy Advocates California Retailers Association OPPOSITION: (Verified8/12/16) None received 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, this bill extends it till July 2023." ASSEMBLY FLOOR: 79-0, 5/5/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Beth Gaines Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/15/16 20:30:02 **** END **** AB 2635 Page 6