BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2720 (J. Perez)
Hearing Date: 8/12/2010 Amended: 8/10/2010
Consultant: Katie Johnson Policy Vote: Health 6-2
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BILL SUMMARY: AB 2720 would make findings and declarations
related to the state taking action to ensure an individual's
right to access health food items. The bill would require
relevant departments to develop recommendations on how to
promote food access throughout the state and would permit the
Secretary of Food and Agriculture to establish a related
advisory group. The bill would require the Department of Food
and Agriculture, in consultation with the California Department
of Public Health, the Department of Social Services, and the
Treasurer to implement the California Healthy Food Financing
Initiative. A related fund would be established in the State
Treasury, which would be comprised of federal, state, and
private funds for expenditure upon appropriation by the
Legislature.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
HFFI federal grant fund likely in the millions of
dollars Federal/
expenditures, potential General
state-match and continuing
funding for projects pressure
Report recommendations cost pressure, likely in
General
the millions of dollars
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
This bill would recast the "Healthy Food Purchase" pilot
program, established by AB 2384 (Leno), Chapter 236, Statutes of
2006, and would permit the California Department of Public
Health (CDPH) to award grants and in-kind support to nonprofits
to encourage the sale and consumption of fresh fruits and
vegetables. In order to streamline the awards of these grants,
this bill would exempt CDPH's grant awarding activities from the
State Contract Act. Also, the program's sunset would be extended
from January 1, 2013, to January 1, 2015. To the extent that
CDPH secures grant funding, there would be an expenditure of
federal or other funds. The program currently prohibits the use
of General Fund moneys.
This bill would also state that the Legislature finds and
declares that access to health food items is a basic human right
and that opportunities for increasing access to health foods
should be actively pursued and fostered.
By July 1, 2011, this bill would require the Department of Food
and Agriculture (CDFA), in consultation with CDPH and the
Department of Social Services (DSS), to provide
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AB 2720 (J. Perez)
recommendations to the Legislature regarding actions that need
to be taken to promote food access. These requirements would put
General Fund cost pressure on the Legislature to allocate funds,
likely in the millions of dollars, to support ongoing healthy
foods access.
Additionally, CDFA would be required to coordinate efforts, with
CDPH and DSS, to maximize the funding opportunities provided by
the federal 2010 Healthy Food Financing Initiative (HFFI). The
initiative's intent is to eliminate food deserts across the
country in 7 years time. On February 19, 2010, President Obama
announced his intention to make available $400 million in
federal grant funds, loans, and tax breaks to bring grocery
stores and other healthy food retailers to underserved urban and
rural communities. The funding has yet to be approved by
Congress.
Depending on the number and scope of grant applications that
CDFA, CDPH, and DSS made to the federal government, staff
resources would be necessary to implement these provisions.
To the extent that California secured HFFI grant funds, there
would be 1) an expenditure of federal funds, 2) potential
General Fund pressure if state matching funds were required as a
condition of receipt of federal funds, and, 3) potential General
Fund pressure to continue to fund projects financed by federal
grant funds to the extent the projects were not time-limited.
Staff notes that the August 10, 2010, amendments amended the
bill to: 1) permit the Secretary of Food and Agriculture to
convene a healthy food advisory group, 2) establish and
implement the California Healthy Food Financing Initiative in
concert with pending federal legislation, regulations, and
funding, 3) establish the California Healthy Food Financing
Initiative Fund in the State Treasury, and 4) delete the
provisions related to the Healthy Food Purchase Pilot Program.
The author's proposed amendments would add representatives from
the grocery industry to the advisory group.