BILL ANALYSIS �
AB 152
Page 1
Date of Hearing: March 22, 2011
ASSEMBLY COMMITTEE ON HEALTH
William W. Monning, Chair
AB 152 (Fuentes) - As Amended: March 15, 2011
SUBJECT : Food banks: grants: voluntary contributions: income
tax credits.
SUMMARY : Establishes the State Emergency Food Assistance
Program (SEFAP) within the Department of Social Services (DSS)
and allows for contributions to SEFAP for the purchase of
California grown fresh fruits or vegetables. Provides a tax
credit to California growers for the costs of fresh fruits or
vegetables donated to California food banks. Specifically, this
bill :
1)Requires the Department of Public Health (DPH) to investigate
and apply for federal funding opportunities regarding
promoting healthy eating and preventing obesity, as specified.
2)Provides DPH with the authority to award grants and in-kind
support to eligible nonprofit organizations to encourage the
sale and consumption of fresh fruits and vegetables, implement
programs and initiatives that prevent obesity and hunger, and
promote healthy eating and access to nutritious food in
underserved, urban, and rural communities.
3)Grants a credit against the taxes imposed by the Personal
Income Tax Law and the Corporation Tax Law for the cost of
fresh fruits or vegetables donated to food banks located in
California.
4)Permits in the case where the tax credit exceeds the "tax,"
the excess may be carried over to reduce the "tax" in the
following year, and for the six succeeding years if necessary,
until the credit has been exhausted.
5)References "food bank" definition in existing law as a surplus
food collection and distribution system operated and
established to assist in bringing donated agricultural
products to nonprofit charitable organizations and individuals
for the purpose of reducing hunger and nutritional needs.
6)Requires, upon receipt of the donated fresh fruit or
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vegetables, the food bank to provide a certificate to the
donor. Requires the certificate to contain a statement signed
and dated by a person authorized by that organization in
accordance with existing law. Requires that the certificate
also contain the type and quantity of fresh fruits or
vegetables donated, the name of donor or donors, and the name
and address of the donee.
7)Requires, upon the request of the Franchise Tax Board (FTB),
the taxpayer to provide a copy of the certification to FTB.
Requires, to the extent the data is available, FTB to report
annually to the Legislature regarding the utilization of this
tax credit. Makes this reporting requirement inoperative on
January 1, 2016 pursuant to existing law.
8)Requires DSS to establish and administer SEFAP to provide
emergency food and funding for the provision of emergency food
to food bank networks and other organizations whose ongoing
primary function is to facilitate the distribution of food to
low-income households.
9)Establishes SEFAP Account in the Emergency Food Assistance
Program Fund, already in existing law, and permits the SEFAP
Account to receive General Fund (Fund) monies, federal funds,
and voluntary donations or contributions. Requires all money
received by the SEFAP Account, upon appropriation by the
Legislature, to be allocated to DSS for allocation to the
SEFAP and requires the moneys to be used for the purchase,
storage, and transportation of food grown or produced in
California. Prohibits moneys from the Fund from being used
for the administrative costs of DSS.
10)Makes various declarations and findings regarding healthy
eating, preventing obesity and the consequences of food
insecurity.
EXISTING LAW :
1)Establishes the scope of functions and responsibilities of
DPH.
2)Establishes The Emergency Food Assistance Program (TEFAP),
under federal law, which supplements the diets of low-income
Americans, including elderly people, by providing them with
emergency food and nutrition assistance at no cost.
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3)Establishes the Personal Income Tax Law which allows
taxpayers, until January 1, 2014, to designate on their tax
returns that a specified amount in excess of their tax
liability be contributed to the Fund, to be allocated by DSS
for direct services for TEFAP.
4)Authorizes through the Personal Income Tax Law and the
Corporation Tax Law various credits against the taxes imposed
by those laws.
FISCAL EFFECT : This bill has not yet been heard by a fiscal
committee.
COMMENTS :
1)PURPOSE OF THIS BILL . According to the author, nearly 20% of
Californians (over 7 million) report that they are unable to
afford the food they need including many seniors and working
parents whose budgets for food are squeezed by the economic
downturn and slow recovery. Additionally, the sponsor
maintains that low-income Californians find it difficult to
purchase healthy food such as fruits and vegetables because of
cost constraints and a lack of access in their community. The
author asserts that since the recession, food banks across
California have seen a sudden and unprecedented increase in
requests for food assistance, beyond anything that has been
seen in a generation. Statewide most food banks are reporting
a 30 to 50% increase in requests for assistance.
The California Association of Food Banks, sponsor of this bill
argues that while 38 other states have made an investment in
emergency food and nutrition programs, California currently
does not have a state emergency food assistance program.
State programs are generally intended to fill the unmet need
left by TEFAP. The lack of a state investment in emergency
food, places a heavy burden of providing emergency food to an
already-stretched network of food banks. The author and
sponsor maintain that establishing a state emergency food
assistance program and providing an incentive for California
growers to donate healthy products like fruits and vegetables
to food banks will increase the amount of food distributed and
reduce the devastating impact of hunger on adults, children
and seniors in the State.
The author has also included in this bill the granting of
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authority to DPH for programs that prevent obesity and hunger,
and promote healthy eating and access to nutritious food.
According to the author, the granting language will eliminate
administrative burdens that delay DPH in getting obesity
prevention dollars out into the community.
2)BACKGROUND . Currently DSS serves as the state distributing
agency for TEFAP. Through TEFAP, the United States Department
of Agriculture's (USDA) Food and Nutrition Service makes food
products available to states for distribution to qualifying
emergency food organizations, including food banks, church
pantries, soup kitchens, emergency shelters, and community
action agencies. These organizations in turn distribute the
food directly to those in need or use it to prepare meals.
The amount of food that each state receives under TEFAP is
based on the number of unemployed persons and the number of
people with incomes below the poverty level in the state.
California received almost 97 million pounds of food (the
equivalent of 76 million meals) in federal Fiscal Year (FFY)
2001-02, but received only 54 million pounds of food (41
million meals) in FFY 2007-08. In FFY 2008-09, California was
back up to just over 95 million pounds of food (74 million
meals). According to the industry, the fluctuation in the
amount of food provided to states under TEFAP can make the
program difficult for food banks to administer.
DSS currently has an existing network which contracts with 50
local food banks and California Emergency FoodLink to provide
all 58 counties with USDA food under TEFAP. This network
reaches 1 million people each month living at 150% of the
federal poverty level ($30,000 for a family of four) with
approximately two meals worth of federal food.
3)OTHER STATES' INVESTMENT IN EMERGENCY FOOD PROGRAMS .
Thirty-eight other states have established state emergency
food nutrition programs. States that make the greatest
investments in emergency food provide between $20 and $62 per
food insecure household annually. States typically provide a
percentage of the overall funds to meet the transportation,
storage and infrastructure requirements of food banks.
Additionally, some states require that any funds used from a
state emergency food program be spent on products grown or
produced in-state. Following is a table, adapted from a
California Association of Food Banks' policy brief, that
illustrates the investment some other states have made in
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state emergency food programs:
--------------------------------------------------------------
| State | Annual State |Food Insecure | Annual |
| | Emergency Food |Households ii | Expenditure |
| | Funding i | |Per Household |
|-------------+------------------+--------------+--------------|
|Massachusetts| $13 million | 206,000 | $62.00 |
| | | | |
|-------------+------------------+--------------+--------------|
|New York | $31 million | 858,000 | $36.00 |
|-------------+------------------+--------------+--------------|
|Pennsylvania | $18 million | 557,000 | $32.00 |
|-------------+------------------+--------------+--------------|
|New Jersey | $7 million | 324,000 | $22.00 |
|-------------+------------------+--------------+--------------|
|Ohio | $12 million | 607,000 | $20.00 |
|-------------+------------------+--------------+--------------|
|Arizona | $2 million | 329,000 | $6.00 |
|-------------+------------------+--------------+--------------|
|Texas | $1 million | 1,409,000 | $0.71 |
|-------------+------------------+--------------+--------------|
|Oregon | $1 million | 196,000 | $5.00 |
|-------------+------------------+--------------+--------------|
|California | $0 | 1,546,000 |$0 |
--------------------------------------------------------------
i Feeding America
ii USDA Household Food Security in the United States
4)SUPPORT . Food banks write in support that this bill would
increase access to fresh and healthy California-grown foods
for low-income populations by creating a state emergency food
assistance program for the purchase and distribution of
healthy California foods. The food banks write that the
proposed tax credit will make it easier for California growers
who donate fresh fruits and vegetables to food banks. The
food banks argue that AB 152 is a win-win for California food
banks and the people they serve, as well as for California
growers. California growers write in support that they want
to do their part to help the less fortunate in California eat
healthy California-grown food, but the fluctuating prices of
food and tight operating margins often make it difficult to
donate. The 10% tax credit allowed under this bill, according
to California growers, will serve as an incentive for them to
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donate to food banks.
The California State PTA states that the epidemic of obesity in
our state and nation can partially be attributed to the
unavailability of fresh food in many urban areas. The
California State PTA supports the concept of facilitating the
donation of surplus food to food banks in order to improve the
nutrition of our state's poorest and most vulnerable children.
The California Catholic Conference (CCC) writes that access
to food is a basic human right. Low consumption and lack of
access to healthy, affordable food has resulted in higher
levels of obesity and other diet-related diseases. The CCC
states that it is in the interest of the state to support
programs that promote increased access to healthy food and
increased consumption of California grown fresh fruits and
vegetables in order to improve child and adult nutrition,
promote a strong healthy workforce, and strengthen local and
regional farm economies.
5)PREVIOUS AND RELATED LEGISLATION .
a) AB 727 (Correa) of 2001 was substantially similar to
this bill, and died in the Senate Revenue and Taxation
Committee.
b) AB 2720 (John A. Perez) 2010 would have created the
California Healthy Food Financing Initiative for the
purpose of expanding access to healthy foods in underserved
communities by leveraging non-state funding options. Would
have required the Department of Agriculture, in
consultation with DPH and DSS, to prepare recommendations
to promote food access within California. AB 2720 was
vetoed by Governor Arnold Schwarzenegger stating that the
federal funding for the Healthy Food Financing Initiative
had not been passed by Congress.
c) AB 581 (John A. Perez), introduced this year, is
substantively similar to AB 2720 and is currently scheduled
to be heard by the Assembly Agriculture Committee on April
6, 2011.
d) AB 727 (Mitchell), also introduced this year, requires
the Department of General Services to develop nutritional
standards that govern the foods purchased for all state
departments, agencies, and state-run institutions in
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accordance with the federal dietary guidelines and to
develop prescribed guidelines for sustainable purchasing
practices and procedures that encourage purchasing from
local vendors, farms, and manufacturers when feasible. AB
727 is awaiting hearing in the Business, Professions and
Consumer Protection Committee.
6)DOUBLE REFERRAL . This bill has been double referred; should
it pass out of this committee it will be referred to the
Assembly Revenue and Taxation Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO
California Association of Food Banks
California Catholic Conference, Inc.
California Communities United Institute
California State PTA
Community Action Agency of Butte County, Inc.
Community Food Bank of San Benito County
Food Bank of Contra Costa & Solano
Food Bank For Monterey County
HMC Farms
Imperial Valley Food Bank
Mendocino Food and Nutrition Program
Ocean Mist Farms
Prima Frutta Packing, Inc.
Prime Time International
St. Anthony's San Francisco
Second Harvest Food Bank
Shasta Senior Nutrition Programs/Food Bank
Vessey and Company, Inc.
Opposition
None on file.
Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916)
319-2097
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