BILL ANALYSIS �
AB 152
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 152 (Fuentes) - As Amended: April 14, 2011
Policy Committee: HealthVote:19 - 0
Rev and Tax 9-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates a tax credit for farmers who donate fresh
fruits and vegetables to a food bank. Specifically, this bill:
1)Creates a 10% tax credit for farmers who donate fresh fruits
and vegetables to a food bank.
2)Creates a state Emergency Food Assistance Program (EFAP) in
statute and requires that any money available for the program,
outside of the current state tax check-off box donations and
current federal food assistance funding, be used to purchase
California grown and produced foods.
3)Requires the Department of Public Health (DPH) to investigate
and apply for federal funding opportunities regarding
promoting healthy eating and preventing obesity, as specified.
4)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.
FISCAL EFFECT
1)The Franchise Tax Board estimates lost tax revenue of $200,000
for the first two years with an on-going annual revenue loss
of $400,000 due to farmers taking advantage of the 10% tax
credit.
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2)The Department of Social Services already administers an EFAP
program through which they distribute U.S. Department of
Agriculture (USDA) commodities. There are no additional costs
associated with codifying that program and requiring that
future funding, when available, be used to purchase California
grown and produced food.
3)Costs associated with DPH investigating potential funding
opportunities would be minor and absorbable within existing
resources.
COMMENTS
1)Rationale . The purpose of this is bill is to directly connect
California's farmers with Californians who are hungry and in
need of food. This is accomplished by creating a 10% tax
credit for farmers who donate fresh fruits and vegetables to
food banks. In addition, this bill allows California to join
38 other states by creating a state emergency food program.
The hope is that any future funding that is available to
purchase emergency food will go toward the purchase of
California foods.
2)Farm to Family Programs . The California Association of Food
Banks (CAFB - the sponsors of this bill) and other food bank
organizations in the state, including Ag Against Hunger, have
developed programs that allow California growers and packers
to connect with the state's food banks. In CFAB's Farm to
Family Program the food banks acquire unmarketable produce
from growers and packers around the state. In many cases the
produce is donated, however, CAFB also purchases the fresh
produce. In 2010, this program distributed 100 million pounds
of fresh produce.
Despite the significant amount of fresh produce that is
donated or purchased for the state's food banks, need has
outpaced donations. A recent Gallup poll showed that nearly
one in five Californians does not have enough food. Food banks
across California have seen the largest growth in the number
of clients in at least a generation. Statewide, food banks are
reporting a 30% - 50% increase in the number of people in
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need. For some individual programs, the impact has been at
least 100% over the previous year.
3)Current Emergency Food Assistance Program (EFAP) . Currently
DSS serves as the state distributing agency for the Temporary
Emergency Food Assistance Program (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.
4)Related Legislation . AB 727 (Correa) of 2001 included a
broader agricultural tax credit than the one contained in this
bill. That bill died in the Senate Revenue and Taxation
Committee.
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
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
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hearing in the Business, Professions and Consumer Protection
Committee.
AB 1329 (Davis) contains similar language to this bill in that
it establishes a competitive grant process for the California
Cancer Registry (CCR). That bill is currently pending before
this committee.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081