BILL ANALYSIS �
AB 152
Page 1
ASSEMBLY THIRD READING
AB 152 (Fuentes)
As Amended May 27, 2011
Majority vote
HEALTH 19-0 REVENUE & TAXATION
9-0
-----------------------------------------------------------------
|Ayes:|Monning, Logue, Ammiano, |Ayes:|Perea, Donnelly, Beall, |
| |Atkins, Bonilla, Eng, | |Charles Calderon, |
| |Garrick, Gordon, Hayashi, | |Cedillo, Alejo, Gordon, |
| |Roger Hern�ndez, | |Harkey, Nestande |
| |Bonnie Lowenthal, | | |
| |Mansoor, Mitchell, | | |
| |Nestande, Pan, | | |
| |V. Manuel P�rez, Silva, | | |
| |Smyth, Williams | | |
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 17-0
--------------------------------
|Ayes:|Fuentes, Harkey, |
| |Blumenfield, Bradford, |
| |Charles Calderon, Campos, |
| |Davis, Donnelly, Gatto, |
| |Hall, Hill, Lara, |
| |Mitchell, Nielsen, Norby, |
| |Solorio, Wagner |
| | |
--------------------------------
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.
AB 152
Page 2
2)Provides DPH with the authority to provide in-kind support and
award grants to support local assistance to local governments
and 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 10% credit for "qualified taxpayers" 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 for taxable years
beginning on or after January 1, 2012, and before January 1,
2017.
4)Defines "qualified taxpayer" as the person responsible for
planting a crop, managing the crop, and harvesting the crop
from land.
5)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.
6)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.
7)Requires, upon receipt of the donated fresh fruit or
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.
8)Requires, upon the request of the Franchise Tax Board (FTB),
the qualified taxpayer to provide a copy of the certification
to FTB. Requires, to the extent the data is available, FTB to
report to the Legislature on or before December 1, 2014, and
each December 1 thereafter regarding the utilization of this
tax credit. Makes this reporting requirement inoperative on
AB 152
Page 3
January 1, 2016 pursuant to existing law.
9)Repeals the provisions in this bill referenced in 3) through
8) above on December 1, 2017.
10)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.
11)Establishes the SEFAP Account in the Emergency Food
Assistance Program Fund (Fund), already in existing law, and
permits the SEFAP Account to receive General Fund (GF) 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.
12)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.
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
AB 152
Page 4
by those laws.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)A 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.
2)No additional costs associated with codifying SEFAP and
requiring that future funding, when available, be used to
purchase California grown and produced food.
3)Minor and absorbable costs within existing resources
associated with DPH investigating potential funding
opportunities.
COMMENTS : 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
AB 152
Page 5
the State.
The author has also included in this bill the granting of
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.
Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916)
319-2097
FN: 0001063