BILL ANALYSIS Ó
AB 2246
Page 1
Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON HEALTH
William W. Monning, Chair
AB 2246 (John A. Pérez) - As Amended: March 29, 2012
SUBJECT : Public health: food access.
SUMMARY : Requires the California Healthy Food Financing
Initiative (CHFFI) Council, by March 31, 2013, to establish and
maintain an Internet Website with prescribed information,
including information on actions that the CHFFI Council has
taken and funding sources that are available to support access
to healthy foods. Specifically, this bill :
1)Requires the CHFFI Council to establish and maintain an
Internet Website, by March 31, 2013.
2)Requires the Internet Website to include, but not be limited
to, the following information:
a) Actions taken by the CHFFI Council;
b) Funding sources that are available to support access to
healthy foods, including loans and grants from public,
private, or philanthropic sources, and how to obtain these
sources of funding;
c) Interagency activities among the State Treasurer's
Office, the California Department of Food and Agriculture
(CDFA), the California Health and Human Services Agency,
and the Labor and Workforce Department Agency that focus on
benefiting underserved communities and increasing access to
healthy foods; and,
d) Resources and links to other Internet Web sites with
information on food deserts and increasing access to
healthy foods.
EXISTING LAW :
1)Requires CDFA to promote and protect the agriculture industry
of the state. Requires, by July 1, 2012, the Secretary of
CDFA to prepare recommendations, to be presented upon request
to the Legislature, regarding actions that need to be taken to
promote food access in the state.
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2)Establishes, until July 1, 2017, CHFFI to expand access to
nutritious foods in underserved, urban, and rural communities.
3)Establishes the CHFFI Council and the CHFFI Fund, within the
State Treasurer's Office, to implement the CHFFI. Requires
the CHFFI Council, among other things, to develop financing
options using public or private moneys and resources to
support access to healthy foods.
FISCAL EFFECT : This bill has not yet been heard by a fiscal
committee.
COMMENTS :
1)THE PURPOSE OF THIS BILL . According to the author, residents
of communities referred to as food deserts do not have access
to a selection of healthy foods such as, fruits, vegetables or
dairy products. As a result, the author maintains, residents
of these geographic areas generally have higher incidences of
certain types of diseases, including: diabetes, cancer,
obesity, heart disease, and premature death. The author
maintains that the CHFFI is mirrored after successful healthy
food financing 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. The author asserts that requiring the
CHFFI Council to establish a Website will provide an on-line
informational resource regarding funding opportunities and
state agency actions for those interested in reducing
California's food deserts and increasing access to healthy
foods in underserved communities.
2)FOOD DESERTS . The U.S. Congress requested in the Food
Conservation and Energy Act of 2008, that the U.S. Department
of Agriculture (USDA) study food deserts and issue their
findings. According to their report "Access to Affordable and
Nutritious Food: Measuring and Understanding their
Consequences," a food desert is a food environment
unsupportive of health; it is defined by barriers which
restrict access to healthy foods such as, lack of access to
food retailers, availability of nutritious foods, or
affordability of foods.
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Research indicates that land-use policies that facilitate
development of predominately wealthy and suburban
neighborhoods have altered the distribution of food stores.
In the interest of profitability, larger supermarkets have
followed this trend and are most prevalent in suburban
neighborhoods. Food supply within inner-cities and some rural
areas includes less variety and denies some residents the
benefits of healthy foods at affordable prices. Remaining
food retailers in these areas are gas stations, convenience
stores, and liquor stores. A diet based on foods from these
locations consists primarily of processed foods high in
calories, sugars, salt, fat, and artificial ingredients.
Health disparities related to food access and consumption are
associated with residential segregation, low incomes, and
neighborhood deprivation. Research suggests that the problem
of food deserts goes beyond health; poor communities are cut
off from the economic development opportunities that arise
from a local grocery store including creating new jobs and
opportunities, boosting a community's physical health and
well-being, attracting other small businesses, and supporting
surrounding residential real estate values.
3)CHFFI . According to the State Treasurer's Office, CHFFI, a
public-private partnership program, was created to increase
access to healthy foods in underserved communities and inspire
innovation in healthy food retailing. CHFFI was established
in October 2011 when Governor Jerry Brown signed Assembly Bill
581(John A. Peréz), Chapter 505, Statutes of 2011. The CHFFI
Fund within the State Treasurer's Office is comprised of
federal, state, philanthropic, and private funds. These funds
will provide financing for grocery stores and other forms of
healthy food retail and distribution by providing capital to
eligible applicants. Additionally, the program is aimed to
receive federal dollars as part of President Barack Obama's
federal Healthy Food Financing Initiative (HFFI) - a
partnership between the USDA, Department of Health and Human
Services, and Department of the Treasury. According to the
State Treasurer's Office, in his fiscal year 2012 budget
proposal, President Obama called for a $345 million investment
in HFFI.
4)SUPPORT . The California State Association of Counties and the
American Planning Association write that they support efforts
to increase the number of fresh grocery stores, urban and
rural farm stands, farmer's markets, and community gardens in
underserved communities. By providing information and updates
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on the CHFFI Council's progress toward this goal - including
funding and grant opportunities - the new Website will serve
as an important tool in the state's effort to promote access
to healthy food.
5)PREVIOUS LEGISLATION .
a) AB 581 creates the CHFFI, the CHFFI Fund and the CHFFI
Council, for the purpose of expanding access to healthy
foods in underserved communities. Requires the Secretary
of CDFA, by July 1, 2012, to prepare recommended actions to
be taken to promote food access within California.
Authorizes CDFA to create an Advisory Group, as specified.
This authority remains in effect until January 1, 2017.
b) AB 2720 (John A. Pérez) of 2010, was substantially
similar to AB 581 and was vetoed during that year's budget
negotiations by Governor Schwarzenegger with the following
veto message: "While my Administration shares the same
goals as the author when it comes to promoting healthy and
affordable food access for low-income communities in
California, the HFFI has not yet been acted on by Congress.
Unless and until those important federal funding details
are known, this bill is both premature and unnecessary."
6)DOUBLE REFERRAL This bill has been double-referred. Should
this bill pass out of this committee, it will be referred to
the Assembly Agriculture Committee.
7)TECHNICAL AMENDMENT . On page 3; lines 14-15 should read
"Labor and Workforce Development Agency" not "Labor and
Workforce Department Agency."
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees,
AFL-CIO
American Planning Association, California Chapter
California State Association of Counties
Opposition
None on file.
AB 2246
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Analysis Prepared by : Tanya Robinson-Taylor / HEALTH / (916)
319-2097