California Assembly Bill AB2720 Amended / Bill

 BILL NUMBER: AB 2720AMENDED BILL TEXT AMENDED IN SENATE AUGUST 10, 2010 AMENDED IN ASSEMBLY MAY 12, 2010 INTRODUCED BY Assembly Members John A. Perez and Bass  (   Principal coauthor:   Senator   Alquist   )  (Coauthors: Assembly Members Galgiani and Hall) FEBRUARY 19, 2010 An act to  amend Section 104601   add Article 3 (commencing with Section 104660) to Chapter 2 of Part 3 of Division 103  of the Health and Safety Code, relating to public health. LEGISLATIVE COUNSEL'S DIGEST AB 2720, as amended, John A. Perez. Public health: food access. Existing law requires the Department of Food and Agriculture, headed by the Secretary of Food and Agriculture, to promote and protect the agricultural industry of the state. Existing law, until January 1, 2011, requires the State Department of Public Health to develop a "Healthy Food Purchase" pilot program to increase the sale and purchase of fresh fruits and vegetables in low-income communities, as specified. This bill would  create the California Healthy Food Financing Initiative. It would  require, by July 1, 2011, the Department of Food and Agriculture, in consultation with the State Department of Public Health and the State Department of Social Services, to  provide   prepare  recommendations  , to be presented upon request  to the Legislature  ,  regarding actions that need to be taken to promote food access in the state. It would also require the Department of Food and Agriculture to coordinate efforts to  implement the initiative and  maximize the funding opportunities provided by the federal 2010 Healthy Food Financing Initiative.  This bill would revise and recast the "Healthy Food Purchase" pilot program to require the State Department of Public Health to utilize the maximum amount of federal funds available to further the purposes of the program. It would authorize the department to award grants and provide in-kind support to nonprofit corporations to encourage the sale and consumption of fresh fruits and vegetables, as specified. It would extend to January 1, 2015, the repeal date of the program.   The bill would create the California Healthy Foods Financing Initiative Fund in the State Treasury, to be comprised of federal, state, and private funds for the purpose of expanding access to healthy foods in underserved communities and, to the extent practicable, to leverage other funding, as specified. Moneys in the fund shall be expended upon appropriation by the Legislature.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature hereby finds and declares all of the following: (a) California has some of the most productive farmlands in the world. California's farmlands produce more than 350 commodities and food items. These farmlands require protection and efficient operations to maintain our food supply and guarantee a natural resource for California's future generations. (b) California's cultural heritage provides the basis for a variety of food items that are available to the state's 36 million residents. (c) The production and preparation of food needs to be conducted in a healthy and humane manner. (d) Access to  health   healthy  food items is a basic human right. Lack of access to healthy, affordable food items  ,  may result in higher levels of obesity and other diet-related diseases. Communities without access to affordable, quality, and nutritious foods are known as food deserts. (e) Opportunities for increasing the number of grocery stores, urban  and rural  farm stands, farmers' markets,  community gardens, direct farm to institution,  and direct farmer to consumer marketing activities in underserved communities should be actively pursued and fostered to ensure that all Californians have access to healthy foods.  SEC. 2.   (a) By July 1, 2011, the Department of Food and Agriculture, in consultation with the State Department of Public Health and the State Department of Social Services, shall provide recommendations to the Legislature regarding actions that need to be taken to promote food access in the state. (b) The Department of Food and Agriculture, in consultation with the State Department of Public Health and the State Department of Social Services, shall coordinate efforts to maximize the funding opportunities provided by the federal 2010 Healthy Food Financing Initiative. This national initiative is intended to expand access to nutritious foods in underserved urban and rural communities and eliminate food deserts across the country within seven years.   SEC. 3.   Section 104601 of the Health and Safety Code is amended to read: 104601. (a) The department, in consultation with the Department of Food and Agriculture, shall develop a "Healthy Food Purchase" pilot program to increase the sale and purchase of fresh fruits and vegetables in low-income communities. (b) The department, in consultation with the Department of Food and Agriculture, shall design the program to include the following two components: (1) Strategies aimed at small grocers in targeted low-income neighborhoods to increase the offerings of fresh fruits and vegetables in those communities. In selected pilot program communities, the department shall provide targeted food retailers with support or assistance to obtain refrigerated produce display cases through the assessment of the feasibility of a variety of financing methods, including, but not limited to, leasing, lending, small business and economic development support, and other time-limited strategies. The department shall also provide technical assistance to targeted retailers on the purchase, storage, marketing, and display of fresh produce. The department shall use available federal funds for this technical assistance, where appropriate. (2) Strategies aimed at food stamp recipients to increase their purchase of fresh fruits and vegetables by making those products more affordable, including the development and implementation of financial incentives. The department, in consultation with the State Department of Social Services, shall seek any necessary federal government approvals to allow use of the Food Stamp Electronic Benefits Card, as provided in Chapter 3 (commencing with Section 10065) of Part 1 of Division 9 of the Welfare and Institutions Code, to provide those incentives, and to implement the pilot program. (c) The department may award grants and provide in-kind support to nonprofit corporations that the department deems eligible to encourage the sale and consumption of fresh fruits and vegetables pursuant to the program. The award of these grants shall be exempt from the State Contract Act (Part 2 (commencing Section 10100) of Division 2 of the Public Contract Code). (d) In developing the pilot program, the department shall design the program to utilize the maximum amount of federal funds available to further the purposes of the program, including federal funds made available pursuant to the federal Food, Conservation, and Energy Act of 2008 (Public Law 110-234, Section 4141). (e) The department shall seek all necessary approvals to establish the pilot program, and shall apply for available federal matching funds to support the work of the pilot program. (f) The department shall develop, in consultation with the United States Department of Agriculture's Economic Research Service, a process for evaluating the effectiveness of the pilot program. The evaluation shall examine the impact of the various strategies employed in the pilot program on the purchase of fresh produce and on any increase in retailer space devoted to the sale of fresh fruits and vegetables, and the effect this has on retailer profitability. The evaluation also shall test alternatives to the reliance on uniform product codes for identification of fresh produce deemed eligible for financial incentives. To the extent permitted by federal law and any conditions imposed upon private funding for the program, the evaluation shall assess the effectiveness of combining the strategies to increase offerings of fresh fruits and vegetables described in paragraph (10) of subdivision (b) with the strategies for increasing affordability of fresh fruits and vegetables in paragraph (2) of that subdivision. (g) The department may, on or after July 1, 2009, implement this article to the extent that the Department of Finance determines that there are sufficient funds available for that purpose from any source, including state funds, federal funds, excluding federal block grant funds awarded to California pursuant to the Specialty Crops Competitiveness Act of 2004 (Public Law 108-465), and future awards of block grant funds intended to improve the competitiveness of the specialty crop industry, or funds from grants or private donations. (h) Notwithstanding any other provision of law, no General Fund moneys shall be used to fund the program. (i) This article shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.   SEC. 2.   Article 3 (commencing with Section 104660) is added to Chapter 2 of Part 3 of Division 103 of the   Health and Safety Code   , to read:   Article 3. California Healthy Food Financing Initiative 104660. This article shall be known, and may be cited, as the California Healthy Food Financing Initiative. 104661. (a) By July 1, 2011, the Department of Food and Agriculture, in consultation with the State Department of Public Health and the State Department of Social Services, shall prepare recommendations, to be presented upon request of the Legislature, regarding actions that need to be taken to promote food access in the state. (b) The Secretary of Food and Agriculture may establish an advisory group to assist the agencies in complying with the requirements of subdivision (a). If established, the advisory group shall consist of representatives from the Legislature, food policy advocates, financial institutions, food systems researchers, representatives from the agricultural industry, and nonprofit organizations with expertise in this area. 104662. The Department of Food and Agriculture, in consultation with the State Department of Public Health, the State Department of Social Services, and the Treasurer shall implement the California Healthy Food Financing Initiative, including, but not limited to, coordinating efforts to maximize the funding opportunities provided by the federal 2010 Healthy Food Financing Initiative. This national initiative is intended to expand access to nutritious foods in underserved urban and rural communities and eliminate food deserts across the country within seven years. 104663. (a) There is hereby established in the State Treasury the California Healthy Food Financing Initiative Fund, which shall be comprised of federal, state, and private funds for the purpose of expanding access to healthy foods in underserved communities. (b) Moneys in the fund shall be expended upon appropriation by the Legislature, and shall be used, to the extent practicable, to leverage other funding, including, but not limited to, new markets tax credits, federal and foundation grant programs, incentives available to designated enterprise zones, and funding from private sector financial institutions pursuant to the federal Community Reinvestment Act.