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AB-2335 Nutrition Incentive Matching Grant Program: Healthy Stores Refrigeration Grant Program.(2017-2018)

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Date Published: 06/12/2018 09:00 PM
AB2335:v95#DOCUMENT

Amended  IN  Senate  June 12, 2018
Amended  IN  Assembly  May 25, 2018
Amended  IN  Assembly  April 02, 2018
Amended  IN  Assembly  March 08, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2335


Introduced by Assembly Member Ting
(Coauthor: Assembly Member Bonta)

February 13, 2018


An act to amend Sections 49012, 49013, and 49014 of, and to add Sections 49015 and 49016 to, the Food and Agricultural Code, relating to food and agriculture.


LEGISLATIVE COUNSEL'S DIGEST


AB 2335, as amended, Ting. Nutrition Incentive Matching Grant Program: Healthy Stores Refrigeration Grant Program.
Existing law establishes the Office of Farm to Fork within the Department of Food and Agriculture, and requires the office, to the extent that resources are available, to work with various entities, including, among others, the agricultural industry and other organizations involved in promoting food access, to increase the amount of agricultural products available to underserved communities and schools in the state. Existing law requires the office to, among other things, identify urban and rural communities that lack access to healthy food, and to coordinate with local, state, and federal agencies to promote and increase awareness of programs that promote greater food access.
Existing law establishes the Nutrition Incentive Matching Grant Program in the Office of Farm to Fork, and creates the Nutrition Incentive Matching Grant Account in the Department of Food and Agriculture Fund to collect matching funds received from a specified federal grant program and funds from other public and private sources. Under the program, the department is required to award moneys in the account to qualified entities, as defined, to encourage the purchase and consumption of California fresh fruits, nuts, and vegetables by nutrition benefit clients, as defined. Existing law requires that grants only be provided upon the deposit of sufficient funds, as specified in the federal Food Insecurity Nutrition Incentive Grant Program application, into the Nutrition Incentive Matching Grant Account. A violation of the laws governing fruit, nut, and vegetable standards is a crime.
This bill would instead require grants to be provided upon the deposit of sufficient funds, including from an a successful application of federal grant funding, if available, into the Nutrition Incentive Matching Grant Account. The bill would require matching funds to be collected from the specified federal grant program only if those funds are available. The bill would include, in the definition of “qualified entities,” community-supported agriculture programs and farm stands, as defined. The bill would, notwithstanding any other law, authorize the department to provide grant funds to a grantee in advance of the expenditure of funds by the grantee for implementation of the Nutrition Incentive Matching Grant Program, instead of in the form of a reimbursement after the expenditure of funds for that program, in an amount equal to or less than 50% of the grant amount provided in the grantee’s grant agreement, if certain conditions are met.
The bill would create the Healthy Stores Refrigeration Grant Program in the department Account in the Department of Food and Agriculture Fund to collect funds for the Healthy Stores Refrigeration Grant Program that would be created by this bill. The bill would require funds to be deposited into the fund upon the appropriation of funds, including from an a successful application of federal grant funding, if available, by the Legislature for purposes of the Healthy Stores Refrigeration Grant Program. The bill would require the department to administer the Healthy Stores Refrigeration Grant Program and to award grants to qualified entities, as defined, for the purchase of an energy-efficient refrigeration unit or units by a small business or corner store that is located in a food desert. The bill would require a small business or corner store that purchases a refrigeration unit with grant funds to stock the unit with California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods, and to offer those items for sale. The bill would authorize not more than a city, county, city and county, or nonprofit entity that is awarded a grant to use up to 10% of Healthy Stores Refrigeration Grant Program grant funds to be used for technical assistance. The bill would authorize the department to establish regulations, minimum standards, funding schedules, and procedures for awarding grants to qualified entities, and to adopt any other regulations to implement and administer the Healthy Stores Refrigeration Grant Program. The bill would provide that certain provisions imposing criminal liability do not apply for a violation of these provisions or any regulation adopted to administer these provisions. The bill would provide that receipt of a grant under the Healthy Stores Refrigeration Grant Program or the Nutrition Incentive Matching Grant Program does not preclude the recipient from being eligible to receive a grant under the other program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Since its inception in 2009, Market Match, the state’s largest nutrition incentive program, has encouraged the purchase and consumption of California fresh fruits, nuts, and vegetables by directly linking California specialty crop producers with nutrition benefit clients and doubling the purchasing value of the nutrition assistance received by nutrition benefit clients when they purchase California fresh fruits, nuts, and vegetables.
(b) Market Match dollars provide incentives for new consumers to visit local farmers’ markets and purchase healthy produce, benefiting both their health and the health of local economies.
(c) The Market Match program has acted as an economic stimulus to local agricultural economies throughout the state by increasing the number of loyal customers, and the purchasing power of those customers, in areas including food deserts, where California fresh fruits, nuts, and vegetables are scarce.
(d) Data shows that the Market Match program has completed over 300,000 incentive transactions at 300 participating sites in over 31 counties.
(e) Data shows that Market Match dollars have had a six-fold return on investment (ROI) in farmers’ market sales.
(f) The Pacific Coast Farmers’ Market Association’s business analysis of ROIs for Market Match programs in 2012 held in various regions and cities showed the following rates of ROI throughout the state:
(1) The East Bay region and the City and County of San Francisco: 132 percent ROI.
(2) The City of Long Beach: 257 percent ROI.
(3) The City of Huntington Park: 403 percent ROI.
(4) The City of Davis: 390 percent ROI.
(5) The City of Woodland: 576 percent ROI.
(6) The City of Monterey: 717 percent ROI.
(g) Market Match is currently utilizing $3 million per year to service 300 sites, and demand is outstripping supply of available matching funds.
(h) Scaling up the Market Match program to serve 600 farmers’ markets, farm stands, or community supported agriculture programs throughout the state would be beneficial to the health of local economies and the state economy while simultaneously improving the health of the most vulnerable families throughout California.
(i) The statewide Nutrition Incentive Matching Grant Program (Chapter 13 (commencing with Section 49010) of Division 17 of the Food and Agricultural Code), modeled after the successful experience of the Market Match program, helps to draw down federal funds and attract community-based philanthropy to further maximize access to fresh healthy foods and stimulate local economies in a more equitable cross section of communities.

SEC. 2.

 Section 49012 of the Food and Agricultural Code is amended to read:

49012.
 For purposes of this chapter, the following definitions shall apply:
(a) “Consumer incentive program” means a program administered by a qualified entity that increases the purchasing value of a nutrition benefit client’s benefits when the benefits are used to purchase California fresh fruits, nuts, and vegetables.
(b) “Nutrition benefit client” means a person who receives services or payments through any of the following:
(1) California Special Supplemental Nutrition Program for Women, Infants, and Children, as described in Section 123280 of the Health and Safety Code.
(2) CalWORKs program, as described in Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of the Welfare and Institutions Code.
(3) CalFresh, as described in Section 18900.2 of the Welfare and Institutions Code.
(4) Implementation of the federal WIC Farmers’ Market Nutrition Act of 1992 (Public Law 102-314).
(5) The Senior Farmers’ Market Nutrition Program, as described in Section 3007 of Title 7 of the United States Code.
(6) Supplemental Security Income or State Supplementary Payment, as described in Section 1381 and following of Title 42 of the United States Code.
(c) “Qualified entity” means either of the following:
(1) A certified farmers’ market, as described in Section 47004, an association of certified producers, a community-supported agriculture program, as defined in Section 47060, a farm stand, as defined in Section 47050, or a nonprofit organization representing a collective or association of certified producers that is authorized by the United States Department of Agriculture to accept federal Supplemental Nutrition Assistance Program (Chapter 51 (commencing with Section 2011) of Title 7 of the United States Code) benefits from recipient purchasers at a farmers’ market. Certified producers shall be certified by the county agricultural commissioner pursuant to Section 47020.
(2) A small business, as defined in Section 14837 of the Government Code, that sells California grown fresh fruits, nuts, and vegetables and that is authorized to accept nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b).

SEC. 3.

 Section 49013 of the Food and Agricultural Code is amended to read:

49013.
 (a) The Nutrition Incentive Matching Grant Account is hereby created in the Department of Food and Agriculture Fund to collect matching funds from the federal Food Insecurity Nutrition Incentive Grant Program (7 U.S.C. Sec. 7517), if available, and from other public and private sources, to provide grants under the Nutrition Incentive Matching Grant Program. The Nutrition Incentive Matching Grant Program shall provide grants upon the deposit of sufficient funds, including from an a successful application of federal grant funding, if available, into the Nutrition Incentive Matching Grant Account.
(b) Notwithstanding any other law, the department may provide grant funds to a grantee in advance of the expenditure of funds by the grantee for implementation of the Nutrition Incentive Matching Grant Program, instead of in the form of a reimbursement after the expenditure of funds for that program, in an amount equal to or less than 50 percent of the grant amount provided in the grantee’s grant agreement pursuant to subdivision (a) and Section 49014, if both of the following conditions are met:
(1) The grantee has an operating budget of no more than five hundred thousand dollars ($500,000).
(2) The department makes a determination, based on a review of the grantee, that the grantee has modest reserves and potential cashflow problems and that an advance payment is essential for the effective implementation of the Nutrition Incentive Matching Grant Program by the grantee.

SEC. 4.

 Section 49014 of the Food and Agricultural Code is amended to read:

49014.
 The Nutrition Incentive Matching Grant Program shall be administered in accordance with all of the following:
(a) Subject to the regulations adopted by the National Institute of Food and Agriculture in the United States Department of Agriculture in accordance with the federal Agricultural Act of 2014 (Public Law 113-79), or any subsequent federal agricultural act, moneys in the Nutrition Incentive Matching Grant Account shall be awarded in the form of grants to qualified entities for consumer incentive programs.
(b) (1) The Office of Farm to Fork shall establish minimum standards, funding schedules, and procedures for awarding grants in consultation with the United States Department of Agriculture and other interested stakeholders, including, but not limited to, the State Department of Public Health, State Department of Social Services, organizations with expertise in nutrition benefit programs or consumer incentive programs, small business owners that may qualify as a qualified entity, and certified farmers’ market operators.
(2) The department shall not use more than one-third of the Nutrition Incentive Matching Grant Program funds for consumer incentive programs with qualified entities described in paragraph (2) of subdivision (c) of Section 49012 that are not otherwise qualified pursuant to paragraph (1) of that subdivision.
(c) The department shall give priority in awarding grants to qualified entities based on, but not limited to, the following:
(1) The service of an area of population currently not being served by a consumer incentive program.
(2) The degree of the existence of the following demographic conditions and the character of the communities in which sales of California grown fresh fruits, nuts, and vegetables are made to the public by authorized vendors operating in conjunction with a qualified entity:
(A) The number of people who are eligible for, or receiving, nutrition benefit program services.
(B) The prevalence of diabetes, obesity, and other diet-related illnesses.
(C) The availability of access to fresh fruits, nuts, and vegetables.
(3) Demonstrated efficiency in the administration of a consumer incentive program.

SEC. 5.

 Section 49015 is added to the Food and Agricultural Code, to read:

49015.
 (a) For purposes of this section, the following definitions shall apply:
(1) “Corner store” means a small-scale store or grocery store, either an independent store or a chain store, that sells a limited selection of foods and other products, and that is located in a food desert in a rural, urban, or suburban area. “Corner store” includes, among others, stores that are not located on a corner and stores commonly referred to as convenience stores or neighborhood stores.
(2) “Food desert” means a low-income census tract with low access to a supermarket or large grocery store.
(A) For purposes of this paragraph, a census tract has “low access to a supermarket or large grocery store” if at least 500 persons or 33 percent of the population lives more than one mile, for nonrural areas, or more than 10 miles, for rural areas, from a supermarket or large grocery store.
(B) For purposes of this paragraph, a census tract is “low-income” if the income of at least 20 percent of the population is at or below the federal poverty level by family size, or if the median family income of the population is at or below 80 percent of the median family income of surrounding census tracts.
(3) “Minimally processed prepared food” means food that has not been physically or chemically processed in a way that fundamentally alters the raw product, and food that has been processed only to separate the whole, intact food into component parts.
(4) “Qualified entity” means any of the following:
(A) A small business or corner store.
(B) A city, county, or city and county with representative low-income census tracts, as described in subparagraph (B) of paragraph (2), that contain small businesses or corner stores.
(C) A nonprofit entity with demonstrated efficiency in the administration of a consumer incentive program, as defined in subdivision (a) of Section 49012, that would apply for grants on behalf of a small business or corner store or a collection of small businesses or corner stores.
(5) “Recipient” means a small business or corner store that is provided funds pursuant to subdivision (c).
(6) “Small business” means a small business, as defined in Section 14837 of the Government Code, that is authorized to accept nutrition benefits from any of the programs listed in paragraphs (1) to (6), inclusive, of subdivision (b) of Section 49012, and is located within a food desert.
(b) The Healthy Stores Refrigeration Grant Program shall be Account is hereby created in the department Department of Food and Agriculture Fund to collect funds for the Healthy Stores Refrigeration Grant Program. Funds shall be deposited into the Healthy Stores Refrigeration Grant Account upon the appropriation of funds, including from an a successful application of federal grant funding, if available, by the Legislature for purposes of the Healthy Stores Refrigeration Grant Program.
(c) (1) Upon an appropriation of funds as specified in subdivision (b), the department shall administer the Healthy Stores Refrigeration Grant Program and, pursuant to the program, award grants to qualified entities. If a city, county, or city and county is awarded a grant pursuant to this subdivision, it shall provide grant funds to applicant small businesses and corner stores that are located in food deserts.
(2) When awarding grants, the department shall consider giving priority to qualified entities based on, but not limited to, demonstrated efficiency and capability in the administration of a consumer incentive program, as defined in subdivision (a) of Section 49012.
(3) The department may establish regulations, minimum standards, funding schedules, and procedures for awarding grants to qualified entities, and may adopt any other regulations to implement and administer the Healthy Stores Refrigeration Grant Program.
(d) A recipient shall be required to do all of the following:
(1) Use the grant funds provided pursuant to subdivision (c) exclusively to purchase an energy-efficient refrigeration unit or units.
(2) Stock the refrigeration unit or units purchased with Healthy Stores Refrigeration Grant Program grant funds only with California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods.
(3) Offer for sale California-grown fresh fruits, nuts, vegetables, and minimally processed prepared foods.
(e) A recipient shall be subject to reporting and auditing requirements, as determined by the department.
(f) No more than A city, county, city and county, or nonprofit entity that is awarded a grant pursuant to paragraph (1) of subdivision (c) may use up to 10 percent of Healthy Stores Refrigeration Grant Program funds may be used for technical assistance.
(g) Sections 9 and 42971 do not apply for a violation of this section or any regulation adopted pursuant to paragraph (3) of subdivision (f). (c).

SEC. 6.

 Section 49016 is added to the Food and Agricultural Code, to read:

49016.
 The receipt of a grant under either program established in this chapter shall not preclude an entity from being eligible to receive a grant under the other program.