Bill Text: CA AB152 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Food banks: grants: voluntary contributions: income tax

Spectrum: Bipartisan Bill

Status: (Passed) 2011-10-06 - Chaptered by Secretary of State - Chapter 503, Statutes of 2011. [AB152 Detail]

Download: California-2011-AB152-Amended.html
BILL NUMBER: AB 152	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 15, 2011

INTRODUCED BY   Assembly Member Fuentes

                        JANUARY 18, 2011

   An act to add Section 131057.5 to the Health and Safety Code,
  and to amend Section 18853 of, and  to add
Sections 17053.88 and 23688 to  ,  the Revenue and
Taxation Code,   and to add Chapter 14.5 (commencing with Section
18995) to Part 6 of Division 9 of the Welfare and Institutions Code,
  relating to food banks.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 152, as amended, Fuentes. Food banks: grants: voluntary
contributions: income tax credits.
   (1) Existing law establishes the scope of functions and
responsibilities of the State Department of Public Health.
   This bill would additionally require the State Department of
Public Health to investigate and apply for federal funding
opportunities regarding promoting healthy eating and preventing
obesity, as specified, and, upon receipt of that funding, allow the
department to award grants and provide in-kind support to nonprofit
organizations that encourage specified healthy eating programs, as
provided. 
   (2) The Personal Income Tax Law 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 Emergency Food
Assistance Program Fund, to be allocated by the State Department of
Social Services for direct services by the Emergency Food Assistance
Program.  
   This bill would specify that emergency assistance food providers
under the Emergency Food Assistance Program only use those
contributions, as defined, received through the Emergency Food
Assistance Program Fund and other sources for the purchase, storage,
and transportation of food grown and produced in California.
 
   (2) Existing federal law, the Emergency Food Assistance Program,
is administered by the State Department of Social Services to provide
agricultural commodities to eligible households and recipient
agencies for distribution, as prescribed.  
   This bill would require the State Department of Social Services,
on and after January 1, 2012, to establish and administer the State
Emergency Food Assistance Program (SEFAP), to provide emergency food
and funding for the provision of emergency food, as provided. This
bill would create the State Emergency Food Assistance Program Account
and would, upon appropriation by the Legislature, allocate the
moneys in the account to SEFAP and require that it be used for the
purchase, storage, and transportation of food grown or produced in
California. 
   (3) The Personal Income Tax Law and the Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
   This bill would, under both laws, for taxable years beginning on
or after January 1, 2012, allow a credit in an amount equal to 10% of
the cost to be included in inventory costs, as specified, with
respect to the donation of  agricultural products 
 fresh fruits or vegetables  to food banks located in
California.
   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 finds and declares all of the
following:
   (a) On December 16, 2010, the State Board of Food and Agriculture
released the strategic plan for the future of the state's agriculture
and food system entitled "California Agricultural Vision: Strategies
for Sustainability," which defines 12 key strategies for California'
s agriculture and food sector, including a strategy to improve access
to safe, healthy food for all Californians in order to reduce hunger
and malnutrition, chronic diseases and health care costs associated
with poor diets, and expand markets for fruits, vegetables, grains,
dairy, and meat grown and produced in California.
   (b) On December 3, 2010, the California Strategic Growth Council
accepted the first report of the Health in All Policies Task Force,
established by Executive Order S-04-10 of Governor Arnold
Schwarzenegger on February 23, 2010, which includes a goal that every
California resident has access to healthy, affordable food at
school, at work, and in his or her neighborhood.
   (c) California has some of the most productive farmlands in the
world. California's farmlands produce more than 350 commodities,
specialty crops, and other food items. These farmlands are essential
for providing a healthy food supply and guarantee a natural resource
for California's future generations.
   (d) According to a University of California at Los Angeles survey
of Californians' health status, despite the state's agricultural
abundance, more than 8 million people live in a household where an
adult cannot always afford enough food.
   (e) Californians who experience hunger and food insecurity suffer
from poor physical and emotional health, as well as a diminished
capacity to learn and succeed in the workplace.
   (f) Access to healthy food is a basic human right. Low consumption
and lack of access to healthy, affordable food may result in higher
levels of obesity and other diet-related diseases.
   (g) One in every nine California children, one in three teens, and
over half of adults are overweight or obese. The obesity epidemic
affects virtually all age, income, educational, ethnic, and
disability groups in California, and rates are highest among
Californians of Latino, American-Indian, African American, and
Pacific Islander descent, Californians from lower income households,
and those with disabilities. More than 30 percent of low-income
California children and teens are overweight or obese.
   (h) The growing epidemic of overweight individuals is due to poor
diet and physical inactivity, putting growing numbers of Californians
at risk for type 2 diabetes, hypertension, heart disease, stroke,
and cancer. Increased risk of chronic disease has been attributed to
low fruit and vegetable intake in the United States, accounting for
$30 billion in associated health care costs in 2008 and 2009.
   (i) According to the federal Centers for Disease Control and
Prevention, in 2009 less than 20 percent of young people and 23
percent of all American adults reported consuming the minimum goal of
five servings of fruits and vegetables each day.
   (j) In California, partnerships between private and public
entities, among state and local government, local and regional
businesses, nonprofit organizations, health care institutions, food
banks, and other emergency food providers have helped to establish
community programs to combat obesity and related diseases, increase
access to healthy food, promote healthy eating, increase consumption
of fruits and vegetables, and encourage physical activity.
   (k) It is in the interest of the state to support programs that
promote increased access to healthy food and increased consumption of
California-grown fresh fruits and vegetables, whole grains, and
low-fat dairy in order to improve child and adult nutrition, promote
a strong, healthy workforce, and strengthen local and regional farm
economies.
   (l) With the significant fiscal challenges in California, it is
further in the interest of the state to maximize the availability of
federal funding in California in order to support programs and
activities that prevent obesity and hunger and increase access to
healthy food and consumption of healthy food.
   (m) It is further in the interest of the state to encourage and
facilitate partnerships between public and private entities to
promote a comprehensive approach to nutrition and wellness, including
activities that reduce obesity and related diseases, encourage
physical activity, and provide nutrition education in order to ensure
that all Californians have access to healthy food and can choose a
healthy diet.
  SEC. 2.  Section 131057.5 is added to the Health and Safety Code,
to read:
   131057.5.  (a) The State Department of Public Health shall
investigate and apply for federal funding opportunities regarding
promoting healthy eating and preventing obesity, including those
available under the Food, Conservation, and Energy Act of 2008
(Public Law 110-234), the American Recovery and Reinvestment Act of
2009 (Public Law 111-5), the federal Patient Protection and
Affordable Care Act (Public Law 111-148), and the Healthy,
Hunger-Free Kids Act of 2010 (Public Law 111-296).
   (b) Upon receipt of federal funding regarding promoting healthy
eating and preventing obesity, the State Department of Public Health
may, in its sole discretion, award grants and provide in-kind support
to nonprofit organizations that the department deems eligible 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 and urban and rural communities. The award of these
grants shall be exempt from the State Contract Act (Part 2
(commencing with Section 10100)) of Division 2 of the Public Contract
Code.
  SEC. 3.  Section 17053.88 is added to the Revenue and Taxation
Code, to read:
   17053.88.  (a) In the case of a taxpayer who donates 
agricultural products   fresh fruits or vegetables 
to a food bank located in California under Chapter 5 (commencing
with Section 58501) of Part 1 of Division 21 of the Food and
Agricultural Code, for taxable years beginning on or after January 1,
2012, there shall be allowed as a credit against the "net tax" (as
defined by Section 17039), an amount equal to 10 percent of the cost
included in inventory costs under Section 263A of the Internal
Revenue Code, or that would be required to be included in inventory
costs under Section 263A of the Internal Revenue Code but for the
exception for farming businesses contained in Section 263A(d) of the
Internal Revenue Code, with respect to those  agricultural
products   fresh fruits or vegetables  .
   (b) A married couple or domestic partners may receive only one
credit under this section. If the spouses or domestic partners file
separate returns, the credit may be taken by either or equally
divided between them. With the exception of spouses or domestic
partners, if two or more taxpayers share in the expenses eligible for
the credit provided by this section, each taxpayer shall be eligible
to receive the tax credit in proportion to his or her respective
share of the expense paid or incurred. In the case of a partnership,
the tax credit may be divided between the partners pursuant to a
written partnership agreement in accordance with Chapter 10
(commencing with Section 17851), which includes Section 704 of the
Internal Revenue Code concerning substantial economic effect,
relating to a partner's distributive share.
   (c) If the credit allowed by this section is claimed by the
taxpayer, any deduction otherwise allowed under this part for that
amount of the cost paid or incurred by the taxpayer that is eligible
for the credit shall be reduced by the amount of the credit provided
in subdivision (a).
   (d) Upon receipt of the donated  agricultural product
  fresh fruits or vegetables  , the nonprofit
organization shall provide a certificate to the donor. The
certificate shall contain a statement signed and dated by a person
authorized by that organization that the product is donated under
Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of
the Food and Agricultural Code. The certificate shall also contain
the type and quantity of product donated, the name of donor or
donors, and the name and address of the donee. Upon the request of
the Franchise Tax Board, the taxpayer shall provide a copy of the
certification to the Franchise Tax Board.
   (e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and for the six succeeding years if
necessary, until the credit has been exhausted.
   (f) To the extent that data are available, the Franchise Tax Board
shall report annually to the Legislature regarding the utilization
of the credit authorized by this section.
   (g) (1) A report to be submitted pursuant to subdivision (f) shall
be submitted in compliance with Section 9795 of the Government Code.

   (2) The requirement for submitting a report imposed under
subdivision (f) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code. 
  SEC. 4.    Section 18853 of the Revenue and
Taxation Code is amended to read:
   18853.  All money transferred to the Emergency Food Assistance
Program Fund, upon appropriation by the Legislature, shall be
allocated as follows:
   (a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
   (b) (1) To the State Department of Social Services for allocation
to the Emergency Food Assistance Program. Funds shall be allocated
for direct services provided by the Emergency Food Assistance Program
and may not be used for the department's administrative costs. Funds
received by emergency food assistance providers derived from
contributions made on or after January 1, 2012, shall be used for the
purchase, storage, and transportation of food grown and produced in
California.
   (2) For purpose of this subdivision, "contributions" means
voluntary contributions made pursuant to this article, state support,
and federal grants. 
   SEC. 5.   SEC. 4.   Section 23688 is
added to the Revenue and Taxation Code, to read:
   23688.  (a) In the case of a taxpayer who donates 
agricultural products   fresh fruits or vegetables 
to a food bank located in California under Chapter 5 (commencing
with Section 58501) of Part 1 of Division 21 of the Food and
Agricultural Code, for taxable years beginning on or after January 1,
2012, there shall be allowed as a credit against the "tax" (as
defined by Section 23036), an amount equal to 10 percent of the cost
included in inventory costs under Section 263A of the Internal
Revenue Code, or that would be required to be included in inventory
costs under Section 263A of the Internal Revenue Code, but for the
exception for farming businesses contained in Section 263A(d) of the
Internal Revenue Code, with respect to those  agricultural
products   fresh fruits or vegetables  .
   (b) If two or more taxpayers share in the expenses eligible for
the credit provided by this section, each taxpayer shall be eligible
to receive the tax credit in proportion to its respective share of
the expense paid or incurred. In the case of a partnership, the tax
credit may be divided between the partners pursuant to a written
partnership agreement in accordance with Chapter 10 (commencing with
Section 17851), which includes Section 704 of the Internal Revenue
Code concerning substantial economic effect, relating to a partner's
distributive share.
   (c) If the credit allowed by this section is claimed by the
taxpayer, any deduction otherwise allowed under this part for that
amount of the cost paid or incurred by the taxpayer that is eligible
for the credit shall be reduced by the amount of the credit provided
in subdivision (a).
   (d) Upon receipt of the donated  agricultural product
  fresh fruits or vegetables  , the nonprofit
organization shall provide a certificate to the donor. The
certificate shall contain a statement signed and dated by a person
authorized by that organization that the product is donated under
Chapter 5 (commencing with Section 58501) of Part 1 of Division 21 of
the Food and Agriculture Code. The certificate shall also contain
the type and quantity of product donated, the name of donor or
donors, and the name and address of the donee. Upon the request of
the Franchise Tax Board, the taxpayer shall provide a copy of the
certification to the Franchise Tax Board.
   (e) In the case where the credit allowed by this section 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.
   (f) To the extent that data are available, the Franchise Tax Board
shall report annually to the Legislature regarding the utilization
of the credit authorized by this section.
   (g) (1) A report to be submitted pursuant to subdivision (f) shall
be submitted in compliance with Section 9795 of the Government Code.

   (2) The requirement for submitting a report imposed under
subdivision (f) is inoperative on January 1, 2016, pursuant to
Section 10231.5 of the Government Code.
   SEC. 5.    Chapter 14.5 (commencing with Section
18995) is added to Part 6 of Division 9 of the   Welfare and
Institutions Code   , to read:  
      CHAPTER 14.5.  THE STATE EMERGENCY FOOD ASSISTANCE PROGRAM


   18995.  (a) On and after January 1, 2012, the State Department of
Social Services shall establish and administer the State Emergency
Food Assistance Program (SEFAP). The SEFAP shall 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.
   (b) The State Emergency Food Assistance Program Account is hereby
established in the Emergency Food Assistance Program Fund established
pursuant to Section 18852 of the Revenue and Taxation Code, and may
receive General Fund moneys, federal funds, and voluntary donations
or contributions. All moneys received by the State Emergency Food
Assistance Program Account shall, upon appropriation by the
Legislature, be allocated to the State Department of Social Services
for allocation to the SEFAP and shall be used for the purchase,
storage, and transportation of food grown or produced in California.
Moneys in the fund shall not be used for the administrative costs of
the State Department of Social Services'. 
         
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