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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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BILL NUMBER: AB 152	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 14, 2011
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  MARCH 15, 2011

INTRODUCED BY   Assembly Member Fuentes
   (Coauthors: Assembly Members Achadjian and Harkey)
   (  Coauthor:   Senator  
Padilla   Coauthors:   Senators  
Hancock   and Padilla  )

                        JANUARY 18, 2011

   An act to add Section 131057.5 to the Health and Safety Code, to
add and repeal Sections 17053.88 and 23688 of 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 support
local assistance to local governments and nonprofit organizations
that encourage specified healthy eating programs, as provided.
   (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 those moneys 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, and before January 1, 2017, allow  ,
  without regard to the taxpayer's method of accounting,
 a credit for qualified taxpayers, as defined, in an amount
equal to 10% of the cost  to   that would
otherwise  be included in inventory costs, as specified, with
respect to the donation of fresh fruits or fresh 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 federal Food, Conservation, and Energy Act of
2008 (Public Law 110-234), the federal 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
federal 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, provide in-kind support and award grants
to support local assistance to local governments and 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 qualified taxpayer who donates
fresh fruits or fresh 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, and before January 1, 2017,
there shall be allowed  , without regard to the taxpayer's method
of accounting,  as a credit against the "net tax" (as defined
by Section 17039), an amount equal to 10 percent of the cost 
that would otherwise be  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 fresh fruits or fresh vegetables.
   (b) For purposes of this section, "qualified taxpayer" means the
person responsible for planting a crop, managing the crop, and
harvesting the crop from land.
   (c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
   (d) The donor shall provide to the nonprofit organization the
estimated value of the donated fresh fruits or fresh vegetables and
information regarding the origin of where the donated fruits or
vegetables were grown, and upon receipt of the donated fresh fruits
or fresh 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, the name and address of the
donee nonprofit organization, and, as provided by the donor, the
estimated value of the donated fresh fruits or fresh vegetables and
its origins. Upon the request of the Franchise Tax Board, the
qualified 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) Using the information available to the Franchise Tax Board
from the certificates required under subdivision (d) and subdivision
(d) of Section 23688, the Franchise Tax Board shall report to the
Legislature on or before December 1, 2014, and each December 1
thereafter until the inoperative date specified in subdivision (g),
regarding the utilization of the credit authorized by this section
and Section 23688.The Franchise Tax Board shall also include in the
report the type and quantity of fresh fruits and fresh vegetables
donated, the estimated value of those products, the county in which
the products originated, the county in which the donation was made,
and the month the donation was made.
   (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.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 4.  Section 23688 is added to the Revenue and Taxation Code,
to read:
   23688.  (a) In the case of a qualified taxpayer who donates fresh
fruits or fresh 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, and before January 1, 2017, there shall be
allowed  , without regard to the taxpayer's metho   d of
accounting,  as a credit against the "tax" (as defined by
Section 23036), an amount equal to 10 percent of the cost  that
would otherwise be  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 fresh fruits or fresh vegetables.
   (b) For purposes of this section, "qualified taxpayer" means the
person responsible for planting a crop, managing the crop, and
harvesting the crop from land.
   (c) If the credit allowed by this section is claimed by the
qualified taxpayer, any deduction otherwise allowed under this part
for that amount of the cost paid or incurred by the qualified
taxpayer that is eligible for the credit shall be reduced by the
amount of the credit provided in subdivision (a).
   (d) The donor shall provide to the nonprofit organization the
estimated value of the donated fresh fruits or fresh vegetables and
information regarding the origin of where the donated fruits or
vegetables were grown, and upon receipt of the donated fresh fruits
or fresh 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
  Agricultural  Code. The certificate shall also
contain the type and quantity of product donated, the name of donor
or donors, the name and address of the donee nonprofit organization,
and, as provided by the donor, the estimated value of the donated
fresh fruits or fresh vegetables and its origins. Upon the request of
the Franchise Tax Board, the qualified 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) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  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.