BILL NUMBER: AB 152 CHAPTERED
BILL TEXT
CHAPTER 503
FILED WITH SECRETARY OF STATE OCTOBER 6, 2011
APPROVED BY GOVERNOR OCTOBER 5, 2011
PASSED THE SENATE SEPTEMBER 6, 2011
PASSED THE ASSEMBLY SEPTEMBER 8, 2011
AMENDED IN SENATE AUGUST 30, 2011
AMENDED IN SENATE AUGUST 18, 2011
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, Fletcher, and Harkey)
(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, 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, nonprofit organizations, and
local education agencies 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 to food banks, 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, as prescribed, and for the
department's administrative costs.
(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 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.
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, but not
limited to, those available under the federal Food, Conservation, and
Energy Act of 2008 (Public Law 110-234), 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, nonprofit
organizations, and local education agencies 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 estimated value of the fresh fruits and fresh vegetables
donated, the county in which the products originated, 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 method 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 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 food and
funding for the provision of emergency food to food banks established
pursuant to the federal Emergency Food Assistance Program (7 C.F.R.
Parts 250 and 251) 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 federal funds and voluntary donations or contributions.
(c) Notwithstanding Section 18853 of the Revenue and Taxation
Code, the following shall apply:
(1) 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, with the exception of those contributions made
pursuant to Section 18851 of the Revenue and Taxation Code and funds
received through Parts 250 and 251 of Title 7 of the Code of Federal
Regulations, shall be used for the purchase, storage, and
transportation of food grown or produced in California. Storage and
transportation expenditures shall not exceed 10 percent of the SEFAP
fund's annual budget.
(2) Notwithstanding paragraph (1), funds 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 as described in paragraph (1),
and shall, in part, be used to pay for the department's
administrative costs associated with the administration of the SEFAP.