Existing law creates 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 into the Nutrition Incentive Matching Grant Account. A violation of the laws governing fruit, nut, and vegetable standards is a crime.

This bill would specify that a consumer cooperative, as defined, that sells California-grown fresh fruits, nuts, and vegetables and is authorized to accept specified nutrition benefits from nutrition benefit clients is a qualified entity eligible to be awarded moneys through the Nutrition Incentive Matching Grant Program. By expanding the program to include consumer cooperatives, the bill would expand the scope of a crime and thereby impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1603 (Alvarez) - Nutrition Incentive Matching Grant Program: qualified entities: consumer cooperatives

Bill Summary:

AB 1603 would add a consumer cooperative (co-op) that (1) sells California-grown fresh fruits, nuts, and vegetables, and (2) is authorized to accept specified nutrition benefits from specified programs, to the list of qualified entities under the California Nutrition Incentive Program (CNIP).

Fiscal Impact:

• This bill would result in a General Fund cost pressure to increase funding for the CNIP to accommodate increased eligibility for and utilization of the program. The magnitude is unknown, but potentially in the hundreds of thousands of dollars annually.
• The bill would not have a fiscal impact to the California Department of Food and Agriculture (CDFA).

Background:

CNIP encourages the purchase and consumption of healthy, California-grown fresh fruits, vegetables, and nuts by nutrition benefit clients who receive services or payments through specific state programs, such as CalWORKs, CalFresh, and WIC. Housed within CDFA’s Office of Farm to Fork, CNIP provides monetary incentives for the purchase of California-grown fruits and vegetables at Certified Farmers Markets and small businesses. CNIP provides competitive grant funding to organizations to provide incentives to “nutrition benefit shoppers”, support program operations, and outreach. For every benefit dollar a shopper spends, they receive an additional dollar that can be spent on fruits and vegetables at the market or retail outlet, within set parameters. Any nutrition benefit shopper can benefit from the program simply by spending their benefits at participating Certified Farmers Markets and other retail outlets.

CNIP is supported by a variety of funding sources, including federal funds, the General Fund, and local partner support, including private donations, grants, and in-kind contributions. The state budget allocated $10 million to CDFA in both 2021-22 and 2022-23. CDFA used this funding to apply for a competitive federal grant of $12.9 million in 2022. CDFA also received a federal grant of $6.3 million in 2021 to meet the increased demand for nutrition incentives due to the COVID-19 pandemic.

A co-op is an organization that is owned and controlled by the people who use its products, supplies, or services. According to the author, most food co-ops in California are based on a social justice and equity-focused model and provide healthy and locally sourced food options to their communities. Currently, there are 14 food co-ops registered to operate in California, five of which are located in economically disadvantaged communities, and at least eight startups are in the process of creating food co-ops.

Proposed Law:

This bill would specify a consumer cooperative that sells California-grown fresh fruits, nuts, and vegetables, and is authorized to accept specified nutrition benefits from specified programs, is a qualified entity eligible for grants through the Nutrition Incentive Matching Grant Program.

Staff Comments:

This bill would make food co-ops that accept nutrition assistance programs eligible to apply for competitive grant funding through the CNIP, thereby supporting businesses that often serve disadvantaged communities and food deserts, but also creating the aforementioned cost pressure.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1603 (Alvarez) - Nutrition Incentive Matching Grant Program: qualified entities: consumer cooperatives

Bill Summary:

AB 1603 would add a consumer cooperative (co-op) that (1) sells California-grown fresh fruits, nuts, and vegetables, and (2) is authorized to accept specified nutrition benefits from specified programs, to the list of qualified entities under the California Nutrition Incentive Program (CNIP).

Fiscal Impact:

• This bill would result in a General Fund cost pressure to increase funding for the CNIP to accommodate increased eligibility for and utilization of the program. The magnitude is unknown, but potentially in the hundreds of thousands of dollars annually.
• The bill would not have a fiscal impact to the California Department of Food and Agriculture (CDFA).

Background:

CNIP encourages the purchase and consumption of healthy, California-grown fresh fruits, vegetables, and nuts by nutrition benefit clients who receive services or payments through specific state programs, such as CalWORKs, CalFresh, and WIC. Housed within CDFA’s Office of Farm to Fork, CNIP provides monetary incentives for the purchase of California-grown fruits and vegetables at Certified Farmers Markets and small businesses. CNIP provides competitive grant funding to organizations to provide incentives to “nutrition benefit shoppers”, support program operations, and outreach. For every benefit dollar a shopper spends, they receive an additional dollar that can be spent on fruits and vegetables at the market or retail outlet, within set parameters. Any nutrition benefit shopper can benefit from the program simply by spending their benefits at participating Certified Farmers Markets and other retail outlets.

CNIP is supported by a variety of funding sources, including federal funds, the General Fund, and local partner support, including private donations, grants, and in-kind contributions. The state budget allocated $10 million to CDFA in both 2021-22 and 2022-23. CDFA used this funding to apply for a competitive federal grant of $12.9 million in 2022. CDFA also received a federal grant of $6.3 million in 2021 to meet the increased demand for nutrition incentives due to the COVID-19 pandemic.

A co-op is an organization that is owned and controlled by the people who use its products, supplies, or services. According to the author, most food co-ops in California are based on a social justice and equity-focused model and provide healthy and locally sourced food options to their communities. Currently, there are 14 food co-ops registered to operate in California, five of which are located in economically disadvantaged communities, and at least eight startups are in the process of creating food co-ops.

Proposed Law:

This bill would specify a consumer cooperative that sells California-grown fresh fruits, nuts, and vegetables, and is authorized to accept specified nutrition benefits from specified programs, is a qualified entity eligible for grants through the Nutrition Incentive Matching Grant Program.

Staff Comments:

This bill would make food co-ops that accept nutrition assistance programs eligible to apply for competitive grant funding through the CNIP, thereby supporting businesses that often serve disadvantaged communities and food deserts, but also creating the aforementioned cost pressure.

-- END --

SENATE COMMITTEE ON AGRICULTURE

Senator Melissa Hurtado, Chair

2023 - 2024 Regular

Bill No: AB 1603 Hearing Date: 7/3/23

Subject: Nutrition Incentive Matching Grant Program: qualified entities: consumer cooperatives

SUMMARY

:

This bill would establish a consumer cooperative that sells California-grown fresh fruits, nuts, and vegetables and is authorized to accept nutrition benefits (CA Special Supplemental Nutrition Program for Women, Infants, and Children, CalWORKs, CalFresh, the federal Women, Infants, and Children (WIC), the Senior Farmer’s Market Nutrition Program, or Supplemental Security Income or State Supplementary Payment) is considered a qualified entity eligible to be awarded moneys through the Nutrition Incentive Matching Grant Program.

BACKGROUND AND EXISTING LAW

:

Existing law:

1. Establishes the Office of Farm to Fork within the California Department of Food and Agriculture (CDFA) (Food and Agricultural Code Section 49011).
2. 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 (Food and Agricultural Code Section 49013).
3. Defines a consumer cooperative to mean a corporation or group of persons composed of ultimate producers or consumers or both, organized for the purpose of conducting any lawful business, as specified (Revenue and Taxation Code, Section 6012.1).

PROPOSED LAW

:

This bill:

1. Specifies a consumer cooperative that sells California-grown fresh fruits, nuts, and vegetables, and is authorized to accept specified nutrition benefits from specified programs, is a qualified entity eligible for grants through the Nutrition Incentive Matching Grant Program.

ARGUMENTS IN SUPPORT:

According to the author:

“Food access is a social determinant of health, and multiple communities in California are defined as food deserts. The lack of access to fresh foods and a drought of supermarkets has resulted in an influx of fast-food restaurants, liquor stores, and small convenience stores. To address this issue, many communities have banded together to form their own cooperatives to provide healthier food options at an affordable price.”

“By allowing food cooperatives that accept nutrition assistance programs to receive funds from the Nutrition Incentive Matching Grant, California can further bolster these enterprises that serve some of our most disadvantaged communities and food deserts. Food cooperatives have also been shown to have a higher economic impact on the community than traditional grocery stores.”

The Cultivate Community Food Co-Op writes in support of the bill stating the bill will help California bolster enterprises that serve disadvantaged communities and food deserts in California, and “bring further re-investment back into their local community.”

ARGUMENTS IN OPPOSITION:

None received.

PRIOR ACTIONS

:

SUPPORT

:

California Senior Legislature
Cultivate Community Food Co-op
Suncoast Market Co-op

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1603

Author:(Alvarez)

As Introduced Ver:February 17, 2023

Majority vote

SUMMARY

Adds consumer cooperatives that sells California-grown fresh fruits, nuts, and vegetables and is authorized to accept specified nutrition benefits from nutrition benefit clients is a qualified entity under the Nutrition Incentive Matching Grant Program (NIMG) Program.

Major Provisions

Expands NIMG program to accept consumer cooperatives, as defined in Revenue and Taxation code 6012.1, as a qualified entity.

COMMENTS

Market Match is California's healthy food incentive program that matches customers' CalFresh nutrition assistance benefits at farmers' markets and other farm-direct sites. Market Match is distributed by over 60 community-based organizations and farmers' market operators at over 250 sites across the state. The Market Match program was founded in 2009. The first primary funder was the California Department of Food and Agriculture, Specialty Crop Block Grant Program. The program began with just a handful of partners, market operators and community-based organizations spread out across the state. In 2017, the California Nutrition Incentive Program was established by Assembly Bill 1321 (Ting). Shoppers can use CalFresh benefits at participating farmers markets and receive a matching dollar amount, up to $10, to spend on fruits and vegetables at the same market and up to $20 at mobile market sites.

Most food cooperatives in California are based on a social justice, equity focused model that provide healthy and locally sourced food options to their community. The first consumer food cooperative in California was formed in 1867 in San Francisco. Although the modest daily sales were financially sound, the store lasted only a short time. In the 1930s, there was a burst of cooperative activity throughout the United States in response to the Great Depression. In California, the Berkeley food cooperative was formed in 1937. Although the 1988 closure of the Berkeley food cooperative was a setback for the consumer cooperative movement, many other food cooperatives in California are thriving and expanding; most have been formed within the last 40 years.

According to the Author

Most cooperatives also accept federal and state nutrition benefits to help families in disadvantaged communities' access food at a more affordable price, and any entity eligible for this grant would need to meet this requirement. By allowing food cooperatives that accept nutrition assistance programs to receive funds from the Nutrition Incentive Matching Grant, California can further bolster these enterprises that serve some of the most disadvantaged communities and food deserts in California. As mentioned, money spent by consumers at food cooperatives are invested back into the local community.

Arguments in Support

This bill will improve the lives of some of the most vulnerable in the State. A recent study by the National Cooperative Grocers Association (NCGA) on food cooperatives found that for every $1,000 spent at a food co-op, $1,606 is generated within their local economy, $239 additional dollars than if they had spent it at a conventional grocer. And for every $1 million in sales at a food co-op, 9.3 jobs are created where as a conventional grocer creates 5.8 jobs per million dollars in sales.

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Committee on Appropriations, this bill has cost pressure of an unknown but potentially significant amount, possibly in the hundreds of thousands of dollars, to increase funding for the CNIP to accommodate broader eligibility for and increased interest and participation in the program.

VOTES

ASM AGRICULTURE: 11-0-0

YES: Robert Rivas, Mathis, Aguiar-Curry, Alanis, Connolly, Flora, Irwin, Jones-Sawyer, Soria, Villapudua, Wood

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: February 17, 2023

CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0000497

Date of Hearing: May 3, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1603

Author:(Alvarez) – As Introduced Ver:February 17, 2023

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill adds a consumer cooperative (co-op) that sells California-grown fresh fruits, nuts, and vegetables and that is authorized to accept specified nutrition benefits from specified programs to the list of qualified entities under the California Nutrition Incentive Program (CNIP).

FISCAL EFFECT:

1) Cost pressure of an unknown but potentially significant amount, possibly in the hundreds of thousands of dollars, to increase funding for the CNIP to accommodate broader eligibility for and increased interest and participation in the program (General Fund).

2) The California Department of Food and Agriculture (CDFA) anticipates no additional costs to the department as a result of this bill.

COMMENTS:

1) Purpose. According to the author:

AB 1603 will expand grant opportunities for consumer cooperatives that sell CA grown produce and accept nutrition assistance benefits. Several communities in California, including in the 80th District, are defined as food deserts and lack access to grocery stores that sell fresh produce. In the past 40 years there has been a resurgence of consumer cooperatives, many of which are located in disadvantaged communities and food deserts. The Nutrition Incentive Matching Grant can help boost these enterprises to better serve their communities with local and healthy produce, while also re-investing dollars that are spent back into their community. 

2) Background. According to CDFA, CNIP encourages the purchase and consumption of healthy, California-grown fresh fruits, vegetables, and nuts by nutrition benefit clients who receive services or payments through specific programs, such as CalWORKs, CalFresh, and WIC. Housed within CDFA’s Office of Farm to Fork, CNIP provides monetary incentives for the purchase of California-grown fruits and vegetables at Certified Farmers Markets and small businesses. CNIP provides competitive grant funding to organizations to provide incentives to “nutrition benefit shoppers”, support program operations, and outreach. For every benefit dollar a shopper spends, they receive an additional dollar that can be spent on fruits and vegetables at the market or retail outlet, within set parameters. Any nutrition benefit shopper can benefit from the program simply by spending their benefits at participating Certified Farmers Markets and other retail outlets.

CNIP is supported by a variety of funding sources, including federal funding through the Gus Schumacher Nutrition Incentive Program (GusNIP), the General Fund, and local partner support, including private donations, grants, and in-kind contributions. Most recently, CDFA was allocated $10 million General Fund for fiscal year (FY) 2021-2022 and another $10 million in FY 2022-2023. CDFA used this funding to apply for a competitive GusNIP grant of $12.9 million in 2022. CDFA also received a GusNIP Covid Relief and Response grant of $6.3 million in 2021 to meet the increased demand for nutrition incentives due to the COVID-19 pandemic. The Governor’s January budget for FY 2023-24 does not include any new funding for the program. This precludes CDFA from applying for federal funds, because CDFA is required to have a minimum of a dollar of state funds for every dollar of federal funds it applies for. All of CNIP’s funding is currently committed.

A co-op is an organization that is owned and controlled by the people who use its products, supplies, or services. According to the author, most food co-ops in California are based on a social justice and equity-focused model and provide healthy and locally sourced food options to their communities. The Assembly Agriculture Committee analysis of this bill notes there are approximately 14 food co-ops registered to operate in California, five of which are located in economically disadvantaged communities, and at least eight startups are in the process of creating food co-ops. The author cites a recent study by the National Cooperative Grocers Association (NCGA) on food co-ops, which found that for every $1,000 spent at a food co-op, $1,606 is generated within the local economy, $239 more than if those dollars had spent at a conventional grocery store. Most co-ops accept federal and state nutrition benefits to help families access food at a more affordable price.

This bill makes food co-ops that accept nutrition assistance programs eligible to apply for competitive grant funding through the CNIP, thereby supporting businesses that often serve disadvantaged communities and food deserts.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 19, 2023

ASSEMBLY COMMITTEE ON AGRICULTURE

Robert Rivas, Chair

ABPCA Bill Id:AB 1603

Author:(Alvarez) – As Introduced Ver:February 17, 2023

SUBJECT: Nutrition Incentive Matching Grant Program: qualified entities: consumer cooperatives

SUMMARY: Adds consumer cooperatives that sells California-grown fresh fruits, nuts, and vegetables and is authorized to accept specified nutrition benefits from nutrition benefit clients is a qualified entity under the Nutrition Incentive Matching Grant Program (NIMG) Program

EXISTING LAW:

1. Established NIMG Program in the Office of Farm to Fork (OF2F) creates a NIMG account and requires OF2F to establish minimum standards, funding schedules and grant procedures for the NIMG program. Food and Agriculture code 49011
   
2. Defines a consumer cooperative to mean a corporation or group of persons composed of ultimate producers or consumers, or both, organized for the purpose of conducting any lawful business, as specified. Revenue and Taxations code 6012.1

FISCAL EFFECT: Unknown

COMMENTS: Market Match is California’s healthy food incentive program that matches customers’ CalFresh nutrition assistance benefits at farmers’ markets and other farm-direct sites. Market Match is distributed by over 60 community-based organizations and farmers’ market operators at over 250 sites across the state. The Market Match program was founded in 2009. The first primary funder was the California Department of Food and Agriculture, Specialty Crop Block Grant Program. The program began with just a handful of partners, market operators and community-based organizations spread out across the state. In 2017, the California Nutrition Incentive Program was established by Assembly Bill 1321 (Ting). Shoppers can use CalFresh benefits at participating farmers markets and receive a matching dollar amount, up to $10, to spend on fruits and vegetables at the same market and up to $20 at mobile market sites.

Most food cooperatives in California are based on a social justice, equity focused model that provide healthy and locally sourced food options to their community. The first consumer food cooperative in California was formed in 1867 in San Francisco. Although the modest daily sales were financially sound, the store lasted only a short time. In the 1930s, there was a burst of cooperative activity throughout the United States in response to the Great Depression. In California, the Berkeley food cooperative was formed in 1937. Although the 1988 closure of the Berkeley food cooperative was a setback for the consumer cooperative movement, many other food cooperatives in California are thriving and expanding; most have been formed within the last 40 years

According to the author, most cooperatives also accept federal and state nutrition benefits to help families in disadvantaged communities access food at a more affordable price, and any entity eligible for this grant would need to meet this requirement. By allowing food cooperatives that accept nutrition assistance programs to receive funds from the Nutrition Incentive Matching Grant, California can further bolster these enterprises that serve some of the most disadvantaged communities and food deserts in California. As mentioned, money spent by consumers at food cooperatives are invested back into the local community.

The author’s staff have identified 14 food cooperatives registered to operate in California, five of which are located in an economically disadvantaged community and eight startups that are currently in the process of creating a food cooperative. These startup organizations include Deep Grocery Co-op Oakland, South Los Angeles (SOLA) Food Coop, and Paso Food Co-op in Paso Robles among others.

Supporters state this bill will improve the lives of some of the most vulnerable in the State. A recent study by the National Cooperative Grocers Association (NCGA) on food cooperatives found that for every $1,000 spent at a food co-op, $1,606 is generated within their local economy, $239 additional dollars than if they had spent it at a conventional grocer. And for every $1 million in sales at a food co-op, 9.3 jobs are created where as a conventional grocer creates 5.8 jobs per million dollars in sales.

REGISTERED SUPPORT / OPPOSITION:

Support

California Senior Legislature

Suncoast Market Co-op

Opposition

None on file

Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084