BILL ANALYSIS SB 19 Page 1 Date of Hearing: July, 03, 2001 ASSEMBLY COMMITTEE ON HEALTH Helen Thomson, Chair SB 19 (Escutia) - As Amended: June 4, 2001 SENATE VOTE : 22-15 POLICY QUESTIONS : 1)Should the reimbursement a school receives for free and reduced-price meals be increased to twenty-six cents? 2)Should various prohibitions and limitations on the sale of foods and beverages at schools including prohibiting entree items and side dishes from being larger than the portions of those foods served as part of the federal school meal program, be established? 3)Should a school district be permitted to convene a Child Nutrition and Physical Activity Advisory Committee to develop and recommend to the governing board of the school district for its adoption, school district policies on nutrition and physical activity? 4)Should the sum of $11 million be appropriated from the General Fund to the Department of Education to implement specified provisions of this bill? 5)Should the Superintendent of Public Instruction annually be required to randomly select not less than 10% of the school districts of the state to report compliance with this bill? SUBJECT : Pupil health. SUMMARY : Requires the reimbursement a school receives for free and reduced-price meals to be increased to twenty-six cents. Provides various prohibitions and limitations on the sale of foods and beverages at schools, including prohibiting entree items and side dishes from being larger than the portions of those foods served as part of the federal school meal program. Permits a school district to convene a Child Nutrition and Physical Activity Advisory Committee and requires the Committee to develop and recommend to the governing board of the school district for its adoption, school district policies on nutrition SB 19 Page 2 and physical activity. Appropriates $11 million from the General Fund (GF) to the Department of Education (DOE) and specifies how these sums are to be allocated for the 2001-02 and 2003-04 fiscal years. Requires, annually, the Superintendent of Public Instruction (Superintendent) to randomly select not less than 10 percent of the school districts of the state to report compliance with this bill. Specifically, this bill : 1)Requires the reimbursement a school receives for free and reduced-price meals to be increased to twenty-six cents. 2)Requires a school to receive a reimbursement of thirteen cents for meals sold at full price. 3)Requires a school to follow the United States Department of Agriculture's Enhanced Food Based Meal Pattern, the United States Department of Agriculture's Nutrient Standard Meal Planning, or California's SHAPE Menu Patterns in order to qualify for the increased reimbursement for free and reduced-price meals and for the reimbursement for meals sold at full price. 4)Requires the reimbursement rates set forth in #1 and #2 above to be adjusted annually for increases in cost of living in the same manner set forth in current law relating to the inflation adjustment established by the Superintendent of Public Instruction. 5)Requires #1 through #4 to become operative on January 1, 2004. 6)Requires the sale of all foods on school grounds to be approved by the school food service program director or the person or entity responsible for serving meals at the school-site. 7)Requires the only food that may be sold at elementary schools during breakfast and lunch periods to be sold as a full meal which is defined as any combination of food items that meet a USDA-approved meal pattern. Exempts the sale of fruits, vegetables, or beverages from this requirement. 8)Requires individual food items sold during morning or afternoon breaks at elementary schools to meet the standards for foods sold at secondary schools, as set forth in #10 SB 19 Page 3 below. 9)Limits the types of beverages that may be sold at an elementary school to water, milk, and 100% fruit juices regardless of the time of day. 10)Limits the types of beverages that may be sold at secondary schools from one-half hour before the start of the schoolday until one-half hour after the end of the schoolday to: a) Fruit-based drinks that do not contain additional sweeteners; b) Water; c) Milk, including, but not limited to, chocolate milk, soy milk, rice milk, and other similar nondairy milk; and, d) Sports drinks, defined as any electrolyte replacement beverage that contains no more than 25 grams of sweetener. 11)Prohibits any beverage permitted to be sold pursuant to #10 above from being carbonated. 12)Requires all snacks, sweets, or side dishes sold on the school-site of a secondary school outside of the federal school meal program from one-half hour before the start of the schoolday until one-half hour after the end of the schoolday to meet all of the following standards: a) Have 35 percent or less of its total calories from fat and exempts the sale of nuts and seeds from this requirement; b) Have 10 percent or less of its total calories from saturated fat; c) Have 35 percent or less of its total weight composed of sugar and exempts the sale of fruits and vegetables from this requirement; and d) Be limited to 12 ounces for beverages and exempts water and milk from this requirement. 13)Prohibits entree items and side dishes, including, but not limited to, french fries and onion rings, from being larger than the portions of those foods served as part of the federal school meal program. 14)Requires fruits and vegetables to be offered for sale at any SB 19 Page 4 location on the schoolsite of a secondary school where competitive foods are sold. 15)Prohibits #6 through #14 above from being waived pursuant to current law which permits the governing board of a school district or a county board of education, on a districtwide or countywide basis or on behalf of one or more of its schools or programs to waive any section of the Education Code or any regulation adopted by the Board of Education (BOE) that implements a section of the Education Code, after a public hearing on the matter. 16)Requires #6 through #14 above to become operative on January 1, 2004. 17)Requires, by January 1, 2004, every school to post a summary of nutrition and physical activity laws and regulations, and to post the school district's nutrition and physical activity policies, in public view within all school cafeterias or other central eating areas. Requires the DOE to develop the summary of state law and regulations. 18)Permits a school district to convene a Child Nutrition and Physical Activity Advisory Committee (Committee). Requires the Committee to develop and recommend to the governing board of the school district for its adoption, school district policies on nutrition and physical activity. 19)Requires the Committee to include, but not be limited to, food service directors, food service staff, staff, parents, pupils, physical and health education teachers, dietitians, health care professionals, and interested community members. 20)Requires the Committee to hold at least one public hearing, in developing the policies on nutrition and physical activity. Requires the policies on nutrition and physical activity to address issues and goals, including, but not limited to, all of the following: a) Ensuring that no pupil is hungry; b) Improving nutritional standards; c) Increasing the availability of fresh fruits and vegetables; d) Ensuring, to the extent possible, that the food served is fresh; SB 19 Page 5 e) Encouraging eligible pupils to participate in the school lunch program; f) Integrating nutrition and physical activity into the overall curriculum; g) Ensuring regular professional development for food services staff; h) Ensuring pupils a minimum of 30 minutes to eat lunch and 20 minutes to eat breakfast , when provided; i) Ensuring pupils engage in healthful levels of vigorous physical activity; j) Ensuring pupils receive nutrition education; aa) Improving the quality of physical education curricula and increasing training of physical education teachers; bb) Enforcing existing physical education requirements; cc) Altering the economic structures in place to encourage healthy eating by pupils and reduce dependency on generating profits for the school from the sale of unhealthy foods; and dd) Developing a financing plan to implement the policies. 21)Permits a school district to apply to DOE for a grant to offset the costs of developing and adopting policies pursuant to #18, #19 and #20 above. Requires these grants to be available to applicant school districts by January 1, 2002. 22)Requires a school district that develops and adopts policies pursuant to #18, #19, and #20 above by January 1, 2003, to receive a grant from DOE on the basis of an equal amount per unit of average daily attendance of the participating school districts, with no participating school district receiving less than four thousand dollars ($4,000) per grant, and no participating school district receiving more than twenty-five thousand dollars ($25,000) per grant, to offset the costs of developing the policies. 23)Appropriates the sum of $11 million from the GF to DOE, for allocation as follows: a) $1 million in each of the fiscal years 2001-02 and 2002-03, for the purpose of providing technical support to school districts to assist in implementing #18 through #22 above; and b) $10 million for providing grants to applicant school districts, on the basis of average daily attendance of the participating school districts, for the purposes of SB 19 Page 6 developing policies as set forth in #21 above. 1)Requires of the $10 million appropriated by #23 b) above, the amount of $5 million to be allocated in the 2001-02 fiscal year, and $5 million to be allocated in the 2002-03 fiscal year. 2)Requires, annually, the Superintendent to randomly select not less than 10% of the school districts of the state to report compliance with this bill as set forth in #26 below. Requires the group selected to be sufficient to provide a statistically random and accurate sampling of the state as a whole. 3)Requires each school district selected pursuant to #25 above to report to the Superintendent in the coordinated compliance review regarding the extent to which it has complied with this bill. 4)Requires the Superintendent to issue a notice of noncompliance for any school district that the Superintendent finds is not in compliance with the mandatory provisions of this bill. 5)Requires the noncomplying school district to adopt, and provide to the Superintendent, a corrective plan. Requires the corrective plan to set forth the actions to be taken by the school district in order to ensure that the school district will be in full compliance within one year from the issuance of the noncompliance notification. 6)Requires DOE, with advice from the Child Nutrition Advisory Council, to design and implement a financial incentive grant program to help and encourage schools to implement the school district policies and meet the goals described in #20 above. 7)Requires the Department of Health Services (DHS) to monitor the implementation of #6 through #16 and to annually report to the Legislature regarding all of the following: a) The effectiveness of the policies and standards developed by school districts; b) The effect of this bill upon school districts and pupils, including, but not limited to, an assessment of pupil responses and related findings; and c) Recommendations for improvements or additions. SB 19 Page 7 8)Requires DHS to report to the Legislature by June 1, 2004, regarding the initial implementation of #6 through #16 above. 9)Makes various legislative findings and declarations, including childhood obesity has reached epidemic levels in California and throughout the nation. EXISTING LAW : 1)Provides around $0.12 for the state's share of the reimbursable meal program. 2)Requires the governing board of a school district to give diligent care to the health and physical development of pupils. 3)Requires the Superintendent to reimburse school districts for certain costs associated with free and reduced-price meals. 4)Prohibits the sale of competitive foods in the school food service area, as defined in federal law. 5)Requires that 50% of the items, other than foods reimbursed under federal law, offered for sale each schoolday at any school-site by any entity or organization during regular school hours be selected from a prescribed list of nutritious foods. 6)Requires all public school districts and county superintendents of schools to make available, free or at a reduced price, one nutritionally adequate meal to each needy student every school day. FISCAL EFFECT : According to the Senate Appropriations' committee analysis, this bill would cost $5.5 million, for 2001-02 and $5.5 million for 2003-04 fiscal years from GF. $1 million of the appropriation would be available in the 2001-02 and 2002-03 fiscal years for the purpose of providing technical support to school districts. The remaining $10 million would be for providing grants to school districts on the basis of average daily attendance in the 2001-02 and 2002-03 fiscal years. COMMENTS : SB 19 Page 8 1)PURPOSE OF THIS BILL . According to the author, the percentage of overweight children and youth in the U.S. has doubled in the past 30 years. 91% of children ages 6 to 11 are not eating the recommended amounts of fruits and vegetables. Many experts believe this is due, at least in part, to an increased consumption of convenience foods. The author argues that overweight and obese children are at a higher risk than other children for long-term health problems including diabetes, hypertension, cardiovascular disease, high blood pressure, gallbladder disease, asthma and certain cancers. The link between good nutrition and student achievement is clear: children who eat poorly tend to have high rates of sickness and absence from school, low energy, low test scores and difficulty concentrating. The author argues that this bill encourages students to adopt healthy eating habits and supports them in this endeavor at school by guaranteeing nutritious options for meals and snacks. 2)SUPPORT . According to the sponsors of this bill, the California Center for Public Health Advocacy (CCPHA), throughout California as many as 1/3 of students are overweight. Poor nutrition and physical inactivity are responsible for 28% of preventable deaths in the U.S.. CCPHA argues that schools are part of the problem because there are no standards for foods sold a la carte, or in vending machines. According to the American Cancer Society (ACS), a significant contribution to youth obesity comes from the sale of unregulated foods and sodas at schools. This bill is directed at improving the choice of foods offered at schools as well as encouraging fruit and vegetable consumption. ACS adds that this bill will ensure that the eating habits promoted at our schools is consistent with the nutrition education students receive in the classroom. According to the American Heart Association (AHA), poor diet and physical inactivity contribute to an estimated 35,000 deaths and $15 billion in excess of health care costs every year in California. AHA argues that this bill takes long overdue and important steps to ensure that the eating habits promoted through the sale of food and beverages at our schools are aligned with nutrition education students receive in the classroom. According to the California Adolescent Nutrition and Fitness Program (CANFIT), schools greatly influence what youth eat, how active they are, and whether they become obese. Schools SB 19 Page 9 are increasingly offering unhealthy meals and foods in vending machines such as chips, candy, and soda. CANFIT states that this trend not only threatens student health, but also performance. The Sharp HealthCare Center for Health Promotion (SHARP) states that there is currently a huge dissonance in what is being taught in schools about nutrition and what is being sold to students through competitive food sales, school stores and fundraising efforts. SHARP argues that the role of schools should be to create a "safe haven" where youth are not bombarded daily with messages and opportunities to eat unhealthy foods that are high in fat and sugar. The California Parent Teachers Association (PTA) states that this bill includes all of what its members adopted as sound nutritional guidelines 10 years ago. PTA adds that this bill provides individual school districts local control and needed input in adopting district policies through the local Child Nutrition and Physical Advisory Committees. 3)OPPOSITION . The California School Food Service Association (CSFSA), is concerned about the impact this bill will have on the nutrition programs their school food service authorities are mandated to provide to California students. CSFSA states that it opposes this bill because: 1) The funding in the bill is not linked to the implementation of the standards; 2) A la carte sales would be severely restricted and the financial stability of school food service programs will be at stake; and 3) Many high school campuses are unrestricted during meal periods and students will leave campus to purchase what they want to eat. CSFSA states that they support the concept of improved nutrition access for students, however, this bill falls short in addressing the true issue and will do more harm than good. The Association of California School Administrators (ACSA) notes that state funding for school meals has been reduced by 25% over the last 15 years. As a result, sales of competitive foods have been used to make up for funding reductions to service programs. ACSA argues that this bill provides no mechanism by which the districts can offset any accompanying financial loss and this bill should include provisions to offset possible revenue reductions resulting from the bill. ACSA adds that implementing the new portion sizes will be problematic since this may require repackaging and nothing in this bill stops students from purchasing two or three additional items to get around this limitation. The Jelly Belly Candy Company argues that candy is only a small percentage of calories consumed by children SB 19 Page 10 and all food can be eaten in moderation. Nutrition education and the need for physical activity should instead by fully addressed. The Dairy Institute argues that contrary to the implications of this bill, child health and nutrition is a concern for parents, school nutritionists and food manufacturers. As partners with families, local school food service programs make positive efforts to both educate and feed California's school children. The California Association of Directors of Activities (CADA), states that this bill makes no financial compensation to the hundreds of student clubs, organizations, publications, classes, activity programs, athletics, or performance groups that now rely on monies generated by the sale of food and beverages whether during the school day, or immediately after school in student run snack bars. CADA adds that this bill does not address the real problem of obesity or student activity. The Grocery Manufacturers of America argues that this bill will only serve to limit choice and restrict the authority of local schools and school districts to exercise discretion over whether and under what conditions various food products should be available in schools. The Riverside County Schools Advocacy Association argues that an unintended consequence of this bill would be a significant increase in secondary students leaving campus for lunch, undermining the nutritional goals of this bill and further reducing funding for this state mandated program. 4)SUPPORT IF AMENDED . The California School Boards Association, and the President of the Woodland School Board would support this bill if it was amended to instead create a pilot program in order to test the feasibility of implementing the suggested standards and their economic feasibility. The California Nutrition Council (CNC) would prefer to see less prescriptive language that could be used to teach children to manage their environment so that they can live productive healthy lives after their school careers. CNC states that it would prefer to see language that would allow schools some flexibility in meeting the demands of their students while providing a nutrition environment that does not flood food choices with foods of minimal nutritional value. 5)USDA REGULATIONS . Under the United States Department of Agriculture (USDA) regulations, the nutrient content of meals sold under the reimbursable meal program is based on (a) the SB 19 Page 11 recommended daily allowance (RDA); (b) children's energy expenditure; and (c) dietary guidelines for Americans. Each meal is based on a specific standard put out by the USDA. Such standards provide that each meal limit total fat content, meet 1/3 of RDA, and provide a variety of foods moderate in sugar and salt and high in fruits, vegetables, and whole grains. 6)COMPETITIVE FOOD SALES . Current law prohibits the sale of Foods of Minimal Nutritional Value or "competitive foods" in the "school food service area" as defined by federal law. The School Food Service Program (the federal, not-for-profit program) is authorized to sell nutritious school meals to pupils (within the specified federal guidelines). Current law authorizes school districts to contract with private vendors for the sale of competitive foods, so long as they meet a one-to-one requirement standard for these "competitive foods". 7)FREE AND REDUCED MEAL PROGRAMS . Currently, 74% of California school children receive free or reduced-price school meals. This is a reimbursable meal program where 96% percent of the reimbursement comes from federal funds. The state's share of this reimbursement equals around $0.12 and has remained constant since 1981. 8)CRB STUDY . A study by the California Research Bureau (CRB), entitled "Overweight Kids: Why Should We Care?" stated that childhood obesity in the United States has doubled in the last 10 years. There is much finger-pointing at the specific reasons as to why this has occurred. The CRB study found that the most apparent reasons for the increase in childhood obesity are that children are eating more calories and exercising less. The CRB study added that according to a Centers for Disease Control and Prevention national survey one third of high school students did not participate regularly in vigorous physical activity, and more than half were not enrolled in physical education classes. According to the CRB study, students typically opt to take physical education during their first two years of high school, however, there may be no room if a student wanted to take additional physical activity classes. The CRB study listed the following potential policy options regarding addressing the problem of obesity: SB 19 Page 12 a) Providing accessible and affordable physical activity space and equipment; b) Providing physical activity instruction; c) Sharing programs that work by increasing networking between various programs; d) Providing affordable fruits and vegetables and instructing how to cook them; and e) Developing a cost-effective preventive health campaign to better education Californians about the risks of eating fatty foods and not exercising. 9)RELATED LEGISLATION . SB 292 (Ortiz) requires DHS to expand the activities provided under the Physical Activity and Health Initiative (PAHI) and requires PAHI to work in conjunction with the California Project Leaders Encouraging Activity and Nutrition to promote health education, health activities, and health awareness to the public regarding the need to increase physical activity to prevent major chronic disease. SB 665 (Peace) prohibits any food offered for sale at any school-site during the regular schoolday from being junk food, as defined, and requires all milk offered to be skim or nonfat, or 1% fat. AB 287 (Wesson) appropriate up to $1 million from the General Fund to DOE for the purpose of contracting with a recognized testing company to perform various services related to making available a physical fitness test to school districts. AB 367 (Migden) requires DOE to issue a notice of noncompliance to each school district that fails to comply with specified requirements, including requirements regarding the number of hours of physical instruction offered to pupils in grades 1 to 12, inclusive. 10)PRIOR LEGISLATION . SB 1320 (Escutia) of 2000 contained similar provisions to this bill including the establishment of a Child Nutrition and Physical Activity Advisory Committee and prohibitions relating to the sale of foods and beverages at schools. SB 1320 was amended to focus on students with diabetes and included a provision requiring every school to permit any pupil with diabetes to test his or her blood glucose levels either in classrooms or very close to classrooms. SB 1320 was vetoed by the Governor. The Governor's veto message stated that currently, the governing boards of local educational agencies have a clear statutory responsibility to give diligent care to the health and physical development of pupils and have the authority to SB 19 Page 13 determine their staffing needs consistent with fulfilling this obligation. School health staffing needs are determined at the local level based on local priorities and should remain so. 11)DOUBLE REFERRAL . Should this bill pass out of this committee, it will be referred to the Assembly Committee on Education. REGISTERED SUPPORT / OPPOSITION : Support California Center for Public Health Advocacy (sponsor) African Americans Building a Legacy of Health Project American Cancer Society American Federation of State, County, and Municipal Employees, AFL-CIO American Heart Association California Adolescent Nutrition and Fitness Program California Association for Health, Physical Education, Recreation and Dance California Citizens For Health Freedom California Conference of Local Health Department Nutritionists California Conference of Local Health Officers California Federation of Teachers California Food Policy Advocates California Public Health Association-North California State Parent Teachers Association California Teachers Association City of Norwalk Community Health Councils, Inc. Imperial County Public Health Department Junior Leagues of California State Public Affairs Committee Kaiser Permanente Prevention Institute Project Harmony Project LEAN in the Gold Coast Region Samuels and Associates Santa Barbara County Sharp HealthCare Center for Health Promotion Southern California Public Health Association Strategic Alliance to Prevent Childhood Obesity University of Southern California Mobile Dental Clinic Several individuals SB 19 Page 14 Opposition A&R Wholesale Distributors, Inc. Association of California School Administrators California Association of Directors of Activities California Automatic Vendors Council California Distributors Association California Nevada Soft Drink Association Californians for Sensible School Nutrition Policy California School Food Service Association Chocolate Manufacturers Association Dairy Institute Glendale Unified School District Grocery Manufacturers of America Hershey Foods Corporations Jelly Belly Candy Company Long Beach Unified School District National Automatic Merchandising Association National Confectioners Association Quaker Oats Company Redondo Beach Unified School District Riverside County Schools Advocacy Association Santa Clarita Valley School Food Services Agency Snack Foods Association Several Food Service Directors from: Capistrano Unified School District Central Unified School District Conejo Valley Unified School District Kingsburg Elementary Charter School District Los Banos Unified School District Manhattan Beach Unified School District Merced City School District Modesto City Schools Visalia Unified School District Two individuals Analysis Prepared by : David Gonzalez / HEALTH / (916) 319-2097