BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 20| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 20 Author: Padilla (D) Amended: 4/25/11 Vote: 21 SENATE HEALTH COMMITTEE : 8-1, 5/4/11 AYES: Hernandez, Strickland, Alquist, Blakeslee, De León, DeSaulnier, Rubio, Wolk NOES: Anderson SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Food facilities: menu labeling SOURCE : Author DIGEST : This bill revises the definition of "food facility," as it relates to menu labeling requirements, to mean a food facility that is part of a chain with at least 20 locations doing business under the same name and that offers for sale substantially the same menu items, regardless of the type of ownership. ANALYSIS : Existing federal law: 1. Establishes the United States Food and Drug Administration (FDA) to regulate food, cosmetics, medicines, and medicine products; and ensures that such CONTINUED SB 20 Page 2 products are labeled appropriately. 2. Establishes the Nutrition Labeling and Education Act, which requires all packaged foods sold outside of restaurants to include nutritional content information on the packaging. 3. Requires restaurants to provide nutritional content information on food items for which a nutrient or health-related claim is made by the restaurant. 4. Establishes the Patient Protection and Affordable Care Act (PPACA) (Public Law 111-148) as amended by the Health Care and Education Reconciliation Act (H.R. 4872). 5. Requires restaurants or similar retail establishments with 20 or more locations doing business under the same name and offering for sale substantially the same menu items, to disclose specified nutritional information of the standard menu items, with exceptions. 6. Requires operators of 20 or more vending machines to provide signs disclosing the number of calories for food items in the machines when the Nutrition Facts Panel cannot be viewed by the purchaser. Existing state law: 1. Establishes the California Retail Food Code (CRFC), which imposes various health and safety requirements on restaurants and makes violations of these requirements subject to criminal penalties. 2. Establishes the authority of local environmental health jurisdictions to adopt a food safety inspection program with oversight by the Department of Public Health (DPH). 3. Requires every food facility in this state that operates under common ownership or control, with at least 19 other food facilities with the same name, that sell substantially the same menu items, or operates as a franchised outlet of a parent company with at least 19 other franchises, with the same name, that sell CONTINUED SB 20 Page 3 substantially the same menu items, to disclose to consumers specified nutritional information for all standard menu items by January 1, 2011. 4. Defines "food facility" as a food facility in California that operates under common ownership or control with at least 19 other food facilities with the same name that sell substantially the same menu items, or operates as a franchised outlet of a parent company with at least 19 other franchises with the same name that sell substantially the same menu items. 5. Excludes certified farmers' markets, commissaries, grocery stores, convenience stores, licensed health care facilities, mobile support units, public and private school cafeterias, restricted food service facilities, retail stores in which a majority of sales are from a pharmacy, and vending machines from the definition of food facility. This bill revises the definition of "food facility" to one that is part of a chain with at least 20 locations doing business under the same name, regardless of the type of ownership, that offers for sale substantially the same menu items. Background SB 1420 (Padilla), Chapter 600, Statutes of 2008, requires every food facility in the state that operates under common ownership or control or operates as a franchised outlet of a parent company, with at least 19 other food facilities or franchises with the same name that sell substantially the same menu items, to disclose to consumers specified nutritional information for all standard menu items. The bill excludes specified facilities, such as grocery stores, convenience stores, public and private school cafeterias, and vending machines from these requirements. It also provides definitions for calorie content information, drive-through, menu board, and others, for the purpose of the bill, and describes nutritional information to include total number of calories, grams of carbohydrates, grams of saturated fat; and milligrams of sodium. CONTINUED SB 20 Page 4 SB 1420 was passed into law prior to PPACA, and was implemented January 1, 2011. One major difference between PPACA and existing state menu labeling laws is that PPACA requires operators of 20 or more vending machines to provide signs disclosing the nutritional for food items in the machines when the Nutrition Facts Panel cannot be viewed by the purchaser, whereas state law excludes vending machines from labeling requirements. Since the FDA has not finished issuing their menu labeling regulations yet, it is unknown how closely California laws will match the final federal regulations. At minimum, state laws on menu labeling will be superseded by federal law. However, establishments not covered under the new federal law or its implementing regulations remain subject to existing state and local laws. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes SUPPORT : (Verified 5/16/11) California Restaurant Association ARGUMENTS IN SUPPORT : The author introduced this bill to conform California's menu labeling standards to federal menu labeling standards. The author states that a previous bill that initiated menu labeling requirement in California, SB 1420 (Padilla), Chapter 600, Statutes of 2008, was part of a comprehensive effort to combat the growing obesity epidemic facing the state and advanced a nationwide conversation regarding the benefits of menu labeling. SB 1420 required restaurant chains with 20 or more locations to provide nutritional information on their menus and menu boards. In addition, SB 1420 required restaurant chains with 20 or more locations in California to make nutritional information, including sodium, saturated fat, caloric and carbohydrate content available to customers under specified circumstances. CTW:mw 5/16/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE CONTINUED SB 20 Page 5 **** END **** CONTINUED