BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                    SB 20|
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                                 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 
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             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 

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             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. 


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          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

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