BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 626
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Joan Buchanan, Chair
             AB 626 (Skinner and Lowenthal) - As Amended:  April 10, 2013
           
           [Note: This bill is double referred to the Committee on Health  
          and will be heard by that committee as it relates to issues  
          under its jurisdiction.]
           
          SUBJECT  :   School nutrition.

           SUMMARY  :  Makes changes to school nutrition requirements, as  
          specified. Specifically,  this bill  :  

          1)Requires that meals provided during the After School Education  
            and Safety Program conform to the state nutrition standards,  
            as specified.

          2)Prohibits governing boards from having multiple cafeteria  
            funds and revolving accounts; and, prohibits these funds from  
            being used in the construction, alteration or improvement of a  
            central food processing plant, for the installation of  
            additional cafeteria equipment for the central food processing  
            plant, and for the lease or purchase of vehicles used  
            primarily in connection with the central food processing  
            plant.

          3)Deletes an existing authorization for school districts with an  
            average daily attendance of over 100,000 to allow an  
            expenditure from the cafeteria fund a share of money agreed  
            upon by a contract, which is generated from the joint sale of  
            items between the cafeteria and an associated student body  
            student store.

          4)Specifies the cost of providing adequate housing for  
            cafeterias, including kitchen facilities, is a charge against  
            the funds of the school district; and, specifies the cost of  
            the lease or purchase of cafeteria equipment and of vending  
            machines and their installation and housing shall be a charge  
            against cafeteria funds.

          5)Requires the governing board to only approve reimbursement for  
            vending machines if one or both of the following apply:
             a)   The vending machines are owned and operated by the  








                                                                  AB 626
                                                                  Page  2

               school food services department, sell meals that qualify  
               for federal meal program reimbursement, and are equipped  
               with appropriate point of service meal counting software.
             b)   The vending machines sell food and beverages that comply  
               with state and federal competitive food laws and  
               regulations. 

          6)Prohibits governing boards from maintaining a cafeteria fund  
            reserve for purchase, lease, maintenance, or replacement of  
            cafeteria equipment.

          7)Specifies that all food and snacks sold to elementary school,  
            middle school and high school pupils from one-half hour before  
            the start of the schoolday to one-half hour after the  
            schoolday must comply with applicable federal and state  
            nutrition requirements. 

          8)Authorizes the sale of food and beverage items to elementary  
            school, middle school and high school pupils that do not  
            comply with state and federal nutrition requirements to be  
            sold by anyone if those sales occur:
             a)   Off school premises.
             b)   On school premises at least one-half hour after the end  
               of the schoolday.

          9)Prohibits the sale of food and beverage items to middle school  
            and high school pupils that do not comply with state and  
            federal nutrition requirements during a school-sponsored  
            activity after the end of the schoolday.

          10)Deletes the authorization for the Superintendent of Public  
            Instruction (SPI) to monitor school districts for compliance  
            with school nutrition standards; deletes the requirement that  
            each school district monitored, report to the SPI in the  
            coordinated review effort regarding the extent to which it has  
            complied; deletes the requirement that noncompliant school  
            districts adopt a corrective action plan; and, instead  
            specifies that compliance with the school nutrition standards  
            shall be monitored by the California Department of Education  
            (CDE) in conformity with the United States Department of  
            Agriculture's administrative review process.

          11)Deletes the Linking Education, Activity, and Food (LEAF)  
            Pilot grant program. 









                                                                  AB 626
                                                                  Page  3

          12)Deletes obsolete code sections.

           EXISTING LAW  : 

          1)Requires the California Department of Education (CDE) to  
            ensure that the nutrition levels of meals served pursuant to  
            the National School Lunch Act be of the highest quality and  
            greatest nutritional value possible. (Education Code (EC)  
            49590) 

          2)Requires each school district to provide each needy pupil one  
            nutritionally adequate, free or reduced-price meal during each  
            schoolday. (EC 49550) 

          3)Defines a "nutritionally adequate meal" as one that qualifies  
            for reimbursement under the federal child nutrition program  
            regulations. (EC 49553) 

          4)Requires the CDE to develop and maintain nutrition guidelines  
            for school lunches and breakfasts and for all food and  
            beverages sold on public school campuses. These guidelines  
            shall include recommendations for fat, saturated fat, and  
            cholesterol. (EC 49531.1) 

          5)The State Department of Education shall establish a three-year  
            pilot program in which a total of not less than 10 high  
            schools, middle schools, or any combination thereof, that  
            apply are selected to participate. Although the selection  
            process shall be essentially random, the selection process  
            shall be weighted so that the pilot program contains  
            participants that, as a group, are representative of the  
            geographic diversity of the state. The pilot program shall  
            commence in the fall of the 2002-03 school year. Participating  
            districts will be eligible to receive a grant pursuant to  
            subdivision (c) of Section 49433. Districts will be eligible  
            for an increased reimbursement rate for free and reduced price  
            meals served at participating high schools as set forth in  
            Section 49430.5. (EC 49433.7)

          6)Authorizes a school district maintaining at least one  
            elementary or middle school or high school that is  
            participating in the pilot program pursuant to Section 49433.7  
            may convene a Child Nutrition and Physical Activity Advisory  
            Committee that shall develop and recommend to the governing  
            board of the school district for its adoption, school district  








                                                                  AB 626
                                                                  Page  4

            policies on nutrition and physical activity. (EC 49433)

          7)The governing board of any school district with an average  
            daily attendance of over 100,000 may allow as an expenditure  
            from the cafeteria fund or account a share of money agreed  
            upon pursuant to a contract, which is generated from the joint  
            sale of items between the cafeteria and an associated student  
            body student store. The expenditure must result from an  
            agreement entered into by the cafeteria and the associated  
            student body in which pupils will participate in the operation  
            of the store. (EC 38092)  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :    Federal Healthy, Hunger-Free Kids Act of 2010.    
          This bill comes at the same time as a major overhaul of federal  
          nutrition standards for the National School Lunch Program  
          (NSLP). The federal Healthy, Hunger-Free Kids Act of 2010, which  
          was signed into law by President Obama in December of 2010,  
          makes the first significant changes to the nutritional  
          regulations over the NSLP since 1995. In January 2012, the  
          United States Department of Agriculture released the Final Rule  
          Nutrition Standards for the National School Lunch and School  
          Breakfast Programs in accordance with the new federal  
          legislation. As part of the new regulations, schools are  
          required to serve food options that align with meal patterns  
          specifying acceptable quantities of different types of food. The  
          Institute of Medicine recently identified such an approach as a  
          method to increase the amount of fruits and vegetables  
          individuals eat while decreasing the level of saturated fat,  
          sodium and carbohydrates. As a result of the new meal patterns,  
          schools must provide students enough servings of the appropriate  
          food categories as required by the Final Rule Nutrition  
          Standards. 

          According to the author, as the State Educational Agency for  
          federal School Nutrition Programs, the California Department of  
          Education (CDE) is required to ensure that Local Educational  
          Agencies (LEA) participating in federal School Nutrition  
          Programs comply with all applicable California State and federal  
          laws and regulations.  The Federal Healthy, Hunger-Free Kids Act  
          of 2010 (HHFKA) has set a new set of nutritional standards for  
          elementary, middle, and high schools. In addition to healthier  
          nutritional standards, the HHFKA also aims at increasing access  
          for students and improving oversight of Nutritional programs.  








                                                                  AB 626
                                                                  Page  5

          This bill makes changes to current state laws in order to comply  
          with the new federal laws and regulations set forth by the  
          Healthy, Hunger-Free Kids Act of 2010.  Specifically the  
          proposal makes the following changes in order to comply with the  
          Healthy, Hunger-Free Kids Act:
             1.   Allows afterschool programs the option to serve meals,  
               such as dinner.
             2.   Clarifies what food items can be sold one-half hour  
               before school and one-half hour after school at an  
               elementary school, middle school, and high school.  Food  
               items sold during those time periods must meet the new  
               federal standards and regulations.
                  a.        For example, items may include full meals,  
                    individually sold dairy or whole grain foods, and  
                    individually sold portions of nuts, nut butters,  
                    seeds, eggs, cheese packaged for individual sale,  
                    fruit, vegetables that have not been deep fried, and  
                    legumes. 
             3.   Clarifies what beverages can be sold one-half hour  
               before school and one-half hour after school at an  
               elementary school, middle school, and high school.
                  a.        For example, beverages may include,  
                    fruit-based drinks that are composed of no less than  
                    50 percent fruit juice and have no added sweetener,  
                    vegetable-based drinks that are composed of no less  
                    than 50 percent vegetable juice and have no added  
                    sweetener, drinking water with no added sweetener,  
                    two-percent-fat milk, one-percent-fat milk, nonfat  
                    milk, soy milk, rice milk, and other similar nondairy  
                    milk.
             4.   Restricts the sale of food items and beverages that do  
               not meet federal standards. The sale of those items must  
               take place off and away from school premises or take place  
               on school premises at least one-half hour after the end of  
               the school day.
             5.   Restricts the use of cafeteria funds to purchase land or  
               buildings or to build buildings.

           Federal Compliance and Code Clean-Up  : This bill makes several  
          changes to bring California's school cafeteria and nutrition  
          laws into compliance with the recent changes in Federal  
          nutrition regulations in addition to making several substantive  
          changes that are not specifically related to the Federal  
          compliance issues. The compliance changes include those  
          involving the co-mingling of cafeteria fund accounts and those  








                                                                  AB 626
                                                                  Page  6

          specifying that cafeteria funds cannot be used to purchase land  
          or otherwise modernize cafeteria buildings; and, the deletion of  
          other sections that authorize co-mingling of student body funds  
          with cafeteria funds.  Existing law authorizes the sale of  
          specified beverages from 30 minutes before the start of the  
          school day until 30 minutes after the end of the school day.  
          This measure specifies that only food items that meets the state  
          and federal nutrition standards may also be sold from 30 minutes  
          before the start of the school day until 30 minutes after the  
          end of the school day. The bill also specifies that if food  
          sales are at least 30 minutes after the end of the school day,  
          students do not need sell the food to comply.  The bill also  
          authorizes afterschool programs to serve meals in addition to  
          snacks, and specifies that those meals must meet the state  
          nutrition requirements.  Further the bill makes several changes  
          to the law to clean up duplicative and obsolete code sections.  
          The measure deletes references to a school nutrition pilot  
          program that was previously funded and ended in 2004.  Lastly  
          the bill specifies that school nutrition programs shall be  
          monitored by the California Department of Education (CDE) in  
          conformity with the United States Department of Agriculture's  
          administrative review process.

           Requiring Vending Machines to Sell Food  :  This measure requires  
          that school cafeteria funds only be used to lease, purchase,  
          install or house vending machines if the machines are owned and  
          operated by the school food services department, and the vending  
          machines sell meals that qualify for federal meal program  
          reimbursement and are equipped with appropriate point of service  
          counting software; OR, the vending machines sell food and  
          beverages that comply with state and federal competitive food  
          laws and regulations.  This means that vending machines paid for  
          with cafeteria funds would now be required to sell food, if they  
          are to sell beverages.  In other words, school cafeteria funds  
          could not be used for vending machines that only sell beverages.  
          The author's intent is to authorize the sale of food or  
          beverages, and not require the sale of both.  Committee staff  
          recommends the bill be amended to specify that vending machines  
          paid for with cafeteria funds can only sell food, beverages or  
          both that comply with state and federal nutrition standards. 

           Nutrition Requirements for After School Programs  :  This bill  
          requires afterschool programs that serve meals (lunch or dinner)  
          to comply with state nutrition standards.  State nutrition  
          standards only specify the requirements for a la carte foods and  








                                                                  AB 626
                                                                  Page  7

          lay out specific calorie content for these a la carte foods.   
          Requiring meals to comply with these a la carte nutrition  
          requirements would be difficult since most meals have higher  
          calorie content than what is allowable for a la carte foods.   
          The author has indicated that the intent is to authorize  
          afterschool programs to offer a meal under the USDA's At-Risk  
          Afterschool Meal Component of the Child and Adult Care Food  
          Program and be reimbursed by that program.  Committee staff  
          recommends the bill be amended to authorize afterschool programs  
          to offer a meal if they comply with the nutrition requirements  
          of the USDA's At-Risk Afterschool Meal Component of the Child  
          and Adult Care Food Program or the National School Lunch  
          Program.
                                                                            
          Committee Amendments  : 
             1)   Specify that vending machines paid for with cafeteria  
               funds can only sell food, beverages or both that comply  
               with state and federal nutrition standards.
             2)   Authorize afterschool programs to offer a meal if they  
               comply with the nutrition requirements of the USDA's  
               At-Risk Afterschool Meal Component of the Child and Adult  
               Care Food Program or the National School Lunch Program.
             3)   To clarify a drafting error, authorize the cost of  
               maintenance of kitchen equipment to be charged against  
               cafeteria funds.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          State Superintendent of Public Instruction Tom Torlakson  
          (Sponsor)
          California Black Health Network
          California Chiropractic Association
          California Food Policy Advocates
          California Optometric Association

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Chelsea Kelley / ED. / (916) 319-2087 










                                                                  AB 626
                                                                  Page  8