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