BILL ANALYSIS �
AB 626
Page 1
Date of Hearing: May 24, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 626 (Skinner) - As Amended: May 15, 2013
Policy Committee: Education
Vote:6-0
Health 18-1
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill makes the following changes to school nutrition
requirements, primarily for the purpose of conforming to the
federal Healthy Hunger-Free Kids Act of 2010 (HHFK Act):
1)Requires meals made available under the After School Education
and Safety (ASES) program to conform to the United States
Department of Agriculture's (USDA) nutrition standards for
at-risk afterschool meal component or the National School
Lunch (NSL) program.
2)Repeals a school district's authority to do the following
related to its cafeteria fund (CF):
a) Establish one or more accounts within its CF.
b) Make expenditures from the CF for the construction,
alteration, or improvement of a central food processing
plan, and for the lease or purchase of vehicles used
primarily in connection with the plant.
3)Authorizes a school district or two or more school districts
governed by boards of identical personnel to make expenditures
from the CF for the purchase and installation of additional
preparation, cooking, or service equipment for a kitchen,
including the lease or purchase of vehicles solely used in
connection with a kitchen or central food processing plant, as
specified.
4)Repeals statute authorizing a school district with an average
daily attendance of over 100,000 to expend money from its CF
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generated from the joint sale of items between the cafeteria
and an associated student body store, as specified.
FISCAL EFFECT
GF/98 cost pressure, likely in the hundreds of thousands to low
millions, to backfill school districts for costs associated with
the lease, purchase, or maintenance of cafeteria equipment. To
the extent districts were using CF reserves for this purpose and
this bill now prohibits this use, district may seek additional
funds from the state.
SUMMARY CONTINUED
5)Requires the cost of the lease or purchase of cafeteria
equipment and of vending machines (installation and housing of
them) to be a charge against the CF. Further requires the
school district 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
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 only food, or only beverages,
or both that comply with state and federal competitive food
laws and regulations.
6)Authorizes a school district to apply the costs of telephone
charges against the CF provided the district complies with
federal and state law.
7)Repeals statute authorizing school districts to maintain a CF
reserve for purchase, lease, maintenance, or replacement of
cafeteria equipment, which enables these funds to be
accumulated from year to year until expended for these
purposes.
8)Clarifies the sale of food and beverages that comply with
state and federal nutrition standards are to be sold at
elementary, middle and, high schools from one-half hour before
the start of the schoolday to one-half hour after the
schoolday. Conversely, this bill requires all non-compliant
food and beverages sold at these schools to be sold beginning
at least one-half hour after the end of the schoolday and off
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premises.
9)Repeals nutrition standards compliance requirements related to
monitoring and reporting conducted by the Superintendent of
Public Instruction (SPI) and instead, requires the State
Department of Education (SDE) to conduct compliance monitoring
in conformity with USDA's administrative review process as
defined in January 2012.
10)Repeals the Linking Education, Activity, and Food Pilot grant
program.
COMMENTS
1)Background . Existing law requires each school district or
county office of education maintaining any of grades K-12 to
provide one nutritionally adequate free or reduced-price meal
to a needy pupil during each schoolday. Statute further
defines nutritionally adequate meal as a breakfast or lunch
that qualifies for reimbursement under the federal child
nutrition program.
In December 2010, the federal government enacted the HHFK Act,
which establishes new nutritional requirements for the school
breakfast program (beginning July 1, 2013) and the national
school lunch program (beginning July 1, 2012). The new
requirements include more of an emphasis on whole grain,
fruits and vegetable offerings and narrow caloric count
requirements determined for age groups. For example, local
education agencies (LEAs) must meet a weekly requirement of
vegetable subgroup offerings (i.e., dark green, orange,
legumes) for these meal programs. Also, students are required
to select a fruit or vegetable to receive reimbursement for a
breakfast or lunch meal. This bill updates state statute to
reflect the vegetable subgroup offerings.
Under the existing federal Child and Adult Care Food Program,
after school programs have been able to be reimbursed for
serving healthy snacks. The HHFK Act expanded federal
reimbursement through this program to also include meals.
Under current state law, ASES Programs must agree to provide
snacks that conform to the state's current nutrition standards
for competitive foods. However, the law is silent on meals
provided through these programs. This bill requires meals
served through the ASES program to conform to the nutrition
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standards of the at-risk afterschool component or the National
School Lunch program.
2)Purpose . The author argues this bill, sponsored by the
Superintendent of Public Instruction, is necessary to conform
to the federal HHFK Act. Specifically, the author states:
"Improving child nutrition is one of the focal points of the
HHFK Act. Across the country, schools serve meals on a daily
basis to more than 31 million children. Unfortunately, one out
of every three children is now considered overweight or obese.
The HHFK Act represents the nation's continued commitment to
provide all children with nutritious food in schools, with an
emphasis on foods that are healthy.
"In addition to setting nutritional standards, the HHFK Act
also regulates how nutritional programs operate. For example,
[it] sets policies on what expenses are allowable using
cafeteria funds and limits the amount of reserves in cafeteria
funds. The HHFK Act also sets improved oversight policies that
will ensure that students are being provided with nutritious
meals."
3)Senate Office of Oversight and Outcomes (SOOO) report on
Cafeteria Funds (CFs) . In February 2013, SOOO released a
report entitled: Food Fight: Small Team of State Examiners No
Match for Schools that Divert School Meal Funds. The report
charges school districts are "illegally dipping into student
meal funds, misappropriating millions of dollars intended to
feed California's poorest children." Specifically, the report
states: SDE "has ordered eight districts to repay nearly $170
million to student meal programs. Perhaps more troubling,
department officials candidly acknowledge they have no idea
how big the problem may be and fear they may have uncovered
only a hint of the ongoing abuse?" Furthermore, SOOO states
California must pay the federal government if funding cannot
be recouped. As highlighted by the report, "if the state fails
to force repayment of misappropriations or refunds due from
food service accounts, the federal government collects the
unpaid amount from SDE. Over the past two decades, the
department has had to pay the USDA more than $3 million that
it could not recoup from food service accounts. Those bad
debts often involved agencies, such as child or adult care
centers, which had gone out of business."
Likewise, SOOO identified the following state statutes that
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were in conflict with federal law but have remained on the
books.
Existing law permits CF revenue sharing with associated
student bodies. Federal regulations no longer permit such
revenue sharing with student groups. This bill repeals this
statute in accordance with the HHFK Act.
Current law authorizes districts to establish CF for equipment
with reserves from their meal programs. The USDA does not
recognize such accounts and strictly limits cafeteria fund
surpluses to three months average expenditures of the program.
This bill repeals this state law.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081