BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
AB 626 (Skinner) - School Nutrition
Amended: July 10, 2013 Policy Vote: Education 9-0
Urgency: No Mandate: No
Hearing Date: August 12, 2013
Consultant: Jacqueline Wong-Hernandez
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 626 makes numerous changes to school nutrition
standards, primarily to conform to the federal Healthy,
Hunger-Free Kids Act. This bill also makes changes to local
authority and allowable uses of cafeteria funds, as specified.
Fiscal Impact: The majority of the provisions of this bill make
changes to local authority and program requirements implemented
at the local level, for participating schools and school
districts. These changes are unlikely to drive any significant
new cost to the state. Those being changed to comply with
federal law could result in additional costs to school
districts, but are conditions of their participation in a
program for which they receive federal funding.
Compliance monitoring: Potentially significant increased
staffing costs (Federal Funds) for the California Department
of Education (CDE) to provide program compliance monitoring.
See staff comments.
Background: Existing law establishes the After School Education
and Safety (ASES) program, consisting of before and after school
academic enrichment for pupils in kindergarten through grade 9.
ASES programs must agree that snacks made available through the
program conform to the nutrition standards for K-12 schools.
Before school programs are required to offer a breakfast meal
that meets federal child nutrition program regulations.
(Education Code § 8482.3 and § 49531)
The federal Healthy, Hunger-Free Kids Act and related
regulations established new nutritional requirements for the
school breakfast program and the national school lunch program.
The new requirements include a greater emphasis on whole grain,
fruits and vegetable offerings and limits on caloric intake for
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specific age groups. Schools are also required to provide a
serving of fruit or vegetable daily for the breakfast or lunch
meal to count as a reimbursable meal.
Existing law requires each school district to provide each needy
pupil one nutritionally adequate, free or reduced-price meal
during each schoolday, and defines a "nutritionally adequate
meal" as one that qualifies for reimbursement under the federal
child nutrition program regulations. (EC § 49550 and § 49553)
Existing law provides that cafeteria funds are to be used only
for expenditures authorized by the school district governing
board as necessary for the operation of school cafeterias,
including for the lease or purchase of additional cafeteria
equipment for the central food processing plant, vending
machines and their installation and housing, and computer
equipment and related software.
A school district's governing board may authorize the
establishment of one or more cafeteria revolving accounts.
Transfers, replenishments, and deposits between the cafeteria
fund and a cafeteria revolving account are allowed. A cafeteria
revolving account may receive and spend funds in the same manner
and for the same purposes as authorized for a cafeteria account.
The governing board of any school district, or of two or more
districts governed by the boards of identical personnel, may
make expenditures from the cafeteria fund for 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. (EC § 38091 and § 38092)
With regard to charges against district funds versus charge
against cafeteria funds, existing law provides that:
1) The cost of housing and equipping cafeterias is a charge
against the funds of the school district. However, when
the governing board of a school district deems it
necessary, the board may make the cost of the lease or
purchase of additional cafeteria equipment for a central
food processing plant, and of vending machines and their
installation and housing, a charge against cafeteria funds.
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Governing boards may at any time within five years after
the expenditure reimburse school district funds from
cafeteria funds.
2) A school district governing board may, by resolution, make
the cost of maintenance of the physical plant used in
connection with cafeterias, the cost of replacement of
equipment and the cost of specified utilities a charge
against the funds of the school district.
3) The school district governing board, or of two or more
districts governed by boards of identical personnel, may
also make the cost of the construction, alteration, or
improvement of a central food processing plant and the
installation of additional cafeteria equipment a charge
against cafeteria funds. Governing boards may at any time
within five years after the expenditure reimburse district
funds from cafeteria funds. (EC § 38100)
Existing law authorizes a school district governing board to
establish and maintain a cafeteria funds reserve for the
purchase, lease, maintenance or replacement of cafeteria
equipment, to be known as the cafeteria equipment reserve. These
funds are to be derived from the sales of food in the school
cafeterias in an amount to be determined by the governing board
and may be accumulated from year to year until expended for this
purpose. These funds may only be used for the purchase, lease,
maintenance, or replacement of cafeteria equipment. (EC §
38102)
Proposed Law: AB 626 makes numerous changes to school nutrition
standards and sales restrictions primarily to conform with the
federal Healthy, Hunger Free Kids Act. Additionally, this bill
establishes new requirements relative to use of cafeteria funds,
and deletes obsolete provisions. With regard to cafeteria funds,
this bill:
1) Repeals a school district's authority to: (a) establish one
or more revolving accounts within its cafeteria fund; (b)
transfer, replenish and deposit funds between the cafeteria
fund and a cafeteria revolving account; and, (c) make
expenditures from the cafeteria fund for the construction,
alteration, or improvement of a central food processing
plant.
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2) Modifies authority for a school district or two or more
school districts governed by boards of identical personnel
to make expenditures from the cafeteria fund to allow for
the purchase and installation of additional preparation,
cooking, or service equipment for a kitchen or central food
processing plant.
3) Removes the cost of cafeteria equipment from a charge
against district funds and, instead, requires the cost of
the lease or purchase of cafeteria equipment and of vending
machines and their installation and housing to be charged
against cafeteria funds.
4) Changes from cafeteria funds to district funds, the source
that may be used for the lease or purchase of cafeteria
equipment for a kitchen or central food processing plant,
and vending machines and their installation and housing.
5) Reduces from within five years, to the same fiscal year,
the amount of time in which a school district governing
board may reimburse school district funds from cafeteria
funds.
6) Limits the authority of school districts to approve
reimbursement for vending machines, as specified.
7) Makes various changes to requirements for the sale of food
and beverages in elementary, middle, and high school both
during and outside of the school day.
8) Requires the CDE to monitor school district compliance, in
conformity with the United States Department of Agriculture
(USDA)'s administrative review process.
9) Changes from district funds to cafeteria funds, the source
that may be used for maintenance of the kitchen facilities,
equipment, telephone charges, water, drinking water,
electricity, gas, coal, wood, fuel, oil, and garbage
disposal related to food service and delivery. Adds the
condition that the school district complies with all
applicable state and federal laws and regulations.
Related Legislation: SB 302 (Cannella) implements various
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recommendations contained in a recent report by the Senate
Office of Oversight and Outcomes regarding school cafeteria
funds, including the requirements that cafeteria funds be
audited. That bill is pending in the Assembly Appropriations
Committee.
Staff Comments: This bill makes changes to, among other things,
competitive food and beverage requirements for schools, and
specifically requires the CDE to be responsible for compliance
monitoring; whereas, existing law permits the department to
monitor. Those changes are consistent with new federal USDA
requirements which will take effect on July 1, 2015; the CDE
will be responsible for that workload, but this bill begins the
workload on January 1, 2014. The CDE has indicated that it will
likely require additional staff for the expanded compliance
monitoring, and that those positions will likely be
federally-funded.