BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 626| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 626 Author: Skinner (D) and Lowenthal (D), et al. Amended: 7/10/13 in Senate Vote: 21 SENATE EDUCATION COMMITTEE : 9-0, 6/19/13 AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff, Monning, Torres SENATE HEALTH COMMITTEE : 9-0, 7/3/13 AYES: Hernandez, Anderson, Beall, De León, DeSaulnier, Monning, Nielsen, Pavley, Wolk SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/30/13 AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg ASSEMBLY FLOOR : 72-3, 5/28/13 - See last page for vote SUBJECT : School nutrition SOURCE : Superintendent of Public Instruction Tom Torlakson DIGEST : This bill makes numerous changes to school nutrition standards to conform with the federal Healthy and Hunger Free Kids Act (HHFKA), implements recommendations of a Senate report relative to use of cafeteria funds, and deletes obsolete provisions. ANALYSIS : Existing law establishes the After School Education and Safety (ASES) program, consisting of before and after school CONTINUED AB 626 Page 2 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. HHFKA 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 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. 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. CONTINUED AB 626 Page 3 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 school district governing 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. School district 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. 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. This bill: 1. Repeals a school district's authority to: (a) establish one CONTINUED AB 626 Page 4 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. 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. Specifically: A. Allows afterschool programs the option to serve either supper or lunch. B. Clarifies the nutritional definition of an elementary school, middle school, and high school. C. Clarifies what food items can be sold before school and after school at an elementary school, middle school, CONTINUED AB 626 Page 5 and high school. 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. D. Clarifies what beverages can be sold before school and after school at an elementary school, middle school, and high school. For example, beverages may include fruit-based drinks that are composed of no less than 50% fruit 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. E. 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. 1. Requires the Department of Education (CDE) to monitor school district compliance, in conformity with the United States Department of Agriculture's administrative review process. 2. 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, 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 CONTINUED AB 626 Page 6 funding. Compliance monitoring . Potentially significant increased staffing costs (Federal Funds) for the CDE to provide program compliance monitoring. SUPPORT : (Verified 9/3/13) Superintendent of Public Instruction Tom Torlakson (source) Aspiranet California Black Health Network California Chiropractic Association California Food Policy Advocates California Optometric Association California State PTA Emery Unified School District John Swett Unified School District Los Angeles County Office of Education San Bernardino County District Advocates for Better Schools San Francisco Unified School District The Edible Schoolyard Project ARGUMENTS IN SUPPORT : According to the author, "The California Department of Education is required to ensure that local educational agencies participating in federal School Nutrition Programs comply with all applicable state and federal laws and regulations. HHFKA has 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. This bill makes changes to current state laws in order to comply with the new federal laws and regulations set forth by the HHFKA." ASSEMBLY FLOOR : 72-3, 5/28/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Hagman, Hall, Harkey, Roger Hernández, Jones, Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Mansoor, CONTINUED AB 626 Page 7 Medina, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NOES: Donnelly, Grove, Logue NO VOTE RECORDED: Holden, Melendez, Patterson, Waldron, Vacancy PQ:k 9/3/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED