BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 302
          Author:   Cannella (R), et al.
          Amended:  5/28/13
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  9-0, 5/1/13
          AYES:  Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,  
            Jackson, Monning

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/13
          AYES:  De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    School cafeterias:  cafeteria fund

           SOURCE  :     Author


           DIGEST  :    This bill implements various 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 and that the  
          Education Audit Appeals Panel (EAAP) revise the audit guide to  
          include guidance on what school districts may or may not do with  
          a cafeteria fund. This bill requires the California Department  
          of Education (CDE) to prepare simplified guidelines that address  
          acceptable and unacceptable charges to cafeteria funds, as  
          specified, and post on its Internet Web site all enforcement  
          actions for the misappropriation of these funds. This bill also  
          requires school districts to maintain all financial records  
          related to their cafeteria funds for 5 years.

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           ANALYSIS  :    

          Existing law:

          1. Provides that the cafeteria fund shall be used only for those  
             expenditures authorized by the governing board as necessary  
             for the operation of school cafeterias, including, but not  
             limited to, expenditures 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. 

          2. Allows a school district with more than 100,000 average daily  
             attendance to enter into an agreement with its associated  
             student body to share revenues generated by the joint sale of  
             items between the cafeteria and an associated student body  
             student store. 

          3. Provides that revenues received by the school food service  
             shall be used only for the operation or improvement of the  
             food service and that expenditure of school food service  
             revenues shall be in accordance with the financial management  
             system established by the state agency.  

          This bill:

           1. Requires cafeteria fund expenditures to be included as part  
             of annual compliance audits for local educational agencies.

           2. Requires the Department of Education (CDE) to assess its  
             food services workload and staffing needs for purposes of  
             carrying out the state's oversight responsibilities in  
             accordance with federal law and regulations adopted by the  
             United States Department of Agriculture and shall request  
             sufficient federal funding to hire the appropriate number of  
             staff based on that assessment.

           3. Repeals the provision in existing law allowing a school  
             district with over 100,000 average daily attendance to enter  
             into an agreement with its associated student body to share  
             revenues generated by the joint sale of items between the  
             cafeteria and an associated student body student store.


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           4. Requires the CDE to prepare simplified guidelines that  
             address most of the common acceptable and unacceptable  
             charges to cafeteria funds and post on its Web site all  
             enforcement actions for the misappropriation of these funds.

           5. Requires school districts to maintain all financial records  
             related to its cafeteria fund for five years.

           6. Provides that Chapter 3 of Part 23 of the Education Code  
             (commencing with Section 38000) regarding school cafeterias  
             does not authorize a school district to charge a food service  
             program any charge prohibited by state or federal law or  
             regulation or guidance.

           7. Repeals the provision in existing law allowing the governing  
             board of a school district to establish and maintain a  
             cafeteria fund reserve for the purchase, lease, maintenance,  
             or replacement of cafeteria equipment.

           8. Provides that a school district shall not withhold from its  
             food service director any financial records involving school  
             nutrition programs.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee, 

             Guidelines and Enforcement Actions:  Staff costs of up to  
             $31,000 for up to 0.25 personnel year for the CDE to prepare  
             simplified guidelines, and to post guidelines and enforcement  
             actions on the CDE Web site. 

             Audit Guide:  Potential costs to the EAAP are unclear. 

             Mandate:  Requiring school districts to maintain all  
             financial records related to cafeteria funds would impose a  
             potentially significant new reimbursable mandate.

           SUPPORT  :   (Verified  5/28/13)

          California Food Policy Advocates



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          PQ:k  5/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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