BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  SB  
          912
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          SB 912  Author:  Mitchell
          As Introduced:  January 23, 2014
          Hearing Date:  April 8, 2014
          Consultant:  Paul Donahue


                                     SUBJECT  

                        State property: Vending machines

                                   DESCRIPTION
           
          This bill removes a sunset clause and thereby makes  
          permanent an existing law requiring operators of vending  
          machines on designated state property to stock them with  
          specified percentages of food and beverages that meet  
          accepted nutritional guidelines. 

                                   EXISTING LAW

           1)Requires a vendor that operates or maintains a vending  
            machine<1> on state property to offer at least 35 percent  
            of the food, and at least one-third of the beverages in a  
            vending machine that meets accepted nutritional  
            guidelines.

          2)Specifies that a separate one-third of the beverages  
          -------------------------
          <1> Under the law, "vending machine" means any mechanical  
          device the operation of which depends upon the insertion of  
          a coin or other thing representative of value and that  
          dispenses or vends a food product or beverage, but does not  
          include any mechanical device that is unable to dispense  
          any food or beverage meeting accepted nutritional  
          guidelines without physical alteration or any mechanical  
          device that solely dispenses or vends hot beverages or ice  
          cream.




          SB 912 (Mitchell) continued                               
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            offered in the vending machine shall either meet accepted  
            nutritional guidelines or be flavored milk, beverages  
            containing less than 20 calories per 12 ounce serving, or  
            beverages that are composed of at least 50 percent fruit  
            juice that may contain non-caloric sweetener. The  
            remaining one-third of the beverages offered in the  
            vending machine may be any beverage allowed by law.

          3)Provides that if a vendor operates or maintains two or  
            more vending machines that are located next to each  
            other, the requirements may be met by calculating the  
            percentage of the total food and beverages offered in all  
            of the adjacent machines.

          4)Defines "accepted nutritional guidelines" as follows:

             a)   Beverages that are the following or meet the  
               following standards:

               i)     Water.

               ii)    Milk, including, but not limited to, soy milk,  
                 rice milk, and other similar dairy or nondairy milk.

               iii)   Electrolyte replacement beverages that do not  
                 contain more than 42 grams of added sweetener<2> per  
                 20-ounce serving.

               iv)    One hundred percent fruit juice.

               v)     Fruit-based drinks that are composed of no less  
                 than 50 percent fruit juice and that have no added  
                 sweeteners.

             b)   Food that meets the following standards:

               i)     Not more than 35 percent of its total calories  
                 are from fat, except that this does not apply to  
                 nuts, seeds, or whole grain products.

               ii)    Not more than 10 percent of its total calories  
               ----------------------
          <2> "Added sweetener" means any additive that enhances the  
          sweetness of a beverage, including, but not limited to,  
          added sugar, but does not include the natural sugar or  
          sugars that are contained within the fruit juice that is a  
          component of the beverage.





          SB 912 (Mitchell) continued                               
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                 are from saturated fats.

               iii)   Not more than 35 percent of its total weight is  
                 from sugar, except that this does not apply to  
                 fruits and vegetables.

                                    BACKGROUND
           
           1)Purpose  : The author states that healthier food options in  
            state buildings will help reduce the prevalence and cost  
            of diet-related diseases, while promoting the well-being  
            of state employees and the general public. The author  
            states further that California has been a leader in  
            promoting healthy choices in the vending machines on  
            state property. Since 2008, state law has required that  
            one-third of beverages, and thirty-five percent of the  
            food (since 2011), in vending machines on state property  
            meet minimal nutritional standards. 

          However, a January 1, 2015 sunset on current law threatens  
            to eliminate these healthier options for consumers. SB  
            912 simply preserves current law by removing the sunset  
            on the required nutritional guidelines, thereby providing  
            consumers with the continued opportunity to make healthy  
            choices. California is in the midst of an obesity and  
            diabetes epidemic and now is not the time to abandon this  
            modest but important policy, according to the author's  
            office.

          2)The author states that studies have shown a relationship  
            between the physical and social environments at the  
            workplace and the health behaviors of employees. Nearly  
            half of our waking hours are spent at the workplace, and  
            the foods available in employee cafeterias, vending  
            machines, and work-sponsored events frequently determine  
            what people eat throughout the day. As one of the first  
            states in the country to implement nutrition standards  
            and prohibit sugar-sweetened beverages in our schools,  
            California should continue to be a leader in creating  
            healthy food environments.

           3)Support  : The supporting organizations stress that we need  
            to make sure that California does not go backwards from  
            the progress it has made in combating the obesity  
            epidemic. More than half of adults and teens in the state  
            are either overweight or obese. Supporters also note that  





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            the foods available in employee cafeterias, vending  
            machines, and work-sponsored events frequently determine  
            what people eat throughout the day. They also note that  
            today, in addition to the existing requirements on  
            vending machines in state buildings, 15 cities and  
            counties in California have adopted nutritional standards  
            for vending machines on government property. They believe  
            that California should continue to be a leader in  
            creating healthy food environments. 

           4)Legally blind vendor program  : The California Department  
            of Rehabilitation (DOR) provides an opportunity for  
            legally blind individuals to become independent food  
            service professionals under the federal Business  
            Enterprise Program (BEP).<3> Under federal and state  
            guidelines those individuals considered legally blind are  
            given priority in operating food services facilities  
            within federal and state buildings. According to DOR,  
            these vendors earn a median net monthly income of  
            approximately $2,700. The program also provides an  
            additional 677 food service jobs to serve the thousands  
            of customers that are served each day in the 407 BEP  
            sites in California, operated by 122 BEP Vendors. 

            BEP provides DOR consumers with training in the operation  
            of cafeterias, vending stands, convenience stores, and  
            vending machine locations. The training consists of a  
            combination of classroom and operational skills training  
            at designated BEP facilities. The training program  
            emphasizes food service management, quality customer  
            service, menu planning, sanitation and safety and  
            merchandising.

           5)Suggested technical amendment  : Because this bill  
            continues indefinitely the requirement by vendors to  
            offer at least 35 percent of the food in a vending  
            machine, the author and the Committee may wish to  
            consider amending the bill to eliminate subdivision (c)  
            of Section 11005.4 of the Government Code, which appears  
            on Page, lines 3 through 7, inclusive, of SB 912. The  
          -------------------------
          <3> The BEP was created by the Randolph-Sheppard Act of  
          1936, which was enacted to "provide blind persons with  
          remunerative employment, enlarging the economic  
          opportunities of the blind, and stimulating the blind to  
          greater efforts in striving to make themselves  
          self-supporting."





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            provisions suggested for deletion would read as follows:

                 "  (c) A vendor may meet the requirements in  
                 subdivision (b) by offering 25 percent of the  
                 food in a vending machine that meets accepted  
                 nutritional guidelines by January 1, 2009, and  
                 by offering the total 35 percent of the food  
                 required to meet accepted nutritional  
                 guidelines by January 1, 2011.
                
                  (d)   (c)  If a vendor operates or maintains two  
                 or more vending machines that are located next  
                 to each other, the provisions of  subdivisions  
                 (b) and (c)   subdivision (b)  may be met by  
                 calculating the percentage of the total food  
                 and beverages offered in all of the adjacent  
                 machines."

                            PRIOR/RELATED LEGISLATION
           
          SB 1000 (Monning), 2013-2014 Session. Would establish the  
          Sugar-Sweetened Beverage Safety Warning Act, which would  
          require safety warning labels on all sugar-sweetened  
          beverages offered for sale in California. (Pending in  
          Senate Health Committee)

          AB 727 (Mitchell), 2011-2012 Session. Would have required  
          at least 50% of food and beverages offered in vending  
          machines and cafeterias located on state property to meet  
          specified nutritional guidelines by the year 2014. (Held in  
          Senate Appropriations)

          SB 490 (Alquist), Chapter 648, Statutes of 2007. Prohibits  
          schools from selling foods containing trans-fats.

          SB 441 (Torlakson), Chapter 597, Statutes of 2007. Requires  
          that at least 35 percent of the food and beverages sold at  
          vending machines in state buildings and facilities meet  
          accepted nutritional guidelines. 

          SB 12 (Escutia), Chapter 235, Statutes of 2006. Among other  
          things, imposed specified nutrition standards in elementary  
          schools, beginning July 1, 2007. 

          SB 677 (Ortiz), Chapter 415, Statutes of 2003. Restricts  
          the types of beverages that can be sold to pupils in  





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          elementary and middle or junior high schools. 

          SB 19 (Escutia), Chapter 913, Statutes of 2001. Established  
          a "comprehensive" nutrition and school health program that  
          restricts the types of foods that can be sold at schools.

           SUPPORT:   

          ACCESS Women's health Justice
          ACT for Women and Girls
          American Cancer Society Cancer Action Network
          American Federation of State, County and Municipal  
          Employees
          American Heart Association/American Stroke Association
          Asian Americans Advancing Justice - Los Angeles
          Black Women for Wellness
          California Automatic Vendors Council
          California Black Health Network
          California Center for Public Health Advocacy
          California Immigrant Policy Center
          California Latinas for Reproductive Justice
          California Medical Association
          California Pan-Ethnic Network
          California Partnership
          California Rural Legal Assistance Foundation
          California WIC Association
          Cal-Islanders Humanitarian Association
          Center for Science in the Public Interest
          Central Valley Partnership for Citizenship
          Centro Binacional para el Desarrollo Idigena Oaxaqueno -  
          Fresno
          Centro Binacional para el Desarrollo Idigena Oaxaqueno -  
          Greenfield
          Centro Binacional para el Desarrollo Idigena Oaxaqueno -  
          Los Angeles
          Chinese Progressive Association
          Clinica Msr. Oscar A. Romero
          Coalition for Humane Immigrant Rights of Los Angeles
          County Health Executives Association of California
          Congress of California Seniors
          Day One, Inc. 
          Earth Mama Healing
          El Quinto Sol
          Fresno Center for New Americans
          Fresno Interdenominational Refugee Ministries
          Guam Communications Network





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          Korean Community Center of the East Bay
          Korean Resource Center
          Latino Coalition for a Healthy California
          Libreria del Pueblo
          Los Angeles County Board of Supervisors
          Madera Coalition
          Mid-City CAN
          Pacific Islander Cancer Survivors Network
          Prevention Institute
          Roots Community Health Center/Roots Community Health  
          Alliance
          Services, Immigrant Rights, and Education Network
          South Asian Network
          SSG/Pals for Health
          Strategic Alliance for Healthy Food and Activity  
          Environments
          Street Level Health Project
          The Council of Mexican Federations
          United Taxi Workers of San Diego
          Vision y Compromiso
          Young Invincibles

           OPPOSE:   

          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee