BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SB 912 (Mitchell)
          As Amended  April 21, 2014
          Majority vote 

           SENATE VOTE  :28-6  
           
           BUSINESS & PROFESSIONS    11-1  APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Bonilla, Bocanegra,       |Ayes:|Bocanegra, Bradford, Ian  |
          |     |Campos, Dickinson,        |     |Calderon, Campos, Eggman, |
          |     |Eggman, Gordon, Hagman,   |     |Gomez, Holden, Linder,    |
          |     |Maienschein, Skinner,     |     |Pan, Quirk,               |
          |     |Ting, Wilk                |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Jones                     |Nays:|Gatto, Bigelow, Donnelly, |
          |     |                          |     |Jones, Wagner             |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Repeals the 2015 sunset date for existing law  
          requiring operators of vending machines on state property to  
          offer at least 35% of food, and approximately 66% of beverages,  
          in a vending machine to meet accepted nutritional guidelines and  
          other nutritional standards, as specified, and makes other  
          technical or nonsubstantive changes.   

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, as the current requirements have been in place for  
          several years, neither removing nor extending the nutrition  
          requirements are likely to have any significant fiscal impact on  
          vending machine sales or on special fund revenue to the Vending  
          Stand Fund (VSF) and the Business Enterprise Vending Machine  
          Account (BEVMA).

          The state Department of Rehabilitation (DOR) administers the  
          operation of concessions, including vending machines located on  
          state property through the Business Enterprise Program (BEP) and  
          through a contracting program.  Concessions are operated by  
          blind vendors.  Revenues are deposited into the VSF and the  
          BEVMA in the Special Deposit Fund. 

          The department indicates that revenues attributable to the  








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          operation of vending machines on state property were over $9.5  
          million in the most recent fiscal year, resulting in deposits of  
          over $510,000 to the VSF.  These amounts do not include vending  
          machines on state property which are combined with cafeterias,  
          snack bars, or vending stands, nor do they include vending  
          routes that contain a combination of state, federal, or county  
          locations, all of which could not be determined.  The department  
          also indicates that commissions from state locations resulted in  
          deposits of $176,303 to the BEVMA.  

           COMMENTS  :   

          1)Purpose of this bill.  This bill will permanently require food  
            and beverages offered for sale in a vending machine on state  
            property to meet specified nutritional standards.  According  
            to those guidelines, 35% of food options must meet accepted  
            nutritional guidelines, at least one-third of beverages must  
            meet accepted nutritional guidelines, and a separate one-third  
            of the beverages must meet either accepted nutritional  
            guidelines or contain a specified number of calories.  Without  
            this change, these nutritional requirements would expire in  
            2015.  This bill is sponsored by the California Pan-Ethnic  
            Health Network.

          2)Author's statement.  According to the author's office, "[This  
            bill] 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.  More than half of adults and  
            teens in the state are either overweight or obese.  The number  
            of people diagnosed with diabetes rose nearly 29% from 2003 to  
            2009.  The treatment of obesity related diseases increases our  
            health care costs and has a profound impact on workplace  
            productivity.  In California, lost productivity and medical  
            care costs of the consequences of obesity, overweight and  
            physical inactivity are estimated to be $52 billion annually;  
            employers and taxpayers bear much of these costs.      

            "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,  








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            vending machines, and work-sponsored events frequently  
            determine what people eat throughout the day.  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."

          3)Nutritional guidelines.  SB 441 (Torlakson), Chapter 597,  
            Statutes of 2008, required vendors who operate or maintain  
            vending machines on state property to offer food and beverages  
            that meet a specified percentage of state accepted nutritional  
            guidelines.  According to statute, the percentage of compliant  
            foods required increased automatically in 2009 and 2011.  This  
            bill simply extends the current food and beverage standards by  
            deleting the current sunset date for specified food and  
            beverage nutritional requirements.  It does not change or  
            alter the current accepted nutritional guidelines. 

          4)Vending machine operations.  Currently, a large portion of  
            vending machines operated in state-owned or state-leased  
            buildings are run by the Blind Enterprise Program (BEP),  
            administered by the DOR.  In 1936, federal legislation titled  
            the Randolph-Sheppard Act was passed authorizing the BEP.   
            This program was intended to provide jobs for people who are  
            "legally" blind.  Under federal and state guidelines those  
            individuals considered legally blind are given priority in  
            operating food services facilities within federal and state  
            buildings. 

          5)Federal Health and Sustainability Guidelines.  The desire to  
            include healthier food options in vending facilities on  
            government property is not unique to California.  In 2010, the  
            United States Department of Health and Human Services and the  
            United States General Services Administration's began a  
            collaboration to create the Health and Sustainability  
            Guidelines for Federal Concessions and Vending Operations.   
            The goal of the guidelines is to assist federal contractors in  
            increasing healthy food and beverage choices and sustainable  
            practices at federal worksites.  Those federal agencies are  
            currently in the process of revising and updating the 2010  
            guidelines for a 2015 edition.  


           Analysis Prepared by  :    Elissa Silva / B., P. & C.P. / (916)  
          319-3301 








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