BILL ANALYSIS Ó SB 912 Page 1 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 SB 912 Page 2 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, SB 912 Page 3 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 SB 912 Page 4 FN: 0004415