BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1240 (Bonta) - As Amended May 4, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:


          This bill requires each school district or county office of  
          education maintaining any kindergarten through grade 12 to offer  
          breakfast at schools where at least 40% of the pupils enrolled  








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          at the school are considered "needy."  Specifically, this bill:   



          1)Requires, from July 1, 2016 to June 30, 2017, a nutritionally  
            adequate breakfast to be made available each schoolday for  
            sale or at no cost to pupils at a school where at least 40% of  
            the pupils are considered needy.  Specifies that beginning  
            July 1, 2017, this requirement applies only at schools where  
            at least 40%, but less than 60%, of the pupils enrolled are  
            needy children.


          2)Requires, from July 1, 2017 to June 30, 2018, a nutritionally  
            adequate breakfast to be made available each schoolday for  
            sale or at no cost to pupils at a school where at least 60% of  
            pupils are considered needy.   Requires breakfast to be  
            available after instruction has begun for the schoolday.   
            Specifies that beginning July 1, 2018, this requirement  
            applies only at schools where at least 60%, but less than 80%,  
            of all pupils enrolled are needy children. 


          3)Requires, on and after July 1, 2018, a nutritionally adequate  
            breakfast to be made available each schoolday at no cost to  
            pupils at a school where at least 80% of the pupils are  
            considered needy. Requires breakfast to be available after  
            instruction has begun for the schoolday.  


          4)Specifies that no pupil shall be required to consume a meal  
            and school is not required to set aside instructional time for  
            the purpose of serving breakfast.


          FISCAL EFFECT:


          1)Proposition 98/GF costs, likely in the millions, related to  








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            increased program participation and school breakfast meal  
            reimbursement rates.  Actual costs will be determined by the  
            number of meals served.  The 2013-14 state meal reimbursement  
            rate is $0.22 per meal.  For illustration, assuming a 5  
            percent increase in the number of breakfasts served, state  
            cost would be approximately $2.4 million.  

          2)General Fund (non-98) administrative costs to the California  
            Department of Education of approximately $600,000.  CDE  
            indicates they would need one limited-term position and two  
            ongoing positions to assist with breakfast menu approvals,  
            application approvals, waiver requests and monitoring.  
            Additionally, in order to meet new USDA Administrative Review  
            requirements, CDE estimates two additional consultants would  
            be needed, assuming these programs participate in the federal  
            School Breakfast program. CDE estimates are based on 151  
            school sites that currently participate in the National School  
            Lunch program but do not serve breakfast.  The sponsor of the  
            bill indicates approximately 664 schools are not serving  
            breakfast.  CDE costs could increase if participation rates  
            are in this higher range.

          COMMENTS:


          1)Background. Existing law requires local educational agencies  
            to provide one nutritiously adequate Free and Reduced Price  
            Meal (FRPM) to needy children once a day during each  
            schoolday.  A needy child is defined as a child who meets the  
            federal eligibility for FRPM.  For the free meal category,  
            household income must be at or below 130% of the federal  
            poverty guidelines.  For the reduced-price category, household  
            income must be between 130% and 185% of federal poverty  
            guidelines.  


            School meal programs are funded predominantly by the United  
            States Department of Agriculture through its National School  
            Lunch and School Breakfast Program and supplemented by state  








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            funds.  These programs are federal entitlement programs, which  
            mean that allocations are not fixed; federal funds will be  
            provided as long as recipients meet income eligibility  
            criteria.  The federal government also offers a higher  
            reimbursement rate for schools enrolling higher levels of  
            eligible students, which enables those schools to provide  
            meals to all pupils.  


            According to the CDE, in 2013-14, the state received $447  
            million in federal funds for School Breakfast Programs and  
            $1.35 billion in federal funds for the School Lunch Program.   
            State funds augmented the program by $53 million for the  
            School Breakfast Program and $101 million for School Lunch  
            Program.     


          2)Purpose. This bill requires, beginning July 1, 2016, all  
            schools where at least 40% of the pupils enrolled at the  
            school are eligible for FRPM to offer breakfast.  The  
            following year, schools with 60% FRPM eligible students are  
            required to offer breakfast with the additional requirement  
            that the meal be offered after instruction has begun.  By  
            2018, schools with at least 80% FRPM eligible students are  
            required to provide breakfast free of charge and offer the  
            meal after instruction has begun.  


            According to the sponsor, the California Food Policy Advocates  
            (CFPA), the purpose of the bill is to increase the level of  
            participation in the School Breakfast Program.  According to  
            the CDE, participation in the program is about half of the  
            participation in the School Lunch Program. 


          


          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  








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