BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                         Senator Sheila J. Kuehl, Chair


          BILL NO:       SB 1420                                      
          S
          AUTHOR:        Padilla                                      
          B
          AMENDED:       As introduced                               
          HEARING DATE:  March 26, 2008                               
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          FISCAL:        Appropriations                               
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          CONSULTANT:                                                 
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          Park/sh                                                     
          0
                                        

                                     SUBJECT
                                         
                    Food facilities: nutritional information

                                     SUMMARY  

          This bill requires food facilities, as defined, to make  
          specified nutritional information available to customers. 

                             CHANGES TO EXISTING LAW  

          Existing federal law:
          Existing federal law establishes the Nutrition Labeling and  
          Education Act, which requires all packaged foods sold  
          outside of restaurants to include nutritional content  
          information on the packaging.  Existing federal law also  
          requires restaurants to provide nutritional content  
          information on food items for which a nutrient or  
          health-related claim is made by the restaurant.

          Existing state law:
          Existing state law establishes the California Retail Food  
          Code (CRFC), which imposes various health and safety  
          requirements on restaurants, and makes violations of these  
          requirements subject to criminal penalties.  CRFC  
          establishes the authority of local environmental health  
                                                         Continued---



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          jurisdictions to adopt a food safety inspection program  
          with oversight by the State Department of Public Health.
          
          This bill:
          This bill would require each food facility that shares the  
          same trade name with at least fourteen other food  
          facilities in the state, regardless of ownership, to make  
          nutritional information available to consumers for all  
          standard menu items, defined as items that are on a menu  
          for six months or longer, exclusive of condiments,  
          alcoholic beverages, and other items placed on a table or  
          counter for general use without charge.  The nutritional  
          information that would be required would include, but not  
          be limited to, total calories, saturated fat, trans fat,  
          carbohydrates and sodium.  

          The bill would also require a conspicuous statement  
          regarding recommended limits for saturated fat and sodium  
          in a 2,000 calorie daily diet on each page of a menu.  
          
          Food facilities that use only a menu board would be  
          required to provide, on the menu board, the total number of  
          calories per item and to make the nutritional information,  
          mentioned above, available upon request, in writing, and at  
          the point of sale.  Food facilities that use a menu board  
          in addition to a printed menu would be allowed to limit the  
          nutritional information listed on the menu board to the  
          total number of calories per item.

          The bill would require nutritional information to be based  
          on verifiable analyses and would allow certain disclaimers  
          to be provided on menus and menu boards.  The bill would  
          exempt certified farmers' markets, commissaries, licensed  
          health care facilities, mobile support units, public and  
          private school cafeterias, restricted food service  
          facilities, temporary food facilities, vending machines,  
          and grocery stores, as specified, from the provisions of  
          the bill, and would provide for enforcement and penalties.

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee analysis  
          of a similar measure, the bill would result in one-time  
          costs in excess of $100,000 for the Department of Public  
          Health to develop regulations to clarify implementation and  




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          enforcement, and on-going annual costs of approximately  
          $100,000 to maintain and update the list of applicable  
          restaurants and to monitor local enforcement activities.

                            BACKGROUND AND DISCUSSION  

          Purpose of the bill
          The author believes that, because Americans are  
          increasingly relying on restaurants for their meals, it is  
          vital that nutrition information be available at the point  
          of purchase in order that consumers may make an informed  
          decision.  The author posits that few people would guess  
          that a tuna salad sandwich from a typical deli has 50  
          percent more calories than a roast beef sandwich with  
          mustard; that a small milkshake has more calories than a  
          Big Mac; or that the barbecue ribs on a children's menu has  
          fewer calories than chicken nuggets. The author further  
          highlights that appetizers and desserts can account for  
          more than half of one's daily calorie intake, such as a  
          slice of carrot cake from the Cheesecake Factory (at 1,560  
          calories), or a caf? mocha and pastry from Starbucks (at  
          1,000 calories).

          The author states that Americans rank nutrition second only  
          to taste in determining their food purchases and that  
          studies have found that consumers make more healthful  
          choices when nutrition information is placed directly on  
          the menu.  The author underscores that basic nutritional  
          information is extremely important to consumers who are  
          dealing with chronic diseases like heart disease and  
          diabetes, and believes that this measure is an important  
          step in fighting the growing obesity epidemic.
          
          Eating out
          Studies have shown that eating out more frequently is  
          associated with obesity, higher body fat or higher BMI, and  
          that eating more fast-food meals is linked to eating more  
          calories, more saturated fat, fewer fruits and vegetables,  
          and less milk. 
          According to a report issued by the Center for Science in  
          the Public Interest (CSPI) in 2003, Americans spent about  
          46 percent of their food dollars at restaurants (source:  
          National Restaurant Association), compared with 26 percent  
          in 1970.  According to the USDA, calories consumed at  
          restaurants (or away-from-home foods) as a part of the diet  




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          had doubled from 18 percent to 34 percent by 1995. 

          Obesity epidemic 
          Obesity has reached epidemic proportions in the United  
          States, affecting one-third of all adults, 27 percent of  
          children, and 21 percent of adolescents.  Former Surgeon  
          General David Satcher has stated that, "Overweight and  
          obesity may soon cause as much preventable disease and  
          death as cigarette smoking."
          
          A recent RAND study (March, 2002) reported that, "The  
          health risks of obesity [are] worse than smoking, drinking  
          or poverty."  The study reports that obesity is linked to  
          higher medical costs and very high rates of chronic  
          illnesses, higher than living in poverty, and much higher  
          than smoking or drinking.

          In some school districts in California, 50 percent of the  
          students are overweight. Overweight youth face increased  
          risks of many serious health problems that, traditionally,  
          have not commonly occurred during childhood, including type  
          2 diabetes, high blood pressure, arthritis, and  
          osteoporosis.  More than 80 percent of obese adolescents  
          remain obese as adults, with even more severe consequences,  
          including higher risks of heart disease and cancer.

          California Obesity Prevention Plan
          In September 2006, the Department of Health Services  
          released the California Obesity Prevention Plan to serve as  
          a guide for each sector of society to take part in creating  
          the shift to healthy eating and active living.  The plan  
          identifies recommendations for action for all sectors to  
          make sustainable changes in physical activity and food  
          environments. The plan organized strategic actions around  
          four goals, including "supporting local assistance grants  
          and implementing multi-sectoral policy strategies to create  
          healthy eating and active living community environments."  
          (Goal 3) Within the framework of this larger goal, the plan  
          recommends posting calorie information per serving on all  
          menus and menu boards at restaurants and encourage healthy  
          food options on all menus. 

          Governor's veto
          In October 2007, Governor Schwarzenegger vetoed SB 120  
          (Padilla), a measure identical to this one. The veto  




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          message stated: 

               As written, SB 120 would place burdens and costs upon  
               some restaurant owners while imposing no burdens or  
               costs on others. In addition, this bill provides  
               restaurants with little flexibility for how they  
               provide consumers with nutritional information. From  
               brochures to tray liners, many restaurants are  
               responding to consumer demand by providing nutritional  
               information to their customers in a variety of ways.  
               Further, more and more companies are making detailed  
               information available online, allowing consumers to  
               compare one restaurant's healthy dining options to  
               another.


               Inflexible mandates applied sporadically are not an  
               effective way to continue our
               progress in educating Californians about healthy  
               living. Restaurants throughout
               California have demonstrated that they are committed  
               to working with me to promote this goal. In vetoing  
               this bill, I am calling upon the restaurant community  
               to reiterate this commitment and continue to work with  
               me, the proponents of this bill, and all Californians  
               in developing effective ways to promote healthy dining  
               options.

          Related legislation
          AB 2572 (Parra) of 2008 would require chain restaurants  
          with more than 20 locations in California to disclose  
          prescribed nutrition information for standard food items by  
          several methods within the facility. The bill would allow  
          food facilities to provide calorie information only under  
          specified circumstances. The bill would provide for  
          enforcement and penalties after January 1, 2010. Pending in  
          Assembly Health.

          SB 120 (Padilla) of 2007 was identical to this measure.  
          Vetoed by the Governor.

          SB 180 (Migden) of 2007 would have required a food facility  
          to make nutritional information available to the consumer  
          upon request. These provisions were amended out of the  
          bill.




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          Prior legislation
          SB 679 (Ortiz) of 2003 would have required restaurants to  
          make nutritional information immediately available to  
          customers, upon request, in a take-away form, and post a  
          sign stating that the information is available. This bill  
          failed passage in the Assembly Health Committee.

          SB 1171 (Ortiz) of 2004 would have required restaurants to  
          make nutritional information immediately available to  
          customers, upon request, in a take-away form, and post a  
          sign stating that the information is available. The bill  
          was never heard.

          Arguments in support
          Supporters like the California Center for Public Health  
          Advocacy and the American Cancer Society write that people  
          need access to nutritional information to make informed  
          choices about diets. Supporters believe that, without the  
          type of information that SB 1420 provides, people are  
          forced to guess about a food's nutritional content, and  
          those guesses are often wrong. They believe the bill  
          ensures that barriers to information are minimized and that  
          consistency would exist across facilities.  

          The Alameda County Board of Supervisors and the Berkeley  
          City Council write that approximately two-thirds of the  
          largest chain restaurants do not provide any nutritional  
          information about their foods and that the current system  
          of voluntary labeling at restaurants is inadequate given  
          the large role that restaurant foods play in Americans'  
          diets.

          The California Medical Association (CMA) writes that  
          obesity results from a complex interaction of many  
          dynamics-socio-economic, environmental, cultural, genetic,  
          and physiological, and, therefore, no individual approach  
          is enough. CMA states that, in addition to counseling  
          patients about the importance of healthy eating and  
          exercise, arming consumers with more information about the  
          nutritional value of food they consume outside the home is  
          an appropriate way to address the obesity epidemic.

          Arguments in opposition
          Several restaurants and individuals write that this measure  




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          does not take into consideration the realities and  
          impracticality of a one-size-fits-all menu labeling  
          mandate. Some opponents instead support a competing  
          measure, AB 2572 (Parra), which would apply to chain  
          restaurants of 20 or more and would allow restaurants to  
          provide information to their consumers in the ways they  
          believe work best for both their customers and the  
          restaurant. 

          The California Retailers Association and the California  
          Restaurant Association, which support AB 2572 (Parra),  
          state that many California restaurants already provide  
          nutritional information to their customers, and that, while  
          they share the goal of this measure, they disagree on the  
          "mechanics."

          The California Chamber of Commerce (CalChamber) writes that  
          providing nutritional information on all foods served is  
          impractical as there are hundreds, if not thousands, of  
          possible combinations of foods that can be ordered in  
          restaurants. CalChamber also states that, while experts  
          acknowledge that obesity is a function of how much an  
          individual consumes in relation to how much physical  
          activity is undertaken, responsibility still lies with the  
          individual, and that providing nutritional information will  
          not prevent obesity. CalChamber also writes that it will be  
          costly for restaurants to determine the nutritional content  
          of every menu item and have their menus reprinted, and that  
          some of these costs will likely be passed on to the  
          consumer or result in fewer offerings.

          The California Alliance for Consumer Protection believes  
          that this measure should not be limited to chain  
          restaurants.

                                    POSITIONS  

          Support:   California Center for Public Health Advocacy  
          (sponsor)
                 Alameda County Board of Supervisors
                 American Cancer Society
                 American College of Cardiology, California Chapter
                 American Heart Association 
                 American Federation of State, County and Municipal  
          Employees




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                 Berkeley City Council
                 California Association for Health, Physical  
          Education, Recreation and Dance
                 California Center for Public Health Advocacy 
                 California Chiropractic Association
                 California Medical Association 
                 California Nurses Association
                 California Optometric Association (co-sponsor)
                 Catholic Healthcare West
                 California WIC Association
                 Consumer Federation of California
                 Dental Health Foundation
                 Gray Panthers, California
                 Health Officers Association of California
                 Latino Coalition for a Healthy California
                 Lucile Packard Children's Hospital
                 Marin County Board of Supervisors
                 PolicyLink
                 Prevention Insitute
                 Roll International
                 Stanford Hospital & Clinics
                 Stanford School of Medicine
                 St. Joseph Health System
                 Strategic Alliance for Healthy Food and Activity
                 Hundreds of individuals
                 
                 Oppose:  
                 California Alliance for Consumer Protection  
                 CalChamber
                 California Restaurant Association
                 California Retailers Association
                 Councilmember Jerry Duncan, City of Fresno
                 International Franchise Association
                 Rodrick Management Group
                 Rubio's Fresh Mexican Grill
                 Wendy's International, Inc.
                 Hundreds of individuals



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