BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1255
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1255 (Padilla) - As Amended:  June 22, 2010 

          Policy Committee:                             EducationVote:5-2
                                          Health                            
                                                                 14-5

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill, beginning on July 1, 2011, prohibits an electrolyte  
          replacement beverage (ERB) that contains no more than 42 grams  
          of added sweetener per 20 ounce serving from being sold to  
          middle and high school pupils from one-half hour before the  
          start of the schoolday until one-half hour after the end of the  
          schoolday.  

           FISCAL EFFECT  


          Beginning in 2011, annual loss of revenue, of approximately $5  
          million statewide, to school districts by limiting the sale of  
          ERBs in middle and high schools, as specified. There are 493  
          school districts with middle and high schools in the state.  For  
          example, several school districts report ERB sales accounts for  
          between 45% and 70% of their total beverage sales.  To the  
          extent that this loss of revenue leads to reductions in a  
          district's meal program, there will be GF/98 cost pressure to  
          mitigate these reductions.    


           COMMENTS  

          1)Purpose  .  According to the Center for Disease Control (CDC),  
            "Among pre-school age children 2-5 years of age, obesity  
            increased from 5 to 10.4% between 1976-1980 and 2007-2008 and  
            from 6.5 to 19.6% among 6-11 year olds. Among adolescents aged  
            12-19, obesity increased from 5 to 18.1% during the same  
            period."  CDC county-level data also demonstrates "the  
            geographic variability of obesity within a state. In general,  
            obesity prevalence is highest in western and southern  
            California, southern Texas, the central and north eastern  





                                                                  SB 1255
                                                                  Page  2

            seaboard, and some Appalachian states. Nearly all counties  
            touching the Pacific Ocean have prevalences above 15%, whereas  
            many of the counties in the Rocky Mountains have prevalences  
            below 10%."

            According to the author, "One third of California's kids ages  
            9 -11 are overweight or at risk of becoming overweight and are  
            increasingly suffering from nutrition-related illnesses that  
            normally occur in adulthood, diseases such as type-2 diabetes  
            and pre-hypertension.  A number of studies have found that  
            greater consumption of sweetened beverages is associated with  
            overweight and obesity among both adults and children."    

            This bill, sponsored by the governor, prohibits ERBs from  
            being sold to middle and high school pupils from one-half hour  
            before the start of the schoolday until one-half hour after  
            the end of the schoolday.  

           2)Electrolyte replacement beverages (ERBs)  are designed to  
            replace fluids after exercise and generally contain sodium and  
            potassium to improve fluid absorption in the body. According  
            to a U.S. Department of Agriculture (USDA) report on  
            Carbohydrate/ERBs, "carbohydrate/ERBs provide carbohydrate  
            (glucose, sucrose, glucose polymers) replacement to sustain  
            energy output, and electrolytes (sodium, potassium) to replace  
            those lost in sweat." The USDA report states that ERBs may be  
            useful for individuals who have lost large quantities of  
            fluids through sweating on a daily basis, and those who  
            perform continuous exercise for more than 60 minutes.  The  
            report, however, concludes there is no need to substitute ERBs  
            for water as a primary form of fluid replacement. 

            According to a University of California Center for Weight and  
            Health (UC Center) information sheet on sports drinks (2007),  
            "research shows that even when children exercise vigorously  
            (i.e., running nonstop for an entire hour) water is just as  
            good at adding back the fluids they need while keeping their  
            electrolytes in balance."  The UC Center also states:  
            "Children get plenty of electrolytes from the food they eat,  
            so during the school day and at most practices, sports drinks  
            don't provide any extra benefit over water." 

           3)Costs of childhood obesity  .  According to a 2006 Thomson  
            MEDSTAT research brief, "Children treated for obesity are  
            roughly three times more expensive for the health system than  
            the average insured child.  Annual healthcare costs are about  
            $6,700 for children treated for obesity covered by Medicaid  
            and about $3,700 for obese children with private insurance."  





                                                                  SB 1255
                                                                  Page  3


           4)Existing law  .  Since 2001, there have been three legislative  
            measures: SB 19 (Escutia), Chapter 913, Statutes of 2001, SB  
            677 (Ortiz), Chapter 415, Statutes of 2003, and SB 965  
            (Escutia), Chapter 237, Statutes of 2005, that have regulated  
            beverage sales at elementary, middle, and high schools.  SB 19  
            limited beverage sales at elementary schools; SB 677 extended  
            the elementary school limitations to middle schools; and SB  
            965 extended the middle school limitations to high schools.  

            The following chart represents current law regarding the types  
            of beverages allowed to be sold at schools during specified  
            time periods.    


           ---------------------------------------------------------------------- 
          |             Beverage              |  Elementary   | Middle and High  |
          |                                   |   Schoolsa    |     Schoolsb     |
          |-----------------------------------+---------------+------------------|
          |Fruit-based drinks that are        |               |                  |
          |composed of no less than 50% fruit |       X       |X                 |
          |juice and have no added sweetener  |               |                  |
          |-----------------------------------+---------------+------------------|
          |Vegetable-based drinks that are    |               |                  |
          |composed of no less than 50%       |       X       |        X         |
          |vegetable juice and have no added  |               |                  |
          |sweetener.                         |               |                  |
          |-----------------------------------+---------------+------------------|
          |Drinking water with no added       |       X       |        X         |
          |sweetener.                         |               |                  |
          |-----------------------------------+---------------+------------------|
          |Two percent fat milk, one percent  |               |                  |
          |fat milk, soy milk, rice milk, and |       X       |        X         |
          |other similar non-dairy milk.      |               |                  |
          |-----------------------------------+---------------+------------------|
          |ERB that contains no more than 42  |               |                  |
          |grams of added sweetener per 20    |               |X                 |
          |ounce serving.                     |               |                  |
           ---------------------------------------------------------------------- 
            aAt elementary schools, these beverages may be sold regardless  
            of the time of day.  
            bAt middle and high schools, these beverages may only be sold  
            from one-half hour before the start of the schoolday to  
            one-half hour after the end of the schoolday.  



           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  





                                                                  SB 1255
                                                                  Page  4

          319-2081