BILL ANALYSIS �
AB 727
Page 1
Date of Hearing: April 12, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 727 (Mitchell) - As Amended: March 25, 2011
SUBJECT : Public contracts: healthy and sustainable food.
SUMMARY : Requires at least 50% of food and beverages offered
by a vendor in a vending machine on designated state property to
meet accepted nutritional guidelines, beginning January 1, 2014,
at least 100% of the food and beverages offered by such a vendor
to meet those nutritional guidelines by January 1, 2016,.
Specifically, this bill :
1)Revises the "accepted nutritional guidelines" for beverages as
follows:
a) Includes carbonated water products under the definition
of "drinking water;"
b) Includes 2%, 1% or nonfat milk, and nondairy milk
without added sweeteners. States that this definition does
not apply to nuts, seeds, eggs, and cheese packaged for
individual sale; and,
c) Replaces electrolyte replacement beverages not
containing more than 42 grams of added sweetener per
20-ounce serving with sugar sweetened or artificially
sweetened beverages that do not exceed 25 calories per
eight ounces.
2)Revises the "accepted nutritional guidelines" for food as
follows:
a) Clarifies that legumes, nuts, nut butters, seeds, eggs,
non-fried vegetables, and cheese packaged for individual
sale are not included in foods with 35% of its total
calories from fat;
b) Adds individual snack items not exceeding 250 calories.
c) Adds individual snack items not exceeding 230 milligrams
of sodium per serving, except refrigerated meals; and,
AB 727
Page 2
d) Adds individual entr�e items not exceeding 480
milligrams of sodium per serving.
3)Defines "individual entr�e item" as food generally regarded as
the primary food in a meal that contains either:
a) Two or more of the following groups: meat or meat
alternatives such as tofu or other similar alternatives,
grain or bread, vegetable or fruit that are eaten together
including, but not limited to, sandwiches, pizza, hamburger
on a bun, bean burrito, chef's salad, fruit and cheese
platter, baked potato with chili, chicken vegetable
stir-fry, or vegetable sandwich; and,
b) A meat or meat alternative alone including, but not
limited to, sausage patty, egg, and chicken nuggets.
Specifies that nuts, nut butters, seeds, cheese, and yogurt
served alone shall not be included for purposes of this
definition.
4)Defines "individual snack item" to mean an item that does not
meet the definition of an "individual entr�e item."
5)Requires vendors operating or maintaining a vending machine on
state property to:
a) Offer at least 35% of food that meets accepted
nutritional guidelines, until January 1, 2014;
b) Offer at least 50% of food that meets accepted
nutritional guidelines, beginning January 1, 2014; and,
c) Offer 100% of food that meets accepted nutritional
guidelines, beginning January 1, 2016.
6)Requires vendors to offer drinking water as a beverage option,
and specifies that its price not be higher than other beverage
options.
7)Requires vendors to offer in the vending machine at least 50%
of beverages that meet accepted nutritional guidelines,
starting January 1, 2014, and 100% of beverages that meet
accepted nutritional guidelines starting January 1, 2016.
AB 727
Page 3
8)Specifies that a vendor may meet the above requirements by
offering 50% of the food in a vending machine that meets
accepted nutritional guidelines by January 1, 2014, and by
offering 100% of the food in a vending machine meeting
accepted nutritional guidelines by January 1, 2016.
9)Specifies that beginning January 1, 2014, food sold in any
state-owned or leased building at food concessions and
cafeterias shall meet at least the standard criteria for food
and nutrition guidelines for concessions as determined by the
federal Department of Health and Human Services (DHHS) and the
United States (U.S.) General Services Administration's (GSA)
Health and Sustainability Guidelines for Federal Concessions
and Vending Operations.
10)Requires the Department of General Services (DGS), when
approving contracts for the purchase of food to be sold in any
state-owned or leased building at food concessions,
cafeterias, or vending operations, to give preference to
purchasing food items in the following order:
a) Food items grown, packaged, or produced within 150 miles
of the building where the food will be sold; and,
b) Food items grown, packaged, or produced within
California.
11)Requires DGS, when approving contracts for the purchase of
food to be sold in any state-owned or leased building for food
concessions, cafeterias, or vending operations, to give
preference to purchasing food items that meet the
sustainability guidelines for general food as determined by
DHHS and the U.S. GSA's Health and Sustainability Guidelines
for Federal Concessions and Vending Operations.
12)Requires DGS, when consulting with the California
Environmental Protection Agency (CalEPA), members of the
public, industry, and public health and environmental
organization to provide state agencies with information and
assistance regarding environmentally preferable purchasing
including the federal Department of Health and Human Services
and the United States General Services Administration's Health
and Sustainability Guidelines for Federal Concessions and
Vending Operations to assist in developing practices to
promote the acquisition of healthy, sustainable, and
AB 727
Page 4
environmentally preferable purchasing.
13)Makes legislative findings and declarations.
EXISTING LAW :
1)Regulates various aspects of the provision of food and
beverages in vending machines, including the giving of
priority to blind persons with respect to the operation of
vending facilities on state property, as specified.
2)Governs contracting between state agencies and private
contractors, sets forth requirements for the procurement of
supplies, material, equipment, and services by state agencies,
and provides for various responsibilities of DGS in overseeing
and implementing state contracting procedures and policies.
3)Requires vendors that operate or maintain vending machines on
state property to offer 35% of the food in a vending machine
to meet accepted nutritional guidelines.
4)Requires vendors that operate or maintain vending machines on
state property to offer at least one-third of the beverages in
a vending machine that meet accepted nutritional guidelines.
5)Requires DGS, to consult with CalEPA, members of the public,
industry, and public health and environmental organization to
provide state agencies with information and assistance
regarding environmentally preferable purchasing.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "Each
year California spends millions of dollars to purchase food that
is sold on state property or provided by the state. When the
state purchases healthy and local foods it is helping to create
a sustainable local food economy.
"National and state efforts have been underway to promote food
procurement policies with locally and regionally grown foods.
The Centers for Disease Control and Prevention, within their
State-Specific Trends in Fruit and Vegetable Consumption Among
Adults, identified that implementing procurement policies is a
AB 727
Page 5
strategy that can promote healthier eating. The American
Planning Association's Policy Guide on Community and Regional
Food Planning also recommends that state policies should include
regional food procurement amendments.
"AB 727 will require the state to provide healthier food options
in vending machines, concessions and cafeterias located in state
buildings, based on nutritional standards established within the
"Health and Sustainability Guidelines for Federal Concessions
and Vending Operations" by DHHS and U.S. GSA."
Background . On July 9, 2009, the California Center for Public
Health Advocacy (CCPHA) released The Economic Costs of
Overweight, Obesity and Physical Inactivity Among California
Adults - 2006. The study found the total annual estimated cost
to California for overweight, obesity and physical inactivity
was $41.2 billion - $21.0 billion for overweight and obesity,
and $20.2 billion for physical inactivity. Health care costs
associated with overweight and obesity were $12.8 billion while
health care costs associated with physical inactivity totaled
$7.9 billion. Per the findings in their report, CCPHA
recommended that California state agencies promote health
through their policy and funding decisions.
Blind Enterprise Program . In 1936, federal legislation titled
the Randolph-Sheppard Act was passed authorizing the Business
Enterprise Program (BEP). This program was intended to provide
jobs for people who are "legally" blind. The California
Department of Rehabilitation, which is under the scope of the
Department of Health and Human Services, administers BEP. Under
federal and state guidelines those individuals considered
legally blind are given priority in operating food services
facilities within federal and state buildings.
The BEP program trains these individuals into becoming potential
vendors. Upon completion of training, a new vendor is provided
with a license from the Department of Rehabilitation. Once a
location becomes available, BEP solicits applications from
eligible vendors. The Department of Rehabilitation supports
vendors within the program (e.g., financial assistance for
equipment, counseling, and fiscal oversight).
U.S. GSA's Health and Sustainability Guidelines for Federal
Concessions and Vending Operations
U.S. GSA developed the Health and Sustainability Guidelines for
AB 727
Page 6
Federal Concessions and Vending Operations in partnership with
DHHS intended to promote best practices in nutrition science for
improving health and reducing impact to the environment. These
guidelines translate the 2010 Dietary Guidelines for Americans
into clear and definitive standards that food service operators
can follow to make their operations healthier and more
sustainable.
Support . The Consumers Union, writes in support, "California is
uniquely positioned to establish a model for other states, and
other government entities, in making the nutritious food option
the easy one. As one of the first states in the country to
implement nutrition standards and prohibit sugar-sweetened
beverages in our schools, California already has shown
leadership on promoting wellness for children and youth.
Adopting food procurement policies for state buildings that
emphasize nutritious offerings will broaden healthy choices for
state workers and visitors to state-run facilities. Healthy
procurement policies for all state buildings will help promote
obesity prevention and thereby support reduction of the
ever-upward spiraling health system costs for obesity-associated
disease. The California Department of Parks and Recreation
currently provides incentives that encourage concessionaires to
develop relationships with local farmers and provide nutritious
food. This allows state park visitors to have a selection of
healthy foods and also invests in California's local food
system."
Opposition . The California Automatic Vendors Council (CAVC)
writes in opposition, "Regretfully, CAVC is strongly opposed to
provisions in AB 727 which would require vending machines by
2016 to offer 100% of their products that meet the bill's
accepted nutritional guidelines. This 100% is entirely
unworkable and would eliminate a vending operator's ability to
provide snacks and drinks to state employees that they request
and desire.
"CAVC supported previous legislation - SB 441 (Chapter 597,
2007) which placed nutritional guidelines in state law for
vending machines on state property and required 35% of products
in vending machines to offer products that met these nutritional
guidelines. For those vending operators on state property, this
required a fair amount of modification to their machine
offerings but it was a priority to CAVC members to provide
nutritional choices to their customers and they are committed to
AB 727
Page 7
make these choices available?We would ask that Assemblymember
Mitchell amend her bill to eliminate any increase in required
percentages for vending machines either to 50% by 2014 or 100%
by 2016 and keep the 35% standard in place for state office
buildings"
Previous legislation .
SB 441 (Torlakson), Chapter 597, Statutes of 2008, requires a
vendor that operates or maintains a vending machine on state
property to offer food and beverages that meet accepted
nutritional guidelines, as specified.
SB 522 (Torlakson) of 2006 requires each vendor that operates or
maintains vending machines on designated state property to
satisfy a specified phased-in requirement that at least 25% of
the food and beverages offered in the vending machine meets
accepted nutritional guidelines, as defined, by December 31,
2006, and 50% by December 31, 2007, or under specified
conditions, by December 31, 2009, and to provide to users, upon
request, information about the nutritional value of food and
beverages offered in the vending machine and procedures for
requesting a change in vending machine offerings. This bill
was held on the Senate Floor.
SB 74 (Torlakson) of 2004 requires each vendor that operates or
maintains a vending machine on designated state property to
satisfy the requirement that at least 50% of the food and
beverages offered in the vending machine meets accepted
nutritional guidelines. This bill was held in the Senate
Governmental Organization Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Pan-Ethnic Health Network (sponsor)
AltaMed
American Cancer Society Border Sierra Region
Baldwin Park Healthy Eating Active Communities Initiative
California Black Health Network
California Center for Public Health Advocacy
California Center for Rural Policy
California Food Policy Advocates
California Public Health Association - North
AB 727
Page 8
California Women, Infants and Children Association
Central Valley Partnership for Citizenship
Consumer Federation of California
Consumers Union
Food for People, Inc.
Fresno Metro Ministry
Humboldt Partnership for Active Living, RCAA
Los Angeles County Board of Supervisors
Madera Coalition
PolicyLink
Prevention Institute
SEIU-United Service Workers West
Supervisor Mark Ridley-Thomas, County of Los Angeles
The California Food Project
Time for Change Foundation
Numerous individuals
Opposition
California Automatic Vendors Council
California Nevada Soft Drink Association
Grocery Manufacturers Association
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301