BILL ANALYSIS �
AB 727
Page 1
ASSEMBLY THIRD READING
AB 727 (Mitchell)
As Amended May 27, 2011
Majority vote
BUSINESS & PROFESSIONS 5-4APPROPRIATIONS 12-5
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|Ayes:|Hayashi, Allen, Butler, |Ayes:|Fuentes, Blumenfield, |
| |Eng, Ma | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bill Berryhill, Hagman, |Nays:|Harkey, Donnelly, |
| |Hill, Smyth | |Nielsen, Norby, Wagner |
| | | | |
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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 by January 1, 2014. Specifically,
this bill :
1)Revises the "accepted nutritional guidelines" for food and
beverages, as specified.
2)States that the "accepted nutritional guidelines" shall be
assessed when the Center for Nutrition Policy and Promotion
within the United States Department of Agriculture (USDA)
revises the Federal Dietary Guidelines for Americans for the
purpose of ensuring that the accepted nutritional guidelines
meet the guidelines of the USDA.
3)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; and,
b) Offer at least 50% of food that meets accepted nutritional
guidelines, beginning January 1, 2014.
4)Requires vendors to offer drinking water as a beverage option,
and specifies that its price not be higher than other beverage
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options.
5)Requires vendors to offer in the vending machine at least 50% of
beverages that meet accepted nutritional guidelines by January
1, 2014.
6)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.
7)Specifies that beginning January 1, 2014, or upon expiration of
an existing contract, whichever occurs later, food sold in any
state-owned or state-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 (Guidelines).
8)Requires the Department of General Services (DGS), when
approving contracts for the purchase of food to be sold in any
state-owned or state-leased building at food concessions,
cafeterias, or vending operations, to:
a) Give preference to purchasing food items grown, packaged,
or produced within California;
b) Give preference to purchasing food items that meet the
sustainability guidelines for general food as determined by
DHHS and the U.S. GSA's Guidelines; and,
c) Not include provisions that provide a disincentive for the
purchase of food items that are grown, packaged, or produced
within California for food items that meet the federal DHHS
and the U.S. GSA's Guidelines.
9)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 DHHS
and the U.S. GSA's Guidelines to assist in developing practices
to promote the acquisition of healthy, sustainable, and
environmentally preferable purchasing.
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10)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 : According to the Assembly Appropriations
Committee, DGS will incur one-time costs of about $80,000 to
modify food contract specifications and to disseminate nutritional
guidelines for food purchasing, and ongoing costs of at least
$150,000 regarding enhanced oversight and compliance with food
purchasing and vending contracts, including vendor and contractor
protests concerning compliance. �Service Revolving Fund]
COMMENTS : 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
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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
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
"Operations" by DHHS and U.S. GSA."
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.
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 DHHS, 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 developed the Guidelines in partnership with DHHS
intended to promote best practices in nutrition science for
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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.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301
FN: 0001050