BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 909
                                                                  Page  1

          Date of Hearing:   January 5, 2012

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
                    AB 909 (Alejo) - As Amended:  January 4, 2012
           
           �Note: This bill is double referred to the Assembly Agriculture 
          Committee and will be heard as it relates to issues under its 
          jurisdiction.]
           
          SUBJECT  :   Pupil nutrition:  Farm to School Program

           SUMMARY  :   Establishes the Farm to School Program.  
          Specifically,  this bill  :  

          1)Specifies that at least 80% of the fresh produce a school 
            district purchases for use in its food service program shall 
            be California produce.

          2)Provides that if a school district purchases California 
            produce in the quantity prescribed by this bill, the 
            California Department of Education (CDE) shall reimburse the 
            school district five cents for every meal the district serves 
            as part of the National School Lunch (NSL) or School Breakfast 
            Programs (SBP).

          3)Requires a school district to expend the funds received 
            pursuant to this bill to purchase California produce.

          4)Provides that, for the purposes of this bill, the CDE may 
            accept contributions of money and assistance from any public 
            or private source and agree to conditions placed on the 
            contributions if those conditions are not inconsistent with 
            the duties of the CDE.

          5)Requires the Department of Agriculture to consult with the CDE 
            for the purpose of assisting school districts with meeting the 
            requirements of this bill.  Requires the Department of 
            Agriculture to do the following:

             a)   Identify the sources and suppliers of California 
               produce;
             b)   Develop strategies for school districts to use, 
               including forward contracting and negotiating competitive 
               prices, that would result in more California produce use in 








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               school meal programs; and, 
             c)   Help small farmers collaborate with one another to 
               supply the large quantities of California produce demanded 
               by school districts.

          6)Authorizes the State Board of Education (SBE) to adopt any 
            rules and regulations necessary for the implementation of this 
            bill.

          7)Defines "California produce" as produce that has been produced 
            in California or harvested in its surface or coastal waters.

           EXISTING LAW  :

          1)Requires each school district or county superintendent of 
            schools maintaining any kindergarten or any of grades 1 
            through 12 to provide for each needy pupil one nutritionally 
            adequate free or reduced-price meal during each schoolday, 
            except for family day care homes that shall be reimbursed for 
            75% of the meals served.  (Education Code (EC) Section 49550)

          2)Defines needy children as those children who meet federal 
            eligibility criteria for free and reduced price meals, except 
            for family day care homes which shall be reimbursed for 75% of 
            the meals.  (EC 49552)

          3)Requires the governing board of a school district and the 
            county superintendent of schools to make applications for free 
            or reduced price meals available to students at all times 
            during each regular schoolday.  Requires the application to 
            contain specified information.  (EC 49557)

          4)Establishes the California Fresh Start Pilot Program to 
            encourage public schools to provide fruits and vegetables that 
            have not been deep fried to pupils in the SBP.  Provides a 
            reimbursement of ten cents per meal to school sites that offer 
            one to two servings of nutritious fruits or vegetables for 
            breakfast.  (EC 49565-49565.8)

          5)Requires, as a condition for state funds for free and reduced 
            price meals, a school to follow the Enhanced Food Based Meal 
            Pattern, Nutrient Standard Meal Planning, or Traditional Meal 
            Pattern developed by the USDA or the SHAPE Menu Patterns 
            developed by the state.  (EC 49430.5)









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           FISCAL EFFECT  :  Unknown

           COMMENTS  :   School meal programs  :  Existing law requires local 
          educational agencies to provide one nutritiously adequate free 
          and reduced-price meal to needy children once a day during each 
          schoolday.  A needy child is defined as a child who meets the 
          federal eligibility for free and reduced-price meals.  Income 
          eligibility is 130% of federal poverty guidelines for free meals 
          ($28,665 for a family of four) and 185% of federal poverty 
          guidelines for reduced-price meals ($40,793 for a family of 
          four).  School meal programs are funded predominantly by the 
          United States Department of Agriculture (USDA) through its NSL 
          and SBP and supplemented by state 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.  In 2009-10, the state 
          received $365.5 million for SBP and $1.2 billion for SLP.  State 
          funds augmented the programs by $40 million for SBP and $91.9 
          million for SLP.   According to the CDE, on an average day, more 
          than 4.7 million nutritious meals are served at approximately 
          43,000 locations.  

           Nutrition standards  .  The USDA requires meals provided under the 
          NSL and SBPs to meet the recommendations of the federal Dietary 
          Guidelines for Americans, which recommend that no more than 30% 
          of an individual's calories come from fat, and less than 10% 
          from saturated fat.  Meals under the NSL and SBP must also 
          provide one-third and one-fourth, respectively, of the 
          Recommended Dietary Allowance for protein, calcium, iron, 
          Vitamin A, Vitamin C and calories. The USDA gives local school 
          food officials the authority to make decisions about the 
          specific food to serve and how they are prepared.  As a 
          condition for receipt of state funds for the meal programs, 
          existing state law further limits serving of food that is deep 
          fried, par fried, or flash fried, and food containing artificial 
          trans fat.    

           This bill  requires at least 80% of the fresh produce a school 
          district purchases for use in its food service programs to be 
          California produce, defined as produce that has been produced in 
          California or harvested in its surface or coastal waters.  The 
          bill also requires the CDE to reimburse a school district five 
          cents for every meal the district serves as part of the NSL or 
          SBP.  Funds received by a district pursuant to this bill must be 
          used to purchase California produce.  








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           Federal guidelines  .  Federal law encourages nutrition programs 
          to purchase unprocessed locally grown and locally raised 
          agricultural products and gives local programs the authority to 
          specify what constitutes "local".  However, federal guidelines 
          prohibit a program from defining "local" in a way that restricts 
          free and open competition.  Local nutrition programs are allowed 
          to institute preference points or percentages that may give 
          advantage to local providers, but cannot issue requests for 
          proposals that restrict bids to only local producers.  The USDA 
          further prohibits states from mandating a geographic preference 
          when conducting procurements for the federal meal programs.  The 
          USDA does not prohibit an incentive program based on 
          geographical preference.  

          Consequently, the proposal in this bill appears to violate 
          federal rules.  Staff recommends changing the bill to an 
          incentive program that will provide an increase in reimbursement 
          only if a school district chooses to implement the Farm to 
          School program established by this bill.  

           Is five cents an incentive  ?  It is unclear how a minimum 
          requirement for purchasing California produce affects the costs 
          for school districts.  Is five cents per meal an adequate 
          incentive or would it simply cover increased costs?  This bill 
          would increase the state reimbursement rate by five cents.  The 
          last increase in the state share occurred in 2006 by almost 
          seven cents.  The table below shows the current per meal 
          reimbursement rates:

           ----------------------------------------------------------------- 
          |                                                                 |
          |                    School Breakfast Program                     |
           ----------------------------------------------------------------- 
           ------------------------------------------------------------------ 
          |                                |        Federal        |  State  |
           ------------------------------------------------------------------ 
          |--------------------------------+----------+------------+---------|
          |                                |   Free   |Reduced-Pric|         |
          |                                |          |     e      |         |
           ------------------------------------------------------------------ 
          |Basic Breakfast                 |  $1.51   |   $1.21    | $0.2195 |
          |--------------------------------+----------+------------+---------|
          |Especially Needy Breakfast      |  $1.80   |   $1.50    | $0.2195 |
          |(Approved sites that served 40% |          |            |         |








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          |or more free and reduced-price  |          |            |         |
          |lunches in 09-10)               |          |            |         |
           ------------------------------------------------------------------ 
           ----------------------------------------------------------------- 
          |                                                                 |
          |                      School Lunch Program                       |
           ----------------------------------------------------------------- 
           ------------------------------------------------------------------ 
          |                                |        Federal        |  State  |
           ------------------------------------------------------------------ 
           ------------------------------------------------------------------ 
          |                                |   Free   |Reduced-Pric|         |
          |                                |          |     e      |         |
           ------------------------------------------------------------------ 
          |Agencies that served less than  |  $2.77   |   $2.37    | $0.2195 |
          |60% free/reduced-price lunches  |          |            |         |
          |in 09-10                        |          |            |         |
          |--------------------------------+----------+------------+---------|
          |Agencies that served 60% or     |  $2.79   |   $2.39    | $0.2195 |
          |more free/reduced price lunches |          |            |         |
          |in 09-10                        |          |            |         |
           ------------------------------------------------------------------ 
           ----------------------------------------------------------------- 
          |Source:  California Department of Education                      |
           ----------------------------------------------------------------- 

           Existing farm to school programs  .  The author states that this 
          bill intends to expand existing Farm to School programs.  
          According to the CDE, California was one of the first states to 
          establish Farm to School programs.  Santa Monica-Malibu Unified 
          School District's Farmers' Market Salad Bar was one of first 
          such programs, established in 1997.  It was expanded to all 
          schools in the district by 2001.  The district purchases fresh 
          produce from the local farmer's market twice a week.  According 
          to an official from the district, the cost for the produce did 
          not increase, but there are some increased costs to administer 
          the program.  Other models of farm to school programs include 
          establishing school gardens (used for educational and food 
          program purposes), purchasing produce from local or other 
          California farmers, and purchasing from a third party that 
          delivers locally grown produce.         
           
          Clarifications required  .  The calculation of 80% is unclear.  
          What is the 80% measured by - expenditures or volume of food 
          purchased?  The CDE may have difficulty calculating a percentage 








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          of volume of food purchased.  Staff recommends tying the 80% to 
          a district's annual expenditure for produce.  The CDE also 
          recommends allowing a school district to self-certify that it 
          meets the 80% threshold, similar to the practice currently in 
          place for districts to self-certify that it complies with the 
          prohibition on deep fried and trans fat food as a condition of 
          receiving state funds for meal programs.  Compliance will be 
          checked through audits, administered through the CDE's 
          Coordinated Review Effort (CRE).  Staff recommends inserting a 
          self-certification provision as part of the application for 
          funding. 

           Technical amendments  .  The author intends to require the 
          California Department of Food and Agriculture (CDFA) to provide 
          assistance to school districts.  However, the bill references 
          the Department of Agriculture, which is the name of a federal 
          agency.  Staff recommends making a technical correction.

          The bill's definition of "California produce" includes a 
          reference to produce harvested in "surface or coastal waters", 
          which can be construed to include seafood as produce.  The 
          author intends to include fruits, vegetables and nuts as 
          produce.  As such, staff recommends clarifying the definition of 
          produce as "fruits, vegetables and nuts grown in California as 
          defined in the Food and Agricultural Code Section 43100." 

           Technical assistance  .  The bill requires the CDFA to provide 
          technical assistance to school districts and farmers, including 
          identifying the source and suppliers of California produce.  
          Staff recommends expanding the information to include when 
          certain fruits, vegetables or nuts are in season.  The bill also 
          requires the CDFA to provide technical assistance to school 
          districts in identifying suppliers and developing strategies 
          that can be used by school districts, such as forward 
          contracting and negotiating competitive prices, and helping 
          small farmers collaborate with one another.  The CDE already 
          provides technical assistance to school districts.  It may be 
          more appropriate for the CDE, instead of CDFA, to provide 
          assistance on contracting and negotiating prices.  Staff 
          recommends requiring the CDE, instead of the CDFA, to comply 
          with that provision.  
           
          Arguments in Support  .  The author states, "AB 909 furthers the 
          fight in the battle against childhood obesity by providing 
          nutritional meals to school children.  This bill expands the 








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          practice and allows school districts to utilize California's 
          rich agricultural resources rather than continuing to rely on 
          importing goods from outside the state.  The state stands to 
          benefit from the savings incurred in healthcare costs and the 
          economic stimulus provided to the agricultural community."

           Prior legislation
           
          AB 967 (Nava), establishes the Farm Fresh Schools program, which 
          provides specified grants to school districts to promote the 
          consumption of locally grown fruits and vegetables in public 
          schools.  The bill was held in the Assembly Appropriations 
          Committee suspense file in 2007.

          AB 2121 (Nava) was identical to AB 967 and was held in the 
          Assembly Appropriations Committee suspense file in 2006.

          SB 281 (Maldonado), Chapter 236, Statutes of 2005, establishes 
          the California Fresh Start Pilot Program to encourage public 
          schools to provide fruits and vegetables that have not been deep 
          fried to pupils in the SBP.  The bill appropriated $400,000 to 
          provide a reimbursement of ten cents per meal to school sites 
          that offer one to two servings of nutritious fruits or 
          vegetables for breakfast. 

          AB 826 (Nava) establishes the California Farm to School Child 
          Nutrition Improvement Program, which requires the CDE, to the 
          extent funds are available from identified sources, and in 
          collaboration with the California Department of Food and 
          Agriculture and the California Department of Health Services 
          (DHS) to implement outreach and training of school food service 
          personnel and the agricultural industry in order to facilitate 
          the delivery of fresh fruits and vegetables to school 
          cafeterias.  The bill was vetoed by Governor Schwarzenegger in 
          2005. 

          AB 2504 (Maldonado) requires the DHS to administer a two-year 
          pilot program to make available free fresh and dried fruits and 
          vegetables to pupils in 25 eligible elementary and secondary 
          schools throughout the state.  The bill was vetoed by Governor 
          Schwarzenegger in 2004.  

          AB 801 (Salinas) establishes the Choose California Act, which 
          requires all state owned or state run institutions, including 
          public schools and school districts, to purchase agricultural 








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          products grown in California before those that are grown outside 
          the state as long as specified criteria are met regarding the 
          price of bids for in-state products.  The bill was vetoed by 
          Governor Gray Davis in 2001.  

          SB 1893 (Perata) requires state agencies and school districts to 
          give preference to agricultural products produced in this state 
          if the cost and quality are equal or superior to those produced 
          outside California.  The bill was held in the Senate 
          Appropriations Committee suspense file in 2000.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Sophia Kwong Kim / ED. / (916) 319-2087