BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1594 (Eng) - Charter Schools: Pupil Nutrition
          
          Amended: May 25, 2012           Policy Vote: Education 6-2
          Urgency: No                     Mandate: See staff comments.
          Hearing Date: August 6, 2012                                
          Consultant: Jacqueline Wong-Hernandez                       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: AB 1594 requires a charter school to provide each 
          needy pupil with one nutritionally adequate free or 
          reduced-price (FRP) meal each schoolday, as specified.  

          Fiscal Impact: 
              State operations: Approximately $600,000 in federal funds, 
              annually, to provide administrative support to charter 
              schools. The California Department of Education (CDE) would 
              require authority for both limited-term and ongoing 
              federally funded PYs.
              Meal reimbursement: Unknown ongoing General Fund costs, 
              depending on the number of meals provided which are eligible 
              for partial state reimbursement.
              Waiver process: Significant workload increase to evaluate 
              (likely more than 200) additional waivers, and one-time cost 
              of $32,000 to adopt waiver regulations.

          Background: Existing law defines a "nutritionally adequate meal" 
          as a breakfast or lunch that qualifies for reimbursement under 
          federal child nutrition program regulations.  
          School districts and county offices of education are required to 
          provide for each needy pupil, one nutritionally adequate free or 
          reduced-price meal during each schoolday. A school district or 
          county office of education may use funds made available through 
          any federal or state program to provide these meals, including 
          the federal National School Lunch Program (NSLP), the federal 
          Summer Food Service Program, the federal Seamless Summer Option, 
          or the state meal program. (Education Code � 49550)

          This law is also known as the "State Meal Mandate." Charter 
          schools are exempt from most laws governing school districts and 
          schools, including the State Meal Mandate. 








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          At the request of the Joint Legislative Audit Committee, the 
          California State Auditor recently reviewed California charter 
          schools in an effort to gain a broader understanding of how 
          charter schools are meeting the nutritional needs of students, 
          particularly low-income students.  The October 2010 report, 
          California's Charter Schools: Some Are Providing Meals to 
          Students, but a Lack of Reliable Data Prevents the California 
          Department of Education from Determining the Number of Students 
          Eligible for or Participating in Certain Federal Meal Programs, 
          indicated that a majority of charter schools, approximately 60%, 
          provide meals via the NSLP and School Breakfast Program. Of the 
          815 charter schools included in the study, 451 were 
          participating in the breakfast or lunch program, and 151 did not 
          provide meals because instruction is nonclassroom based. The 
          auditor surveyed the remaining 213 charter schools, and of the 
          133 that responded, 41 stated that they were in fact 
          participating in the federal nutrition programs, 46 stated they 
          offer their students an alternative meal program and 39 stated 
          they do not provide meals to their students, mainly because they 
          lack resources such as funding, staff, or a kitchen, cafeteria, 
          or other facility in which to prepare and deliver meals.  

          Proposed Law: AB 1594 requires a charter school to provide each 
          needy pupil with one nutritionally adequate FRP during each 
          schoolday.  Specifically, this bill: 

          1) Requires new charter schools established on or after July 1, 
               2013, to offer FRP meals when the school begins operation.  


          2) Requires existing charter schools that provided needy pupils 
               with FRP meals during the 2012-13 school year to comply 
               with the provisions of the bill commencing with the 2013-14 
               school year.  

          3) Requires charter schools that did not provide FRP meals 
               during the 2012-13 school year to begin offering FRP meals 
               upon the renewal of their charter. 

          4) Authorizes the State Board of Education (SBE) to grant a 
               two-year hardship waiver to schools that demonstrate that 
               implementation of the requirements of this bill would 
               create a financial hardship.  








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          5) Exempts charter schools that offer only nonclassroom-based 
               instruction or only online instruction from the 
               requirements of the bill. 

          Staff Comments: Many charter schools currently comply with the 
          State Meal Mandate, and access federal and state funds to serve 
          eligible meals. This bill would require all classroom-based 
          charter schools to comply with State Meal Mandate. Legislative 
          counsel has indicated that this bill may impose a new mandate on 
          charter schools. That mandate is not likely to be reimbursable, 
          however, since Commission on State Mandates has ruled that 
          charter schools are not eligible for mandate reimbursement. Some 
          charter schools will still incur significant new costs to comply 
          with this bill's requirements. Access to kitchen facilities 
          and/or food service vendors, as well as county health 
          requirements, vary throughout the state.

          Charter school participation data is limited, not only for which 
          schools participate in meal programs, but also for the types of 
          schools which do not participate and the reasons they may find 
          participation difficult or undesirable. The CDE believes that 
          under this measure, 219 additional charter schools would be 
          required to comply with the State Meal Mandate, beyond those 
          already participating.  

          The CDE's Nutrition Services Division (NSD) provides staff 
          support to 1500 school food authorities (SFAs) which encompass 
          11,000 school meal sites, including traditional public schools, 
          charter schools, private schools, juvenile detention centers, 
          etc. The NSD has 230 positions, which are all federally funded. 
          The CDE indicates that supporting 219 additional charter schools 
          would add significant workload to the NSD. Supporting charter 
          schools typically requires more staff time than non-charters 
          because charters often do not have staff dedicated solely to 
          nutrition services, and require more initial training in 
          compliance. The CDE estimates that this bill would result in 
          several partial PYs' staff time, for site visits, performance 
          reviews, documentation paperwork, menu approval, and other 
          technical assistance. Total ongoing annual staff costs would be 
          approximately $600,000 in federal funds, which are available and 
          can be used for these new PYs.

          This bill will likely result in significant new costs to the 








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          state to partially reimburse meal costs for 219 new schools 
          participating in meal service. Currently, the state reimburses 
          schools approximately 22 cents per qualifying meal served.  Due 
          to limited data on non-participating schools, it is not clear 
          how many pupils would be served in the 219 charter schools that 
          do not currently participate. Generally, larger charter schools 
          and those in higher population areas are more likely to 
          currently comply with the State Meal Mandate. 

          This bill allows charter schools to submit requests for a 
          two-year waiver if they can demonstrate that the new requirement 
          creates a financial hardship for the school.  It is likely that 
          many of the non-participating schools believe that participation 
          will create a financial hardship. This provision will require 
          the CDE to review all waiver requests, decide whether or not the 
          bill imposes a financial hardship on each school, and grant 
          waivers accordingly. The CDE also estimates that it will cost 
          $32,000 to develop and adopt new regulations for the waiver 
          process.