BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 912
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 912 (Mitchell) - As Amended:  April 21, 2014 

          Policy Committee:                             B&P   Vote:11-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill repeals the January 1, 2015 sunset date for requiring  
          operators of vending machines on state property to offer at  
          least 35% of food products and approximately 66% of beverages in  
          each vending machine that meet specified nutritional guidelines  
          and standards.

           FISCAL EFFECT  

          As the current requirements have been in place for several  
          years, neither removing nor extending the nutrition requirements  
          are likely to have any significant fiscal impact on vending  
          machine sales or on special fund revenue to the Vending Stand  
          Fund (VSF) and the Business Enterprise Vending Machine Account  
          (BEVMA).

          The state Department of Rehabilitation (DOR) administers the  
          operation of concessions, including vending machines located on  
          state property through the Business Enterprise Program (BEP) and  
          through a contracting program. Concessions are operated by blind  
          vendors. Revenues are deposited into the VSF and the BEVMA in  
          the Special Deposit Fund. 

          The department indicates that revenues attributable to the  
          operation of vending machines on state property were over $9.5  
          million in the most recent fiscal year, resulting in deposits of  
          over $510,000 to the VSF. These amounts do not include vending  
          machines on state property which are combined with cafeterias,  
          snack bars, or vending stands, nor do they include vending  
          routes that contain a combination of state, federal, or county  
          locations, all of which could not be determined. The department  
          also indicates that commissions from state locations resulted in  








                                                                  SB 912
                                                                  Page  2

          deposits of $176,303 to the BEVMA.  

           COMMENTS  

           1)Purpose  . According to the author's office, "[This bill] simply  
            preserves current law by removing the sunset on the required  
            nutritional guidelines, thereby providing consumers with the  
            continued opportunity to make healthy choices.  California is  
            in the midst of an obesity and diabetes epidemic and now is  
            not the time to abandon this modest but important policy.   
            More than half of adults and teens in the state are either  
            overweight or obese?Nearly half of our waking hours are spent  
            at the workplace, and the foods available in employee  
            cafeterias, vending machines, and work-sponsored events  
            frequently determine what people eat throughout the day.   
            Healthier food options in state buildings will help reduce the  
            prevalence and cost of diet-related diseases, while promoting  
            the well-being of state employees and the general public."

           2)Prior Legislation  . In 2013, AB 459 (Mitchell), which would  
            have required that the percentage of food products in state  
            vending machines increased over three years to 100%, was held  
            on this committee's Suspense File.

            In 2012, AB 727 (Mitchell), which would have required that the  
            percentage of food products in state vending machines increase  
            to 50%, was held on Suspense in Senate Appropriations.
           
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081