BILL ANALYSIS �
SB 912
Page 1
SENATE THIRD READING
SB 912 (Mitchell)
As Amended April 21, 2014
Majority vote
SENATE VOTE :28-6
BUSINESS & PROFESSIONS 11-1 APPROPRIATIONS 12-5
-----------------------------------------------------------------
|Ayes:|Bonilla, Bocanegra, |Ayes:|Bocanegra, Bradford, Ian |
| |Campos, Dickinson, | |Calderon, Campos, Eggman, |
| |Eggman, Gordon, Hagman, | |Gomez, Holden, Linder, |
| |Maienschein, Skinner, | |Pan, Quirk, |
| |Ting, Wilk | |Ridley-Thomas, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Jones |Nays:|Gatto, Bigelow, Donnelly, |
| | | |Jones, Wagner |
| | | | |
-----------------------------------------------------------------
SUMMARY : Repeals the 2015 sunset date for existing law
requiring operators of vending machines on state property to
offer at least 35% of food, and approximately 66% of beverages,
in a vending machine to meet accepted nutritional guidelines and
other nutritional standards, as specified, and makes other
technical or nonsubstantive changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, 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
SB 912
Page 2
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
deposits of $176,303 to the BEVMA.
COMMENTS :
1)Purpose of this bill. This bill will permanently require food
and beverages offered for sale in a vending machine on state
property to meet specified nutritional standards. According
to those guidelines, 35% of food options must meet accepted
nutritional guidelines, at least one-third of beverages must
meet accepted nutritional guidelines, and a separate one-third
of the beverages must meet either accepted nutritional
guidelines or contain a specified number of calories. Without
this change, these nutritional requirements would expire in
2015. This bill is sponsored by the California Pan-Ethnic
Health Network.
2)Author's statement. 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. The number
of people diagnosed with diabetes rose nearly 29% from 2003 to
2009. The treatment of obesity related diseases increases our
health care costs and has a profound impact on workplace
productivity. In California, lost productivity and medical
care costs of the consequences of obesity, overweight and
physical inactivity are estimated to be $52 billion annually;
employers and taxpayers bear much of these costs.
"Studies have shown a relationship between the physical and
social environments at the workplace and the health behaviors
of employees. Nearly half of our waking hours are spent at
the workplace, and the foods available in employee cafeterias,
SB 912
Page 3
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."
3)Nutritional guidelines. SB 441 (Torlakson), Chapter 597,
Statutes of 2008, required vendors who operate or maintain
vending machines on state property to offer food and beverages
that meet a specified percentage of state accepted nutritional
guidelines. According to statute, the percentage of compliant
foods required increased automatically in 2009 and 2011. This
bill simply extends the current food and beverage standards by
deleting the current sunset date for specified food and
beverage nutritional requirements. It does not change or
alter the current accepted nutritional guidelines.
4)Vending machine operations. Currently, a large portion of
vending machines operated in state-owned or state-leased
buildings are run by the Blind Enterprise Program (BEP),
administered by the DOR. In 1936, federal legislation titled
the Randolph-Sheppard Act was passed authorizing the BEP.
This program was intended to provide jobs for people who are
"legally" blind. Under federal and state guidelines those
individuals considered legally blind are given priority in
operating food services facilities within federal and state
buildings.
5)Federal Health and Sustainability Guidelines. The desire to
include healthier food options in vending facilities on
government property is not unique to California. In 2010, the
United States Department of Health and Human Services and the
United States General Services Administration's began a
collaboration to create the Health and Sustainability
Guidelines for Federal Concessions and Vending Operations.
The goal of the guidelines is to assist federal contractors in
increasing healthy food and beverage choices and sustainable
practices at federal worksites. Those federal agencies are
currently in the process of revising and updating the 2010
guidelines for a 2015 edition.
Analysis Prepared by : Elissa Silva / B., P. & C.P. / (916)
319-3301
SB 912
Page 4
FN: 0004415