BILL ANALYSIS SENATE HEALTH AND HUMAN SERVICES COMMITTEE ANALYSIS Senator Deborah V. Ortiz, Chair BILL NO: SB 19 S AUTHOR: Escutia B AMENDED: March 8, 2001 and as proposed to be amended in Committee 1 HEARING DATE: March 21, 2001 9 FISCAL: Education/Appropriations CONSULTANT: Margolis / ak SUBJECT Pupil Health: Obesity Prevention SUMMARY This bill establishes nutritional requirements for foods sold at elementary, middle, and high schools, increases the state reimbursement for school lunch program meals, creates incentive grants for school districts to develop and adopt policies on child nutrition and physical activity, requires the Superintendent of Public Instruction to enforce the provisions of the bill, and imposes other nutrition-related requirements on schools. ABSTRACT Existing law: 1.Prohibits the sale of competitive foods in the school food service area, as defined in federal law. 2.Requires the governing board of a school district to give diligent care to the health and physical development of pupils. (Education Code 49400) 3.Requires that 50% of the items, other than foods reimbursed under federal law, offered for sale each Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 2 schoolday at any schoolsite by any entity or organization during regular school hours be selected from a prescribed list of nutritious foods. (Education Code 38085) 4.Requires the Superintendent of Public Instruction to reimburse school districts for certain costs associated with free and reduced-price meals. (Education Code 49500-20) 5.Establishes a Child Nutrition Advisory Council, to recommend plans and guidelines for school and childcare meal service and nutrition education programs, and requires the State Board of Education to appoint the members of the council. (Education Code 49633) This bill, as proposed to be amended: 1.Makes findings and declarations related to the prevalence, severity, and prevention of childhood obesity. 2.Requires the state to reimburse schools, which follow specified meal patterns and the nutritional standards proposed in the bill, for free and reduced-price meals at twenty-six cents per meal, and thirteen cents per meal sold at full-price. 3.Requires the sale of all foods in secondary schools to be approved by the school food service programs and prohibits the sale of foods by any entity other than food service programs in elementary schools. 4.Requires schools to publicize a summary of nutrition and physical activity laws, regulations, and district policies, and requires the Department of Education and school districts to develop the summaries. 5.Requires the Department of Education to provide a $10,000 grant to any school district which, by December 31, 2002, develops and adopts a policy on nutrition and physical activity. Requires that the district convene an advisory committee to develop the policy and that the policy address a variety of issues and goals that are described in the bill. 6.Requires the Department of Education to design and implement a financial incentive grant program to assist Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 3 schools in implementing nutrition and physical activity policies. 7.Requires the Superintendent of Public Instruction to monitor schools every two years in order to supervise the implementation of the bill, investigate alleged noncompliance, and report noncompliance to the Attorney General. 8.Establishes nutritional requirements for foods sold and served outside of the school meal programs as follows: a) No food may be sold by any entity other than the school food service program during the schoolday at elementary schools; b) Prohibits during the schoolday, in both elementary and secondary schools, the sale of soft drinks, sports drinks, punches, iced teas, caffeinated drinks, and fruit-based drinks containing less than 50% real fruit juice or added sweeteners; c) Requires snacks, sweets, and side dishes to have 30% or less of their total calories from fat, 10% or less of their total calories from saturated fat, and 35% or less by weight from sugar (excluding fruits and vegetables); d) Requires snacks, sweets and side dishes to be limited to portion sizes specified in the bill, and entr?e sizes to be equivalent to those served by the school meal program; and e) Requires the sale of fruits and vegetables at any location where competitive foods are sold at secondary schools. FISCAL IMPACT Unknown. The author estimates a cost of $71,000,000 based on the meal reimbursement requirements and $10,000 grants to 1,000 school districts. The bill may result in additional costs associated with the monitoring and implementation requirements of the Superintendent of Public Instruction. BACKGROUND AND DISCUSSION Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 4 Obesity epidemic: Obesity has become an epidemic in the United States, affecting one-third of all adults, 27% of children, and 21% of adolescents. Research indicates a two-fold increase in the youth obesity rate over the past two decades. Overweight youth face increased risks for many serious health problems that do not commonly occur during childhood, including hypercholesterolemia and type 2 diabetes. These are compounded by discrimination, psychological stress, poor body image, and low self-esteem. More than 80% of obese adolescents remain obese as adults, with even more severe consequences, including higher risks of heart disease and cancer. Supporters of this bill argue that the combination of insufficient physical activity and "competitive foods" on school campuses, due to their limited nutritional value and high levels of calories from sugar, fat and saturated fat, are contributing to this problem. Recently published research shows an association between the consumption of sugar-sweetened drinks and obesity. Nutrition experts explain that sugar-sweetened drinks contribute significantly to caloric intake, without contributing to nutrient intake, nor diminishing the overall quantity of food consumed. The National Soft Drink Association criticized the research, arguing that the racial make-up, age, and size of the population studied make the results unreliable. Support and opposition agree that the prevention of childhood obesity must take many different forms including breast-feeding, watching less television, eating healthy, low-fat foods at home, and exercising more, both in and outside of schools. Several bills have been introduced this year addressing various aspects of American life which contribute to obesity. This bill's author believes that schools play a particularly significant role in this issue because not only do children eat many of their meals at school, but also because schools set an example for children, conveying the values and priorities of the state. Impact on scholastic achievement: Research supports the assertion that healthy eating and physical activity play an important role in learning and Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 5 cognitive development. Poor diet and physical inactivity have been found to adversely influence the ability to learn and decrease motivation and attentiveness. Such findings indicate that young people will not be ready to learn and achieve their full potential unless they are well-nourished and healthy. Reimbursable Meal Program: The United States Department of Agriculture (USDA) regulates the nutrient content of meals sold under its reimbursable meal program based on: The Recommended Daily Allowances (RDA); Children's energy expenditure; and Dietary Guidelines for Americans. Specifically, the standards are based on meals, rather than individual food items, and require that the meals: Limit total fat to 30% of calories, and saturated fat to 10%; Meet 1/3 of the RDA for protein, iron, Calcium, vitamin A and vitamin C; and Provide a variety of foods moderate in sugar and salt and high in fruits, vegetables, and whole grains. Competitive foods: Similar standards do not exist for foods sold outside of the USDA meal programs. Many schools sell and serve "competitive foods," foods that compete with the reimbursable meals, and are often higher in added sugar, sodium, and fat. The education code includes one requirement for competitive foods, stating that: "Fifty percent of all food items offered for sale each school day at any site by any organization or entity during regular school hours shall be selected from the specified list of nutritious foods. Food items reimbursed under the National School Lunch Act or Child Nutrition Act are not included in the fifty percent calculation." A study conducted by the American School Food Service Association revealed that the prevalence of competitive Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 6 foods is on the rise with the largest increase seen in elementary schools. The increase in vending machines, fast food, candy sales, and high fat/sugar snack items on school campuses has contributed significantly to overall school food sales. In a study conducted by the Public Health Institute, 95% of responding California school districts reported selling fast foods on their campuses. Among districts that sell competitive foods, 88% reported using profits to support food service operations. Others said the profits pay for extracurricular activities, athletics, and educational programs. Furthermore, it has been reported that schools are commonly out of compliance with existing laws and regulations, and that enforcement is inadequate. Many attribute the increase in sales of competitive foods to the on-going financial struggles of school food service programs. California Food Policy Advocates notes that state funding for school meals has eroded 25% over the past fifteen years to $68 million. The federal government spends $1.6 billion (96%) on meals for California's school children. The California Food Service Association expressed concern that the bill does provide sufficient increases in state reimbursements for meals, and believe that adequate funding for the reimbursable meal program would eliminate the need for nutrition standards on competitive ("a la carte") foods. They state that a reimbursement of $1.25 per meal would be adequate. Proposed nutrition standards: The author explains that the nutrition standards proposed in the bill were developed by a panel, convened at her request, of "nationally-esteemed nutrition experts" in the fields of nutrition, medicine, and school food services, including individuals who work for the: federal Centers for Disease Control and Prevention, United States Department of Agriculture, University of Minnesota, California Departments of Education and Health Services, School Food Services Association, California Dietetic Association, San Diego State University, and Children's Hospital of Los Angeles. The author convened this group after finding no equivalent set of standards or recommendations available. The federal standards used for the school meal programs are based on the composition of Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 7 meals, rather than individual food items, and on creating a balanced diet over an entire week; since competitive foods are sold individually, these standards are difficult to apply. Other states: Several other states regulate and restrict the sale of competitive foods in public schools in varying ways and degrees. Some examples follow: Florida: No competitive foods in elementary schools. No competitive foods in secondary schools until one hour after the last lunch period. Maine: No competitive food sales on campus at any time. New York, New Jersey, & Maryland: No foods of minimal nutritional value anywhere on campus from the beginning of school to the end of the last meal period. West Virginia: No foods of minimal nutritional value in elementary schools. The sale of foods of minimal nutritional value may be approved for high schools at times other than meal periods, but must meet nutritional criteria, such as no foods containing 40 percent or more sugar by weight. Opposition: Opponents of the bill argue that specific nutritional standards should be set by schools or districts at the local level, allowing for local input, and recognizing the constant evolution of products. Hershey Foods Corporation also argues that the bill's nutritional standards exceed federal USDA standards, and "appear to be established arbitrarily." They state that the bill fails to take into account the nutrient value of certain foods that the USDA has already recognized. Finally, they argue that it is misguided to apply fat and sugar limits to individual foods, as compared to the total diet over time, thereby eliminating certain foods which, in moderation, can be part of a healthy diet. The California Nevada Soft Drink Association argues that the bill proposes impractical policies such as restricting some beverages (e.g. soft drinks), but not others (e.g. Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 8 water), which might be sold together in the same vending machine. The Association wonders how a school would be able to turn off only part of a vending machine. Opposition expressed the belief that current federal and state laws are sufficient, and comment that the beverage industry is "consumer responsive" in nature. Related Legislation: SB 292 (Ortiz) - This bill seeks to provide financial incentives to communities to develop additional opportunities for physical activity for children, outside of the schoolday. SB 665 (Peace) - This bill would ban the sale of "junk food," as defined, from all schools. (To be heard in the Committee on April 18, 2001.) SB 1077 (Battin) - This bill would authorize parent teacher organizations to sell nutritious foods (as defined by the Education Code 38085) at schools no more than two days per month, requiring that all income generated benefits the school or a pupil organization. AB 287 (Wesson) - This bill would require the membership of the Child Nutrition Advisory Council, which is appointed by the State Board of Education, to include two individuals who are specialists in physical fitness for children. AB 367 (Migden) - This bill seeks to increase compliance and enforcement of existing physical education requirements, and would require school districts to provide parents a copy of their child's physical fitness test results. AB 801 (Salinas) - This bill would authorize the Secretary of Food and Agriculture to promote increased purchases of California-grown produce by institutions via incentives, including additional funding for schools for this purpose. AB 893 (Campbell) - This bill would exempt snack foods, including those sold through vending machines, from tax. Prior Legislation: SB 1320 (Escutia, 2000) - This bill, as introduced, Continued--- STAFF ANALYSIS OF SENATE BILL 19 (ESCUTIA) Page 9 contained similar provisions to SB 19, increased physical education requirements, and proposed new policies related to pupils with diabetes. The Senate Education Committee amended it to include only the provisions related to diabetes, which was vetoed by the Governor, and referred the nutrition and physical education provisions of the bill to an informational hearing, which took place on January 31, 2001. Comment: The author has agreed to develop language to be amended into the bill to: 1) allow schools to phase in the requirements of the bill over a 2-3 year period; and 2) to provide clearer definitions of "entr?e" and "side dish." POSITIONS Continued--- Support: Center for Public Health Advocacy (sponsor) American Federation of State, County and Municipal Employees California Adolescent Nutrition and Fitness Program California Association for Health, Physical Education, Recreation and Dance California Food Policy Advocates California School Employees Association California WIC Association Children's Advocacy Institute SmithKline Beecham Oppose: California School Food Service Association California Nevada Soft Drink Association Grocery Manufacturers of America Hershey Foods Corporation -- END -- Continued---