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  
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            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  
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            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  
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          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  
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          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  
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          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  
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          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.  
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          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,  
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          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  





























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          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

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