HB 163-NUTRITION STANDARDS; SCHOOL FUNDRAISERS  9:32:37 AM CHAIR KELLER announced that the final order of business would be HOUSE BILL NO. 163, "An Act relating to school fundraisers; relating to the duties of the Department of Health and Social Services; and providing for an effective date." 9:33:28 AM REPRESENTATIVE TAMMY WILSON, Alaska State Legislature, paraphrased the sponsor statement as follows [original punctuation provided]: Imagine it is your child's birthday and you spend tile evening baking cupcakes to share with their class. After hours of baking and decorating you carefully wrap your snack ready for the next day's activities. The next morning you head out with your excited birthday child and walk proudly into the school with your treat. To your dismay you are told that the time honored tradition of homemade treats has now come under federal attack. The Federal Smart Snacks standards outline in Healthy, Hunger-Free kids Act of 2010 requires all food during the school day to meet national nutrition standards. Your child is devastated! Having overstepped its regulatory authority, the USDA has proposed a sweeping plan that would regulate the types of foods and beverages that can be marketed on school property. The resulting laws put the Department of Agriculture in the business of determining the amount of calories, fat and sodium students should consume in a given school day. I would like to just repeat--the Department of Agriculture. The agriculture secretary is now telling schools the type of milk, vegetables and grain that cannot be served in cafeterias. The law places greater federal control over weliness [sic] policies best left in the hands of state and local leaders. The Federal standards will severely cut into the thousands of dollars schools raise to support school programs and activities. Currently, all Alaskan school fundraisers for PTAs, student groups, and sport teams are now limited to selling carrot sticks and rice cakes to generate revenue. Parents who wish to contribute homemade items for school events must now review their family recipes to ensure federal compliance to nutritional standards. Forcing parents and school organizations to only offer federally approved food and snacks at fundraisers is a perfect example of federal overreach and intrusion into the time honored tradition of the [sic] school bake sale. The Healthy, Hunger-Free Kids Act of 2010 (HHFKA), requires that all food sold outside of the school meal programs, on the school campus and at any time during the school day must meet national nutrition standards. The "Smart Snacks" standards allows State governments flexibility for special exemptions for the purpose of conducting infrequent school-sponsored fundraisers during which foods that do not meet the nutrition standards for Smart Snacks may be sold. State agencies may determine the frequency with which fundraising activities take place that allow the sale of food and beverage items that do not meet the nutrition standards, Alaska is one of 29 states that currently do not have a policy under the Smart Snacks standards. As a result, the state of Alaska has defaulted to zero exempt fundraisers. Thus, all school fundraisers in Alaska must meet the strict nutrition standards as set by the federal government. It is the purpose of HB 163 is to require the Department of Education and Early Development to adopt regulations authorizing schools to approve fundraisers involving the sale of foods that do not meet the food nutrition standards. Thank you for your support of HB 163. 9:38:57 AM CHAIR KELLER requested an explanation of the title wherein there is the suggestion of the elimination of the terminology relating to the duties of the Department of Health & Social Services (DHSS). He questioned whether DHSS has no duties under this code. REPRESENTATIVE WILSON responded it was an error by Legislative Legal and Research Services and since the bill is before the committee, any other changes could happen at this time. This has nothing to do with the DHSS as it all falls under the Department of Education and Early Development (DEED). 9:39:59 AM REPRESENTATIVE VAZQUEZ asked whether the proposed change has any effect on school funding from the federal government. REPRESENTATIVE WILSON advised that as the bill is currently written, the regulations are for infrequent fundraisers and it would have no impact. In the event the bill is changed to allow the districts to have as many as they prefer, she opined that it could impact how the monies come in from the federal programs. REPRESENTATIVE VAZQUEZ surmised that the frequency is not explicitly set forth in the bill but the sponsor expects DEED to issue implementing regulations. REPRESENTATIVE WILSON explained that DEED would determine the definition of infrequent for the districts and would set the policy, and she opined there would be reporting regarding a fundraiser not meeting the requirements of a Healthy Snack [42 U.S.C. 1179] 9:41:34 AM REPRESENTATIVE KREISS-TOMKINS asked Representative Wilson whether she has a sense as to why the Department of Education & Early Development (DEED) has not adopted regulations this bill addresses. REPRESENTATIVE WILSON responded she is unsure why DEED has not adopted regulations, but she did receive an email indicating that DEED is looking into it. 9:41:57 AM REPRESENTATIVE VAZQUEZ asked whether there is a letter from the U.S. Department of Education stating this would not jeopardize school funding if the regulations set forth constitute infrequent. REPRESENTATIVE WILSON answered that it is part of the entire policy as it does give a variance allowing DEED to write regulations only for "infrequent." This bill directs DEED to follow through, although it could do that on its own if it so chose, and because they haven't no fundraisers with unhealthy snacks can proceed, she explained. 9:42:49 AM REPRESENTATIVE TALERICO surmised, with regard to the title, the sponsor would prefer to delete the Department of Health and Social Services (DHSS) and insert the Department of Education and Early Development (DEED) on page 1, line 2. REPRESENTATIVE WILSON responded it could be accomplished either way, such as removing "; relating to the duties of the Department of Health and Social Services;" as it is related to fundraisers, or insert Department of Education and Early Development as either would include the intent. 9:43:33 AM REPRESENTATIVE VAZQUEZ referred to AS 14.07.020(a)(18), Sec. 1, page 3, lines 27-29, which read: (18) adopt regulations authorizing schools to  approve fundraisers involving the sale of foods that  do not meet food the nutrition standards under 42  U.S.C. 1779. [REPEALED] REPRESENTATIVE VAZQUEZ asked where guidance is located wherein infrequent use of this exception will not cause trouble for Alaska with regard to federal funding. She requested a document that actually offers guidance that Alaska will not jeopardize federal funding. REPRESENTATIVE WILSON responded she will provide the terminology (in her hand) that came directly from the U.S.C Code and stipulated "we did not make any of this up ... what being infrequent versus frequent. This is actually in their law for the healthy snack 2010, that was passed, and we can make sure that each member has the actual rule which is right here that says that 'they have to be infrequent.'" She reiterated that the sponsor's intent when sending the bill to Legislative Legal and Research Services "was to make it so they could continue to do them as they have been doing, and we were told by Legislative Legal and Research Services that could not be done and had to be infrequent if we wanted to stay within the federal guidelines." REPRESENTATIVE VAZQUEZ asked Representative Wilson to distribute the document to the committee members. CHAIR KELLER pointed to the zero fiscal note, and noted a comment that the U.S. Department of Education has the regulations on this particular topic on the waiver. 9:45:36 AM REPRESENTATIVE VAZQUEZ commented that since DEED has not issued proper regulations to implement this, she questioned whether there should be another provision requiring DEED to implement this provision appropriately. REPRESENTATIVE WILSON advised that this bill requires DEED to write the regulation and implement it, and referred to "(18) adopt regulations authorizing schools to approve fundraisers involving the sale of foods that do not meet the food nutrition standards under 42 U.S.C. 1779." She advised that once DEED adopts the regulations and it becomes enacted, the districts will again be able to hold fundraisers through whatever procedure DEED determines. She opined a form is filled out depicting who is holding the fundraiser, what is being sold, what would count against them, and every state has been different. CHAIR KELLER pointed out that the driver is AS 14.07.020(a), Sec. 1, page 1, line 5, which read: (a) The department shall 9:47:08 AM REPRESENTATIVE VAZQUEZ suggested including a time provision. REPRESENTATIVE WILSON replied that "anything that gets them moving works for me." She referred to Sec. 2, page 3, line 30, which read: Sec. 2. This Act takes effect immediately under AS 01.10.070(c). REPRESENTATIVE WILSON opined that it may be effective immediately but they haven't prepared them quickly. She said she is amenable to "an amendment that just says specifically on a time limit ... (indisc.) past a certain date so at least for this next school year, they would be able to do this." She pointed out that that this is ironic in that a student is allowed to bring whatever they prefer in their lunch, and are allowed to bring items to a birthday party, and to say during the lunch hour, when most fundraisers happen, "that we're going to become so unhealthy because of that, parents have control whether they give children money, whatsoever." She said school can, and she wasn't sure this was the way to go, offer their fundraisers in the morning or directly after school. She said, "We're not stopping anything here but I think to pretend the federal government needs to go into every aspect of our school is really what is kind of appalling about this particular one." She noted that "infrequent" is not currently in the law saying whether it is 10, 20, 30, 40, as it has been left up to the department to determine what that is. CHAIR KELLER opened public testimony. 9:49:10 AM BARBARA HANEY testified in wholehearted support of HB 163 and said fundraisers are critical for sports teams, especially during a time of tight fiscal concerns as these fundraisers are absolutely important. She urged a fast track on the bill to allow schools to raise the necessary funds, and said the U.S. Department of Education has gone out of its way to regulate what snacks are sold at schools. She opined this is far beyond the 10th Amendment. She advised that students train for years, get to this point, and can't go [to the event] because there are no funds due to the state having no money and, yet, they can't have a fundraiser due to the federal government. 9:50:36 AM PATRICE LEE expressed her confusion as to why the federal government would be blamed for Alaska not having a better process for snacks in schools as that is certainly the state's option and added that other states have done it. She also expressed concern that the items sold at fundraisers have no quality control. For example, she noted, she once opened a package of "goodies" to be sold at a school fundraiser and it had either dog or rat hair in it and pointed out that when the public sells at a Farmer's Market, they must go through a particular process to ascertain their product is safe. She suggest that [standard] should stand for birthday parties and other events especially if schools are going to have large scale fundraisers where items are brought from home and sold during the day at school. She noted that, as a teacher, they cannot control how much sugar goes into students as not all snacks are sugars, but certainly many are. She remarked she has seen fundraisers going on, as she is in and out of schools all the time in Fairbanks, and is confused as to why there is some talk about it not being allowed as it doesn't seem to be hindered at lunch time. Lastly, she expressed, the more the school depends upon fundraisers, or having a fundraiser for "this or that," it takes the appropriate budgeting off the hook for supporting education. She asked whether there will be fundraisers for bus fare to school, and stated her greatest concern is quality control measure at fundraisers, and she is not sure where that would be in this bill. She pointed out the possibility of a student eating something, getting sick, and the school is blamed. She asked the committee to perform its due diligence in this bill. CHAIR KELLER closed public testimony after ascertaining no one further wished to testify. 9:54:28 AM REPRESENTATIVE WILSON addressed a concern in that she does not believe an organization can have a fundraiser within the school without permission, and discuss the name of the entity holding the fundraiser, where the funds will go, and the list of items being sold, as more and more restrictions have been set upon these types of events throughout the year. She explained that this bill addresses a new federal regulation enacted that now includes more rules. She expressed her frustration in that it will add more to school districts because rather than saying "you can use your best ... you know, knowledge about what you need in your districts, we're not going to tell you what infrequent is. And then I'll guarantee you because its government there is going to be more paperwork that is going to be spent on this versus in classroom and to the educational portion of it." She opined it is important, during these times, to allow these organizations to raise their own funds, otherwise there could potentially be less band participation, less football teams because "there is very little bit of funding that comes through the state" for the extracurricular activities which adds to the school day. 9:56:21 AM MIKE HANLEY, Commissioner, Office of the Commissioner, Department of Education and Early Development (DEED), [Available to answer questions.] 9:56:55 AM REPRESENTATIVE SEATON asked whether the Department of Education and Early Development (DEED) is currently adopting regulations or whether there are difficulties with this bill from DEED's standpoint. COMMISSIONER HANLEY responded that this doesn't require regulations as the state agencies are given the authority to provide those waivers and are in the process of moving forward. He advised that approximately one month ago he had an opportunity to provide the Alaska Association of School Boards (AASB) with the regulations from the United States Department of Agriculture (USDA), around the smart snack language and requested their input as to what kind of frequency is needed. REPRESENTATIVE SEATON pointed to the committee packet which included a USDA, April 17, [2014] letter from Child Nutrition Programs indicating it could not be left up to local educational agencies (LEAs) or to school food authorities (SFAs) and asked whether he was misinterpreting Commissioner Hanley's comments. COMMISSIONER HANLEY replied that the state education agencies (SEAs) have been given the authority to work with the local education authorities (LEAs,) but the locals are not allowed to set their own policies individually and must work through the SEA. He advised he is setting parameters based upon the requirements of these federal laws and the needs of Alaska's local school districts. 9:59:14 AM REPRESENTATIVE SEATON requested clarification as to whether the law requires that a state agency must set an upper limit on the number of fundraisers allowed, not through regulation but rather another recognized process. COMMISSIONER HANLEY replied "that is correct." He advised he shared a USDA document with the AASB yesterday, and will provide the document to the committee, which includes a succinct and clear understanding of what that is, what other states have done, the amount of waivers they've given, and how long they can go. REPRESENTATIVE SEATON indicated the committee would like to see the document. REPRESENTATIVE VAZQUEZ surmised that the bottom line, with regard to his testimony, is that the department does not need to adopt regulations to implement this provision within the proposed bill. COMMISSIONER HANLEY answered "that is correct." He said he was unaware this bill was coming forward or he could have shared the fact that he worked with the department's child nutrition services division and has had the information based upon a conversation with people in Ketchikan. He commented that a regulation is not necessary to "do this as per the federal outlines," as the SEAs are given the authority to create waivers. 10:01:14 AM REPRESENTATIVE VAZQUEZ requested Commissioner Hanley cite the federal provision he is relying upon. COMMISSIONER HANLEY advised he will provide it. REPRESENTATIVE VAZQUEZ pointed to the committee packet and the Federal Register, Vol. 79, No. 38, Department of Agriculture, Food and Nutrition Service, 7 C.F.R. Parts 210 and 220 "Local School Wellness Policy Implementation Under the Healthy, Hunger- Free Kids Act of 2010," and stated those are proposed rules and asked what are the final rules. COMMISSIONER HANLEY explained that the document he will provide includes the federal regulatory reference. Ultimately, he explained, [the department] is moving in the same direction of recognizing federal law that has come down based upon schools participating in the school luncheon breakfast program, and the ability for the department to give waivers for those particular situations based upon local decisions. He opined, should this bill pass it will be slower going than if he goes forward and does it on his own as putting a regulation in place requires going to the Alaska Board of Education in September, as it meets quarterly, then going out for a public comment period in September, and being voted on and adopted in December. He indicated that when he spoke with Alaska Association of School Boards (AASB) yesterday that something could be in place by next year, at the end of this school year. 10:03:24 AM REPRESENTATIVE VAZQUEZ requested the final federal regulations, as the proposed regulations are dated February 26, 2014. She requested confirmation that October will be the Alaska State Board of Education's face-to-face quarterly meeting. COMMISSIONER HANLEY advised it has a three day retreat in June, as the Alaska State Board of Education has quarterly meetings, and also additional meetings. COMMISSIONER HANLEY, in response to Representative Vazquez, advised the next meeting is in June. 10:04:18 AM REPRESENTATIVE DRUMMOND expressed confusion that if the department is already writing regulations based upon comments it has heard through the communities and the fact that passing this bill would slow down that process, she does not understand why the bill is being considered. CHAIR KELLER advised that the bill is being considered because the committee just received that information and will leave that discussion between DEED and the sponsor which will determine the committee's next steps. 10:04:46 AM REPRESENTATIVE VAZQUEZ asked for clarification as to whether Commissioner Hanley is stating that DEED is actually writing regulations at this point in time. COMMISSIONER HANLEY responded "No, that is not what I testified," and advised he testified to the fact that USDA allows SEAs to set up statewide waivers to the federal law and that is being undertaken now. CHAIR KELLER clarified that a waiver is not necessarily a regulation as it can be a memo. REPRESENTATIVE VAZQUEZ asked whether the statewide waivers will be in a memo format, or what format. COMMISSIONER HANLEY advised he has not determined the exact format, but will have a format that goes directly to USDA so it knows where Alaska stands as well as to all school districts. He noted that a memo appears to be an appropriate format but he has not yet made that determination. REPRESENTATIVE VAZQUEZ questioned why regulations were not considered. COMMISSIONER HANLEY advised he is not an advocate for adding regulations where they are not needed and this was a straight- forward opportunity for the department to provide needed exemptions for local school districts without going through that process. Yet, he opined, a positive thing about regulations is the built in public comment period and with a lack of that, he chose to work directly with the school boards to get the public's input. REPRESENTATIVE VAZQUEZ quiered when the waivers would be issued, and whether it is district-by-district or a statewide waiver. COMMISSIONER HANLEY expressed his goal for a statewide waiver as opposed to individual waivers. He gave the school boards approximately one month and will send it to the head of the AASB so there is clarity around specific deadline dates. He thought he may have something by the end of May, or the end of the school year. REPRESENTATIVE VAZQUEZ surmised Commissioner Hanley will start receiving feedback from the school boards. COMMISSIONER HANLEY replied "yes, I'm going that ... I'm going to ask them to submit it to the head of their organization and they can bring it all together. CHAIR KELLER announced HB 163 is held in committee. 10:08:26 AM