SSSB 199-SCHOOL NUTRITION SUPPORT GRANTS    CHAIR DYSON announced SSSB 199 to be up for consideration.   2:31:02 PM SENATOR ELTON, sponsor, pointed out that the fiscal note is wrong and should predict a cost of $843,000 each year, rather than for one year. He explained that SSSB 199 provides an option for school districts to receive a $4-per-student bonus if they sell healthful food in the schools, as set forth in the bill. It doesn't affect the cap, and is meant to provide an incentive and be part of a solution to obesity and other health issues. It applies to food sold in vending machines, in cafeterias or at student-run fundraisers, but doesn't cover food that isn't sold, such as pizza at a class party. Furthermore, it doesn't cover food funded under the federal school lunch and nutrition program. He acknowledged that food sales at schools support ancillary programs and clubs, but disputed the assumption that sales would drop if foods weren't sugar-rich; he indicated a decline in sales likely would happen the first year only, followed by a recovery. Additionally, Senator Elton surmised that adding $4 per student to the budgets of districts that choose this option may add an incremental amount of money to the school activity funds. Thus the bill provides for healthful food and supports student activities, with the goal of a healthier student population. He reported that the sponsor substitute reflects changes suggested by the numerous school districts and organizations that reviewed the bill after its introduction. For example, rural school districts had expressed concern that traditional foods would be precluded; the bill was changed so those aren't implicated. Senator Elton noted differences of opinion on whether certain foods are healthful; for example, whole milk is allowed because some people in the health field suggest the benefits of calcium outweigh other issues, though some in the schools feel otherwise. Highlighting the basic nature of the "recipes" in the bill, which don't prevent the departments from developing stricter ones, Senator Elton brought attention to letters of support in the committee packets, saying additional letters had been received as well. 2:38:39 PM CHAIR DYSON referred to page 2, line 9, which begins, "(B) depict only physical activity". He asked what that means. SENATOR ELTON replied that it reflects picking and choosing among what other states have done. Several states have used the idea that a school vending machine should depict a healthful food. The intent is that advertising on the front shouldn't undermine what is actually offered in the machine. 2:39:45 PM JESSE KIEHL, Staff to Senator Kim Elton, Alaska State Legislature, added that along with paragraph (C), the aforementioned phrase refers to what is depicted on vending machines in schools in a district that chooses to apply for the grant. Rather than having a scantily clad individual eating pork rinds, for instance, the images would depict physical activity or foods and beverages allowable under the bill. SENATOR ELTON suggested a more likely image would be someone drinking a cola. CHAIR DYSON pointed out that someone could be shown smoking a cigarette or performing another activity not seen as desirable. He suggested the sponsor might want to consider this. 2:41:28 PM SENATOR GREEN asked about calculations for the fiscal note, which wasn't in committee packets. SENATOR ELTON suggested those who wrote the fiscal note could answer better. He remarked that some districts have initiated programs that likely would qualify under the bill, but without the incentive. He reiterated that the fiscal note he'd received was in error because it assigned a one-year cost. MR. KIEHL affirmed he had a copy. He related his understanding that the fiscal note assumed every district would participate in the first year, as shown on an attached spreadsheet showing all 53 districts. CHAIR DYSON noted that Eddy Jeans, Department of Education and Early Development (DEED), had nodded his assent. Chair Dyson asked whether Senator Elton had done research on the costs of dental disease and other implications on public budgets when people have unhealthful diets. SENATOR ELTON revealed he'd opted not to provide an overview that ranged "from scary to horrific." He reported that close to 25 percent of the Alaskan population is classified as obese, much higher than in recent years. There are many causes; this bill isn't the silver bullet to solve them all. However, increased health problems correlate with obesity or poor eating habits, including diabetes and dental health problems. While DEED could prepare its fiscal note by applying an upper limit of $4 across all the districts, Senator Elton pointed out that it doesn't address hypothetical costs such as those for bad health habits that begin at an early age, or savings from good health habits over time. CHAIR DYSON suggested statistics might be available for public money paid for nonpreventative dental care for K-12 children. 2:47:50 PM CHAIR DYSON opened public testimony. DAVE JONES, Director of Finance, Kodiak Island Borough School District, explained that his district has been looking at this issue. He cited his high school as a good example: it has vending machines and on-site sales that generate a significant amount of money to fund activities and to allow students to participate who otherwise would be unable to. Many of the items currently sold are not nutritional. Mr. Jones predicted that adopting this new policy would result in a large drop in funding and thus a drop in physical activity. However, part of the reason he'd support this bill is because the revenue won't replace what is being raised already, but will help. He informed members that his only concern relates to sales in elementary schools. He gave an example of a local school used for community activities. During the day, the soda machine is shut down, but it works in the off hours; the money is used for student field trips and so forth. Mr. Jones emphasized ensuring that the bill doesn't eliminate more than is desired. SENATOR ELTON suggested the aforementioned machine would be protected in two ways. First, the bill only relates to sales of food from one hour before school until one hour after. Because of concerns from rural communities with K-12 students in the same building, the bill ensures that the presence of elementary students in the building doesn't preclude having a vending machine. He added that teachers and school administrators would be expected to try to control the purchasing behavior of elementary students by posting and enforcing signs on the machines, for example. CHAIR DYSON asked how many students are in the school district. MR. JONES replied about 2,736. CHAIR DYSON noted that $4 per student would be about $11,000. He asked how much profit is netted from the vending machines. MR. JONES answered about $17,000 a year. There are sales beyond that. Observing that the bill relates to the adjusted ADM, he said he'd been figuring about $16,000 to $18,000. He added that the booster club's morning sales of coffee and donuts contribute more than the vending machines. 2:54:20 PM SUZANNE MEUNIER, Director of Advocacy, American Heart Association (AHA), stated support for the bill. Noting that obesity is a cause of cardiovascular disease - Alaska's leading cause of death - as well as high blood pressure, elevated cholesterol and diabetes, she predicted that preventing obesity through good nutrition and physical education would help to significantly reduce these killers. Mentioning research directly linking good nutrition and the ability to learn, play, grow and develop, Ms. Meunier said well-nourished children have higher test scores, better attendance and fewer behavioral problems. She noted currently there is little guidance for food sold outside the federal school meals program; she suggested the school environment should reinforce classroom nutrition education. On behalf of AHA, she respectfully urged the committee to move the bill forward. 2:56:41 PM TAMMY GREEN, Section Chief, Chronic Disease Prevention and Health Promotion, Division of Public Health, Department of Health and Social Services (DHSS), spoke in support of efforts to increase nutritional content in the schools, particularly in relation to vending machines. She mentioned working with schools and parents to increase the health of children, noting that obesity is a problem projected to grow over the next several years. However, this is an education bill. Ms. Green indicated DHSS would defer to DEED's lead and would support its decisions in any way possible if this were to become law. SENATOR ELTON asked if the figures are correct. MS. GREEN replied they are correct. 2:58:59 PM PEGGY COWAN, Superintendent, Juneau Borough Schools, spoke in support of SSSB 199, noting that her school district is focusing on health this year. She highlighted the common interest of decreasing obesity and increasing activity. Although she couldn't predict an exact monetory amount and agreed with previous speakers that this would be lowballing current revenues from vending machines and other sales, Ms. Cowan said this would be an incentive to implement such a program. She pointed out that the Juneau school district funding goes not only to student activities, but also to items like classroom computers. She reported that one local middle school switched to more healthful snacks at lunchtime this year, resulting in a dramatic decrease in sales; she expressed hope that Senator Elton's prediction that sales would decline only in the first year would hold true. Ms. Cowan expressed appreciation for leadership at the state level to promote health and partnering with the school districts to do so. She recommended one change: link the definition of "minimal nutritional value" with the federal definition. Noting the bill's definition is more rigorous, Ms. Cowan pointed out the problems for school districts struggling to keep up with federal definitions and then having new state definitions as well. CHAIR DYSON asked whether the federal standard mentions dental health. MS. COWEN pointed out that experts from DEED were present. She offered her understanding that the federal standards relate to nutritional content and preparation methods for various beverages and foods, rather than particular health standards. CHAIR DYSON recalled attending a seminar about the effects of sugar and carbonic acid on the enamel of immature teeth. MS. COWEN said she hadn't belabored the statistics except to acknowledge that Juneau unfortunately shares them, but added that carbonated beverages aren't good for bones either. In further response, she estimated the school district's take from food sales to be about $8 to $10 a head, for about 5,000 students. CHAIR DYSON asked whether the district receives $40,000 to $50,000 net income, then, from food sales. MS. COWEN replied, "At least." She related her understanding that, according to Mr. Jeans, this new program would provide about $30,000. 3:05:12 PM SENATOR ELTON suggested a complete correlation is difficult. A bake sale in conjunction with a basketball game wouldn't be covered by this bill, for example, if it happened more than an hour past the end of the school day - which is the usual case. MS. COWEN agreed, surmising that most vending machine sales happen when there are community - rather than school district - activities. She again expressed appreciation for a financial incentive for doing what the districts should be doing. 3:06:21 PM CHAIR DYSON called upon Stacy Goade and Barbara Thompson of DEED to answer questions. BARBARA THOMPSON, Director, Teaching and Learning Support, Department of Education and Early Development, explained that Ms. Goade is the administrator for all the child nutrition programs. CHAIR DYSON asked Ms. Goude what she thinks about the pressure school districts are under when someone from a company comes to a school and proposes renting floor space in return for money. STACY GOADE, School Food Coordinator, Teaching and Learning Support, Department of Education and Early Development, affirmed this happens. She said behind the bill is the "local wellness" law that came with the Child Nutrition [and WIC] Reauthorization Act of 2004. The national school lunch program now requires participating school districts to have a local school wellness policy. Thus the commissioner's office and her office have worked with school districts this year and partnered with the Alaska Association of School Boards (AASB) and Tammy Green's staff at DHSS to develop a sample policy for school boards to use; it's a template, not a requirement. She noted this is a confusing time for school districts, since the local policy has slightly different "nutrition standards," which she suggested is a better term than "foods of minimal nutritional value." CHAIR DYSON asked Ms. Goude what she would have school districts do, if she had her preference. MS. GOUDE said she couldn't answer, but understood all the underlying issues. They're short on funding, she concluded. SENATOR ELTON asked whether the federal definition is looser with respect to the definition of good food and beverages. MS. GOUDE affirmed it's much less rigorous; it helps mostly with items such as licorice, marshmallows and other sugar-laden foods. She suggested the "food and beverage standards" in the bill are much more rigorous than the "foods of minimal nutritional value" under the federal law for child nutrition programs. In response to Senator Elton, she specified that she believed the term, not the standards, should be changed. She noted that in working with districts, there are three different definitions of foods, which is confusing. SENATOR ELTON announced he would consult with Ms. Goude on the aforementioned language. He indicated it had been decided that the federal standards are weak. MS. GOUDE said "foods of minimal nutritional value" is a specific category defined in federal law. In response to Chair Dyson, she indicated schools have dealt with perhaps 20 new changes under the school lunch program since the 2004 federal Act. She listed five components for school boards: 1) develop a policy to increase physical activity in schools; 2) address and increase nutrition education; 3) deal with all the foods outside the national school lunch program, which has its own nutrition standards; 4) address other health-related issues; and 5) have a team, implement it and monitor it. CHAIR DYSON asked what is required with respect to foods available in the schools. MS. GOUDE answered that they're required to develop a policy; then the superintendents would develop the administrative regulations under the school board policy to address all foods outside of the federally funded national school lunch program - à la carte foods and items from food stores, morning sales and vending machines. It's a local policy, for the school districts themselves to determine - the federal government has been specific about that - and the policy is developed with a group that represents the community and the schools. In further response, Ms. Goude said there definitely is parent communication involvement in this policy development, at each school site. CHAIR DYSON asked whether, when the process is completed, there is a requirement that parents be informed of the policy. MS. GOADE said yes, there needs to be communication with the parents. CHAIR DYSON asked whether it has to meet any standard. MS. GOADE answered that they don't have to meet any specific standard, but the aforementioned board policy was developed with the AASB and two state agencies to complete a template to help them begin somewhere. The sample policy is much more rigorous than the "foods of minimal nutritional value," she added. CHAIR DYSON asked whether there is any way to audit how well the goals are accomplished. MS. GOADE answered that part of the state agency administrative responsibility for the child nutrition programs is to review them next year as they begin to be implemented. They need to have these policies July 1. Next school year the policies will be developed, and then it will be seen what is actually implemented in these schools. "We will report back to the feds on what our state has done with local wellness policy development," she added. CHAIR DYSON asked what happens if the policy is to continue to sell food that rots children's teeth because of the money generated. MS. GOADE indicated the department does a federal on-site review, looks to see what the policy is, and reports back to the federal government that there is a policy in place. She noted that the federal guidance to the state agencies is not to be subjective or to personally evaluate the local policy. CHAIR DYSON surmised the federal government wouldn't do anything about it either. MS. GOADE replied that it will be determined at a later date. She observed that the practice has been to implement such programs and then see what the states report back. She noted it was the federal government that implemented the local wellness policy, because sales from vending machines and outside food sales were impacting the federally funded school food program - to extinction in some places. 3:16:24 PM SENATOR GREEN suggested a far greater problem is that many school lunch programs provide food that isn't any more nutritional than what comes from a vending machine, and isn't as tasty. MS. GOUDE noted the federal government will be ramping up its "school meal initiative standards" and the commodity program for foods used by school districts to be more in line with the dietary guidelines for Americans. Thus she suggested the federal government sees the need to strengthen those areas. 3:17:33 PM SENATOR ELTON announced he probably would bring an amendment to the next hearing after working with Ms. Goude. He estimated sales in Alaska from vending machines, à la carte sales and student store sales to be about $1.5 million. At $4 a student, the bill would recover about $843,000. Senator Elton said he wouldn't object to raising the limit to $7, which would provide more incentive; he encouraged other members to offer such an amendment if they believed this to be a good and workable idea. SSSB 199 was held over.