Bill Text: CA AB2782 | 2015-2016 | Regular Session | Amended
Bill Title: Healthy California Fund.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2782 Detail]
Download: California-2015-AB2782-Amended.html
BILL NUMBER: AB 2782 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 30, 2016
INTRODUCED BY Assembly Member Bloom
(Coauthors: Assembly Members Chiu and Wood)
FEBRUARY 19, 2016
An act to amend Section 104655 of the Health and Safety
Code, relating to nutrition. An act to add Chapter 5
(commencing with Section 104895.50) to Part 3 of Division 103 of the
Health and Safety Code, relating to public health.
LEGISLATIVE COUNSEL'S DIGEST
AB 2782, as amended, Bloom. Healthy food.
Healthy California Fund.
Existing law provides for various programs that prevent disease
and promote health.
This bill, subject to specified exemptions, would impose a fee on
every distributor, as defined, for the privilege of distributing in
this state bottled sweetened beverages, at a rate of $0.02 per fluid
ounce and for the privilege of distributing concentrate in this
state, either as concentrate or as sweetened beverages derived from
that concentrate, at the rate of $0.02 per fluid ounce of sweetened
beverage to be produced from concentrate. The Board of Equalization
would be responsible for administering and collecting the fee and
registering the distributors upon whom the fee is imposed. These
amounts would be deposited into the Healthy California Fund, created
by the bill. The bill would require moneys in the fund, upon
appropriation by the Legislature, to be allocated to the State
Department of Public Health, the State Department of Health Care
Services, the Department of Education, and the Department of Food and
Agriculture, as specified, for various purposes related to statewide
diabetes and childhood obesity treatment and prevention activities
and programs, including awarding competitive grants to local
governments, nonprofit organizations, school districts, and other
entities for activities in support of the bill's objectives. This
bill would also authorize the State Public Health Officer, the
Director of Health Care Services, the Superintendent of Public
Instruction, and the Secretary of Food and Agriculture to establish
regulations and provide procedural measures to bring into effect
those purposes.
The bill would create the Healthy California Fund Oversight
Committee, to advise the affected state departments in implementing
the bill's requirements. Among other requirements, the committee
would evaluate programs and interventions funded under the bill and
report to the Legislature annually regarding programs funded by the
Healthy California Fund. The committee would produce a comprehensive
master plan for implementing diabetes and obesity prevention programs
throughout the state, increase healthy eating and active living,
reduce food insecurity, and promote sustainable, healthy, resilient
communities.
This bill would require the State Department of Public Health, in
consultation with the other participating departments, to prepare and
adopt an annual program budget, as specified. The bill would
establish the Children and Family Health Promotion Administration
Account within the fund, to be used, upon appropriation by the
Legislature, to reimburse expenditures by the State Department of
Public Health in administering and implementing the activities
required by the bill, and to repay specified loans from other funds.
This bill would make legislative findings and declarations
relating to the consumption of sweetened beverages, diabetes,
childhood obesity, and dental disease.
This bill would include a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.
Existing law requires the State Department of Public Health to
establish and implement the 5 A Day--For Better Health program to
promote public awareness of the need to eat more fruits and
vegetables in order to improve health and prevent major chronic
diseases. Existing law provides that nothing shall operate to
prohibit contributions to the program by certain marketing
organizations and commissions subject to specified provisions.
This bill would make technical, nonsubstantive changes to this
provision.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares as
follows:
(a) Over 2.3 million California adults report have been diagnosed
with diabetes, representing one out of every 12 adult Californians.
The vast majority of diabetes cases in California are type II,
affecting 1.9 million adults.
(b) According to the State Department of Public Health, diabetes
is the seventh leading cause of death in California and has been
determined to be the underlying cause of death for almost 8,000
people each year.
(c) Adults with type II diabetes more often have other health
problems. Half of adults with type II diabetes also have
hypertension. This rate of occurrence is twice as high as for those
without diabetes. Adults with diabetes are also twice as likely to
have cardiovascular disease than adults without diabetes.
(d) Adults with diabetes are 50 percent more likely to have
arthritis than adults without diabetes. Over 40 percent of new cases
of kidney failure are attributed to diabetes. New cases of kidney
failure declined slightly from 2001 to 2007, but began to increase
again after 2007.
(e) Hispanics, African Americans, American Indians, Alaska
Natives, Asian Americans, Native Hawaiians, and Pacific Islanders
have a higher prevalence of type II diabetes than non-Hispanic
whites. Hispanics and African Americans have two times higher
prevalence: 7 percent of non-Hispanic Whites have type II diabetes,
compared with 12 percent of Latinos, 9 percent of Asian Americans, 14
percent of Pacific Islander Americans, 13 percent of African
Americans, and 17.5 percent of American Indian and Alaska Native
populations. In some populations, type II diabetes remains
undiagnosed. For example, more than half of Asian Americans with type
II diabetes, and even more Asian Americans with prediabetes, are
undiagnosed. Nationally, the lifetime risk of developing diabetes is
now 40 percent, or 2 of every 5 adults, and exceeds 50 percent for
Hispanic men and women and non-Hispanic black women. If trends are
not reversed, it is predicted that 40 percent of Americans and nearly
half of Latino and African American children born in the year 2000
will develop type II diabetes in their lifetime.
(f) The prevalence of obesity in the United States has increased
dramatically over the past 30 years. In California, obesity rates
have increased even more, rising from 8.9 percent in 1984 to 23.8
percent in 2011. Although no group has escaped the epidemic,
low-income populations and communities of color are
disproportionately affected.
(g) The rate of children who are overweight has also increased
dramatically in recent decades. In 2010, 38 percent of California
children in grades 5, 7, and 9 were overweight or obese. Thirty-one
of California's 58 counties experienced an increase in childhood
obesity from 2005 to 2010.
(h) In 2006, overweight and obesity-related health costs in
California were estimated at almost $21 billion. The cost of health
care alone for diabetes in California in 2010 is estimated to have
been $13 billion.
(i) There is overwhelming evidence of the link between obesity,
diabetes, and heart disease and with the consumption of sweetened
beverages, including soft drinks, energy drinks, sweet teas, and
sports drinks. California adults who drink one or more per day are 27
percent more likely to be overweight or obese, regardless of income
or ethnicity.
(j) According to nutritional experts, sweetened beverages, such as
soft drinks, energy drinks, sweet teas, and sports drinks, offer
little or no nutritional value, but massive quantities of added
sugars. A 20-ounce bottle of soda contains the equivalent of
approximately 16 teaspoons of sugar, yet the American Heart
Association recommends that Americans consume no more than five to
nine teaspoons of sugar per day.
(k) Research shows that almost half of the extra calories
Americans consume in their diet comes from sugar-sweetened beverages,
with the average American drinking nearly 50 gallons of
sugar-sweetened beverages a year, the equivalent of 39 pounds of
extra sugar every year.
(l) Research shows that 41 percent of California children from 2
to 11 years of age, inclusive, and 62 percent of California teens
from 12 to 17 years of age, inclusive, drink soda daily, and for
every additional serving of sweetened beverage that a child consumes
per day, the likelihood of the child becoming obese increases by 60
percent.
(m) Sugary drinks are a unique contributor to excess caloric
consumption. A large body of research shows that calories from sugary
drinks do not satisfy hunger the way calories from solid food or
beverages containing fat or protein do, such as those containing milk
and plant-based proteins. As a result, sugary beverages tend to add
to the calories people consume rather than replace them.
(n) Dental caries, commonly referred to as tooth decay, is the
most common chronic childhood disease, and by third grade tooth decay
affects almost two-thirds of the children in California.
Twenty-eight percent of elementary school children- some 750,000-
have untreated tooth decay. Dental disease caused by tooth decay is
linked to broader health problems, including cardiovascular disease,
strokes and diabetes. It can lead to serious health, developmental,
and social concerns, as well as significantly increased cost of
restorative care and reliance on high-cost health care settings like
hospital emergency departments.
(o) Research shows that low income and minority populations
disproportionately feel the burden of tooth decay, as low-income
children suffer twice as much from dental disease as those from
higher income families, and their disease is more likely to be
untreated. Nationally, 32 percent of Latino children and 28 percent
of African American children have untreated tooth decay, compared to
only 18 percent of white children. Pain and infection from untreated
tooth decay impairs concentration and learning in students and leads
to missed schooldays.
(p) Sugar is the primary and necessary factor in the development
of tooth decay. In addition to sugar, the acids found in beverages
like soda, energy drinks, and juice erode tooth enamel, making
sweetened beverage consumption one of the most significant
contributors to dental caries in children. Children from families of
low socioeconomic status have a significantly higher consumption of
soda and other types of sugary beverages.
(q) It is the intent of the Legislature in creating the Healthy
California Fund to diminish the human and economic costs of diabetes,
obesity, heart disease, and dental disease in California. The fund
is intended to create a dedicated revenue source for health,
education, and wellness programs designed to prevent and treat
obesity, diabetes, and heart and dental disease and to reduce the
burden of attendant health conditions that result from the
overconsumption of sugar-sweetened beverages.
SEC. 2. Chapter 5 (commencing with Section
104895.50) is added to Part 3 of Division 103 of the
Health and Safety Code , to read:
CHAPTER 5. HEALTHY CALIFORNIA FUND
104895.50. The following definitions shall apply for purposes of
this chapter:
(a) (1) "Beverage for medical use" means a beverage suitable for
human consumption and manufactured for use as an oral nutritional
therapy for persons who cannot absorb or metabolize dietary nutrients
from food or beverages, or for use as an oral rehydration
electrolyte solution for infants and children formulated to prevent
or treat dehydration due to illness.
(2) "Beverage for medical use" includes a "medical food."
Consistent with Section 5(b)(3) of the Orphan Drug Act (Public Law
97-414; at 21 U.S.C. 360ee(b)(3)), "medical food" means a food that
is formulated to be consumed or administered enterally under the
supervision of a physician and that is intended for the specific
dietary management of a disease or condition for which distinctive
nutritional requirements, based on recognized scientific principles,
are established by medical evaluation.
(3) "Beverage for medical use" does not include drinks commonly
referred to as "sports drinks," or any other derivative or similar
terms.
(b) "Board" means the State Board of Equalization.
(c) "Bottle" means any closed or sealed container, regardless of
size or shape, including, without limitation, those made of glass,
metal, paper, plastic, or any other material or combination of
materials.
(d) "Bottled sugar-sweetened beverage" means any sugar-sweetened
beverage contained in a bottle that is ready for consumption without
further processing, such as dilution or carbonation.
(e) "Caloric sweetener" means any caloric substance suitable for
human consumption that humans perceive as sweet, including, but not
limited to, sucrose, fructose, glucose, fruit juice concentrate, or
other sugars. "Caloric sweetener" excludes noncaloric sweeteners. For
purposes of this definition, "caloric" means a substance that adds
calories to the diet of a person who consumes that substance.
(f) "Consumer" means a person who purchases a sugar-sweetened
beverage for consumption and not for sale to another.
(g) "Distributor" means any person, including a manufacturer or
wholesale dealer, who receives, stores, manufactures, bottles, or
distributes bottled sugar-sweetened beverages, syrups, or powders for
sale to retailers doing business in the state, or any combination of
these activities, whether or not that person also sells those
products to consumers.
(h) "Fund" means the Healthy California Fund.
(i) "Milk" means natural liquid milk, regardless of animal or
plant source or butterfat content, natural milk concentrate, whether
or not reconstituted, or dehydrated natural milk, whether or not
reconstituted.
(j) "Natural fruit juice" means the original liquid resulting from
the pressing of fruits, or the liquid resulting from the dilution
with water of dehydrated natural fruit juice.
(k) "Natural vegetable juice" means the original liquid resulting
from the pressing of vegetables, or the liquid resulting from the
dilution with water of dehydrated natural vegetable juice.
(l) "Noncaloric sweetener" means any noncaloric substance suitable
for human consumption that humans perceive as sweet, including, but
not limited to, aspartame, acesulfame-K, neotame, saccharin,
sucralose, and stevia. "Noncaloric sweetener" excludes caloric
sweeteners. For purposes of this definition, "noncaloric" means a
substance that contains fewer than five calories per serving.
(m) "Person" means a natural person, partnership, cooperative
association, limited liability company, corporation, personal
representative, receiver, trustee, assignee, or other legal entity.
(n) "Place of business" means any place where sugar-sweetened
beverages, syrups, or powders are manufactured or received for sale
in the state.
(o) "Powder" means any solid mixture of ingredients used in
making, mixing, or compounding sugar-sweetened beverages by mixing
the powder with one or more other ingredients, including, but not
limited to, water, ice, syrup, simple syrup, fruits, vegetables,
fruit juice, vegetable juice, or carbonation or other gas.
(p) "Retailer" means any person who sells or otherwise dispenses
in the state a sugar-sweetened beverage to a consumer whether or not
that person is also a distributor.
(q) "Sale" means the transfer of title or possession for valuable
consideration, regardless of the manner by which the transfer is
completed.
(r) "State" means the State of California.
(s) (1) "Sugar-sweetened beverage" means any nonalcoholic
beverage, carbonated or noncarbonated, that is sold for human
consumption and contains added caloric sweetener. As used in this
subdivision, "nonalcoholic beverage" means any beverage that contains
less than one-half of 1 percent alcohol per volume.
(2) "Sugar-sweetened beverage" does not include any of the
following:
(A) Bottled sugar-sweetened beverages, syrups, and powders sold to
the United States government and American Indian tribal governments.
(B) Bottled sugar-sweetened beverages, syrups, and powders sold by
a distributor to another distributor that is registered pursuant to
Section 104895.58 if the sales invoice clearly indicates that the
sale is exempt. If the sale is to a person who is both a distributor
and a retailer, the sale shall also be fee-exempt and the fee shall
be paid when the purchasing distributor or retailer resells the
product to a retailer or a consumer. This exemption does not apply to
any other sale to a retailer.
(C) Beverages sweetened solely with noncaloric sweeteners.
(D) Beverages consisting of 100 percent natural fruit or vegetable
juice, with no added caloric sweetener.
(E) Beverages in which milk, or soy, rice, or similar milk
substitute, is the primary ingredient or the first listed ingredient
on the label of the beverage.
(F) Beverages with fewer than five grams of added sugar or other
caloric sweeteners per 12 ounces.
(G) Coffee or tea without added caloric sweetener.
(H) Infant formula.
(I) Beverages for medical use.
(J) Water without any caloric sweetener.
(t) "Syrup" means a liquid mixture of ingredients used in making,
mixing, or compounding sugar-sweetened beverages using one or more
other ingredients, including, but not limited to, water, ice, powder,
simple syrup, fruits, vegetables, fruit juice, vegetable juice,
carbonation, or other gas.
(u) "Water" includes nonflavored water, or water flavored with
noncaloric "natural fruit essence" or "natural flavor." The source of
the water may be artesian, mineral, spring, or well. The type of
water may also include carbonated, such as sparkling, club, or
seltzer, and still, distilled, or purified, such as demineralized,
deionized, or reverse osmosis.
(v) "Culturally and linguistically appropriate" means meeting the
requirements of paragraphs (1) and (2) of subdivision (c) of Section
2190.1 of the Business and Professions Code.
104895.51. (a) (1) The Healthy California Fund is hereby
established in the State Treasury with the purpose of diminishing the
human and economic costs of diabetes, obesity, heart disease, and
dental disease in California. The fund shall support culturally and
linguistically appropriate programs and interventions that use
educational, environmental, policy, and systems change, and other
public health approaches to improve access to, and consumption of,
healthy and affordable foods and beverages, reduce access to, and
consumption of, calorie-dense and nutrient-poor foods, encourage
physical activity and decrease sedentary behavior, improve oral
health literacy, raise awareness about the importance of nutrition
and physical activity in the prevention of obesity and diabetes, and
raise awareness of the impact of nutrition and oral health habits on
dental disease.
(2) The majority of expenditures shall be directed to support
comprehensive policy, systems, and environmental change approaches
that promote healthy eating, active living, and improved oral health,
including, but not limited to, those recommended by the Institute of
Medicine and the federal Centers of Disease Control and Prevention.
The fund shall consist of all fees, interest, penalties, and other
amounts collected pursuant to this chapter, less refunds and
reimbursement for expenses incurred in the administration and
collection of the fees.
(b) Fifty-one percent of the moneys in the fund shall be allocated
to the State Department of Public Health and distributed for the
following purposes:
(1) Twenty-seven percent to develop and administer a regular grant
program to all county and city health departments, or their
nonprofit designee, seeking to invest in obesity, diabetes, and
dental disease prevention activities. Funds shall be distributed in a
reasonable proportion for prevention activities across the three
chronic diseases and pursuant to the Target Population Funding
Criteria under Section 104895.52.
(2) Twenty-eight percent to develop and administer a competitive
grant program for nonprofit and community based organizations seeking
to invest in obesity, diabetes, and dental disease prevention
activities. At least 15 percent and up to 20 percent of these funds
shall be used to support nonprofit organizations working statewide,
including those that provide capacity building and technical
assistance services. At least 8 percent of these funds shall be used
for statewide priority population leadership networks, including
African American, Hispanic, American Indian and Alaska Native, Asian
American, Native Hawaiian and Pacific Islander and low socioeconomic
status populations. Grants to community-based organizations shall be
distributed in a reasonable proportion for prevention activities
across the three chronic diseases and shall meet the Target
Population Funding Criteria pursuant to Section 104895.52.
(3) Twenty-eight percent to develop and administer a competitive
grant program for clinics licensed under subdivision (a) of Section
1204 to invest in a comprehensive approach to obesity, diabetes, and
dental disease prevention and treatment activities. In addition to
direct services, funding shall support programs that use culturally
and linguistically appropriate educational and other public health
approaches that raise awareness about the importance of nutrition and
physical activity in the prevention of childhood obesity, diabetes,
and dental disease. Funds shall be distributed in a reasonable
proportion for prevention activities across the three chronic
diseases and pursuant to the target population funding criteria
specified in Section 10895.52.
(4) Seven percent to the department or its nonprofit partners for
statewide advertising and media campaigns, including social media
initiatives, to change social and cultural norms around risk factors
for chronic diseases, including diet and physical activity, and
dental disease prevention. The statewide advertising and media
campaigns shall be guided by a subcommittee of the Oversight
Committee pursuant to Section 104895.53 and ensure that advertising
and media campaigns are tailored for the populations most affected,
as listed in subdivision (a) of Section 104895.52.
(5) Ten percent to the department, of which no more than 3 percent
may be used for administration of the Fund to include technical
assistance to potential grantees and its prevention activities; a
minimum of 3 percent for independent evaluation; 1 percent subgranted
to California-based public universities or nonprofits to strengthen
chronic disease surveillance, including measures to track economic,
racial, and ethnic disparities and health inequities; and 3 percent
to the department's Oral Health Program to support statewide
coordination and delivery of preventive dental health programs and to
ensure that funding is directed to programs in accordance with the
implementation of the Oral Health Program.
(c) Four percent to the Expanded Access to Primary Care, Rural
Health Services Development, Health of Seasonal Agricultural
Migratory Workers, and Indian Health programs in the State Department
of Health Care Services. Funds shall be used to support culturally
and linguistically appropriate clinic-based obesity and diabetes
prevention and related disease management pursuant to subdivision (v)
of Section 104895.50 with no more than 3 percent going towards
department administrative costs.
(d) Twenty-five percent to the Department of Education and
distributed for the following purposes and pursuant to the Target
Population Funding Criteria, under Section 104895.52, with no more
than three percent to be used for department administrative costs:
(1) Twenty-eight percent to administer a competitive grant program
for school districts for educational, environmental, policy, and
other public health approaches that promote physical activity. The
approaches funded pursuant to this paragraph may include improving or
constructing school recreational facilities that are used for recess
and physical education, joint-use activities during after hours,
providing continuing education training for physical education
teachers, hiring qualified physical education teachers, and
implementing Safe Routes to School programs.
(2) Thirty-one percent to administer a competitive grant program
for school districts for educational, environmental, policy, and
other public health approaches that promote improved nutrition and
access to healthy foods and beverages. The approaches funded pursuant
to this paragraph may include improving the quality and nutrition of
school breakfasts, lunches, and snacks, increasing access to federal
meal programs for underserved populations, and incorporating
practical nutrition education into the curriculum.
(3) Fourteen percent to the California Farm to School Program
administered by the department.
(4) Twenty-four percent to administer a competitive grant program
for school districts for ensuring access to clean drinking water
throughout the schoolday, including, but not limited to, drinking
fountains and water bottle refilling stations.
(e) Twenty percent to the Department of Food and Agriculture, to
be distributed equally for the following purposes, with no more than
3 percent going towards department administrative costs:
(1) To the Office of Farm to Fork, including, but not limited to,
consumer incentive programs, pursuant to Section 49001 of the Food
and Agricultural Code.
(2) To the Office of Farm to Fork, Chapter 12 (commencing with
Section 49001) of Division 17 of the Food and Agricultural Code, to
administer a competitive grant program to aide community food
producers, as defined under Section 113752, or socially
disadvantaged, beginning, military veteran, or limited resource
specialty crop producers that improve the health and resilience of
their communities by increasing access to any variety of fresh,
canned, dried, or frozen whole or cut fruits and vegetables without
added sugars, fats or oils, and salt.
104895.52. (a) The target populations described in paragraphs (1)
to (5), inclusive, at a minimum, shall be the focus of the campaign
implemented pursuant to this chapter, and all moneys in the fund,
including those designated for statewide activities, shall be
allocated with no less than 60 percent priority given to communities
located in zip codes with the highest 30 percentile of type II
diabetes, as reported by the California Health Interview Survey
(CHIS) conducted by the University of California, Los Angeles Center
for Health Policy Research. Departments shall use the most current
survey data available in identifying the following populations:
(1) African American, Hispanic, American Indian and Alaska Native,
Asian American, Native Hawaiian, and Pacific Islander.
(2) Low socioeconomic status populations.
(3) Zip codes with the top 30th percentile of rates of type II
diabetes.
(4) Communities identified as dentally underserved or with high
rates of dental disease.
(5) At-risk populations, as determined by the California Health
Interview Survey (CHIS) and other data sources.
(b) Pursuant to this chapter, the State Department of Public
Health and the State Department of Education shall use the most
current survey data
available to target all moneys in the fund to address the needs of
the identified target populations using the following criteria and
methodologies:
(1) For funding to the California Department of Public Health:
(A) (i) Pursuant to the county and local government funding
criteria, funding shall be focused and primarily expended on programs
and activities with a priority and focus on directly serving
communities identified in paragraph (1) of subdivision (a), and where
consumption of bottled sugar-sweetened beverages is the highest, in
neighborhoods with schools with a high concentration of students who
qualify for supplemental and concentration grants, pursuant to
Section 2574 of the Education Code, and in neighborhoods with a
demonstrated need for services, including a high concentration of
Medi-Cal eligible residents.
(ii) The department shall develop a funding formula to provide a
minimum base level to all county and city health departments with the
additional amount weighted to reflect the number of residents in
each jurisdiction living below 150 percent of the federal poverty
level. Funding shall be dependent on each local health department
submitting an approved implementation plan and maintaining a
community coalition to support the objectives of the funding. At
least one third of each jurisdiction's funds shall be subgranted to
community partners selected through a competitive process with a
priority and focus on directly serving communities and populations
described in paragraph (1) of subdivision (a).
(B) Grants for nonprofit and community-based organizations,
pursuant to paragraph (2) of subdivision (b) of Section 104895.51,
shall be reserved for providing activities in communities described
in paragraph (1) of subdivision (a) and assisting populations that
are no more than 150 percent above the poverty level. Priority shall
be given to culturally and linguistically appropriate activities,
pursuant to subdivision (v) of Section 104895.50. Those activities
shall directly serve communities with a demonstrated need for health
care services, including those with high levels of
limited-English-Proficient residents.
(2) Funding to the State Department of Education shall be focused
and primarily expended on campuses located in neighborhoods and
serving children, pursuant to paragraph (1) of subdivision (a), with
a high density of students who qualify for the National School Lunch
Program or the federal School Breakfast Program, more than 50 percent
of students who would qualify for supplemental or concentration
grants, pursuant to Section 2574 of the Education Code, and a
demonstrated need that may include showing that access to fresh
fruits and vegetables is limited in the neighborhood surrounding the
school.
104895.53. (a) Upon appropriation by the Legislature, all moneys
in the fund shall be expended only for the purposes expressed in this
chapter and shall be used only to supplement existing levels of
service. Moneys in the fund shall not supplant any federal, state, or
local funding for existing levels of service.
(b) The State Public Health Officer, the Secretary of the
Department of Food and Agriculture, the Director of Health Care
Services, and the Superintendent of Public Instruction may coordinate
to establish regulations and procedural measures necessary to
effectuate the purposes of this chapter. The regulations may provide
for specific programs to be funded consistent with the allocation of
funds as set forth in this chapter. In establishing these
regulations, the departments shall give particular consideration to
reducing the prevalence of diabetes, as identified by data from the
CHIS and other data sources.
(c) The California State Auditor's office shall conduct periodic
audits to ensure that the annual allocation to individual programs is
awarded by the fund in a timely fashion consistent with the
requirements of this chapter. The first audit shall be conducted no
later than 24 months after the effective date of this section.
104895.54. (a) The Healthy California Fund Oversight Committee is
hereby created in state government. The committee shall advise the
State Department of Public Health, the State Department of Health
Care Services, the Department of Food and Agriculture, and the State
Department of Education with respect to policy development,
integration, and evaluation of the state and local programs funded
under this chapter, and shall develop a master plan for the future
implementation of diabetes, obesity, and dental disease prevention
programs.
(b) The committee shall be composed of 13 members to be appointed
as follows, with specific consideration to address the needs of the
target populations described in Section 104895.52:
(1) Two members representing nonprofit public health organizations
dedicated to healthy eating, active living, and diabetes and obesity
prevention, appointed by the Speaker of the Assembly.
(2) One member representing an organization that represents the
health center community, appointed by the Senate Rules Committee.
(3) One member of a professional education association, such as an
association of teachers, appointed by the Senate Rules Committee.
(4) One representative of a professional dental organization, a
nonprofit dental health organization, or representing an organization
dedicated to dental disease prevention, appointed by Governor.
(5) One member of a university facility with expertise in programs
intended to promote healthy eating, active living, and diabetes and
obesity prevention, appointed by the Governor.
(6) Two representatives of a target population group, appointed by
the Governor.
(7) One representative of the State Department of Public Health,
appointed by the Governor.
(8) One representative of the State Department of Health Care
Services, appointed by the Governor.
(9) One representative of the Department of Food and Agriculture,
appointed by the Governor.
(10) One representative of the State Department of Education,
appointed by the Superintendent of Public Instruction.
(11) One representative of local health departments, appointed by
the Governor.
(c) Members shall serve for a term of three years, renewable at
the option of the appointing authority, with up to two consecutive
terms. The initial appointments of members shall be for two or three
years, to be drawn by random lot at the first meeting. The committee
shall be staffed by the coordinator of the State Department of Public
Health programs created pursuant to subdivision (b) of Section
104895.51.
(d) The committee shall meet as often as it deems necessary, but
not fewer than four times per year.
(e) The members of the committee shall serve without compensation,
but shall be reimbursed for necessary travel expenses incurred in
the performance of the duties of the committee.
(f) An equity subcommittee shall be established as part of the
Oversight Committee to ensure progress on advancing health equity.
104895.55. The committee shall be advisory to the State
Department of Public Health, the State Department of Health Care
Services, the Department of Food and Agriculture, and the State
Department of Education, for the following purposes:
(a) Evaluating programs and interventions funded under this
chapter as necessary in order to assess the overall effectiveness of
efforts made by the program to promote healthy eating and active
living and to prevent diabetes and obesity. In order to evaluate
programs, the committee shall seek the cooperation and assistance of
the State Department of Public Health, the State Department of Health
Care Services, the Department of Food and Agriculture, the State
Department of Education, the University of California, local health
departments, local education agencies, administrative
representatives, target populations, school officials,
nongovernmental organizations, and researchers. A principal
measurement of effectiveness shall be the reduction of diabetes and
obesity and the increased consumption of healthy foods and levels of
physical activity among a given target population.
(b) Facilitating programs directed at promoting healthy eating and
active living and preventing diabetes and obesity that are operated
jointly by more than one agency or entity. The committee shall
propose strategies for the coordination of proposed programs
administered by the State Department of Public Health, the State
Department of Health Care Services, the Department of Food and
Agriculture, and the State Department of Education, and local lead
agencies, in order to avoid the duplication of services and to
maximize the public benefit of the programs.
(c) Making recommendations to the Department of Public Health, the
Department of Health Care Services, the Department of Food and
Agriculture, and State Department of Education regarding the most
appropriate selection criteria for, and standards of, the operation
and the types of programs to be funded under this chapter.
(d) (1) Notwithstanding Section 10231.5 of the Government Code,
reporting to the Legislature on or before January 1 of each year on
the number and scope of programs funded by the Healthy California
Fund created by Section 104895.51, the amount of money in the fund,
any moneys previously appropriated to the State Department of Public
Health, the State Department of Health Care Services, the Department
of Food and Agriculture, and the State Department of Education, but
unspent by the departments, a description and assessment of all
programs funded under this chapter, and recommendations for any
necessary policy changes or improvements for program interventions
and strategies.
(2) A report submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
(e) Ensuring that the most current research findings regarding
diabetes and obesity prevention are applied in designing the programs
administered by the State Department of Public Health, the State
Department of Health Care Services, the Department of Food and
Agriculture, and the State Department of Education. The departments
shall apply the most current findings and recommendations of research
and best practice.
(f) Based on the results of programs supported by this chapter and
any other proven methodologies available to the committee, producing
a comprehensive master plan for implementing diabetes and obesity
prevention programs throughout the state to increase healthy eating
and active living, reduce food insecurity, and promote sustainable,
healthy, resilient communities. The master plan shall include
longitudinal data on obesity prevalence and incidence rates, data on
diabetes prevalence and incidence rates, and longitudinal information
on sweetened beverage consumption rates across the state population.
The master plan shall also include implementation strategies for
programs to address the needs of underserved and at-risk target
populations throughout this state. The Healthy California Fund
Oversight Committee shall submit the master plan to the Legislature
biennially, in compliance with Section 9795 of the Government Code.
The master plan and its revisions shall include recommendations for
administrative arrangements, funding priorities and integration and
coordination of approaches by the Department of Public Health, the
Department of Health Care Services, the Department of Food and
Agriculture, and State Department of Education and their support
systems, local lead agencies, and nongovernmental organizations, as
well as progress reports relating to the needs of specific target
populations.
104895.56. (a) A health impact fee is hereby imposed on every
distributor for the privilege of distributing bottled sweetened
beverages and concentrate in the state, for deposit into the fund.
The fees shall be calculated as follows:
(1) The fee on bottled sweetened beverages distributed in this
state shall be two cents ($0.02) per fluid ounce.
(2) The fee on concentrates distributed in the state either as
concentrate or as a sweetened beverage derived from that concentrate
shall be equal to two cents ($0.02) per fluid ounce of sweetened
beverage produced from that concentrate. For purposes of calculating
the fee for concentrate, the volume of sweetened beverage to be
produced from concentrate shall be the largest volume resulting from
use of the concentrate according to any manufacturer's instructions.
(b) In each transaction described in subdivision (a), the
distributor shall include the following information on each receipt,
invoice, or other form of accounting for the distribution of bottled
sweetened beverages or concentrate:
(1) The name and address of the distributor.
(2) The name and address of the purchaser.
(3) The date of sale and invoice number.
(4) The kind, quantity, size, and capacity of packages of bottled
sweetened beverages, sweetened beverages, or concentrate sold.
(5) The amount of fees due from the distributor on the sale of the
bottled sweetened beverages, sweetened beverages, or concentrate.
(6) Any other information, as required by the board.
(c) The program shall develop reimbursement criteria to enable
participating departments to recover administrative costs associated
with collecting the charge.
(d) This section shall not preempt a city or county from enacting
or enforcing an ordinance related to taxation of sugar-sweetened
beverages if the ordinance is more stringent than this section.
104895.57. (a) (1) No later than July 1, 2017, and annually
thereafter, the State Department of Public Health, the State
Department of Health Care Services, the Department of Food and
Agriculture, and the State Department of Education shall commence
preparation of a program budget for the following calendar year. The
budgets shall include all of the following information:
(A) Anticipated revenues and costs of implementing the program,
including related programs, projects, contracts, and administrative
expenses.
(B) A recommended funding level sufficient to cover the program's
budgeted costs and to operate the program over a multiyear period in
a prudent and responsible manner.
(C) The amount of the health impact fees, as described in Section
104895.56, and itemization of costs that the fees cover.
(2) The State Department of Public Health, the State Department of
Health Care Services, the Department of Food and Agriculture, and
the State Department of Education shall solicit feedback on their
proposed budgets from the Healthy California Fund Oversight Committee
before adopting a final budget.
(3) The departments shall adopt final program budgets for purposes
of this chapter by October 1 of each year.
(b) The fund shall reimburse the State Department of Public
Health, the State Department of Health Care Services, the Department
of Food and Agriculture, and the State Department of Education for
administration and implementation costs the departments incur
pursuant to this chapter, as provided in subdivision (c). The
reimbursement shall not exceed the departments' direct costs to
implement and enforce this chapter.
(c) The State Department of Public Health, the State Department of
Health Care Services, the Department of Food and Agriculture, and
the State Department of Education shall deposit all moneys submitted
for reimbursement costs by the program into the Healthy California
Fund Administration Account, which is hereby established within the
fund. Upon appropriation by the Legislature, moneys in the account
shall be expended by the departments to administer and enforce this
chapter and to repay any outstanding loans made from other funds used
to finance startup costs of the department's activities pursuant to
this chapter.
104895.58. (a) The board shall administer and collect the charges
imposed by this chapter pursuant to the Fee Collection Procedures
Law (Part 30 (commencing with Section 55001) of Division 2 of the
Revenue and Taxation Code). The board may use no more than 3 percent
of the revenues generated to cover its administrative costs in
collecting the fees imposed under this chapter.
(b) The board may prescribe, adopt, and enforce regulations
relating to the administration and enforcement of this chapter,
including, but not limited to, collections, reporting, refunds, and
appeals.
(c) The board may adopt regulations to implement this chapter. The
adoption, amendment, repeal, or readoption of a regulation
authorized by this section is deemed to address an emergency, for
purposes of Sections 11346.1 and 11349.6 of the Government Code, and
the board is hereby exempted for this purpose from the requirements
of subdivision (b) of Section 11346.1 of the Government Code.
104895.59. The fees imposed by this chapter are due and payable
to the board on or before the last day of the first month following
each calendar quarter.
104895.60. (a) On or before the last day of the first month
following each calendar quarter, a return for the preceding calendar
quarter shall be filed with the board using electronic media.
(b) The board may prescribe those forms and reporting requirements
as are necessary to implement the fees, including, but not limited
to, information regarding the total amount of bottled sweetened
beverages and concentrate sold and the amount due.
(c) Returns shall be authenticated in a form or pursuant to
methods prescribed by the board.
104895.61. A distributor required to pay the fees imposed under
this chapter shall register with the board. An application for
registration shall be made upon a form prescribed by the board and
shall set forth the name under which the applicant transacts or
intends to transact business, the location or locations of each place
of business, and any other information required by the board. An
application for an account under this section shall be authenticated
in a form, or pursuant to methods, prescribed by the board.
104895.62. The distribution of bottled sweetened beverages or
concentrate by a distributor to either of the following persons shall
be exempt from the fees imposed by this chapter:
(a) A person when, pursuant to the contract of sale, the bottled
sweetened beverages or concentrate shall be shipped, and are shipped,
to a point outside of this state by the distributor by means of
either of the following:
(1) Facilities operated by the distributor.
(2) Delivery by the distributor to a carrier, customs broker, or
forwarding agent, whether hired by the purchaser or not, for shipment
to the out-of-state point.
(b) A person who is otherwise exempt from the taxation of that
sale, use, or consumption under the Constitution of the United
States, federal law or regulation, or the California Constitution.
104895.63. A distributor who has paid a fee, either directly to
the state or to another distributor registered under this chapter and
makes a subsequent distribution of bottled sweetened beverages or
concentrate may claim a credit on the distributor's return for the
period in which the subsequent sale or distribution occurs.
SECTION 1. Section 104655 of the Health and
Safety Code is amended to read:
104655. Notwithstanding any other law, nothing shall operate to
prohibit contributions to the program created pursuant to this
article by organizations and commissions subject to Division 22
(commencing with Section 63901) of the Food and Agricultural Code.
