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F I S C A L I M P A C T R E P O R T

SPONSOR Altamirano

DATE TYPED 3/18/05 HB

SHORT TITLE Nutrition Council Act

SB 525/aSFC/aSFl#l/aHBIC

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

None

$0.1

REVENUE

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

Subsequent Years Impact

$0.1

Recurring

Nutrition

Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Commission on Higher Education (CHE)

Office of the Attorney General (AGO)

Department of Health (DOH)

SUMMARY

Synopsis of HBIC Amendment

The House Business and Industry Committee amendment adds one member of the food and bev-

erage industry to the Nutrition Council; removes specific references relating to the advisement

by the Nutrition Council on the effects of carcinogens, neurotoxins and monosodium glutamate;

and clarifies the duties of the Nutrition Council relating to the labeling and reporting of harmful

compounds.

Senate Bill 525/aSFC/aSFl#1/aHBIC-- Page 2

Synopsis of SFl #l Amendment

The Senate Floor #1 amendment number one requires the Nutrition Council to consider geo-

graphical representation from rural and urban areas in its membership.

Synopsis of SFC Amendment

The Senate Finance Committee amendment allows for the advisement of public school districts

on the development of grade-specific nutrition and health courses but does not make it manda-

tory. The amendment allows for recommendations in continuing education requirements in nutri-

tion and health for certain health care professionals but does not make it mandatory. The Nutri-

tion Council may develop a questionnaire to be sent to selected students in New Mexico as op-

posed to every student. Language is removed requiring the Secretary of Education to adopt

minimum standards and benchmarks for grade-specific nutrition and health courses for gradua-

tion in the public schools. The UNM School of Medicine in consultation with the Nutrition

Council will be requested to conduct a study on the precise medical effects of food additives,

particularly carcinogens and excitotoxins on pregnant women, fetuses and children under the age

of five, in addition to the effects of pesticides, herbicides and insecticides. The amendment re-

moves the appropriation from the bill.

Significant Issues

The Nutrition Fund will be created in the state treasury and consist of gifts, grants, donations and

bequests. Money in the Fund is appropriated to UNM School of Medicine for nutrition and

health-related research and education. The appropriation to the Nutrition Fund is removed under

the SFC amendment.

Synopsis of Original Bill

Senate Bill 525 creates a Nutrition Council and a Nutrition Fund and appropriates $250 thousand

from the general fund to the Nutrition Council for staff, equipment and expenses in FY06; $300

thousand to the PED for school district nutritionists for FY06 and FY07; and $200 thousand to

UNM for nutrition studies in FY06 through FY08. The Nutrition Council would be administra-

tively attached to the DOH. Any unexpended or unencumbered funds would revert to the Nutri-

tion Fund at the end of FY08.

Significant Issues

The duties of the Nutrition Council are:

•

Study ways to improve nutrition programs in state government

•

Recommend nutrition training programs for state employees

•

Develop public nutrition education programs

•

Develop and implement food safety programs

•

Advise agencies on food additives, diabetes, obesity, and food induced behavior disorders

•

Recommend ways to improve nutrition

•

Advise PED on the development of school nutrition courses

•

Review quality of school lunch programs

Senate Bill 525/aSFC/aSFl#1/aHBIC-- Page 3

•

Develop a statewide nutrition database of New Mexico students

•

Recommend additional food products labeling

•

Establishes a “nutrition fund” for nutrition related research

•

Licensing boards to impose mandatory nutrition education on professional licensees

•

UNM School of Medicine to conduct a study on food additives and pesticides.

PERFORMANCE IMPLICATIONS

PED will be required to impose minimum standards for grade-specific nutrition and health

courses, require nutrition and health as a graduation requirement and raise the minimum units

necessary for high school graduation from 23 to 24 units. The PED anticipates an impact to the

amount of time the PED staff spends on technical assistance, leadership and support for nutrition

and health education.

Establishes mandatory nutrition education for certified nurse practitioners, clinical nurse special-

ists, dentists, physicians, physician assistants and psychologists.

Licensing boards will have to adopt rules mandating nutrition education requirements.

FISCAL IMPLICATIONS

The Executive Budget Recommendation includes $750 thousand in the PED Budget Recom-

mendation for the DOH to implement obesity/nutrition programs to public school children.

The appropriation of $750 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

nutrition fund.

SB 525 creates a new fund and provides for continuing appropriations. The LFC objects to in-

cluding continuing appropriation language in the statutory provisions for newly created funds.

Earmarking reduces the ability of the legislature to establish spending priorities.

DOH reports excess weight and obesity are major risk factors for a number of chronic diseases,

including heart disease, stroke, cancer, and diabetes.

The economic burden of these chronic dis-

eases is devastating to our state’s economy, representing a high percentage of Medicaid dollars

spent for health care services. Data on the direct medical costs attributable to obesity recently

calculated and published show an estimated $324 million of all adult medical expenditures are

attributable to obesity in New Mexico; of these $51 million is spent within the Medicare popula-

tion, and $84 million is spent within the Medicaid population.

Members of the Nutrition Council who are not paid by taxpayer funds may receive per diem and

mileage expenses pursuant to the per diem and mileage Act, but shall receive no other compensa-

tion or allowance. The Nutrition Council shall meet at the call of the chair, director or majority

of the members.

ADMINISTRATIVE IMPLICATIONS

The Nutrition Council with consist of the Assistant Attorney General, The Secretary of Public

Senate Bill 525/aSFC/aSFl#1/aHBIC-- Page 4

Education, The Secretary of Health, and professional and private citizen appointments by the

Governor.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to SB 10, study school nutrition programs; restrict junk food sales; develop physical ac-

tivity curriculum; improve eating habits of youth.

SJM 2, increase physical activity and improve eating habits of youth.

HB 61, develops rules regarding foods and beverages sold in public schools.

TECHNICAL ISSUES

Recommendation for an Amendment on page 16, line 13 to replace “nutrition fund” with “gen-

eral fund”.

The proposed Nutrition Council does not include a Food Service Director or Native American as

a member.

The DOH suggests directing a portion of funding to PED for the collection of data for study pur-

poses, and requires a sampling rather than a survey of the 300 thousand students.

OTHER SUBSTANTIVE ISSUES

DOH reports obesity rates have doubled in children and tripled in adolescents over the last two

decades. Overweight youth have a 70% to 80% chance of remaining overweight or becoming

obese as adults. Only 2% of children eat a healthy diet (i.e. a diet consistent with federal nutri-

tion recommendations) and 35% are physically inactive. Three out of four American high school

students do not eat the recommended 5 servings of fruit and vegetables each day.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

PED has existing content standards with benchmarks for health education, and integrates health

topics into other subject areas.

AHO/lg:yr:rs