California pols pass statewide menu-labeling requirements

Nation's Restaurant News,  Sept 24, 2007  by Lisa Jennings

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SACRAMENTO, CALIF. -- California this month was poised to become the first state to require restaurants to list dietary data on their menus, but its Legislature simultaneously refused to ban trans fats from eateries in the closing hours of its regular session.

Meanwhile, as the historic menu-labeling legislation was sent to Gov. Arnold Schwarzenegger along with hundreds of other 11th-hour measures, lawmakers in Los Angeles were weighing a proposed obesity-based ban on more fast-food openings in large parts of the city.

The legislative activity aimed at curbing the growing problem of obesity had foodservice operators in trend-setting California biting their nails as public debate over the government's role in diet and health raged on nationwide.

At presstime, the legislation requiring chains with 15 or more units in California to list a range of dietary information on their menus had not been acted upon by the governor, who is a former upscale-restaurant proprietor and investor in the Planet Hollywood chain. Schwarzenegger faced a deadline of Oct. 12 to sign or veto the measure, though a decision to do neither would result in the bill becoming law.

Barring a veto, the restaurants next July 1 would have to make on-menu disclosures of calories, grams of saturated fat, grams of trans fats, milligrams of sodium and grams of carbohydrates for each regularly offered food item. Restaurants that use menu boards would only be required to display calorie counts but would have to make the other information available in printed form at the point of purchase.

Similar bills are pending in at least five other states, according to the National Restaurant Association.

In Los Angeles, the city planning commission was scheduled to begin discussions last week on a proposal by City Council member Jan Perry to enact a two-year moratorium on the development of quick-service restaurants in South Los Angeles neighborhoods that are known to have high rates of obesity among their 700,000 residents.

Nicknamed "health zoning," the moratorium would restrict new quick-service eateries from opening while the City Council considered incentives to attract more full-service restaurants and grocery stores into the largely African-American and Hispanic areas.

One victory for opponents of "nanny state" regulation was the death--at least for now--of a state Assembly bill that sought to require foodservice establishments to phase out trans fats from their kitchens. AB 97 failed on an 18-22 vote in the state Senate after previously passing the Assembly on a 42-31 vote in June. Sponsors pledged to resurrect the initiative in the next regular legislative session, beginning in January.

Restaurant operators also are keeping a close watch on ongoing efforts to provide health insurance for all California residents during a special add-on session of the Legislature called by Schwarzenegger this month. He ordered the session in order to reach a compromise on so-called universal coverage, after he vowed to veto a newly passed bill that would impose a 7.5percent payroll tax on employers who don't provide health insurance.

Schwarzenegger earlier had proposed funding universal health insurance through a 4-percent payroll fee on companies that don't provide coverage, and through contributions from individuals, doctors, hospitals, insurers and state and local governments. This month he said his goal for the special session was a plan that could be placed on the Feb. 5 ballot for voter ratification.

An alternative funding method backed by the California Restaurant Association is a proposed 1-cent supplemental sales tax, which the CRA calls the most equitable way to pay for the health care reform.

The menu-labeling bill, however, would have the more immediate impact on restaurant chains operating in California.

Even before the governor made clear his intentions on signing or vetoing the measure, officials of the state restaurant association said they were weighing a legal challenge.

Restaurants with menu boards would be required to post calorie information in a "clear and conspicuous" typeface and have the other information on fat, trans fat, carbohydrates and sodium available in writing at the point of sale.

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Full-service restaurants that would be required to list all the data on menus would also have to include the phrase, "Recommended limits for a 2,000-calorie daily diet are 20 grams of saturated fat and 2,300 milligrams of sodium." Restaurants may add a disclaimer noting that variations in the nutrition data may occur depending on special orders, serving sizes and other factors.

Excluded from the disclosure rule were limited-time specials, alcoholic beverages, condiments, and certain foodservice facilities, such as restricted hospital dining rooms, schools and grocery stores. Violations would be punishable by fines of $50 to $500, depending on the local enforcement agency.