Question: Our current carbonated beverage contract is about to expire. I understand that there have been new regulations put into place regarding these types of contracts. What are the current regulations and what is the procedure?

Response: Education Code Sections 35181-35185, specifically 35182.5, describes what school boards can and cannot do with carbonated beverage contracts.  Based on this section, governing boards may not enter into a contract that grants exclusive advertising or grants the right to the exclusive sale of carbonated beverages throughout the district to a person, business or corporation unless the governing board of the school district has adopted a policy.  Before the policy can be adopted, a public hearing must be held to ensure that the district has internal controls in place to protect the integrity of the public funds.  The public hearing must also address that the funds be raised from carbonated beverage contracts benefit public education and that the contracts are entered into on a competitive basis pursuant to procedures contained in Section 20111 of the Public Contract Code or through the issuance of a request for proposal.

Other available resources are:

CDE Management Bulletin 04-105, titled, "School District Governing Board Requirements for Entering into Contract for Carbonated Beverages, non-nutritious beverages or non-nutritious Foods" (http://www.cde.ca.gov/ls/nu/sn/mb04105.asp)

CDE Management Bulletin 05-110 titled, "Federal Policy and Requirements Related to Foods of Minimal Nutritional Value" ((http://www.cde.ca.gov/ls/nu/sn/mb05110.asp)

CDE Management Bulletin 05-109 titled, "Requirements for Beverage Sales Exclusive of the School Nutrition Programs" (http://www.cde.ca.gov/ls/nu/sn/mb05109.asp)

9/30/02