Competitive Foods and Beverages Overview

This Management Bulletin (MB) provides an overview of the state and federal requirements and flexibilities that apply to competitive food sales for California schools participating in the National School Lunch Program (NSLP) and School Breakfast Program (SBP); the guidance reflects the recent USDA final rule (FR), Expanding Fluid Milk Options in Child Nutrition Programs, (91 FR 25073) effective June 8, 2026 and accessed at https://www.fns.usda.gov/cn/fr-050826.

This MB addresses:

Competitive Foods and Beverages in California: Includes definitions for, and background on competitive foods and beverages.

Summary of the Competitive Food Rules: Includes the who, what, where, when, and how of competitive food rules and how the rules apply to or affect local school wellness policies, fundraising, recordkeeping, monitoring and enforcement, marketing, and advertising.

Areas where California Competitive Food Rules are Stronger than the Federal Rules: Reviews areas where California state laws are more restrictive and supersede the federal competitive food and beverage rules.

Competitive Foods and Beverages in California

A competitive food or beverage is one that is (1) sold, (2) to a student, (3) on school campus, (4) during the school day, and (5) outside of the federal reimbursable meal program.

Any food or beverage that meets these five criteria must adhere to specific rules, including nutrition standards, for compliance. These rules are found within both California state laws and regulations and federal laws and regulations. State requirements related to competitive foods can be found in the California’s EC, CCR, and HSC. Federal requirements are noted in the CFR. In this MB, the term competitive foods refer to both competitive foods and competitive beverages. The federal competitive food rules are collectively referred to as Smart Snacks in School (SSIS).

Federal SSIS rules allow states to adopt stricter competitive foods rules that take precedence over federal rules, provided these rules are consistent with the federal rules (7 CFR Section 210.11[b][1]). Local educational agencies (LEAs) are encouraged to review the laws, regulations, and accompanying policies to ensure compliance.

Summary of the Competitive Food Rules

How, where, and when do the competitive food rules apply?

All five criteria must be met for the competitive food rules to apply. If only one is not met, it is not a competitive food sale and the competitive food rules do not apply. A competitive food is a food or beverage that is: (1) sold, (2) to a student, (3) on the school campus, (4) during the school day, and (5) outside of the federal reimbursable meal program (7 CFR Section 210.11[a][2]; EC Section 49430[c]; 5 CCR Section 15575[a]–effective April 1, 2025).

Sold means the exchange of a food or beverage for money, coupons, vouchers, or order forms when any part of the exchange occurs on school campus. (EC Section 49430[n]) The term sold is met when 1) there is a direct exchange of money for food, or 2) money is exchanged for a coupon, voucher, order form and then the coupon, voucher, or order form is then exchanged for food. The exchanges explained above must include the student and occur on school campus, during the school day, and outside of the school meal program. Additional information on the definition of sold as well as examples of what does or does not constitute a sale are available in MB SNP-12-2026 Competitive Food and Beverages Definition of Sold, accessed at https://www.cde.ca.gov/ls/nu/sn/mbsnp282014.asp.

School campus means all areas of the property under the jurisdiction of the school that are accessible by students during the school day (7 CFR Section 210.11[a][4]; EC Section 49430[k]).

School day means the period from midnight before to 30 minutes after the end of the official school day (7 CFR Section 210.11[a][5]; EC Section 49430[l]).

Foods served as part of the SBP or NSLP are not subject to the competitive food rules.

The state and federal competitive food rules do not apply to food given away (for example: celebrations, birthday parties, etc.); however, HSC requirements do apply. Additionally, there may be food or beverage sales that are in competition with the federal reimbursable meal program but are still allowable. Meeting the standards of competitive foods means that the foods or beverages must meet specific criteria to be sold to students, on school campus, during the school day, and outside of the reimbursable meal program. Deeming a food or beverage competitive does not automatically disallow the sale of the item.

Per 7 CFR sections 210.11(b) and 220.12, LEAs may impose additional restrictions on the sale of, and income from, competitive foods, provided they are not less restrictive than federal and state requirements. LEAs should consult their local school wellness policy (LSWP) to determine if it contains stricter requirements than those found at the state or federal level.

Note that the Universal Meal Program (UMP) does not prohibit the sale of competitive foods.

To what types of schools do the competitive food rules apply?

Any LEA (public, charter, or private school) that participates in the SBP or NSLP must follow the federal SSIS rule (7 CFR Section 210.11), HSC Section 109025, and EC 49431.9. All public, noncharter schools must also follow the California state competitive food rules (EC sections 49430-49434; 5 CCR sections 15575-15578; and 5 CCR sections 15500-15501). Therefore:

• Private or charter schools that participate in the SBP and NSLP must follow the SSIS rules found in 7 CFR Section 210.11, HSC Section 109025, and EC Section 49431.9 but are not required to follow the additional California competitive food rules cited in the above paragraph.
  
  
• Public, noncharter schools that participate in the SBP and NSLP must follow both California state and federal competitive food rules as well as HSC Section 109025.

EC Section 49430 provides definitions for elementary school, middle school, and high school. According to the definitions, a “high school” or “middle school” may contain lower grades. For example: by definition a school with grades Kindergarten through grade 12 is a high school; a school with grades Kindergarten through grade eight is a middle school. When these instances occur, the California Department of Education (CDE) strongly encourages the LEA to apply the stricter rules to the lower grades – for example on a K-8 campus, apply the elementary school rules to the K-6 student and the middle school rules to the 7-8 students.

To whom do the competitive food rules apply?

Any entity, group, or individual that sells a food or beverage to a student on an elementary, middle, or high school campus, during the school day, and outside of the federal reimbursable meal program must comply with the competitive food rules.

Title 5 CCR sections 15500-15501 provides additional competitive food rules that apply only to foods and beverages sold by student organizations. A student organization is defined as a group of students who do not have an academic or curricular affiliation with a school or district. For example, an extracurricular club (e.g., Math Club, Spanish Club, etc.) is considered a student organization. Other groups that may include student involvement but have an academic or curricular affiliation—such as regional occupational programs, culinary institutes, home economics and/or food classes, leadership, language classes, and special day classes—are not considered student organizations.

A student organization selling foods or beverages to students must follow all competitive food rules including 5 CCR sections 15500–15501. According to 5 CCR sections 15500–15501, student organizations: (1) cannot prepare foods or beverages on school campus, (2) cannot sell the same items or categories that are sold by the food service program, (3) are restricted in the number of sales during the school day, and (4) are restricted in the types or categories of foods and beverages they can sell.

• An elementary school is limited to a maximum total of four student organization sales per school year, and only one student organization may sell in a school day.
  
  
• A middle or high school is limited to one student organization sale per school day with the exception of four days in the school year when there can be multiple student organizations selling competitive foods on the same day.

A nonstudent group (e.g., a Parent-Teacher Association) must follow all applicable HSC competitive food rules except 5 CCR sections 15500–15501.

Local School Wellness Policies

An LEAs LSWP must include language that addresses all foods and beverages available on school campuses (7 CFR sections 210.31[c][2] and [3]). At a minimum, the LSWP should include the applicable state and federal rules governing competitive foods, as well as broader requirements such as HSC Section 109025 that may also impact competitive food sales. The USDA allows an LEA to create stricter rules through their LSWP.

Fundraising

California laws and regulations require that all competitive foods and beverages meet applicable standards; therefore, any scenario that meets the definition of competitive foods (foods or beverages that are sold, to students, on school campus, during the school day, and outside of the reimbursable meal program) must comply with all applicable competitive food rules. This includes fundraisers. If fundraisers include students, occur on school campus, and during the school day, they must follow all applicable state and federal competitive food rules.

As additional background, USDA Food and Nutrition Services (FNS) Policy Memorandum SP 36-2014: Smart Snacks Nutrition Standards and Exempt Fundraisers (https://www.fns.usda.gov/smart-snacks-nutrition-standards-and-exempt-fundraisers) authorizes the CDE to establish the number of exempted fundraisers. California’s competitive food and beverage rules do not allow any food or beverage to be completely exempted from the competitive food rules. Therefore California has set the number of exempted fundraisers at zero.

Recordkeeping

Title 7 CFR Section 210.11(b)(2) states that the LEA is responsible for ensuring that each group or individual selling competitive foods maintains records that demonstrate compliance with competitive food and beverage requirements. This section states: “[a]t a minimum, records must include receipts, nutrition labels and/or product specifications for the competitive food available for sale to students.” Additional documentation, such as ingredient lists or nutrient analysis may be necessary to demonstrate compliance with the competitive food requirements.

The CDE, Nutrition Services Division (NSD) strongly recommends that LEAs:

• Create procedures for collecting and storing documentation from all entities selling competitive foods in an easily accessible area
  
  
• Identify a responsible party for each entity that sells competitive foods (e.g., the Parent group president, Associated Student Body adult advisor, etc.) to submit documentation to the LEA that demonstrates compliance (e.g., Nutrition Facts labels, ingredient lists, nutrient analysis, etc.).
  
  
• Establish a central location for all responsible entities to record all sales and store documentation

Monitoring and Enforcement

Title 7 CFR Section 210 and EC Section 49434 state that the NSD is required to monitor and enforce all state and federal competitive food rules during the Administrative Review. While there is no fiscal action taken for noncompliance, the NSD has authority to withhold School Nutrition Program reimbursements for repeated or egregious violations until the LEA corrects the identified issues.

Marketing and Advertising

Title 7 CFR Section 210.31(c)(3)(iii) and EC Section 49431.9 permit marketing on the school campus, during the school day of only those foods and beverages that meet the competitive foods and beverages nutrition standards. The USDA’s Final Rule: Local School Wellness Policy Implementation Under the Healthy, Hunger-Free Kids Act (HHFKA) of 2010 (https://www.fns.usda.gov/cn/fr-072916c) states:

“…marketing is defined as advertising and other promotions in schools. Food marketing commonly includes oral, written, or graphic statements made for the purpose of promoting the sale of a food or beverage product made by the producer, manufacturer, seller, or any other entity with a commercial interest in the product.”

Additionally, the marketing of products on the exterior of vending machines, through posters, menu boards, coolers, trash cans, and other food service equipment, as well as cups used for beverage dispensing are all subject to 7 CFR Section 210.31(c)(3)(iii). As the LEA and departments within the LEA review new contracts, and as durable equipment is replaced, decisions should reflect the applicable marketing standards.

Areas where California Competitive Food Rules are Stronger than the Federal Rules

Competitive Entrées

Federal SSIS Requirement: 7 CFR Section 210.11(c)(3)(i), a competitive entrée that is sold by food service the day of or day after it appears on the menu, is not subject to any nutrition standards.

California Competitive Food Requirement: EC Section 49431.2(b)(1)(A-C) requires a competitive entrée to meet the competitive food nutrition standards for calories, total fat, and trans fat.

Therefore, public, noncharter schools must ensure any competitive entrée, when sold as an individual item the day of or day after it appears on the menu, meets the competitive entrée nutrition standards for calories, total fat, and trans fat.

Competitive Entrée that Includes a Grain

Federal SSIS Requirement: per 7 CFR Section 210.11(a)(3)(i) and (iv), a food that contains a meat or meat alternate plus a grain, or a food that is a grain-only entrée served specifically in the SBP is considered a competitive entrée when sold individually. In addition, 7 CFR sections 210.10(c)(2)(iii)(A) and 220.8(c)(2)(iii)(A) require 80 percent of the grains served in the NSLP or SBP to be whole grain-rich (WGR), and the remaining 20 percent can be enriched grain. All other competitive grains sold individually that do not meet the above requirements must be WGR, including all grain snack foods and entrées sold by other groups.

California Competitive Food Requirement: 5 CCR, Section 15575(c)–the grain in a competitive entrée must be WGR. All other competitive grains must also be WGR.

Therefore, public, noncharter schools must ensure that any grain, whether alone or in combination with other foods, be WGR.

Flavored Milk

Federal SSIS Requirement: 7 CFR sections 210.11(l)(1)(ii), (2)(ii), and (3)(ii) allow flavored milk to be whole, reduced fat (two percent), low-fat (one percent) or nonfat.

California Competitive Food Requirement: EC sections 49431.5(a)(1)(D) and (a)(3)(D), and 5 CCR Section 15576(e)(4) require flavored milk sold as a competitive food to be nonfat.

Therefore, public, noncharter schools must ensure that flavored milk is nonfat when it is sold as a competitive food.

Unflavored Milk

Federal SSIS Requirement: 7 CFR sections 210.11(l)(1)(ii), (2)(ii), and (3)(ii) allow unflavored milk to be whole, reduced fat (two percent), low-fat (one percent), or nonfat.

California Competitive Food Requirement: EC sections 49431.5(a)(1)(D) and (a)(3)(D), and 5 CCR Section 15576(e)(4) require unflavored milk in California to be low-fat (one percent) or nonfat.

Caffeine

Federal SSIS Requirement: 7 CFR Section 210.11(j) allows caffeine-containing beverages to be sold in high schools.

California Competitive Food Requirement: EC sections 49431.5(a)(1)(E) and 49431.5(a)(3)(J) specify that caffeine, with the exception of trace amounts of naturally occurring caffeine substances, is not allowed in any beverages at any grade level.

Therefore, public, noncharter schools must ensure that there is no caffeine (except trace amounts) in beverages at any grade level.

Alternate Beverages

Federal SSIS Requirement: 7 CFR sections 210.11(l)(3)(v) and (vi) allows for high schools only any alternative beverage (i.e., besides water, milk, and juice) that meet the required calorie limits and serving size restrictions–this may include diet soda, coffee, and tea.

California Competitive Food Requirement: EC sections 49431.5(3)(E-H) only allows two types of alternative beverages and only in high schools: electrolyte replacement beverages/sports drinks and flavored waters. Electrolyte replacement beverages/sports drinks and flavored waters must meet specific criteria.

Therefore, public, noncharter schools must ensure that, in high schools only, any beverage besides water, milk, or juice, be an electrolyte replacement beverage/sports drink, or a flavored water and meet the specific criteria under one of these categories. Additional information regarding how to identify a beverage category is available in MB SNP 06-2025, Competitive Foods-Determining Compliant Beverages, accessed at https://www.cde.ca.gov/ls/nu/sn/mbsnp132026.asp.

Foods and Beverages Sold by a Student Organization

Federal SSIS Requirement: 7 CFR Section 210.11 does not include additional requirements for specific entities, groups, or individuals, including student organizations.

California Competitive Food Requirement: 5 CCR sections 15500-15501 requires a student organization, as defined, to follow additional rules when selling food or beverages.

Therefore, public, noncharter schools must ensure that foods and beverages sold by a student organization meet the competitive food nutrition standards and the additional requirements found in the CCR’s listed above.

Paired Exemptions

A paired exemption is a combination of at least two items and packaged together for sale as one unit, with each item being exempt from one or more of the nutrient standards.

Federal SSIS Requirement: 7 CFR Section 210.11(a)(6) states that items that meet the paired exemption definition are exempt from the total fat, saturated fat, and sugar standards and must meet the calorie and sodium standards.

California Competitive Food Requirement: CCR Section 15578(d) states that items that meet the paired exemption definition are exempt only from total fat and saturated fat standards and must meet the calories, sodium, sugar, and trans fat standards.

Therefore, public, noncharter schools must ensure that a paired food, as defined, meets the calorie, sodium, sugar, and trans fat standards.

Total Fat Exemption for Bean Dip/Hummus

Federal SSIS Requirement: 7 CFR Section 210.11(a)(7) allows bean dip (including hummus) as defined to be exempt from the total fat standard but it must meet all other nutrition standards.

California Competitive Food Requirement: EC or CCR does not include this exemption and so does not allow bean dip to be exempt from the total fat standard.

Therefore, public, noncharter schools must ensure that bean dip, as defined, meets all of the nutrition standards.

Calculating Percent of Calories from Trans Fat

The U.S. food supply no longer contains synthetic trans fat.

Federal Requirement: 7 CFR Section 210.11 deleted the requirement that foods must meet a trans fat limit.

California Requirement: EC sections 49431(a)(4); 49431.2(a)(4), (b)(1)(C), and (b)(2)(D); and 5 CCR Section 15577(g) still require that trans fat be analyzed when determining competitive food compliance.

Therefore, public, noncharter schools must ensure that foods are analyzed for the trans fat standard. This should have minimal impact. The analysis should show zero trans fat since it has been removed from the U.S. food supply, however, documentation is still required.

Sugar Limit for Nondairy Milk

Federal SSIS Requirement: 7 CFR Section 210.11 does not include a total sugar limit for nondairy milk.

California Competitive Food Requirement: 5 CCR sections 15576(f)(2) and (3) establish a total sugar limit for nondairy milk.

Therefore, public, noncharter schools must ensure that nondairy milk meets the standards for total sugar in nondairy milk.

Criteria for Juice

Federal SSIS Requirement: 7 CFR sections 210.11(l)(1)(iii), (2)(iii), and (3)(iii) require 100 percent juice, which is allowed to be diluted with water, with no dilution limit. This can allow a 100 percent juice by volume to be diluted down to a one percent juice by volume.

California Competitive Food Requirement: EC sections 49431.5(a)(1)(A) and 49431.5(a)(3)(A) require juice to be at least 50 percent juice by volume.

Therefore, public, noncharter schools must ensure that juice is at least 50 percent juice by volume.

Food Dyes and Additives

Federal SSIS Requirement: 7 CFR Section 210.11 does not address food dyes or food additives.

California Competitive Food Requirement: HSC Section 109025 requires that, beginning January 1, 2027, no food product for human consumption shall contain any of the following substances:

• Brominated vegetable oil
• Potassium bromate
• Propylparaben
• Red dye 3

Therefore, beginning January 1, 2027, no school, regardless of type, can sell or provide food products containing any of these substances.

EC sections 49431(a)(7); 49431.2(a)(7), (b)(1)(E), (b)(2)(G); and 49431.5(a)(1)(E)(ii), and (a)(3)(J)(ii) requires that, beginning December 31, 2027, no competitive food shall contain any of the following substances:

• Blue 1
• Blue 2
• Green 3
• Red 40
• Yellow 5
• Yellow 6

Therefore, beginning December 21, 2027, public noncharter schools must ensure that no food or beverage sold contains any of these substances.

Additional Resources

There are a number of state and federal resources available to support compliance with competitive food and beverage requirements. When reviewing federal materials, keep in mind that California state requirements will not be reflected; LEAs will need to ensure compliance with HSC, EC, and CCR, as applicable.

Contact Information

If you have any questions regarding this MB, contact the Competitive Foods and Beverages team by email at CompetitiveFoods@cde.ca.gov.