BILL NUMBER: AB 1097	CHAPTERED
	BILL TEXT

	CHAPTER  405
	FILED WITH SECRETARY OF STATE  OCTOBER 2, 2011
	APPROVED BY GOVERNOR  OCTOBER 2, 2011
	PASSED THE SENATE  AUGUST 31, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2011
	AMENDED IN SENATE  AUGUST 29, 2011
	AMENDED IN SENATE  AUGUST 17, 2011
	AMENDED IN SENATE  JUNE 13, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011
	AMENDED IN ASSEMBLY  APRIL 7, 2011

INTRODUCED BY   Assembly Member Skinner
   (Coauthors: Assembly Members Dickinson and Wieckowski)

                        FEBRUARY 18, 2011

   An act to add Section 14031.1 to the Government Code, relating to
transit.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1097, Skinner. Transit projects: domestic content.
   Existing law provides various sources of funding for transit
projects.
   This bill would specifically authorize the state or a local
agency, relative to the use of federal funds for transit purposes, to
provide a bidding preference to a bidder if the bidder exceeds Buy
America requirements applicable to federally funded transit projects,
as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) American manufacturing has been declining over the past
several years with jobs going overseas due to tax and other policies,
with predictable economic consequences. The federal "Buy America"
laws were passed as one means to address this concern.
   (b) Public transit agencies in the state and nation continue to
provide critical transportation services to citizens, and remain
critical components for state and national goals to alleviate highway
gridlock, air pollution, and greenhouse gas emissions.
   (c) Funding for public transit has continued to decline in
difficult economic times, and it remains difficult to keep public
transit systems in good repair, including maintaining and replacing
rail vehicles.
   (d) Federal "Buy America" laws applicable to rolling stock,
including rail vehicles, require that the cost of components and
subcomponents produced in the United States total at least 60 percent
of the cost of all components in the rolling stock, and that final
assembly of the rolling stock occur in the United States (49 U.S.C.
Sec. 5323(j)(2)(C)).
   (e) Federal "Buy America" regulations allow states to impose
contracting preference provisions based on more stringent domestic
content requirements than those set forth in the federal law, but the
Federal Transit Administration (FTA) will not participate in the
funding of state and local contracts with those preference provisions
if they are not explicitly set out under state law (49 C.F.R.
661.21). The State of California currently has no such preference
law.
   (f) It is in the best interest of the State of California, as well
as the manufacturers across the nation, to authorize state and local
agencies to give preferences to bidders on rolling stock contracts
that provide domestic content above the minimum requirements set
forth in federal "Buy America" laws. Each state and local agency
should have the discretion to apply those preferences.
  SEC. 2.  Section 14031.1 is added to the Government Code, to read:
   14031.1.  In accordance with federal regulation (49 C.F.R.
661.21), the state or a local agency, relative to the use of federal
funds for transit purposes, shall be authorized to provide a bidding
preference to a bidder if the bidder exceeds Buy America requirements
applicable to federally funded transit projects. The state and each
local agency shall have the discretion to apply those preferences.
The Department of General Services shall have the sole authority to
establish policies and procedures for use of this section by state
agencies, as defined in Section 11000.