BILL ANALYSIS Ó
AB 199
Page 1
Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
AB 199 (Holden) - As Introduced: January 29, 2013
ADMINISTRATIVE REVIEW 12-1
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|Ayes:|Frazier, Achadjian, | | |
| |Buchanan, Ian Calderon, | | |
| |Cooley, Gorell, Hagman, | | |
| |Holden, Medina, Olsen, | | |
| |Quirk-Silva, Salas | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Allen | | |
| | | | |
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SUBJECT : Institutional purchasers: sale of California produce.
SUMMARY : This bill requires all California state-owned or
state-run institutions, except schools or school districts, to
purchase California agricultural products before out-of-state
agricultural products. This bill requires California public
schools and school districts to purchase California agricultural
products before out-of-state agricultural products, if the
California products are equal or less then the lowest bid or
price. Specifically, this bill :
1)Names this Act The Choose California Act.
2)Requires California state-owned or state-run institutions,
except schools or school districts, to give purchasing
preference to California agricultural products, if the
following criteria are met:
a) The bid or price of the California product is not more
than five percent of the lowest bid or price quoted for
products outside of the state.
b) If there is no California grown agricultural product
that meets the five percent difference in cost, the bid
shall go to a California company that packs or processes
its products in the state, as long as the price is not more
AB 199
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than five percent of the lowest bid or price quoted for
products outside of the state.
3)Requires California public schools and school districts to
purchase California agricultural products before out-of-state
agricultural products, if the California products are not more
than the lowest bid or price.
4)Removes "grown" from the list of items required to be given
preference by state authorized buyers of supplies.
EXISTING LAW:
1)Existing law also establishes the "Buy California Program"
within CDFA to encourage consumer nutritional and food
awareness and to foster purchases of high-quality California
agricultural products.
2)Requires persons authorized to purchase supplies for
California state institutions to give preference to items
either wholly or partially grown, manufactured, or produced in
California.
3)Allows the Department of General Services to certify a small
business, as specified, and allows for small business bid
preference if the bid is not more than five percent of the
lowest bid.
FISCAL EFFECT : Unknown
COMMENTS : Agriculture is a key California industry that
employs more than 330,000 workers and generated $47.4 billion in
annual output in 2011. The bill gives California businesses
that produce agricultural products an advantage over out-of
state producers even if the California products are slightly
more expensive. According to the author, this pricing advantage
would likely mean an increase in the state's purchases of
California-grown and California-processed agricultural products.
Such an increase could positively impact the state's
agricultural economy.
Supporters state that with the current economic climate, it is
important to keep state tax dollars local. Supporters also state
that this preference will give local farmers a fair chance to
sell their products within the state, and give a boost to the
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California farming economy.
Previous legislative attempts to grant purchasing preference for
California grown agricultural commodities, or other California
produced products, have either been vetoed or held in the
Legislature. Reasons for the Governors' vetoes ranged from cost
to the general fund, cost to local governments, and concerns
that the legislation "could result in costly legal challenges,
retaliation by other states and nations, and bid protests from
those claiming the preference should be granted and those
objecting to it."
RELATED LEGISLATION : AB 1960 (Ma), of 2010, encouraged the
State of California and its agencies to purchase California
produced, or produced and processed, fruit, nuts and vegetables
if the price is equal to or less than, imported fruits, nuts and
vegetables. This bill was held in the Senate Rules committee.
AB 2994 (Frommer), of 2004, proposed requiring state agencies to
give preference to the purchase of lumber and certain solid wood
products harvested from forests in California when price,
fitness and quality are equal. This bill was vetoed by Governor
Schwarzenegger.
AB 801 (Salinas), of 2001, proposed requiring California
state-owned or state-run institutions to purchase agricultural
products grown in California before those that are grown outside
this state, provided the prices for California grown products do
not exceed the lowest price of products grown outside California
by more than five percent. It also included California public
schools, but only when price and quality were equal to products
grown outside California. This bill was vetoed by Governor
Davis.
SB 1893 (Perata), of 2000, proposed requiring state agencies and
school districts to purchase agricultural products produced in
California if the cost and quality are equal or superior to
those produced outside California. If California products were
not found to be equal, preference was to be given to products
produced in other states over foreign products, if the cost and
quality are equal. This bill was held on the Senate
Appropriations suspense file.
AB 214 (Wiggins), of 1999, proposed establishing preferences for
the purchase of U.S. and California manufactured materials, with
AB 199
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respect to public works contracts entered into by public
entities. The bill was vetoed by Governor Davis.
REGISTERED SUPPORT / OPPOSITION :
Support
California Apple Commission
California Association of Recreational Fishing
California Black Chamber of Commerce
California Cotton Ginners Association
California Cotton Growers Association
California Dairies, Inc.
California Farm Bureau Federation
Mt. Lassen Trout Farm, Inc.
Western Agricultural Processors Association
Opposition
None on file
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084