BILL ANALYSIS Ó
Bill No: AB
199
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
AB 199 Author: Holden
As Amended: July 8, 2013
Hearing Date: August 20, 2013
Consultant: Paul Donahue
SUBJECT
Institutional purchasers: sale of California agricultural
products
DESCRIPTION
1)Encourages all public universities, public schools, and
school districts in California to purchase agricultural
products grown in California to the greatest extent
possible.
2)To the extent possible, requires all California
state-owned or state-run institutions, except public
universities, public schools, or school districts, to
purchase agricultural products grown in California from a
California company before those that are grown outside
the state, provided:
a) The bid or price is equal to or less than the bid
or price for agricultural products produced outside
the state; and
b) The availability and delivery schedule of the
agricultural products is acceptable.
3)Removes "grown" from the list of items required to be
given preference by state authorized buyers of supplies.
EXISTING LAW
AB 199 (Holden) continued
Page 2
1)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.
2)Generally requires state and local governments to
contract only with companies that use American produced
or manufactured material regardless of the cost of
foreign products, with specified exceptions.
3)Establishes the "Buy California Program" within the
Department of Food and Agriculture to encourage consumer
nutritional and food awareness and to foster purchases of
high-quality California agricultural products.
BACKGROUND
According to the author, 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 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."
AB 199 (Holden) continued
Page 3
PRIOR/RELATED LEGISLATION
AB 1960 (Ma) 2009-2010 Session. Encouraged state 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. (Held in Senate
Rules Committee)
AB 2994 (Frommer) 2003-2004 Session. Would have required
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.
(Vetoed)
AB 801 (Salinas) 2001-2002 Session. Required 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. (Vetoed)
SB 1893 (Perata) 2000-2001 Session. Required 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. (Held
in Senate Appropriations)
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
AB 199 (Holden) continued
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OPPOSE:
None on File
FISCAL COMMITTEE: Senate Appropriations Committee
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