BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 199|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                    THIRD READING


          Bill No:  AB 199
          Author:   Holden (D)
          Amended:  7/8/13 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE  :  7-0, 8/20/13
          AYES:  Wright, Cannella, De León, Galgiani, Hernandez, Lieu,  
            Padilla
          NO VOTE RECORDED:  Berryhill, Calderon, Correa, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/30/13
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           ASSEMBLY FLOOR  :  77-0, 5/29/13 - See last page for vote


           SUBJECT  :    Institutional purchasers:  sale of California  
          produce

           SOURCE  :     Author


           DIGEST  :    This bill encourages all public universities, public  
          schools, and school districts in California to purchase  
          agricultural products grown in California to the greatest 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; and removes "grown in California" from the  
          list of items required to be given preference by state  
          authorized buyers of supplies.
                                                                CONTINUED





                                                                     AB 199
                                                                     Page  
          2


           ANALYSIS  :    

          Existing law:

          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. 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.

          This bill:

          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. 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 in California" from the list of items required  
             to be given preference by state authorized buyers of  
             supplies.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                                                                CONTINUED





                                                                     AB 199
                                                                     Page  
          3


           This bill will result in approximately $100,000 (General Fund  
            and special fund) in costs to the Department of General  
            Services (DGS) to promulgate rules.  

           DGS will also incur increased administration costs (General  
            Fund and special funds).  The amount of the increase is  
            unknown, but is likely to be in the range of hundreds of  
            thousands to low millions of dollars annually for bid  
            evaluation, protests, and compliance monitoring.

           SUPPORT  :   (Verified  8/30/13)

          California Apple Commission
          California Association for Recreational Fishing
          California Association of Wheat Growers
          California Bean Shippers Association
          California Black Chamber of Commerce
          California Cotton Ginners Association
          California Cotton Growers Association
          California Dairies, Inc.
          California Farm Bureau Federation
          California Grain & Feed Association
          California Grape & Tree Fruit League
          California Pear Growers Association
          California Seed Association
          California State Floral Association
          California Warehouse Association
          Citrus Mutual
          Mt. Lassen Trout Farm, Inc.
          Pacific Egg and Poultry Association
          Western Agricultural Processors Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          agriculture is a key California industry that employs more than  
          330,000 workers and generated $47.4 billion in annual output in  
          2011.  This bill gives California businesses that produce  
          agricultural products an advantage over out-of state producers  
          even if the California products cost the same or less than the  
          out-of-state producer.  According to the author's office, this  
          preference 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.

                                                                CONTINUED





                                                                     AB 199
                                                                     Page  
          4


          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.


           ASSEMBLY FLOOR  :  77-0, 5/29/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  
            V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Holden, Linder, Vacancy


          MW:d  8/30/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****
          















                                                                CONTINUED