BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 199|
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THIRD READING
Bill No: AB 199
Author: Holden (D), et al.
Amended: 9/5/13 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 creates the Choose California Act,
applicable only to institutional purchasers of agricultural
products; 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, and 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
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items required to be given preference by state authorized buyers
of supplies. Also specifies that the provisions of this bill
sunset on January 1, 2017.
Senate Floor Amendments of 9/5/13 create the Choose California
Act, narrow the scope and applicability of the choosing
California agricultural products provisions, add a sunset
clause, and add a coauthor.
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 creates the Choose California Act. Specifically, this
bill:
1. Requires all California state-owned or state-run
institutions, except public universities, public schools, and
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.
2. Applies only to a contract to purchase agricultural products
for a value that is less than the value of the threshold for
supplies and services for which California has obligated
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itself under specific procurements of the World Trade
Organization.
3. Encourages all public universities, public schools, and
school districts in California to purchase agricultural
products grown in California to the greatest extent possible.
4. Removes "grown in California" from the list of items required
to be given preference by state authorized buyers of
supplies.
5. Sunsets the bill's provisions on January 1, 2017.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
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 9/6/13)
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
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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.
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 9/6/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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