BILL ANALYSIS Ó
AB 199
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 199 (Holden)
As Amended September 5, 2013
Majority vote
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|ASSEMBLY: |77-0 |(May 29, 2013) |SENATE: |39-0 |(September 9, |
| | | | | |2013) |
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Original Committee Reference: A. & A.R.
SUMMARY : Requires specified government agencies, and encourages
public education entities to purchase agriculture products produced
in California if certain criteria are met.
The Senate amendments :
1)Define which groups must meet purchasing requirements.
2)Encourage other groups to buy California agricultural products.
3)Limit the amount towards purchases based on an agreement with the
World Trade Organization.
4)Set a sunset date of January 1, 2017.
5)Make other technical and non-substantive changes.
EXISTING LAW : Provides a purchasing preference to California
products over out-of-state products if other factors like price and
quality are the same. Government Code Section 4331 states that
"Price, fitness and quality being equal, any body, officer, or other
person charged with the purchase, or permitted or authorized to
purchase supplies for the use of the State, or of any of its
institutions or offices, or for the use of any county or city shall
always prefer supplies grown, manufactured, or produced in the
State, and shall next prefer supplies partially manufactured, grown,
or produced in the State."
FISCAL EFFECT : Unknown. The current version of this bill has not
yet been analyzed by a fiscal committee.
COMMENTS : Senate amendments require state-owned and state-run
institutions, except public universities, public schools, and school
AB 199
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districts, to purchase agricultural products grown in California
when 1) the bid price is equal to or less than the price of
agricultural products produced outside of the state, and 2) the
availability and delivery schedule of the agricultural products is
acceptable. Amendments also encourage all public universities,
public schools, and school districts to purchase agricultural
products grown in California to the greatest extent possible.
Amendments specify that the section requiring state-owned and
state-run institutions shall only apply 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 itself under the Agreement on Government Procurement of
the World Trade Organization (WTO). The threshold per contract
under the WTO agreement is currently $552,000, but it adjusts over
time based on international exchange rates.
Additionally, the amendments set a sunset date for the bill. Unless
a later statute is enacted, the bill will be repealed January 1,
2017.
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600
FN: 0002693