BILL ANALYSIS Ó
AB 429
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Rudy Salas, Chair
AB 429
(Dahle) - As Amended April 8, 2015
SUBJECT: Public contracts: preferences: forest products
SUMMARY: Directs state agencies to provide a preference when
acquiring or contracting for lumber or other solid wood
products. Specifically, this bill:
1)Requires price, fitness and quality to be equal among bidders
for the preference to apply.
2)Requires lumber or other solid wood products to be produced
consistent with the Z'berg-Nejedly Forest Practice Act of 1973
(Act) of the California Public Resources Code.
EXISTING LAW:
1)Declares in the Act that forest lands are among the most
valuable natural resources in the state.
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2)Recognizes that the state's forests currently are an annual
net sequester of five million metric tons of carbon dioxide.
3)Expresses legislative intent to achieve the goal of maximum
sustained production of high-quality timber products while
giving consideration to values relating to sequestration of
carbon dioxide, recreation, watershed, wildlife, range and
forage, fisheries, regional economic vitality, employment, and
aesthetic enjoyment.
4)Provides for the regulatory review and approval of timber
harvest plans.
FISCAL EFFECT: Unknown
COMMENTS: The state has various programs that provide bid
preferences to specific types of contractors or for projects in
certain areas. Generally, various Government Code sections
establish the programs and the Department of General Services'
(DGS) State Contracting Manual specifies program parameters and
compliance requirements.
The two main bid preference programs are the Disabled Veteran
Business Enterprise Program and the Certified Small and
Microbusiness Program. DGS oversees these programs and
certifies these businesses so they are eligible for the
preferences when bidding for state contracts. Additional
smaller bid preferences are also overseen by DGS.
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This bill would add a preference for lumber or other solid wood
products that are produced in an environmentally preferred
process as set out in the Act. The author states this bill
would simply encourage state agencies to give preference to
California lumber products as long as the price, quality and
fitness of products are equal. The problem with existing law,
the author contends, is that there is no recognition of the
higher California standards of environmental compliance for
California timber companies. Production has fallen due to
timberland removals from production for environmental and social
benefit; high costs of compliance with regulations; and,
competition from out-of-state producers.
REGISTERED SUPPORT / OPPOSITION:
Support
California Chamber of Commerce
California Forestry Association
Forest Products Industry National Labor Management Committee
Green Diamond Resource Company
Mendocino/Humbolt Redwood Companies
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Shasta Forests Timberlans, LLC and Red River Forests, LLC
Sierra Pacific Industries
Western Wood Preservers Institute
Opposition
None on file
Analysis Prepared by:William Herms / A. & A.R. / (916) 319-3600