BILL ANALYSIS Ó AB 429 Page 1 GOVERNOR'S VETO AB 429 (Dahle) As Enrolled September 8, 2015 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: | 78-0 | (May 11, |SENATE: |36-0 | (September 2, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: | 78-0 |(September 3, | | | | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: A. & A.R. SUMMARY: Establishes a bid preference for state contracts for lumber and other solid wood products harvested in compliance with the Z'berg-Nejedly Forest Practice Act (Act), federal timber sales, or a federal certification program identified by the director of the Department of Forestry and Fire Protection (CDF). AB 429 Page 2 The Senate amendments: 1)Delete the purchase preference for lumber harvested under a compliance offset protocol. 2)Allow the purchase preference to apply to lumber harvested in accordance with a forest program that has been identified by the director of the CDF after consideration at a public hearing. 3)Make clarifying changes. EXISTING LAW: 1)Declares in the Act that forest lands are among the most valuable natural resources in the state. 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. AB 429 Page 3 FISCAL EFFECT: According to the Senate Appropriations Committee, onetime costs of up to $100,000 to the General Fund for the Department of General Services to promulgate regulations that would establish how the bid preference in this bill would interact with other existing bid preferences. GOVERNOR'S VETO MESSAGE: This bill requires state agencies to provide a bid preference for California products when contracting for lumber and solid wood products. In recent years I have signed sweeping reforms into law that have reduced fees and regulatory burdens on California's forestry industry. These reforms have helped the industry compete on a level playing field. While I encourage the purchase of California products, especially when price and quality are equal, this bill could invite costly legal challenges for little benefit. For this reason I cannot sign it. Analysis Prepared by: William Herms / A. & A.R. / (916) 319-3600 FN: 0002463 AB 429 Page 4