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