BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: SB 1012 Hearing Date: 4/12/2016
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|Author: |Nguyen, et al. |
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|Version: |2/11/2016 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Felipe Lopez |
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SUBJECT: Flags: purchase
DIGEST: This bill requires that any Flag of the United States
or the Flag of the State of California purchased by the state or
any local government agency be made in the United States from
articles, materials, or supplies that were grown, produced, and
manufactured in the United States.
ANALYSIS:
Existing law:
1)Requires the Flag of the United States and the Flag of
California to be prominently installed, displayed, and
maintained in the following places:
a) In the courtrooms of all courts of the State.
b) In all rooms where any court or any state, county, or
municipal commission holds any sessions.
2)Requires the Flag of the United States and the Flag of the
State to be prominently displayed during business hours upon
or in front of the buildings or grounds of or at each of the
following places:
a) Each public building belonging to the State, county, or
municipality.
b) At the entrance and exit of every state park.
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c) At the entrance or upon the grounds of each campus of
the University of California.
d) At the entrance or upon the grounds or upon the
administration building of every university, college, high
school, and elementary school, both public and private,
within the State.
e) Upon or at every agricultural inspection station just
inside California and located on every highway leading into
California.
f) At the entrance of or within every state highway
maintenance station where personnel reside or are on duty
at the time necessary to raise and lower the Flag.
3)Requires the Flag of the United States and the Flag of the
State to be prominently displayed during any and all games and
performances of every kind which take place in a coliseum,
stadium, bowl, or other open air sites, and at all race tracks
where racing is being conducted.
This bill:
1)Requires, on or after January 1, 2017, that every Flag of the
United States or the Flag of the State of California purchased
by the state or any local government agency shall be made in
the United States from articles, materials, or supplies that
were grown, produced and manufactured in the United States.
2)Defines a "local government agency," for purposes of this
bill, to mean a county, city, city and county, town, municipal
corporation, school district or other district, political
subdivision, or any board, commission, or agency thereof, or
other local agency.
Background
Purpose of the bill. According to the author, "current law is
silent on the sources from which American flags are purchased by
governments in the State of California. In order to support
American manufacturing jobs in the future, California
governments should only use taxpayer dollars to purchase flags
made from materials grown, produced, and manufactured in the
United States."
Purchasing of Flags. Though there is no statutory requirement
that requires the State of California to purchase flags made in
SB 1012 (Nguyen) Page 3 of ?
the United States, the Department of General Services currently
purchases all of its United States and California flags from the
California Prison Industry Authority (CALPIA), thus satisfying
this bill's requirement that the flags be made in the United
States. The CALPIA has indicated that the flags they produce
would be consistent with the requirements set forth in this
bill.
The CALPIA is a state-operated agency that provides productive
work assignments for approximately 7,000 offenders annually in
California's adult correctional institutions. It produces over
1,400 goods and services including office furniture, clothing,
food products, shoes, printing services, signs, binders, eye
wear, gloves, license plates, and cell equipment.
Legal Concerns. Governor Brown has previously vetoed
legislation that seeks to give preference for California
products because of concerns of costly legal challenges. For
example in 2015, Governor Brown vetoed AB 429 (Dahle), a bill
that sought to provide a bid preference for California products
when contracting for lumber and solid wood products. In his
veto message he stated that, "while I encourage the purchase of
California products, especially when price and quality are
equal, this bill would invite costly legal challenges for little
benefit."
These concerns seem to stem from challenges to California's Buy
American Act and the Buy California Act, both of which were
enacted by the California Legislature in 1943. The Buy American
Act generally requires the state and all local government
entities to contract only with contractors that use materials of
United States origin or manufacture. The Buy California Act
contains price-sensitive preferences for California goods and
supplies. These and similar provisions have been challenged in
the courts as interfering with the federal government's foreign
relations power and violating the commerce clause and equal
protection guarantee of the United States Constitution.
For example, in Bethleem Steel Corp. v Board of Commissioners
(1969) 276 Cal.App. 2d 221, the California Court of Appeal
reviewed the California Buy American Act and held that it was
invalid as an impermissible encroachment on the federal
government's foreign power to conduct foreign trade policy.
Suggested Amendment. Last year, the Legislature passed and the
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Governor signed SB 633 (Hill, Chapter 238, Statutes of 2015)
which clarified the definition "Made in U.S.A." To make this
bill consistent with current law, the committee may wish to
amend the bill and delete the following language starting on
page 2, line 1,"from articles, materials, or supplies that were
grown, produced, and manufactured in the United States."
Prior/Related Legislation
AB 312 (Jones, 2015) would provide that a product may be
advertised as being made or manufactured in the United States if
the merchandise has been all or virtually all made in the United
States. (Pending on the Assembly Floor)
AB 429 (Dahle, 2015) would have established a bid preference for
state contracts for lumber and other solid wood products
harvested in compliance with the Z'berg-Nejedly Forest Practice
Act, federal timber sales, or a federal certification program
identified by the director of the Department of Forestry and
Fire Protection. (Vetoed by Governor Brown)
SB 633 (Hill, Chapter 238, Statutes of 2015) prohibited the sale
of merchandise labeled Made in U.S.A., Made in America, U.S.A,
or similar words if the merchandise or any article, unit, or
part thereof, has been entirely or substantially made,
manufactured, or produced outside of the United States with
minor exceptions.
AB 199 (Holden 2013) would have required specified government
agencies, and encouraged public education entities to purchase
agriculture products produced in California if certain criteria
are met. (Vetoed by Governor Brown)
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
American G.I. Forum of California
American Legion - Department of California
AMVETS - Department of California
California Association of County Veteran Service Officers
California State Commanders Service Council
Made in the USA Foundation
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Military Officers Association - California Council of Chapters
VFW - Department of California
Vietnam Veterans of America, California State Council
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: Supporters argue that they believe that
the flag of the United States should be made in our country and
that public agencies should only purchase those that are made in
America.