BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1012|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: SB 1012
Author: Nguyen (R), et al.
Amended: 4/18/16
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 4/12/16
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer,
Hernandez, Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Runner
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/2/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
SUBJECT: Flags: purchase
SOURCE: Author
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.
ANALYSIS:
Existing law:
1)Requires the Flag of the United States and the Flag of the
State 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.
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2)Requires the Flag of the United States and the Flag of the
State of California 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.
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 of California 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.
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
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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
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.
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
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government's foreign power to conduct foreign trade policy.
Prior/Related Legislation
AB 312 (Jones, 2015) provides 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 in Senate Judiciary Committee)
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.:YesLocal: No
According to the Senate Appropriations Committee, no new costs,
as all flags currently purchased by DGS are made in the United
States. However, potential reimbursable mandate costs, but only
to the extent local agencies are not currently purchasing United
States made flags, those flags are more expensive than those
currently purchased by local agencies, and the net
cost-differential exceeds $1,000 for each affected agency in a
given fiscal year. (General Fund)
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Any state- reimbursable costs would be contingent upon the
filing of a successful reimbursement claim with the Commission
on State Mandates, and a determination by the Commission that
specific mandated local costs are deemed reimbursable.
SUPPORT: (Verified5/3/16)
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
Military Officers Association - California Council of Chapters
VFW - Department of California
Vietnam Veterans of America, California State Council
OPPOSITION: (Verified5/3/16)
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.
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
5/4/16 15:04:15
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