BILL ANALYSIS Ó
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Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Cristina Garcia, Chair
SB
1012 (Nguyen) - As Amended April 18, 2016
SENATE VOTE: 35-0
SUBJECT: Flags: purchase
SUMMARY: Requires State and local governments that purchase any
flag of the United States (US) or flag of the State of
California to purchase ones made in the US.
EXISTING LAW: Requires the Flag of the US and the Flag of the
State of California to be displayed in several places, including
on the grounds of government buildings, in rooms holding
government sessions, and in court rooms.
FISCAL EFFECT: According to the Senate Appropriations
Committee, no new state costs, as all flags currently purchased
by the Department of General Services (DGS) are made in the US.
(General Fund)
Potential reimbursable mandate costs, but only to the extent
local agencies are not currently purchasing US-made flags, those
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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) 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.
COMMENTS: This bill requires state and local government
agencies, when purchasing US or California flags, to buy those
made in the US only. According to DGS, the state currently only
purchases US-made flags. Those flags are produced by the
California Prison Industry Authority (PIA).
This bill defines "local government agency" to include 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.
The author states, "It makes sense to have both our American and
California flags manufactured by Americans here at home in the
United States. California should not weaken our symbol of
national pride by allowing governments to purchase American or
California flags with taxpayer dollars from non-American
sources."
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The extent to which this bill would changes current purchasing
practices is unknown. While the state currently purchases
US-made flags, it is unclear how many local government agencies
purchase flags that are not made in the US. According to the
author's office, local governments that it surveyed already buy
US-made flags.
In addition to PIA selling US-made flags, an online search for
US and California flags showed several others vendors that sell
US-made flags.
This bill, if implemented, could face legal challenges.
Governor Brown has previously vetoed legislation that seeks to
give preference to 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. The veto message 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."
Preferences enacted by California and other states to purchase
products made in the US or in respective states have met legal
challenges that questioned the authority of states to enact such
laws.
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REGISTERED SUPPORT / OPPOSITION:
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
Military Officers Association - California Council of Chapters
VFW - Department of California
Vietnam Veterans of America, California State Council
Opposition
None on file
Analysis Prepared by:Scott Herbstman / A. & A.R. / (916)
319-3600
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