BILL ANALYSIS Ó SB 1012 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1012 (Nguyen) - As Amended April 18, 2016 ----------------------------------------------------------------- |Policy |Accountability and |Vote:|8 - 0 | |Committee: |Administrative Review | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: Yes SUMMARY: This bill 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. SB 1012 Page 2 FISCAL EFFECT: No additional new state costs, as all flags currently purchased by the Department of General Services (DGS) are made in the US. Potential reimbursable costs, but only to the extent a local agency is not currently purchasing US-made flags, and such flags are more expensive than those currently purchased by the agency and result in increased costs to the agency exceeding $1,000 in any given fiscal year. This is unlikely. COMMENTS: Purpose. 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." According to the analysis of this bill by the Assembly Committee on Accountability and Administrative Review, the bill, if implemented, could face legal challenges. Governor Brown has previously vetoed legislation that seeks to give preference to California products because of such concerns. For example, the Governor vetoed AB 429 (Dahle) of 2015, a bill providing bid preference for California products in state contracts for lumber and solid wood products. The Governor argued, "while I SB 1012 Page 3 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. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081