BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1012  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1012  
          (Nguyen) - As Amended April 18, 2016


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          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  


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          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  


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          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