BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1012


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          SENATE THIRD READING


          SB  
          1012 (Nguyen)


          As Amended  April 18, 2016


          Majority vote


          SENATE VOTE:  35-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Accountability  |8-0  |Cristina Garcia,      |                    |
          |                |     |Lackey, Burke,        |                    |
          |                |     |Frazier, Beth Gaines, |                    |
          |                |     |Irwin, Medina,        |                    |
          |                |     |Rodriguez             |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |








                                                                    SB 1012


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          |                |     |                      |                    |
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          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 Assembly Appropriations  
          Committee, 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:  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,  








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          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."


          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  








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          laws.  




          Analysis Prepared by:                                             
                          Scott Herbstman / A. & A.R. / (916) 319-3600   
          FN: 0003738