BILL ANALYSIS Ó SB 1012 Page 1 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 Page 2 | | | | | | | | | | ------------------------------------------------------------------ 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, SB 1012 Page 3 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 SB 1012 Page 4 laws. Analysis Prepared by: Scott Herbstman / A. & A.R. / (916) 319-3600 FN: 0003738