BILL ANALYSIS �
AB 199
Page 1
GOVERNOR'S VETO
AB 199 (Holden)
As Amended September 5, 2013
2/3 vote
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|ASSEMBLY: |77-0 |(May 29, 2013) |SENATE: |39-0 |(September 9, |
| | | | | |2013) |
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|ASSEMBLY: |77-1 |(September 10, | | | |
| | |2013) | | | |
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Original Committee Reference: A. & A.R.
SUMMARY : Requires specified government agencies, and encourages
public education entities to purchase agriculture products
produced in California if certain criteria are met.
The Senate amendments :
1)Define which groups must meet purchasing requirements.
2)Encourage other groups to buy California agricultural
products.
3)Limit the amount towards purchases based on an agreement with
the World Trade Organization.
4)Set a sunset date of January 1, 2017.
5)Make other technical and non-substantive changes.
EXISTING LAW : Provides a purchasing preference to California
products over out-of-state products if other factors like price
and quality are the same. Government Code Section 4331 states
that "Price, fitness and quality being equal, any body, officer,
or other person charged with the purchase, or permitted or
authorized to purchase supplies for the use of the State, or of
AB 199
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any of its institutions or offices, or for the use of any county
or city shall always prefer supplies grown, manufactured, or
produced in the State, and shall next prefer supplies partially
manufactured, grown, or produced in the State."
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill will result in approximately $100,000
(General Fund and special fund) in costs to the Department of
General Services (DGS) to promulgate rules. DGS will also incur
increased administration costs (General Fund and special funds).
The amount of the increase is unknown, but is likely to be in
the range of hundreds of thousands to low millions of dollars
annually for bid evaluation, protests, and compliance
monitoring.
COMMENTS : Senate amendments require state-owned and state-run
institutions, except public universities, public schools, and
school districts, to purchase agricultural products grown in
California when 1) the bid price is equal to or less than the
price of agricultural products produced outside of the state,
and 2) the availability and delivery schedule of the
agricultural products is acceptable. Amendments also encourage
all public universities, public schools, and school districts to
purchase agricultural products grown in California to the
greatest extent possible.
Amendments specify that the section requiring state-owned and
state-run institutions shall only apply to a contract to
purchase agricultural products for a value that is less than the
value of the threshold for supplies and services for which
California has obligated itself under the Agreement on
Government Procurement of the World Trade Organization (WTO).
The threshold per contract under the WTO agreement is currently
$552,000, but it adjusts over time based on international
exchange rates.
Additionally, the amendments set a sunset date for the bill.
Unless a later statute is enacted, the bill will be repealed
January 1, 2017.
GOVERNOR'S VETO MESSAGE :
AB 199
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This bill would require the state to implement a
preference for agricultural products grown in
California and offered by a California company. This
preference would be difficult to comply with and quite
onerous. Every purchase, even a single bag of apples,
would be affected.
I strongly support California's agricultural industry
and encourage all state-run institutions to support
local farmers and businesses. In fact, state growers
and processors have no trouble competing for - and
winning - the state's business. Today, approximately
half of all food the Department of General Services
purchases for state institutions comes from
California, without a preference or a mandate.
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600
FN: 0002930