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AB-1543 Public contracts: Buy American.(2011-2012)

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CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1543


Introduced  by  Assembly Member Alejo

January 25, 2012


An act to amend Sections 4300, 4301, 4303, 4304, and 4305 of, and to repeal Sections 4302, 4302.5, 4302.6, and 4303.5 of, the Government Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 1543, as introduced, Alejo. Public contracts: Buy American.
The California Buy American Act requires that a governing body of any political subdivision, municipal corporation, or district, and any public officer or person charged with the letting of contracts for the construction, alteration, or repair of public works or for purchasing materials for public use to only let those contracts to a person who agrees to use or supply materials produced or manufactured in the United States, as prescribed. Existing law does not apply this requirement to specified medical and scientific equipment and instruments, sewing machines, printing presses, or office machines or supplies, as specified.
This bill would, on and after January 1, 2014, also apply a similar requirement to public contracts let for the purchase or lease of any manufactured tangible personal property or for any materials or structural components to be incorporated into real property, and would provide for specified exceptions, as provided. This bill would repeal those provisions that prohibit the application of the existing United States-made preference to specified medical and scientific equipment and instruments, sewing machines, printing presses, or office machines or supplies. By imposing new duties upon local governments with respect to public contracts, this bill would impose a state-mandated local program. This bill would also make related changes.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 This measure shall be known as the Bring Manufacturing Jobs Back to California Act.

SEC. 2.

 The Legislature hereby finds and declares the following:
(a) In the years 2001 to 2011, inclusive, California lost 612,000 manufacturing jobs, equal to over 32 percent of our state’s industrial base.
(b) The outsourcing of jobs, particularly for manufacturing products that once had the “Made in America” label, contributes to these losses.
(c) The most recent example of how this outsourcing hurts Californians is the new $6.3 billion San Francisco-Oakland Bay Bridge East Span, which is being built in China by workers reportedly being paid $12 per day. The work on this one project alone reportedly represents over 3 million hours of high-wage manufacturing jobs in California lost to non-Californians.
(d) The decline of our industrial base, and the loss of high-wage manufacturing jobs, has led to suffering for unemployed workers and frustration for consumers who cannot find high-quality “Made in America” products in stores.
(e) A key to reducing our state’s double-digit unemployment rate is to bring back manufacturing jobs to California.
(f) For every manufacturing job created, an additional 2.5 jobs are created in the broader economy.
(g) The State of California, counties, cities, districts, and local government agencies should curtail spending billions of tax dollars to purchase products for use by state and local government that are manufactured overseas.
(h) With the enactment of a 33-percent renewables portfolio standard for all California electric utilities by 2020, the development of clean and safe renewable energy sources will require extensive manufacturing of new solar, wind, geothermal equipment, and other materials and equipment to be used in the construction and operation of publicly owned renewable energy facilities.

SEC. 3.

 It is the purpose and intent of the Legislature to do the following:
(a) Bring manufacturing jobs back to California.
(b) Create a market for new manufacturing contracts based upon the unified purchasing power of the State of California and our state’s counties, cities, districts, and local government agencies.
(c) Unleash the entrepreneurial skills of California manufacturers that have been forced to close their factories due to anticompetitive outsourcing policies that ignore the human and material costs of shipping manufacturing jobs overseas.
(d) Prevent the continuous outsourcing of California’s industrial base.
(e) Leverage a newly created demand for manufactured products made in America to create real choices for California consumers who want to purchase products made in America.
(f) Ensure that the expansion of California’s publicly owned renewable energy industry facilities creates “Made in America” manufacturing jobs.

SEC. 4.

 Section 4300 of the Government Code is amended to read:

4300.
 As used in this article:
(a) “United States” means the United States of America, and includes any Territory or insular possession of the United States.
(b) “Produced” includes mined and manufactured.
(c) “Materials” includes articles and supplies.
(d) “Equipment” includes, but is not limited to, devices, tools, machines, and vehicles.

SEC. 5.

 Section 4301 of the Government Code is amended to read:

4301.
 This article does not apply to materials which are of a class or kind which are not, or which are manufactured from materials which are not, produced in the United States, nor to key-driven calculators manufactured in branch plants located outside continental United States, but which plants are wholly owned and operated by a corporation the majority of whose stock is owned or controlled by an American manufacturer whose principal manufacturing centers and home offices are located in the United States. Notwithstanding any other law and except as prohibited by federal law, on and after January 1, 2014, the governing body of any state or local political subdivision, municipal corporation, or district, or any state or local public officer or person charged with the letting of contracts for the purchase or lease of any manufactured tangible personal property or for any materials or structural components to be incorporated into real property, shall let those contracts only for manufactured tangible personal property or for any materials or structural components to be incorporated into real property that is manufactured in the United States, substantially all from materials produced in the United States. The only waivers, exceptions, or exemptions to these requirements are:
(a) For purchase or lease of spare parts for any existing equipment owned by or under lease to any state or local political subdivision, municipal corporation, or district on or before December 31, 2013.
(b) For purchase or lease of manufactured tangible personal property or for any materials or structural components to be incorporated into real property the age of which exceeds 60 months.
(c) For purchase or lease of any books, newspapers, magazines, journals, or other media, not produced in the United States, for use by libraries, museums, research facilities, or government repositories.
(d) For purchase or lease of any artwork, or any historical, cultural, literary, or scientific artifacts intended for display or for research in libraries, museums, research facilities, or government repositories.
(e) For purchase or lease by any state or local political subdivision, municipal corporation, or district of specifically identified and particularly described manufactured tangible personal property or any materials or structural components to be incorporated into real property excepted by statutes that are passed in each house of the Legislature by rollcall vote entered in the journal, a majority of the membership concurring, and signed by the Governor.
(f) For waivers, exceptions, or exemptions in response to an emergency or to protect public health or safety enacted in statutes approved by a simple majority vote of each house of the Legislature and signed by the Governor.
(g) Any waiver, exception, or exemption approved by statutes enacted shall be in effect for a period no longer than three years from the effective date of the statute.

SEC. 6.

 Section 4302 of the Government Code is repealed.
4302.

This article does not apply to medical and surgical instruments, scientific equipment, microscopes, lenses, or instruments used for scientific or medical purposes, including research.

SEC. 7.

 Section 4302.5 of the Government Code is repealed.
4302.5.

The provisions of this article do not apply to the purchase of sewing machines, regardless of the place of their manufacture or the source of the materials from which such machines were manufactured.

SEC. 8.

 Section 4302.6 of the Government Code is repealed.
4302.6.

The provisions of this article do not apply to the purchase of printing presses of rotary gripper system or single revolution design, which are purchased exclusively for use in schools and colleges for educational purposes; provided, however, that if printing presses of rotary gripper system or single revolution design are manufactured within the United States that only such presses as are manufactured in the United States shall be purchased.

SEC. 9.

 Section 4303 of the Government Code is amended to read:

4303.
 The governing body of any state or local political subdivision, municipal corporation, or district, and any public officer or person charged with the letting of contracts for (1) the construction, alteration, or repair of public works or (2) for the purchasing of materials for public use, shall let such contracts only to persons who agree to use or supply only such unmanufactured materials as that have been produced or manufactured in the United States, and only such manufactured materials as have been manufactured in the United States, substantially all from materials produced in the United States.

SEC. 10.

 Section 4303.5 of the Government Code is repealed.
4303.5.

Any provision of this article to the contrary notwithstanding, any such body or person may let a contract for the purchase of office machines or supplies therefor without regard to the place of their manufacture or the source of the materials from which such machines or supplies are manufactured, except that such contracts or purchases shall be subject to the provisions of Section 4334.

SEC. 11.

 Section 4304 of the Government Code is amended to read:

4304.
 Every contract for the construction, alteration, or repair of public works or for the purchase of materials for public use shall contain a provision that only unmanufactured materials produced in the United States, and only manufactured materials manufactured in the United States, substantially all from materials produced in the United States shall be used in the performance of the contract.
Any person who fails to comply with such provision shall not be awarded any contract to which this article applies for a period of three years from the date of the violation.

SEC. 12.

 Section 4305 of the Government Code is amended to read:

4305.
 The name of the person failing to comply, together with a report of the facts constituting the violation, shall be posted by the governing board or person who let the contract in at least three public places in the county in which the contract was made.

SEC. 13.

 The provisions of this act are severable, if any provision of this act, or part thereof, is for any reason held to be invalid under state or federal law, the remaining provisions shall not be affected but shall remain in full force and effect.

SEC. 14.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 15.

 This act shall become effective January 1, 2014.