(1) Existing law requires all California state-owned or state-run institutions, except public universities and colleges and school districts, to purchase an agricultural product grown in California when the bid or price of the California-grown agricultural product does not exceed by more than 5% the lowest bid or price for an agricultural product produced outside the state and the quality of the California-grown agricultural product is comparable. Existing law also requires the institutions, when they solicit or intend to accept a bid or price for agricultural products grown outside the state, to accept the bid or price from a vendor that packs or processes these agricultural products in the state before accepting a bid or price from a vendor that packs or processes these agricultural products outside of the state when specified conditions are met. Existing law requires a school district that solicits bids for the purchase of an agricultural product to accept a bid or price for that agricultural product when it is grown in California before accepting a bid or price for an agricultural product that is grown outside the state when the bid or price of the California-grown agricultural product does not exceed the lowest bid or price for an agricultural product produced outside the state and the quality of the California-grown agricultural product is comparable. Under existing law, these provisions 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.

This bill would enact the Buy American Food Act to require public institutions, as defined, that receive federal meal reimbursement funding to provide prepared meals and that solicit bids for the purchase of agricultural food products, as defined, to include in their solicitation for bids and contracts that only the purchase of agricultural food products grown, packed, or processed domestically is authorized, unless the bid or price of the nondomestic agricultural food product is more than 25% lower than the bid or price of the domestic agricultural food product, the quality of the domestic agricultural food product is inferior to the quality of the agricultural food product grown, packed, or produced nondomestically, or the agricultural food product is not produced or manufactured domestically in sufficient and reasonably available quantities of a satisfactory quality to meet the needs of the public institution. The bill would exempt local educational agencies with annual federal meal reimbursement funding of less than $1,000,000 from these provisions. The bill would require the public institution to retain documentation relating to the purchase of agricultural food products for 3 years and to make that documentation available to the public upon request. The bill would provide that the bill’s provisions neither limit nor expand California’s obligations under the Agreement on Government Procurement of the World Trade Organization. The bill would provide that these provisions do not apply to the Child and Adult Care Food Program, the Summer Food Service Program, the Department of Corrections and Rehabilitation, or to agricultural food products purchased by or provided to a public institution through the United States Department of Agriculture. The bill would provide an exception to the above requirement for public institutions when a vendor substitutes an agricultural food product without notice or because a product is not available. To the extent that this bill would impose additional duties for local educational agencies and community colleges, this bill would impose a state-mandated local program.

(2) Existing federal law, the National School Lunch Act, establishes a federal subsidy program to provide free and reduced-price meals to eligible children in schools. As a condition of participation, federal law requires the State Department of Education and participating local educational agencies to comply with a provision, known as the Buy American provision, that requires school food authorities, as defined, to purchase, to the maximum extent possible, domestic commodities or products. Existing federal regulations establish procedures for administrative review and compliance with specific program requirements, including the Buy American provision. Under existing state law, the State Department of Education and local educational agencies administer the National School Lunch Act programs.

This bill would require the department to annually post on its internet website the aggregate information on reports received from participating local educational agencies on price increases for agricultural food products, as specified. The bill would require the department to add a question to the federally required administrative review, as specified, regarding increases to the price of agricultural food products and the annual costs associated with implementing the requirement on purchasing domestic agricultural food products.

(3) 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 the statutory provisions noted above.