Amended  IN  Senate  May 19, 2022
Amended  IN  Senate  April 18, 2022
Amended  IN  Senate  March 14, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1308

Introduced by Senator Caballero

February 18, 2022

An act to amend amend, repeal, and add Section 58595 of, and to add Section 58596 to, the Food and Agricultural Code, relating to agricultural products.


LEGISLATIVE COUNSEL'S DIGEST


SB 1308, as amended, Caballero. Public educational institutions: purchase of nondomestic agricultural food products.
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 change the above-described requirement for school districts to apply to the purchase of a domestic agricultural product that is grown outside the state, instead of an agricultural product that is grown outside of the state. The bill would also prohibit the California Community Colleges, the California State University, and all local educational agencies that solicit bids for the purchase of an agricultural food product from purchasing, and would request the University of California not to purchase, agricultural food products grown, packed, or processed nondomestically, 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 meals provided under the school meal program of the public postsecondary educational institution or local educational agency. 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 define the term “agricultural food product” for purposes of the prohibition to mean a fresh or processed product, as specified. The bill would provide that this prohibition does not apply to agricultural food products purchased by or provided to a public postsecondary educational institution or local educational agency through the United States Department of Agriculture. The bill would make these provisions operative on January 1, 2024. To the extent that this bill would impose additional duties for school districts and community colleges, this bill would impose a state-mandated local program.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Over one-third of the country’s vegetables and two-thirds of the country’s fruits and nuts are grown in California. California’s agricultural abundance includes more than 400 commodities. California is the leading state in the nation for cash farm receipts, accounting for over 13 percent of the nation’s total agricultural value.
(b) California is the sole producer (99 percent or more) in the nation of almonds, artichokes, dates, figs, garlic, grapes, raisins, kiwi, melons, olives, clingstone peaches, pistachios, rice, and walnuts, and a lead producer in many more agricultural products.
(c) On January 25, 2021, President Joseph R. Biden issued an Executive Order on “Ensuring the Future Is Made in All of America by All of America’s Workers” that stated, “It is the policy of my Administration that the United States Government should, consistent with applicable law, use terms and conditions of Federal financial assistance awards and Federal procurements to maximize the use of goods, products, and materials produced in, and services offered in, the United States. The United States Government should, whenever possible, procure goods, products, materials, and services from sources that will help American businesses compete in strategic industries and help America’s workers thrive.”
(d) The Buy American Provision requiring the purchase of domestic commodities by participants in the National School Lunch Program has been in place for 30 years. However, the law allows waivers where the domestic product is priced significantly higher than a nondomestic product. This loophole has resulted in widespread noncompliance with Buy American Provision requirements.
(e) According to figures from the National Council of Farmer Cooperatives, 81 percent of the apple juice served in the school lunch program is imported, and 50 to 60 percent of the fish served in schools is “caught by Russian ships and processed in China.”
(f) Competition from nondomestic producers hurts California agriculture and threatens to eliminate the jobs that workers depend on to feed their own families.
(g) Those who rely on publicly purchased nutrition programs, including school nutrition programs, are often among the most vulnerable children and families. They should have access to high-quality, healthy meals, such as those grown, packed, and produced in California.
(h) Purchasing domestic products reduces the carbon footprint and results in lower greenhouse gas emissions. California companies are subject to more rigorous environmental standards, resulting in enhanced food safety and public safety.

SEC. 2.

 Section 58595 of the Food and Agricultural Code is amended to read:

58595.
 (a) All California state-owned or state-run institutions, except public universities and colleges and school districts, that solicit bids for the purchase of an agricultural product shall 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 both of the following are met:
(1) The bid or price of the California-grown agricultural product does not exceed by more than 5 percent the lowest bid or price for an agricultural product produced outside the state.
(2) The quality of the California-grown agricultural product is comparable to that agricultural produce produced outside the state.
(b) All California state-owned or state-run institutions, except public universities and colleges and school districts, that intend to accept a bid or price for agricultural products grown outside the state shall 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 both of the following are met:
(1) The bid or price of the agricultural product grown outside the state and packed or processed in the state does not exceed by more than 5 percent the lowest bid or price for the agricultural product packed or processed outside the state.
(2) The quality of the agricultural product packed or processed in the state is comparable to those packed or processed outside the state.
(c) A school district that solicits bids for the purchase of an agricultural product shall 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 both of the following are met:
(1) 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.
(2) The quality of the California-grown agricultural product is comparable to that agricultural produce produced outside the state.
(d) This section 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.
(e) This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 2.Section 58595 of the Food and Agricultural Code is amended to read:

SEC. 3.

 Section 58595 is added to the Food and Agricultural Code, to read:

58595.
 (a) All California state-owned or state-run institutions, except public universities and colleges and school districts, that solicit bids for the purchase of an agricultural product shall 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 both of the following are met:
(1) The bid or price of the California-grown agricultural product does not exceed by more than 5 percent the lowest bid or price for an agricultural product produced outside the state.
(2) The quality of the California-grown agricultural product is comparable to that agricultural produce produced outside the state.
(b) All California state-owned or state-run institutions, except public universities and colleges and school districts, that intend to accept a bid or price for agricultural products grown outside the state shall 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 both of the following are met:
(1) The bid or price of the agricultural product grown outside the state and packed or processed in the state does not exceed by more than 5 percent the lowest bid or price for the agricultural product packed or processed outside the state.
(2) The quality of the agricultural product packed or processed in the state is comparable to those packed or processed outside the state.
(c) In addition to the requirements in Section 58596, a school district that solicits bids for the purchase of an agricultural product shall accept a bid or price for that agricultural product when it is grown in California before accepting a bid or price for a domestic agricultural product that is grown outside the state, when both of the following are met:
(1) The bid or price of the California-grown agricultural product does not exceed the lowest bid or price for a domestic agricultural product produced outside the state.
(2) The quality of the California-grown agricultural product is comparable to that domestic agricultural produce produced outside the state.
(d) This section 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.
(e) For purposes of this section, “domestic” means inside of the United States.
(f) This section shall become operative on January 1, 2024.

SEC. 3.SEC. 4.

 Section 58596 is added to the Food and Agricultural Code, immediately following Section 58595, to read:

58596.
 (a) The California Community Colleges, the California State University, and all local educational agencies that solicit bids for the purchase of an agricultural food product shall not, and the University of California is requested to not, purchase agricultural food products grown, packed, or processed nondomestically, unless any of the following applies:
(1) The bid or price of the nondomestic agricultural food product is more than 25 percent lower than the bid or price of the domestic agricultural food product.
(2) The quality of the domestic agricultural food product is inferior to the quality of the agricultural food product grown, packed, or produced nondomestically.
(3) 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 meals provided under the school meal program of the public postsecondary educational institution or local educational agency.
(b) The prohibition in subdivision (a) shall not apply to agricultural food products purchased by or provided to a public postsecondary educational institution or local educational agency through the United States Department of Agriculture.
(c) This section shall neither limit nor expand California’s obligations under the Agreement on Government Procurement of the World Trade Organization.
(d) For purposes of this chapter, the following definitions apply:
(1) “Agricultural food product” means a fresh or processed product, including fruits, nuts, vegetables, herbs, mushrooms, dairy, shell eggs, honey, pollen, unprocessed bees wax, propolis, royal jelly, flowers, grains, nursery stock, raw sheared wool, livestock meats, poultry meats, rabbit meats, and fish, including shellfish.
(2) “Domestic” means inside of the United States.
(3) “Local educational agency” has the same meaning as defined in Section 49557.5 of the Education Code.
(4) “Nondomestic” means outside of the United States.
(5) “Public postsecondary educational institution” means the California Community Colleges, the California State University, or the University of California.
(e) This section shall become operative on January 1, 2024.

SEC. 4.SEC. 5.

 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.