(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.

(Added by Stats. 2017, Ch. 785, Sec. 2. (AB 822) Effective January 1, 2018.)