Bill Text: CA AB2022 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Public contracts: Target Area Contract Preference Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 780, Statutes of 2014. [AB2022 Detail]

Download: California-2013-AB2022-Amended.html

---

BILL NUMBER: AB 2022	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2014
	AMENDED IN ASSEMBLY  APRIL 9, 2014

INTRODUCED BY   Assembly Member Medina

                        FEBRUARY 20, 2014

   An act to amend Sections 4532  , 4533,  and 4534
of, and to repeal Section 4534.1 of, the Government Code, relating to
public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2022, as amended, Medina. Public contracts: Target Area
Contract Preference Act.
   The Target Area Contract Preference Act establishes a preference
for contracts for goods or services that are in excess of $100,000
for contractors that certify that a specified percentage of the hours
worked on a contract will be performed on a worksite in a distressed
area, as defined.
   This bill would redefine a distressed area to be a census tract
that is determined  by the Department of Finance  under a
specified statute to be in the top quartile of census tracts for
highest unemployment and poverty.  The bill would prohibit
these preferences from being used to award any contract to a
certified small business or disabled veteran business enterprise.

   Existing law establishes a preference for contractors who certify
that they will use a specified amount of persons with a high risk of
unemployment, as defined, on a contract.
   This bill would redefine persons with a high risk of unemployment
to include, but not be limited to, a person that has been unemployed
for a specified period of time, a veteran who served in active duty
since September 11, 2001, a person who has been incarcerated, or a
person who receives benefits of the Supplemental Nutrition Assistance
Program.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 4532 of the Government Code is amended to read:

   4532.  As used in this chapter:
   (a) "California-based company" means either of the following:
   (1) A business or corporation whose principal office is located in
California, and the owners, or officers if the entity is a
corporation, are domiciled in California.
   (2) A business or corporation that has a major office or
manufacturing facility located in California and that has been
licensed by the state on a continuous basis to conduct business
within the state and has continuously employed California residents
for work within the state during the three years prior to submitting
a bid or proposal for a state contract.
   (b) "Distressed" means a census tract determined by the Department
of Finance, pursuant to Section 13073.5, to be in the top quartile
of census tracts for having the highest unemployment and poverty in
the state. If the designated census tract is predominately
residential, the immediately adjacent census tract that is a
predominately commercial and industrial tract shall also be a
distressed area for the purpose of this chapter.
   (c) "Person with a high risk of unemployment" includes, but is not
limited to, the following:
   (1) A person who is currently unemployed and has been unemployed
for more than 200 days.
   (2) A person who has been unemployed for greater than 200 days
within the last 365 days.
   (3) Veterans who served on active duty since September 11, 2001.
   (4) A person who has been incarcerated.
   (5) A person who receives benefits of the Supplemental Nutrition
Assistance Program.
   (d) "Worksite" means either of the following:
   (1) A business located within a distressed area.
   (2) A business located in directly adjoining census tract blocks
that when attached to the distressed area forms a contiguous
boundary. A company that intends to perform the work at a worksite
described in this paragraph shall submit a map with the bid or
proposal identifying where the worksite is located. 
  SEC. 2.    Section 4533 of the Government Code is
amended to read:
   4533.  Whenever the state prepares a solicitation for a contract
for goods in excess of one hundred thousand dollars ($100,000),
except a contract in which the worksite is fixed by the provisions of
the contract, the state shall award a 5-percent preference to
California-based companies who demonstrate and certify under penalty
of perjury that of the total labor hours required to manufacture the
goods and perform the contract, at least 50 percent of the hours
shall be accomplished at an identified worksite or worksites located
in a distressed area. This preference shall not be used to award any
contract pursuant to Section 14838.5, relating to a certified small
business or a disabled veteran business enterprise. 
   SEC. 3.   SEC. 2.   Section 4534 of the
Government Code is amended to read:
   4534.  (a) In evaluating proposals for contracts for services in
excess of one hundred thousand dollars ($100,000), except a contract
in which the worksite is fixed by the provisions of the contract, the
state shall award a 5-percent preference on the price submitted by
California-based companies who demonstrate and certify under penalty
of perjury that not less than 90 percent of the total labor hours
required to perform the contract shall be accomplished at an
identified worksite or worksites located in a distressed area.
 This preference shall not be used to award any contract
pursuant to Section 14838.5, relating to a certified small business
or a disabled veteran business enterprise. 
   (b) Where a bidder complies with the provisions of subdivision
(a), the state shall award the additional preferences as set forth in
Section 4533.1 as appropriate.
   SEC. 4.   SEC. 3.   Section 4534.1 of
the Government Code is repealed.