Bill Text: CA AB2672 | 2011-2012 | Regular Session | Introduced

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

---

Bill Title: Procurement omnibus bill.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Vetoed) 2012-09-28 - Consideration of Governor's veto pending. [AB2672 Detail]

Download: California-2011-AB2672-Introduced.html

---

BILL NUMBER: AB 2672	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Jobs, Economic Development, and the
Economy (Assembly Members V. Manuel Pérez (Chair), Beall, Block, and
Hueso)

                        MARCH 5, 2012

   An act to amend Sections 7084 and 7118 of the Government Code, and
to amend Section 10349 of the Public Contract Code, relating to
economic development.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2672, as introduced, Committee on Jobs, Economic Development,
and the Economy. Procurement omnibus bill.
   (1) Existing law requires the state to provide bidding
preferences, as specified, to companies meeting specified
requirements and making specified declarations related to work within
an enterprise zone or a local agency military base recovery area.
   This bill would require each awarding department to submit a
report every January 1 to the Department of General Services on the
level of participation by enterprise zones and local agency military
base recovery areas in certain contracts, as specified.
   (2) Existing law requires the Department of Personnel
Administration to establish a program for training state agency
contracting personnel in contract administration and contract
management.
   This bill would require the training program to address certain
requirements, as specified, including, but not limited to, small
business preferences, disabled veteran-owned business preferences,
and enterprise zone preferences.
   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 7084 of the Government Code is amended to read:

   7084.  (a) 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 that 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 an enterprise zone.
   (b) 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 that demonstrate and certify under penalty
of perjury that not less than 90 percent of the labor hours required
to perform the contract shall be accomplished at an identified
worksite or worksites located in an enterprise zone.
   (c) Where a bidder complies with subdivision (a) or (b), the state
shall award a 1-percent preference for bidders who certify under
penalty of perjury to hire persons living within a targeted
employment area or are enterprise zone eligible employees equal to 5
to 9 percent of its workforce during the period of contract
performance; a 2-percent preference for bidders who shall agree to
hire persons living within a targeted employment area or are
enterprise zone eligible employees equal to 10 to 14 percent of its
workforce during the period of contract performance; a 3-percent
preference for bidders who shall agree to hire persons living within
a targeted employment area or are enterprise zone eligible employees
equal to 15 to 19 percent of its workforce during the period of
contract performance; and a 4-percent preference for bidders who
shall agree to hire persons living within a targeted employment area
or are enterprise zone eligible employees equal to 20 or more percent
of its workforce during the period of contract performance.
   (d) The maximum preference a bidder may be awarded pursuant to
this chapter and any other provision of law shall be 15 percent.
However, in no case shall the maximum preference cost under this
section exceed fifty thousand dollars ($50,000) for any bid, nor
shall the combined cost of preferences granted pursuant to this
section and any other provision of law exceed one hundred thousand
dollars ($100,000). In those cases where the 15-percent cumulated
preference cost would exceed the one hundred thousand dollar
($100,000) maximum preference cost limit, the one hundred thousand
dollar ($100,000) maximum preference cost limit shall apply.
   (e) Notwithstanding any other provision of this section, small
business bidders qualified in accordance with Section 14838 shall
have precedence over nonsmall business bidders in that the
application of any bidder preference for which nonsmall business
bidders may be eligible, including the preference contained in this
section, shall not result in the denial of the award to a small
business bidder. This subdivision shall apply to those cases where
the small business bidder is the lowest responsible bidder, as well
as to those cases where the small business bidder is eligible for
award as the result of application of the 5-percent small business
bidder incentive.
   (f) All state contracts issued to bidders who are awarded
preferences under this section shall contain conditions to ensure
that the contractor performs the contract at the location specified
and meets any commitment to employ persons with high risk of
unemployment.
   (g) (1) A business that requests and is given the preference
provided for in subdivision (a) or (b) by reason of having furnished
a false certification, and that by reason of this certification has
been awarded a contract to which it would not otherwise have been
entitled, shall be subject to all of the following:
   (A) Pay to the state any difference between the contract amount
and what the state's cost would have been if the contract had been
properly awarded.
   (B) In addition to the amount specified in subparagraph (A), be
assessed a penalty in an amount of not more than 10 percent of the
amount of the contract involved.
   (C) Be ineligible to directly or indirectly transact any business
with the state for a period of not less than six months and not more
than 36 months.
   (2) Prior to the imposition of any sanction under this
subdivision, the business shall be entitled to a public hearing and
to five days' notice of the time and place thereof. The notice shall
state the reasons for the hearing.
   (h) In each instance in this section an enterprise zone shall also
mean any enterprise zone or program area previously authorized under
any other provision of state law.
   (i) As used in this section, "enterprise zone eligible employees"
means employees who meet any of the requirements of clause (iv) of
subparagraph (A) of paragraph (4) of subdivision (b) of Section
17053.74, or clause (iv) of subparagraph (A) of paragraph (4) of
subdivision (b) of Section 23622.5, of the Revenue and Taxation Code.

   (j) Commencing on January 1, 2013, and on January 1 of each year
thereafter, each awarding department shall submit a report to the
Department of General Services on the level of participation by
enterprise zones in contracts identified in this section. 
  SEC. 2.  Section 7118 of the Government Code is amended to read:
   7118.  (a) 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 local agency military base recovery area.
   (b) 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 labor hours required
to perform the contract shall be accomplished at an identified
worksite or worksites located in a local agency military base
recovery area.
   (c) Where a bidder complies with subdivision (a) or (b), the state
shall award a 1-percent preference for bidders who certify under
penalty of perjury to hire persons living within a local agency
military base recovery area equal to 5 to 9 percent of its workforce
during the period of contract performance; a 2-percent preference for
bidders who shall agree to hire persons living within a local agency
military base recovery area equal to 10 to 14 percent of its
workforce during the period of contract performance; a 3-percent
preference for bidders who shall agree to hire persons living within
a local agency military base recovery area equal to 15 to 19 percent
of its workforce during the period of contract performance; and a
4-percent preference for bidders who shall agree to hire persons
living within a local agency military base recovery area equal to 20
or more percent of its workforce during the period of contract
performance.
   (d) The maximum preference a bidder may be awarded pursuant to
this chapter and any other provision of law shall be 15 percent.
However, in no case shall the maximum preference cost under this
section exceed fifty thousand dollars ($50,000) for any bid, nor
shall the combined cost of preferences granted pursuant to this
section and any other provision of law exceed one hundred thousand
dollars ($100,000). In those cases where the 15-percent cumulated
preference cost would exceed the one hundred thousand dollar
($100,000) maximum preference cost limit, the one hundred thousand
dollar ($100,000) maximum preference cost limit shall apply.
   (e) Notwithstanding any other provision of this section, small
business bidders qualified in accordance with Section 14838 shall
have precedence over nonsmall business bidders in that the
application of any bidder preference for which nonsmall business
bidders may be eligible, including the preference contained in this
section, shall not result in the denial of the award to a small
business bidder. This subdivision shall apply to those cases where
the small business bidder is the lowest responsible bidder, as well
as to those cases where the small business bidder is eligible for
award as the result of application of the 5-percent small business
bidder preference.
   (f) All state contracts issued to bidders who are awarded
preferences under this section shall contain conditions to ensure
that the contractor performs the contract at the location specified
and meets any commitment to employ persons with high risk of
unemployment.
   (g) (1) A business that requests and is given the preference
provided for in subdivision (a) or (b) by reason of having furnished
a false certification, and that by reason of this certification has
been awarded a contract to which it would not otherwise have been
entitled, shall be subject to all of the following:
   (A) Pay to the state any difference between the contract amount
and what the state's cost would have been if the contract had been
properly awarded.
   (B) In addition to the amount specified in subparagraph (A), be
assessed a penalty in an amount of not more than 10 percent of the
amount of the contract involved.
   (C) Be ineligible to directly or indirectly transact any business
with the state for a period of not less than six months and not more
than 36 months.
   (2) Prior to the imposition of any sanction under this
subdivision, the business shall be entitled to a public hearing and
to five days' notice of the time and place thereof. The notice shall
state the reasons for the hearing.
   (h) In each instance in this section, a local agency military base
recovery area shall also mean any local agency military base
recovery area previously authorized under any other provision of
state law. 
   (i) Commencing on January 1, 2013, and on January 1 of each year
thereafter, each awarding department shall submit a report to the
Department of General Services on the level of participation by local
agency military base recovery areas in contracts identified in this
section. 
  SEC. 3.  Section 10349 of the Public Contract Code is amended to
read:
   10349.   (a)    The Department of Personnel
Administration shall establish a program for training state agency
contracting personnel in contract administration and contract
management. The cost of training state agency contracting personnel
shall be paid by state agencies out of their appropriations for
personnel training. The Department of Personnel Administration shall,
prior to establishing the training program required by this section,
consult with the department concerning the training curriculum and
the development of a training manual on contract administration. 

   (b) The training program shall address the requirements in
existing law relating to state contract administration and
management, including, but not limited to, small business
preferences, disabled veteran-owned business preferences, and
enterprise zone preferences.