Bill Text: CA AB2844 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Public contracts: discrimination.

Spectrum: Slight Partisan Bill (Democrat 15-6)

Status: (Passed) 2016-09-24 - Chaptered by Secretary of State - Chapter 581, Statutes of 2016. [AB2844 Detail]

Download: California-2015-AB2844-Amended.html

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BILL NUMBER: AB 2844	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 31, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  APRIL 11, 2016
	AMENDED IN ASSEMBLY  MARCH 28, 2016
	AMENDED IN ASSEMBLY  MARCH 17, 2016

INTRODUCED BY   Assembly Member Bloom
   (Principal coauthors: Assembly Members Levine, Medina, and
Nazarian)
   (Principal coauthors: Senators Allen, Block, Glazer, Hertzberg,
Jackson, and Wolk)
   (Coauthors: Assembly Members Campos, Dababneh, and Olsen)

                        FEBRUARY 19, 2016

   An act to add Chapter 2.6 (commencing with Section 2100) to Part 1
of Division 2 of the Public Contract Code, relating to public
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2844, as amended, Bloom. Public contracts:  California
Combating the  Boycott, Divestment, and Sanctions of
 Israel Act of 2016.   Recognized Sovereign
Nations or Peoples. 
   Existing law governs the procurement process for contracts of
specified public entities. Existing law prohibits a person that, at
the time of bid or proposal for a new contract or renewal of an
existing contract, engages in investment activities in Iran from
bidding on, submitting a proposal for, or entering into, a contract
with a public entity for goods or services of $1,000,000 or more.
   This  bill, with certain exceptions, would prohibit a
public entity, which includes state and local entities, from entering
into a contract, on or after January 1, 2017, with a company that is
engaging in discriminatory business practices in furtherance of a
boycott of any sovereign nation or peoples recognized by the
government of the United States, including, but not limited to, the
nation of Israel. The  bill would require the Attorney
General to develop, maintain, and post on its Internet Web site, a
list of companies that are engaging in discriminatory business
practices in furtherance of a boycott of any sovereign nation or
peoples recognized by the government of the United  States,
including, but not limited to, the nation of Israel. The bill would
prohibit a company that, at the time of bid or proposal for a new
contract or renewal of an existing contract, is identified on that
list from bidding on, submitting a proposal for, or entering into or
renewing a contract with a public entity to acquire or dispose of
goods, services, information technology, or construction for $10,000
or more. The bill would require a public entity to notify any company
that bids on or submits a proposal for a contract with the public
entity for $10,000 or more, that is determined to be engaging in
discriminatory business practices in furtherance of a boycott of any
sovereign nation or peoples recognized by the government of the
United States, including, but not limited to, the nation of Israel,
that the public entity is prohibited from contracting with the
company and to request that the company take substantial action to
cease its discriminatory business practices.   States.
The bill would also require the Attorney General, on or before
January 1, 2018, to provide an assessment to the Legislature of the
constitutionality of prohibiting a company on the list from entering
into a contract with a public entity.  
   By imposing additional duties with respect to local public
contracting, 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 these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
   
  SECTION 1.    This act shall be known and may be
cited as the California Combating the Boycott, Divestment, and
Sanctions of Israel Act of 2016.  
  SEC. 2.    The Legislature finds and declares the
following:
   (a) The United States and Israel have a unique bond based on their
shared, enduring values, which are reflected in the virtues and
principles of freedom and democracy, and have stood together as
allies since Israel was first formed as a nation.
   (b) California and Israel have established business partnerships
and trade relations with each other, and those partnerships have
helped enhance the agricultural, educational, energy, entertainment,
health, medical, scientific, and water policies in California,
Israel, and the United States.
   (c) On March 5, 2014, as the culmination of an effort started as
Assembly Bill 1032 of the 2009-10 Regular Session, the Governor of
California and the Prime Minister of Israel signed a memorandum of
understanding (MOU) for strategic partnerships for joint innovation,
exchanges, and cooperation between California and Israel.
   (d) In July 2015, the Legislature affirmed its support for the MOU
by passing Senate Concurrent Resolution 25, noting that participants
in the MOU had already expanded cooperation between Israel and
California in areas such as alternative energy, agriculture, business
innovation, and academia, and declaring that collaboration with
Israel will foster peace and democracy in the Middle East.
   (e) Boycotts of Israel by companies doing business in California
undermine the aforesaid express policy and purpose of encouraging
trade, business, and academic cooperation between California and
Israel. Therefore, it is in the best interests of the State of
California that it not contract with any company participating in a
boycott of Israel. 
   SEC. 3.   SECTION 1.   Chapter 2.6
(commencing with Section 2100) is added to Part 1 of Division 2 of
the Public Contract Code, to read:
      CHAPTER 2.6.   CALIFORNIA COMBATING THE 
BOYCOTT, DIVESTMENT, AND SANCTIONS OF  ISRAEL ACT OF 2016
  RECOGNIZED SOVEREIGN NATIONS OR PEOPLES 


   2100.  (a) Notwithstanding any other law, a public entity shall
not enter into a contract on or after January 1, 2017, to acquire or
dispose of goods, services, information technology, or for
construction if the contracting company is engaging in discriminatory
business practices in furtherance of a boycott of any sovereign
nation or peoples recognized by the government of the United States,
including, but not limited to, the nation of Israel.
   (b) A public entity shall notify any company that bids on or
submits a proposal for a contract with the public entity for ten
thousand dollars ($10,000) or more, that is determined to be engaging
in discriminatory business practices, as described in subdivision
(a), that the public entity is prohibited from contracting with the
company, and permit the company to respond to the notification. The
public entity shall request that the company take substantial action
to cease its discriminatory business practices no later than 90 days
from the date that the public entity notified the company under this
subdivision. If the public entity determines that a company has taken
substantial action to cease its discriminatory business practices
before the expiration of the 90-day period, that company shall not be
subject to subdivision (a).
   (c) A company that, at the time of bid or proposal for a new
contract or renewal of an existing contract, is identified on a list
created pursuant to subdivision (d), is ineligible to, and shall not,
bid on, submit a proposal for, or enter into or renew a contract
with a public entity to acquire or dispose of goods, services,
information technology, or construction for ten thousand dollars
($10,000) or more.
   (d)  (1) 
    2100.    (a)  The Attorney General shall
develop, maintain, and post on the Internet Web site of the Office of
the Attorney General a list of companies that have engaged in
discriminatory business practices in furtherance of a boycott of any
sovereign nation or peoples recognized by the government of the
United  States, including, but not limited to, the nation of
Israel.   States.  
    (2) (A) The Attorney General shall provide 90 days' written
notice of its intent to include the company on the list. The notice
shall inform the company that inclusion on the list would make the
company ineligible to bid on, submit a proposal for, or enter into or
renew a contract for goods, services, information technology, or
construction for ten thousand dollars ($10,000) or more with a public
entity. The notice shall specify that the company, if it ceases the
discriminatory business practice described in subdivision (a) and is
removed from the list, it may become eligible for a future contract,
or contract renewal, for goods, services, information technology, or
construction for ten thousand dollars ($10,000) or more with a public
entity.  
   (B) The Attorney General shall provide a company with an
opportunity to comment in writing to the Attorney General that it is
not engaging in a discriminatory business practice described in
subdivision (a). If the company demonstrates to the Attorney General
that the company is not engaging in a discriminatory business
practice described in subdivision (a), the company shall not be
included on the list and shall be eligible to enter into or renew a
contract for goods, services, information technology, or construction
for ten thousand dollars ($10,000) or more with a public entity.
 
   (3) If a company submits a comment in writing as authorized in
subparagraph (B) of paragraph (2) and the Attorney General refuses to
remove the company from the list, and the company continues to
believe that it is not engaging in a discriminatory practice a
described in subdivision (a), the company may seek appropriate relief
in superior court.  
   (b) (1) On or before January 1, 2018, the Attorney General shall
provide an assessment to the Legislature of the constitutionality of
prohibiting a company on the list developed pursuant to subdivision
(a) from entering into a contract with a public entity.  
   (2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2022, pursuant to Section
10231.5 of the Government Code.  
   (B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
 
   (e) 
    (c)  For the purposes of this section, the following
definitions shall apply:
   (1) (A)  "Boycott" means refusing to deal with, terminating
business activities with, or taking other actions that are intended
to penalize, inflict economic harm, or otherwise limit commercial
relations with the boycotted entity for reasons other than business,
investment, or commercial reasons.
   (B) "Boycott" does not include any of the following:
   (i) A decision based on business or economic reasons.
   (ii) Termination or prohibition of commercial activity within a
particular jurisdiction that is required by federal or state law.
   (2) "Company" means a sole proprietorship, organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company, or other entity or business association, including all
wholly owned subsidiaries, majority-owned subsidiaries, and parent
companies, that exists for the purpose of making profit.
   (3) "Discriminatory business practices" means business
arrangements that are prohibited by Sections 16721 and 16721.5 of the
Business and Professions Code.
   (4) "Public entity" shall have the same meaning as defined in
subdivision (a) of Section 5100. 
   (f) This section shall not apply to a contract if either of the
following apply:  
   (1) The total value of the contract is less than ten thousand
dollars ($10,000).  
   (2) The public entity makes a formal, written determination that
the goods, services, information technology, or other matters that
are the subject of the contract are necessary for the public entity
to perform its functions and that, absent this exemption, the public
entity would be unable to obtain said goods, services, information
technology, or other matters for which the contract is offered.
 
  SEC. 4.    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.