Bill Text: CA AB1552 | 2015-2016 | Regular Session | Introduced

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Bill Title: Public contracts: state and local agencies: businesses engaged in boycott.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2016-11-30 - Died at Desk. [AB1552 Detail]

Download: California-2015-AB1552-Introduced.html

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BILL NUMBER: AB 1552	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Travis Allen

                        JANUARY 4, 2016

   An act to add Section 7204 of the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1552, as introduced, Travis Allen. Public contracts: state and
local agencies: businesses engaged in boycott.
   Existing law requires that contracts between private parties and
public entities, defined to include specified local entities, contain
various specified provisions.
   This bill would, with certain exceptions, prohibit a public entity
from entering into a contract to acquire or dispose of goods,
services, information technology, or construction unless the contract
includes a representation that the contractor is not currently
engaged in, and an agreement that the contractor will not during the
duration of the contract engage in, the boycott, as defined, of a
person or an entity based in or doing business with a jurisdiction
with which the state can enjoy open trade, defined as a state that is
a member of the World Trade Organization. The bill would specify
that these provisions constitute a matter of statewide concern.
   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.


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

  SECTION 1.  Section 7204 is added to the Public Contract Code, to
read:
   7204.  (a) Notwithstanding any other law, and except as provided
in subdivision (c), a public entity shall not enter into a contract
to acquire or dispose of goods, services, information technology, or
construction unless the contract includes a representation that the
contractor is not currently engaged in, and an agreement that the
contractor will not during the duration of the contract engage in,
the boycott of a person or entity based in or doing business with a
jurisdiction with which the state can enjoy open trade.
   (b) For the purposes of this section, the following definitions
shall apply:
   (1) (A) "Boycott" means to blacklist, divest from, or otherwise
refuse to deal with a person or entity when the action is based on
the race, color, religion, gender, or nationality of the targeted
person or entity.
   (B) "Boycott" does not include any of the following:
   (i) A decision based on business or economic reasons.
   (ii) A boycott against a public entity of a foreign state that is
applied in a nondiscriminatory manner.
   (iii) A boycott or divestment of a particular jurisdiction that is
authorized or required by federal or state law.
   (2) "Jurisdiction with which the state can enjoy open trade" means
a state that is a member of the World Trade Organization.
   (c) This section shall not apply to a contract if any of the
following apply:
   (1) The contract fails to meet the requirements of subdivision (a)
but the contractor offers to provide the goods, services,
information technology, or construction at a price that is at least
20 percent lower than the price offered by the next lowest bidder.
   (2) The total potential value of the contract is less than ten
thousand dollars ($10,000).
   (3) The contract was entered into prior to January 1, 2017.
   (d) Notwithstanding any other law, including, but not limited to,
Section 1100.7, the Legislature finds and declares that this section
constitutes a matter of statewide concern, and shall apply to charter
cities and charter counties. The provisions of this section shall
supersede any inconsistent provisions in the charter of any city,
county, or city and county.
  SEC. 2.  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.