Bill Text: CA AB2508 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Public contracts: public health agencies.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 824, Statutes of 2012. [AB2508 Detail]

Download: California-2011-AB2508-Amended.html

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BILL NUMBER: AB 2508	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Bonilla

                        FEBRUARY 24, 2012

   An act to  amend Section 1320 of the Streets and Highways
Code, relating to county roads.   add Chapter 3.7
(commencing with Section 12140) to Part 2 of Division 2 of the Public
Contract   Code, relating to public contracts. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2508, as amended, Bonilla.  County roads: summer
bridges.   Public contracts: public health agencies.
 
   Existing law requires a state agency to comply with specified
procedures in awarding agency contracts. 
   This bill would also prohibit the California Health and Human
Services Agency, the executive board of the California Health Benefit
Exchange, a department under their purview, or a local government
expending funds provided to those agencies, from contracting for
services with a contractor or subcontractor unless that contractor or
subcontractor certifies under penalty of perjury in his or her bid
for the contract that the contract, and a subcontract performed under
that contract, will be performed solely with workers employed in
California. This bill would authorize these agencies to waive this
requirement, with the consent of the Controller, if certain
conditions are met. This bill would also require the contract to
include a clause for termination for noncompliance and specified
penalties, if the contractor or subcontractor performs the contract
or the subcontract with workers outside of California during the life
of the contract. This bill would also specify that these provisions
do not apply to an existing contract, as provided, or to a contract
if the refusal to award that contract would violate the specific
terms of federal trade treaties or bilateral or regional free trade
agreements, as specified.  
   By requiring contractors and subcontractors to make certifications
under penalty of perjury, this bill would create a new crime and
thereby 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 no reimbursement is required by this
act for a specified reason.  
   Existing law authorizes a county board of supervisors to
construct, operate, manage, or maintain summer bridges, with
expenditures for those bridges to be paid out of the county general
fund.  
   This bill would make nonsubstantive changes to these provisions.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


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

   SECTION 1.    The Legislature finds and declares the
following:  
   (a) The federal and state economies are recovering from the great
recession and California still has a high unemployment rate. Millions
of Californians are not working or working less than they want and
need full-time employment. California continues to allow state public
benefit contracts to be awarded to contractors that perform the work
outside the United States.  
   (b) By contracting and subcontracting outside of the country, jobs
are displaced in the United States and in California, and taxpayer
dollars are used to create jobs in foreign countries. State tax
revenues should be used to create jobs in the United States and in
California, especially when the taxpayer dollars are designated for
programs meant to create jobs and address problems associated with
joblessness. 
   SEC. 2.    Chapter 3.7 (commencing with Section
12140) is added to Part 2 of Division 2 of the   Public
Contract Code   , to read:  
      CHAPTER 3.7.  PROHIBITION OF THE OFFSHORING OF STATE PUBLIC
BENEFITS CONTRACTS


   12140.  (a) Notwithstanding any other law, the California Health
and Human Services Agency, the executive board of the California
Health Benefit Exchange, departments under the purview of those
agencies, or a local government expending funds provided by those
agencies shall not contract for services with a contractor unless
that contractor certifies under penalty of perjury in his or her bid
for the contract that the contract, and a subcontract performed under
that contract, will be performed solely with workers employed in
California.
   (b) For purposes of this section, "local government" means a
county, city, city and county, including a charter city or county, a
special district, or any other local or regional government entity.
   (c) Notwithstanding any other law, state funds for employment
training shall not be allocated or expended to train employees
located in foreign countries.
   (d) The contract shall provide that in the event a contractor or
subcontractor performs the contract or the subcontract with workers
outside of California during the life of the contract, the contract
shall be terminated for noncompliance and the contractor or
subcontractor shall pay a penalty to the state agency or local
government in an amount equal to the amount paid by the state agency
or local government for the percentage of work that was performed
with workers outside of California.
   (e) (1) A state agency or local government may waive the
requirements of subdivision (a) for a particular contract, for a
period not to exceed one year per waiver, if that state agency or
local government submits a written finding to the Controller, and the
Controller does not reject that finding within 30 days of receipt,
that either of the following are true:
   (A) The contract is necessary to respond to an emergency, as
determined by the state agency or local government, for all of the
following reasons:
   (i) The ability of the state agency or local government to provide
essential services would be adversely affected if the contract is
not performed.
   (ii) The public health, safety, and welfare would be endangered if
the contract is not performed.
   (iii) A contractor or subcontractor that has the ability to
perform the contract solely with workers within California is not
immediately available to perform the contract.
   (B) The contract is necessary to provide a unique service, as
determined by the state agency or local government, for both of the
following reasons:
   (i) The state agency or local government deems as mandatory the
particular service to be performed under the contract.
   (ii) Workers employed in California cannot adequately perform the
unique service to be performed under the contract.
   (2) A state agency or local government that seeks a waiver under
paragraph (1) shall, at the same time that the entity provides the
written finding to the Controller, provide a copy of that written
finding to the Assembly Committee on Business, Professions, and
Consumer Protection, the Assembly Committee on Budget, the Senate
Committee on Governmental Organization, and the Senate Committee on
Budget and Fiscal Review.
   (3) If the Controller rejects a written finding while the contract
is being performed or after the contract has been performed, the
contractor or subcontractor shall pay a penalty to the state agency
or local government in an amount equal to the amount paid by the
state agency or local government for the percentage of work that was
performed with workers outside of California.
   (f) This section shall not apply to a contract if the refusal to
award that contract, on the basis that the contractor or
subcontractor does not certify under penalty of perjury that the
contract and any subcontract performed under that contract will be
performed solely with workers within California, would violate the
specific terms of the Agreement on Government Procurement of the
World Trade Organization or any other bilateral or regional free
trade agreement that California has consented to.
   (g) This section shall not apply to a contract, or subcontract,
currently in place, if it would result in a violation of the terms of
the contract, but upon expiration of that contract, these provisions
shall be added before a new contract can be executed or renewed.

   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 1320 of the Streets and
Highways Code is amended to read:
   1320.  A board of supervisors may construct, operate, manage, or
maintain summer bridges under rules and regulations, and at the times
and places, that it considers necessary. The board shall pay for
necessary bridge expenditures from the county general fund.