Amended  IN  Senate  March 16, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 1321

Introduced by Senator Ochoa Bogh

February 18, 2022

An act to amend Section 3517.8 of add Sections 10301.1 and 10344.2 to the Government Public Contract Code, relating to state employment. public contracts.


LEGISLATIVE COUNSEL'S DIGEST


SB 1321, as amended, Ochoa Bogh. State labor relations. Public contracts: goods and services.
Existing law requires all contracts entered into by any state agency for, among other things, the acquisition of goods or for services to be approved by the Department of General Services. Existing law, except as specified, requires all contracts for the acquisition or lease of goods in an amount of $25,000, or a higher amount as established by the Director of General Services, to be made or entered into with the lowest responsible bidder meeting specifications. Existing law, except as specified, also requires, whenever the department contracts for goods in excess of $25,000, or a higher amount as established by the director, the department to advertise in the California State Contracts Register the availability of its solicitation, and to furnish interested suppliers, on request, with copies of the solicitation, as specified. Existing law requires the department to adopt, publish, and apply uniform standards of rating bidders, on the basis of questionnaires and required statements, with respect to contracts upon which each bidder is qualified to bid.
Existing law also requires all contracts entered into by any state agency for services to be rendered to the state to be approved by the department. Existing law, except as specified, also requires state agencies to secure at least 3 competitive bids for proposals for each contract, as specified. Existing law also authorizes contracts to be awarded under a procedure that makes use of a request for proposal that includes, among other things, the standards the agency will use in evaluating proposals, as specified.
This bill would require a state agency’s procedures for evaluating bids submitted under the provisions described above to address a need arising from a state of emergency declared by the Governor to include a preference for bidders whose headquarters are in California, whose principal place of business is in California, or whose headquarters are in the United States and who primarily manufacture their goods or provide their services in California.

Existing law, the Ralph C. Dills Act, grants state employees the right to form and join employee organizations for the purpose of representation on all matters of employer-employee relations. If the Governor and a recognized employee organization reach an impasse in negotiations for a new memorandum of understanding, existing law authorizes the state employer to implement any or all of its last, best, and final offer. If implementing a proposal in the last, best, and final offer would conflict with existing statutes or require the expenditure of funds, existing law requires the proposal to be submitted to the Legislature for approval and, if approved, provides that it is controlling without further legislative action.

This bill would make nonsubstantive changes to the above-described provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 10301.1 is added to the Public Contract Code, to read:

10301.1.
 A state agency’s procedures for evaluating bids submitted under this article to address a need arising from a state of emergency declared by the Governor pursuant to Section 8558 of the Government Code shall include a preference for each of the following:
(a) A bidder whose headquarters is in California.
(b) A bidder whose principal place of business is in California.
(c) A bidder whose headquarters is in the United States and who primarily manufactures their goods or provides their services in California.

SEC. 2.

 Section 10344.2 is added to the Public Contract Code, to read:

10344.2.
 A state agency’s procedures for evaluating bids submitted under this article to address a need arising from a state of emergency declared by the Governor pursuant to Section 8558 of the Government Code shall include a preference for each of the following:
(a) A bidder whose headquarters is in California.
(b) A bidder whose principal place of business is in California.
(c) A bidder whose headquarters is in the United States and who primarily manufactures their goods or provides their services in California.

SECTION 1.Section 3517.8 of the Government Code is amended to read:
3517.8.

(a)If a memorandum of understanding has expired, and the Governor and the recognized employee organization have not agreed to a new memorandum of understanding and have not reached an impasse in negotiations, subject to subdivision (b), the parties to the agreement shall continue to give effect to the expired memorandum of understanding, including, but not limited to, all provisions that supersede existing law, any arbitration provisions, any no strike provisions, any agreements regarding matters covered in the Fair Labor Standards Act of 1938 (29 U.S.C. Sec. 201 et seq.), and any provisions covering fair share fee deduction consistent with Section 3515.7.

(b)If the Governor and the recognized employee organization reach an impasse in negotiations for a new memorandum of understanding, the state employer may implement any or all of its last, best, and final offer. A proposal in the state employer’s last, best, and final offer that, if implemented, would conflict with existing statutes or require the expenditure of funds shall be presented to the Legislature for approval and, if approved, shall be controlling without further legislative action, notwithstanding Sections 3517.5, 3517.6, and 3517.7. Implementation of the last, best, and final offer does not relieve the parties of the obligation to bargain in good faith and reach an agreement on a memorandum of understanding if circumstances change, and does not waive rights that the recognized employee organization has under this chapter.