BILL NUMBER: AB 185	CHAPTERED
	BILL TEXT

	CHAPTER  412
	FILED WITH SECRETARY OF STATE  OCTOBER 2, 2001
	APPROVED BY GOVERNOR  OCTOBER 1, 2001
	PASSED THE ASSEMBLY  AUGUST 30, 2001
	PASSED THE SENATE  AUGUST 27, 2001
	AMENDED IN SENATE  AUGUST 22, 2001
	AMENDED IN SENATE  JULY 20, 2001

INTRODUCED BY   Assembly Member Wright

                        FEBRUARY 7, 2001

   An act to amend Section 7118 of the Government Code, relating to
economic development.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 185, Wright.   Local agency military base recovery areas.
   (1) The Local Agency Military Base Recovery Area Act provides,
among other things, that whenever the state prepares an invitation
for bid for a contract for goods in excess of $100,000, with a
specified exception, the state shall award a 5% preference to
California-based companies who certify under penalty of perjury that
no less than 50% of the labor required to perform the contract shall
be accomplished at a worksite or worksites located in a local agency
military base recovery area.  In evaluating proposals for contracts
for services in excess of $100,000, with a specified exception, the
state is required to award a 5% preference on the price submitted by
California-based companies who certify under penalty of perjury that
they shall perform the contract at a worksite or worksites located in
a local agency military base recovery area.
   This bill instead would provide that whenever the state prepares a
solicitation for a contract for goods in excess of $100,000, with
that specified exception, the state shall award the 5% 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% of the hours shall be
accomplished at an identified worksite or worksites located in a
local agency military base recovery area.  It would also provide
that, in evaluating proposals for contracts for services in excess of
$100,000, with that specified exception, the state shall award a 5%
preference on the price submitted by California-based companies who
demonstrate and certify under penalty of perjury that not less than
90% 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.
   By expanding the scope of a crime, this bill would impose a
state-mandated local program.
   (2) The act also provides that where a bidder complies with the
provisions set forth above, the state shall award a 1% preference for
bidders who shall agree to hire persons living within a local agency
military base recovery area equal to 5 to 9% of its workforce during
the period of contract performance.
   This bill instead would provide that the state shall award a 1%
preference under these provisions for bidders who certify under
penalty of perjury to hire persons meeting these criteria.
   By expanding the definition of a crime, this bill would impose a
state-mandated local program.
   (3) The act further provides that a business that requests and is
given the preference provided for under these provisions 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, among other things, be
ineligible to transact any business with the state for a period of
not less than 3 months and not more than 24 months.
   This bill instead would state that the business would be
ineligible to directly or indirectly transact any business with the
state for this period.
  (4) 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.


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


  SECTION 1.  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 three months and not
more than 24 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.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB 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 XIIIB of the California Constitution.