BILL NUMBER: AB 2508 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 19, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Bonilla
FEBRUARY 24, 2012
An act to 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. 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,
a state agency authorized to contract for public benefit programs
from contracting for call center 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 any
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.
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. 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 call center 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 any state agency authorized to enter
into contracts for public benefits programs shall not contract
for call center services for those public
benefit programs, with a contractor unless that contractor
certifies under penalty of perjury in his or her bid for the contract
that the contract, or any part thereof, and a
any 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.
(b) For purposes of this section:
(1) "Call center" means a building, facility, or operation where
customer or client services or assistance is provided by telephone,
fax, email, text, or web-based interaction.
(2) "Public benefit programs" means California Work Opportunity
and Responsibility to Kids (CalWORKs), CalFresh, Healthy Families,
and the California Healthcare Eligibility, Enrollment, and Retention
System.
(d)
(c) The contract shall provide that in the event a
contractor or subcontractor performs the contract or the subcontract
for call center services 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)
(d) (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)
(e) 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)
(f) 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.