BILL NUMBER: SB 555	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 29, 2011

INTRODUCED BY   Senator Hancock

                        FEBRUARY 17, 2011

    An act to add Article 7 (commencing with Section 10390)
to Chapter 2 of Part 2 of Division 2 of the Public Contract Code,
relating to public contracts.   An act to amend Sections
53313.5 and 53324 of, and to ad   d Sections 53328.1,
53329.6, 53355.5, and 53355.7 to, the Government Code, relating to
local government. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 555, as amended, Hancock.  Public contracts: state: bid
preferences.   Local government: community facilities
districts.  
   (1) The Mello-Roos Community Facilities Act of 1982 authorizes a
community facilities district to finance the purchase, construction,
expansion, improvement, or rehabilitation of certain facilities,
including, among others, child care facilities, undergrounding of
water transmission and distribution facilities, and the cleanup of
hazardous materials.  
   This bill would also authorize a community facilities district to
finance and refinance the acquisition, installation, and improvement
of energy efficiency, water conservation, and renewable energy
improvements to or on real property and in buildings, as specified.
 
   (2) Existing law specifies the requirements for the establishment
of a community facilities district, including, among other things, a
petition, a hearing, the establishment of the boundaries of the
community facilities district, and an election on the question of
establishment.  
   This bill would authorize a separate procedure for establishing a
community facilities district where the district initially consists
solely of territory proposed for annexation to the community
facilities district in the future, as specified, and would provide an
alternate procedure for incurring bonded indebtedness for community
facility districts established in this manner.  
   This bill would provide that the refusal by a person to undertake
or cause to be undertaken an act relating to community facilities
districts, including formation of, or annexation to, a community
facilities district, voting to levy a special tax, or authorizing
another to vote to levy a special tax, shall not be a factor when
considering the approval of a legislative or adjudicative act, or
both, including, but not limited to , the planning use, or
development of real property or any change in governmental
organization or reorganization if the purpose of the community
facilities district is to finance energy efficiency, water
conservation, and renewable energy improvements.  
   Existing law imposes various requirements with respect to
contracting by state agencies.  
   This bill would require a state agency that accepts bids or
proposals for specified contracts for goods or services exceeding
$1,000,000, or for the distribution of funds pursuant to the federal
American Recovery and Reinvestment Act of 2009, on or before July 1,
2017, to provide a 5% preference, as provided, to a business that
directly provides the goods or services when 90% of the employees of
the business performing work on the contract reside in the state.
This bill would state that these bidding preferences are not
applicable to contracts that are subject to the State Contract Act or
to contracts for specified professional services. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


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

   SECTION 1.    Section 53313.5 of the  
Government Code   is amended to read: 
   53313.5.  A community facilities district may also finance the
purchase, construction, expansion, improvement, or rehabilitation of
any real or other tangible property with an estimated useful life of
five years or longer or may finance planning and design work that is
directly related to the purchase, construction, expansion, or
rehabilitation of any real or tangible property. The facilities need
not be physically located within the district. A district may not
lease out facilities that it has financed except pursuant to a lease
agreement or annexation agreement entered into prior to January 1,
1988. A district may only finance the purchase of facilities whose
construction has been completed, as determined by the legislative
body, before the resolution of formation to establish the district is
adopted pursuant to Section 53325.1, except that a district may
finance the purchase of facilities completed after the adoption of
the resolution of formation if the facility was constructed as if it
had been constructed under the direction and supervision, or under
the authority of, the local agency that will own or operate the
facility. For example, a community facilities district may finance
facilities, including, but not limited to, the following:
   (a) Local park, recreation, parkway, and open-space facilities.
   (b) Elementary and secondary schoolsites and structures provided
that the facilities meet the building area and cost standards
established by the State Allocation Board.
   (c) Libraries.
   (d) Child care facilities, including costs of insuring the
facilities against loss, liability insurance in connection with the
operation of the facility, and other insurance costs relating to the
operation of the facilities, but excluding all other operational
costs. However, the proceeds of bonds issued pursuant to this chapter
shall not be used to pay these insurance costs.
   (e) The district may also finance the construction or
undergrounding of water transmission and distribution facilities,
natural gas pipeline facilities, telephone lines, facilities for the
transmission or distribution of electrical energy, and cable
television lines to provide access to those services to customers who
do not have access to those services or to mitigate existing visual
blight. The district may enter into an agreement with a public
utility to utilize those facilities to provide a particular service
and for the conveyance of those facilities to the public utility.
"Public utility" shall include all utilities, whether public and
regulated by the Public Utilities Commission, or municipal. If the
facilities are conveyed to the public utility, the agreement shall
provide that the cost or a portion of the cost of the facilities that
are the responsibility of the utility shall be refunded by the
public utility to the district or improvement area thereof, to the
extent that refunds are applicable pursuant to (1) the Public
Utilities Code or rules of the Public Utilities Commission, as to
utilities regulated by the commission, or (2) other laws regulating
public utilities. Any reimbursement made to the district shall be
utilized to reduce or minimize the special tax levied within the
district or improvement area, or to construct or acquire additional
facilities within the district or improvement area, as specified in
the resolution of formation.
   (f) The district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for flood and storm
protection services, including, but not limited to, storm drainage
and treatment systems and sandstorm protection systems.
   (g) The district may also pay in full all amounts necessary to
eliminate any fixed special assessment liens or to pay, repay, or
defease any obligation to pay or any indebtedness secured by any tax,
fee, charge, or assessment levied within the area of a community
facilities district or may pay debt service on that indebtedness.
When the amount financed by the district is to pay a tax, fee,
charge, or assessment imposed by a public agency other than the one
conducting the proceedings, and if the amount provided to the other
public agency will not be entirely used to pay off or prepay an
assessment lien or special tax obligation pursuant to the property
owner's legal right to do so, the written consent of the other public
agency is required. In addition, tax revenues of a district may be
used to make lease or debt service payments on any lease,
lease-purchase contract, or certificate of participation used to
finance  authorized district  facilities 
authorized to be financed by the district  .
   (h) Any other governmental facilities that the legislative body
creating the community facilities district is authorized by law to
contribute revenue to, or construct, own, or operate. However, the
district shall not operate or maintain or, except as otherwise
provided in subdivisions (e) and (k), have any ownership interest in
any facilities for the transmission or distribution of natural gas,
telephone service, or electrical energy.
   (i) (1) A district may also pay for the following:
   (A) Work deemed necessary to bring buildings or real property,
including privately owned buildings or real property, into compliance
with seismic safety standards or regulations. Only work certified as
necessary to comply with seismic safety standards or regulations by
local building officials may be financed. No project involving the
dismantling of an existing building and its replacement by a new
building, nor the construction of a new or substantially new building
may be financed pursuant to this subparagraph. Work on qualified
historical buildings or structures shall be done in accordance with
the State Historical Building Code (Part 2.7 (commencing with Section
18950) of Division 13 of the Health and Safety Code).
   (B) In addition, within any county or area designated by the
President of the United States or by the Governor as a disaster area
or for which the Governor has proclaimed the existence of a state of
emergency because of earthquake damage, a district may also pay for
any work deemed necessary to repair any damage to real property
directly or indirectly caused by the occurrence of an earthquake
cited in the President's or the Governor's designation or
proclamation, or by aftershocks associated with that earthquake,
including work to reconstruct, repair, shore up, or replace any
building damaged or destroyed by the earthquake, and specifically
including, but not limited to, work on any building damaged or
destroyed in the Loma Prieta earthquake that occurred on October 17,
1989, or by its aftershocks. Work may be financed pursuant to this
subparagraph only on property or buildings identified in a resolution
of intention to establish a community facilities district adopted
within seven years of the date on which the county or area is
designated as a disaster area by the President or by the Governor or
on which the Governor proclaims for the area the existence of a state
of emergency.
   (2) Work on privately owned property, including reconstruction or
replacement of privately owned buildings pursuant to subparagraph (B)
of paragraph (1), may only be financed by a tax levy if all of the
votes cast on the question of levying the tax, vote in favor of
levying the tax, or with the prior written consent to the tax of the
owners of all property that may be subject to the tax, in that case
the prior written consent shall be deemed to constitute a vote in
favor of the tax and any associated bond issue. Any district created
to finance seismic safety work on privately owned buildings,
including repair, reconstruction, or replacement of privately owned
buildings pursuant to this subdivision, shall consist only of lots or
parcels that the legislative body finds have buildings that were
damaged or destroyed by the earthquake cited pursuant to subparagraph
(B) of paragraph (1) or by the aftershocks of that earthquake.
   (j) A district may also pay for the following:
   (1) Work deemed necessary to repair and abate damage caused to
privately owned buildings and structures by soil deterioration. "Soil
deterioration" means a chemical reaction by soils that causes
structural damage or defects in construction materials including
concrete, steel, and ductile or cast iron. Only work certified as
necessary by local building officials may be financed. No project
involving the dismantling of an existing building or structure and
its replacement by a new building or structure, nor the construction
of a new or substantially new building or structure may be financed
pursuant to this  subparagraph  paragraph 
.
   (2) Work on privately owned buildings and structures pursuant to
this subdivision, including reconstruction, repair, and abatement of
damage caused by soil deterioration, may only be financed by a tax
levy if all of the votes cast on the question of levying the tax vote
in favor of levying the tax. Any district created to finance the
work on privately owned buildings or structures, including
reconstruction, repair, and abatement of damage caused by soil
deterioration, shall consist only of lots or parcels on which the
legislative body finds that the buildings or structures to be worked
on pursuant to this subdivision suffer from soil deterioration.
   (k) A district may also finance the acquisition, improvement,
rehabilitation, or maintenance of any real or other tangible
property, whether privately or publicly owned, for the purposes of
removal or remedial action for the cleanup of any hazardous substance
released or threatened to be released into the environment. As used
in this subdivision,  the terms  "remedial action"
and "removal" shall have the meaning set forth in Sections 25322 and
25323, respectively, of the Health and Safety Code, and  the
term  "hazardous substance" shall have the meaning set forth
in Section 25281 of the Health and Safety Code. 
   (l) A district may also finance and refinance the acquisition,
installation, and improvement of energy efficiency, water
conservation, and renewable energy improvements that are affixed, as
specified in Section 660 of the Civil Code, to or on real property
and in buildings, whether the real property or buildings are
privately or publicly owned. Energy efficiency, water conservation,
and renewable energy improvements financed by a district may only be
installed on a privately owned building and on privately owned real
property with the prior written consent of the owner or owners of the
building or real property. This chapter shall not be used to finance
installation of energy efficiency, water conservation, and renewable
energy improvements on a privately owned building or on privately
owned real property in connection with the initial construction of a
residential building unless the initial construction is undertaken by
the intended owner or occupant.  
   (m) Any improvement on private property authorized to be financed
by this section shall constitute a "public facility" for purposes of
this chapter and a "public improvement" for purposes of Part 1
(commencing with Section 3100) and Part 2 (commencing with Section
3110) of Division 4.5 of the Streets and Highways Code, whether the
improvement is owned by a private entity, if the legislative body has
determined that the improvement provides a public benefit, or the
improvement is owned by a public agency. 
   SEC. 2.    Section 53324 of the   Government
Code   is amended to read: 
   53324.   (a)    If 50 percent or more of the
registered voters, or six registered voters, whichever is more,
residing within the territory proposed to be included in the
district, or the owners of one-half or more of the area of the land
in the territory proposed to be included in the district and not
exempt from the special tax, file written protests against the
establishment of the district, and protests are not withdrawn so as
to reduce the value of the protests to less than a majority, no
further proceedings to create the specified community facilities
district or to authorize the specified special tax shall be taken for
a period of one year from the date of the decision of the
legislative body.
   If the majority protests of the registered voters or of the
landowners are only against the furnishing of a specified type or
types of facilities or services within the district, or against
levying a specified special tax, those types of facilities or
services or the specified special tax shall be eliminated from the
resolution of formation. 
   (b) This section does not apply to the formation of a district
pursuant to Section 53328.1. 
   SEC. 3.    Section 53328.1 is added to the  
Government Code   , to read:  
   53328.1.  (a) As an alternate and independent procedure for
forming a community facilities district, the legislative body may
form a community facilities district that initially consists solely
of territory proposed for annexation to the community facilities
district in the future, with the condition that a parcel or parcels
within that territory may be annexed to the community facilities
district and subjected to the special tax only with the unanimous
approval of the owner or owners of the parcel or parcels at the time
that the parcel or parcels are annexed. In that case, the legislative
body shall follow the procedures set forth in this article for the
formation of a community facilities district, with the following
exceptions:
   (1) The legislative body shall not be obligated to specify the
rate or rates of special tax in the resolution of intention or the
resolution of formation, provided that both of the following are met:

   (A) The resolution of intention and the resolution of formation
include a statement that the rate shall be established in an amount
required to finance or refinance the authorized improvements and to
pay the district's administrative expenses.
   (B) The maximum rate of special tax applicable to a parcel or
parcels shall be specified in the unanimous approval described in
this section relating to the parcel or parcels.
   (2) In lieu of approval pursuant to an election held in accordance
with the procedures set forth in Sections 53326, 53327, 53327.5, and
53328, the appropriations limit for the community facilities
district, the applicable rate of the special tax and the method of
apportionment and manner of collection of that tax, and the
authorization to incur bonded indebtedness for the community
facilities district shall be specified and be approved by the
unanimous approval of the owner or owners of each parcel or parcels
at the time that the parcel or parcels are annexed to the community
facilities district. No additional hearings or procedures are
required, and the unanimous approval shall be deemed to constitute a
unanimous vote in favor of the appropriations limit for the community
facilities district, the authorization to levy the special tax on
the parcel or parcels, and the authorization to incur bonded
indebtedness for the community facilities district.
   (3) Notwithstanding Section 53324, this paragraph establishes the
applicable protest provisions in the event a local agency forms a
community facilities district pursuant to the procedures set forth in
this section. If 50 percent or more of the registered voters, or six
registered voters, whichever is more, residing within the territory
proposed to be annexed to the community facilities district in the
future, or if the owners of one-half or more of the area of land
proposed to be annexed in the future and not exempt from the special
tax, file written protests against establishment of the community
facilities district, and protests are not withdrawn so as to reduce
the protests to less than a majority, no further proceedings to form
the community facilities district shall be undertaken for a period of
one year from the date of decision of the legislative body on the
issues discussed at the hearing. If the majority protests of the
registered voters or of the landowners are only against the
furnishing of a specified type or types of facilities or services
within the district, or against levying a specified special tax,
those types of facilities or services or the specified special tax
shall be eliminated from the resolution of formation.
   (4) The legislative body shall not record a notice of special tax
lien against any parcel or parcels in the community facilities
district until the owner or owners of the parcel or parcels have
given their unanimous approval of the parcel's or parcels' annexation
to the community facilities district, at which time the notice of
special tax lien shall be recorded against the parcel or parcels as
set forth in Section 53328.3.
   (b) Notwithstanding the provisions of Section 53340, after
adoption of the resolution of formation for a community facilities
district described in subdivision (a), the legislative body may, by
ordinance, provide for the levy of the special taxes on parcels that
will annex to the community facilities district at the rate or rates
to be approved unanimously by the owner or owners of each parcel or
parcels to be annexed to the community facilities district and for
apportionment and collection of the special taxes in the manner
specified in the resolution of formation. No further ordinance shall
be required even though no parcels may then have annexed to the
community facilities district.
   (c) The local agency may bring an action to determine the validity
of any special taxes levied pursuant to this chapter and authorized
pursuant to the procedures set forth in this section pursuant to
Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the
Code of Civil Procedure. Notwithstanding Section 53359, if an action
is brought by an interested person pursuant to Section 863 of the
Code of Civil Procedure to determine the validity of any special
taxes levied against a parcel pursuant to this chapter and authorized
pursuant to the procedures set forth in this section, the action
shall be brought pursuant to Chapter 9 (commencing with Section 860)
of Title 10 of Part 2 of the Code of Civil Procedure, but shall,
notwithstanding the time limits specified in Section 860 of the Code
of Civil Procedure, be commenced within 15 days after the date on
which the notice of special tax lien is recorded against the parcel.
Any appeal from a judgment in any action or proceeding described in
this subdivision shall be commenced within 30 days after entry of
judgment.
   (d) A community facilities district formed pursuant to this
section may only finance facilities pursuant to subdivision (l) of
Section 53313.5. 
   SEC. 4.    Section 53329.6 is added to the  
Government Code   , to read:  
   53329.6.  In order to reduce the procedural burdens on local
agencies, this chapter establishes certain procedures by which one or
more property owners may vote in favor of special taxes, bonded
indebtedness, an appropriations limit, and annexation to a district
by unanimous approval. The Legislature hereby finds and declares that
any unanimous approval constitutes the vote of the qualified elector
in favor of the matters addressed in the unanimous approval for
purposes of the California Constitution, including, but not limited
to, Articles XIII A and XIII C. 
   SEC. 5.   Section 53355.5 is added to the  
Government Code   , to read:  
   53355.5.  (a) As an alternate and independent procedure for
conducting an election on the proposition to authorize bonded
indebtedness for a community facilities district formed pursuant to
Section 53328.1, and in lieu of the procedure set forth in Sections
53353.5, 53354, and 53355, the proposition to authorize bonded
indebtedness may be approved by the owner or owners of a parcel or
parcels of property at the time that the parcel or parcels are
annexed to the community facilities district pursuant to the
unanimous approval described in Section 53328.1. In that event, no
additional hearings or procedures shall be required, and unanimous
approval shall be deemed to constitute a unanimous vote in favor of
the proposition.
   (b) The local agency may bring an action, pursuant to Chapter 9
(commencing with Section 860) of Title 10 of Part 2 of the Code of
Civil Procedure, to determine the validity of any bonds issued
pursuant to this chapter and authorized pursuant to the procedures
set forth in this section. Notwithstanding the provisions of Section
53359, if an action is brought by an interested person pursuant to
Section 863 of the Code of Civil Procedure to determine the validity
of any bonds issued pursuant to this chapter and authorized pursuant
to the procedures set forth in this section, the action shall be
brought pursuant to Chapter 9 (commencing with Section 860) of Title
10 of Part 2 of the Code of Civil Procedure but shall,
notwithstanding the time limits specified in Section 860 of the Code
of Civil Procedure, be commenced within 30 days after the effective
date of the resolution described in Section 53351. Any appeal from a
judgment in any action or proceeding described in this subdivision
shall be commenced within 30 days after entry of judgment. 
   SEC. 6.    Section 53355.7 is added to the  
Government Code   , to read:  
   53355.7.  The refusal by a person to undertake or cause to be
undertaken an act relating to Chapter 2.5 (commencing with Section
53311) of Part 1 of Division 2 of Title 5, including formation of, or
annexation to, a community facilities district, voting to levy a
special tax, or authorizing another to vote to levy a special tax,
shall not be a factor when considering the approval of a legislative
or adjudicative act, or both, including, but not limited to, the
planning, use, or development of real property or any change in
governmental organization or reorganization, as defined by Section
56021 or 56037, if the purpose of the community facilities district
is to finance energy efficiency, water conservation, and renewable
energy improvements. 
   SEC. 7.    The Legislature finds and declares that
global warming poses a serious threat to the economic well-being,
public health, natural resources, and the environment of the state,
and that action taken by the state to reduce emissions of greenhouse
gases will have far-reaching effects by encouraging other states, the
federal government, and other countries to act. California has a
tradition of environmental leadership and wishes to be at the
forefront of national and international efforts to reduce emissions
of greenhouse gases. In furtherance of these efforts to reduce
emissions of greenhouse gases, the Legislature declares that a public
purpose will be served by providing the legislative body of a local
agency with the authority to use special taxes pursuant to the
Mello-Roos Community Facilities Act of 1982 to finance the
installation of energy efficiency and renewable energy improvements
that are affixed, as specified in Section 660 of the Civil Code, to
residential, commercial, industrial, or other property.  
   The Legislature further finds and declares that the growing
population, climate change, and the need to protect and grow
California's economy while protecting and restoring our fish and
wildlife habitats make it essential that the state manage its water
resources as efficiently as possible. Section 2 of Article X of the
California Constitution declares: "It is hereby declared that because
of the conditions prevailing in this State the general welfare
requires that the water resources of the State be put to beneficial
use to the fullest extent of which they are capable, and that the
waste or unreasonable use or unreasonable method of use of water be
prevented, and that the conservation of those waters is to be
exercised with a view to the reasonable and beneficial use thereof in
the interest of the people and for the public welfare." Former
Governor Schwarzenegger, in his Executive Order S-06-08, proclaimed a
condition of statewide drought and ordered implementation of
additional actions to promote water conservation which will
contribute to achieving long-term reductions in water use. Former
Governor Schwarzenegger called for a 20-percent per capita reduction
in urban water use statewide by the year 2020. Reduced water use
through conservation provides significant energy and environmental
benefits, and can help protect water quality, improve streamflows,
and reduce greenhouse gas emissions. There are many water
conservation practices that produce
                    significant energy and other resource savings
that should be encouraged as a matter of state policy. The
Legislature also declares that a public purpose will be served by
providing the legislative body of a local agency with the authority
to use special taxes pursuant to the Mello-Roos Community Facilities
Act of 1982 to finance the installation of water conservation
improvements that are attached to residential, commercial,
industrial, or other property.  
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) California faces the most severe economic downturn since the
Great Depression. Over two million Californians are out of work and
California's unemployment rate is one of the highest in the nation.
   (b) At a time of scarce state resources, state contracts should be
used to stimulate our state economy and put people back to work.
   (c) The purpose of this act is to revive local communities by
creating new jobs and stimulating the economy.  
  SEC. 2.    Article 7 (commencing with Section
10390) is added to Chapter 2 of Part 2 of Division 2 of the Public
Contract Code, to read:

      Article 7.  Preference for Businesses that Employ State
Residents


   10390.  (a) On or before July 1, 2017, any state agency that
accepts bids or proposals for a contract for goods or services
exceeding one million dollars ($1,000,000) shall provide a preference
of 5 percent to a business that would directly provide the goods or
services and certifies that at least 90 percent of the business's
employees performing work on the contract are residents of this
state. The preference shall be provided as follows:
   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a business that
certifies that at least 90 percent of the business's employees
performing work on the contract are residents of this state shall be
5 percent of the bid price of the lowest responsible bidder meeting
specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
business that certifies that at least 90 percent of the business's
employees performing work on the contract are residents of this state
shall be 5 percent of the total score of the highest responsible
bidder.
   (3) The preferences awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a business shall submit all
required substantiating documentation and information needed by the
state agency to determine if the business is eligible for the
preference.
   (b) On or before July 1, 2013, the Department of General Services
shall establish a process to verify that a business meets the
criteria for the 5-percent preference.
   10391.  (a) On or before July 1, 2017, any state agency that
accepts bids or proposals for the distribution of funds pursuant to
the federal American Recovery and Reinvestment Act of 2009 (Public
Law 111-5) shall provide a preference of 5 percent of the bid price
or total score to a business that certifies that 90 percent of the
business's employees performing work on the qualifying project are
residents of this state. The preference shall be provided as follows:

   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a business that
certifies that at least 90 percent of the business's employees
performing work on the contract are residents of this state shall be
5 percent of the bid price of the lowest responsible bidder meeting
specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
business that certifies that at least 90 percent of the business's
employees performing work on the contract are residents of this state
shall be 5 percent of the total score of the highest responsible
bidder.
   (3) The preferences awarded pursuant to paragraph (1) or (2) shall
not be awarded to a noncompliant bidder and shall not be used to
satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent preference
authorized pursuant to this section, a business shall submit all
required substantiating documentation and information needed by the
state agency to determine if the business is eligible for the
preference.
   (b) On or before July 1, 2013, using existing resources, the
Department of General Services shall establish a process to verify
that a business meets the criteria for the 5-percent preference.
   (c) This section shall be implemented only to the extent permitted
by the American Recovery and Reinvestment Act of 2009 (Public Law
111-5).
   10392.  This article shall not apply to a contract that is subject
to Chapter 1 (commencing with Section 10100) of Part 2 of Division 2
of this code, or Chapter 10 (commencing with Section 4525) or
Chapter 10.1 (commencing with Section 4529.10) of Division 5 of Title
1 of the Government Code.