BILL NUMBER: AB 2022 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Medina
FEBRUARY 20, 2014
An act to amend Section 4531, 4532, 4533, and 4534 of, and to
repeal Section 4534.1 of, the Government Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2022, as introduced, Medina. Public contracts: Target Area
Contract Preference Act.
The Target Area Contract Preference Act establishes a preference
for contracts for goods that are in excess of $100,000 for
contractors that certify that a specified percentage of the hours
worked on a contract will be performed on a worksite in a distressed
area, as defined.
This bill would increase the dollar threshold of those contracts
to $250,000. This bill would redefine a distressed area to be a
census tract that is determined under a specified statute to be in
the top quartile of census tracts for highest unemployment and
poverty.
Existing law establishes a preference for contractors who certify
that they will use a specified amount of persons with a high risk of
unemployment, as defined, on a contract.
This bill would redefine persons with a high risk of unemployment
to include, but not be limited to, a person that has been unemployed
for a specified period of time, a veteran who served in active duty
since September 11, 2001, a person who has been incarcerated, or a
person who receives benefits of the Supplemental Nutrition Assistance
Program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4531 of the Government Code is amended to read:
4531. The Legislature hereby declares that it serves a public
purpose, and is of benefit to the state, to encourage and facilitate
job maintenance and job development in distressed and declining areas
of cities and towns in the state. It is the intent of the
Legislature to further these goals by providing appropriate
preferences to California based companies submitting bids or
proposals for state contracts to be performed at worksites in
distressed areas by persons with a high risk of unemployment when the
contract is for goods or services in excess of one hundred
thousand dollars ($100,000) two hundred fifty thousand
dollars ($250,000) .
SEC. 2. Section 4532 of the Government Code is amended to read:
4532. As used in this chapter:
(a) "Block group" means the smallest area for which the United
States Department of Commerce, Bureau of the Census provides data on
personal income.
(b) "Urbanized area" means a central city or cities and
surrounding closely settled territory, as defined by the United
States Department of Commerce, Bureau of the Census in the Federal
Register, Vol. 39, Number 85, for Wednesday, May 1, 1974, at pages
15202-15203 and as periodically updated.
(c) "Cluster of block groups" means one or more contiguous block
groups.
(d) "Distressed" means an urbanized area, within the State of
California and as identified by the Office of Planning and Research,
which contains at least 3,000 people in a cluster of block groups,
each of which meet at least five of the following criteria according
to the most recent available census information compared to the last
statewide census:
(1) The percentage of the block group's population over age 25
with less than a high school education was within the upper quartile
of all block groups.
(2) The unemployment rate of the block group was within the upper
quartile of all block groups.
(3) The per capita income of the block group was within the lower
quartile of all block groups.
(4) The percentage of the block group's households which were
female-headed households in poverty with children present was within
the upper quartile of all block groups.
(5) The percentage of the block group's population over 65 who
were in poverty was within the upper quartile of all block groups.
(6) The percentage of the block group's households with more than
1.01 persons per room was within the upper quartile of all block
groups.
(7) The percentage of the block group's population younger than 18
who were in poverty was within the upper quartile of all block
groups.
(8) The percentage of the block group's population who were
nonwhite or hispanic was within the upper quartile of all block
groups.
(e) "Approved special census" means a special census approved by
the Population Research Unit of the Department of Finance.
(f) "Person with a high risk of unemployment" means a person who:
(1) As a member of one of the eligible groups defined in Section
321 of Public Law 95-600, qualifies an employer who hires him or her
for the Targeted Jobs Tax Credit. These groups are: economically
disadvantaged youth, economically disadvantaged Vietnam-era veterans,
economically disadvantaged ex-convicts, vocational rehabilitation
referrals, youth participating in a qualified cooperative education
program, recipients of supplemental security income benefits under
Title XVI of the Social Security Act, and general assistance
recipients.
(2) Would have qualified an employer hiring him or her for the
Work Incentive/Welfare Tax Credit authorized by Section 322 of Public
Law 95-600. These persons include applicants and recipients of aid
to families with dependent children who would have registered for the
Work Incentive Program, and aid to families with dependent children
recipients who have been receiving welfare for at least 90 days.
(g) "Poverty" means the poverty level, as defined by the United
States Department of Commerce, Bureau of the Census in the Federal
Register, Volume 43, Number 87, for Thursday, May 4, 1978, at pages
19260-19269, and as periodically updated.
(h)
(a) "California based company"
"California-based company" means either of the following:
(1) A business or corporation whose principal office is located in
California, and the owners, or officers if the entity is a
corporation, are domiciled in California.
(2) A business or corporation that has a major office or
manufacturing facility located in California and that has been
licensed by the state on a continuous basis to conduct business
within the state and has continuously employed California residents
for work within the state during the three years prior to submitting
a bid or proposal for a state contract.
(b) "Distressed" means a census tract determined by the Department
of Finance, pursuant to Section 13073.5, to be in the top quartile
of census tracts for having the highest unemployment and poverty in
the state. If the designated census tract is predominately
residential, the immediately adjacent census tract that is a
predominately commercial and industrial tract shall also be a
distressed area for the purpose of this chapter.
(c) "Person with a high risk of unemployment" includes, but is not
limited to the following:
(1) A person who is currently unemployed and has been unemployed
for more than 200 days.
(2) A person who has been unemployed for greater than 200 days
within the last 365 days.
(3) Veterans who served on active duty since September 11, 2001.
(4) A person who has been incarcerated.
(5) A person who receives benefits of the Supplemental Nutrition
Assistance Program.
(i)
(d) "Worksite" means either of the following:
(1) A business located within a distressed area.
(2) A business located in directly adjoining census tract blocks
that when attached to the distressed area forms a contiguous
boundary. A company that intends to perform the work at a worksite
described in this paragraph shall submit a map with the bid or
proposal identifying where the worksite is located.
SEC. 3. Section 4533 of the Government Code is amended to read:
4533. Whenever the state prepares a solicitation for a contract
for goods in excess of one hundred thousand dollars
($100,000) two hundred fifty thousand dollars
($250,000) , 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 distressed area.
SEC. 4. Section 4534 of the Government Code is amended to read:
4534. (a) In evaluating proposals for
contracts for services in excess of one hundred thousand
dollars ($100,000) two hundred fifty thousand dollars
($250,000) , 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 total labor hours required to perform the contract
shall be accomplished at an identified worksite or worksites located
in a distressed area.
(b) Where a bidder complies with the provisions of subdivision
(a), the state shall award the additional preferences as set forth in
Section 4533.1 as appropriate.
SEC. 5. Section 4534.1 of the Government Code is repealed.
4534.1. Where a bidder complies with the provisions of Section
4534, the state shall award the additional preferences as set forth
in Section 4533.1 as appropriate.