BILL NUMBER: AB 2022 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2014
INTRODUCED BY Assembly Member Medina
FEBRUARY 20, 2014
An act to amend Section 4531, Sections
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 amended, Medina. Public contracts: Target Area
Contract Preference Act.
The Target Area Contract Preference Act establishes a preference
for contracts for goods or services 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
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. The bill would prohibit these preferences from being
used to award any contract to a certified small business or disabled
veteran business enterprise.
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 two hundred fifty
thousand dollars ($250,000).
SEC. 2. SECTION 1. Section 4532 of
the Government Code is amended to read:
4532. As used in this chapter:
(a) "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.
(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. SEC. 2. 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 two hundred fifty thousand dollars
($250,000), 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 distressed area. This preference shall
not be used to award any contract pursuant to Section 14838.5,
relating to a certified small business or a disabled veteran business
enterprise.
SEC. 4. SEC. 3. Section 4534 of the
Government Code is amended to read:
4534. (a) In evaluating proposals for contracts for services in
excess of two hundred fifty thousand dollars ($250,000)
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 total
labor hours required to perform the contract shall be accomplished at
an identified worksite or worksites located in a distressed area.
This preference shall not be used to award any contract pursuant
to Section 14838.5, relating to a certified small business or a
disabled veteran business enterprise.
(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. SEC. 4. Section 4534.1 of
the Government Code is repealed.