BILL NUMBER: AB 2022	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 23, 2014
	AMENDED IN ASSEMBLY  MAY 1, 2014
	AMENDED IN ASSEMBLY  APRIL 9, 2014

INTRODUCED BY   Assembly Member Medina

                        FEBRUARY 20, 2014

   An act to amend Sections 4532 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 redefine a distressed area to be a census tract
that is determined by the Department of Finance 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,   convicted of a felony,  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 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) 
    (2)  Veterans who served on active duty since September
11, 2001. 
   (4) 
    (3)  A person who has been  incarcerated.
  convicted of a felony under any statute of the United
States or of any state.  
   (5) 
    (4)  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. 2.  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), 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. 3.  Section 4534.1 of the Government Code is repealed.