AB 1552, as introduced, Travis Allen. Public contracts: state and local agencies: businesses engaged in boycott.
Existing law requires that contracts between private parties and public entities, defined to include specified local entities, contain various specified provisions.
This bill would, with certain exceptions, prohibit a public entity from entering into a contract to acquire or dispose of goods, services, information technology, or construction unless the contract includes a representation that the contractor is not currently engaged in, and an agreement that the contractor will not during the duration of the contract engage in, the boycott, as defined, of a person or an entity based in or doing business with a jurisdiction with which the state can enjoy open trade, defined as a state that is a member of the World Trade Organization. The bill would specify that these provisions constitute a matter of statewide concern.
By imposing additional duties with respect to local public contracting, this bill would 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 7204 is added to the Public Contract
2Code, to read:
(a) Notwithstanding any other law, and except as
4provided in subdivision (c), a public entity shall not enter into a
5contract to acquire or dispose of goods, services, information
6technology, or construction unless the contract includes a
7representation that the contractor is not currently engaged in, and
8an agreement that the contractor will not during the duration of
9the contract engage in, the boycott of a person or entity based in
10or doing business with a jurisdiction with which the state can enjoy
11open trade.
12(b) For the purposes of this section, the following definitions
13shall apply:
14(1) (A) “Boycott” means to blacklist, divest from, or otherwise
15refuse to
deal with a person or entity when the action is based on
16the race, color, religion, gender, or nationality of the targeted
17person or entity.
18(B) “Boycott” does not include any of the following:
19(i) A decision based on business or economic reasons.
20(ii) A boycott against a public entity of a foreign state that is
21applied in a nondiscriminatory manner.
22(iii) A boycott or divestment of a particular jurisdiction that is
23authorized or required by federal or state law.
24(2) “Jurisdiction with which the state can enjoy open trade”
25means a state that is a member of the World Trade Organization.
26(c) This section shall not apply to a
contract if any of the
27following apply:
28(1) The contract fails to meet the requirements of subdivision
29(a) but the contractor offers to provide the goods, services,
30information technology, or construction at a price that is at least
3120 percent lower than the price offered by the next lowest bidder.
P3 1(2) The total potential value of the contract is less than ten
2thousand dollars ($10,000).
3(3) The contract was entered into prior to January 1, 2017.
4(d) Notwithstanding any other law, including, but not limited
5to, Section 1100.7, the Legislature finds and declares that this
6section constitutes a matter of statewide concern, and shall apply
7to charter cities and charter counties. The provisions of this section
8shall supersede any inconsistent provisions in
the charter of any
9city, county, or city and county.
If the Commission on State Mandates determines that
11this act contains costs mandated by the state, reimbursement to
12local agencies and school districts for those costs shall be made
13pursuant to Part 7 (commencing with Section 17500) of Division
144 of Title 2 of the Government Code.
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