BILL NUMBER: AB 2844 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 20, 2016
AMENDED IN ASSEMBLY MAY 31, 2016
AMENDED IN ASSEMBLY APRIL 26, 2016
AMENDED IN ASSEMBLY APRIL 11, 2016
AMENDED IN ASSEMBLY MARCH 28, 2016
AMENDED IN ASSEMBLY MARCH 17, 2016
INTRODUCED BY Assembly Member Bloom
(Principal coauthors: Assembly Members Levine, Medina, and
Nazarian)
(Principal coauthors: Senators Allen, Block, Glazer, Hertzberg,
Jackson, and Wolk)
(Coauthors: Assembly Members Campos, Dababneh, and Olsen)
FEBRUARY 19, 2016
An act to add Chapter 2.6 (commencing with Section 2100)
to Part 1 of Division 2 of Section 2010 to the
Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2844, as amended, Bloom. Public contracts: Boycott,
Divestment, and Sanctions of Recognized Sovereign Nations or Peoples.
discrimination.
Existing law governs the procurement process for contracts of
specified public entities. Existing law prohibits a person
that, at the time of bid or proposal for a new contract or renewal of
an existing contract, engages in investment activities in Iran from
bidding on, submitting a proposal for, or entering into, a contract
with a public entity for goods or services of $1,000,000 or more.
This bill would require the Attorney General to develop, maintain,
and post on its Internet Web site, a list of companies that are
engaging in discriminatory business practices in furtherance of a
boycott of any sovereign nation or peoples recognized by the
government of the United States. The bill would also require the
Attorney General, on or before January 1, 2018, to provide an
assessment to the Legislature of the constitutionality of prohibiting
a company on the list from entering into a contract with a public
entity.
This bill would require a person that submits a bid or proposal
to, or otherwise proposes to enter into or renew a contract with, a
state agency with respect to any contract in the amount of $100,000
or more to certify, under penalty of perjury, at the time the bid or
proposal is submitted or the contract is renewed that they have
complied with the Unruh Civil Rights Act and the California Fair
Employment and Housing Act, and that any policy that they have
adopted against any sovereign nation or peoples recognized by the
government of the United States, including, but not limited to, the
nation and people of Israel, is not used as a pretext for
discrimination in violation of the Unruh Civil Rights Act or the
California Fair Employment and Housing Act. By requiring a person to
certify under penalty of perjury, this bill would expand the
definition of a crime, thereby imposing a state-mandated local
program. The bill would authorize the Attorney General to receive and
investigate complaints regarding violations of, and to bring suit to
enforce, these provisions.
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 no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and
declares all of the following:
(a) California is a leader in protecting civil rights and
preventing discrimination.
(b) California's robust nondiscrimination laws include protections
on the basis of religion, race, national origin, sex, sexual
orientation, gender identity, gender expression, and disability,
among other characteristics.
(c) California's strong public policy against discrimination is
reflected in numerous statutes. The California Fair Employment and
Housing Act (Chapter 7 (commencing with Section 12960) of Part 2.8 of
Division 3 of Title 2 of the Government Code) and the Unruh Civil
Rights Act (Section 51 of the Civil Code) prohibit discrimination in
employment, housing, public accommodation, and services provided by
business establishments on the basis of certain personal
characteristics, such as sex, race, color, religion, ancestry,
national origin, age, disability, medical condition, genetic
information, marital status, or sexual orientation. Section 11135 of
the Government Code specifically prohibits discrimination on the
basis of many of these same characteristics in the conduct,
operation, or administration of any program or activity that is by
the state or by any state agency, funded directly by the state, or
receives any financial assistance from the state.
(d) California's Public Contract Code similarly affirms these
nondiscrimination policies and prohibits a state agency from entering
into certain contracts with any contractor unless the contractor
complies with all appropriate state laws concerning wages, workplace
safety, rights to association and assembly, and nondiscrimination
standards as well as appropriate federal laws.
(e) Both freedom of speech and religion are cornerstones of law
and public policy in the United States, and the Legislature strongly
supports and affirms these important freedoms.
(f) The exercise of one's First Amendment rights is not a
justification for engaging in acts of discrimination.
(g) California must take action to avoid supporting or financing
discrimination against protected classes.
(h) It is the policy of the State of California to promote
fairness and equality and to combat discrimination and if California
hopes to remain a national leader on behalf of these communities,
action must be taken to recognize that discriminatory laws and
policies are unacceptable for California's partners in business.
(i) California has significant influence in the marketplace. The
state at times operates not as a market regulator, but as a market
participant, and in this latter role it may determine that companies
engaging in discriminatory actions in the conduct and operation of
their business adversely affects the state's procurement activities
and places the state in a position of supporting activities that
could be seen as a violation of the nondiscrimination policies of the
State of California.
(j) It is the intent of the Legislature to ensure that taxpayer
funds are not used to do business with or otherwise support any state
or private entity that engages in discriminatory actions against
individuals under the pretext of exercising First Amendment rights.
This includes, but is not limited to, discriminatory actions taken
against individuals of the Jewish faith under the pretext of a
constitutionally protected boycott or protest of the State of Israel.
(k) It is the intent of the Legislature to ensure that taxpayer
funds are not used to do business with or support discriminatory
actions against any individuals.
SEC. 2. Section 2010 is added to the
Public Contract Code , to read:
2010. (a) A person that submits a bid or proposal to, or
otherwise proposes to enter into or renew a contract with, a state
agency with respect to any contract in the amount of one hundred
thousand dollars ($100,000) or more shall certify, under penalty of
perjury, at the time the bid or proposal is submitted or the contract
is renewed, all of the following:
(1) That they have complied with the Unruh Civil Rights Act
(Section 51 of the Civil Code).
(2) That they have complied with the California Fair Employment
and Housing Act (Chapter 7 (commencing with Section 12960) of Part
2.8 of Division 3 of Title 2 of the Government Code).
(3) That any policy that they have against any sovereign nation or
peoples recognized by the government of the United States,
including, but not limited to, the nation and people of Israel, is
not used as a pretext for discrimination in violation of the Unruh
Civil Rights Act (Section 51 of the Civil Code) or the California
Fair Employment and Housing Act (Chapter 7 (commencing with Section
12960) of Part 2.8 of Division 3 of Title 2 of the Government Code).
(b) The Attorney General may receive and investigate complaints
regarding violations of, and may bring suit to enforce the provisions
of, subdivision (a).
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Chapter 2.6 (commencing with Section
2100) is added to Part 1 of Division 2 of the Public Contract Code,
to read:
CHAPTER 2.6. BOYCOTT, DIVESTMENT, AND SANCTIONS OF RECOGNIZED
SOVEREIGN NATIONS OR PEOPLES
2100. (a) The Attorney General shall develop, maintain, and post
on the Internet Web site of the Office of the Attorney General a list
of companies that have engaged in discriminatory business practices
in furtherance of a boycott of any sovereign nation or peoples
recognized by the government of the United States.
(b) (1) On or before January 1, 2018, the Attorney General shall
provide an assessment to the Legislature of the constitutionality of
prohibiting a company on the list developed pursuant to subdivision
(a) from entering into a contract with a public entity.
(2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2022, pursuant to Section
10231.5 of the Government Code.
(B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
(c) For the purposes of this section, the following definitions
shall apply:
(1) (A) "Boycott" means refusing to deal with, terminating
business activities with, or taking other actions that are intended
to penalize, inflict economic harm, or otherwise limit commercial
relations with the boycotted entity for reasons other than business,
investment, or commercial reasons.
(B) "Boycott" does not include any of the following:
(i) A decision based on business or economic reasons.
(ii) Termination or prohibition of commercial activity within a
particular jurisdiction that is required by federal or state law.
(2) "Company" means a sole proprietorship, organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company, or other entity or business association, including all
wholly owned subsidiaries, majority-owned subsidiaries, and parent
companies, that exists for the purpose of making profit.
(3) "Discriminatory business practices" means business
arrangements that are prohibited by Sections 16721 and 16721.5 of the
Business and Professions Code.
(4) "Public entity" shall have the same meaning as defined in
subdivision (a) of Section 5100.