Amended in Senate August 19, 2016

Amended in Senate August 15, 2016

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

California Legislature—2015–16 Regular Session

Assembly Bill No. 2844

Introduced by Assembly Member Bloom

(Principal coauthors: Assembly Members begin insert Travis  end insert begin insert Allen, Gatto, end insert Levine, Medina, and Nazarian)

(Principal coauthors: Senators Allen, Block, Glazer, Hertzberg, Jackson, and Wolk)

(Coauthors: Assembly Members begin insert Achadjian, Brough, end insert Campos, Dababneh, begin delete and Olsen end delete begin insert Holden, Olsen, Ting, and Waldron end insert )

begin insert

(Coauthor: Senator Anderson)

end insert

February 19, 2016

An act to add Section 2010 to the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2844, as amended, Bloom. Public contracts: discrimination.

Existing law governs the procurement process for contracts of specified public entities. Existing law, the Unruh Civil Rights Act, states that all persons within this state are free and equal and, no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status, are entitled to full and equal accommodations, advantages, facilities, privileges, or services in all business establishments. Existing law, the California Fair Employment and Housing Act, protects and safeguards the right and opportunity of all persons to seek, obtain, and hold employment without discrimination, abridgment, or harassment on account of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status.

This bill begin delete would end delete begin insert would, with certain exceptions, end insert 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 are in compliance 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 begin delete as a pretext for discrimination end delete begin insert to discriminate end insert 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 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: 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 unlawful
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 unlawful 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 unlawful 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 unlawful discrimination.

(g) California must take action to avoid supporting or financing
unlawful discrimination against protected classes.

(h) It is the policy of the State of California to promote fairness
and equality and to combat unlawful 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 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:

(a) That they are in compliance with the Unruh Civil Rights Act
(Section 51 of the Civil Code).

(b) That they are in compliance 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).

(c)  begin insert (1) end insert begin insert   end insert 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 begin delete as a pretext for discrimination end delete begin insert to discriminate end insert 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).

begin insert

(2) Any policy adopted by a person or actions taken thereunder
that are reasonably necessary to comply with federal or state
sanctions or laws affecting sovereign nations or their nationals
shall not be construed as unlawful 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.

end insert

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.