BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2844 (Bloom) - Public contracts: discrimination
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|Version: June 20, 2016 |Policy Vote: JUD. 5 - 2 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 11, 2016 |Consultant: Jolie Onodera |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 11, 2016
Bill
Summary: AB 2844 would require a person that submits a bid or
proposal to enter into or renew a contract of $100,000 or more
with a state agency to certify under penalty of perjury 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 or the California Fair Employment and Housing Act, as
specified.
AB 2844 (Bloom) Page 1 of
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Fiscal
Impact:
Department of General Services (DGS) : Unquantifiable but
potentially major future increase in ongoing operating costs
due to higher contract costs (General Fund) resulting from the
exclusion of otherwise qualified bidders that may no longer
submit bids under the required certification. The DGS
administers over 9,000 contracts with a value of $100,000 or
more with a combined value of $27.9 billion. In the absence of
any exceptions for situations involving a sole source or for
cases in which all otherwise qualified bidders are excluded,
the costs to obtain alternative goods and/or services may
increase costs to the state. Additionally, to the extent
exercising an option to extend a contract, which oftentimes
provides for advantageous rates or prices, is deemed a renewal
under the provisions of this bill could likewise result in
additional administrative workload and higher costs to the
state for goods and services. While the magnitude of the
impact cannot be quantified, for context, even a one-half of
one percent (0.5%) increase to overall contract costs would
result in increased costs to the state of about $140 million.
Perjury violations : Unknown; potential increase in local
enforcement and incarceration costs (Local Funds) to the
extent felony arrests and convictions for the offense of
perjury are pursued under the provisions of this measure.
Other state agencies : In addition to the DGS, numerous other
state agencies that enter into contracts of over $100,000
would be impacted by an unquantifiable but potentially
significant amount due to the contract certification
requirement established in this bill.
Department of Fair Employment and Housing (DFEH) : Potential
workload increase to receive and respond to complaints, and
potentially conduct investigations. The actual workload impact
of this measure is largely unknown and would be dependent on
the volume and nature of complaints received and subsequently
investigated. Although the bill does not directly specify DFEH
to field complaints or investigate potential violations, the
receipt of violations of the Unruh Act and FEHA do fall under
the purview of DFEH.
AB 2844 (Bloom) Page 2 of
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Author
Amendments:
Remove the provision authorizing the Attorney General to
receive and investigate complaints regarding violations of
this measure.
Revise the requirement that bidders "have complied with"
the Unruh Act and FEHA to instead require bidders to
certify that they "are in compliance with" the Unruh Act
and FEHA.
Make other technical and clarifying changes.
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