BILL NUMBER: SB 703	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Leno

                        FEBRUARY 27, 2015

   An act to add Sections 10295.35, 10421.5, and 10427 to the Public
Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 703, as introduced, Leno. Public contracts: prohibitions:
discrimination.
   Existing law authorizes state agencies to enter into contracts for
the acquisition of goods or services upon approval by the Department
of General Services. Existing law sets forth various requirements
and prohibitions for those contracts, including, but not limited to,
a prohibition on entering into contracts for the acquisition of goods
or services of $100,000 or more with a contractor that discriminates
between spouses and domestic partners or same-sex and different-sex
couples in the provision of benefits. Existing law provides that a
contract entered into in violation of those requirements and
prohibitions is void and authorizes the state or any person acting on
behalf of the state to bring a civil action seeking a determination
that a contract is in violation and therefore void. Under existing
law, a willful violation of those requirements and prohibitions is a
misdemeanor.
   This bill would also prohibit a state agency from entering into
contracts for the acquisition of goods or services of $100,000 or
more with a contractor that discriminates between employees on the
basis of gender identity in the provision of benefits, as specified.
The bill would require the department to maintain an easily
accessible list on its Internet Web site of contracts for the
acquisition of goods or services of $100,000 or more entered into on
or after January 1, 2016. The bill would authorize a person to file a
complaint with the department alleging that a contractor is in
violation of, or a contract has been entered into in violation of, a
state contracting requirement or prohibition and would require the
department to investigate each complaint. By expanding the scope of a
crime, 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 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.  Section 10295.35 is added to the Public Contract Code,
to read:
   10295.35.  (a) (1) Notwithstanding any other law, a state agency
shall not enter into any contract for the acquisition of goods or
services in the amount of one hundred thousand dollars ($100,000) or
more with a contractor that, in the provision of benefits,
discriminates between employees on the basis of an employee's or
dependent's actual or perceived gender identity, including, but not
limited to, the employee's or dependent's identification as
transgender.
   (2) For purposes of this section, "contract" includes contracts
with a cumulative amount of one hundred thousand dollars ($100,000)
or more per contractor in each fiscal year.
   (3) For purposes of this section, an employee health plan is
discriminatory if the plan is not consistent with Section 1365.5 of
the Health and Safety Code and Section 10140 of the Insurance Code.
   (4) The requirements of this section shall apply only to those
portions of a contractor's operations that occur under any of the
following conditions:
   (A) Within the state.
   (B) On real property outside the state if the property is owned by
the state or if the state has a right to occupy the property, and if
the contractor's presence at that location is connected to a
contract with the state.
   (C) Elsewhere in the United States where work related to a state
contract is being performed.
   (b) Contractors shall treat as confidential, to the maximum extent
allowed by law or by the requirement of the contractor's insurance
provider, any request by an employee or applicant for employment
benefits or any documentation of eligibility for benefits submitted
by an employee or applicant for employment.
   (c) After taking all reasonable measures to find a contractor that
complies with this section, as determined by the state agency, the
requirements of this section may be waived under any of the following
circumstances:
   (1) There is only one prospective contractor willing to enter into
a specific contract with the state agency.
   (2) The contract is necessary to respond to an emergency, as
determined by the state agency, that endangers the public health,
welfare, or safety, or the contract is necessary for the provision of
essential services, and no entity that complies with the
requirements of this section capable of responding to the emergency
is immediately available.
   (3) The requirements of this section violate, or are inconsistent
with, the terms or conditions of a grant, subvention, or agreement,
if the agency has made a good faith attempt to change the terms or
conditions of any grant, subvention, or agreement to authorize
application of this section.
   (4) The contractor is providing wholesale or bulk water, power, or
natural gas, the conveyance or transmission of the same, or
ancillary services, as required for assuring reliable services in
accordance with good utility practice, if the purchase of the same
cannot practically be accomplished through the standard competitive
bidding procedures and the contractor is not providing direct retail
services to end users.
   (d) (1) A contractor shall not be deemed to discriminate in the
provision of benefits if the contractor, in providing the benefits,
pays the actual costs incurred in obtaining the benefit.
   (2) If a contractor is unable to provide a certain benefit,
despite taking reasonable measures to do so, the contractor shall not
be deemed to discriminate in the provision of benefits.
   (e) (1) Every contract subject to this chapter shall contain a
statement by which the contractor certifies that the contractor is in
compliance with this section.
   (2) The department or other contracting agency shall enforce this
section pursuant to its existing enforcement powers.
   (3) (A) If a contractor falsely certifies that it is in compliance
with this section, the contract with that contractor shall be
subject to Article 9 (commencing with Section 10420), unless, within
a time period specified by the department or other contracting
agency, the contractor provides to the department or agency proof
that it has complied, or is in the process of complying, with this
section.
   (B) The application of the remedies or penalties contained in
Article 9 (commencing with Section 10420) to a contract subject to
this chapter shall not preclude the application of any existing
remedies otherwise available to the department or other contracting
agency under its existing enforcement powers.
   (f) Nothing in this section is intended to regulate the
contracting practices of any local jurisdiction.
   (g) This section shall be construed so as not to conflict with
applicable federal laws, rules, or regulations. In the event that a
court or agency of competent jurisdiction holds that federal law,
rule, or regulation invalidates any clause, sentence, paragraph, or
section of this code or the application thereof to any person or
circumstances, it is the intent of the state that the court or agency
sever that clause, sentence, paragraph, or section so that the
remainder of this section shall remain in effect.
  SEC. 2.  Section 10421.5 is added to the Public Contract Code, to
read:
   10421.5.  (a) Any person may file a complaint with the department
alleging that a contractor is in violation of, or a contract or other
transaction has been entered into in violation of, any provision of
this chapter.
   (b) The department shall investigate any complaints it receives
pursuant to this section.
  SEC. 3.  Section 10427 is added to the Public Contract Code, to
read:
   10427.  The department shall maintain an easily accessible list on
the department's Internet Web site of contracts for the acquisition
of goods or services in the amount of one hundred thousand dollars
($100,000) or more that are entered into on or after January 1, 2016.

  SEC. 4.  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.