BILL NUMBER: AB 2183	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Smyth

                        FEBRUARY 18, 2010

   An act to add Section 6102 to the Public Contract Code, relating
to state contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2183, as introduced, Smyth. State contracts: reciprocal
preference.
   Existing law requires a state agency, in awarding contracts for
construction, to grant a California company, as defined, a reciprocal
preference as against a nonresident contractor from any state that
gives or requires a preference to be given to contractors from that
state on its public entity construction contracts, as specified.
   This bill would require a state agency, in awarding a contract for
good or services, to grant a resident bidder, as defined, a
reciprocal preference as against a nonresident bidder from any state
that gives or requires a preference to be given to contractors from
that state, as specified. This bill would provide that its provisions
do not apply if their application might jeopardize the receipt of
federal funds or if the nonresident bidder certifies, under penalty
of perjury, in its bid that its state of residency does not give a
preference for contractors from that state in the award of its
contracts. By creating a new 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 6102 is added to the Public Contract Code, to
read:
   6102.  (a) As used in this section, the following terms have the
following meanings:
   (1) "Principal place of business" means the principal place from
which the trade or business of the bidder is directed or managed.
   (2) "Resident bidder" means an individual, sole proprietorship,
partnership, joint venture, corporation, or other business entity
that has paid unemployment taxes or income taxes in California and
whose principal place of business is located in California.
   (b)  (1) When awarding a contract for goods or services, except as
provided in Section 6107 in regard to contracts for construction, a
state agency shall grant a resident bidder a reciprocal preference as
against a nonresident bidder from any state that gives or requires a
preference to be given contractors from that state on its contracts.

   (2) The amount of the reciprocal preference shall be equal to the
amount of the preference applied by the state of the nonresident
bidder with the lowest responsive bid.
   (3) If the contractor submitting the lowest responsive bid is not
a resident bidder and has its principal place of business in any
state that gives or requires the giving of a preference on its
contracts to contractors from that state, and if a resident bidder
has also submitted a responsive bid, and, with the benefit of the
reciprocal preference, the resident bidder's bid is equal to or less
than the original lowest responsive bid, the state agency shall award
the contract to the resident bidder as its submitted bid price.
   (c) (1) The bidder shall certify, under penalty of perjury, that
the bidder qualifies as a resident bidder.
   (2) A nonresident bidder shall, at the time of bidding, disclose
to the awarding agency any and all bid preferences provided to the
nonresident bidder by the state or country in which the nonresident
bidder has its principal place of business.
   (d) The reciprocal preference is waived if the certification
described in paragraph (1) of subdivision (c) does not appear on the
bid.
   (e) This section does not apply if its application might
jeopardize the receipt of federal funds or the nonresident bidder
certifies, under penalty of perjury, in its bid that its state of
residency does not give a preference for contractors from that state
in the award of its contracts.
  SEC. 2.  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.