BILL NUMBER: SB 967	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2010

INTRODUCED BY   Senators Correa and DeSaulnier
   (Coauthors: Senators Negrete McLeod and Pavley)

                        FEBRUARY 5, 2010

   An act to add Article 7 (commencing with Section 10390) to Chapter
2 of Part 2 of Division 2 of the Public Contract Code, relating to
public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 967, as amended, Correa. Public contracts: bid preferences.
   Existing law imposes various requirements with respect to
contracting by state agencies.
   This bill would  ,  require a state agency that
accepts bids or proposals for contracts for goods or services, or for
the distribution of funds pursuant to the federal American Recovery
and Reinvestment Act of 2009, to provide a credit of 5% of the bid
price or quotation to a business that directly provides the goods or
services, when 90% of the employees of the business performing work
on the contract reside in the state.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California faces the most severe economic downturn since the
Great Depression. Over two million Californians are out of work and
California's unemployment rate is one of the highest in the nation.
   (b) At a time of scarce state resources, state contracts should be
used to stimulate our state economy and put people back to work.
   (c) The purpose of this act is to revive local communities by
creating new jobs and stimulating the economy.
  SEC. 2.  Article 7 (commencing with Section 10390) is added to
Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 7.  Preference for Businesses that Employ State
Residents


   10390.  (a) On or before  January   July
 1, 2011, any state agency that accepts bids or proposals for a
contract for goods or services shall provide a credit of 5 percent to
a business that would directly provide the goods or services and
certifies that at least 90 percent of the business' employees
performing work on the contract are residents of this state. The
preference shall be provided as follows:
   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a business that
certifies that at least 90 percent of the business' employees
performing work on the contract are residents of this state shall be
5 percent of the lowest responsible bidder meeting specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
business that certifies that at least 90 percent of the business'
employees performing work on the contract are residents of this state
shall be 5 percent of the total score of the highest responsible
bidder.
   (3) The preferences awarded pursuant to subparagraph (1) or (2)
shall not be awarded to a noncompliant bidder and shall not be used
to satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent credit authorized
pursuant to this section, a business shall submit all required
substantiating documentation and information needed by the state
agency to determine if the business is eligible for the credit.
   (b) On or before  January   July  1,
2011,  using existing resources,  the Department of
General Services shall establish a process to verify that a business
meets the criteria for the 5-percent credit.
   10391.  (a) On or before  January   July
 1, 2011, any state agency that accepts bids or proposals for
the distribution of funds pursuant to the federal American Recovery
and Reinvestment Act of 2009 (Public Law 111-5) shall provide a
credit of 5 percent of the bid price or quotation to a business that
certifies that 90 percent of the business' employees performing work
on the qualifying project are residents of this state. The preference
shall be provided as follows:
   (1) For solicitations to be awarded to the lowest responsible
bidder meeting specifications, the preference to a business that
certifies that at least 90 percent of the business' employees
performing work on the contract are residents of this state shall be
5 percent of the lowest responsible bidder meeting specifications.
   (2) For solicitations to be awarded to the highest scored bidder
based on evaluation factors in addition to price, the preference to a
business that certifies that at least 90 percent of the business'
employees performing work on the contract are residents of this state
shall be 5 percent of the total score of the highest responsible
bidder.
   (3) The preferences awarded pursuant to subparagraph (1) or (2)
shall not be awarded to a noncompliant bidder and shall not be used
to satisfy any applicable minimum requirements.
   (4) In order to be eligible for the 5-percent credit authorized
pursuant to this section, a business shall submit all required
substantiating documentation and information needed by the state
agency to determine if the business is eligible for the credit.
   (b) On or before  January   July  1,
2011, using existing resources, the Department of General Services
shall establish a process to verify that a business meets the
criteria for the 5-percent credit.