BILL NUMBER: SB 967 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 16, 2010
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 , exceeding
$1,000,000 , or for the distribution of funds pursuant to the
federal American Recovery and Reinvestment Act of 2009, on or
before July 1, 2011, to provide a credit of
5% of the bid price or quotation preference,
as provided, 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.
This bill would state that these bidding preferences are not a
pplicable to contracts that are subject to the State Contract
Act and contracts for specified professional services.
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 July 1, 2011, any state agency that
accepts bids or proposals for a contract for goods or
services goods or services exceeding one million
dollars ($1,000,000) shall provide a credit
preference of 5 percent to a business that would directly
provide the goods or services and certifies that at least 90 percent
of the business' business's 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'
business's employees performing work on the
contract are residents of this state shall be 5 percent of the
bid price 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' business's 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
paragraph (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
preference 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 preference .
(b) On or before July 1, 2011, the Department of General Services
shall establish a process to verify that a business meets the
criteria for the 5-percent credit preference
.
10391. (a) On or before 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 preference
of 5 percent of the bid price or quotation
total score to a business that certifies that 90 percent
of the business' business's 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'
business's employees performing work on the contract are
residents of this state shall be 5 percent of the bid price
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' business's 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
paragraph (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
preference 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 preference .
(b) On or before 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
preference .
(c) This section shall be implemented only to the extent permitted
by the American Recovery and Reinvestment Act of 2009 (Public Law
111-5).
10392. This article shall not apply to a contract that is subject
to Chapter 1 (commencing with Section 10100) of Part 2 of Division 2
of this code, or Chapter 10 (commencing with Section 4525) or
Chapter 10.1 (commencing with Section 4529.10) of Division 5 of Title
1 of the Government Code.