BILL NUMBER: SB 967	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2010
	PASSED THE ASSEMBLY  AUGUST 30, 2010
	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, 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 5% 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 applicable to
contracts that are subject to the State Contract Act or to contracts
for specified professional services.


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
exceeding one million dollars ($1,000,000) shall provide a 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'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'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'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 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 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
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 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 preference of 5 percent of the bid price
or total score to a business that certifies that 90 percent of the
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'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'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 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 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
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 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.