BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1231|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
VETO
Bill No: SB 1231
Author: Corbett (D), et al
Amended: 5/17/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-1, 4/13/10
AYES: Wright, Calderon, Florez, Oropeza, Padilla, Price,
Yee
NOES: Denham
NO VOTE RECORDED: Harman, Negrete McLeod, Wyland
SENATE APPROPRIATIONS COMMITTEE : 7-3, 05/27/10
AYES: Kehoe, Alquist, Corbett, Leno, Price, Wolk, Yee
NOES: Denham, Walters, Wyland
NO VOTE RECORDED: Cox
SENATE FLOOR : 21-13, 6/2/10
AYES: Alquist, Cedillo, Corbett, DeSaulnier, Ducheny,
Florez, Hancock, Kehoe, Leno, Liu, Lowenthal, Negrete
McLeod, Padilla, Pavley, Price, Romero, Simitian,
Steinberg, Wolk, Wright, Yee
NOES: Aanestad, Ashburn, Cogdill, Cox, Denham, Dutton,
Harman, Hollingsworth, Huff, Runner, Strickland, Walters,
Wyland
NO VOTE RECORDED: Calderon, Correa, Oropeza, Wiggins,
Vacancy, Vacancy
ASSEMBLY FLOOR : 50-27, 8/19/10 - See last page for vote
SUBJECT : Public contracts: sweatshop labor: slave and
sweat free code
CONTINUED
SB 1231
Page
2
of conduct
SOURCE : Author
DIGEST : This bill makes various substantive and
clarifying changes to existing provisions of the Public
Contract Code (Section 6108) related to sweatfree"
procurement policy and code of conduct.
ANALYSIS :
Existing law
1. Provides the Department of General Services (DGS) with
the governing authority related to state procurement
activities, including acquisition of materials, supplies
and services.
2. Requires every contract entered into by a state agency
for the procurement of equipment, materials, supplies,
apparel, garments, and accessories and the laundering
thereof, excluding public works contracts, to require a
contractor to certify that no equipment, materials,
supplies, apparel, garments, or accessories provided
under the contract are produced by sweatshop labor,
forced labor, convict labor, indentured labor under
penal sanction, abusive forms of child labor, or
exploitation of children in sweatshop labor. The law
provides for misdemeanor liability in the case of a
knowing false certification.
3. Provides that if a contractor knew or should have known
the specified products furnished to the state were
laundered or produced by the specified types of
prohibited labor, the contractor may be removed from the
bidder's list for 360 days.
4. Requires the Department of Industrial Relations to
establish a contractor responsibility program, on or
before February 1, 2004, including a Sweatfree Code of
Conduct.
5. Requires the appropriate procurement agency, in
SB 1231
Page
3
consultation with the Director of Industrial Relations,
to employ an approach to implement the Sweatfree
This bill:
1. Renames the Sweat Free Code of Conduct as the Slave and
Sweat Free Code of Conduct.
2. Requires every contract entered nto by a state agency
for the procurement of equipment, materials, supplies,
apparel, garments and accessories and the laundering
thereof, excluding public works contracts, to require a
contractor to certify that no equipment, materials,
supplies, apparel, garments, or accessories provided
under the contract are produced by abusive forms of
labor performed by all persons.
3. Extends the period that the contractor is removed from
the bidder's list from 360 days to tow years, if the
contractor knew or should have known the specified
products were laundered or produced by the specified
prohibited labor.
4. Requires the Department of Industrial Relations to
establish a contractor responsibility program by January
1, 2012 and requires actions by DIR and DGS with regard
to the code of conduct.
5. Requires contractors whose manufacturing and assembly
locations are outside the United State to comply with
international laws or treaties binding on their
countries.
Note: Please refer to the Senate Governmental Organization
Committee
analysis for further information on this subject.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
SB 1231
Page
4
Major Provisions 2010-11 2011-12
2012-13 Fund
Contractor responsibility $30 $60 $60
General
program (DIR/DGS) administration/enforcement
-regulations Up to $150
-update contracting terms Up to $150
-revise Web posing
processes (Bidsync) $40 - $200
Oversight of contracts Minor to
major increase in General/
Oversight costs, depending on
Bond
the state entity; potentially
Special*
significant increase in
significant
contract costs if vendors increase
prices
to cover additional compliance
costs
*Service Revolving Account
SUPPORT : (Verified 5/27/10)
Alliance to Stop Slavery and End Trafficking
California Conference Board of the Amalgamated Transit
Union
California Conference of Machinists
California Employment Lawyers Association
California Labor Federation
California Teamsters Public Affairs Council
Coalition to Abolish Slavery & Trafficking
Engineers and Scientists of California, IFPTE Local 20
International Longshore and Warehouse Union
Professional and Technical Engineers, IFPTE Local 21
United Food and Commercial Workers Western States Council
UNITE-HERE
OPPOSITION : (Verified 5/27/10)
SB 1231
Page
5
California Chamber of Commerce
American Council of Engineering Companies - Companies
Associated Builders and Contractors of California
California Business Properties Association
California Chapter of the American Fence Association
California Fence Contractors Association
California Independent Grocers Association
California Manufacturers and Technology Association
California Retailers Association
Engineerng Contractors Association
Flasher Barricade Association
Marin Builders Association
Western Electrical Contractors Association
ARGUMENTS IN SUPPORT : According to the author's office,
this bill expands the scope of the Sweatfree Code of
Conduct to prohibit the abusive labor of all persons, not
just children. It is modified to include slavery and
sweatshop labor, and the procurement of all raw materials
used in the supply chain. The author's office has chosen
to include such materials and supplies because bricks,
glass and other such materials used in public works
projects appear on the U.S. Department of Labor's list of
tainted goods (goods produced through child labor).
The author's office emphasizes that businesses have
asserted in the past that it is too burdensome and
difficult to monitor supply chains. However, the author's
office contends that there are a number of businesses which
already monitor supply chains in order to promote good
labor practices with their subcontractors.
ARGUMENTS IN OPPOSITION : Opponents believe that this
bill results in new and expensive compliance burdens for
small business, create new opportunities for protesting and
delaying construction project awards and encourage more
litigation against contractors.
GOVERNOR'S VETO MESSAGE:
"I am returning Senate Bill 1231 without my signature.
SB 1231
Page
6
While I am sympathetic to the abusive treatment of
workers, I am concerned that this bill would impose
additional and unnecessary regulations on small
business, as well as increase the complexity of the
state procurement process. In addition, I believe
this bill could further compromise the business
environment in California during difficult times for
many businesses in this state.
For these reasons I am unable to sign this bill."
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Bass, Beall, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De
Leon, Eng, Evans, Feuer, Fong, Fuentes, Furutani,
Galgiani, Gatto, Hall, Hayashi, Hernandez, Hill, Huffman,
Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning,
Nava, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Skinner, Solorio, Swanson, Torlakson, Torres,
Torrico, Yamada, John A. Perez
NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill,
Blakeslee, Conway, Cook, DeVore, Fuller, Gaines, Garrick,
Gilmore, Hagman, Harkey, Jeffries, Knight, Logue, Miller,
Nestande, Niello, Nielsen, Norby, Silva, Smyth, Audra
Strickland, Tran, Villines
NO VOTE RECORDED: Fletcher, Huber, Vacancy
TSM:do 10/5/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****