BILL NUMBER: AB 2508 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 2, 2012
AMENDED IN ASSEMBLY MAY 25, 2012
AMENDED IN ASSEMBLY MAY 2, 2012
AMENDED IN ASSEMBLY APRIL 19, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Bonilla
(Coauthor: Assembly Member Beall)
FEBRUARY 24, 2012
An act to add Chapter 3.7 (commencing with Section 12140) to Part
2 of Division 2 of the Public Contract Code, relating to public
contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2508, as amended, Bonilla. Public contracts: public health
agencies.
Existing law requires a state agency to comply with specified
procedures in awarding agency contracts.
This bill would prohibit , with
specified exceptions, also prohibit a state agency
authorized to contract for public benefit programs from contracting
for call center services with a contractor or subcontractor unless
that contractor or subcontractor certifies under penalty of
perjury in his or her bid for the contract that the
contract, and any subcontract performed under that contract, will be
performed solely with workers employed in California. This bill
would impose a civil penalty, as provided, for knowingly providing
false information in that certification. This bill would
specify that the Governor may waive these requirements during a
declared emergency. This bill would also require the contract to
include a clause for termination for noncompliance and specified
penalties, if the contractor or subcontractor performs the contract
or the subcontract with workers outside of California during the life
of the contract.
By requiring contractors and subcontractors to make certifications
under penalty of perjury, this bill would create a new crime and
thereby 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 no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares the following:
(a) The federal and state economies are recovering from the great
recession and California still has a high unemployment rate. Millions
of Californians are not working or are working less than they want
and need full-time employment. California continues to allow state
public benefit call center contracts to be awarded to contractors
that perform the work outside the United States.
(b) By contracting and subcontracting outside of the country, jobs
are displaced in the United States and in California, and taxpayer
dollars are used to create jobs in foreign countries. State tax
revenues should be used to create jobs in the United States and in
California, especially when the taxpayer dollars are designated for
programs meant to create jobs and address problems associated with
joblessness.
SEC. 2. Chapter 3.7 (commencing with Section 12140) is added to
Part 2 of Division 2 of the Public Contract Code, to read:
CHAPTER 3.7. PROHIBITION OF THE OFFSHORING OF STATE PUBLIC
BENEFITS CONTRACTS
12140. (a) Notwithstanding any other law, any state agency
authorized to enter into contracts for public benefit programs shall
not contract for call center services for those public benefit
programs with a contractor unless that contractor certifies
under penalty of perjury in his or her bid for the contract
that the contract, or any part thereof, and any subcontract
performed under that contract, will be performed solely with workers
employed in California. Any contractor that knowingly provides
false information in the certification required by this subdivision
shall be subject to a civil penalty in an amount of up to ten
thousand dollars ($10,000), in addition to any other
remedies available to the state agency. An action for a civil penalty
under this subdivision may be brought by any public prosecutor in
the name of the people of the State of California.
(b) For purposes of this section:
(1) "Call center" means a building, facility, or operation where
customer or client services or assistance is provided by telephone,
fax, email, text, or Web-based interaction.
(2) "Public benefit programs" means California Work Opportunity
and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy
Families, and the California Healthcare Eligibility, Enrollment, and
Retention System.
(c) The contract shall provide that in the event a contractor or
subcontractor performs the contract or the subcontract for call
center services with workers outside of California during the life of
the contract, the contract shall be terminated for noncompliance and
the contractor or subcontractor shall pay a penalty to the state
agency in an amount equal to the amount paid by the state agency for
the percentage of work that was performed with workers outside of
California.
(d) The requirements of subdivision (a) shall not apply if the
Governor waives those requirements pursuant to Section 8571 of the
Government Code.
(e) This section shall not apply to the following:
(1) A contract if the refusal to award that contract, on the basis
that the contractor or subcontractor does not certify under
penalty of perjury that the contract and any subcontract
performed under that contract will be performed solely with workers
within California, would violate the specific terms of the Agreement
on Government Procurement of the World Trade Organization or any
other bilateral or regional free trade agreement to which the State
of California has consented.
(2) A contract or subcontract, currently in place, if it would
result in a violation of the terms of the contract, but upon
expiration of that contract, these provisions shall be added before a
new contract can be executed or renewed.
(3) A contract for a public benefit program between a state agency
and a health care service plan or a specialized health care service
plan regulated by the Department of Managed Health Care, and any
subcontract performed under that contract, or a disability insurer or
specialized health insurer regulated by the Department of Insurance,
and any subcontract performed under that contract.
SEC. 3. 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.