BILL NUMBER: AB 2508 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 21, 2012
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, a
state agency authorized to contract for enter
into contracts relating to public benefit programs from
contracting for services provided by a call center
services that directly serves applicants for,
recipients of, or enrollees in those public benefit programs
with a contractor or subcontractor unless that contractor or
subcontractor certifies in his or her its
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 not employed in California
during the life of the contract.
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 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
relating to public benefit programs shall not
only contract for services pr
ovided by a call center services for
that directly serves applicants for, recipients of, or enrollees in
those public benefit programs with a contractor unless
that contractor certifies in
his or her its bid for the contract that the
services provided under the contract , or any part
thereof, and any subcontract performed under that contract
, to applicants for, recipients of, or enrollees in, those
public benefit programs , 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 e-mail , 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) (1) 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
not employed in 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 not employed in California.
(2) The penalty authorized in paragraph (1) shall be in addition
to any other applicable penalty, including, but not limited to, the
penalty provided in subdivision (a).
(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
that the contract and any subcontract performed under that contract
will be performed solely with workers within
employed in 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
the application of this section 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 the contract 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.
(f) This section shall be construed so as to not conflict with,
and be applied consistent with, federal law.