BILL ANALYSIS �
AB 2508
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ASSEMBLY THIRD READING
AB 2508 (Bonilla)
As Amended May 25, 2012
Majority vote
BUSINESS & PROFESSIONS 6-1 ECONOMIC DEVELOPMENT 4-1
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|Ayes:|Hayashi, Allen, Butler, |Ayes:|V. Manuel P�rez, Beall, |
| |Eng, Hill, Ma | |Block, Hueso |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Hagman |Nays:|Morrell |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Ammiano, Hill, | | |
| |Lara, Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
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SUMMARY : Prohibits a state agency authorized to contract for
public benefits programs from contracting for call center
services for those programs, unless a contractor certifies under
penalty of perjury that the work will be performed solely by
workers employed in California. Specifically, this bill :
1)Prohibits a state agency authorized to contract for public
benefits programs from contracting for call center services
for those programs, unless a contractor certifies under
penalty of perjury that the work will be performed solely by
workers employed in California.
2)Terminates a contract when a contractor uses out-of-state
workers and requires the contractor to pay a penalty to the
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state agency in an amount equal to the percentage of work
performed by out-of-state workers.
3)Exempts a state agency from in-state work requirements for
specified call centers if the Governor waives those
requirements during a state of emergency.
4)Defines "call center" to mean a building, facility, or
operation where customer or client services or assistance is
provided by telephone, fax, e-mail, text, or Web-based
interaction.
5)Defines "public benefit programs" to mean California Work
Opportunity and Responsibility to Kids (CalWORKS), CalFRESH,
Medi-Cal, Healthy Families, and the California Healthcare
Eligibility, Enrollment, and Retention System.
6)Does not apply to:
a) Contracts that are not awarded to contractors who solely
use in-state workers if the contract would violate the
terms of the Agreement on Government Procurement of the
World Trade Organization or any other bilateral or regional
free trade agreement which the State of California has
consented to;
b) Existing contracts, except those that will be renewed
upon expiration; or,
c) Contracts entered into between a state agency and a
health care service plan, a specialized health care service
plan regulated by the Department of Managed Health Care or
a disability insurer or specialized health insurer
regulated by the Department of Insurance, or to the
contractors and subcontractors of those plans or insurers
contracting with a state agency.
7)Makes legislative findings and declarations that tax revenues
should be used to create jobs in the United States and
California.
EXISTING STATE LAW establishes California Health and Human
Services Agency (CHHS), which oversees health care services,
social services, mental health services, and alcohol and drug
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treatment services.
EXISTING FEDERAL LAW establishes the General Agreement on
Tariffs and Trade, a multilateral trade agreement, to reduce
tariff duties for trades between participating countries and to
promote free trade.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Limiting call center contracts to California, in lieu
providing these services in lower cost states or countries,
will likely increase state costs for these services. These
additional costs are unknown, but could be in the low millions
of dollars annually.
2)Additional costs per 1) above will be offset to some extent-by
tax revenues associated with the additional employment and
related economic activity and potential reduction in the cost
of public benefit programs-associated with all call center
work being done within the state in perpetuity.
COMMENTS : According to the author's office, "Both the
Schwarzenegger and the Davis Administrations approved two
separate vendor contracts, for the �CalFRESH] food stamp
programs, that subcontracted with out-of country call centers.
Currently, �one of the] call center�s] is located in Juarez,
Mexico, where workers there provide assistance to Californians
who receive CalWORKs or CalFRESH benefits. Approximately four
million Californians are currently receiving CalFRESH benefits
as a result of the ongoing recession and the increase in
unemployment and underemployment."
Major CHHS programs include income support for CalWORKs
recipients, low-cost public health insurance (Healthy Families)
for children from working families, Medi-Cal, and CalFRESH.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301
FN: 0003939
AB 2508
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