BILL NUMBER: AB 2630 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Hueso
FEBRUARY 24, 2012
An act to amend Section 50083 of the Government Code,
relating to local government. An act to amend Section
7084 of the Government Code, relating to economic development.
LEGISLATIVE COUNSEL'S DIGEST
AB 2630, as amended, Hueso. Local government: officers
and employees. Enterprise Zone Act: contract
preferences.
The Enterprise Zone Act provides for the designation and oversight
by the Department of Housing and Community Development of various
types of economic development areas throughout the state, including,
but not limited to, targeted employment areas and enterprise zones.
The act requires the state to award specified percentages as
preferences when soliciting bids for certain contracts, including,
but not limited to, contracts that include certification under
penalty of perjury that the bidder agrees to hire persons who live
within a targeted employment area or who are enterprise zone eligible
employees, as defined. The act provides that the maximum preference
a bidder may be awarded under the act is 15%.
This bill would increase the specified percentages of the
preference for bidders agreeing to hire persons who are living within
a targeted employment area or who are enterprise zone eligible
employees, as defined. The bill would also make a technical,
nonsubstantive change.
Existing law sets forth provisions that apply to a local agency or
district and its officers and employees.
This bill would make a technical, nonsubstantive change to one of
these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7084 of the
Government Code is amended to read:
7084. (a) Whenever the state prepares a solicitation for a
contract for goods in excess of one hundred thousand dollars
($100,000), except a contract in which the worksite is fixed by the
provisions of the contract, the state shall award a 5-percent
preference to California-based companies that demonstrate and certify
under penalty of perjury that of the total labor hours required to
manufacture the goods and perform the contract, at least 50 percent
of the hours shall be accomplished at an identified worksite or
worksites located in an enterprise zone.
(b) In evaluating proposals for contracts for services in excess
of one hundred thousand dollars ($100,000), except a contract in
which the worksite is fixed by the provisions of the contract, the
state shall award a 5-percent preference on the price submitted by
California-based companies that demonstrate and certify under penalty
of perjury that not less than 90 percent of the labor hours required
to perform the contract shall be accomplished at an identified
worksite or worksites located in an enterprise zone.
(c) Where a bidder complies with subdivision (a) or (b), the state
shall award a 1-percent 2-percent
preference for bidders who certify under penalty of perjury to hire
persons living within a targeted employment area or are enterprise
zone eligible employees equal to 5 to 9 percent of its workforce
during the period of contract performance; a 2-percent
3-percent preference for bidders who shall agree
to hire persons living within a targeted employment area or are
enterprise zone eligible employees equal to 10 to 14 percent of its
workforce during the period of contract performance; a
3-percent 4-percent preference for bidders who
shall agree to hire persons living within a targeted employment area
or are enterprise zone eligible employees equal to 15 to 19 percent
of its workforce during the period of contract performance; and a
4-percent 5-percent preference for
bidders who shall agree to hire persons living within a targeted
employment area or are enterprise zone eligible employees equal to 20
or more percent of its workforce during the period of contract
performance.
(d) The maximum preference a bidder may be awarded pursuant to
this chapter and any other provision of law shall be 15 percent.
However, in no case shall the maximum preference cost under this
section exceed fifty thousand dollars ($50,000) for any bid, nor
shall the combined cost of preferences granted pursuant to this
section and any other provision of law exceed one hundred thousand
dollars ($100,000). In those cases where the 15-percent cumulated
preference cost would exceed the one hundred thousand dollar
($100,000) maximum preference cost limit, the one hundred thousand
dollar ($100,000) maximum preference cost limit shall apply.
(e) Notwithstanding any other provision of this section, small
business bidders qualified in accordance with Section 14838 shall
have precedence over nonsmall business bidders in that the
application of any bidder preference for which nonsmall business
bidders may be eligible, including the preference contained in this
section, shall not result in the denial of the award to a small
business bidder. This subdivision shall apply to those cases where
the small business bidder is the lowest responsible bidder, as well
as to those cases where the small business bidder is eligible for
award as the result of application of the 5-percent small business
bidder incentive.
(f) All state contracts issued to bidders who are awarded
preferences under this section shall contain conditions to ensure
that the contractor performs the contract at the location specified
and meets any commitment to employ persons with high risk of
unemployment.
(g) (1) A business that requests and is given the preference
provided for in subdivision (a) or (b) by reason of having furnished
a false certification, and that by reason of this certification has
been awarded a contract to which it would not otherwise have been
entitled, shall be subject to all of the following:
(A) Pay to the state any difference between the contract amount
and what the state's cost would have been if the contract had been
properly awarded.
(B) In addition to the amount specified in subparagraph (A), be
assessed a penalty in an amount of not more than 10 percent of the
amount of the contract involved.
(C) Be ineligible to directly or indirectly transact any business
with the state for a period of not less than six months and not more
than 36 months.
(2) Prior to the imposition of any sanction under this
subdivision, the business shall be entitled to a public hearing and
to five days' notice of the time and place thereof. The notice shall
state the reasons for the hearing.
(h) In each instance in this section an enterprise zone shall also
mean any enterprise zone or program area previously authorized under
any other provision of state law.
(i) As used in this section, "enterprise zone eligible employees"
means employees who meet any of the requirements of clause (iv) of
subparagraph (A) of paragraph (4) of subdivision (b) of Section
17053.74 , or clause (iv) of subparagraph (A) of paragraph
(4) of subdivision (b) of Section 23622.5, of the Revenue
and Taxation Code.
SECTION 1. Section 50083 of the Government Code
is amended to read:
50083. No local agency or district shall require that its
employees be residents of that local agency or district.