AB 2022, as introduced, Medina. Public contracts: Target Area Contract Preference Act.
The Target Area Contract Preference Act establishes a preference for contracts for goods that are in excess of $100,000 for contractors that certify that a specified percentage of the hours worked on a contract will be performed on a worksite in a distressed area, as defined.
This bill would increase the dollar threshold of those contracts to $250,000. This bill would redefine a distressed area to be a census tract that is determined under a specified statute to be in the top quartile of census tracts for highest unemployment and poverty.
Existing law establishes a preference for contractors who certify that they will use a specified amount of persons with a high risk of unemployment, as defined, on a contract.
This bill would redefine persons with a high risk of unemployment to include, but not be limited to, a person that has been unemployed for a specified period of time, a veteran who served in active duty since September 11, 2001, a person who has been incarcerated, or a person who receives benefits of the Supplemental Nutrition Assistance Program.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 4531 of the Government Code is amended
2to read:
The Legislature hereby declares that it serves a public
4purpose, and is of benefit to the state, to encourage and facilitate
5job maintenance and job development in distressed and declining
6 areas of cities and towns in the state. It is the intent of the
7Legislature to further these goals by providing appropriate
8preferences to California based companies submitting bids or
9proposals for state contracts to be performed at worksites in
10distressed areas by persons with a high risk of unemployment when
11the contract is for goods or services in excess ofbegin delete one hundred begin insert two hundred fifty thousand dollars
12thousand dollars ($100,000)end delete
13($250,000)end insert.
Section 4532 of the Government Code is amended to
15read:
As used in this chapter:
17(a) “Block group” means the smallest area for which the United
18States Department of Commerce, Bureau of the Census provides
19data on personal income.
20(b) “Urbanized area” means a central city or cities and
21surrounding closely settled territory, as defined by the United
22States Department of Commerce, Bureau of the Census in the
23Federal Register, Vol. 39, Number 85, for Wednesday, May 1,
241974, at pages 15202-15203 and as periodically updated.
25(c) “Cluster of block groups” means one or more contiguous
26block groups.
27(d) “Distressed” means an urbanized area, within the State of
28California and as identified by the Office of Planning and Research,
29which contains at least 3,000 people in a cluster of block groups,
30each of which meet at least five of the following criteria according
31to the most recent available census information compared to the
32last statewide census:
33(1) The percentage of the block group’s population over age 25
34with less than a high school education was within the upper quartile
35of all block groups.
36(2) The unemployment rate of the block group was within the
37upper quartile of all block groups.
P3 1(3) The per capita income of the block group was within the
2lower quartile of all block groups.
3(4) The percentage of the block group’s households which were
4female-headed households in poverty with children present was
5within the upper quartile of all block groups.
6(5) The percentage of the block group’s population over 65 who
7were in poverty was within the upper quartile of all block groups.
8(6) The percentage of the block group’s households with more
9than 1.01 persons per room was within the upper quartile of all
10block groups.
11(7) The percentage of the block group’s population younger
12than 18 who were in poverty was within the upper quartile of all
13block groups.
14(8) The percentage of the block group’s population who were
15nonwhite or hispanic was within the upper quartile of all block
16groups.
17(e) “Approved special census” means a special census approved
18by the Population Research Unit of the Department of Finance.
19(f) “Person with a high risk of unemployment” means a person
20who:
21(1) As a member of one of the eligible groups defined in Section
22321 of Public Law 95-600, qualifies an employer who hires him
23or her for the Targeted Jobs Tax Credit. These groups are:
24economically disadvantaged youth, economically disadvantaged
25Vietnam-era veterans, economically disadvantaged ex-convicts,
26vocational rehabilitation referrals, youth participating in a qualified
27cooperative education program, recipients of supplemental security
28income benefits under Title XVI of the Social Security Act, and
29general assistance recipients.
30(2) Would have qualified an employer hiring him or her for the
31Work Incentive/Welfare Tax Credit authorized by Section 322 of
32Public Law 95-600. These persons include applicants and recipients
33of aid to families with dependent children who would have
34registered for the Work Incentive Program, and aid to families
35with dependent children recipients who have been receiving welfare
36for at least 90 days.
37(g) “Poverty” means the poverty level, as defined by the United
38States Department of Commerce, Bureau of the Census in the
39Federal Register, Volume 43, Number 87, for Thursday, May 4,
401978, at pages 19260-19269, and as periodically updated.
P4 1(h)
end delete
2begin insert(a)end insert begin delete“California based company” end deletebegin insert“California-based company” end insert
3means either of the following:
4(1) A business or corporation whose principal office is located
5in California, and the owners, or officers if the entity is a
6corporation, are domiciled in California.
7(2) A business or corporation that has a major office or
8manufacturing facility located in California and that has been
9licensed by the state on a continuous basis to conduct business
10within the state and has continuously employed California residents
11for work within the
state during the three years prior to submitting
12a bid or proposal for a state contract.
13(b) “Distressed” means a census tract determined by the
14Department of Finance, pursuant to Section 13073.5, to be in the
15top quartile of census tracts for having the highest unemployment
16and poverty in the state. If the designated census tract is
17predominately residential, the immediately adjacent census tract
18that is a predominately commercial and industrial tract shall also
19be a distressed area for the purpose of this chapter.
20(c) “Person with a high risk of unemployment” includes, but is
21not limited to the following:
22(1) A person who is currently unemployed and has been
23unemployed for more than 200 days.
24(2) A person who has been unemployed for greater than 200
25days within the last 365 days.
26(3) Veterans who served on active duty since September 11,
272001.
28(4) A person who has been incarcerated.
end insertbegin insert
29(5) A person who receives benefits of the Supplemental Nutrition
30Assistance Program.
31(i)
end delete32begin insert(d)end insert “Worksite” means either of the following:
33(1) A business located within a distressed area.
34(2) A business located in directly adjoining census tract blocks
35that when attached to the distressed area forms a contiguous
36boundary. A company that intends to perform the work at a
37worksite described in this paragraph shall submit a map with the
38bid or proposal identifying where the worksite is located.
Section 4533 of the Government Code is amended to
40read:
Whenever the state prepares a solicitation for a contract
2for goods in excess ofbegin delete one hundred thousand dollars ($100,000)end delete
3begin insert two hundred fifty thousand dollars ($250,000)end insert, except a contract
4in which the worksite is fixed by the provisions of the contract,
5the state shall award a 5-percent preference to California-based
6companies who demonstrate and certify under penalty of perjury
7that of the total labor hours required to manufacture the goods and
8perform the contract, at least 50 percent of the hours shall be
9accomplished at an identified worksite or worksites located in a
10distressed area.
Section 4534 of the Government Code is amended to
12read:
begin insert(a)end insertbegin insert end insertIn evaluating proposals for contracts for services in
14excess ofbegin delete one hundred thousand dollars ($100,000)end deletebegin insert two hundred
15fifty thousand dollars ($250,000)end insert, except a contract in which the
16worksite is fixed by the provisions of the contract, the state shall
17award a 5-percent preference on the price submitted by
18California-based companies who demonstrate and certify under
19penalty of perjury that not less than 90 percent of the total labor
20hours required to perform the contract shall be accomplished
at
21an identified worksite or worksites located in a distressed area.
22(b) Where a bidder complies with the provisions of subdivision
23(a), the state shall award the additional preferences as set forth
24in Section 4533.1 as appropriate.
Section 4534.1 of the Government Code is repealed.
Where a bidder complies with the provisions of Section
274534, the state shall award the additional preferences as set forth
28in Section 4533.1 as appropriate.
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