Amended in Assembly April 9, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2022

Introduced by Assembly Member Medina

February 20, 2014

An act to amend begin delete Section 4531, end delete begin insert Sections end insert 4532, 4533, and 4534 of, and to repeal Section 4534.1 of, the Government Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 2022, as amended, Medina. Public contracts: Target Area Contract Preference Act.

The Target Area Contract Preference Act establishes a preference for contracts for goods begin insert or services end insert 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.

begin delete

This bill would increase the dollar threshold of those contracts to $250,000. This

end delete

begin insert This end insert 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. begin insert The bill would prohibit these preferences from being used to award any contract to a certified small business or disabled veteran business enterprise. end insert

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:

begin delete

SECTION 1.  

Section 4531 of the Government Code is amended
to read:

4531.  

The Legislature hereby declares that it serves a public
purpose, and is of benefit to the state, to encourage and facilitate
job maintenance and job development in distressed and declining
areas of cities and towns in the state. It is the intent of the
Legislature to further these goals by providing appropriate
preferences to California based companies submitting bids or
proposals for state contracts to be performed at worksites in
distressed areas by persons with a high risk of unemployment when
the contract is for goods or services in excess of two hundred fifty
thousand dollars ($250,000).

end delete

begin delete SEC. 2. end delete
begin insert SECTION 1. end insert   

Section 4532 of the Government Code is amended
to read:

4532.  

As used in this chapter:

(a) “California-based company” means either of the following:

(1) A business or corporation whose principal office is located
in California, and the owners, or officers if the entity is a
corporation, are domiciled in California.

(2) A business or corporation that has a major office or
manufacturing facility located in California and that has been
licensed by the state on a continuous basis to conduct business
within the state and has continuously employed California residents
for work within the state during the three years prior to submitting
a bid or proposal for a state contract.

(b) “Distressed” means a census tract determined by the
Department of Finance, pursuant to Section 13073.5, to be in the
top quartile of census tracts for having the highest unemployment
and poverty in the state. If the designated census tract is
predominately residential, the immediately adjacent census tract
that is a predominately commercial and industrial tract shall also
be a distressed area for the purpose of this chapter.

(c) “Person with a high risk of unemployment” includes, but is
not limited to begin insert , end insert the following:

(1) A person who is currently unemployed and has been
unemployed for more than 200 days.

(2) A person who has been unemployed for greater than 200
days within the last 365 days.

(3) Veterans who served on active duty since September 11,
2001.

(4) A person who has been incarcerated.

(5) A person who receives benefits of the Supplemental
Nutrition Assistance Program.

(d) “Worksite” means either of the following:

(1) A business located within a distressed area.

(2) A business located in directly adjoining census tract blocks
that when attached to the distressed area forms a contiguous
boundary. A company that intends to perform the work at a
worksite described in this paragraph shall submit a map with the
bid or proposal identifying where the worksite is located.

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

Section 4533 of the Government Code is amended to
read:

4533.  

Whenever the state prepares a solicitation for a contract
for goods in excess of begin delete two hundred fifty thousand dollars
($250,000), end delete begin insert one hundred thousand dollars ($100,000), end insert 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 who 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 a distressed area. begin insert This preference shall not be
used to award any contract pursuant to Section 14838.5, relating
to a certified small business or a disabled veteran business
enterprise. end insert

begin delete SEC. 4. end delete
begin insert SEC. 3. end insert   

Section 4534 of the Government Code is amended to
read:

4534.  

(a) In evaluating proposals for contracts for services in
excess of begin delete two hundred fifty thousand dollars ($250,000) end delete begin insert one
hundred thousand dollars ($100,000) end insert , 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 who demonstrate and certify under
penalty of perjury that not less than 90 percent of the total labor
hours required to perform the contract shall be accomplished at
an identified worksite or worksites located in a distressed area.
begin insert This preference shall not be used to award any contract pursuant
to Section 14838.5, relating to a certified small business or a
disabled veteran business enterprise. end insert

(b) Where a bidder complies with the provisions of subdivision
(a), the state shall award the additional preferences as set forth in
Section 4533.1 as appropriate.

begin delete SEC. 5. end delete
begin insert SEC. 4. end insert   

Section 4534.1 of the Government Code is repealed.