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 or services 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 redefine a distressed area to be a census tract that is determined by the Department of Finance 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 beenbegin delete incarcerated,end deletebegin insert convicted of a felony,end insert 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 4532 of the Government Code is amended
2to read:
As used in this chapter:
4(a) “California-based company” means either of the following:
5(1) A business or corporation whose principal office is located
6in California, and the owners, or officers if the entity is a
7corporation, are domiciled in California.
8(2) A business or corporation that has a major office or
9manufacturing facility located in California and that has been
10licensed by the state on a continuous basis to conduct business
11within the state and has continuously employed California residents
12for work within the state during the three years prior to
submitting
13a bid or proposal for a state contract.
14(b) “Distressed” means a census tract determined by the
15Department of Finance, pursuant to Section 13073.5, to be in the
16top quartile of census tracts for having the highest unemployment
17and poverty in the state.begin delete If the designated census tract is
18predominately residential, the immediately adjacent census tract
19that is a predominately commercial and industrial tract shall also
20be a distressed area for the purpose of this chapter.end delete
21(c) “Person with a high risk of unemployment” includes, but is
22not limited to, the following:
23(1) A person who is currently unemployed and has been
24unemployed
for more than 200 days.
25(2) A person who has been unemployed for greater than 200
26days within the last 365 days.
27 27(3)
end delete
28begin insert(2)end insert Veterans who served on active duty since September 11,
292001.
29 30(4)
end delete
31begin insert(3)end insert A person who has beenbegin delete incarcerated.end deletebegin insert convicted of a felony
32under any statute of the United States or of any state.end insert
30 P3 1(5)
end delete
2begin insert(4)end insert A person who receives benefits of the Supplemental
3Nutrition Assistance Program.
4(d) “Worksite” means either of the following:
5(1) A business located within a distressed area.
6(2) A business located in directly adjoining census tract blocks
7that when attached to the distressed area forms a contiguous
8boundary. A company that intends to perform the work at a
9worksite described in this paragraph shall submit a map with the
10bid or proposal identifying where the worksite is located.
Section 4534 of the Government Code is amended to
12read:
(a) In evaluating proposals for contracts for services in
14excess of one hundred thousand dollars ($100,000), except a
15contract in which the worksite is fixed by the provisions of the
16contract, the state shall award a 5-percent preference on the price
17submitted by California-based companies who demonstrate and
18certify under penalty of perjury that not less than 90 percent of the
19total labor hours required to perform the contract shall be
20accomplished at an identified worksite or worksites located in a
21distressed area.
22(b) Where a bidder complies with the provisions of subdivision
23(a), the state shall award the additional preferences as set forth in
24Section
4533.1 as appropriate.
Section 4534.1 of the Government Code is repealed.
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