Amended in Senate August 18, 2014

Amended in Assembly May 23, 2014

Amended in Assembly May 1, 2014

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 Sections 4532 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 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 begin insert having the end insert highest unemployment and poverty.

begin delete

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.

end delete begin delete

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 convicted of a felony, or a person who receives benefits of the Supplemental Nutrition Assistance Program.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

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)  begin delete “Distressed” end delete begin insert “Distressed area” end insert 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.

begin delete

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

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

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

(3) A person who has been convicted of a felony under any
statute of the United States or of any state.

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

end delete begin insert

(c) “Person with a high risk of unemployment” means a person
who:

end insert begin insert

(1) As a member of one of the eligible groups defined in Section
321 of Public Law 95-600, qualifies an employer who hires him
or her for the Targeted Jobs Tax Credit. These groups are:
economically disadvantaged youth, economically disadvantaged
Vietnam-era veterans, economically disadvantaged ex-convicts,
vocational rehabilitation referrals, youth participating in a
qualified cooperative education program, recipients of
supplemental security income benefits under Title XVI of the Social
Security Act, and general assistance recipients.

end insert begin insert

(2) Would have qualified an employer hiring him or her for the
Work Incentive/Welfare Tax Credit authorized by Section 322 of
Public Law 95-600. These persons include applicants and
recipients of aid to families with dependent children who would
have registered for the Work Incentive Program, and aid to families
with dependent children recipients who have been receiving welfare
for at least 90 days.

end insert begin insert

(d) “Poverty” means the poverty level, as defined by the United
States Department of Commerce, Bureau of the Census in the
Federal Register, Volume 43, Number 87, for Thursday, May 4,
1978, at pages 19260-19269, and as periodically updated.

end insert begin delete

(d)

end delete

begin insert (e) end insert  “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.

SEC. 2.  

Section 4534 of the Government Code is amended to
read:

4534.  

(a) 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 begin delete who end delete begin insert that end insert 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 begin delete located in a
distressed area end delete .

(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.

SEC. 3.  

Section 4534.1 of the Government Code is repealed.