BILL ANALYSIS �
AB 2022
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2022 (Medina)
As Amended August 18, 2014
Majority vote
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|ASSEMBLY: |55-20|(May 28, 2014) |SENATE: |29-4 |(August 20, |
| | | | | |2014) |
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Original Committee Reference: A. & A.R.
SUMMARY : Changes the Target Area Contract Preference Act
(TACPA) by redefining what qualifies as an economically
distressed area. Specifically, a "distressed area" is in the
top quartile of census tracts for having the highest
unemployment and poverty in the state as determined by the
Department of Finance (DOF).
The Senate amendments delete changes made to the definition of a
"person with a high risk of unemployment" and reinsert language
contained in existing law.
EXISTING LAW states legislative intent that it is a benefit to
the state to encourage and facilitate job maintenance and
development in distressed and declining areas of cities and
towns in California (Government Code Section 4531). TACPA
promotes employment and economic development at designated
"distressed areas" by offering 5% worksite and 1% to 4%
workforce bidding preferences in specified state service and
commodity contracts valued in excess of $100,000. Current
persons defined within eligible groups include, but are not
limited to:
1)Economically disadvantaged youth.
2)Economically disadvantaged Vietnam-era veterans.
3)Economically disadvantaged ex-convicts.
4)Vocational rehabilitation referrals.
5)Youth participating in a qualified cooperative education
program.
AB 2022
Page 2
6)Recipients of supplemental security income benefits.
7)General assistance recipients.
Preferences only apply to bidders who are California based
firms, and only when the lowest responsible bid and resulting
contract exceeds $100,000. Bidders must certify, under penalty
of perjury to perform either 50% (for community contracts) or
90% (for labor service contracts) of the labor hours in the
eligible TACPA area worksite(s). TACPA work sites may be in,
directly adjacent to, or form a contiguous boundary with the
distressed area.
TACPA preferences are limited to 9% or a maximum of $50,000 per
bid. In combination with any other preferences, the maximum
limit is 15% of the lowest responsible bid; and, in no case more
than $100,000 per bid. The TACPA preferences do not apply to
contracts where the worksite is fixed by the contract terms.
FISCAL EFFECT : This bill in its current form has not been
analyzed by a fiscal committee.
COMMENTS : According to the author's office, the Senate
amendments remove cost associated with requiring extensive
evaluation of eligibility for persons with a high risk of
unemployment.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
FN: 0004992