California Senate Bill SB967 Amended / Bill

 BILL NUMBER: SB 967AMENDED BILL TEXT AMENDED IN SENATE JUNE 1, 2010 INTRODUCED BY Senators Correa and DeSaulnier (Coauthors: Senators Negrete McLeod and Pavley) FEBRUARY 5, 2010 An act to add Article 7 (commencing with Section 10390) to Chapter 2 of Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST SB 967, as amended, Correa. Public contracts: bid preferences. Existing law imposes various requirements with respect to contracting by state agencies. This bill would  ,  require a state agency that accepts bids or proposals for contracts for goods or services, or for the distribution of funds pursuant to the federal American Recovery and Reinvestment Act of 2009, to provide a credit of 5% of the bid price or quotation to a business that directly provides the goods or services, when 90% of the employees of the business performing work on the contract reside in the state. 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. The Legislature finds and declares all of the following: (a) California faces the most severe economic downturn since the Great Depression. Over two million Californians are out of work and California's unemployment rate is one of the highest in the nation. (b) At a time of scarce state resources, state contracts should be used to stimulate our state economy and put people back to work. (c) The purpose of this act is to revive local communities by creating new jobs and stimulating the economy. SEC. 2. Article 7 (commencing with Section 10390) is added to Chapter 2 of Part 2 of Division 2 of the Public Contract Code, to read: Article 7. Preference for Businesses that Employ State Residents 10390. (a) On or before  January   July  1, 2011, any state agency that accepts bids or proposals for a contract for goods or services shall provide a credit of 5 percent to a business that would directly provide the goods or services and certifies that at least 90 percent of the business' employees performing work on the contract are residents of this state. The preference shall be provided as follows: (1) For solicitations to be awarded to the lowest responsible bidder meeting specifications, the preference to a business that certifies that at least 90 percent of the business' employees performing work on the contract are residents of this state shall be 5 percent of the lowest responsible bidder meeting specifications. (2) For solicitations to be awarded to the highest scored bidder based on evaluation factors in addition to price, the preference to a business that certifies that at least 90 percent of the business' employees performing work on the contract are residents of this state shall be 5 percent of the total score of the highest responsible bidder. (3) The preferences awarded pursuant to subparagraph (1) or (2) shall not be awarded to a noncompliant bidder and shall not be used to satisfy any applicable minimum requirements. (4) In order to be eligible for the 5-percent credit authorized pursuant to this section, a business shall submit all required substantiating documentation and information needed by the state agency to determine if the business is eligible for the credit. (b) On or before  January   July  1, 2011,  using existing resources,  the Department of General Services shall establish a process to verify that a business meets the criteria for the 5-percent credit. 10391. (a) On or before  January   July  1, 2011, any state agency that accepts bids or proposals for the distribution of funds pursuant to the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5) shall provide a credit of 5 percent of the bid price or quotation to a business that certifies that 90 percent of the business' employees performing work on the qualifying project are residents of this state. The preference shall be provided as follows: (1) For solicitations to be awarded to the lowest responsible bidder meeting specifications, the preference to a business that certifies that at least 90 percent of the business' employees performing work on the contract are residents of this state shall be 5 percent of the lowest responsible bidder meeting specifications. (2) For solicitations to be awarded to the highest scored bidder based on evaluation factors in addition to price, the preference to a business that certifies that at least 90 percent of the business' employees performing work on the contract are residents of this state shall be 5 percent of the total score of the highest responsible bidder. (3) The preferences awarded pursuant to subparagraph (1) or (2) shall not be awarded to a noncompliant bidder and shall not be used to satisfy any applicable minimum requirements. (4) In order to be eligible for the 5-percent credit authorized pursuant to this section, a business shall submit all required substantiating documentation and information needed by the state agency to determine if the business is eligible for the credit. (b) On or before  January   July  1, 2011, using existing resources, the Department of General Services shall establish a process to verify that a business meets the criteria for the 5-percent credit.