Public contracts: University of California: California State University: domestic workers.
The bill significantly modifies existing procedures for public agencies in managing contracts, directly affecting how the University of California and California State University conduct business with external contractors. By requiring certifications under penalty of perjury, it creates new responsibilities for contractors and introduces civil penalties for noncompliance. The legislation also prohibits state funds from being spent on training employees located overseas or on those relocating as part of service contracts that could displace current employees. The intention behind these provisions is to protect local employment and minimize outsourcing.
Assembly Bill No. 848, introduced by McCarty, aims to regulate public contracts specifically relating to the University of California and the California State University. Effective from July 1, 2017, the bill mandates that contractors and subcontractors can only be awarded contracts if they certify that all work will be performed within the United States or specify which parts will be done offshore. The legislation reflects a broader trend aimed at curbing outsourcing and ensuring that taxpayer funds are utilized to bolster local job creation within the United States, especially in California.
The sentiment around AB 848 is generally supportive among those concerned with local job preservation and the implications of outsourcing. Proponents argue that the bill emphasizes the importance of using taxpayer dollars to benefit California residents and promotes the creation of in-state jobs. However, dissent exists towards the stringent compliance requirements imposed on contractors, where critics express concerns about the added bureaucracy, potential impacts on project costs, and the ability of contractors to operate effectively.
Notable points of contention include the balance between local job creation and the need for flexibility in contracting practices. Critics argue that the bill may hinder the ability of educational institutions to find the best contractors who may offer services from overseas. The bill does not apply to contracts related to study abroad programs or international projects, indicating a recognition of the need for some operational flexibility. Nevertheless, it highlights a legislative effort to curb offshoring practices and ensure that state-funded contracts meaningfully support domestic employment.