CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1220Introduced by Senator LimnFebruary 15, 2024 An act to amend Section 12140 of, and to amend the heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 1220, as introduced, Limn. Public benefits contracts: phone operator jobs.(1) Existing law prohibits, with specified exceptions, a state agency authorized to enter into contracts relating to public benefit programs from contracting for services provided by a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor or subcontractor unless that contractor or subcontractor certifies in its bid for the contract that the contract, and any subcontract performed under that contract, will be performed solely with workers employed in California. Existing law provides an exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance. Existing law also authorizes the state to terminate a contract relating to services provided by a call center if the contractor or subcontractor performs services with workers not employed in California.If a state agency is authorized to provide or enter into contracts relating to public benefit programs, 211 services, or 988 services, this bill would require that agency to provide or contract for services provided by a call center that directly serves callers with services performed solely with and by workers, as defined, employed in California, as specified. The bill would require a contractor to certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. The bill would also extend these contracting requirements to local government agencies. By imposing new requirements on local government agencies, this bill would impose a state-mandated local program.This bill would delete the above-described exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance.This bill would extend the right to terminate a contract to local government agencies. The bill would also extend the right to terminate a contract in the case that the contractor or subcontractor does not employ workers.This bill would provide that the bills provisions would not apply to contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of the Public Contract Code is amended to read: CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator JobsSEC. 2. Section 12140 of the Public Contract Code is amended to read:12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.SEC. 3. The Legislature finds and declares that retaining good paying jobs for Californians is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act amending Section 12140 of the Public Contracts Code applies to all cities, including charter cities.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1220Introduced by Senator LimnFebruary 15, 2024 An act to amend Section 12140 of, and to amend the heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 1220, as introduced, Limn. Public benefits contracts: phone operator jobs.(1) Existing law prohibits, with specified exceptions, a state agency authorized to enter into contracts relating to public benefit programs from contracting for services provided by a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor or subcontractor unless that contractor or subcontractor certifies in its bid for the contract that the contract, and any subcontract performed under that contract, will be performed solely with workers employed in California. Existing law provides an exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance. Existing law also authorizes the state to terminate a contract relating to services provided by a call center if the contractor or subcontractor performs services with workers not employed in California.If a state agency is authorized to provide or enter into contracts relating to public benefit programs, 211 services, or 988 services, this bill would require that agency to provide or contract for services provided by a call center that directly serves callers with services performed solely with and by workers, as defined, employed in California, as specified. The bill would require a contractor to certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. The bill would also extend these contracting requirements to local government agencies. By imposing new requirements on local government agencies, this bill would impose a state-mandated local program.This bill would delete the above-described exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance.This bill would extend the right to terminate a contract to local government agencies. The bill would also extend the right to terminate a contract in the case that the contractor or subcontractor does not employ workers.This bill would provide that the bills provisions would not apply to contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 1220
Introduced by Senator LimnFebruary 15, 2024
Introduced by Senator Limn
February 15, 2024
An act to amend Section 12140 of, and to amend the heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of, the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1220, as introduced, Limn. Public benefits contracts: phone operator jobs.
(1) Existing law prohibits, with specified exceptions, a state agency authorized to enter into contracts relating to public benefit programs from contracting for services provided by a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor or subcontractor unless that contractor or subcontractor certifies in its bid for the contract that the contract, and any subcontract performed under that contract, will be performed solely with workers employed in California. Existing law provides an exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance. Existing law also authorizes the state to terminate a contract relating to services provided by a call center if the contractor or subcontractor performs services with workers not employed in California.If a state agency is authorized to provide or enter into contracts relating to public benefit programs, 211 services, or 988 services, this bill would require that agency to provide or contract for services provided by a call center that directly serves callers with services performed solely with and by workers, as defined, employed in California, as specified. The bill would require a contractor to certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. The bill would also extend these contracting requirements to local government agencies. By imposing new requirements on local government agencies, this bill would impose a state-mandated local program.This bill would delete the above-described exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance.This bill would extend the right to terminate a contract to local government agencies. The bill would also extend the right to terminate a contract in the case that the contractor or subcontractor does not employ workers.This bill would provide that the bills provisions would not apply to contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1) Existing law prohibits, with specified exceptions, a state agency authorized to enter into contracts relating to public benefit programs from contracting for services provided by a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor or subcontractor unless that contractor or subcontractor certifies in its bid for the contract that the contract, and any subcontract performed under that contract, will be performed solely with workers employed in California. Existing law provides an exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance. Existing law also authorizes the state to terminate a contract relating to services provided by a call center if the contractor or subcontractor performs services with workers not employed in California.
If a state agency is authorized to provide or enter into contracts relating to public benefit programs, 211 services, or 988 services, this bill would require that agency to provide or contract for services provided by a call center that directly serves callers with services performed solely with and by workers, as defined, employed in California, as specified. The bill would require a contractor to certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. The bill would also extend these contracting requirements to local government agencies. By imposing new requirements on local government agencies, this bill would impose a state-mandated local program.
This bill would delete the above-described exception for contracts between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care and for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance.
This bill would extend the right to terminate a contract to local government agencies. The bill would also extend the right to terminate a contract in the case that the contractor or subcontractor does not employ workers.
This bill would provide that the bills provisions would not apply to contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of the Public Contract Code is amended to read: CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator JobsSEC. 2. Section 12140 of the Public Contract Code is amended to read:12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.SEC. 3. The Legislature finds and declares that retaining good paying jobs for Californians is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act amending Section 12140 of the Public Contracts Code applies to all cities, including charter cities.SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of the Public Contract Code is amended to read: CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator Jobs
SECTION 1. The heading of Chapter 3.7 (commencing with Section 12140) of Part 2 of Division 2 of the Public Contract Code is amended to read:
### SECTION 1.
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State Public Benefits Contracts Phone Operator Jobs
SEC. 2. Section 12140 of the Public Contract Code is amended to read:12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
SEC. 2. Section 12140 of the Public Contract Code is amended to read:
### SEC. 2.
12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. (2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.(b) For purposes of this section:(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.(3) (A) Worker means a person.(B) Worker does not include any element of artificial intelligence.(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.(e) This section shall not apply to the following:(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
12140. (a) (1) Notwithstanding any other law, any state agency authorized to provide or enter into contracts relating to public benefit programs shall only programs, 211 services, or 988 services, as described in Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, or any state agency that provides services to the public, and any local government agency funded in any part by state funding to provide call center services related to those programs, shall only provide services through, or contract for services provided by by, a call center that directly serves applicants for, recipients of, or enrollees in, those public benefit programs with a contractor that certifies in its bid for the contract that the services provided under the contract and any subcontract performed under that contract, to applicants for, recipients of, or enrollees in, those public benefit programs, will be callers with services performed solely with and by workers employed in California. Any California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed.
(2) With regard to contracts specified in paragraph (1), a contractor shall certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. A certification required by this paragraph is not made under penalty of perjury. Any contractor that knowingly provides false information in the certification required by this subdivision paragraph shall be subject to a civil penalty in an amount of up to ten thousand dollars ($10,000), in addition to any other civil remedies available to the state agency. An action for a civil penalty under this subdivision paragraph may be brought by any public prosecutor in the name of the people of the State of California.
(b) For purposes of this section:
(1) Call center means a building, facility, or operation where customer or client services or assistance is provided by telephone, fax, email, text, or Web-based interaction.
(2) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, and the California Healthcare Eligibility, Enrollment, and Retention System. System, and any other needs-based program or information and referral program that refers people to, or provides benefits funded in any part by, the State of California.
(3) (A) Worker means a person.
(B) Worker does not include any element of artificial intelligence.
(c) (1) The contract shall provide that in the event a contractor or subcontractor performs the contract or the subcontract for call center services without workers or with workers not employed in California during the life of the contract, the state or local government agency has the right to terminate the contract for noncompliance and the contractor or subcontractor shall pay a penalty to the state agency or local government agency in an amount equal to the amount paid by the state agency or local government agency for the percentage of work that was performed with workers not employed in California.
(2) The penalty authorized in paragraph (1) shall be in addition to any other applicable penalty, including, but not limited to, the penalty provided in paragraph (2) of subdivision (a).
(d) (1) Notwithstanding subdivision (a), a state agency may conduct a solicitation without applying this section if the California Health and Human Services Agency or the board of the California Health Benefit Exchange makes any of the following determinations:
(A) A prior solicitation was conducted and the bids received were priced unreasonably high as a result of including these provisions.
(B) A prior solicitation was conducted and fewer than two no bids were received as a result of including these provisions.
(C) The services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare or safety.
(2) If the agency or board makes a determination described in paragraph (1), that entity shall submit a report to the Assembly Committee on Jobs, Economic Development and the Economy and to the Senate Committee on Labor and Industrial Relations on or before the last day of the quarter following the quarter in which the determination was made. The report shall include the reason for making the determination.
(e) This section shall not apply to the following:
(1) A contract or subcontract, if implementation would violate the specific terms of the Agreement on Government Procurement of the World Trade Organization or any other bilateral or regional free trade agreement to which the State of California has consented.
(2) A contract or subcontract, including extensions of that contract or subcontract, that results from a request for proposal or bid that occurred prior to before the effective date of the act that adds this chapter.
(3)A contract for a public benefit program between a state agency and a health care service plan or a specialized health care service plan regulated by the Department of Managed Health Care, and any subcontract performed under that contract, or a disability insurer or specialized health insurer regulated by the Department of Insurance, and any subcontract performed under that contract.
(f) This section shall be construed so as to not conflict with, and be applied consistent with, federal law.
(g) The amendments made to this section by the act adding this subdivision shall not apply for contracts or subcontracts, including extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025.
SEC. 3. The Legislature finds and declares that retaining good paying jobs for Californians is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act amending Section 12140 of the Public Contracts Code applies to all cities, including charter cities.
SEC. 3. The Legislature finds and declares that retaining good paying jobs for Californians is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act amending Section 12140 of the Public Contracts Code applies to all cities, including charter cities.
SEC. 3. The Legislature finds and declares that retaining good paying jobs for Californians is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 2 of this act amending Section 12140 of the Public Contracts Code applies to all cities, including charter cities.
### SEC. 3.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
### SEC. 4.