Amended IN Senate April 02, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1220Introduced by Senator LimnFebruary 15, 2024An 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 amended, 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, workers employed in California, as specified. The bill would also prohibit a state agency or specified local agency from using artificial intelligence (AI), automated decision systems (ADS), or other similar technology that would eliminate or automate essential job functions of a worker. The bill would require an agency that utilizes AI, ADS, or other similar technologies that impact essential job functions of workers to satisfy specified requirements, including developing an impact assessment report, as prescribed. 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 and Local Public Benefits 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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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.
Amended IN Senate April 02, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1220Introduced by Senator LimnFebruary 15, 2024An 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 amended, 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, workers employed in California, as specified. The bill would also prohibit a state agency or specified local agency from using artificial intelligence (AI), automated decision systems (ADS), or other similar technology that would eliminate or automate essential job functions of a worker. The bill would require an agency that utilizes AI, ADS, or other similar technologies that impact essential job functions of workers to satisfy specified requirements, including developing an impact assessment report, as prescribed. 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
Amended IN Senate April 02, 2024
Amended IN Senate April 02, 2024
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 amended, 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, workers employed in California, as specified. The bill would also prohibit a state agency or specified local agency from using artificial intelligence (AI), automated decision systems (ADS), or other similar technology that would eliminate or automate essential job functions of a worker. The bill would require an agency that utilizes AI, ADS, or other similar technologies that impact essential job functions of workers to satisfy specified requirements, including developing an impact assessment report, as prescribed. 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, workers employed in California, as specified. The bill would also prohibit a state agency or specified local agency from using artificial intelligence (AI), automated decision systems (ADS), or other similar technology that would eliminate or automate essential job functions of a worker. The bill would require an agency that utilizes AI, ADS, or other similar technologies that impact essential job functions of workers to satisfy specified requirements, including developing an impact assessment report, as prescribed. 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 and Local Public Benefits 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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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 and Local Public Benefits 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 and Local Public Benefits Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State and Local Public Benefits Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State and Local Public Benefits Phone Operator Jobs
CHAPTER 3.7. Prohibition of the Offshoring and Full Automation of State and Local Public Benefits 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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:(A) Employ sufficient workers to respond to callers requesting human assistance.(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:(I) A detailed description of the technology and all its intended uses and roles in providing call center services.(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.(III) A description of the types of outputs produced by the technology.(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.(b) For purposes of this section:(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public. (1)(3) 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.(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers. (2)(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.(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, 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 benefits or 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, public benefits or services, shall only provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California, who are paid at least the prevailing minimum wage in the jurisdiction in California in which they are employed. A call center, as specified in this paragraph, shall also employ sufficient workers to respond to callers requesting human assistance.
(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 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 paragraph may be brought by any public prosecutor in the name of the people of the State of California.
(3) A state agency, or a local agency funded in any part by state funding to provide call center services related to public benefits or services, shall not use artificial intelligence (AI), automated decision systems (ADS), or other digital technologies that eliminate or automate the essential job function of a worker. That agency shall not contract with a call center that utilizes AI, ADS, or other digital technologies to eliminate or automate the essential job function of a worker.
(4) If a state, or local agency funded in any part by state funding to provide services related to public benefits or services, uses AI, ADS, or other digital technologies that impact the essential job function of a worker, then that agency shall comply with all of following requirements:
(A) Employ sufficient workers to respond to callers requesting human assistance.
(B) (i) Develop an impact assessment report on the AI, ADS, or other similar technologies to be used in the call center. That report shall include all of the following elements:
(I) A detailed description of the technology and all its intended uses and roles in providing call center services.
(II) A description of the data used by the technology, including the specific categories of data that will be processed as input and any data used to train the model that the technology relies upon.
(III) A description of the types of outputs produced by the technology.
(IV) Potential impacts on current or future employees, including, but not limited to, job loss, hour reductions, and material changes in essential job duties.
(ii) The agency shall notify employees potentially affected by the workplace technology, and their collective bargaining representative, at least 60 days before drafting the impact assessment report, as specified in clause (i).
(iii) The agency shall conduct all major phases of the impact assessment report with the direct, meaningful, and sustained involvement of employees impacted and their collective bargaining representative, if applicable. Sixty days before the ratification of the contract, the agency shall provide the report to employees potentially affected by the workplace technology, or their collective bargaining representative.
(b) For purposes of this section:
(1) Artificial intelligence, or AI, means a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.
(2) Automated decision systems, or ADS, means a computational process, including one derived from machine learning, statistics, or other data processing or artificial intelligence techniques, that makes, or assists in making, decisions impacting workers or the public.
(1)
(3) 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.
(4) Essential job function means the duties and responsibilities a worker is expected to fulfill upon their initial employment or subsequent promotion.
(5) Impact assessment report means a report by a contractor on AI, ADS, or related technologies used in the provision of call center services and its impact on call center workers.
(2)
(6) Public benefit programs means California Work Opportunity and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy Families, the California Healthcare Eligibility, Enrollment, and Retention System, California Health Benefit Exchange, Employment Development Department insurance, 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)
(7) 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 call center workers or with workers not employed responding to calls and are 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 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 before the effective date of the act that adds this chapter.
(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.