New restrictions on contracts with the state

By CMTA Staff

Capitol Update, March 30, 2007 Share this on FacebookTweet thisEmail this to a friend

Every legislative session has bills imposing new restrictions on companies seeking to do business with the state. However, this session has far fewer than normal. The main issues raised so far focus on the hiring of undocumented workers, hiring from "low income areas", and doing any business with the Sudanese government.

AB 107 (Cameron Smyth, R-Santa Clarita) and AB 1615 (Sharon Runner, R-Lancaster) are similar bills regarding undocumented workers. They require businesses who do contract work for the state to verify, under penalty of perjury, that their employees are all documented citizens. Current law for state contracts says that any business that does not comply with the law will be unable to bid on or receive a state contract for five years.

AB 655 (Sandré Swanson, D-Oakland) deals specifically with companies that may contract with the state for work related to the Bond Act of 2006. This Act includes the four infrastructure bonds approved by voters in last year’s November election. The bill would require these specified bidders to hire at least ten percent of their employees from low-income areas of the state. Awarding departments would be required to consider a bidder's responsiveness to small or micro-businesses or a history of providing for small or micro-business as subcontractors. If a contractor fails to demonstrate a good faith effort in attaining either of these goals, the awarding department would award the contract to the next lowest responsive and responsible bidder.

AB 1089 (Ed Hernandez, D-Baldwin Park) is currently a placeholder bill but it contains intent language that prohibits the state of California from entering into a public contract with any company that conducts business with the Sudanese government.

CMTA has not yet taken any positions on these bills. If they raise concern for your company, please contact Matt Sutton at or by phone at (916) 498-3318.

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