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AB-990 Public contracts.(2003-2004)

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Amended  IN  Assembly  April 24, 2003
Amended  IN  Assembly  June 02, 2003
Amended  IN  Senate  July 15, 2003
Amended  IN  Senate  August 27, 2003
Amended  IN  Senate  September 09, 2003
Amended  IN  Senate  April 29, 2004
Amended  IN  Senate  June 10, 2004

CALIFORNIA LEGISLATURE— 2003–2004 REGULAR SESSION

Assembly Bill
No. 990

Introduced  by  Assembly Member Ridley-Thomas
 (Coauthor(s): Assembly Member Chavez, Corbett, Frommer, Oropeza, Steinberg)
 (Coauthor(s): Senator Cedillo)

February 20, 2003

An act to add Article 2.7 (commencing with Section 12025) to Chapter 1 of Part 2 of Division 3 of Title 2 of the Government Code, relating to state government. An act to add Chapter 1.9 (commencing with Section 1900) to Part 1 of Division 2 of the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 990, as amended, Ridley-Thomas. State government: Tax Expenditures Report Public contracts.
Existing law requires state agencies to give small businesses a 5% preference in contracts for construction, the procurement of goods, or the delivery of services.
Existing law also authorizes a local agency to provide for a small business preference in construction, the procurement of goods, or the delivery of services, and establishes a subcontracting participation goal for small businesses on contracts with a preference for those bidders who meet the goal.
This bill would enact the “California First” Procurement Act to provide, in the context of public contracts, that business bidders that employ California workers have precedence over business bidders that do not employ California workers in the awarding of contracts, and in the application of any bidder preference for which business bidders that do not employ California workers may be eligible.

Existing law requires the Governor to annually issue a report to the public on the expenditures for support of his or her office, and to submit a budget to the Legislature within the first 10 days of each regular session that includes, among other things, a complete plan and itemized statement of all proposed expenditures of the state, provided for by existing law or recommended by the Governor, and of all estimated revenues.

This bill would require the Department of Finance to, on or before January 10, 2004, and on or before that date in each succeeding year, submit to the Legislature a report of the tax expenditures, as defined, currently in effect. This bill would also express legislative intent that this report be considered during the budget process to evaluate the relative priority of each tax expenditure based on specified criteria.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

This act shall be known, and may be cited as, the

Chapter 1.9 (commencing with Section 1900) is added to Part 1 of Division 2 of the Public Contract Code, to read:
CHAPTER  1.9. “California First”Procurement Act

1900.
 This act shall be known and may be cited as the “California First” Procurement Act.

1901.
 (a) It is in the interest of the State of California to encourage all public entities to procure goods and services from businesses that employ California workers.
(b) It is also in the interest of the State of California to ensure that all public entities first look to procure commodities, supplies, technology, property, and services from business enterprises that benefit the state and the citizens of the state by increasing incentives to invest in businesses that employ California workers, expanding job opportunities for California citizens, and strengthening the overall economy of the state.

1901.5.
 (a) To the maximum extent feasible and allowable under law, and where responsibility, quality, and cost are equal, contracts and subcontracts for commodities, supplies, technology, property, and services shall be awarded by all public entities to business enterprises that employ California workers.
(b) To the maximum extent feasible and allowable under law, and where responsibility, quality, and cost are equal, business bidders that employ California workers shall have precedence over business bidders that do not employ California workers in the application of any bidder preference for which business bidders that do not employ California workers may be eligible.
(c) The preference contained in this chapter may not result in the denial of the award to a small business bidder pursuant to Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government Code. This chapter shall apply to those cases where the small business bidder is the lowest responsible bidder, as well as to those cases where the small business bidder is eligible for award as the result of application of the 5 percent small business bidder preference and incentive.

1903.
  For purposes of this chapter:
(a) “Awarding department” means any public entity empowered by law to enter into contracts on behalf of the public entity.
(b) “Business that employs California workers” means a business or corporation that is in full compliance with the tax laws administered by the Franchise Tax Board and that employed at least 80 percent of its employees in California during the three years prior to submitting the bid.
(c) “California worker” means a California taxpayer.
(d) “Contract” means contracts or subcontracts for construction, renovation, modernization, commodities, supplies, technology, property, and services awarded by a public entity, including:
(1) Any agreement or joint development agreement to provide labor, services, materials, supplies, or equipment in the performance of a contract, franchise, concession, or lease granted, let, or awarded for and on behalf of the public entity.
(2) Purchases made on behalf of the Legislature, whether made by the Senate Committee on Rules, the Assembly Committee on Rules, the Joint Rules Committee, or any other agency of the Legislature.
(e) “Contractor” means any person or persons, regardless of race, color, sex, ethnic origin, or ancestry, or any firm, partnership, corporation, or combination thereof, whether or not a minority or women business enterprise, who submits a bid and enters into a contract with a representative of a public entity empowered by law to enter into contracts.
(f) “Public entity” means the state, including every state agency, office, department, division, bureau, board, or commission, a city, county, city and county, including chartered cities and chartered counties, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.

California Tax Expenditure Accountability Act.

SEC. 2.Article 2.7 (commencing with Section 12025) is added to Chapter 1 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
2.7.Tax Expenditures Report
12025.

As used in this article, “tax expenditure” or “tax expenditures” means a credit, deduction, exclusion, exemption, or any other tax benefit as may be provided for by state law.

12026.

On or before January 10, 2004, and on or before January 10 in each year thereafter, the Department of Finance shall submit to the Legislature a report of the tax expenditures currently in effect, including those tax expenditures set forth in the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code), the Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code), and the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code). The report shall contain the following information:

(a)A description of each tax expenditure.

(b)The statutory or legal authority for each tax expenditure.

(c)An estimate of revenue loss for the most recent fiscal year for each tax expenditure.

12027.

It is the intent of the Legislature that the report submitted pursuant to Section 12026 be considered during the budget process to evaluate the relative priority of each tax expenditure as compared with all state expenditures. It is further the intent of the Legislature that criteria for this evaluation include, but not be limited to, the following:

(a)The original intent of the tax expenditure.

(b)The number of tax returns or taxpayers affected by the tax expenditure.

(c)The distribution of each tax expenditure, where feasible, as follows:

(1)For expenditures under the Corporation Tax Law, by size of the business or industry, by size of gross receipts, and by type of business or industry.

(2)For expenditures under the Personal Income Tax Law, by income tax brackets.

(d)The state and local revenue loss associated with each tax expenditure.

(e)The conditions under which the tax expenditure should be viewed as a successful policy tool.

(f)Potential policy alternatives for achieving the policy goals of the tax expenditures.

(g)The feasibility of repealing or continuing each tax expenditure.