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SB-950 Office of Business Sustainability.(2017-2018)



Current Version: 04/12/18 - Amended Senate        


SB950:v97#DOCUMENT

Amended  IN  Senate  April 12, 2018
Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 950


Introduced by Senator Allen

January 30, 2018


An act to add Article 6.3 (commencing with Section 12099.100) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


SB 950, as amended, Allen. Office of Business Sustainability.
Existing law establishes the Governor’s Office of Business and Economic Development, also known as GO-Biz, to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law establishes various programs and offices within GO-Biz to assist business development.

The State Contract Act governs state contracts for public works projects and generally requires that a state agency award a contract to the lowest responsible bidder. Existing law provides several bidding preferences that may affect the determination of the lowest responsible bidder.

This bill would establish the Office of Business Sustainability within GO-Biz. The bill would require the Office of Business Sustainability to establish guidelines and criteria that would provide for the certification of a sustainable business operating in the state, as specified. The bill would additionally authorize the Office of Business Sustainability to award bid preferences on state solicitations to certified sustainable businesses.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Article 6.3 (commencing with Section 12099.100) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  6.3. Office of Business Sustainability

12099.100.
 The Legislature finds and declares all of the following:
(a) A sustainable business gives substantial consideration to company operations, workers, impacted communities, and the environment in its practices, products, and services.
(b) The consideration that a sustainable business gives to company operations includes, but is not limited to, the following:
(1) Fair and transparent governance. The business has sustainability included in its mission, ethical and transparent governance practices within company bylaws, and processes for employee input in company decisionmaking, is employee owned employee-owned or provides employee profit sharing, and reports sustainability metrics such as metrics, including, but not limited to, climate risk to its board or its stakeholders.
(2) A culture of inclusion. The business has a diverse workforce and programs in place that ensure equity in opportunities. The company guarantees pay equity and a reasonable executive compensation ratio compared with employee compensation.
(3) Promotion of health and safety. The business implements health and safety practices that greatly exceed federal standards.
(c) The consideration that a sustainable business gives to workers includes, but is not limited to, the following:
(1) Support for employees. The business provides compensation that substantially exceeds regional wages, ensures fair compensation for freelance, contingent, and contracted workers, provides substantial benefits, including paid family and medical leave programs, paid sick days, health insurance, child care, paid time off, retirement plans, and other benefits, engages contractors or contracting services that provide benefits to their employees or provide additional stipends to nonemployees to purchase benefits, and encourages flexible scheduling, telecommuting, and predictable work hours.
(2) Development of employees. The business invests in employee growth and development through education, training, and advancement opportunities.
(d) The consideration that a sustainable business gives to impacted communities includes, but is not limited to, the following:
(1) Engagement with local communities. The business engages in local purchasing and hiring, is active in local and regional philanthropy and promotes staff volunteerism, and advocates for sustainability at city, state, and federal levels of government.
(2) Affecting change through the supply chain. The business practices and pushes promotes sustainability throughout its supply chain.
(e) The consideration that a sustainable business gives to the environment includes, but is not limited to, the following:
(1) Environmental best practices. The business demonstrates a comprehensive commitment to environmental conservation and sustainability in all company operations and facilities, including a commitment to limit or eliminate greenhouse gas emissions and the use of nonrenewable materials and energy.
(2) Environmentally sustainable products. The business manufactures or sells a clean or green product, such as including, but not limited to, renewable energy or nontoxic materials, or achieves zero waste.

12099.101.
 (a) The Office of Business Sustainability is hereby created within the Governor’s Office of Business and Economic Development.
(b) The Office of Business Sustainability shall establish guidelines and criteria that provide for the certification of a sustainable business operating in California. The office shall use the considerations set forth in subdivisions (b), (c), (d), and (e) of Section 12099.101 12099.100 in creating these guidelines and criteria.

(c)At its discretion, the Office of Business Sustainability may award sustainable businesses certified pursuant to subdivision (b) with a bid preference on state solicitations.