Bills

AB 848: Public contracts: University of California: California State University: domestic workers.

Session Year: 2017-2018
House: Assembly
Latest Version Date: 2017-10-15

Version:

(1)Existing law requires a state agency to comply with specified procedures in awarding agency contracts. Existing law, with specified exceptions, prohibits 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 imposes a civil penalty, as provided, for knowingly providing false information in that certification. Existing law also requires the contract to include a clause providing for a right by the state to terminate the contract for noncompliance and specified penalties, if the contractor or subcontractor performs the contract or the subcontract with workers not employed in California during the life of the contract.

This bill would prohibit, on or after July 1, 2017, the University of California and the California State University from contracting for services with a contractor or subcontractor unless that contractor or subcontractor certifies, under penalty of perjury, in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States or describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

The bill would prohibit the University of California and the California State University from expending funds for training for service contract employees located in foreign countries or for training for service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employee of the University of California or the California State University.

The bill would require a contract entered into pursuant to the bill to provide, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, for the termination of the contract for noncompliance, as specified.

The bill would specify the circumstances under which a contractor or the University of California or the California State University would be found to have violated a provision of the bill. The bill would define displace for purposes of the bill as the layoff, demotion, involuntary transfer to a new classification or location, or time base reduction of an employee of the University of California or the California State University, under specified conditions.

The bill would specify that nothing in its provisions would preclude the University of California and the California State University from contracting with a contractor or subcontractor that utilizes workers in offshore operations in circumstances that do not directly result in the displacement of an employee of the University of California or the California State University.

The bill would specify that these provisions do not apply to contracts relating to study abroad programs, or to international teaching, research, or public service activities and projects, conducted by the University of California or the California State University.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

(2)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 no reimbursement is required by this act for a specified reason.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would prohibit, on or after July 1, 2017, the University of California and the California State University from contracting for services with a contractor or subcontractor, where that contract would displace, as defined, an employment position, as defined, of the University of California or the California State University, subcontractor unless that contractor or subcontractor certifies certifies, under penalty of perjury perjury, in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States or describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

The bill would prohibit the University of California and the California State University from expending funds for training for service contract employees located in foreign countries or for training for service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position employee of the University of California or the California State University.

The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would prohibit, on or after July 1, 2017, the University of California and the California State University from contracting for services with a contractor or subcontractor, where that contract would displace, as defined, an employment position, as defined, of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

The bill would prohibit the University of California and the California State University from expending funds for training for service contract employees located in foreign countries or for training for service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position of the University of California or the California State University.

The bill would require a contract to provide, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, for the termination of the contract for noncompliance, as specified.

The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would prohibit prohibit, on or after July 1, 2017, the University of California and the California State University from contracting for services with a contractor or subcontractor, where that contract would displace, as defined, an employment position, as defined, of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

The bill would prohibit the University of California and the California State University from expending funds for training for service contract employees located in foreign countries or for training for service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position of the University of California or the California State University.

The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

The bill would specify that these provisions do not apply to contracts relating to study abroad programs programs, or to international teaching, research, or public service activities and projects, conducted by the University of California or the California State University.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would prohibit the University of California and the California State University from contracting for services with a contractor or subcontractor, where that contract displaces a career employee would displace, as defined, an employment position, as defined, of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

The bill would prohibit the University of California and the California State University from allocating or expending funds for employment training for service contract employees located in foreign countries or for training for service contract employees who plan to relocate to a foreign countries, country as part of the service contract, if that service contract displaces a career employee an employment position of the University of California or the California State University.

The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

The bill would specify that these provisions do not apply to contracts relating to study abroad programs conducted by the University of California or the California State University.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

This bill would prohibit the University of California, as a condition of receiving state funding, California and the California State University, University from contracting for services with a contractor or subcontractor subcontractor, where that contract displaces a career employee of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for the contact that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States. This

The bill would prohibit the University of California, as a condition of receiving state funding, California and the California State University, University from allocating or expending funds for employment training for contract employees located in foreign countries. countries, if that contract displaces a career employee of the University of California or the California State University. The

The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

The bill would specify that these provisions do not apply to agreements entered into by the Treasurer in connection with the sale of any evidence of indebtedness. contracts relating to study abroad programs conducted by the University of California or the California State University.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

The

This bill would prohibit the University of California, to the extent that the Regents of the University of California act to make the provisions applicable, as a condition of receiving state funding, and the California State University University, from contracting for services with a contractor or subcontractor unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for the contact that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States. This bill would prohibit the University of California, to the extent that the regents make applicable, as a condition of receiving state funding, and the California State University University, from allocating or expending funds for employment training for employees located in foreign countries. The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

The bill would specify that these provisions do not apply to agreements entered into by the Treasurer in connection with the sale of any evidence of indebtedness.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

The bill would prohibit the University of California, to the extent that the Regents of the University of California act to make the provisions applicable, and the California State University from contracting for services with a contractor or subcontractor unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for the contact that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States. This bill would prohibit the University of California, to the extent that the regents make applicable, and the California State University from allocating or expending funds for employment training for employees located in foreign countries. The bill would also specify that these provisions do not apply to a contract, if refusing to award that contract would violate the specific terms of federal trade treaties, as specified.

The bill would specify that these provisions do not apply to agreements entered into by the Treasurer in connection with the sale of any evidence of indebtedness.

By requiring contractors and subcontractors to make certifications under penalty of perjury, this bill would create a new crime and thereby impose a state-mandated local program.

This bill would provide that no reimbursement is required by this act for a specified reason.

Version:

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(b)Outsourcing by the technology sector is a growing trend, with approximately 1.7 million jobs outsourced from the United States and an estimated one billion three hundred sixty million dollars ($1,360,000,000) lost to outsourcing since the year 2000.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

SEC. 2.Chapter 3.9 (commencing with Section 12147) is added to Part 2 of Division 2 of the Public Contract Code, to read:3.9.Offshoring University of California and California State University Contracts12147.

(A)Certifies, under penalty of perjury, in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(B)Describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

(2)If the University of California or the California State University enters into a services contract with a contractor whose bid indicates that specific work will be performed by workers outside of the United States, the University of California or the California State University, as appropriate, shall not, for the duration of that contract, displace an employee performing that specific work.

(b)Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employee of the University of California or the California State University.

(c)A contract entered into pursuant to subdivision (a) shall provide that, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract and the contractor or subcontractor does not describe this work in his or her bid as referenced in subdivision (a), the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States.

(d)(1)A contractor shall be found to have violated subdivision (a) only to the extent that he or she fails to note in a bid any work to be accomplished by workers outside of the United States. The University of California or the California State University shall be found to have violated subdivision (a) only to the extent that the University of California or the California State University displaces an employee performing that specific work after having been notified in the contractors bid that the specific work would be performed by workers outside of the United States.

(2) For purposes of this section, displace means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employee, during the operation of a contract that is subject to this chapter, where the employee is performing the specific work that a contractor has identified as to be performed by workers outside of the United States and the reason for the layoff, demotion, involuntary transfer to a new classification, or time base reduction of the employee is a direct result of the University of California or the California State University entering into the contract that is subject to this chapter.

(3)Notwithstanding the limitations imposed by subdivisions (a), (b), and (c), nothing in this section shall preclude the University of California and the California State University from contracting with a contractor or subcontractor that utilizes workers in offshore operations in circumstances that do not directly result in the displacement of an employee of the University of California or the California State University.

(e)This chapter does not apply to a contract if refusing to award that contract, on the basis that the contractor or subcontractor does not certify under penalty of perjury that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States, 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 that California has consented to.

(f)This chapter does not apply to either of the following:

(1)Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2)Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

(B)Describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

(f)This chapter does not apply to either of the following:

(1)Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2)Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

(a)(1)Notwithstanding any other law, on or after July 1, 2017, neither the University of California nor the California State University may contract for services with a contractor or subcontractor, where that contract displaces an employment position of the University of California or the California State University, subcontractor unless that contractor or subcontractor certifies does either of the following:

(A)Certifies, under penalty of perjury perjury, in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(B)Describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

(b)Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position employee of the University of California or the California State University.

(c)The contract A contract entered into pursuant to subdivision (a) shall provide that, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, contract and the contractor or subcontractor does not describe this work in his or her bid as referenced in subdivision (a), the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States, if that contract displaces an employment position of the University of California or the California State University. States.

(d)For purposes of this section: (1)Displace

(2) For purposes of this section, displace means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employment position that occurs within 24 months of the date of the commencement of the operation of a employee, during the operation of a contract that is subject to this chapter, where the employee is performing the specific work that a contractor has identified as to be performed by workers outside of the United States and the reason for the layoff, demotion, involuntary transfer to a new classification, or time base reduction of the employee is a direct result of the University of California or the California State University entering into the contract that is subject to this chapter.

(2)Employment position means the position of a career employee, permanent employee, or limited-term employee.

(f)This chapter does not apply to either of the following:

(1)Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2)Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

(a)Notwithstanding any other law, on or after July 1, 2017, neither the University of California nor the California State University may contract for services with a contractor or subcontractor, where that contract displaces an employment position of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(b)Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position of the University of California or the California State University.

(c)The contract shall provide that, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States, if that contract displaces an employment position of the University of California or the California State University.

(d)For purposes of this section:

(1)Displace means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employment position that occurs within 24 months of the date of the commencement of the operation of a contract that is subject to this chapter.

(2)Employment position means the position of a career employee, temporary employee, casual employee, seasonal employee, limited-term employee, per diem employee, or contracted-out employee, or a vacant position. permanent employee, or limited-term employee.

(f)This chapter does not apply to either of the following:

(1)Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2)Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

(b)Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces an employment position of the University of California or the California State University.

(d)For purposes of this section:

(1)Displace means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employment position. position that occurs within 24 months of the date of the commencement of the operation of a contract that is subject to this chapter.

(f)This chapter does not apply to contracts either of the following:

(1)Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2)Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

(a)Notwithstanding any other law, neither the University of California nor the California State University may contract for services with a contractor or subcontractor, where that contract displaces a career employee an employment position of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(b)Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train service contract employees who plan to relocate to a foreign country as part of the service contract, if that service contract displaces a career employee an employment position of the University of California or the California State University.

(c)The contract shall provide that, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States, if that contract displaces a career employee an employment position of the University of California or the California State University.

(d)For purposes of this section:

(1)Displace means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employment position.

(d)

(e)

(f)This chapter does not apply to contracts relating to study abroad programs conducted by the University of California or the California State University.

SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(b)Outsourcing by the technology sector is a growing trend, with approximately 1.7 million jobs outsourced from the United States and an estimated one hundred thirty-six billion dollars ($136,000,000,000) billion three hundred sixty million dollars ($1,360,000,000) lost to outsourcing since the year 2000.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

SEC. 2.Section 5703 of the Government Code is amended to read:5703.(a)Except as provided in subdivisions (b), (c), and (d), the Treasurer, in exercising the duties of agent for offering and selling bonds, whose duties include, among others, establishing the timing of a sale, preparation or approval of the documentation for the sale, sole authority to select the underwriters for negotiating the sale, and executing the bond purchase agreement on behalf of the state or the states agencies, is responsible for developing and implementing a competitive process for selection of underwriters for negotiated offerings of bonds. The competitive process may be conducted on an issue-by-issue basis or to establish one or more pools of underwriters for various types of issues. The competitive process shall have at least all of the following features:(1)Solicitation of written qualifications from at least 20 underwriting firms.(2)Consideration of the goals for minority and women business enterprise participation in professional bond services contracts.(3)The written submissions shall be available for inspection at the office of the Treasurer for a period of at least six months.(4)If a pool of underwriters is established, the competitive process shall be repeated at least every 24 months to reestablish the pool of underwriters.(b)For negotiated offerings of bonds by state financing authorities that act as conduits to provide financing to other public, nonprofit, or private organizations, the Treasurer shall use the competitive process described in subdivision (a) to establish one or more pools of underwriters for each financing authority. The Treasurer may make additions to a pool without competitive solicitation, on a case-by-case determination upon the recommendation of a project applicant, where the Treasurer finds that the underwriter to be added has provided significant services to the project applicant with the expectation of compensation for those services from underwriting the revenue bonds which will fund the applicants project.(c)The Treasurer may select underwriters for a negotiated sale of bonds by means other than as described in subdivision (a) if the Treasurer makes a written finding that extraordinary market conditions do not allow enough time to comply with subdivision (a) without risking financial detriment to the state.(d)Subdivisions (a), (b), and (c) shall not apply to the issuance of state bonds for which the Treasurer is precluded by statute from selecting underwriters.(e)For negotiated sales, the Treasurer shall maintain records of all cost information pertinent to the initial offering of all state bonds, except that in the case of bonds issued by a state financing authority, as described in subdivision (b), the issuing state financing authority shall instead be responsible for maintaining the same cost information on bonds it has issued. The information shall include, but not be limited to, all of the following:(1)All amounts paid out of bond proceeds to the underwriter, detailed by management fee, takedown, risk, and underwriters expenses.(2)All costs paid out of bond proceeds to rating agencies for rating of the bonds.(3)All fees paid out of bond proceeds to bond counsels, trustees, or financial advisers relating to the initial offering of the bonds.(4)The interest rate to be paid on the bonds.(f)For competitive sales, the Treasurer shall maintain records of all bids submitted and the documentation of bid verifications including the terms of sale and the calculation of net interest cost or true interest cost.(g)The State Auditor shall audit the cost records required to be maintained pursuant to subdivision (e) and conduct a review of the records required to be maintained pursuant to subdivision (f).(h)The State Auditor shall report whether this section is being fully implemented. The State Auditor shall make cost and interest rate comparisons with similar initial bond offerings of other states where possible. The State Auditor shall submit a report to the Legislature on March 1, 1993, and March 1, 1995, for bonds sold during the two calendar years immediately preceding the year in which the report is due.(i)The following provisions of the Public Contract Code do not apply to agreements entered into by the Treasurer in connection with the sale of any evidence of indebtedness:(1)Section 10295.(2)Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2.(3)Chapter 3.9 (commencing with Section 12147) of Part 2 of Division 2.SEC. 3.SEC. 2.Chapter 3.9 (commencing with Section 12147) is added to Part 2 of Division 2 of the Public Contract Code, to read:3.9.Offshoring University of California and California State University Contracts12147.

(a)Notwithstanding any other law, except as provided in subdivision (e), neither the University of California nor the California State University may contract for services with a contractor or subcontractor subcontractor, where that contract displaces a career employee of the University of California or the California State University, unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for the contact that contract that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(b)Notwithstanding any other law, except as provided in subdivision (e), neither the University of California nor the California State University may expend funds to train contract employees located in foreign countries or train contract employees who plan to relocate to a foreign country as part of the contract. contract, if that contract displaces a career employee of the University of California or the California State University.

(c)The contract shall provide that, in the event a contractor or subcontractor performs the contract or the subcontract with workers outside the United States during the life of the contract, the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States. States, if that contract displaces a career employee of the University of California or the California State University.

(d)This chapter does not apply to a contract if refusing to award that contract, on the basis that the contractor or subcontractor does not certify under penalty of perjury that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States, 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 that California has consented to.

(e)This chapter shall apply to the University of California as a condition of receiving state funding. does not apply to contracts relating to study abroad programs conducted by the University of California or the California State University.

SEC. 4.SEC. 3.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(b)Outsourcing by the state and local government technology sector is a growing trend, with an estimated $____ billion in net contract value subject to outsourcing to foreign countries in ____. By ____, an estimated $____ billion in net contract value will be subject to outsourcing by the state and local government technology sector. approximately 1.7 million jobs outsourced from the United States and an estimated one hundred thirty-six billion dollars ($136,000,000,000) lost to outsourcing since the year 2000.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

SEC. 2.Section 5703 of the Government Code is amended to read:5703.

(a)Except as provided in subdivisions (b), (c), and (d), the Treasurer, in exercising the duties of agent for offering and selling bonds, whose duties include, among others, establishing the timing of a sale, preparation or approval of the documentation for the sale, sole authority to select the underwriters for negotiating the sale, and executing the bond purchase agreement on behalf of the state or the states agencies, is responsible for developing and implementing a competitive process for selection of underwriters for negotiated offerings of bonds. The competitive process may be conducted on an issue-by-issue basis or to establish one or more pools of underwriters for various types of issues. The competitive process shall have at least all of the following features:

(1)Solicitation of written qualifications from at least 20 underwriting firms.

(2)Consideration of the goals for minority and women business enterprise participation in professional bond services contracts.

(3)The written submissions shall be available for inspection at the office of the Treasurer for a period of at least six months.

(4)If a pool of underwriters is established, the competitive process shall be repeated at least every 24 months to reestablish the pool of underwriters.

(b)For negotiated offerings of bonds by state financing authorities that act as conduits to provide financing to other public, nonprofit, or private organizations, the Treasurer shall use the competitive process described in subdivision (a) to establish one or more pools of underwriters for each financing authority. The Treasurer may make additions to a pool without competitive solicitation, on a case-by-case determination upon the recommendation of a project applicant, where the Treasurer finds that the underwriter to be added has provided significant services to the project applicant with the expectation of compensation for those services from underwriting the revenue bonds which will fund the applicants project.

(c)The Treasurer may select underwriters for a negotiated sale of bonds by means other than as described in subdivision (a) if the Treasurer makes a written finding that extraordinary market conditions do not allow enough time to comply with subdivision (a) without risking financial detriment to the state.

(d)Subdivisions (a), (b), and (c) shall not apply to the issuance of state bonds for which the Treasurer is precluded by statute from selecting underwriters.

(e)For negotiated sales, the Treasurer shall maintain records of all cost information pertinent to the initial offering of all state bonds, except that in the case of bonds issued by a state financing authority, as described in subdivision (b), the issuing state financing authority shall instead be responsible for maintaining the same cost information on bonds it has issued. The information shall include, but not be limited to, all of the following:

(1)All amounts paid out of bond proceeds to the underwriter, detailed by management fee, takedown, risk, and underwriters expenses.

(2)All costs paid out of bond proceeds to rating agencies for rating of the bonds.

(3)All fees paid out of bond proceeds to bond counsels, trustees, or financial advisers relating to the initial offering of the bonds.

(4)The interest rate to be paid on the bonds.

(f)For competitive sales, the Treasurer shall maintain records of all bids submitted and the documentation of bid verifications including the terms of sale and the calculation of net interest cost or true interest cost.

(g)The State Auditor shall audit the cost records required to be maintained pursuant to subdivision (e) and conduct a review of the records required to be maintained pursuant to subdivision (f).

(h)The State Auditor shall report whether this section is being fully implemented. The State Auditor shall make cost and interest rate comparisons with similar initial bond offerings of other states where possible. The State Auditor shall submit a report to the Legislature on March 1, 1993, and March 1, 1995, for bonds sold during the two calendar years immediately preceding the year in which the report is due.

(i)The following provisions of the Public Contract Code do not apply to agreements entered into by the Treasurer in connection with the sale of any evidence of indebtedness:

(1)Section 10295.

(2)Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2.

(3)Chapter 3.9 (commencing with Section 12147) of Part 2 of Division 2.

SEC. 3.Chapter 3.9 (commencing with Section 12147) is added to Part 2 of Division 2 of the Public Contract Code, to read:3.9.Offshoring University of California and California State University Contracts12147.

(a)Notwithstanding any other law, except as provided in subdivision (e), neither the University of California nor the California State University may contract for services with a contractor or subcontractor unless that contractor or subcontractor certifies under penalty of perjury in his or her bid for the contact that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States.

(b)Notwithstanding any other law, except as provided in subdivision (e), neither the University of California nor the California State University may expend funds to train employees located in foreign countries or train contract employees who plan to relocate to a foreign country as part of the contract.

(e)This chapter shall apply to the University of California only to the extent that the Regents of the University of California act, by resolution, to make it applicable. as a condition of receiving state funding.

SEC. 4.

The people of the State of California do enact as follows:SECTION 1.

The Legislature finds and declares all of the following:

(a)The United States has lost nearly five million manufacturing jobs over the last 20 years, with at least 40 percent of these jobs outsourced to a foreign country.

(c)Contractors and subcontractors are using taxpayer dollars to create jobs in foreign countries. State taxpayer funds should be used to create jobs in the United States and in California.

SEC. 2.Section 5703 of the Government Code is amended to read:5703.

(a)Except as provided in subdivisions (b), (c), and (d), the Treasurer, in exercising the duties of agent for offering and selling bonds, whose duties include, among others, establishing the timing of a sale, preparation or approval of the documentation for the sale, sole authority to select the underwriters for negotiating the sale, and executing the bond purchase agreement on behalf of the state or the states agencies, is responsible for developing and implementing a competitive process for selection of underwriters for negotiated offerings of bonds. The competitive process may be conducted on a an issue-by-issue basis or to establish one or more pools of underwriters for various types of issues. The competitive process shall have at least all of the following features: