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

(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.