Chapter 3.7. Prohibition Of The Offshoring Of State Public Benefits Contracts of California Public Contract Code >> Division 2. >> Part 2. >> Chapter 3.7.
(a) Notwithstanding any other law, any state agency
authorized to enter into contracts relating to public benefit
programs shall only contract for services provided by a call center
that directly serves applicants for, recipients of, or enrollees in,
those public benefit programs with a contractor that certifies in its
bid for the contract that the services provided under the contract
and any subcontract performed under that contract, to applicants for,
recipients of, or enrollees in, those public benefit programs, will
be performed solely with workers employed in California. Any
contractor that knowingly provides false information in the
certification required by this subdivision shall be subject to a
civil penalty in an amount of up to ten thousand dollars ($10,000),
in addition to any other remedies available to the state agency. An
action for a civil penalty under this subdivision may be brought by
any public prosecutor in the name of the people of the State of
(b) For purposes of this section:
(1) "Call center" means a building, facility, or operation where
customer or client services or assistance is provided by telephone,
fax, email, text, or Web-based interaction.
(2) "Public benefit programs" means California Work Opportunity
and Responsibility to Kids (CalWORKs), CalFresh, Medi-Cal, Healthy
Families, and the California Healthcare Eligibility, Enrollment, and
(c) (1) The contract shall provide that in the event a contractor
or subcontractor performs the contract or the subcontract for call
center services with workers not employed in California during the
life of the contract, the state has the right to terminate the
contract for noncompliance and the contractor or subcontractor shall
pay a penalty to the state agency in an amount equal to the amount
paid by the state agency for the percentage of work that was
performed with workers not employed in California.
(2) The penalty authorized in paragraph (1) shall be in addition
to any other applicable penalty, including, but not limited to, the
penalty provided in subdivision (a).
(d) (1) Notwithstanding subdivision (a), a state agency may
conduct a solicitation without applying this section if the
California Health and Human Services Agency or the board of the
California Health Benefit Exchange makes any of the following
(A) A prior solicitation was conducted and the bids received were
priced unreasonably high as a result of including these provisions.
(B) A prior solicitation was conducted and fewer than two bids
were received as a result of including these provisions.
(C) The services are needed in cases of emergency where immediate
acquisition is necessary for the protection of the public health,
welfare or safety.
(2) If the agency or board makes a determination described in
paragraph (1), that entity shall submit a report to the Assembly
Committee on Jobs, Economic Development and the Economy and to the
Senate Committee on Labor and Industrial Relations on or before the
last day of the quarter following the quarter in which the
determination was made. The report shall include the reason for
making the determination.
(e) This section shall not apply to the following:
(1) A contract or subcontract, if implementation 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 to which the State of California has consented.
(2) A contract or subcontract, including extensions of that
contract or subcontract, that results from a request for proposal or
bid that occurred prior to the effective date of the act that adds
(3) A contract for a public benefit program between a state agency
and a health care service plan or a specialized health care service
plan regulated by the Department of Managed Health Care, and any
subcontract performed under that contract, or a disability insurer or
specialized health insurer regulated by the Department of Insurance,
and any subcontract performed under that contract.
(f) This section shall be construed so as to not conflict with,
and be applied consistent with, federal law.