SECTIONS 10475-10481 - California Statutes

PUBLIC CONTRACT CODE

SECTION 10475-10481

10475. The Legislature hereby finds and declares all of the
following:
(a) On September 21, 2004, in addressing the United Nations
General Assembly, President George W. Bush affirmed the Secretary of
State's finding and stated, "At this hour, the world is witnessing
terrible suffering and horrible crimes in the Darfur region of Sudan,
crimes my government has concluded are genocide."
(b) The federal government has imposed sanctions against the
Government of Sudan since 1997. These sanctions are monitored through
the United States Treasury Department's Office of Foreign Assets
Control (OFAC).
(c) Since 1993, the United States Secretary of State has
determined Sudan is a country whose government has repeatedly
provided support for acts of international terrorism, thereby
restricting United States assistance, defense exports and sales, and
financial and other transactions with the Government of Sudan.
(d) On December 31, 2007, President George W. Bush signed the
Sudan Accountability and Divestment Act (Public Law 110-174). The
legislation passed the Senate and the House of Representatives
unanimously. That act authorizes state and local governments to adopt
policies to divest from, and prohibit, contracts with problematic
companies operating in Sudan's oil, power, mineral, and military
sectors. That act also prohibits the federal government from
contracting with these companies.
(e) On September 25, 2006, Governor Arnold Schwarzenegger stated,
"Divesting will show our defiance of a government that murders" when
signing Assembly Bill 2941 into law enabling the nation's two largest
pension funds to divest from investments in Sudan.

10476. As used in this article, the following definition applies:
"Scrutinized company" means a company in Sudan that is involved in
power production activities, mineral extraction activities,
oil-related activities, or the production of military equipment, but
excludes a company that can demonstrate any of the following:
(a) Its business operations are conducted under contract directly
and exclusively with the regional government of southern Sudan.
(b) Its business operations are conducted under a license from the
Office of Foreign Assets Control, or are expressly exempted under
federal law from the requirement to be conducted under such a
license.
(c) Its business operations consist of providing goods or services
to marginalized populations of Sudan.
(d) Its business operations exclusively consist of providing goods
or services to an internationally recognized peacekeeping force or
humanitarian organization.
(e) Its business operations consist of providing goods or services
that are used only to promote health or education.
(f) Its business operations with the Government of Sudan will be
voluntarily suspended for the entire duration of the contract for
goods or services for which they have bid on, or submitted a proposal
for, a contract with a state agency.
(g) It has adopted, publicized, and is implementing a formal plan
to cease business operations within one year and to refrain from
conducting any new business operations.

10477. (a) A scrutinized company is ineligible to, and shall not,
bid on or submit a proposal for a contract with a state agency for
goods or services.
(b) (1) Notwithstanding subdivision (a), the Director of General
Services may permit a scrutinized company, on a case-by-case basis,
to bid on or submit a proposal for a contract with a state agency for
goods or services, if it is in the best interests of the state to
permit the scrutinized company to bid on or submit a proposal for one
or more contracts with a state agency for goods or services.
(2) In making this determination, the Director of General Services
may utilize the following resources:
(A) Verification by an independent third party or nonprofit
organization that a company is doing either of the following:
(i) Undertaking significant humanitarian efforts in conjunction
with an international organization, the Government of Sudan, the
regional government of southern Sudan, or a nonprofit organization to
benefit one or more marginalized populations of Sudan. The party or
organization providing the verification or an independent third party
must evaluate and certify that the significant humanitarian efforts
are substantial in relation to the company's Sudan business
operations.
(ii) Through engagement with the Government of Sudan, materially
improving conditions for the genocidally victimized population in
Darfur.
(B) Consideration of a National Interest Waiver issued by the
President of the United States excluding a company from the federal
contract prohibitions provisions of the Sudan Accountability and
Divestment Act (Public Law 110-174).

10478. (a) A state agency shall require a company that submits a
bid or proposal with respect to a contract for goods or services,
that currently or within the previous three years has had business
activities or other operations outside of the United States, to
certify that the company is not a scrutinized company.
(b) A state agency shall not require a company that submits a bid
or proposal with respect to a contract for goods or services, and
that currently or within the previous three years has had business
activities or other operations outside of the United States, to
certify that the company is not a scrutinized company, if the company
has obtained permission to bid on or submit a proposal for a
contract with a state agency for goods or services pursuant to
subdivision (b) of Section 10477.

10479. (a) If the Department of General Services determines that a
company has submitted a false certification under Section 10478, the
company shall be subject to all of the following:
(1) The company is liable for a civil penalty in an amount that is
equal to the greater of two hundred fifty thousand dollars
($250,000) or twice the amount of the contract for which a bid or
proposal was submitted.
(2) The state agency or the Department of General Services may
terminate the contract with the company.
(3) The company is ineligible to, and shall not, bid on a state
contract for a period of not less than three years from the date the
state agency determines that the company submitted the false
certification.
(b) The Department of General Services shall report to the
Attorney General the name of the company that the Department of
General Services determined had submitted a false certification under
Section 10478, together with its information as to the false
certification, and the Attorney General shall determine whether to
bring a civil action against the company. The company shall pay all
costs and fees the plaintiff incurred in a civil action, including
costs incurred by the state agency and the Department of General
Services for investigations that led to the finding of the false
certification and all costs and fees incurred by the Attorney
General.

10480. This act shall be repealed upon affirmative action of the
Legislature. Provided, that in determining whether to repeal this
act, by way of suggestion and guidance only and without binding or in
any way inhibiting the discretion of future sessions of the
Legislature, it is submitted that the occurrence of any of the
following should be construed and deemed to be a basis for repealing
this act:
(a) The Congress or President of the United States declares the
Darfur genocide has been halted for at least 12 months.
(b) The United States revokes all sanctions imposed against the
Government of Sudan.
(c) The President of the United States has certified to Congress
that the Government of Sudan has honored its commitments to do all of
the following:
(1) Abide by United Nations Security Council Resolution 1769
(2007).
(2) Cease attacks on civilians.
(3) Demobilize and demilitarize the Janjaweed and associated
militias.
(4) Grant free and unfettered access for delivery of humanitarian
assistance.
(5) Allow for the safe and voluntary return of refugees and
internally displaced persons.
(d) The Congress or President of the United States, through
legislation or executive order, declares the contract prohibition of
the type provided for in this act interferes with the conduct of
United States foreign policy.
(e) Such other circumstances as the Legislature determines to
warrant the discontinuance of the provisions of this article.

10481. (a) If any one or more provision, section, subsection,
sentence, clause, phrase, or word of this act or the application
thereof to any person or circumstance is found to be invalid,
illegal, unenforceable, or unconstitutional, the same is hereby
declared to be severable and the balance of this act shall remain
effective and functional notwithstanding such invalidity, illegality,
unenforceability, or unconstitutionality.
(b) The Legislature hereby declares it would have passed this act,
and each provision, section, subsection, sentence, clause, phrase or
word thereof, irrespective of the fact that any one or more
provision, section, subsection, sentence, clause, phrase, or word be
declared invalid, illegal, unenforceable, or unconstitutional.