(1) Existing law prohibits, with specified exceptions, 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 provides an exception for contracts 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 for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance. Existing law also authorizes the state to terminate a contract relating to services provided by a call center if the contractor or subcontractor performs services with workers not employed in California.
This bill would, until July 1, 2030, instead require any state agency authorized to provide or enter into contracts relating to public benefit programs, or any local government agency authorized to provide or enter into contracts relating to public benefit programs funded by state funds, as specified, to provide services through, or contract for services provided by, a call center that directly serves callers with services performed solely with and by workers employed in California. The bill would also prohibit a state agency or specified local agency from using, or contracting with a call center that uses, artificial intelligence (AI) or automated decision systems (ADS) that would eliminate or automate core job functions of a worker, as specified. The bill would require an agency that utilizes AI or ADS that impact core job functions of workers to notify the workers, their collective bargaining representatives, and the public within a specified timeframe about prescribed information, including a general description of the AI or ADS system. The bill would require a contractor to certify in its bid that any services provided by the contractor or its subcontractors are to be performed with and by workers employed in California. The bill would also extend these contracting requirements to local government agencies. By imposing new requirements on local government agencies, this bill would impose a state-mandated local program.
This bill would, until July 1, 2030, delete the above-described exception for contracts 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 for contracts between a state agency and a disability insurer or specialized health insurer regulated by the Department of Insurance.
This bill would, until July 1, 2030, make the above-described provisions inapplicable to a designated public hospital system, a health care district, or a health care service plan that contracts with the State Department of Health Care Services, as specified.
This bill would, until July 1, 2030, extend the right to terminate a contract to local government agencies. The bill would also extend the right to terminate a contract in the case that the contractor or subcontractor does not employ workers.
This bill would provide that the bill's provisions would not apply to specified contracts or subcontracts, including, among others, extensions of contracts or subcontracts, that result from a request for proposal or bid that occurred before January 1, 2025, and contracts by a county human services agency for translation or interpretation services.
(2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
(3) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Statutes affected:
SB1220: 12140 PCC
02/15/24 - Introduced: 12140 PCC
04/02/24 - Amended Senate: 12140 PCC
04/10/24 - Amended Senate: 12140 PCC
05/16/24 - Amended Senate: 12140 PCC
07/03/24 - Amended Assembly: 12140 PCC
08/19/24 - Amended Assembly: 12140 PCC
09/04/24 - Enrolled: 12140 PCC
SB 1220: 12140 PCC