State contracts: certification process: forced labor and human trafficking.

Assembly Member Stefani's proposal to amend California's Public Contract Code introduces comprehensive requirements for state contractors to prevent forced labor and human trafficking in government procurement. The legislation expands existing certification mandates while establishing new compliance and enforcement mechanisms.

The bill requires contractors to implement detailed compliance plans before receiving state contracts. These plans must include employee awareness programs, secure violation reporting systems, and recruitment oversight procedures tailored to each contract's scope and risk level. Contractors must certify that neither they nor their subcontractors engage in prohibited practices such as charging recruitment fees, withholding identity documents, or using misleading hiring tactics.

New enforcement provisions authorize state agencies to suspend payments, terminate contracts, or debar contractors for violations. Contracting officers must promptly notify oversight agencies and law enforcement upon receiving credible information about prohibited activities. The bill preserves contractors' rights to administrative hearings while adding consideration of both mitigating factors, like good faith compliance efforts, and aggravating circumstances such as failure to address known violations.

The legislation applies to all state agency contracts regardless of performance location, though it provides limited exemptions for small credit card purchases under $2,500. Implementation follows a phased approach, with up to one year for apparel contracts and three years for other procurement categories based on documented risks and operational feasibility.