(a) (1) Notwithstanding any other law, on or after July 1, 2017, neither the University of California nor the California State University may contract for services with a contractor or subcontractor unless that contractor or subcontractor does either of the following:

(A) 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.

(B) Describes in his or her bid any parts of the work that will be performed by workers outside of the United States.

(2) If the University of California or the California State University enters into a services contract with a contractor whose bid indicates that specific work will be performed by workers outside of the United States, the University of California or the California State University, as appropriate, shall not, for the duration of that contract, displace an employee performing that specific work.

(b) Notwithstanding any other law, neither the University of California nor the California State University may expend funds to train service contract employees located in foreign countries or train 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.

(c) A contract entered into pursuant to subdivision (a) shall provide that, 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 and the contractor or subcontractor does not describe this work in his or her bid as referenced in subdivision (a), the contract shall be terminated for noncompliance, and the contractor or subcontractor shall forfeit penalties to the University of California or the California State University, as appropriate, in an amount equal to the amount paid by the university for the percentage of work that was performed with workers outside the United States.

(d) (1) A contractor shall be found to have violated subdivision (a) only to the extent that he or she fails to note in a bid any work to be accomplished by workers outside of the United States. The University of California or the California State University shall be found to have violated subdivision (a) only to the extent that the University of California or the California State University displaces an employee performing that specific work after having been notified in the contractor’s bid that the specific work would be performed by workers outside of the United States.

(2)  For purposes of this section, “displace” means the layoff, demotion, involuntary transfer to a new classification, involuntary transfer to a new location, or time base reduction of an employee, during the operation of a contract that is subject to this chapter, where the employee is performing the specific work that a contractor has identified as to be performed by workers outside of the United States and the reason for the layoff, demotion, involuntary transfer to a new classification, or time base reduction of the employee is a direct result of the University of California or the California State University entering into the contract that is subject to this chapter.

(3) Notwithstanding the limitations imposed by subdivisions (a), (b), and (c), nothing in this section shall 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.

(e) This chapter does not apply to a contract if refusing to award that contract, on the basis that the contractor or subcontractor does not certify under penalty of perjury that the contract, and any subcontract performed under that contract, will be performed solely with workers within the United States, 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 that California has consented to.

(f) This chapter does not apply to either of the following:

(1) Contracts relating to study abroad programs conducted by the University of California or the California State University.

(2) Contracts relating to international teaching, research, or public service activities and projects conducted by the University of California or the California State University.

(Added by Stats. 2017, Ch. 844, Sec. 2. (AB 848) Effective January 1, 2018.)