California Bill Prevents Contract Awards to Companies With Invalid Conflict Minerals Reports

In California, Senate Bill 861 was introduced on February 18 and provides for specific economic ramifications of companies that do not put forth acceptable due diligence efforts in complying with the federal Conflict Minerals Reports under Section 1502(b) of the Dodd-Frank Wall Street Reform Act.

The bill establishes the definition of a “scrutinized company” as a company that has filed a Conflict Minerals Report that is subsequently determined to be an “unreliable determination” by SEC under the law.

Section 2 of the California bill modifies Section 10490 of the Public Contract Code to mandate that

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.

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