CA AB759

Prohibits state agencies from contracting with expatriate corporations or their subsidiaries, except as provided in specific exemptions.

Defines an "expatriate corporation" as a foreign incorporated entity that is publicly traded in the United States, has the U.S. as its principal trading market, has no substantial business activities in its place of incorporation, and meets certain ownership criteria related to domestic corporations or partnerships.

Excludes from the definition of "expatriate corporation" foreign entities that are created under laws of countries with comprehensive income tax treaties with the United States and are considered residents of those countries for treaty purposes.

Allows state agencies to contract with expatriate corporations that existed before January 1, 2004, if the entity provides specified shareholder rights protections, uses worldwide combined reporting for tax purposes, and maintains at least $50 million in U.S. assets, bonds, or directors' and officers' insurance.

Permits the chief executive officer of a state agency to waive the prohibition for contracts necessary to meet compelling public interests, such as essential services, public health and safety, or emergencies.