Bill Text: CA AB885 | 2023-2024 | Regular Session | Introduced
Bill Title: Public contracts: nonprofit organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - Filed with the Chief Clerk pursuant to Joint Rule 56. [AB885 Detail]
Download: California-2023-AB885-Introduced.html
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 885
| Introduced by Assembly Member Luz Rivas |
February 14, 2023 |
An act to add Chapter 8 (commencing with Section 15000) to Part 2 of Division 2 of the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 885, as introduced, Luz Rivas.
Public contracts: nonprofit organizations.
Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency be approved by the Department of General Services.
This bill would establish the California Nonprofit Fairness in Contracting Act and would define, among other terms, “covered contract” to mean a contract for goods or services by a state or local agency using state funds, including a grant made by a state or local agency using state funds. The bill would require a state or local agency to, among other things, establish a preference for covered contracts that last longer than one year when awarding a covered contract to a nonprofit, and would require those contracts to include a provision allowing for automatic cost of doing business increases. The bill would require a covered
contract to provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, as specified. By imposing new contracting requirements on local agencies, the bill would impose a state-mandated local program.
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 8 (commencing with Section 15000) is added to Part 2 of Division 2 of the Public Contract Code, to read:CHAPTER 8. California Nonprofit Fairness in Contracting Act
15000.
This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001.
For purposes of this chapter, the following definitions apply:(a) “Covered contract” means a contract for goods or services by a state agency or by a local agency using state funds. “Covered contract” includes a grant made by a state agency or by a local agency using state funds.
(b) “Local agency” means any city, county, special district, authority, or other political subdivision of the state.
(c) “Nonprofit organization” means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code.
15002.
(a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases.
