Bill Text: CA SB376 | 2015-2016 | Regular Session | Enrolled
Bill Title: Public contracts: University of California.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Vetoed) 2016-04-25 - Last day to consider Governors veto pursuant to Joint Rule 58.5. [SB376 Detail]
Download: California-2015-SB376-Enrolled.html
BILL NUMBER: SB 376 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 11, 2015
PASSED THE ASSEMBLY SEPTEMBER 10, 2015
AMENDED IN ASSEMBLY AUGUST 18, 2015
AMENDED IN ASSEMBLY JUNE 29, 2015
AMENDED IN SENATE JUNE 1, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Lara
(Coauthor: Senator Galgiani)
(Coauthors: Assembly Members Gonzalez and Thurmond)
FEBRUARY 24, 2015
An act to amend Section 10507.7 of, and to add Section 10507.6 to,
the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
SB 376, Lara. Public contracts: University of California.
Existing provisions of the California Constitution provide that
the University of California constitutes a public trust and require
the university to be administered by the Regents of the University of
California (regents), a corporation in the form of a board, with
full powers of organization and government, subject to legislative
control only for specified purposes, including such competitive
bidding procedures as may be applicable to the university by statute
for the letting of construction contracts, sales of real property,
and purchasing of materials, goods, and services. Existing law
requires the regents, except as provided, to let all contracts
involving an expenditure of $100,000 or more annually for goods and
materials or services, excepting personal or professional services,
to the lowest responsible bidder meeting certain specifications, or
to reject all bids. Existing law, until January 1, 2018, also
authorizes the bid evaluation and selection for these contracts to be
determined by the best value.
This bill would require a bidder, to qualify as a lowest
responsible bidder or best value awardee on contracts for specified
services, to certify in writing to the University of California (UC)
that the bid includes a total employee compensation package that is
valued on a per-employee basis at a level sufficient that it does not
materially undercut the average per-employee value of total
compensation for UC employees who perform comparable work at the
relevant campus, medical center, or laboratory at which the bidder
proposes to perform the work. The bill would require the UC to
include in its request for proposals a calculation of the average
per-employee value of total compensation for UC employees who perform
comparable work at the relevant location, as prescribed. The bill
would require contracts for services involving an expenditure of
$100,000 or more annually to include any renewals or extensions of
the contract that would result in an expenditure of $100,000 or more
annually.
This bill would exclude specified employees and public works from
these provisions, as provided.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares the following:
(a) It is a matter of statewide concern that responsible
competitive bidding at the University of California not undercut the
wages and benefits provided by the University of California for
comparable work, given that a significant percentage of University of
California employees already are eligible for public benefits and
any material decrease in the compensation of employees performing
such work would result in materially increased General Fund costs for
the provision of benefits.
(b) It is a matter of statewide concern that the University of
California not repeat past instances in which public resources have
been squandered via contracting out to for-profit private contractors
that charge significant administrative overhead.
SEC. 2. Section 10507.6 is added to the Public Contract Code, to
read:
10507.6. (a) For the purposes of this article, to qualify as a
lowest responsible bidder or best value awardee on any contract for
building maintenance, cleaning, or custodial services, call center
services, clerical services, dining and food services, gardening,
grounds keeping and plant nursery services, laborer services,
mailroom services, parking, shuttle bus, truck driving, or
transportation services, security services, storekeeper services,
patient care technical employee services, patient billing services,
medical transcribing services, patient escort services, or nursing
assistant services, a bidder shall certify in writing to the
University of California that the bid includes a total employee
compensation package, including fringe benefits, that is valued on a
per-employee basis at a level sufficient that it does not materially
undercut the average per-employee value of total compensation,
including fringe benefits, for employees of the University of
California who perform comparable work at the relevant campus,
medical center, or laboratory at which the bidder proposes to perform
the work.
(b) The University of California shall implement this section by
including in its request for proposals a calculation of the average
per-employee value of total compensation, including fringe benefits,
for employees of the University of California who perform comparable
work at the relevant campus, medical center, or laboratory, and that
calculation shall use all known cost escalators to project the future
rate of growth of average per-employee total compensation costs.
(c) The requirements of this section shall not apply to employees
subject to Section 1191.5 of the Labor Code or Section 214(c) of
Title 29 of the United States Code. Any employees covered by Section
1191.5 of the Labor Code or Section 214(c) of Title 29 of the United
States Code shall be omitted from all calculations and certifications
required by this section.
(d) This section does not apply to any work subject to Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the Labor
Code.
SEC. 3. Section 10507.7 of the Public Contract Code is amended to
read:
10507.7. (a) Except as provided for in this article, the
Regents of the University of California shall let all contracts
involving an expenditure of more than one hundred thousand dollars
($100,000) annually for goods and materials to be sold to the
University of California to the lowest responsible bidder meeting
specifications, or else reject all bids. Contracts for services to be
performed, other than personal or professional services, involving
an expenditure of one hundred thousand dollars ($100,000) or more
annually shall be made or entered into with the lowest responsible
bidder meeting specifications, or else all bids shall be rejected. If
the regents deem it to be for the best interest of the university,
the regents may, on the refusal or failure of the successful bidder
for materials, goods, or services to execute a tendered contract,
award it to the second lowest responsible bidder meeting
specifications. If the second lowest responsible bidder fails or
refuses to execute the contract, the regents may likewise award it to
the third lowest responsible bidder meeting specifications.
(b) For the purposes of this section, contracts for services
involving an expenditure of one hundred thousand dollars ($100,000)
or more annually shall include any renewal or extension of an
existing contract, if the renewal or extension involves an
expenditure of one hundred thousand dollars ($100,000) or more
annually.
