Bill Text: CA SB376 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Amended.html

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BILL NUMBER: SB 376	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2015
	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Lara

                        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, as amended, 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  more than  $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,  
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, with respect to contracts for
 services, would remove   services involving an
expenditure of $100,000 or more, would not except  personal
services from the lowest responsible bidder  requirement
exemption and   requirement. The bill  would
require contracts for services involving an expenditure 
exceeding   of  $100,000  or more 
annually to include any renewals or extensions of the contract that
 will also   would  result in an
expenditure  exceeding   of  $100,000 
or more  annually. 
   This bill would exclude specified employees and public works from
these provisions, as provided. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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,   awardee on any contract for building
maintenance, cleaning, or custodial services, call center services,
dining services, grounds keeping services, laborer services, mail
room services, parking or transportation services, security services,
or patient care technical employee or nursing assistant services,
 a bidder shall certify  the following  in
writing to the University of  California: 
    (a)     That 
 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 
paragraph   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. 
   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 article.  
   (c) 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 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, on the refusal or failure of the successful bidder for
materials, goods, or services to execute a tendered contract, may
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.