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AB-1080 Public contracts: bid preferences: employee health care coverage.(2017-2018)

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Date Published: 05/10/2017 09:00 PM
AB1080:v96#DOCUMENT

Amended  IN  Assembly  May 10, 2017
Amended  IN  Assembly  April 19, 2017
Amended  IN  Assembly  March 30, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1080


Introduced by Assembly Member Gonzalez Fletcher

February 16, 2017


An act to add Chapter 2.3 (commencing with Section 2030) to Part 1 of Division 2 of the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 1080, as amended, Gonzalez Fletcher. Public contracts: bid preferences: employee health care expenditures. coverage.
Existing law imposes various requirements with respect to contracting by public entities.
This bill would require a state agency awarding a public works contract specified contracts to provide a 2% 10% bid preference to a bidder or subcontractor that provided credible health care coverage, as defined, to employees during the 12-month period immediately preceding submission of the bid. The bill would require a bidder and its subcontractors to submit claim statements, on a form developed by the Department of General Services with the Department of Industrial Relations, certifying that the bidder and all of the listed subcontractors qualify for the bid preference. The bill would require the bidder and contractors to continue to make employee health care expenditures, provide credible health care coverage to employees, as specified. The bill would impose civil penalties for bidder and contractor violations of those requirements.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 2.3 (commencing with Section 2030) is added to Part 1 of Division 2 of the Public Contract Code, to read:
CHAPTER  2.3. Employee Health Care Coverage Bid Preference

2030.
 The Legislature finds and declares that the state and the state’s political subdivisions incur substantial direct and indirect expenses when employers do not pay for employee health care expenses. Accordingly, it makes economic sense for state agencies to offer a bid preference to contractors that pay for employee health care expenses for employees in California.

2031.
 As used in this chapter:
(a) “Contract” means either of the following:
(1) A public works contract.
(2) A contract for any of the following services:
(A) Package delivery.
(B) Custodial or janitorial services.
(C) Maintenance, construction, or repair, including, but not limited to, the services of plumbers and electricians.
(D) Landscaping.
(E) Parking attendants.
(F) Drivers.

(a)

(b) “Credible health care coverage” means any group policy, contract, or program that is written or administered by a disability insurer, health care service plan, fraternal benefits society, self-insured employer plan, or any other entity, in this state or elsewhere, that arranges or provides medical, hospital, and surgical coverage not designated to supplement other private or governmental plans.

(b)

(c) “State agency” means a department, division, board, bureau, commission, or agency of the executive branch of government.

2032.
 If a statute requires a state agency to award a public works contract to the lowest bidder or lowest responsible bidder, the state agency shall provide a 2 10 percent bid preference to a bidder that qualifies for the employee health care expenditure coverage bid preference. This preference to a bidder that qualifies for the employee health care expenditure coverage bid preference shall be calculated by reducing the bid by 2 10 percent of the amount of the lowest responsible bid for purposes of comparing the bid with competing bids.

2033.
 A bidder may claim the employee health care coverage bid preference only if the bidder and all of the bidder’s listed subcontractors each qualify for the bid preference.

2034.
 (a) A bidder or a subcontractor qualifies for the employee health care expenditure coverage bid preference if, during the 12-month period immediately preceding submission of the bid, the bidder or subcontractor provided credible health care coverage. coverage to employees. A bidder or a subcontractor that employed employees in California for more than three months but fewer than 12 months immediately preceding submission of the bid qualifies for the employee health care expenditure coverage bid preference if, during that period of time, the bidder or subcontractor provided credible health care coverage. coverage to employees.
(b) The bidder or subcontractor shall provide credible health care coverage to employees for not less than one year following acceptance of the bid.
(c) If a bidder or subcontractor fails to comply with subdivision (b), that bidder or subcontractor shall pay the state agency an amount equal to twice the cost that the bidder or subcontractor would have incurred for health care if it had complied with subdivision (b).

2035.
 (a) A bidder may claim an employee health care expenditure coverage bid preference by submitting separate statements from the bidder and all of the bidder’s listed subcontractors, each certifying that it qualifies for the bid preference. The Department of General Services, working with the Department of Industrial Relations, shall develop a form for this purpose, and a bidder that seeks the bid preference under this chapter, and all the bidder’s listed subcontractors, shall use that form.
(b) A person or entity that knowingly provides false information in the certification required by this section shall be subject to a civil penalty for each violation in the minimum amount of two thousand five hundred dollars ($2,500) and the maximum amount of twenty-five thousand dollars ($25,000). An action for a civil penalty under this section may be brought by any public prosecutor in the name of the people of the State of California.

2036.
 If the winning bidder has claimed an employee health care expenditure coverage bid preference, at the request of the state agency, the bidder and the bidder’s listed subcontractors shall supply to the state agency records sufficient to show that the bidder is entitled to the preference. The failure to supply the records within a reasonable time shall result in denial of the bid preference.