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AB-2361 University of California: outsource contracts.(2017-2018)

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Date Published: 08/27/2018 09:00 PM
AB2361:v95#DOCUMENT

Enrolled  August 27, 2018
Passed  IN  Senate  August 24, 2018
Passed  IN  Assembly  May 31, 2018
Amended  IN  Assembly  May 01, 2018
Amended  IN  Assembly  April 19, 2018
Amended  IN  Assembly  April 09, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2361


Introduced by Assembly Member Weber
(Coauthor: Assembly Member Gonzalez Fletcher)

February 13, 2018


An act to add Article 6 (commencing with Section 92060) to Chapter 1 of Part 57 of Division 9 of Title 3 of the Education Code, relating to postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 2361, Weber. University of California: outsource contracts.
Existing law establishes the 3 segments of public postsecondary education in this state, including the University of California, which is administered by the Regents of the University of California.
This bill would request the Regents of the University of California to record and report to the Legislature, through a publicly accessible Internet Web site maintained by the university and updated each January 1 and July 1, specified information regarding service work performed by a contractor pursuant to an outsource contract, as defined, with links to specified related documents. To qualify as the lowest responsible bidder or the best value awardee, or otherwise to perform any service work for the University of California, the bill would require that a contractor agree to provide the university with specified information. If a contractor fails to provide any of the required information, or provides information that is false, the contractor would be disqualified from bidding on any contract with the university for a period of 2 calendar years from the date that the accurate information should have been provided or the date on which the violation was discovered, whichever is later.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The California State Auditor has found that service workers employed by private contractors to provide services to the University of California are compensated far below the compensation level that the University of California provides to its own employees performing comparable services at the same locations.
(b) The California State Auditor has found that the University of California has not shown sufficient justification for displacing its own career employees with lower paid, contract workers.
(c) The California State Auditor has found that the University of California has not taken sufficient steps to develop or maintain a centralized database of contract labor or to ensure that its policies governing the compensation of contract labor are enforced.
(d) The California State Auditor has found that the University of California has not adequately measured cost savings or efficiencies that may have resulted from its contracting practices.
(e) It is a matter of statewide concern that the University of California not repeat past instances in which the university has squandered valuable public resources by means of contracting out to for-profit service contractors that charge significant administrative overhead and maximize their profits through low-wage practices.
(f) The California State Auditor found that the University of California renews contracts repeatedly, often without regard for competitive bidding requirements resulting in a lack of transparency that is further compounded by the fact that the university’s contracting practices vary from location to location.

SEC. 2.

 Article 6 (commencing with Section 92060) is added to Chapter 1 of Part 57 of Division 9 of Title 3 of the Education Code, to read:
Article  6. Outsource Contracts

92060.
 For purposes of this article, the following terms have the following meanings:
(a) “Contractor” means an entity that is a party to an outsource contract, including any vendor, management company, broker, staffing agency, or other third-party intermediary. “Contractor” also includes a contractor’s subcontractor, vendor, staffing agency, or other provider of labor, insofar as that entity provides employees who are not employees of the University of California to perform services at a university location or for the university’s benefit.
(b) “Outsource contract” means a contract, purchase order, or other agreement to which the University of California is a party or beneficiary, including any extension, renewal, change order, or other revision to the contract, that provides for or allocates funding for service work to be performed by employees who are not employees of the University of California at any university location or for the university’s benefit. “Outsource contract” also includes any subcontract or other arrangement through which a third party provides employees who are not university employees to perform service work at any university location or for the University of California.
(c) “Service work” means building maintenance, cleaning or custodial services, call center services, dining and food services, gardening, grounds keeping and plant nursery services, laborer services, mail room services, parking, shuttle bus, or transportation services, security services, storekeeper services, truck driving services, patient care technical employee services, patient billing services, medical transcribing services, patient escort services, or nursing assistant services.
(d) “University location” means any building, facility, clinic, or grounds within or affiliated with any University of California campus, medical center, laboratory, or administrative facility that is owned, leased, or occupied in whole or in part by the University of California. “University location” includes any dormitory or other student housing on property owned or leased by the University of California.

92061.
 The Regents of the University of California shall follow the directions of this article with respect to service work performed by a contractor pursuant to an outsource contract.

92062.
 (a) The Regents of the University of California are requested to record and report to the Legislature, through a publicly accessible Internet Web site maintained by the university, the following information regarding each active outsource contract:
(1) The university’s unique identification number, if any, for the outsource contract.
(2) The full legal name of each contractor signatory to the outsource contract.
(3) The start date and end date of the outsource contract.
(4) The availability and length of all potential extensions to the term of the outsource contract.
(5) Whether the outsource contract was awarded pursuant to competitive bidding and, if not, the nature of the claimed exemption from competitive bidding requirements.
(6) Whether the outsource contractor is a minority- or women-owned business.
(7) A description of the work required to be performed pursuant to the outsource contract.
(8) The total cost to be incurred by the university over the term of the outsource contract.
(9) The total amount spent by the university in each prior calendar year pursuant to the outsource contract.
(10) The total amount authorized to be spent by the university in the current calendar year pursuant to the outsource contract.
(11) The name of each university department responsible for the work performed pursuant to the outsource contract.
(12) The name of each specific university location where the work is to be performed pursuant to the outsource contract.
(13) The number of employees in each job classification performing work pursuant to the outsource contract.
(14) The hourly rate of pay to be provided to employees in each job classification performing work pursuant to the outsource contract during the calendar year.
(15) The average hourly cost of fringe benefits to be provided to employees performing work pursuant to the outsource contract during the calendar year.
(b) The Regents of the University of California are requested to include on the publicly accessible Internet Web site links to a complete copy of each outsource contract, inclusive of amendments, attachments, price schedules, and agreements between the contractor and any subcontractor, vendor, or service provider. The Regents of the University of California are further requested to update the publicly accessible Internet Web site on January 1 and July 1 of each calendar year with links to each document reflecting a decision to renew or extend the term of any outsource contract, and to also provide a link to each purchase order or other documentation used to authorize the allocation of moneys to pay for contract labor in relation to the underlying outsource contract during the same calendar year.
(c) The Regents of the University of California are requested to record and report, by January 31 of each calendar year, on the publicly accessible Internet Web site, the following information regarding each individual who performed service work at any university location pursuant to an outsource contract during the prior calendar year:
(1) Unique individual identifier.
(2) Job title.
(3) Original date on which the individual first began working at any university location.
(4) Date on which the individual began working at any university location during the calendar year.
(5) University location worked at during the calendar year, including name of the campus, medical center, laboratory, or administrative facility, if any.
(6) Hourly rate or rates of pay.
(7) Total hours worked at any university location.
(8) Gross pay received for work performed pursuant to the outsource contract.
(9) Total value of fringe benefits received for work performed pursuant to the outsource contract.
(d) The university shall substitute a unique identifier in place of an individual’s name and shall use the same unique identifier for that individual for all periods of time worked by that individual.
(e) For any contract awarded on or after January 1, 2019, to qualify as the lowest responsible bidder or best value awardee, or to otherwise perform any service work for the University of California, a contractor shall agree in writing, in advance, to provide the university with any and all information necessary to comply with subdivisions (a) and (c).
(f) (1) If a contractor fails to provide any information described in subdivision (a) or (c), or provides information that is false, the contractor shall be disqualified from bidding on any contract with the university, or entering into any contract extension, renewal, or other agreement with the university or a university contractor for a period of two calendar years from the date that the information should have been provided, or the date on which the violation was discovered, whichever is later.
(2) If a contractor fails to provide any information described in subdivision (a) or (c), or provides information that is false, and the university declares the contractor to be a qualified bidder for future contracting while the contractor is disqualified from bidding pursuant to paragraph (1), the Legislature shall deduct from the subsequent fiscal year’s appropriation of moneys from the General Fund for the university an amount equal to the value of all contracts for which the contractor is awarded a contract.
(g) If the university fails to provide any information identified in subdivisions (a) and (c) that it has requested and obtained from the contractor, or fails to provide the information described in subdivision (b), the Legislature shall deduct from the subsequent fiscal year’s appropriation of moneys from the General Fund for the university an amount equal to the value of all contracts for which information is omitted in whole or in part.