Amended IN Assembly March 30, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1080Introduced by Assembly Member Gonzalez FletcherFebruary 16, 2017 An act to amend Section 350 of the Labor Code, relating to employment. 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 DIGESTAB 1080, as amended, Gonzalez Fletcher. Gratuities. Public contracts: bid preferences: employee health care expenditures.Existing law imposes various requirements with respect to contracting by public entities.This bill would require a state agency awarding a public works contract to provide a 2% bid preference to a bidder whose employee health care expenditures, and those of its subcontractors, are at least 6.5% of the aggregate Social Security wages paid to its employees in California. 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, as specified. The bill would impose civil penalties for bidder and contractor violations of those requirements.Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or part thereof that is paid, given to, or left for an employee by a patron. Existing law defines the terms employer, employee, and gratuity, among others, for purposes of these provisions.This bill would make nonsubstantive changes to the definitions in these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe 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 Expenditure Bid Preference2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.SECTION 1.Section 350 of the Labor Code is amended to read:350.As used in this article, unless the context indicates otherwise:(a)Employer means every person engaged in a business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis.(b)Employee means every person, including aliens and minors, rendering actual service in a business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis.(c)Employing includes hiring, or in any way contracting for, the services of an employee.(d)Agent means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.(e)Gratuity includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.(f)Business means any business establishment or enterprise, regardless of where conducted.
Amended IN Assembly March 30, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1080Introduced by Assembly Member Gonzalez FletcherFebruary 16, 2017 An act to amend Section 350 of the Labor Code, relating to employment. 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 DIGESTAB 1080, as amended, Gonzalez Fletcher. Gratuities. Public contracts: bid preferences: employee health care expenditures.Existing law imposes various requirements with respect to contracting by public entities.This bill would require a state agency awarding a public works contract to provide a 2% bid preference to a bidder whose employee health care expenditures, and those of its subcontractors, are at least 6.5% of the aggregate Social Security wages paid to its employees in California. 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, as specified. The bill would impose civil penalties for bidder and contractor violations of those requirements.Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or part thereof that is paid, given to, or left for an employee by a patron. Existing law defines the terms employer, employee, and gratuity, among others, for purposes of these provisions.This bill would make nonsubstantive changes to the definitions in these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly March 30, 2017
Amended IN Assembly March 30, 2017
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Assembly Bill No. 1080
Introduced by Assembly Member Gonzalez FletcherFebruary 16, 2017
Introduced by Assembly Member Gonzalez Fletcher
February 16, 2017
An act to amend Section 350 of the Labor Code, relating to employment. 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
## LEGISLATIVE COUNSEL'S DIGEST
AB 1080, as amended, Gonzalez Fletcher. Gratuities. Public contracts: bid preferences: employee health care expenditures.
Existing law imposes various requirements with respect to contracting by public entities.This bill would require a state agency awarding a public works contract to provide a 2% bid preference to a bidder whose employee health care expenditures, and those of its subcontractors, are at least 6.5% of the aggregate Social Security wages paid to its employees in California. 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, as specified. The bill would impose civil penalties for bidder and contractor violations of those requirements.Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or part thereof that is paid, given to, or left for an employee by a patron. Existing law defines the terms employer, employee, and gratuity, among others, for purposes of these provisions.This bill would make nonsubstantive changes to the definitions in these provisions.
Existing law imposes various requirements with respect to contracting by public entities.
This bill would require a state agency awarding a public works contract to provide a 2% bid preference to a bidder whose employee health care expenditures, and those of its subcontractors, are at least 6.5% of the aggregate Social Security wages paid to its employees in California. 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, as specified. The bill would impose civil penalties for bidder and contractor violations of those requirements.
Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or part thereof that is paid, given to, or left for an employee by a patron. Existing law defines the terms employer, employee, and gratuity, among others, for purposes of these provisions.
This bill would make nonsubstantive changes to the definitions in these provisions.
## Digest Key
## Bill Text
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 Expenditure Bid Preference2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.SECTION 1.Section 350 of the Labor Code is amended to read:350.As used in this article, unless the context indicates otherwise:(a)Employer means every person engaged in a business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis.(b)Employee means every person, including aliens and minors, rendering actual service in a business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis.(c)Employing includes hiring, or in any way contracting for, the services of an employee.(d)Agent means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.(e)Gratuity includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.(f)Business means any business establishment or enterprise, regardless of where conducted.
The people of the State of California do enact as follows:
## 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 Expenditure Bid Preference2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.
SECTION 1. Chapter 2.3 (commencing with Section 2030) is added to Part 1 of Division 2 of the Public Contract Code, to read:
### SECTION 1.
CHAPTER 2.3. Employee Health Care Expenditure Bid Preference2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.
CHAPTER 2.3. Employee Health Care Expenditure Bid Preference2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.
CHAPTER 2.3. Employee Health Care Expenditure Bid Preference
CHAPTER 2.3. Employee Health Care Expenditure Bid Preference
2030. The Legislature finds and declares that the state and the states 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.
2030. The Legislature finds and declares that the state and the states 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) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.(2) Reimbursement to employees for expenses incurred in the purchase of health care services.(3) Payments to a third party for the purpose of providing health care services for employees.(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.(5) Costs incurred in the direct delivery of health care services to employees.(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.(d) State agency means a department, division, board, bureau, commission, or agency of the executive branch of government.
2031. As used in this chapter:
(a) Aggregate California employee health care expenditures means all amounts paid by the bidder, or a subcontractor, to the bidders, or subcontractors, employees in California or to a third party on behalf of the bidders, or subcontractors, employees in California, for the purpose of providing health care services to the employees or reimbursing the cost of those services for the employees, including, but not limited to, all of the following:
(1) Contributions on behalf of employees to a health savings account, as defined under Section 223 of the Internal Revenue Code, or to any other account having substantially the same purpose or effect without regard to whether the contributions qualify for a tax deduction or are excludable from employee income.
(2) Reimbursement to employees for expenses incurred in the purchase of health care services.
(3) Payments to a third party for the purpose of providing health care services for employees.
(4) Payments pursuant to a collective bargaining agreement for the purpose of providing health care services for employees.
(5) Costs incurred in the direct delivery of health care services to employees.
(b) Aggregate California social security wages means the aggregate amount of wages paid to all of the bidders, or subcontractors, employees in California, not including any wages that are above the federal Social Security contribution and benefit base, sometimes referred to as the social security wage base, for the year in which they are paid.
(c) Health care services means medical care, services, or goods that may qualify as tax deductible medical care expenses under Section 213 of the Internal Revenue Code, or medical care, services, or goods having substantially the same purpose or effect as those deductible expenses.
(d) 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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.
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 percent bid preference to a bidder that qualifies for the employee health care expenditure bid preference. This preference shall be calculated by reducing the bid by 2 percent of the amount of the bid for purposes of comparing the bid with competing bids.
2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.
2033. A bidder may claim the employee health care expenditure bid preference only if the bidder and all of the bidders listed subcontractors each qualify for the bid preference.
2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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).
2034. (a) A bidder or a subcontractor qualifies for the employee health care expenditure bid preference if, during the 12-month period immediately preceding submission of the bid, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California social security wages. 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 bid preference if, during that period of time, the bidders or subcontractors aggregate California employee health care expenditures were at least equal to 6.5 percent of the bidders or subcontractors aggregate California Social Security wages.
(b) The bidder or subcontractor shall spend at least 6.5 percent of the bidders or subcontractors aggregate California social security wages on health care for its 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 bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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.
2035. (a) A bidder may claim an employee health care expenditure bid preference by submitting separate statements from the bidder and all of the bidders 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 bidders 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 bid preference, at the request of the state agency, the bidder and the bidders 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.
2036. If the winning bidder has claimed an employee health care expenditure bid preference, at the request of the state agency, the bidder and the bidders 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.
As used in this article, unless the context indicates otherwise:
(a)Employer means every person engaged in a business or enterprise in this state that has one or more persons in service under any appointment, contract of hire, or apprenticeship, express or implied, oral or written, irrespective of whether the person is the owner of the business or is operating on a concessionaire or other basis.
(b)Employee means every person, including aliens and minors, rendering actual service in a business for an employer, whether gratuitously or for wages or pay, whether the wages or pay are measured by the standard of time, piece, task, commission, or other method of calculation, and whether the service is rendered on a commission, concessionaire, or other basis.
(c)Employing includes hiring, or in any way contracting for, the services of an employee.
(d)Agent means every person other than the employer having the authority to hire or discharge any employee or supervise, direct, or control the acts of employees.
(e)Gratuity includes any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.
(f)Business means any business establishment or enterprise, regardless of where conducted.