| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 885Introduced by Assembly Member Luz RivasFebruary 14, 2023 An act to add Chapter 8 (commencing with Section 15000) to Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 885, as introduced, Luz Rivas. Public contracts: nonprofit organizations.Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency be approved by the Department of General Services.This bill would establish the California Nonprofit Fairness in Contracting Act and would define, among other terms, covered contract to mean a contract for goods or services by a state or local agency using state funds, including a grant made by a state or local agency using state funds. The bill would require a state or local agency to, among other things, establish a preference for covered contracts that last longer than one year when awarding a covered contract to a nonprofit, and would require those contracts to include a provision allowing for automatic cost of doing business increases. The bill would require a covered contract to provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, as specified. By imposing new contracting requirements on local agencies, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 8 (commencing with Section 15000) is added to Part 2 of Division 2 of the Public Contract Code, to read: CHAPTER 8. California Nonprofit Fairness in Contracting Act15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 885Introduced by Assembly Member Luz RivasFebruary 14, 2023 An act to add Chapter 8 (commencing with Section 15000) to Part 2 of Division 2 of the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 885, as introduced, Luz Rivas. Public contracts: nonprofit organizations.Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency be approved by the Department of General Services.This bill would establish the California Nonprofit Fairness in Contracting Act and would define, among other terms, covered contract to mean a contract for goods or services by a state or local agency using state funds, including a grant made by a state or local agency using state funds. The bill would require a state or local agency to, among other things, establish a preference for covered contracts that last longer than one year when awarding a covered contract to a nonprofit, and would require those contracts to include a provision allowing for automatic cost of doing business increases. The bill would require a covered contract to provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, as specified. By imposing new contracting requirements on local agencies, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 885 |
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| 15 | 15 | | Introduced by Assembly Member Luz RivasFebruary 14, 2023 |
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| 16 | 16 | | |
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| 17 | 17 | | Introduced by Assembly Member Luz Rivas |
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| 18 | 18 | | February 14, 2023 |
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| 20 | 20 | | An act to add Chapter 8 (commencing with Section 15000) to Part 2 of Division 2 of the Public Contract Code, relating to public contracts. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 885, as introduced, Luz Rivas. Public contracts: nonprofit organizations. |
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| 28 | 28 | | Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency be approved by the Department of General Services.This bill would establish the California Nonprofit Fairness in Contracting Act and would define, among other terms, covered contract to mean a contract for goods or services by a state or local agency using state funds, including a grant made by a state or local agency using state funds. The bill would require a state or local agency to, among other things, establish a preference for covered contracts that last longer than one year when awarding a covered contract to a nonprofit, and would require those contracts to include a provision allowing for automatic cost of doing business increases. The bill would require a covered contract to provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, as specified. By imposing new contracting requirements on local agencies, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. |
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| 30 | 30 | | Existing law establishes procedures for state agencies to enter into contracts for goods and services, including generally requiring that certain contracts by a state agency be approved by the Department of General Services. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill would establish the California Nonprofit Fairness in Contracting Act and would define, among other terms, covered contract to mean a contract for goods or services by a state or local agency using state funds, including a grant made by a state or local agency using state funds. The bill would require a state or local agency to, among other things, establish a preference for covered contracts that last longer than one year when awarding a covered contract to a nonprofit, and would require those contracts to include a provision allowing for automatic cost of doing business increases. The bill would require a covered contract to provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, as specified. By imposing new contracting requirements on local agencies, the bill would impose a state-mandated local program. |
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| 34 | 34 | | The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. |
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| 35 | 35 | | |
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| 36 | 36 | | This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 40 | 40 | | ## Bill Text |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Chapter 8 (commencing with Section 15000) is added to Part 2 of Division 2 of the Public Contract Code, to read: CHAPTER 8. California Nonprofit Fairness in Contracting Act15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 48 | 48 | | SECTION 1. Chapter 8 (commencing with Section 15000) is added to Part 2 of Division 2 of the Public Contract Code, to read: CHAPTER 8. California Nonprofit Fairness in Contracting Act15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. |
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| 50 | 50 | | SECTION 1. Chapter 8 (commencing with Section 15000) is added to Part 2 of Division 2 of the Public Contract Code, to read: |
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| 52 | 52 | | ### SECTION 1. |
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| 53 | 53 | | |
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| 54 | 54 | | CHAPTER 8. California Nonprofit Fairness in Contracting Act15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. |
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| 56 | 56 | | CHAPTER 8. California Nonprofit Fairness in Contracting Act15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act.15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. |
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| 58 | 58 | | CHAPTER 8. California Nonprofit Fairness in Contracting Act |
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| 60 | 60 | | CHAPTER 8. California Nonprofit Fairness in Contracting Act |
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| 62 | 62 | | 15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act. |
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| 66 | 66 | | 15000. This chapter shall be known, and may be cited, as the California Nonprofit Fairness in Contracting Act. |
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| 68 | 68 | | 15001. For purposes of this chapter, the following definitions apply:(a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds.(b) Local agency means any city, county, special district, authority, or other political subdivision of the state.(c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. |
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| 72 | 72 | | 15001. For purposes of this chapter, the following definitions apply: |
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| 74 | 74 | | (a) Covered contract means a contract for goods or services by a state agency or by a local agency using state funds. Covered contract includes a grant made by a state agency or by a local agency using state funds. |
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| 76 | 76 | | (b) Local agency means any city, county, special district, authority, or other political subdivision of the state. |
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| 78 | 78 | | (c) Nonprofit organization means an organization exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code. |
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| 80 | 80 | | 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year.(b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. |
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| 84 | 84 | | 15002. (a) In awarding a covered contract to a nonprofit organization, a state or local agency shall establish a preference for covered contracts that last longer than one year. |
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| 86 | 86 | | (b) A covered contract between a state or local agency and a nonprofit organization that lasts longer than one year shall include a provision allowing for automatic cost of doing business increases. |
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| 88 | 88 | | 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. |
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| 92 | 92 | | 15003. A state or local agency shall ensure prompt and expedited renewal of a covered contract with a nonprofit organization that is meeting the performance objectives identified in the contract. |
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| 94 | 94 | | 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. |
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| 98 | 98 | | 15004. A covered contract between a state or local agency and a nonprofit organization shall provide the full cost of delivering services and projects, including paying at least state minimum wage and allowing for compensation and employee benefit packages that support competitive salaries and annual cost of living increases, in accordance with federal policies for reimbursement of contract administrative costs under Part 200 of Title 2 of the Code of Federal Regulations. |
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| 100 | 100 | | SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. |
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| 102 | 102 | | SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. |
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| 104 | 104 | | SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. |
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| 106 | 106 | | ### SEC. 2. |
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