BILL NUMBER: AB 1357	CHAPTERED  09/30/02

	CHAPTER  1132
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2002
	PASSED THE ASSEMBLY  AUGUST 29, 2002
	PASSED THE SENATE  AUGUST 28, 2002
	AMENDED IN SENATE  AUGUST 26, 2002
	AMENDED IN SENATE  AUGUST 14, 2002
	AMENDED IN SENATE  AUGUST 5, 2002
	AMENDED IN SENATE  MARCH 7, 2002

INTRODUCED BY   Assembly Member Wiggins
   (Coauthors:  Assembly Members Chavez and Firebaugh)

                        FEBRUARY 23, 2001

   An act to amend Section 19134 of the Government Code, relating to
public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1357, Wiggins.  Personal services contracts:  employee
compensation.
   Existing law permits state agencies to enter into personal
services contracts when certain conditions are met.  These conditions
include requiring a state agency that enters into a personal
services contract for certain types of workers to include provisions
for employee benefits that are valued at least 85% of the state
employer cost of providing comparable benefits to state employees
performing similar duties.  For these purposes, existing law defines
"benefits" to include health, dental, and vision benefits.  The types
of workers covered by this requirement include persons that provide
janitorial and housekeeping services, custodians, food service
workers, laundry workers, window cleaners, and security guards.
   This bill would require these personal services contracts to also
include provisions for employee wages that are valued at no less than
85% of the state employer cost of wages and benefits provided to
state employees for performing similar duties.  The bill would also
include retirement benefits, holiday pay, sick pay, and vacation pay
in the definition of benefits.
   This bill would provide that it applies only to those personal
services contracts and lease subcontracts entered into, renewed, or
extended on or after July 1, 2003.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 19134 of the Government Code is amended to
read:
   19134.  (a) Personal services contracts entered into by a state
agency in accordance with Section 19130 for persons providing
janitorial and housekeeping services, custodians, food service
workers, laundry workers, window cleaners, and security guard
services shall include provisions for employee wages and benefits
that are valued at least 85 percent of the state employer cost of
wages and benefits provided to state employees for performing similar
duties.
   (b) For purposes of this section, "benefits" includes "health,
dental, retirement, and vision benefits, and holiday, sick, and
vacation pay."
   (c) (1) The Department of Personnel Administration shall establish
annually the state employer wage and benefit costs for workers
covered pursuant to this section.
   (2) Benefit costs shall be established using rates based on single
employee, employee plus one dependent, and employee plus two or more
dependents, or the costs may be based on a blended rate, subject to
the determination of the Department of Personnel Administration.
   (d) In lieu of providing actual benefits, contractors may comply
with this section by a cash payment to employees equal to the
applicable determination under subdivision (c).
   (e) Failure to provide benefits or cash-in-lieu to employees as
required under this section shall be deemed to be a material breach
for any contract for personal services covered by this section.
   (f) The Department of General Services and the Department of
Personnel Administration may adopt guidelines and regulations to
implement the requirements of this section.
   (g) This section applies to all contracts exceeding 90 days.
   (h) Holiday pay shall be provided to employees of contractors
providing services specified in subdivision (a) on any state holiday
that the state facility in which the services are being provided is
closed.
   (i) This section shall also apply to wages and benefits of
employees of subcontractors providing services specified in
subdivision (a) in state-leased facilities where the facility is at
least 50,000 square feet in area and the state leases all of the
occupied floorspace of the facility.
  SEC. 2.  This act shall apply only to personal services contracts
and lease subcontracts subject to Section 19134 of the Government
Code entered into, renewed, or extended on or after July 1, 2003.