BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 959 (Lara) - University of California: contracts: bidding
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|Version: February 8, 2016 |Policy Vote: ED. 7 - 2 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 27, 2016 |Consultant: Jillian Kissee |
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Bill
Summary: Beginning January 1, 2018, this bill modifies
requirements for qualifying as a lowest responsible bidder or
best value awardee for certain types of service contracts at the
University of California (UC). Bidders are required to certify
in writing that its employees are compensated at a level that
does not undercut, by more than five percent, the average
per-employee value of total compensation for UC employees who
perform comparable work, and provide specified information to
the UC when they submit bids. It also makes these provisions
applicable to any renewal or extension of an existing contract
for services involving an expenditure of $100,000 or more
annually.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
SB 959 (Lara) Page 1 of
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Fiscal
Impact:
The UC estimates that this bill would increase contract costs
at each campus and medical center resulting in costs in the
high tens of millions due to its requirements that would
likely drive increased salary and benefit costs for bidders to
demonstrate that employees are compensated at a level not less
than five percent of those employed by the UC who perform
comparable work. Costs that would have more of a direct state
cost pressure would likely be impacts to campus contracts,
which comprise slightly more than half of this cost estimate
(about $47 million). However, these costs are likely to be
comprised of a variety of fund sources outside of UC's core
budget. Actual costs are unknown and would depend upon a
number of factors, among them being, vendor employee
compensation data as well as similar detailed data pertaining
to UC employees to determine the difference in total
compensation for UC employees for similar work.
The UC also estimates significant administrative costs that
are unknown, to comply with the bill's requirements for
activities that could fluctuate from year to year, but could
be in the hundreds of thousands.
Author
Amendments: Amend per author to reduce the information to be
submitted to UC by bidders and contractors, as specified;
requires bidders to certify that within the prior five years,
instead of 10 years, the bidder has not been found liable for
certain violations; and make other clarifying amendments.
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