BILL ANALYSIS                                                                                                                                                                                                    



          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  
          ?
          
          
          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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