SB 1109,
as amended, Hueso. begin deletePublicend deletebegin insert Stateend insert contracts: integrated employmentbegin insert: persons with disabilitiesend insert.
Existing
end delete
begin insert(1)end insertbegin insert end insertbegin insertExistingend insert law establishes specified requirements applicable tobegin delete contracts entered intoend deletebegin insert the acquisition of servicesend insert by statebegin delete agencies, as providedend deletebegin insert
agenciesend insert. Existing law establishes a minimum wage for all industries but permits mentally or physically handicapped persons to be employed at less than the minimum wage, under specified circumstances.
This bill would remove the authorization of a successful bidder to use lower minimum wage exemptions for specified contracts entered into by a state agency for services rendered to the state.
end insertbegin insert(2) Existing law establishes participation goals for specified enterprises to participate in contracts with state agencies for construction, services, materials, supplies, equipment, alterations, repairs, or improvements..
end insertbegin insertThis bill would establish statewide participation goals of not less than 3% for persons with disabilities business enterprises, as defined, to participate in contracts awarded by a state agency for services, as specified.
end insertbegin insert(3) Existing law authorizes a state agency, city or county, political subdivision, or district of this state to purchase materials and supplies manufactured and services provided by public or private nonprofit California corporations operating community rehabilitation programs serving persons with disabilities that have indicated an interest in supplying those goods without advertising or calling for bids.
end insertbegin insertThis bill would require that a corporation employing persons with disabilities under a contract with a state agency for goods or services described above pay all of its employees at least the state minimum wage for work on the contract.
end insertThis bill would state the intent of the Legislature to enact legislation to provide that the state serve as a model for employers in California in increasing competitive integrated employment for individuals with disabilities by prohibiting the entering into of contracts by the state with organizations that pay employees with disabilities less than the minimum wage.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 10338 is added to the end insertbegin insertPublic Contract
2Codeend insertbegin insert, to read:end insert
(a) A successful bidder on a contract awarded under
4this article is not authorized to use the minimum wage exemption
5under Section 1191 or 1191.5 of the Labor Code for any employee,
6engaged in any way, in providing services under the contract.
7(b) This section shall apply to a contract awarded under this
8article that is not subject to competitive bidding requirements.
9(c) This section shall apply only to contracts entered into or
10renewed on or after January 1, 2015.
begin insertSection 10339 is added to the end insertbegin insertPublic Contract Codeend insertbegin insert,
12to read:end insert
(a) Each state agency shall have a goal of awarding
143 percent of its contracts under this article to a disability business
15enterprise.
16(b) For purposes of this section, “disability business enterprise”
17means a public or private nonprofit California corporation
18operating community rehabilitation programs serving persons
19with disabilities.
P3 1(c) (1) Contracts performed by a disability business enterprise
2under this section shall be performed by a labor force comprised
3primarily of persons with disabilities, as measured by the
4percentage of person-hours of direct labor devoted to the contract
5work.
6(2) For purposes of paragraph (1), “primarily” means 75
7percent or greater.
begin insertSection 19404 of the end insertbegin insertWelfare and Institutions Codeend insertbegin insert is
9amended to read:end insert
Any state agency, city or county, political subdivision,
11or district of this state may, without advertising or calling for bids,
12purchase materials and supplies manufactured and services
13provided by public or private nonprofit California corporations
14operating community rehabilitation programs serving persons with
15disabilities who have indicated an interest in supplying those goods
16and services and may, on an equitable basis apportion the business
17among the interested community rehabilitation programs, provided
18the goods or services meet the specifications and needs of the
19purchasing agency and are purchased at a fair market price, as
20determined by the appropriate state or local agency and provided
21that the public or private nonprofit California corporations comply
22with all of the following
requirements:
23(a) (1) Contract work obtained under this section shall be
24performed by a labor force which is comprised primarily of persons
25with disabilities, as measured by the percentage of person-hours
26of direct labor devoted to the contract work.
27(2) For purposes of this paragraph, “primarily” means 75 percent
28or greater.
29(3) Agree to make those elections permitted of any nonprofit
30corporation under the federal Insurance Contributions Act and the
31California Unemployment Insurance Code in order to provide
32social security and unemployment and disability benefits for its
33employees commencing with its first contract or purchase order
34under this section and continuing thereafter. In the event that the
35nonprofit corporation ceases to provide those benefits, any existing
36contract or purchase order
under this section with the corporation
37is terminated and no further contracts or purchase orders shall be
38awarded to that corporation for the period of two years after the
39corporation ceases to provide the benefits. For the purposes of this
P4 1subdivision, a person with a disability shall be considered an
2employee when performing productive work.
3(4) Provide in its articles of incorporation that at least two of
4the directors of its board of directors shall be comprised of persons
5with disabilities or the parents, guardians, or conservators of
6individuals with disabilities. Directors who are also employees of
7the nonprofit corporation shall not participate in or be present at
8discussions of the board of directors concerned with
9labor-management contract negotiations.
10(5) Provide for disabled employees of the nonprofit corporation
11benefits and other employer-employee agreements
substantially
12equal to those benefits and agreements entered into between each
13nonprofit corporation and the representatives designated by a
14majority of the employees.
15(6) Not commit any unfair labor practices as defined in Section
168(a) of the National Labor Relations Act.
17(7) Abide by the provisions of the Federal Fair Labor Standards
18Act, the Walsh-Healy Public Contract Act, the Wagner O’Day
19Act, and the regulations of the State Division of Industrial Welfare.
20(8) Notwithstanding any other law, each employee who performs
21work for a state agency under a contract pursuant to this section,
22shall be paid at the state minimum wage rate or a higher rate.
23(b) For purposes of this section a “person with a disability”
24means any person, other than a person who is blind, who is so
25severely incapacitated by any physical or mental disability that he
26or she cannot currently engage in normal competitive employment
27because of the disability.
It is the intent of the Legislature to enact
29legislation to provide that the state serve as a model for employers
30in California in increasing competitive integrated employment for
31individuals with disabilities by prohibiting the entering into of
32contracts by the state with organizations that pay employees with
33disabilities less than the minimum wage.
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