AB 885 California Assembly · 2023-2024 Regular Session

Public contracts: nonprofit organizations.

Summary
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.
Bill status died 1 of 4 stages cleared
Introduction
Feb 2024
Committee Review
Floor Vote
Governor
Introduced Feb 1, 2024 Last action Feb 1, 2024
Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
7
Key actions
2
Committee
4
Feb 1, 2024
Introduced
Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
Apr 19, 2023
Lower · Passed
In committee: Set, first hearing. Hearing canceled at the request of author.
lower
Apr 10, 2023
Committee
Re-referred to Com. on A. & A.R. pursuant to Assembly Rule 96.
lower
Mar 2, 2023
Committee
Referred to Com. on L. GOV.
lower
Feb 15, 2023
Lower · Passed
From printer. May be heard in committee March 17.
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Luz Rivas
Luz Rivas
DDemocratic
CA
43