CA SB318

Establishes standards for California State University personal services contracts for work currently or customarily performed by university employees, requiring clear demonstration of actual overall cost savings and prohibiting displacement of university staff.

Requires cost comparisons to include direct costs (salaries, benefits, space, equipment, materials) while excluding indirect overhead costs unless solely attributable to the specific function.

Prohibits approving contracts based solely on lower contractor pay rates; contractor wages must meet industry standards and not significantly undercut university pay rates.

Requires contracts to be awarded through publicized competitive bidding, include staff qualification provisions, meet nondiscrimination standards, and demonstrate minimal economic risk from potential contractor rate increases.

Permits personal services contracts without meeting cost-savings requirements for new functions mandated by Legislature, specialized/technical services unavailable in-house, emergency situations, training courses, temporary work, and construction projects subject to prevailing wage laws.