PETITION OF:

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In the Year Two Thousand and Seven.

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An Act to provide a living wage to all employees of providers that deliver social services or child care under contract or subcontract with the Commonwealth.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 29 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by adding the following four sections:—
Section 72. As used in this section and sections 73, 74 and 75, the following words shall have the following meanings:
“Provider”, any organization that delivers child care or social services under a contract or subcontract with the Commonwealth, whereas twenty-five percent of their total operating budget is provided by the Commonwealth.
“Employee”, any employee paid in whole or part by money of the Commonwealth working for a provider. This shall include contingent fees and fees for service employees.
“Comprehensive Health Care Insurance”, shall include at least the following medically necessary services: reasonably comprehensive physician services, inpatient and outpatient hospital services, emergency health services, the full range of effective clinical preventive care and prescription drugs administered on an outpatient basis.
Section 73. All departments or agencies of the Commonwealth awarding contracts or subcontracts to providers shall notify such providers of the provisions of sections 74 and 75. Any provider submitting a bid for a contract or subcontract shall be notified of the provisions of sections 74 and 75.
Section 74. All providers shall pay covered employees no less than a living wage. Agencies and departments of the Commonwealth shall ensure that said providers are compensated for this living wage. The living wage shall be calculated on an hourly basis and shall not be less than $12.89 from July 1, 2001 and shall be recalculated annually as of July first to the hourly rate which at 40 hours of work a week for 50 weeks a year would be equal to but no less than 135 percent of the poverty threshold for a family of four as published by the United States Department of Health and Human Services or in proportion to the increase at the immediately preceding December thirty-first over the year earlier level of the annual average consumer price index of all urban consumers (CPI-U) as published by the bureau of labor statistics, United States Department of Labor applied to $12.89, or whichever the foregoing is higher.
Section 75. If a provider offers employees comprehensive health insurance, the provider's required living wage shall be calculated on an hourly basis and shall not be less than $11.89 from July 1, 2001 and shall be recalculated annually as of July first to the hourly rate which at 40 hours of work a week for 50 weeks a year would be equal to but no less than 135 percent of the poverty threshold for a family of four as published by the United States Department of Health and Human Services.
All providers offering comprehensive health insurance shall pay at least 80 percent of the comprehensive health insurance plans addressed under this section.
Agencies and departments of the Commonwealth shall ensure that said providers are compensated for this living wage and comprehensive health insurance costs.