Bill Text: CA AB2332 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Courts: personal services contracts.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Engrossed - Dead) 2014-08-14 - In committee: Held under submission. [AB2332 Detail]

Download: California-2013-AB2332-Amended.html

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BILL NUMBER: AB 2332	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 27, 2014

INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 21, 2014

   An act to add Section 71621 to the Government Code, relating to
courts.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2332, as amended, Wieckowski. Courts: personal services
contracts.
   The Trial Court Employment Protection and Governance Act
establishes a trial court employee personnel system that provides
authority to hire trial court personnel, regulates the classification
and compensation of trial court employees, labor relations, and
personnel files, and requires each trial court to establish a system
of employment selection and advancement and an employment protection
system.
   Existing law authorizes state agencies to use personal services
contracts to achieve cost savings if specified standards are
satisfied, including, among other things, the contract does not cause
the displacement of civil service employees and the contract is
awarded through a publicized, competitive bidding process. The State
Personnel Board is required to review a proposed contract upon the
request of an employee organization for compliance with those
standards. 
   This bill would establish specified standards if a trial court
intends to enter into a new contract, or renew or extend an existing
contract, for any services that are currently or customarily
performed by that trial court's employees or for court reporter
services. Among other things, the bill would require the trial court
to clearly demonstrate that the contract will result in actual
overall cost savings to the trial court for the duration of the
entire contract as compared with the trial court's actual costs of
providing the same services. The bill would require a contract for
services in excess of $100,000 annually to include specific,
measurable performance standards and provisions for audits on
performance and cost savings, as specified.  
   This bill would provide that these standards apply to any contract
entered into, renewed, or extended on or after January 1, 2015. The
bill would provide that its provisions do not apply to a contract
under specified circumstances, including when services are incidental
to a contract for the purchase or lease of real or personal
property.  
   This bill would require each trial court to provide a report by
February 1, 2015, to the Chairperson of the Joint Legislative Budget
Committee and the chairpersons of the Senate Judiciary Committee and
the Assembly Judiciary Committee if the trial court entered into a
contract between July 1, 2014, and December 31, 2014, inclusive, for
services that were provided or are customarily provided by its trial
court employees if the contract has a term extending beyond March 31,
2015. This report would be required to include specified information
relating to these contracts, including an analysis of whether the
contract resulted in the displacement of trial court employees. 

   The bill would provide that its provisions are severable. 

   This bill would require, if a trial court intends to contract for
services that are currently or customarily performed by trial court
employees, that certain best practice requirements for responsible
contracting apply. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 71621 is added to the 
 Government Code   , to read:  
   71621.  (a) If a trial court intends to enter into a new contract,
or renew or extend an existing contract, for any services that are
currently or customarily performed by that trial court's employees,
or for court reporter services, all of the following requirements
shall apply:
   (1) The trial court shall clearly demonstrate that the contract
will result in actual overall cost savings to the trial court for the
duration of the entire contract as compared with the trial court's
actual costs of providing the same services. In comparing costs, all
of the following shall occur:
   (A) The trial court's additional cost of providing the same
services as proposed by the contract shall be included. These
additional costs shall include the salaries and benefits of
additional staff that would be needed and the cost of additional
space, equipment, and materials needed to perform the services.
   (B) The trial court's indirect overhead costs shall not be
included unless those costs can be attributed solely to the function
in question and would not exist if that function was not performed by
the trial court. For the purposes of this subparagraph, "indirect
overhead costs" means the pro rata share of existing administrative
salaries and benefits, rent, equipment costs, utilities, and
materials.
   (C) The cost of a contractor providing a service for any
continuing trial court costs that would be directly associated with
the contracted function shall be included. Continuing trial court
costs shall include, but not be limited to, costs for inspection,
supervision, and monitoring.
   (2) The contract shall not be approved solely on the basis that
savings will result from lower contractor pay rates or benefits.
Contracts shall be eligible for approval if the contractor's wages
are at the industry's level and do not undercut trial court pay
rates.
   (3) The contract shall not cause an existing trial court employee
to incur a loss of his or her employment or employment seniority, a
reduction in wages, benefits, or hours, or an involuntary transfer to
a new location requiring a change in residence.
   (4) The contract shall not be approved if, in light of the
services provided by trial courts and the special nature of the
judicial function, it would be inconsistent with the public interest
to have the services covered by the contract performed by a private
entity.
   (5) The contract shall be awarded through a publicized,
competitive bidding process.
   (6) The contract shall include specific provisions pertaining to
the qualifications of the staff that will perform the work under the
contract, as well as assurances that the contractor's hiring
practices meet applicable nondiscrimination standards.
   (7) The contract shall provide that it may be terminated at any
time by the trial court without penalty if there is a material breach
of the contract and notice is provided within 30 days of
termination.
   (8) If the contract is for services in excess of one hundred
thousand dollars ($100,000) annually, all of the following shall
occur:
   (A) The trial court shall require the contractor to disclose all
of the following information as part of its bid, application, or
answer to a request for proposal:
   (i) A description of all charges, claims, or complaints filed
against the contractor with a federal, state, or local administrative
agency during the prior 10 years.
   (ii) A description of all civil complaints filed against the
contractor in a state or federal court during the prior 10 years.
   (iii) A description of all state or federal criminal complaints or
indictments filed against the contractor, or any of its officers,
directors, or managers, at any time.
   (iv) A description of any debarments of the contractor by a public
agency or licensing body at any time.
   (B) The trial court shall include in the contract specific,
measurable performance standards and provisions for a performance
audit by the trial court, or an independent auditor approved by the
trial court, to determine whether the performance standards are being
met and whether the contractor is in compliance with applicable laws
and regulations. The audit shall be made available to the public
upon request within 10 calendar days from receipt of the request. A
charge per page, per copy, may be charged representing the direct
costs of equipment, supplies, and staff required to duplicate or
produce the requested audit. The trial court shall not renew or
extend the contract prior to receiving and considering the audit
report.
   (C) The contract shall include provisions for an audit by the
trial court, or an independent auditor approved by the trial court,
to determine whether and to what extent the anticipated cost savings
have actually been realized. The audit shall be made available to the
public upon request within 10 calendar days from receipt of the
request. A charge per page, per copy, may be charged representing the
direct costs of equipment, supplies, and staff required to duplicate
or produce the requested audit. The trial court shall not renew or
extend the contract before receiving and considering the audit
report.
   (9) The term of the contract shall not be more than five years
from the date on which the trial court approves the contract.
   (b) This section does not preclude a trial court or the Judicial
Council from adopting more restrictive rules regarding the
contracting of court services.
   (c) This section does not apply to a contract in any of the
following circumstances:
   (1) The contract is between a trial court and another trial court
or a local government entity for services to be performed by
employees of the other trial court or employees of the local
government entity.
   (2) The contract is for a new trial court function and the
Legislature has specifically mandated or authorized the performance
of the services by independent contractors.
   (3) The services contracted for are of such a highly specialized
or technical nature that the necessary expert knowledge, experience,
and ability cannot be obtained from the court's trial court
employees.
   (4) The services are incidental to a contract for the purchase or
lease of real or personal property. Contracts described in this
paragraph, known as "service agreements," shall include, but not be
limited to, agreements to service or maintain office equipment or
computers that are leased or rented. Contracts described in this
paragraph shall not include agreements to operate equipment or
computers, except as necessary to service or maintain that equipment.

   (5) The legislative, administrative, or legal goals and purposes
cannot be accomplished through the utilization of trial court
employees because of the need to protect against a conflict of
interest or to ensure independent and unbiased findings in situations
where there is a clear need for an independent, outside perspective.

   (6) Due to an emergency, a contract is necessary for the immediate
preservation of the public health, welfare, or safety.
   (7) The contractor will conduct training courses for which
appropriately qualified trial court employee instructors are not
available from the court, provided that permanent instructor
positions shall be filled through the process for hiring trial court
employees.
   (8) The services are of such an urgent, temporary, or occasional
nature that the delay incumbent in their implementation through the
process for hiring trial court employees would frustrate their very
purpose. This paragraph shall not apply to the services of official
court reporters, except individual official reporters pro tempore may
be used by a trial court when the criteria of this paragraph are
met.
   (9) The contract is a personal services contract developed
pursuant to rehabilitation programs in accordance with Sections 19403
and 19404 of the Welfare and Institutions Code, pursuant to
habilitation programs in accordance with Chapter 13 (commencing with
Section 4850) of Division 4.5 of the Welfare and Institutions Code,
or pursuant to a program vendored or contracted through a regional
center or the State Department of Developmental Services in
accordance with the Lanterman Developmental Disabilities Services Act
(Division 4.5 (commencing with Section 4500) of the Welfare and
Institutions Code), and the contract will not cause an existing trial
court employee to incur a loss of his or her employment or
employment seniority; a reduction in wages, benefits, or hours; or an
involuntary transfer to a new location requiring a change in
residence.
   (10) The contract is for the services of any court interpreter.
Contracts for the services of any court interpreter, and restrictions
on contracting out interpreter services, shall be governed by the
Trial Court Interpreter Employment and Labor Relations Act (Chapter
7.5 (commencing with Section 71800)) and any memorandum of
understanding or agreement entered into pursuant to that act, or by
the other provisions of this chapter, the Trial Court Employment
Protection and Governance Act, and any memorandum of understanding or
agreement entered into pursuant to that act, as applicable. 
   SEC. 2.    Section 71621 of the Government Code, as
added by Section 1 of this act, shall apply to any contract entered
into, renewed, or extended on or after January 1, 2015. 
   SEC. 3.    (a) Each trial court shall provide a
report by no later than February 1, 2015, to the chairperson of the
Joint Legislative Budget Committee and the chairpersons of the Senate
Judiciary Committee and Assembly Judiciary Committee if the trial
court entered into a contract between July 1, 2014, and December 31,
2014, inclusive, for services that were provided or are customarily
provided by its trial court employees and that contract has a term
extending beyond March 31, 2015. The report shall provide the
following information for each of these contracts:  
   (1) A copy of the contract.  
   (2) An analysis of whether the contract would have been
permissible under the standards set forth in Section 71621 of the
Government Code, as added by Section 1 of this act.  
   (3) An analysis of whether the contract resulted in the
displacement of trial court employees.  
   (4) An analysis of whether the contract involves the use of
contractors to perform the type of services that were customarily
performed by trial court employees.  
   (b) It is the intent of the Legislature to consider the reduction
of future budget appropriations to each trial court by the amount of
any contract analyzed pursuant to subdivision (a) if the Legislature
concludes that the contract would not have been permissible under the
standards provided in Section 71621 of the Government Code, as added
by Section 1 of this act. 
   SEC. 4.    The provisions of this act are severable.
If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that
can be given effect without the invalid provision or application.
 
  SECTION 1.    Section 71621 is added to the
Government Code, to read:
   71621.  If a trial court intends to contract for services that are
currently or customarily performed by trial court employees, certain
best practice requirements for responsible contracting shall apply.