BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1419|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 1419
Author: Alarcon (D)
Amended: 8/23/02
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 5-3,
4/10/02
AYES: Alarcon, Figueroa, Kuehl, Polanco, Romero
NOES: Margett, McClintock, Oller
SENATE EDUCATION COMMITTEE : 7-2, 5/1/02
AYES: Vasconcellos, Alarcon, Alpert, Chesbro, Karnette,
O'Connell, Ortiz
NOES: McPherson, Knight
SENATE EDUCATION COMMITTEE : 8-1, 5/21/02
AYES: Vasconcellos, Alarcon, Alpert, Chesbro, Karnette,
O'Connell, Ortiz, Sher
NOES: Knight
SENATE APPROPRIATIONS COMMITTEE : 7-3, 6/3/02
AYES: Alpert, Bowen, Escutia, Karnette, Murray, Perata,
Speier
NOES: Johnson, McPherson, Poochigian
SENATE FLOOR : 22-15, 6/10/02
AYES: Alarcon, Alpert, Bowen, Burton, Chesbro, Dunn,
Escutia, Figueroa, Karnette, Kuehl, Machado, Murray,
O'Connell, Ortiz, Peace, Perata, Romero, Sher, Soto,
Speier, Torlakson, Vasconcellos
NOES: Ackerman, Battin, Brulte, Costa, Haynes,
Johannessen, Johnson, Knight, Margett, McClintock,
McPherson, Monteith, Morrow, Oller, Poochigian
CONTINUED
SB 1419
Page
2
ASSEMBLY FLOOR : 47-29, 8/26/02 - See last page for vote
SUBJECT : Personal services contracting
SOURCE : Author
DIGEST : This bill establishes standards for the use of
personal service contracts in California school districts
and community college districts.
Assembly Amendments make clarifying changes and state
legislative intent that districts use cost information that
is readily available, as specified.
ANALYSIS : Current law does not specifically restrict the
use of personal service contracts by governing boards of
California school and community college districts.
For state services, current law provides standards for the
use of personal service contracts with specific criteria
for contracting outside state service. These criteria
include demonstration of cost savings, definition of costs,
and requirements that work not be contracted out solely on
the basis of lower pay rates or benefits, and justification
of savings based on the size and duration of the contract.
The State Public Employment Relations Board (PERB) is a
quasi-judicial agency which oversees public sector
collective bargaining in California. PERB administers four
collective bargaining statutes, ensures their consistent
implementation and application, and adjudicates disputes
between the parties subject to them. The statutes
administered by PERB include the Educational Employment
Relations Act (EERA) of 1976, which established collective
bargaining in California's public schools (K-12) and
community colleges.
This bill establishes standards for the use of personal
service contracts in school districts and community college
districts and:
SB 1419
Page
3
1.Restricts personal services contracting for the purpose
of achieving cost savings, permitting so only if the
following conditions are met:
A. Actual cost savings be demonstration, to be
determined through the inclusion and exclusion of
specific costs, as specified.
B. The proposed contractor's wages are at the
industry's level, and do not undercut school district
pay rates.
C. The contract does not result in displacement, as
defined, of school district employees.
E. Various additional requirements.
2.Restricts personal services contracting, unless the
following conditions are met:
A. The Legislature mandates or authorizes work be
performed by independent contractors, and the
contract is for new school district functions.
B. Services are unavailable or unable to be
satisfactorily performed by district employees.
C. Services which are incidental to a purchase or
lease contract.
D. The policy, administrative, or legal
goals/purposes cannot be accomplished through the
regular or ordinary hiring process.
E. The nature of the work is such that criteria for
an emergency appointment applies, i.e. necessary to
prevent the stoppage of public business or because of
the limited duration of the work.
F. The district cannot feasibly supply the equipment,
materials, facilities, or support services provided.
G. The contract is for services of an urgent,
temporary, or occasional nature.
SB 1419
Page
4
3.Restricts application of the bill's provisions to new
contracts initiated after January 1, 2003. Existing
contracts or renewals of existing contracts are exempted,
unless substantially modified.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
Unknown, major costs ongoing.
SUPPORT : (Verified 6/4/02) (Unable to reverify at time
of writing)
California School Employees Association
American Federation of State, County and Municipal
Employees
OPPOSITION : (Verified 6/4/02) (Unable to reverify at
time of writing)
American Institute of Architects, California Council
Association of California School Administrators
California School Board's Association
California School Bus Contractor's Association
Cardinal Transportation Group, Inc.
Community College League of California
Durham School Services
First Student
Laidlaw Education Services
Los Angeles Unified School District
Orinda Union School District
San Francisco Unified School District
ARGUMENTS IN SUPPORT : Supporters contend that this bill
does not prohibit personal service contracts, but rather
merely mirrors the guidelines and requirements that every
state agency in California must currently follow when
entering into personal service contracts. Supporters
assert that there have been many cases of school districts
contracting out jobs and services, only to find that the
contracts ended up costing more and delivering less.
ARGUMENTS IN OPPOSITION : Opponents assert that the bill
SB 1419
Page
5
creates significant costs and administrative burdens by
creating added state mandates that include the cost for the
process of bidding and the requirement to hire someone if
unable to contract out for services. Opponents
additionally contend that PERB has ruled that EERA's
mandatory subjects of bargaining include the employer's
decision to contract out work.
ASSEMBLY FLOOR :
AYES: Alquist, Aroner, Calderon, Canciamilla, Cardenas,
Cedillo, Chan, Chavez, Chu, Cohn, Corbett, Correa, Diaz,
Dutra, Firebaugh, Florez, Frommer, Goldberg, Havice,
Hertzberg, Horton, Jackson, Keeley, Kehoe, Koretz, Liu,
Longville, Lowenthal, Migden, Nakano, Nation, Negrete
McLeod, Papan, Pavley, Reyes, Salinas, Shelley, Simitian,
Steinberg, Strom-Martin, Thomson, Vargas, Washington,
Wayne, Wiggins, Wright, Wesson
NOES: Aanestad, Ashburn, Bates, Bogh, Briggs, Bill
Campbell, John Campbell, Cogdill, Cox, Daucher,
Dickerson, Harman, Hollingsworth, Kelley, La Suer, Leach,
Leonard, Leslie, Maddox, Maldonado, Mountjoy, Robert
Pacheco, Rod Pacheco, Richman, Runner, Strickland,
Wyland, Wyman, Zettel
NC:cm 8/27/02 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****