BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 862
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 862 (Firebaugh)
          As Amended July 14, 2003
          Majority vote
           
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          |ASSEMBLY:  |73-0 |(May 8, 2003)   |SENATE: |23-15|(August 27,    |
          |           |     |                |        |     |2003)          |
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           Original Committee Reference:    P.E., R. & S.S.  
           
          SUMMARY  :  Requires a state agency that seeks the consent of the  
          Attorney General (AG) to employ outside counsel shall provide  
          the representative of State Employees Bargaining Unit 2  
          (Bargaining Unit 2) with notice of the request. 

           The Senate amendments  :

          1)Provide specific timelines and requirements for providing  
            notice to Bargaining Unit 2.

          2)Provide specific details regarding the contents of the notice.

          3)State the notice is to be deemed a privileged communication.

           EXISTING LAW  : 

          1)Establishes standards for the use of personal services  
            contracts outside the civil service system if contracting  
            would achieve cost savings, as defined, or if certain  
            conditions can be met.

          2)Provides, with certain exceptions, that the written consent of  
            the AG is required prior to the employment of counsel for  
            representation of any state agency or employee in any judicial  
            proceeding.

           AS PASSED BY THE ASSEMBLY,  this bill:

          1)Required that state agencies, as defined, and the AG, provide  
            specified notices to the designated representative of  
            Bargaining Unit 2 regarding contracts for legal services with  
            outside counsel and the consent of the AG with regard to those  
            contracts.  








                                                                  AB 862
                                                                  Page  2


          2)Exempted from the notice requirement certain confidential  
            matters and deems disclosures made in a notice to be  
            privileged communications.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to supporters, this bill would provide  
          substantial cost savings to the state by ensuring that the work  
          that is performed by the state's existing work force is not  
          contracted out unnecessarily to other providers at substantially  
          higher costs.  The issue is not currently negotiated in  
          collective bargaining however in the event that an agreement is  
          reached in collective bargaining that agreement would supersede  
          this statute.  The bill had opposition last year in its AB 2850  
          form, however the California Attorneys, Administrative Law  
          Judges, Hearing Officers and Deputy Labor Commissioners in State  
          Employment (CASE) worked to resolve those issues which are  
          reflected in this version of the bill.


           Analysis Prepared by  :  Clem Meredith / P.E., R. & S.S. / (916)  
          319-3957 




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