BILL ANALYSIS Ó
HR 29
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Date of Hearing: April 2, 2014
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Rob Bonta, Chair
HR 29 (Gomez) - As Amended: March 13, 2014
SUBJECT : Relative to outsourcing public services.
SUMMARY : Resolves that the California State Assembly opposes
outsourcing of public services and assets, urges local officials
to become familiar with the provisions of the Taxpayer
Empowerment Agenda, and intends to introduce and advocate for
responsible outsourcing legislation. Specifically, this bill :
1)Makes a number of findings about the problems associated with
outsourcing public services and assets, including that
taxpayers often no longer know how their tax dollars are being
spent, and the Taxpayer Empowerment Agenda which could be one
model that may help ensure transparency, accountability,
shared prosperity, and competition in the operation of public
services and assets.
2)Resolves that the California State Assembly opposes
outsourcing of public services and assets, which harms
transparency, accountability, shared prosperity, and
competition, and supports processes that give public service
workers the opportunity to develop their own plan on how to
deliver cost-effective, high-quality service; urges local
officials to become familiar with the provisions of the
Taxpayer Empowerment Agenda; and, intends to introduce and
advocate for responsible outsourcing legislation.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "HR 29 would simply seek to
affirm the Assembly's opposition to the outsourcing of public
services and assets. HR 29 would also provide support for plans
that reduce outsourcing, restore transparency and accountability
to the provision of state services, and empower public sector
workers to deliver cost-effective, high-quality services for our
state's taxpayers."
In July of 2013, In the Public Interest (ITPI) released the
Taxpayer Empowerment Agenda intended to reign in predatory
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contracting and help local governments reclaim control of their
public services and assets. The Taxpayer Empowerment Agenda is
built on four principles: transparency, accountability, shared
prosperity and competition. The agenda consists of 11
legislative proposals that are intended to "give taxpayers a say
on how their public dollars are spent, allow for scrutiny of how
those dollars are spent, and prevents taxpayers from being stuck
with a monopoly run by a single corporation for decades."
Supporters state, "Since the start of the Great Recession, many
states have turned over critical public services to corporations
with promises to save money, only to discover that contracts
have lacked transparency and basic accountability for taxpayers,
that workers are receiving lower wages and fewer benefit when
they need them most, and that the quality of work is often much
lower than promised, resulting in further costs. The Taxpayer
Empowerment Agenda is a series of specific recommendations,
including that information about state contracts are publically
available, that companies that avoid paying taxes or break the
law cannot receive contracts, that contracting companies pay a
living wage, and that savings for taxpayers, rather than
corporate profits, are guaranteed. The Agenda is a win-win-win
for California, for taxpayers and for workers, both public and
private."
Opponents state that they have "?grave concerns about this
resolution which would have legislators take a form of pledge
that would potentially restrict their votes on future
legislation consistent with the political agenda of an outside
national organization. Such efforts undermine the democratic
process and representative government and do constituents a
disservice by preempting legislators'' ability to make an
informed decision about the specific impacts of legislation.
Local governments have a long history of addressing service
delivery challenges with creativity, self-reliance, and
innovation. Local elected officials are held accountable for
these carefully thought out financial decisions."
Opponents conclude, "The Great Recession has placed great strain
on municipalities and their ability to provide a full range of
services for their residents. This has been compounded by
recent state take-aways including the loss of redevelopment and
expanding pension and retiree health care obligations. Further
limiting the ability to consider alternative methods of
providing services after objective review would do a grave
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disservice to our communities."
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State, County and Municipal Employees
(Sponsor)
Association for Los Angeles Deputy Sheriffs
California Association of Professional Employees
California Professional Firefighters
Glendale city Employees Association
In the Public Interest
Los Angeles Alliance for a New Economy
Los Angeles Deputy Probation Officers Union
Los Angeles Police Protective League
Organization of SMUD Employees
Professional Engineers in California Government
Riverside Sheriffs' Association
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Working Partnerships USA
Opposition
California Bus Association
California Chamber of Commerce
California Contract Cities Association
California Refuse Recycling Council
California Special Districts Association
Charles Abbott Association, Inc.
City of Artesia
City of Brentwood
City of Burbank
City of Claremont
City of Concord
City of Daly City
City of Diamond Bar
City of Downey
City of Fort Bragg
City of Indian Wells
City of La Canada Flintridge
City of La Mirada
City of La Verne
City of Lakeport
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City of Lakewood
City of Lathrop
City of Livermore
City of Merced
City of Morgan Hill
City of Monterey
City of Napa
City of Norwalk
City of Oroville
City of Pomona
City of Rancho Cordova
City of Redding
City of Riverside
City of Rosemead
City of Sacramento
City of Salinas
City of San Carlos
City of San Mateo
City of San Rafael
City of Scotts Valley
City of Signal Hill
City of Soledad
City of Tulare
City of Vacaville
City of Walnut
City of West Covina
City of Whittier
El Monte/South El Monte Chamber of Commerce
Greater Merced Chamber of Commerce
League of California Cities
Los Angeles County Business Federation
Los Angeles County Division of the League of California Cities
Marin County Council of Mayors and Council Members
Marin Sanitary Service
Southwest California Legislative Council
Town of Danville
Town of Ross
Zanker Road Resource Management
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
HR 29
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