AB 566, as amended, Wieckowski. Courts: personal services contracting.
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 that were performed or customarily performed by that trial court’s employees as of July 1, 2012. 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.begin delete Theend delete
begin insert Thisend insert bill would provide that these standards apply to any contract entered into, renewed, or extended after the effective date of this measure, but that a contract entered into, renewed, or extended by a trial court between the date this measure is enacted and the date this measure becomes operative that does not comply with these standards shall terminate 90 days after the date this measure becomes operative, asbegin delete specified.end delete
begin deleteThis end deletebegin insertspecified. The end insertbill would provide that its provisions do not apply to a contractbegin delete between a trial court and another trial court or local government entity, as specified, or if the contract is
for a new trial court function and the Legislature has specifically mandated or authorized performance of the services by independent contractorsend deletebegin insert under specified circumstances, including when services are incidental to a contract for the purchase or lease of real or personal propertyend insert.
The bill would provide that its provisions are severable.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 71621 is added to the Government Code,
2to read:
(a) If a trial court intends to enter into a new contract,
4or renew or extend an existing contract, for any services that are
5currently or customarily performed by that trial court’s employees,
P3 1or that were performed or customarily performed by that trial
2court’s employees
as of July 1, 2012, all of the following
3requirements shall apply:
4(1) The trial court shall clearly demonstrate that the contract
5will result in actual overall cost savings to the trial court for the
6duration of the entire contract as compared with the trial court’s
7actual costs of providing the same services. In comparing costs,
8all of the following shall occur:
9(A) The trial court’s additional cost of providing the same
10services as proposed by the contract shall be included. These
11additional costs shall include the salaries and benefits of additional
12staff that would be needed and the cost of additional space,
13equipment, and materials needed to perform the services.
14(B) The trial court’s indirect overhead
costs shall not be included
15unless those costs can be attributed solely to the function in
16question and would not exist if that function was not performed
17by the trial court. For the purposes of this subparagraph, “indirect
18overhead costs” means the pro rata share of existing administrative
19salaries and benefits, rent, equipment costs, utilities, and materials.
20(C) The cost of a contractor providing a service for any
21continuing trial court costs that would be directly associated with
22the contracted function shall be included. Continuing trial court
23costs shall include, but not be limited to, costs for inspection,
24supervision, and monitoring.
25(2) The contract shall not be approved solely on the basis that
26savings will result from lower contractor pay rates or benefits.
27Contracts
shall be eligible for approval if the contractor’s wages
28are at the industry’s level and do not undercut trial court pay rates.
29(3) The contract shall not cause an existing trial court employee
30to incur a loss of his or her employment or employment seniority,
31a reduction in wages, benefits, or hours, or an involuntary transfer
32to a new location requiring a change in residence.
33(4) The contract shall not be approved if, in light of the services
34provided by trial courts and the special nature of the judicial
35function, it would be inconsistent with the public interest to have
36the services covered by the contract performed by a private entity.
37(5) The contract shall be awarded through a publicized,
38competitive bidding process.
39(6) The contract shall include specific provisions pertaining to
40the qualifications of the staff that will perform the work under the
P4 1contract, as well as assurances that the contractor’s hiring practices
2meet applicable nondiscrimination standards.
3(7) The contract shall provide that it may be terminated at any
4time by the trial court without penalty if there is a material breach
5of the contract and notice is provided within 30 days of termination.
6(8) If the contract is for services in excess of one hundred
7thousand dollars ($100,000) annually, all of the following shall
8occur:
9(A) The trial court shall require the contractor to disclose all of
10the following
information as part of its bid, application, or answer
11to a request for proposal:
12(i) A description of all charges, claims, or complaints filed
13against the contractor with a federal, state, or local administrative
14agency during the prior 10 years.
15(ii) A description of all civil complaints filed against the
16contractor in a state or federal court during the prior 10 years.
17(iii) A description of all state or federal criminal complaints or
18indictments filed against the contractor, or any of its officers,
19directors, or managers, at any time.
20(iv) A description of any debarments of the contractor by a
21public agency or licensing body at any time.
22(B) The trial court shall include in the contract specific,
23measurable performance standards and provisions for a
24performance audit by the trial court, or an independent auditor
25approved by the trial court, to determine whether the performance
26standards are being met and whether the contractor is in compliance
27with applicable laws and regulations. The trial court shall not renew
28or extend the contract prior to receiving and considering the audit
29report.
30(C) The contract shall include provisions for an audit by the
31trial court, or an independent auditor approved by the trial court,
32to determine whether and to what extent the anticipated cost
33savings have actually been realized. The trial court shall not renew
34or extend the contract before receiving and considering the audit
35report.
36(9) The term of the contract shall not be more than five years
37from the date on which the trial court approves the contract.
38(b) This section does not preclude a trial court or the Judicial
39Council from adopting more restrictive rules regarding the
40contracting of court services.
P5 1(c) This section does not apply to a contract between a trial court
2and another trial court or a local government entity for services to
3be performed by employees of the other trial court or the local
4government entity.
5(d) This section does not apply if
the contract is for a new trial
6court function and the Legislature has specifically mandated or
7authorized the performance of the services by independent
8contractors.
9(c) This section does not apply to a contract in any of the
10following circumstances:
11(1) The contract is between a trial court and another trial court
12or a local government entity for services to be performed by
13employees of the other trial court or employees of the local
14government entity.
15(2) The contract is for a new trial court function and the
16Legislature has specifically mandated or authorized the
17performance of the services by independent contractors.
18(3) The services are incidental to a contract for the purchase
19or lease of real or personal property. Contracts described in this
20
paragraph, known as “service agreements,” shall include, but not
21be limited to, agreements to service or maintain office equipment
22or computers that are leased or rented. Contracts described in
23this paragraph shall not include agreements to operate equipment
24or computers.
25(4) The legislative, administrative, or legal goals and purposes
26cannot be accomplished through the utilization of trial court
27employees because of the need to protect against a conflict of
28interest or to ensure independent and unbiased findings in
29situations where there is a clear need for an independent, outside
30perspective.
31(5) Due to an emergency, a contract is necessary for the
32immediate preservation of the public health, welfare, or safety.
33(6) The contractor will conduct training courses for which
34appropriately qualified trial court employee instructors are not
35available from the court, provided that permanent instructor
36positions shall be filled
through the process for hiring trial court
37employees.
Section 1 of this act shall apply to any contract entered
39into, renewed, or extended after the effective date of this act. Any
40contract entered into, renewed, or extended by a trial court between
P6 1the date this act is enacted and the date this act becomes operative
2that does not comply with Section 1 of this act shall terminate 90
3days after the date this act becomes operative, unless the contract
4contains an earlier termination date. The contract may be renewed
5or extended in compliance with Section 1 of this act.
The provisions of this act are severable. If any
7provision of this act or its application is held invalid, that invalidity
8shall not affect other provisions or applications that can be given
9effect without the invalid provision or application.
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