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.
This bill would provide that these standards apply to
any contract entered into, renewed, or extended after the effective date of this measurebegin delete, 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, asspecifiedend delete. 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, 2014, 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, 2013, and the effective date of this measure for services that were provided or are customarily provided by its trial court employees if the contract has a term extending beyond March 31, 2014. 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.
end insertThe 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,
6or that were performed or customarily performed by that trial
7court’s employees as of July 1, 2012, all of the following
8requirements shall apply:
9(1) The trial court shall clearly demonstrate that the contract
10will result in actual overall cost savings to the trial court for the
11duration of the entire contract as compared with the trial court’s
12actual costs of providing the same services. In comparing costs,
13all of the following shall occur:
14(A) The trial court’s additional cost of providing the same
15services as proposed by the contract shall be included. These
16additional costs shall include the salaries and benefits of additional
17staff that would be needed and the cost of additional space,
18equipment, and materials needed to perform the services.
19(B) The trial court’s indirect overhead costs shall not be included
20unless those costs can be attributed solely to the function in
21question and would not exist if that function was not performed
22by the trial court. For the purposes of this subparagraph, “indirect
23overhead costs” means the pro rata share of existing administrative
24salaries and benefits, rent, equipment costs, utilities, and materials.
25(C) The cost of a
contractor providing a service for any
26continuing trial court costs that would be directly associated with
27the contracted function shall be included. Continuing trial court
28costs shall include, but not be limited to, costs for inspection,
29supervision, and monitoring.
30(2) The contract shall not be approved solely on the basis that
31savings will result from lower contractor pay rates or benefits.
32Contracts shall be eligible for approval if the contractor’s wages
33are at the industry’s level and do not undercut trial court pay rates.
34(3) The contract shall not cause an existing trial court employee
35to incur a loss of his or her employment or employment seniority,
36a reduction in wages, benefits, or hours, or an involuntary transfer
37to a new location requiring a change in residence.
P4 1(4) The contract shall not be approved if, in light of the services
2provided by trial courts and the special nature of the judicial
3function, it would be inconsistent with the public interest to have
4the services covered by the contract performed by a private entity.
5(5) The contract shall be awarded through a publicized,
6competitive bidding process.
7(6) The contract shall include specific provisions pertaining to
8the qualifications of the staff that will perform the work under the
9contract, as well as assurances that the contractor’s hiring practices
10meet applicable nondiscrimination standards.
11(7) The contract shall provide that it may be terminated at any
12time
by the trial court without penalty if there is a material breach
13of the contract and notice is provided within 30 days of termination.
14(8) If the contract is for services in excess of one hundred
15thousand dollars ($100,000) annually, all of the following shall
16occur:
17(A) The trial court shall require the contractor to disclose all of
18the following information as part of its bid, application, or answer
19to a request for proposal:
20(i) A description of all charges, claims, or complaints filed
21against the contractor with a federal, state, or local administrative
22agency during the prior 10 years.
23(ii) A description of all civil complaints filed against the
24contractor in
a state or federal court during the prior 10 years.
25(iii) A description of all state or federal criminal complaints or
26indictments filed against the contractor, or any of its officers,
27directors, or managers, at any time.
28(iv) A description of any debarments of the contractor by a
29public agency or licensing body at any time.
30(B) The trial court shall include in the contract specific,
31measurable performance standards and provisions for a
32performance audit by the trial court, or an independent auditor
33approved by the trial court, to determine whether the performance
34standards are being met and whether the contractor is in compliance
35with applicable laws and regulations. The trial court shall not renew
36or extend the contract
prior to receiving and considering the audit
37report.
38(C) The contract shall include provisions for an audit by the
39trial court, or an independent auditor approved by the trial court,
40to determine whether and to what extent the anticipated cost
P5 1savings have actually been realized. The trial court shall not renew
2or extend the contract before receiving and considering the audit
3report.
4(9) The term of the contract shall not be more than five years
5from the date on which the trial court approves the contract.
6(b) This section does not preclude a trial court or the Judicial
7Council from adopting more restrictive rules regarding the
8contracting of court services.
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 contracted for are of such a highly specialized
19or technical nature that the necessary expert knowledge,
20experience, and ability cannot be obtained from the court’s trial
21court
employees.
22(3)
end delete
23begin insert(4)end insert The services are incidental to a contract for the purchase or
24lease of real or personal property. Contracts described in this
25paragraph, known as “service agreements,” shall include, but not
26be limited to, agreements to service or maintain office equipment
27or computers that are leased or rented. Contracts described in this
28paragraph shall not include agreements to operate equipment or
29computers.
30(4)
end delete
31begin insert(5)end insert The legislative, administrative, or legal goals and purposes
32cannot be accomplished through the utilization of trial court
33employees because of the need to protect against a conflict of
34interest or to ensure independent and unbiased findings in situations
35where there is a clear need for an independent, outside perspective.
36(5)
end delete
37begin insert(6)end insert Due to an emergency, a contract is necessary for the
38immediate preservation of the public health, welfare, or
safety.
39(6)
end delete
P6 1begin insert(7)end insert The contractor will conduct training courses for which
2appropriately qualified trial court employee instructors are not
3available from the court, provided that permanent instructor
4positions shall be filled through the process for hiring trial court
5employees.
6(8) The services are of such an urgent, temporary, or occasional
7nature that the delay incumbent in their implementation through
8the process for hiring trial court employees would frustrate their
9very purpose.
This paragraph shall not apply to the services of
10official court reporters.
Sectionbegin delete 1 ofend deletebegin insert 71621 of the Government Code, as added
12by Section 1 ofend insert this actbegin insert,end insert shall apply to any contract entered into,
13renewed, or extended after the effective date of this act.begin delete Any
14contract entered into, renewed, or extended by a trial court between
15the date this act is enacted and the date this act becomes operative
16that does not comply with Section 1 of this act shall terminate 90
17days after the date this act becomes operative, unless the contract
18contains an earlier termination date. The contract may be renewed
19or extended in compliance with Section 1 of this act.end delete
begin insert(a)end insertbegin insert end insertbegin insertEach trial court shall provide a report by no later
21than February 1, 2014, to the chairperson of the Joint Legislative
22Budget Committee and the chairpersons of the Senate Judiciary
23Committee and Assembly Judiciary Committee if the trial court
24entered into a contract between July 1, 2013, and the effective date
25of this act, for services that were provided or are customarily
26provided by its trial court employees and that contract has a term
27extending beyond March 31, 2014. The report shall provide the
28following information for each of these contracts:end insert
29(1) A copy of the contract.
end insertbegin insert
30(2) An analysis of whether the contract would have been
31permissible under the standards set forth in Section 71621 of the
32Government Code, as added by Section 1 of this act.
33(3) An analysis of whether the contract resulted in the
34displacement of trial court employees.
35(4) An analysis of whether the contract involves the use of
36contractors to perform the type of services that were customarily
37performed by trial court employees.
38(b) It is the intent of the Legislature to consider the reduction
39of future budget appropriations to each trial court by the amount
40of any contract analyzed pursuant to subdivision (a) if the
P7 1Legislature concludes that the contract would not have been
2permissible under the standards provided in Section 71621 of the
3Government Code, as added by Section 1 of this act.
The provisions of this act are severable. If any
6provision of this act or its application is held invalid, that invalidity
7shall not affect other provisions or applications that can be given
8effect without the invalid provision or application.
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