BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          AB 566 (Wieckowski)
          As Amended June 15, 2013
          Hearing Date: June 25, 2013
          Fiscal: Yes
          Urgency: No
          RD


                                        SUBJECT
                                           
                        Courts: Personal Services Contracting

                                      DESCRIPTION  

          This bill would require specified standards to be met 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.   
          This bill would also require specific, measurable performance  
          standards for any contract for services in excess of $100,000  
          annually and require audits, as specified.   

          This bill would also authorize courts to execute personal  
          service contracts under certain circumstances, without meeting  
          the specified standards, including where: 
           the contract is between a trial court and another trial court  
            or a local government entity for services to be performed by  
            employees of the other trial court or employees of the local  
            government entity; or
           due to an emergency, a contract is necessary for the immediate  
            preservation of the public health, welfare, or safety.

          This bill would provide that any contract entered into, renewed,  
          or extended between the date this bill is enacted and its date  
          of operation which does not comply with the requirements of this  
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          Act shall terminate 90 days after the date this Act becomes  
          operative, unless the contract contains an earlier termination  
          date. 

                                      BACKGROUND  

          Under California law, most governmental entities can use  
          personal services contracts (i.e. contracting out) to achieve  
          cost savings only if specified standards are satisfied, chief  
          among them being that the entity clearly demonstrates actual  
          overall cost savings based upon certain information.  These  
          entities include executive branch agencies, public schools,  
          community colleges, and libraries.  (See AB 3336 (Ryan, Ch.  
          1057, Stats. 1982); SB 1419 (Alarcon, Ch. 894, Stats. 2002); AB  
          438 (Williams, Ch. 611, Stats. 2011).)

          Over the past five years, California's judicial branch has  
          experienced ongoing budget reductions of $535 million and has  
          diverted around $1 billion in courthouse construction funds to  
          support court operations.  Those catastrophic budget reductions  
          have crippled California's court system by, among other things,  
          forcing the closure of courts and self-help centers, which has  
          resulted in delayed access to justice for a large number of  
          Californians.  

          In response, many courts have begun seeking ways in which to  
          operationalize those budget reductions.  According to  
          information provided to this Committee by the Judicial Council  
          of California, examples of services that trial courts currently  
          contract out for include:  court reporters; interpreters; child  
          custody evaluations; probate investigations; family law  
          facilitators; minor's counsel in dependency cases; child custody  
          mediation services;  mediators/alternative dispute resolution;  
          security guards; personnel services; payroll; information  
          services; collections; adoption investigation services; services  
          for self-represented litigants; labor negotiation services;  
          transcripts for electronically recorded proceedings; and more. 

          This bill would permit the trial courts to engage in personal  
          service contracts 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, only if certain requirements are  
          met, or if a specified exception applies.  Among other things,  
          this bill would not only apply to contracts entered into,  
          renewed, or extended on or after its date of operation, but  
                                                                      



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          would also cause the termination of any non-complying contract  
          entered into, renewed, or extended by a trial court between the  
          date this bill is enacted and the date this bill becomes  
          operative, as specified.   

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that civil service includes every officer  
          and employee of the State, except as otherwise provided in the  
          California Constitution.  That article also specifies that  
          certain employees are exempt from civil service, including among  
          others:  officers and employees appointed or employed by  
          councils, commissions or public corporations in the judicial  
          branch or by a court of record or officer thereof.  (Cal.  
          Const., article VII.)
           
          Existing law  permits a state agency to contract out for personal  
          services only if specified standards are satisfied, including,  
          among other things, that: 
           the contracting agency clearly demonstrates actual overall  
            cost savings, as specified;
           proposals to contract out work are not approved solely on the  
            basis that savings will result from lower contractor pay rates  
            or benefits, except that proposals to contract out work are  
            eligible for approval if the contractor's wages are at the  
            industry's level and do not significantly undercut state pay  
            rates;
           the contract does not cause the displacement of civil service  
            employees, as specified;
           the savings must be large enough to ensure that they will not  
            be eliminated by cost fluctuations that could normally be  
            expected during the contracting period;
           the amount of savings clearly justify the size and duration of  
            the agreement;
           the contract is awarded through a publicized, competitive  
            bidding process;
           the potential for future economic risk to the state from  
            potential contractor rate increases is minimal; and 
           the potential economic advantage of contracting is not  
            outweighed by the public's interest in having a particular  
            function performed directly by state government.  (Gov. Code  
            Sec. 19130(a)(1)-(11).) 

           Existing law  provides that in determining whether the proposed  
          contract will result in actual savings to the state, in  
          comparing costs, the contracting agency must clearly demonstrate  
                                                                      



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          actual overall cost savings as follows: 
           the state's additional cost of providing the same service as  
            proposed by a contractor, including the salaries and benefits  
            of additional staff that would be needed and the cost of  
            additional space, equipment, and materials needed to perform  
            the function must be included;
           the state's indirect overhead costs, as defined, must not be  
            included unless these costs can be attributed solely to the  
            function in question and would not exist if that function was  
            not performed in state service; and 
           in the cost of a contractor providing a service, any  
            continuing state costs (such as inspection, supervision, and  
            monitoring) that would be directly associated with the  
            contracted function must be included.  (Gov. Code Sec.  
            19130(a)(1)(A)-(C).)
           
           Existing law  exempts personal services contracting from the  
          above requirements if, among other things:
           the functions contracted are exempt from civil service under  
            the state constitution; 
           the contract is for a new state function and the Legislature  
            has specifically mandated or authorized the performance of the  
            work by independent contractors;
           the services contracted are not available within civil  
            service, cannot be performed satisfactorily by civil service  
            employees, or are of such a highly specialized or technical  
            nature that the necessary expert knowledge, experience, and  
            ability are not available through the civil service system;
           the legislative, administrative, or legal goals and purposes  
            cannot be accomplished through the utilization of persons  
            selected pursuant to the regular civil service system, such as  
            where there is a conflict of interest or to insure independent  
            and unbiased findings in cases where there is a clear need for  
            a different, outside perspective (e.g., obtaining expert  
            witnesses in litigation);
           the nature of the work is such that specified existing law  
            standards for emergency appointments apply; 
           the contractor will provide equipment, materials, facilities,  
            or support services that the state could not feasibly provide  
            in the location where the services are to be performed; or
           the services are of such an urgent, temporary, or occasional  
            nature that the delay incumbent in their implementation under  
            civil service would frustrate their very purpose.  (Gov. Code  
            Sec. 19130(b).)

           Existing law  provides similar requirements and exceptions for  
                                                                      



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          personal service contracting for school districts, community  
          college districts, and libraries.  (See Ed. Code Secs. 19104.5,  
          45103.1, 88003.1.) 

           This bill  would provide that if a trial court intends to enter  
          into a 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,  
          all of the following must be met:
           the trial court must 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, as  
            specified;
           the contract must not be approved solely on the basis that  
            savings will result from lower contractor pay rates or  
            benefits, except contracts are eligible for approval if the  
            contractor's wages are at the industry level and do not  
            undercut trial court pay rates;
           the contract cannot cause an existing trial court employee to  
            incur a loss of his or her employment or employment seniority,  
            a reduction in wages, benefits, or hours, or an involuntary  
            transfer to a new location requiring a change in residence;
           the contract cannot be approved if, in light of the services  
            provided by trial courts and the special nature of the  
            judicial function, it would be inconsistent with the public  
            interest to have the services performed by a private entity;
           the contract must be awarded through a publicized, competitive  
            bidding process; 
           the contract must include specific provisions pertaining to  
            the qualifications of the staff that will perform the work  
            under the contract, as well as assurances that the  
            contractor's hiring practices meet applicable  
            nondiscrimination standards;
           the contract must provide that it may be terminated at any  
            time by the trial court without penalty if there is a material  
            breach of the contract and notice is provided within 30 days  
            of termination;
           the term of the contract shall not be more than five years  
            from the date on which the trial court approves the contract;  
            and
           if the contract is for services over $100,000 annually, the  
            trial court must meet certain auditing requirements, as  
            specified, and a requirement that the contractor disclose a  
            description of all of the following as part of its bid,  
                                                                      



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            application, or answer to a request for proposal: 
             o    all charges, claims, or complaints filed against the  
               contractor with a federal, state, or local administrative  
               agency during the prior 10 years; 
             o    all civil complaints filed against the contractor in a  
               state or federal court during the prior 10 years; 
             o    all state or federal criminal complaints or indictments  
               filed against the contractor, or any of its officers,  
               directors, or managers, at any time; and 
             o    any debarments of the contractor by a public agency or  
               licensing body at any time.
           
          This bill  would require that in comparing costs to 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 trial court's additional cost of providing the same  
            services as proposed by the contract shall be included, such  
            as the salaries and benefits of additional staff that would be  
            needed and the cost of additional space, equipment, and  
            materials needed to perform the services;
           the trial court's indirect overhead costs, as defined, shall  
            not be included unless those costs can be attributed solely to  
            the function in question and would not exist if that function  
            was not performed by the trial court; and
           the cost of a contractor providing a service for any  
            continuing trial court costs, including costs for inspection,  
            supervision, and monitoring, that would be directly associated  
            with the contracted function shall be included.

           This bill  would exempt contracts from the requirements listed  
          above in any of the following circumstances:
           the contract is between a trial court and another trial court  
            or a local government entity for services to be performed by  
            employees of the other trial court or employees of the local  
            government entity;
           the contract is for a new trial court function and the  
            Legislature has specifically mandated or authorized the  
            performance of the services by independent contractors;
           the services are incidental to a contract for the purchase or  
            lease of real or personal property.  Those contracts shall  
            include, but not be limited to, agreements to service or  
            maintain office equipment or computers that are leased or  
            rented, but exclude agreements to operate equipment or  
            computers;
                                                                      



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           the legislative, administrative, or legal goals and purposes  
            cannot be accomplished through the utilization of trial court  
            employees because of the need to protect against a conflict of  
            interest or to ensure independent and unbiased findings in  
            situations where there is a clear need for an independent,  
            outside perspective;
           due to an emergency, a contract is necessary for the immediate  
            preservation of the public health, welfare, or safety; or
           the contractor will conduct training courses for which  
            appropriately qualified trial court employee instructors are  
            not available from the court, provided that permanent  
            instructor positions shall be filled through the process for  
            hiring trial court employees.

           This bill  would authorize a trial court or the Judicial Council  
          of California to adopt more restrictive rules regarding the  
          contracting of court services.

           This bill  would apply the above standards and exceptions to any  
          contract entered into, renewed, or extended after the effective  
          date of this Act.  Any contract entered into, renewed, or  
          extended by a trial court between the date this bill is enacted  
          and the date it becomes operative that does not comply with the  
          bill's requirements must terminate 90 days after the date this  
          bill becomes operative, unless the contract contains an earlier  
          termination date, except that the bill would allow the contract  
          to be renewed or extended in compliance with those requirements.  


           This bill  would include a severability clause.

                                        COMMENT
           
          1.  Stated need for the bill  

          According to the author:

            Historically, trial courts in California were county entities,  
            funded by the Counties and thus subject to the privatization  
            restrictions that applied to counties.  But in 1997, the  
            Legislature passed the Lockyer-Isenberg Trial Court Funding  
            Act [AB 233 (Escutia and Pringle, Ch. 850, Stats. 1997)] and  
            shifted the responsibility for funding from the Counties to  
            the State.  Subsequently, many of the laws that had previously  
            applied to the trial courts no longer applied once they were  
            removed from the Counties' jurisdictions, such as open  
                                                                      



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            meetings, access to public records, whistleblower protections,  
            public contract code requirements for contracting purposes and  
            provisions relating to privatization.  

            As a result of recent budget cuts to the trial courts, some  
            courts have sought alternative ways to provide critically  
            important services to the public, including privatizing some  
            of the most sensitive services that help preserve the  
            integrity of our impartial trial court system.  Alternatives  
            being considered include privatizing the handling and  
            maintenance of private, confidential and sensitive information  
            contained in official court records. 

          The American Federation of State, County and Municipal Employees  
          (AFSCME), AFL-CIO, co-sponsor of this bill, writes that  
          "Assembly Bill 566 provides an efficient way of evaluating  
          whether privatizing trial court jobs is in the best interests of  
          the state.  These specific standards in this bill protect trial  
          court services, and all contracts must pay working wages and  
          cannot undercut current employees' wages.  This bill is  
          important because i[t] protects trial court employees and stops  
          automatic privatization of these public sector jobs." 

          The Service Employees International Union (SEIU), co-sponsor of  
          this bill, adds that:

            AB 566 would allow for privatization of trial court services  
            if certain good government contracting standards are first  
            met; such as 1) a fair cost analysis, 2) proven savings to the  
            taxpayers, 3) competitive bidding, 4) proven qualifications of  
            the contractor, 5) doesn't displace employees, and 6)  
            performance and financial audits are conducted.  
            . . .
            [Tax] dollars have the dual responsibility of being well spent  
            for quality services, as well as being an investment in the  
            larger society.  In fact, it could be argued that the level of  
            accountability should be higher for trial court services.   
            Being a nation of laws, a fair and impartial judicial system  
            that is accessible to all is a critical underpinning of  
            democracy and is fundamental to the success of a civilized  
            society.  

            Trial court services represent a "public good," which are most  
            effectively delivered by government and public employees.  AB  
            566 correctly places the burden of altering one of the most  
            essential public services on those advocating it.   
                                                                      



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            Additionally, profit should never be associated with any  
            aspect of fair review and fair rights to redress in an  
            impartial judicial system that should be accessible to all  
            people. 

            Finally, the provisions contained in AB 566 are neither  
            radical nor a departure from current law governing most other  
            parts of government and will ensure that tax dollars are  
            accountable.

          2. Contracting out of services in the Judicial Branch  

          Modeled upon existing statutes that require various governmental  
          entities (executive branch agencies, public K-12 schools,  
          community colleges, and public libraries) to meet specified  
          standards before executing personal service contracts, this bill  
          would allow the trial courts to engage in personal service  
          contracts 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, if certain requirements are met,  
          or if a specified exception applies.  

          First, the bill would require that a trial court wishing to  
          enter into a new contract, or to renew or extend a contract, for  
          personal services, 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.  Moreover,  
          the contract must not be approved solely on the basis that  
          savings will result from lower contractor pay rates or benefits  
          (except that contracts would be eligible for approval if the  
          contractor's wages are at the industry level and do not undercut  
          trial court pay rates).  Furthermore, this bill would prohibit  
          the contracting out of services if the contract would cause an  
          existing trial court employee to incur a loss of his or her  
          employment or employment seniority, a reduction in wages,  
          benefits, or hours, or an involuntary transfer to a new location  
          requiring a change in residence.  

          Additionally, this bill would differ from the current statutes  
          that apply to state entities seeking to contract out personal  
          services by including elements that reflect the unique role of  
          trial courts.  For example, the bill would provide that a  
          contract cannot be approved if, in light of the services  
          provided by trial courts and the special nature of the judicial  
                                                                      



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          function, it would be inconsistent with the public interest to  
          have the services performed by a private entity.  Also, in  
          contrast to the current statutes (except for the statute  
          relating to libraries), this bill would impose additional  
          requirements for any contract for services in excess of $100,000  
          annually.  Namely, the bill would require that such a contract  
          also include specific, measurable performance standards and  
          provisions for audits on performance and cost savings, as well  
          as a requirement for the trial court to obtain certain  
                                                                           documentation from the potential contractor as to their  
          qualifications and any history of charges, claims, or complaints  
          against them.   

          As amended on June 15, 2013, this bill now includes several new  
          exceptions to the above requirements, thereby more closely  
          tracking existing statutes.  Pursuant to those newly added  
          exceptions, a trial court would be permitted to contract out for  
          services without meeting the above standards, if, for example: 
           the contract is between a trial court and another trial court  
            or a local government entity for services to be performed by  
            employees of the other trial court or employees of the local  
            government entity;
           the contract is for a new trial court function and the  
            Legislature has specifically mandated or authorized the  
            performance of the services by independent contractors;
           the legislative, administrative, or legal goals and purposes  
            cannot be accomplished through the utilization of trial court  
            employees because of the need to protect against a conflict of  
            interest or to ensure independent and unbiased findings in  
            situations where there is a clear need for an independent,  
            outside perspective; or
           due to an emergency, a contract is necessary for the immediate  
            preservation of the public health, welfare, or safety.

          Of note, this bill would not only apply to contracts entered  
          into, renewed, or extended on or after its operative date  
          (January 1, 2014), but also would cause the termination of any  
          non-complying contract entered into, renewed, or extended by a  
          trial court between the date this bill is enacted and the date  
          this bill becomes operative.  That termination would be required  
          no later than 90 days after the date the bill becomes operative.  
           

          In opposition to the bill, the Judicial Council of California  
          writes that despite the recent amendments to the bill, it  
          remains opposed as the bill would "severely hamper the trial  
                                                                      



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          courts' ability to contract with private entities for personal  
          services. . . .  AB 566 continues to require trial courts to  
          demonstrate actual cost savings for the duration of every  
          personal services contract but does not allow this cost savings  
          to be achieved through lower contract pay rates or benefits.   
          Further, the contract cannot cause any existing trial court  
          employee to lose their job, seniority, or experience a reduction  
          in wages, benefits, hours, or an involuntary transfer requiring  
          a change in residence.  In other words, AB 566 requires courts  
          to use court employees to perform many services even if it would  
          be more cost effective for courts to contract for these  
          services.  AB 566 also imposes audit requirements on courts that  
          do enter into private contracts that are far more extensive and  
          costly than requirements placed on other government entities."  
          The Judicial Council raises concerns not only with how the bill  
          generally inhibits the courts' ability to manage their staff and  
          resources in response to recent budget cuts, but also with the  
          fact that the bill does not include the same list of exceptions  
          to the contracting restrictions that are present in the other  
          statutes relating to executive branch agencies, school districts  
          and community colleges, and at the same time contains additional  
          restrictions not included in those other statutes.  The Judicial  
          Council also raises concerns with respect to the retroactivity  
          provisions of the bill.  

          As a matter of public policy, any restriction on the ability for  
          trial courts to enter into personal service contracts must be  
          appropriately tailored so as to address concerns that arise when  
          a trial court elects to privatize services.  At the same time,  
          those restrictions must be carefully balanced so as not to  
          unduly restrict a trial court's ability to perform its vital  
          functions in times of fiscal crisis.  To arguably achieve that  
          balance, the author offers amendments which would add new  
          exceptions to:  (1) permit courts to contract out for services  
          that are urgent, temporary, or occasional in nature if the delay  
          in hiring trial court employees would frustrate their very  
          purpose; and (2) permit contracting out for services that are of  
          such a highly specialized nature that the requisite experience,  
          knowledge or ability cannot be obtained from court employees.   
          Furthermore, due to continuing concerns about trial courts  
          contracting out for court reporter services, the amendment  
          allowing courts to contract out for services that are urgent in  
          nature would not to apply to contracts for the services of  
          official court reporters.  

          Additionally, to address concerns raised about this bill's  
                                                                      



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          retroactive provision that would automatically terminate  
          non-complying contracts entered into between the date of  
          enactment and the operative date (the time period between the  
          Governor's signature and January 1, 2014), the author offers an  
          amendment to, instead, apply the bill prospectively to any  
          contract signed, renewed or extended after January 1, 2014.   
          That amendment also seeks to respond to concerns about trial  
          courts rushing to enter into contracts to avoid the requirements  
          of this bill by requiring courts to report details about recent  
          contracts for services that were customarily performed by trial  
          court employees, and adding intent language that the Legislature  
          consider reducing budget appropriations to courts who enter into  
          contracts that would have violated this bill.
           
             Author's Amendments  : 

             1.   On page 5, after line 17, insert:  "(3) The services  
               contracted for are of such a highly specialized or  
               technical nature that the necessary expert knowledge,  
               experience and ability cannot be obtained from the court's  
               trial court employees." and renumber accordingly

             2.   On page 5, after line 37, insert:  "(8) The services are  
               of such an urgent, temporary, or occasional nature that the  
               delay incumbent in their implementation through the process  
               for hiring trial court employees would frustrate their very  
               purpose.  This provision shall not be applied to the  
               services of official reporters." 
             3.   On page 5, strike lines 38-40, inclusive, and on page 6,  
               strike lines 1-5, inclusive, and insert:

               Sec. 2.  Section 1 of this act shall apply to any contract  
               entered into, renewed, or extended by a trial court after  
               the effective date of this act.

               Sec 3.  Each trial court shall provide a report by no later  
               than February 1, 2014 to the chairperson of the Joint  
               Legislative Budget Committee and the chairpersons of the  
               Senate Judiciary Committee and Assembly Judiciary Committee  
               if the trial court entered into a contract between July 1,  
               2013 and the effective date of this act for services that  
               were provided or customarily provided by its trial court  
               employees and that contract has a term extending beyond  
               March 31, 2014.  The report shall provide the following  
               information for each such contract:  1) a copy of the  
               contract, 2) an analysis of whether the contract would have  
                                                                      



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               been permissible under the standards set out in Section 1  
               of this act, 3) an analysis of whether the contract  
               resulted in the displacement of trial court employees, and  
               4) an analysis of whether the contract involves the use of  
               contractors to perform the type of services that were  
               customarily performed by trial court employees.  It is the  
               intent of the Legislature to consider the reduction of  
               future budget appropriations to each trial court by the  
               amount of any such contract if the Legislature concludes  
               that the contract would not have been permissible under the  
               standards provided by Section 1 of this act.

             4.   On page 6, renumber "Sec. 3" to "Sec. 4" 

          3.  Other arguments in opposition  

          In addition to the arguments raised in Comment 2, the Judicial  
          Council notes:

            [This bill reduces] local control and discretion over  
            trial court management.  Trial courts are uniquely and  
            constitutionally independent, as well as different from  
            one another.  Each presiding judge has the  
            responsibility to manage the court in a manner deemed  
            appropriate to the unique characteristics of that court  
            and its court users.  Restrictions on the way trial  
            courts provide for appropriate staffing reduces the  
            courts' ability to serve the public.  Many courts  
            currently contract for services, such as child custody  
            evaluations and probate investigations.  In light of  
            judicial branch autonomy, and taking into consideration  
            the budget crisis facing the trial courts, the courts  
            must not be hampered in their ability to provide court  
            services, even with respect to personal service  
            contracts. 

          The Judicial Council also takes issue with the bill  
          applying to the renewal or extension of a contract for  
          services that were performed by a trial court's employees  
          as of July 1, 2012, because the language "arbitrarily  
          settles on a date in order to prohibit the renewal of  
          specific contracts recently entered into by particular  
          courts."  Staff notes that the effect of that provision is  
          not to void any existing contract, but, to address the  
          situation where trial court employees performed services  
          as of July 1, 2012, but, court employees no longer perform  
                                                                      



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          those services as of July 1, 2014.  

          Finally, the Judicial Council writes that, "[i]n 2011, SB 78  
          created the Judicial Branch Contract Law (Pub. Contract Code  
          section 19201 et seq.), which extended all portions of the  
          Public Contract Code applicable to state agencies to the  
          judicial branch.  SB 78 also provided for audits to determine  
          compliance with the Judicial Branch Contract Law.  [The]  
          Judicial Branch Contract Law, through the Public Contract Code  
          and Judicial Branch Contracting Manual, contains detailed  
          requirements for the trial courts when they engage in service  
          contracts.  The strict requirements for contracts under AB 566  
          (section 71621(a)(1)-(8) of the bill) conflicts with Judicial  
          Branch Contract Law."

          In response, the proponents of the bill argue that AB 566  
          contains additional provisions that the trial courts must follow  
          when contacting out "for any services that are currently or  
          customarily performed by that trial court's employees."  In  
          other words, this bill only deals with a subset of contracts and  
          no such major conflict would exist, as suggested by the fact  
          that other agencies currently comply with the Public Contract  
          Code, as well as similar statutes as proposed by AB 566.

          Committee staff notes that a significant number of the  
          state's superior courts also submitted letters of  
          opposition for reasons similar to those stated by the  
          Judicial Council.  Additionally, the Superior Court of  
          Placer County writes that: 

            [I]n February 2013[,] the court awarded a contract to a  
            private court reporter firm to provide court reporting  
            services.  It is anticipated that this will result in a  
            cost-saving to this court of $600,000 annually.  It is  
            important to note that the court's memorandum of  
            understanding with the labor organization representing  
            court employees specifically allowed for privatization  
            of functions.  

            It should be noted that the transition to private court  
            reporters has not resulted in a decrease in the level of  
            service required for court proceedings that require  
            court reporters. . . .   Some of the court reporters who  
            previously worked for the court are now employed by the  
            private firm that provides service to the court.  The  
            court reporting firm that provides service to our court  
                                                                      



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            has been a provider of regular court reporting service  
            to another nearby court. 

            It would not have been possible for the court to achieve  
            an annual savings of $600,000 if AB 566 had been in  
            effect.  Indeed, had AB 566 been in effect, the court  
            would have been left with no alternative but to layoff  
            additional clerk staff and non-reporter courtroom staff.  
             Such cutbacks also would necessarily result in further  
            reductions in the court's operating hours, courtrooms,  
            and would result in additional delays in providing  
            service to the public.  This would have had a crippling  
            effect on our already reduced services and the public's  
            access to justice after years of fiscal restraint and  
            funding reductions.  

          The Superior Court of Napa County writes: 

            Implementation of AB 566 would be incredibly expensive  
            and actually detract from court justice services to  
            citizens of California.  The Napa Superior Court  
            typically uses contractors under two key sets of  
            circumstances.  First, we use them to provide support  
            services that are indispensable but not necessarily part  
            of the court justice services required by our  
            constituents.  In many cases, such services are for a  
            limited duration or require specialized skills and  
            knowledge that are not possessed by current court staff.  
             Examples include network upgrades and technical  
            support, case management upgrades and enhancements and  
            janitorial services.  Second, we also use contract  
            services for some routine tasks that can be done more  
            efficiently by contractors, thereby allowing us to focus  
            staff resources on more complex and valuable public  
            services.  For example, rather than expending valuable  
            employee resources to input traffic citations, the court  
            contracts for this service, thereby freeing staff to  
            spen[d] time performing direct public service tasks such  
            as explaining court procedures, facilitating access to  
            justice services, and assisting self-represented  
            litigants with completing court documents. 

            We estimate that, if signed into law, AB 566 would  
            increase our operational costs by as much as $500,000. .  
            . .  As a result, access to needed justice services  
            would actually be severely hampered by implementation of  
                                                                      



          AB 566 (Wieckowski)
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            this legislation. 

            Besides failing to enhance access to court services, AB  
            566 does not provide any significant safeguards for  
            court employees that they do not already possess.  Based  
            on longstanding labor relations legal requirements and a  
            locally negotiated set of personnel rules and memoranda  
            of understanding that clearly defines bargaining unit  
            work, the Napa Superior Court already has  a  
            responsibility to meet and confer on any action that  
            would contract out services currently performed by court  
            employees.  This is true for most, if not all, other  
            California trial courts.

          Finally, the Superior Court of Orange County asserts that  
          the bill actually "does not restrict its application to  
          personal services contracts.  The first sentence says it  
          applies to 'any contract, for any services, that are  
          currently or customarily performed by that trial court's  
          employees . . . '  Over the last several years[,] our  
          court has implemented a number of technology based  
          enhancements that have significantly reduced our costs  
          and, even better, provided greater service to litigants,  
          lawyers and the public.  Litigants and lawyers can now  
          e-file documents within the court 24 hours a day instead  
          of driving down to the court or mailing paper copies.   
          Receiving documents electronically has also allowed us to  
          get rid of paper files and makes copies of court documents  
          available almost instantaneously through the internet to  
          anyone at less cost.  We are also working with law  
          enforcement to receive traffic citations electronically  
          instead of sending paper copies which we have to manually  
          enter data into our cases management system.  In addition,  
          we have outsourced our email to a cloud provider instead  
          of maintaining the system in house.  It would even reverse  
          savings as simple as contracting with a vendor to provide  
          and maintain printers and copiers.  Since aspects of all  
          these services were provided by trial court employees,  
          this bill would require us to undo the technology, go back  
          to a paper world, and hire court employees to handle  
          paper."  


           Support  :  Association for Los Angeles Deputy Sheriffs;  
          California Court Reporters Association; California Labor  
          Federation; California Official Court Reporters Association;  
                                                                      



          AB 566 (Wieckowski)
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          California Professional Firefighters; California Public  
          Defenders Association; California School Employees Association;  
          Deposition Reporters Association of California; Glendale City  
          Employees Association; Laborers' Locals 777 & 792; Los Angeles  
          County Probation Officers Union, Local 685; Organization of SMUD  
          Employees; Professional Engineers in California Government;  
          Professional and Technical Engineers, IFPTE Local 21; Public  
          Employees Local Union #1; Riverside Sheriffs' Association; San  
          Bernardino Public Employees Association; San Luis Obispo County  
          Employees Association; Santa Rosa City Employees Association;  
          State Building and Construction Trades Council, AFL-CIO; one  
          individual 

           Opposition :  California Chamber of Commerce; Superior Court of  
          California, County of Alameda; Superior Court of California,  
          County of Amador; Superior Court of California, County of Contra  
          Costa; Superior Court of California, County of El Dorado;  
          Superior Court of California, County of Fresno; Superior Court  
          of California, County of Glenn; Superior Court of California,  
          County of Imperial; Superior Court of California, County of  
          Kings; Superior Court of California, County of Lake; Superior  
          Court of California, County of Lassen; Superior Court of  
          California, County of Los Angeles; Superior Court of California,  
          County of Marin; Superior Court of California, County of  
          Mariposa; Superior Court of California, County of Mendocino;  
          Superior Court of California, County of Merced; Superior Court  
          of California, County of Modoc; Superior Court of California,  
          County of Monterey; Superior Court of California, County of  
          Napa; Superior Court of California, County of Nevada; Superior  
          Court of California, County of Orange; Superior Court of  
          California, County of Placer; Superior Court of California,  
          County of Riverside; Superior Court of California, County of  
          Sacramento; Superior Court of California, County of San  
          Bernardino; Superior Court of California, County of San Diego;  
          Superior Court of California, County of San Joaquin; Superior  
          Court of California, County of San Luis Obispo; Superior Court  
          of California, County of Santa Clara;  Superior Court of  
          California, County of Santa Cruz; Superior Court of California,  
          County of Shasta; Superior Court of California, County of  
          Siskiyou; Superior Court of California, County of Solano;  
          Superior Court of California, County of Sonoma; Superior Court  
          of California, County of Sutter; Superior Court of California,  
          County of Trinity; Superior Court of California, County of  
          Tulare; Superior Court of California, County of Tuolumne;  
          Superior Court of California, County of Ventura

                                                                      



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                                        HISTORY
           
           Source  :  American Federation of State, County and Municipal  
          Employees, AFL-CIO; Service Employees International Union

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          AB 438 (Williams, Ch. 611, Stats. 2011) See Background.

          SB 78 (Committee on Budget and Fiscal Review, Ch. 10, Stats.  
          2011) See Comment 3.

          AB 3084 (Horton, 2004) would have applied specified contracting  
          requirements to a metropolitan water district's contracts for  
          services.  AB 3084 was held in the Senate Local Government  
          Committee and died without a hearing.

          SB 906 (Alarcon, 2003) would have required all general law  
          county and city contracts for services to achieve cost savings  
          and meet certain other requirements.  SB 906 died on the  
          Assembly Floor.  

          SB 163 (Alarcon, 2003) was substantially similar to SB 906 and  
          was held in the Senate Appropriations Committee.

          SB 1419 (Alarcon, Ch. 894, Stats. 2002) See Background.

          AB 233 (Escutia and Pringle, Ch. 850, Stats. 1997) See Comment  
          1.

          AB 3336 (Ryan, Ch. 1057, Stats. 1982) See Background.

           Prior Vote  :

          Assembly Floor (Ayes 51, Noes 25)
          Assembly Appropriations Committee (Ayes 12, Noes 5) 
          Assembly Judiciary Committee (Ayes 7, Noes 2)  

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