BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 583
          Author:   Gomez (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  4-2, 6/19/13
          AYES:  Wolk, DeSaulnier, Hernandez, Liu
          NOES:  Knight, Emmerson
          NO VOTE RECORDED:  Beall

           ASSEMBLY FLOOR  :  52-19, 5/16/13 - See last page for vote


           SUBJECT  :    County free public libraries:  withdrawal:  use of  
          private contractors

           SOURCE  :     California State Council of the SEIU


           DIGEST  :    This bill requires the board of trustees, common  
          council, or other legislative body of a city or the board of  
          trustees of a library district in which a withdrawal from the  
          county free library system becomes effective on or after January  
          1, 2012 to comply with specified requirements before entering  
          into a contract to operate the city's or the district's  
          libraries with a private contractor that will employ library  
          staff to achieve cost savings.  This bill provides that the  
          specified requirements do not apply if the city or district  
          libraries are funded only by the proceeds of a special tax  
          imposed by the city or district, pursuant to state law.

           ANALYSIS  :    
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          Existing law: 

          1.Imposes requirements as specified by AB 438 (Williams, Chapter  
            611, Statutes of 2011) until January 1, 2019, on a city or  
            library district that intends to withdraw from a county free  
            library system and operate libraries with a private contractor  
            that will employ library staff to achieve cost savings, as  
            follows: 

             A.   Establishes public notification requirements for the  
               legislative body of the city or board of trustees of a  
               library district prior to the meeting; 

             B.   Specifies that the legislative body of a city or the  
               board of trustees of a library district must clearly  
               demonstrate that the contract will result in overall cost  
               savings as compared to the city's or library district's  
               actual costs of providing the same services, for the  
               duration of the entire contract; 

             C.   Prohibits the contract for library services from causing  
               an existing city or library district employee from  
               incurring 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; 

             D.   Requires the contract to be awarded through a publicized  
               competitive bidding process; 

             E.   Requires provisions regarding the qualification of the  
               staff that will perform the work under the contract, and  
               assurances that the contractor's hiring practices meet  
               nondiscrimination standards; 

             F.   Requires the contract to specify that it can be  
               terminated, if the contractor fails to perform, by the city  
               or library district without penalty, if there is a material  
               breach of the contract; 

             G.   Establishes additional requirements, if the contract for  
               library services is over $100,000 on the contractor to  
               disclose specified information, and for audits to measure  

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               performance standards and cost savings; 

             H.   Prohibits the term of the contract from being longer  
               than five years from the date on which the board of  
               trustees of a library district, or the legislative body of  
               a city approves the contract; 

             I.   Specifies these provisions do not preclude a city,  
               library district, or local government from adopting more  
               restrictive rules regarding the contracting of library  
               services; and

             J.   Specifies the requirements, as described above, also  
               apply to the special provisions for a withdrawal of a city  
               or library district from the county free library system in  
               Los Angeles County and Riverside County. 

          This bill requires a city or library district in which a  
          withdrawal from the county free library system became effective  
          on or after January 1, 2012, to comply with specified  
          requirements before entering into a contract to operate a  
          library or libraries with a private contractor.  Specifically,  
          this bill: 

          1.Requires that a legislative body of a city or board of  
            trustees of a library district in which a withdrawal from the  
            county free library system becomes effective on or after  
            January 1, 2012, must comply with the specified statutory  
            requirements established by AB 438 (Williams, Chapter 611,  
            Statutes of 2011), before entering into a contract to operate  
            a library or libraries with a private contractor that will  
            employ library staff to achieve cost savings. 

          2.Requires that a legislative body of a city or board of  
            trustees of a library district in which a withdrawal from the  
            county free library system in both Los Angeles County or  
            Riverside County becomes effective on or after January 1,  
            2012, must comply with specified statutory requirements  
            established by AB 438 before entering into a contract to  
            operate a library or libraries with a private contractor that  
            will employ library staff to achieve cost savings. 

          3.Exempts a library or libraries from the withdrawal process, if  
            the library or libraries are funded only by proceeds of a  

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            special tax imposed by the city or library district, as  
            specified. 

          4.Makes technical changes. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  6/20/13)

          California State Council of the SEIU (source) 
          AFSME
          California Fair Elections Campaign (SCV Fair Elections  
          Committee)
          California Labor Federation
          Glendale City Employees Association
          Los Angeles Alliance for a New Economy
          Organization of SMUD Employees
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association

           OPPOSITION  :    (Verified  6/20/12)

          City of Simi Valley
          League of California Cities
          Library Systems and Services, Inc.

           ARGUMENTS IN SUPPORT  :    SEIU argues that this bill simply  
          closes a loophole and that the provisions of the bill are  
          neither radical nor a departure from current law governing the  
          state, school districts and community colleges. Furthermore,  
          this bill will ensure that tax dollars are accountable and well  
          spent. 

           ARGUMENTS IN OPPOSITION  :    The League of California Cities, in  
          opposition, writes this bill further erodes local control by  
          expanding upon provisions in current law established by AB 438  
          which ties the hands of local governments.  
           

           ASSEMBLY FLOOR  : 52-19, 05/16/13
          AYES: Achadjian, Alejo, Ammiano, Atkins, Bloom, Blumenfield,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  

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            Calderon, Campos, Chau, Cooley, Daly, Dickinson, Eggman, Fong,  
            Fox, Frazier, Garcia, Gatto, Gomez, Gordon, Gray, Hall, Roger  
            Hernández, Jones-Sawyer, Levine, Lowenthal, Medina, Mitchell,  
            Mullin, Muratsuchi, Nazarian, Pan, Perea, V. Manuel Pérez,  
            Quirk, Quirk-Silva, Rendon, Salas, Skinner, Ting, Torres,  
            Weber, Wieckowski, Williams, Yamada, John A. Pérez
          NOES: Bigelow, Chávez, Conway, Dahle, Donnelly, Beth Gaines,  
            Hagman, Harkey, Jones, Linder, Logue, Maienschein, Mansoor,  
            Nestande, Olsen, Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED: Allen, Chesbro, Gorell, Grove, Holden,  
            Melendez, Morrell, Stone, Vacancy

          AB:nl  6/20/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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