BILL NUMBER: AB 1574	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 5, 2014

INTRODUCED BY   Assembly Member Pan

                        JANUARY 30, 2014

   An act to add  Section 10354 to the Public Contract
  Section 19138 to the Government  Code, relating
to  public   p   ersonal services 
contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1574, as amended, Pan.  Service contracts: payment
guarantees.   Personal services contracts: prohibitions.
 
   The California Constitution establishes that the civil service
includes every officer and employee of the state, except as otherwise
provided in the California Constitution, and requires civil service
appointment to be made under a general system based on merit
ascertained by competitive examination.  
   The State Civil Service Act establishes standards for the use of
personal services contracts by state agencies and authorizes personal
services contracts when prescribed conditions are met. 
   Existing law imposes various requirements with respect to
contracts, including amendments, entered into by any state agency for
services to be rendered to the state, whether or not the services
involve the furnishing or use of equipment, materials, or supplies,
or are performed by an independent contractor.
   This bill would prohibit a state agency from entering into a 
personal services  contract with specified provisions, including
a contract that guarantees payment for services not provided.
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 19138 is added to the 
 Government Code   , to read:  
   19138.  (a) A state agency shall not enter into a personal
services contract that guarantees payment for services not provided.
A personal services contract for the acquisition of goods and
services shall not unduly restrict a state agency from taking actions
in the public interest.
   (b) A personal services contract shall not do any of the
following:
   (1) Provide for guaranteed occupancy rates for private prisons,
dormitories, or any other contracted facility.
   (2) Prohibit a state agency from maintaining, improving, or
building public infrastructure.
   (3) Penalize a state agency if a contractor loses revenue as a
result of natural or man-made emergencies, including acts of
terrorism or acts of nature.
   (4) Allow for an increase in fees or charges without approval by
the state agency.
   (5) Allow for an increase in fees or charges to be made in a
nonpublic manner.  
  SECTION 1.    Section 10354 is added to the Public
Contract Code, to read:
   10354.  (a) A state agency shall not enter into a contract that
guarantees payment for services not provided. A contract for the
acquisition of goods and services shall not unduly restrict a state
agency from taking actions in the public interest and shall not
unfairly place the burden of risk on taxpayers.
   (b) A contract for services shall not do any of the following:
   (1) Provide for guaranteed occupancy rates for private prisons,
dormitories, or any other contracted facility.
   (2) Prohibit a state agency from maintaining, improving, or
building public infrastructure.
   (3) Penalize a state agency if a contractor loses revenue as a
result of natural or man-made emergencies, including acts of
terrorism or acts of nature.
   (4) Allow for an increase in fees or charges without approval by
the state agency.
   (5) Allow for an increase in fees or charges to be made in a
nonpublic manner.