BILL NUMBER: AB 1575	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 20, 2014

INTRODUCED BY   Assembly Member Pan
    (   Coauthor:   Assembly Member  
Achadjian   ) 

                        JANUARY 30, 2014

   An act to add Section 10377 to the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1575, as amended, Pan. Public contracts for services: reports:
termination of service contracts.
   Existing law sets forth requirements for the acquisition of goods
and services by state  agencies and   agencies,
 sets forth the various responsibilities of the Department of
General Services and other state agencies in overseeing and
implementing  those  state contracting procedures and
policies  , and provides that a willful violation of its
provisions for which another punishment is not provided is a
misdemeanor  .
   This bill would require contracts for personal services to include
specific performance criteria and cost parameters, require reports
by the contractor, and provide for cancellation by the contracting
agency if the contractor fails to comply with contract requirements
or the law  , as specified  . 
   By expanding the definition of an existing crime, this bill would
impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no  yes  .



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

  SECTION 1.  Section 10377 is added to the Public Contract Code, to
read:
   10377.  Any service contract shall incorporate specific
performance criteria and cost parameters, and the contractor shall
submit quarterly reports to the state agency's contracting official
on the contractor's compliance with the performance criteria and
actual  costs incurred   amounts billed to the
state agency  . The service contract may be  cancelled
  canceled  if the contractor fails to comply with
the performance criteria and other requirements set out in the
contract and if annual  costs   charges 
exceed those established by the contract. The contract may be
 cancelled   canceled  at any time if the
contractor fails to comply with all applicable local, state, and
federal laws, regulations, and statutes  related to the contract
 .
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.