BILL NUMBER: AB 1575	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 20, 2014
	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
   Section 19139 to the Government Code  , relating
to  public contracts.   personal services
contracts. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1575, as amended, Pan.  Public contracts for services:
reports: termination of service contracts.   Personal
services contracts: reports and termination of contracts.  
   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 sets forth requirements for the acquisition of goods
and services by state  agencies,   agencies and
 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. 
 policies. 
   This bill would require  contracts for personal services
  personal services contracts  to include specific
performance criteria and cost parameters, require reports by the
contractor, and provide for cancellation by the  state 
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:  yes   no  .



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

   SECTION 1.    Section 19139 is added to the 
 Government Code   , to read:  
   19139.  Any personal services 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 amounts billed to the state agency. The personal services
contract may be canceled if the contractor fails to comply with the
performance criteria and other requirements set out in the contract
and if annual charges exceed those established by the contract. The
personal services contract may be 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.
 
  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 amounts billed to the state agency. The service contract may
be canceled if the contractor fails to comply with the performance
criteria and other requirements set out in the contract and if annual
charges exceed those established by the contract. The contract may
be 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.