BILL ANALYSIS Ó
AB 1293
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ASSEMBLY THIRD READING
AB
1293 (Holden)
As Amended March 26, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+---------------------+---------------------|
|Public |6-1 |Bonta, Waldron, |Wagner |
|Employees | |Cooley, | |
| | |Jones-Sawyer, | |
| | |O'Donnell, Rendon | |
| | | | |
|----------------+------+---------------------+---------------------|
|Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, |
| | |Calderon, Daly, |Gallagher, Jones, |
| | |Eggman, |Wagner |
| | | | |
| | | | |
| | |Eduardo Garcia, | |
| | |Gordon, Holden, | |
| | |Quirk, Rendon, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Prohibits the use of personal services contracts for
reasons other than achieving cost savings if the contract would
displace civil service employees. Specifically, this bill:
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1)Provides that the use of personal services contracts in response
to particular conditions is prohibited if it will cause the
displacement of civil service employees.
2)Defines "displacement" to include layoffs, demotions,
involuntary transfers to a new class or to a new location
requiring a change in residence, and time base reductions.
3)Specifies that displacement does not include shift changes or
reassignment to other positions in the same class and general
location.
EXISTING LAW:
1)Requires, based on provisions in the California Constitution,
that services provided by state agencies generally be performed
by state civil service employees.
2)Permits the use of personal services contracts in order to
achieve cost savings provided that certain criteria are met.
3)Requires a state agency proposing to execute a personal services
contract to achieve cost saving to notify the State Personnel
Board (SPB) of its intention and requires the SPB to immediately
contact specified persons or organizations upon receipt of the
notice so that they may be given a reasonable opportunity to
comment on the proposed contract.
4)Authorizes an employee organization to request, within 10 days
of receiving the above notice, the SPB to review any proposed or
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executed contract, as specified.
5)Permits the use of personal services contracts in certain other
circumstances, including:
a) When the "nature of the services" is such that the
services cannot be adequately rendered by an existing agency
of the public entity.
b) If the state seeks to contract for private assistance to
perform "new functions" not previously undertaken by the
state or covered by an existing department.
c) When the state, under specified conditions contracts with
private contractors to achieve cost savings.
d) When the nature of the work is such that the Government
Code standards for emergency appointments apply.
e) When the services are of such urgent, temporary, or
occasional nature that the delay incumbent in their
implementation under civil service would frustrate their very
purpose.
6)Prohibits a state agency from executing a personal services
contract for non-cost savings reasons, except in specified
sudden and unexpected situations, until it has certified that
all employee organizations that perform the type of work being
contracted out have been notified.
7)Requires, at a minimum, the notification to include a full copy
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of the proposed contract. Permits the notifying agency to
redact specific confidential or proprietary information from the
notice.
8)Requires the Department of General Services (DGS) to establish
the certification of notification process.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, unknown, but potentially substantial costs to state
agencies, both General and Special Funds, if this bill interferes
with current emergency staffing and hiring processes.
COMMENTS: According to information provided to the Committee by
the sponsor of this bill, "In August 2014, California Correctional
Health Care Services (CCHCS) issued State Restriction of
Appointment (SROA) notices (layoff notices) to employees in
several medical services classifications. During the period in
which the layoff notices were issued, the state actively recruited
private vendor staff through existing contracts and Craigslist."
"SROA notices generally imply that there is a layoff due to the
fact that there is not enough work. However, for a six month
period ending June 2014, the overtime for Registered Nurses and
Licensed Vocational Nurses was upwards of 400,000 hours for a six
month period. Some staff who received SROA notices were
transferred to other positions at other institutions doing the
same work. Others have not found work yet and will remain
unemployed. Currently, CCHCS is working to address Mandatory
overtime by recruiting 785 Limited Term Staff. Recruiting
Limited-Term Intermittent staff will be difficult because they are
easier to terminate because they have less employee protections.
When departments need to save money they can cut intermittent
workers' hours, terminate contract employees, or terminate
temporary appointments such as limited-term appointments.
Finally, departments should not be allowed to layoff civil service
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staff when it creates a staffing emergency resulting in the use of
contract/registry staff."
According to the author, "AB 1293 gets to the issue by prohibiting
state departments from laying off civil service employees thereby
artificially creating the illusory need for emergency staffing
situations that have to be filled by an alternative or temporary
workforce, and circumventing AB 906 (Pan), Chapter 744, Statutes
of 2013, by recruiting registry staff during the layoff process
from pre-existing contracts."
AB 906 prohibited a state agency from executing a personal
services contract, except in specified sudden and unexpected
situations, until it has certified that all employee organizations
that perform the type of work being contracted out have been
notified. According to the author, AB 906 was intended to ensure
that state agencies and departments are working in conjunction
with the Legislature to build and maintain a strong civil service
system, as envisioned in the California Constitution.
Analysis Prepared by:
Karon Green / P.E.,R., & S.S. / (916) 319-3957
FN: 0000603
AB 1293
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