BILL ANALYSIS                                                                                                                                                                                                    Ó



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          ASSEMBLY THIRD READING


          AB  
          1293 (Holden)


          As Amended  March 26, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |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          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          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



















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