BILL ANALYSIS Ó
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2015 - 2016 Regular
Bill No: AB 1293 Hearing Date: 7/13/15
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|Author: |Holden |
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|Version: |3/26/15 As amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Pamela Schneider |
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Subject: State public employment: labor negotiations
SOURCE: Service Employees International Union, Local 1000
ASSEMBLY VOTES:
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|Assembly Floor: |53 - 24 |
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|Assembly Appropriations |12 - 5 |
|Committee: | |
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|Assembly Public Employees, |6 - 1 |
|Retirement/Soc Sec Committee: | |
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DIGEST: This bill prohibits the use of state personal
services contracts for reasons other than achieving cost savings
if the contract would displace state civil service employees.
ANALYSIS:
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.
AB 1293 (Holden) Page 2 of ?
2)Permits the use of personal services contracts in order to
achieve cost savings provided that specified 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 executed contract, as specified.
5)Permits the use of personal services contracts in
circumstances other than to achieve cost savings, 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 nature of the work is such that the Government
Code standards for emergency appointments apply.
d) 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 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
AB 1293 (Holden) Page 3 of ?
the certification of notification process.
This bill:
1)Provides that the use of personal services contracts in
response to particular conditions other than to achieve cost
savings 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 changes in shifts
or days off or reassignment to other positions in the same
class and general location.
Background
According to the author of the bill:
In August 2014, California Correctional Health Care
Services (CCHCS) issued State Restriction of Appointment
(SROA) notices (i.e., 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
AB 1293 (Holden) Page 4 of ?
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 staff when it creates a
staffing emergency resulting in the use of
contract/registry staff.
Prior/Related Legislation
AB 906 (Pan, Chapter 744, Statutes of 2013) 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
According to the Assembly Appropriations Committee, costs are
unknown, but potentially substantial costs to state agencies,
both General and Special Funds, if this bill interferes with
current emergency staffing and hiring processes.
SUPPORT:
Service Employees International Union, Local 1000 (source)
American Federation of State, County and Municipal Employees
California School Employees Association
OPPOSITION:
None received
ARGUMENTS IN SUPPORT:
According to the sponsor:
AB 1293 (Holden) Page 5 of ?
In June 2014, California Correctional Health Care Services
(CCHCS) issued layoff notices to its healthcare staff.
According to vacancy data from the State Controller's
Office (SCO), two months before layoff notices were issued,
the classes that received notices had a total of 566
vacancies. Following the layoffs, in December 2014,
vacancies increased by 278 to 844. Excessive overtime
hours, coupled with vacancies prove that there is more work
than the department is currently staffed for.
In January 2015, CCHCS issued a memorandum regarding
implementation of a Limited-Term Intermittent Nursing Pool.
They plan to hire 785.3 CNAs, LVNs and RNs. CCHCS
currently has retention and recruitment problems due to
incomparable pay and benefits provided by other state
departments, county, and private institutions. The issue
of staffing was created by CCHCS and now they are replacing
the regular workforce with temporary workers and registry
staff.
AB 1293 gets to this issue by prohibiting state departments
from laying off civil service employees, artificially
creating the illusory need for emergency staffing
situations that have to be filled by an alternative or
temporary workforce. This scenario circumvents AB 906,
which requires unions to be notified when new contracts are
put out to bid, because CCHCS recruited registry staff
during the layoff process from pre-existing contracts.