BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1293 (Holden) - State public employment: labor negotiations ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: March 26, 2015 |Policy Vote: P.E. & R. 3 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1293 would prohibit the use of state personal services contracts for reasons other than achieving cost savings if the contract would displace state civil service employees. Fiscal Impact: This bill would result in unknown costs, potentially over $50,000 (General and/or special funds), to the extent this bill were to impact current emergency staffing and hiring processes. Background: Current law generally requires that services provided by state agencies generally must be performed by state civil service AB 1293 (Holden) Page 1 of ? employees. However, the use of personal services contracts is permitted in certain instances, including the following: To achieve cost savings provided that specified criteria are met. For other non cost-saving circumstances, including (1) when the nature of the services is such that they cannot be adequately rendered by an existing agency of the public entity, (2) 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, (3) when the nature of the work is such that the Government Code standards for emergency appointments apply, or (4) 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. Current law generally 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. Proposed Law: This bill would (1) provide 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) define "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, and (3) specify that displacement does not include changes in shifts or days off or reassignment to other positions in the same class and general location. AB 1293 (Holden) Page 2 of ? 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. Staff Comments: This bill would prohibit state departments from laying off civil service employees to create a situation where the hiring of personal services contractors is needed. -- END --