BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1293 (Holden) - State public employment:  labor negotiations
          
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          |Version: March 26, 2015         |Policy Vote: P.E. & R. 3 - 2    |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 17, 2015   |Consultant: Robert Ingenito     |
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          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  
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          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  
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          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.


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