BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1293|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 1293
Author: Holden (D)
Amended: 3/26/15 in Assembly
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE: 3-2, 7/13/15
AYES: Pan, Beall, Hall
NOES: Morrell, Fuller
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bate, Nielsen
ASSEMBLY FLOOR: 53-24, 6/2/15 - See last page for vote
SUBJECT: State public employment: state personal services
contracts
SOURCE: Service Employees International Union, Local 1000
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
Page 2
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.
1)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.
2)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.
AB 1293
Page 3
3)Requires the Department of General Services to establish 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.
Comments
According to the author:
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 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
AB 1293
Page 4
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 Legislation
AB 906 (Pan, Chapter 744, Statutes of 2013) prohibits 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.:YesLocal: No
According to the Senate Appropriations Committee this bill will
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.
SUPPORT: (Verified8/27/15)
Service Employees International Union, Local 1000 (source)
American Federation of State, County and Municipal Employees
California School Employees Association
OPPOSITION: (Verified8/27/15)
None received
ARGUMENTS IN SUPPORT: According to the sponsor:
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,
AB 1293
Page 5
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.
ASSEMBLY FLOOR: 53-24, 6/2/15
AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,
Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin,
Jones-Sawyer, Levine, Linder, Lopez, Low, McCarty, Medina,
Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Waldron, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,
Dahle, Beth Gaines, Gallagher, Hadley, Harper, Jones, Kim,
Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte,
Olsen, Patterson, Steinorth, Wagner, Wilk
NO VOTE RECORDED: Chávez, Eggman, Grove
Prepared by:Pamela Schneider / P.E. & R. / (916) 651-1519
AB 1293
Page 6
8/31/15 11:43:36
**** END ****