BILL ANALYSIS Ó
AB 1293
Page 1
GOVERNOR'S VETO
AB
1293 (Holden)
As Enrolled September 4, 2015
2/3 vote
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|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 | |
| | | | |
| | | | |
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|ASSEMBLY: |53-24 |(June 2, 2015) |SENATE: |25-15 |(September 2, |
AB 1293
Page 2
| | | | | |2015) |
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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:
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.
AB 1293
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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 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.
AB 1293
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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
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
AB 1293
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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 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.
GOVERNOR'S VETO MESSAGE:
This bill would prohibit a personal services contract if it
AB 1293
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causes layoff, demotion or involuntary transfer to a new
classification or location.
Currently, personal service contracts cannot be used in lieu of
existing civil service work. Furthermore, before a state agency
can enter into a personal services contract, the agency must
demonstrate, among other things, that the services cannot be
performed by and will not displace civil service employees.
I understand the sponsors have introduced this bill in response
to recent action by the federal receiver's office. As such, I am
directing the Department of Corrections to investigate that
office's practices with respect to Government Code Section
19130.
Analysis Prepared by:
Karon Green / P.E.,R., & S.S. / (916) 319-3957
FN:
0002499