Amended in Senate May 5, 2015

Senate BillNo. 682


Introduced by Senator Leno

February 27, 2015


An act to add Section 71621 to the Government Code, relating to courts.

LEGISLATIVE COUNSEL’S DIGEST

SB 682, as amended, Leno. Courts.

The Trial Court Employment Protection and Governance Act establishes a trial court employee personnel system that provides authority to hire trial court personnel, regulates the classification and compensation of trial court employees, labor relations, and personnel files, and requires each trial court to establish a system of employment selection and advancement and an employment protection system.

Existing law authorizes state agencies to use personal services contracts to achieve cost savings if specified standards are satisfied, including, among other things, the contract does not cause the displacement of civil service employees and the contract is awarded through a publicized, competitive bidding process. The State Personnel Board is required to review a proposed contract upon the request of an employee organization for compliance with those standards.

This bill would establish specified standards if a trial court intends to enterbegin delete into, or renew or extend,end deletebegin insert intoend insert a contract for any services that are currently or customarily performed by that trial court’s employees. Among other things, the bill would require the trial court to clearly demonstrate that the contract will result in actual overall cost savings to the trial court. The bill would provide that those standards do not apply to a contract under certain circumstances, including, among others, when the services are incidental to a contract for the purchase or lease of real or personal property.

This bill would require a trial court to provide a report by February 1, 2016, to the Department of Finance, thebegin delete chairpersonend deletebegin insert Chairpersonend insert of the Joint Legislative Budget Committee, and thebegin delete chairpersonsend deletebegin insert Chairpersonsend insert of the Senate Committee on Judiciary and the Assembly Committee on Judiciary if the trial court entered into, or renewed or extended, a contract between July 1, 2015, and December 31, 2015,begin insert inclusive,end insert for services that were provided or are customarily provided by its trial court employees and the contract has a term extending beyond March 31, 2016. The bill would require that report to provide specified information relating to these contracts, including an analysis of whether the contract resulted in the displacement of trial court employees.

This bill would provide that its provisions are severable.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 71621 is added to the Government Code,
2to read:

3

71621.  

The purpose of this section is to establish standards for
4when a trial court intends to enterbegin delete into, or renew or extend,end deletebegin insert intoend insert a
5contract for any services that are currently or have been customarily
6performed by that trial court’s employees.

7(a) Contracts for services that are currently or customarily
8performed by trial court employees are permissible in a trial court
9when all of the following conditions are met:

10(1) The trial court clearly demonstrates that the contract will
11result in actual overall cost savings to the trial court, provided that:

12(A) In comparing costs, there shall be included the trial court’s
13additional costs of providing the same service as proposed by a
14contractor. These additional costs shall include the salaries and
15benefits of additional staff that would be needed and the costs of
16additional space, equipment, and materials needed to perform the
17function.

18(B) In comparing costs, there shall not be included the trial
19court’s indirect overhead costs unless these costs can be attributed
20solely to the function in question and would not exist if that
21function was not performed by the trial court. Indirect overhead
P3    1costs shall mean the pro rata share of existing administrative
2salaries and benefits, rent, equipment costs, utilities, and materials.

3(C) In comparing costs, there shall be included in the costs of
4 a contractor providing a service any continuing trial court costs
5that would be directly associated with the contracted function.
6These continuing trial court costs shall include, but not be limited
7to, those for inspection, supervision, and monitoring.

8(2) Proposals to contract out work shall not be approved solely
9on the basis that savings will result from lower contractor pay rates
10or benefits. Contracts shall be eligible for approval if the
11contractor’s wages are at the industry’s level and do not
12begin insert significantlyend insert undercut trial court pay rates.

13(3) The contract does not cause the displacement of trial court
14employees. The term “displacement” includes layoff, demotion,
15loss of employment or employment seniority, involuntary transfer
16to a new class, involuntary transfer to a new location requiring a
17change of residence, and time base reductions. Displacement does
18not include changes in shifts or days off, nor does it include
19reassignment to other positions within the same class and general
20location.

21(4) The savings shall be large enough to ensure that they will
22not be eliminated by private sector and trial court fluctuations that
23could normally be expected during the contracting period.

24(5) The amount of savings clearly justify the size and duration
25of the contracting agreement.

26(6) The contract is awarded through a publicized, competitive
27bidding process.

28(7) The contract includes specific provisions pertaining to the
29qualifications of the staff that will perform the work under the
30contract, as well as assurance that the contractor’s hiring practices
31meet applicable nondiscrimination standards.

32(8) The potential for future economic risk to the trial court from
33potential contractor rate increases is minimal.

34(9) The contract is with a firm. A “firm” means a corporation,
35partnership, nonprofit organization, or sole proprietorship.

36(10) The potential economic advantage of contracting out is not
37outweighed by the public’s interest in having a particular function
38performed directly by the trial court.

P4    1(b) This section does not preclude a trial court or the Judicial
2Council from adopting more restrictive rules regarding the
3contracting of court services.

4(c) Contracting shall also be permissible when any of the
5 following conditions can be met:

6(1) The contract is for a new trial court function and the
7Legislature has specifically mandated or authorized the
8performance of the work by independent contractors.

9(2) The contract is between a trial court and another trial court
10or local government entity for services to be performed by
11employees of the other trial court or employees of the local
12government entity.

13(3) The services contracted for cannot be satisfactorily
14performed by trial court employees, or are of such a highly
15specialized or technical nature that the necessary expert knowledge,
16experience, and ability cannot be obtained from the court’s trial
17court employees.

18(4) The services are incidental to a contract for the purchase or
19lease of real or personal property. Contracts described in this
20paragraph, known as “service agreements,” shall include, but not
21be limited to, agreements to service or maintain office equipment
22or computers that are leased or rented. Service agreements do not
23include contracts to operate equipment or computers for purposes
24other than service or maintenance.

25(5) The legislative, administrative, or legal goals and purposes
26cannot be accomplished through the utilization of trial court
27employees because of the need to protect against a conflict of
28interest or to ensure independent and unbiased findings in cases
29where there is a clear need for an independent, outside perspective.

30(6) Due to an emergency, a contract is necessary for the
31immediate preservation of the public health, welfare, or safety.

32(7) The contractor will conduct training courses for which
33appropriately qualified trial court employee instructors are not
34available from the court, provided that permanent instructor
35positions shall be filled through the process for hiring trial court
36employees.

begin insert

37(8) The contractor will provide equipment, materials, facilities,
38or support services that could not feasibly be provided by the trial
39court in the location where the services are to be performed. This
40paragraph shall not apply to services contracted in order to open
P5    1closed courthouses if those services were performed by trial court
2employees before the closure or for the ongoing operation of new
3or reopened courthouses.

end insert
begin delete

4(8)

end delete

5begin insert(9)end insert The services are of such an urgent, temporary, or occasional
6nature that the delay incumbent in their implementation through
7the process for hiring trial court employees would frustrate their
8very purpose. This paragraph shall not apply to the services of
9official court reporters, except individual official reporters pro
10tempore may be used by a trial court when the criteria of this
11paragraph are met.

begin delete

12(9)

end delete

13begin insert(10)end insert The contract is a personal services contract developed
14pursuant to rehabilitation programs in accordance with Sections
1519403 and 19404 of the Welfare and Institutions Code, pursuant
16to habilitation programs in accordance with Chapter 13
17(commencing with Section 4850) of Division 4.5 of the Welfare
18and Institutions Code, or pursuant to a program vendored or
19contracted through a regional center or the State Department of
20Developmental Services in accordance with the Lanterman
21Developmental Disabilities Services Act (Division 4.5
22(commencing with Section 4500) of the Welfare and Institutions
23Code), and the contract will not cause an existing trial court
24employee to incur a loss of his or her employment or employment
25seniority; a reduction in wages, benefits, or hours; or an involuntary
26transfer to a new location requiring a change in residence.

begin delete

27(10)

end delete

28begin insert(11)end insert The contract is for the services of any court interpreter.
29Contracts for the services of any court interpreter, and restrictions
30on contracting out interpreter services, shall be governed by the
31Trial Court Interpreter Employment and Labor Relations Act
32(Chapter 7.5 (commencing with Section 71800)) and any
33memorandum of understanding or agreement entered into pursuant
34to that act, or by the other provisions of this chapter, the Trial Court
35Employment Protection and Governance Act, and any
36memorandum of understanding or agreement entered into pursuant
37to that act, as applicable.

38

SEC. 2.  

If a trial court entered into, or renewed or extended, a
39contract between July 1, 2015, and December 31, 2015, inclusive,
40for services that were provided or are customarily provided by its
P6    1trial court employees and that contract has a term extending beyond
2March 31, 2016, the trial court shall provide a report by no later
3than February 1, 2016, to the Department of Finance, Chairperson
4of the Joint Legislative Budget Committee and the Chairpersons
5of the Senate Committee on Judiciary and Assembly Committee
6on Judiciary. The report shall provide all of the following:

7(a) A copy of the contract.

8(b) An analysis of whether the contract is permissible under the
9standards set forth in Section 71621 of the Government Code, as
10added by Section 1 of this act.

11(c) An analysis of whether the contract resulted in the
12displacement of trial court employees.

13(d) An analysis of whether the contract involves the use of
14contractors to perform the type of services that were customarily
15performed by trial court employees.

16

SEC. 3.  

The provisions of this act are severable. If any
17provision of this act or its application is held invalid, that invalidity
18shall not affect other provisions or applications that can be given
19effect without the invalid provision or application.



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