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 enter into 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, the Chairperson of the Joint Legislative Budget Committee, and the Chairpersons 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, inclusive, 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:
Section 71621 is added to the Government Code,
The purpose of this section is to establish standards for
4when a trial court intends to enter into a contract for any services
5that are currently or have been customarily performed by that trial
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
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
P3 1(B) In comparing costs, there shall not be included the trial
2court’s indirect overhead costs unless these costs can be attributed
3solely to the function in question and would not exist if that
4function was not performed by the trial court. Indirect overhead
5costs shall mean the pro rata share of existing administrative
6salaries and benefits, rent, equipment costs, utilities, and materials.
7(C) In comparing costs, there shall be included in the costs of
8 a contractor providing a service any continuing trial court costs
9that would be directly associated with the contracted function.
10These continuing trial court costs shall include, but not be limited
11to, those for inspection, supervision, and monitoring.
12(2) Proposals to contract out work shall not be approved solely
13on the basis that savings will result from lower contractor pay rates
14or benefits. Contracts shall be eligible for approval if the
15contractor’s wages are at the industry’s level and do not
16significantly undercut trial court pay rates.
17(3) The contract does not cause the displacement of trial court
18employees. The term “displacement” includes layoff, demotion,
19loss of employment or employment seniority, involuntary transfer
20to a new class, involuntary transfer to a new location requiring a
21change of residence, and time base reductions. Displacement does
22not include changes in shifts or days off, nor does it include
23reassignment to other positions within the same class and general
25(4) The savings shall be large enough to ensure that they will
26not be eliminated by private sector and trial court fluctuations that
27could normally be expected during the contracting period.
28(5) The amount of savings clearly
begin delete justifyend delete the size and
29duration of the contracting agreement.
30(6) The contract is awarded
through a publicized, competitive
32(7) The contract includes specific provisions pertaining to the
33qualifications of the staff that will perform the work under the
34contract, as well as assurance that the contractor’s hiring practices
35meet applicable nondiscrimination standards.
36(8) The potential for future economic risk to the trial court from
37potential contractor rate increases is minimal.
38(9) The contract is with a firm. A “firm” means a corporation,
39partnership, nonprofit organization, or sole proprietorship.
P4 1(10) The potential economic advantage of contracting out is not
2outweighed by the public’s interest in having a particular function
3performed directly by the trial court.
4(b) This section does not preclude a trial court or the Judicial
5Council from adopting more restrictive rules regarding the
6contracting of court services.
7(c) Contracting shall also be permissible when any of the
8 following conditions can be met:
9(1) The contract is for a new trial court function and the
10Legislature has specifically mandated or authorized the
11performance of the work by independent contractors.
12(2) The contract is between a trial court and another trial court
begin delete localend delete government entity for services to be performed by
14employees of the other trial court or employees of the
begin delete localend delete
15 government entity.
16(3) The services contracted for cannot be satisfactorily
17performed by trial court employees, or are of such a highly
18specialized or technical nature that the necessary expert knowledge,
19experience, and ability cannot be obtained from the court’s trial
21(4) The services are incidental to a contract for the purchase or
22lease of real or personal property. Contracts described in this
23paragraph, known as “service agreements,” shall include, but not
24be limited to, agreements to service or maintain office equipment
25or computers that are leased or rented. Service agreements do not
26include contracts to operate equipment or computers for purposes
27other than service or maintenance.
28(5) The legislative, administrative, or legal goals and purposes
29cannot be accomplished through the utilization of trial court
30employees because of the need to protect against a conflict of
31interest or to ensure independent and unbiased findings in cases
32where there is a clear need for an independent, outside perspective.
33(6) Due to an emergency, a contract is necessary for the
34immediate preservation of the public health, welfare, or safety.
35(7) The contractor will conduct training courses for which
36appropriately qualified trial court employee instructors are not
37available from the court, provided that permanent instructor
38positions shall be filled through the process for hiring trial court
P5 1(8) The contractor will provide equipment, materials, facilities,
2or support services that could not feasibly be provided by the trial
3court in the location where the services are to be performed. This
4paragraph shall not apply to services contracted in order to open
5closed courthouses if those services were performed by trial court
6employees before the closure or for the ongoing operation of new
7or reopened courthouses.
8(9) The services are of such an urgent, temporary, or occasional
9nature that the delay incumbent in their implementation through
10the process for hiring trial court employees would frustrate their
11very purpose. This paragraph shall not apply to the services of
12official court reporters, except individual official reporters pro
13tempore may be used by a trial court when the criteria of this
14paragraph are met.
15(10) The contract is a personal services contract developed
16pursuant to rehabilitation programs in accordance with Sections
1719403 and 19404 of the Welfare and Institutions Code, pursuant
18to habilitation programs in accordance with Chapter 13
19(commencing with Section 4850) of Division 4.5 of the Welfare
20and Institutions Code, or pursuant to a program vendored or
21contracted through a regional center or the State Department of
22Developmental Services in accordance with the Lanterman
23Developmental Disabilities Services Act (Division 4.5
24(commencing with Section 4500) of the Welfare and Institutions
25Code), and the contract will not cause an existing trial court
26employee to incur a loss of his or her employment or employment
27seniority; a reduction in wages, benefits, or hours; or an involuntary
28transfer to a new location requiring a change in residence.
29(11) The contract is for the services of any court interpreter.
30Contracts for the services of any court interpreter, and restrictions
31on contracting out interpreter services, shall be governed by the
32Trial Court Interpreter Employment and Labor Relations Act
33(Chapter 7.5 (commencing with Section 71800)) and any
34memorandum of understanding or agreement entered into pursuant
35to that act, or by the other provisions of this chapter, the Trial Court
36Employment Protection and Governance Act, and any
37memorandum of understanding or agreement entered into pursuant
38to that act, as applicable.
If a trial court entered into, or renewed or extended, a
40contract between July 1, 2015, and December 31, 2015, inclusive,
P6 1for services that were provided or are customarily provided by its
2trial court employees and that contract has a term extending beyond
3March 31, 2016, the trial court shall provide a report by no later
4than February 1, 2016, to the Department of Finance, Chairperson
5of the Joint Legislative Budget Committee and the Chairpersons
6of the Senate Committee on Judiciary and Assembly Committee
7on Judiciary. The report shall provide all of the following:
8(a) A copy of the contract.
analysis of whether the contract is permissible under the
10standards set forth in Section 71621 of the Government Code, as
11added by Section 1 of this act.
12(c) An analysis of whether the contract resulted in the
13displacement of trial court employees.
14(d) An analysis of whether the contract involves the use of
15contractors to perform the type of services that were customarily
16performed by trial court employees.
The provisions of this act are severable. If any
18provision of this act or its application is held invalid, that invalidity
19shall not affect other provisions or applications that can be given
20effect without the invalid provision or application.