BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1360| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: SB 1360 Author: Bates (R) Amended: 3/31/16 Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 4/27/16 AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley SUBJECT: Local government: municipal service agreements: law enforcement services SOURCE: Author DIGEST: This bill prohibits a city that contracts with another city to provide police services from charging for the overhead costs of police protection that the city would incur in the absence of the contract. ANALYSIS: Existing law: 1)Allows a county or a city to provide police services to a city that enters into a contract to receive those services from the county or city. 2)Requires a county that provides police services to any city pursuant to a contract to charge the city all those costs SB 1360 Page 2 which are incurred in providing the police services (SB 747, Ayala, Chapter 225, Statutes of 1983). 3)Prohibits a county from charging a city contracting for police service, either as a direct or an indirect overhead charge, any portion of those costs which are general overhead costs of operation of the county government. 4)Defines general overhead costs are those costs which a county would incur regardless of whether or not it provided police services under contract to a city. 5)Requires that any determination of general overhead costs must be subject to court review as to the reasonableness of such determination. 6)Requires that a contract between two cities for providing police services must be for "valuable consideration." This bill: 1)Requires a city that provides law enforcement services through its appropriate departments, boards, commissions, officers, or employees to another city pursuant to a contract or any other agreement authorized by specified statutes to charge that city all the costs that are incurred in providing those law enforcement services. 2)Prohibits the costs charged from including any costs that the city providing the services reasonably determines are general overhead costs. 3)Defines "general overhead costs" as those costs that a city would incur regardless of whether or not it provided law SB 1360 Page 3 enforcement services pursuant to a contract or agreement to the other city. 4)Requires that any determination of general overhead costs made by a city providing law enforcement services must be subject to judicial review as to the reasonableness of that determination. 5)Directs that its provisions only apply to contracts or agreements entered into, or renewed, on and after January 1, 2017. Comments Purpose of the bill. This bill creates a level playing field for cities and counties that compete to provide police services to a city through a contract. Because current law allows a city to provide police protection services to another city without limitation on the amount of overhead costs that can be reimbursed under the contract, but does not allow counties to do the same, counties have less flexibility in how they structure their bids for municipal police services contracts. This bill responds to this lack of parity by imposing on cities the same restrictions that current law imposes on counties, prohibiting them from recovering general overhead costs through a police services contract. FISCAL EFFECT: Appropriation: No Fiscal Com.:NoLocal: No SUPPORT: (Verified4/27/16) Association of Orange County Deputy Sheriffs SB 1360 Page 4 OPPOSITION: (Verified4/27/16) None received Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119 4/29/16 12:39:26 **** END ****