BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1360|
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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
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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
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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
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OPPOSITION: (Verified4/27/16)
None received
Prepared by:Brian Weinberger / GOV. & F. / (916) 651-4119
4/29/16 12:39:26
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