BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       SB 1360|
          |Office of Senate Floor Analyses   |                              |
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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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