BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 149
                                                                Page  1

        ASSEMBLY THIRD READING
        AB 149 (Lara)
        As Amended May 27, 2011
        Majority vote 

         PUBLIC EMPLOYEES    4-1         APPROPRIATIONS      12-5        
         
         ----------------------------------------------------------------- 
        |Ayes:|Furutani, Allen, Ma,      |Ayes:|Fuentes, Blumenfield,     |
        |     |Wieckowski                |     |Bradford, Charles         |
        |     |                          |     |Calderon, Campos, Davis,  |
        |     |                          |     |Gatto, Hall, Hill, Lara,  |
        |     |                          |     |Mitchell, Solorio         |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Mansoor                   |Nays:|Harkey, Donnelly,         |
        |     |                          |     |Nielsen, Norby, Wagner    |
        |     |                          |     |                          |
         ----------------------------------------------------------------- 
         SUMMARY  :  Authorizes a state department or agency, when the State 
        Personnel Board (SPB) has either disapproved a proposed contract 
        prior to execution or disapproves an executed contract, to appoint a 
        limited-term employee for the equivalent number of hours for each 
        contractor position requested in the submitted contract.  Prior to 
        the appointment of a limited-term employee, the state department or 
        agency must provide written notice to the appropriate committees in 
        the Legislature, as specified, and those committees must approve the 
        appointment, as specified. 

         EXISTING LAW  :

        1)Allows state agencies to enter into personal services contracts if 
          the agreement meets certain standards including, but not limited 
          to, clearly demonstrating an actual overall cost savings, the 
          functions contracted are exempted from civil service, the services 
          contracted are not available in civil service or are of such a 
          highly specialized or technical nature that the necessary expert 
          knowledge, experience and ability is not available through the 
          civil service.

        2)Authorizes the SPB to review proposed or executed personal 
          services contracts to determine whether state work may legally be 
          contracted to private entities or whether it must be performed by 
          state employees.









                                                                AB 149
                                                                Page  2

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee, 
        reduced savings of state agencies.  Without the bill, if a contract 
        was disapproved an agency could face hurdles creating positions and 
        doing the work with state employees.  This bill would make it more 
        likely that the funds would be spent and would then reduce operating 
        savings.

         COMMENTS  :  According to the author, "AB 149 would ensure that state 
        agencies properly adhere to the requirements of the State Civil 
        Service Act, by allowing for the creation of civil service positions 
        if the SPB prohibits or nullifies a personal services contract."

        Supporters state, "Even when a contract is found in violation of 
        existing law and invalidated, the identified work must still be 
        performed.  Too often, though, departments do not add the necessary 
        civil service positions because the statute does not provide them 
        with that authority."

         
        Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
        319-3957 
                                                                  FN: 0000987