BILL ANALYSIS �
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 149
Gloria Negrete McLeod, Chair Hearing date: June 27, 2011
AB 149 (Lara) as amended 6/21/11 FISCAL: YES
CIVIL SERVICE: PERSONAL SERVICE CONTRACTS
HISTORY :
Sponsor: American Federation of State, County and
Municipal Employees (AFSCME), AFL-CIO
Prior legislation: None
ASSEMBLY VOTES :
PER & SS 4-1 4/13/11
Appropriations 12-5 5/27/11
Assembly Floor 50-25 6/01/11
SUMMARY :
This bill would authorize a state department or agency, when
the State Personnel Board (SPB) has either prohibited a
personal services contract from being executed, or nullified
an executed personal services contract, to create and fill a
limited-term civil service position for the equivalent number
of hours for each contractor position requested in the
submitted contract.
BACKGROUND AND ANALYSIS :
1) Existing law :
a) allows State agencies to enter into personal service
contracts if the agreement meets certain standards
including, but not limited to, the following:
i) clearly demonstrating an actual overall cost
savings;
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ii) the functions contracted are exempted from civil
service, or
iii) the services contracted are not available in civil
service or are of such a highly specialized or
technical nature that the necessary expertise,
experience and ability is not available through the
civil service.
b) authorizes the SPB to review proposed or executed
personal services contracts to determine whether work
performed by the State may legally be contracted to
private entities or whether it must be performed by State
employees;
c) requires all organizations that represent State
employees who perform the type of work to be contracted,
and any person or organization which has filed with the
SPB a request for notice, to be contacted immediately by
the SPB upon receipt of the notice so that they may be
given a reasonable opportunity to comment on the proposed
personal services contract;
d) requires the SPB to review, as specified, at the
request of an employee organization that represents State
employees, the adequacy of a proposed or executed
contract that may be performed by non-civil service
employees;
e) specifies that a contract that was reviewed by the SPB
at the request of an employee organization representing
State employees, does not have to be reviewed again after
its execution, and
f) defines "limited-term employee" as a public employee
whose appointment is for temporary staffing needs and as
a result of reinstatement or certification from an
employment list.
2) This bill :
a) authorizes a State department or agency to appoint a
limited-term employee, as defined, for the equivalent
number of hours for each contractor position requested
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in the submitted personal services contract, if the SPB
disapproves the contract prior to execution, or
disapproves the executed contract, as specified; and
b) requires the appointing State department or agency to
provide a written notice of the appointment to the
Chairpersons of the Senate and Assembly Appropriations
Committees, Budget Committees, and the Chairperson of
the Joint Legislative Budget Committee (JLBC).
FISCAL :
According to the Assembly Appropriations Committee:
Increased costs for personnel services, probably several
hundred thousands of dollars, from increased state agency
expenditures. The expenditures would come from two
sources:
1) reduced salary savings of state agencies. In some
cases, state agencies would have to use their
unallocated salaries and wages to pay for these
positions that were not budgeted. This is likely to
reduce salary savings that are currently reverted to the
General Fund and other funds, and
2) necessary increase in personnel services to pay the
salaries and benefits for the �limited-term] work force
that could be created by establishing these positions.
The Assembly Appropriations Committee also noted that: "No
specific mechanism is created to fund the positions that
are administratively established under the provisions of
this bill, so agencies would have to use their existing
allocation of personnel services, or reallocate contract
funds. Since the personnel services budgets are allocated
for existing positions, the likely source would be salary
savings, which could reduce administrative savings that are
normally returned to the funding source, including the
General Fund. Contract funds may not be used for personal
services in some situations, which could further reduce
salary savings. In addition, state agencies would likely
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incur costs once the contract work is completed and some
time would be required to adjust the size of their work
force through attrition, redirection or layoffs."
COMMENTS :
1)Process of Establishing Positions in State Service
Generally, positions in State service are established
through the legislative budgetary process which includes a
review and approval by the Executive branch, and subsequent
review and approval by the Legislature. When positions are
established administratively, the Legislature sets the
requirements that the administration must meet to create
the positions in the budget act to control expenditures by
the State, in light of the general size and composition of
the State work force.
In support of this process, this bill would require the
appointing department or agency to provide a written notice
of any limited-term appointment to the Chairpersons of the
Senate and Assembly Appropriations Committees, Budget
Committees, and the Chairperson of the Joint Legislative
Budget Committee (JLBC).
2)Arguments in Support
According to the author:
"Over the years, some State Bargaining Units have
successfully argued before the SPB, that various
personal services contracts are in violation of the
Civil Service Act. Most recently, some of these
Bargaining Units argued that services provided by the
contractors are in fact services that are within the
existing scope of duties of Bargaining Unit
classifications. Despite the fact that the personal
services contract was prohibited or nullified, the
identified work still must be performed. However, most
departments fail to add the necessary civil service
positions, because the statute does not provide the
department with the ability to add positions at the
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moment a personal services contract is halted. This
bill 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."
According to the sponsor:
"When a �personal services] contract is found in
violation and invalidated �by the SPB], 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 ability. This bill would ensure that sufficient
employees are hired to fulfill the workload of those
contracts."
4) SUPPORT :
American Federation of State, County and Municipal
Employees (AFSCME), AFL-CIO, Sponsor
California Labor Federation (CLF)
California Nurses Association (CNA)
California School Employees Association, AFL-CIO
California State Employees Association (CSEA)
Professional Engineers in California Government (PECG)
5) OPPOSITION :
None to date
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