Amended in Senate May 5, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1574

Introduced by Assembly Member Pan

January 30, 2014

An act to add begin delete Section 10354 to the Public Contract end delete begin insert Section 19138 to the Government end insert Code, relating to begin delete public end delete begin insert personal services end insert contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 1574, as amended, Pan. begin delete Service contracts: payment guarantees. end delete begin insert Personal services contracts: prohibitions. end insert

begin insert

The California Constitution establishes that the civil service includes every officer and employee of the state, except as otherwise provided in the California Constitution, and requires civil service appointment to be made under a general system based on merit ascertained by competitive examination.

end insert begin insert

The State Civil Service Act establishes standards for the use of personal services contracts by state agencies and authorizes personal services contracts when prescribed conditions are met.

end insert

Existing law imposes various requirements with respect to contracts, including amendments, entered into by any state agency for services to be rendered to the state, whether or not the services involve the furnishing or use of equipment, materials, or supplies, or are performed by an independent contractor.

This bill would prohibit a state agency from entering into a begin insert personal services end insert contract with specified provisions, including a contract that guarantees payment for services not provided.

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 19138 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19138. end insert   

(a) A state agency shall not enter into a personal
services contract that guarantees payment for services not
provided. A personal services contract for the acquisition of goods
and services shall not unduly restrict a state agency from taking
actions in the public interest.

(b) A personal services contract shall not do any of the
following:

(1) Provide for guaranteed occupancy rates for private prisons,
dormitories, or any other contracted facility.

(2) Prohibit a state agency from maintaining, improving, or
building public infrastructure.

(3) Penalize a state agency if a contractor loses revenue as a
result of natural or man-made emergencies, including acts of
terrorism or acts of nature.

(4) Allow for an increase in fees or charges without approval
by the state agency.

(5) Allow for an increase in fees or charges to be made in a
nonpublic manner.

end insert

begin delete

SECTION 1.  

Section 10354 is added to the Public Contract
Code, to read:

10354.  

(a) A state agency shall not enter into a contract that
guarantees payment for services not provided. A contract for the
acquisition of goods and services shall not unduly restrict a state
agency from taking actions in the public interest and shall not
unfairly place the burden of risk on taxpayers.

(b) A contract for services shall not do any of the following:

(1) Provide for guaranteed occupancy rates for private prisons,
dormitories, or any other contracted facility.

(2) Prohibit a state agency from maintaining, improving, or
building public infrastructure.

(3) Penalize a state agency if a contractor loses revenue as a
result of natural or man-made emergencies, including acts of
terrorism or acts of nature.

(4) Allow for an increase in fees or charges without approval
by the state agency.

(5) Allow for an increase in fees or charges to be made in a
nonpublic manner.

end delete