BILL ANALYSIS �
AB 1574
Page 1
GOVERNOR'S VETO
AB 1574 (Pan)
As Amended May 5, 2014
2/3 vote
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|ASSEMBLY: |71-0 |(March 17, |SENATE: |25-11|(August 18, |
| | |2014) | | |2014) |
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ASSEMBLY: 68-9 (August 20, 2014)
Original Committee Reference: A. & A.R.
SUMMARY : Prohibits a state agency from entering into a personal
services contract that guarantees payments for services not
provided.
The Senate amendments :
1)Strike out all bill language that would have been added to the
Public Contract Code and moves this section with nearly
identical language to the Government Code.
2)Change the term "a contract for services" to "a personal
services contract."
EXISTING LAW :
1)Specifies the various responsibilities of the Department of
General Services and other state agencies in overseeing and
implementing state contracting procedures and policies.
2)Prohibits, under the California Constitution, gifts of public
funds.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
GOVERNOR'S VETO MESSAGE :
AB 1574
Page 2
"Existing law appropriately limits the use of personal services
contracts and provides safeguards against the misuse of public
funds. The additional prohibitions in this bill would not
address an identified problem, would limit the state's ability
to make advance payments to community-based nonprofit groups,
and could invite litigation challenging the validity of existing
public contracts.
"The bill also limits the ability of the Department of
Corrections and Rehabilitation to contract for residential and
treatment programs and meet court-ordered population caps and
other legal mandates."
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600
FN: 0005665