Amended in Assembly March 20, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1575

Introduced by Assembly Member Pan

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(Coauthor: Assembly Member Achadjian)

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January 30, 2014

An act to add Section 10377 to the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

AB 1575, as amended, Pan. Public contracts for services: reports: termination of service contracts.

Existing law sets forth requirements for the acquisition of goods and services by state begin delete agencies and end delete begin insert agencies, end insert sets forth the various responsibilities of the Department of General Services and other state agencies in overseeing and implementing begin insert those end insert state contracting procedures and policies begin insert , and provides that a willful violation of its provisions for which another punishment is not provided is a misdemeanor end insert .

This bill would require contracts for personal services to include specific performance criteria and cost parameters, require reports by the contractor, and provide for cancellation by the contracting agency if the contractor fails to comply with contract requirements or the law begin insert , as specified end insert .

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By expanding the definition of an existing crime, this bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

SECTION 1.  

Section 10377 is added to the Public Contract
Code, to read:

10377.  

Any service contract shall incorporate specific
performance criteria and cost parameters, and the contractor shall
submit quarterly reports to the state agency’s contracting official
on the contractor’s compliance with the performance criteria and
actual begin delete costs incurred end delete begin insert amounts billed to the state agency end insert . The service
contract may be begin delete cancelled end delete begin insert canceled end insert if the contractor fails to comply
with the performance criteria and other requirements set out in the
contract and if annual begin delete costs end delete begin insert charges end insert exceed those established by
the contract. The contract may be begin delete cancelled end delete begin insert canceled end insert at any time
if the contractor fails to comply with all applicable local, state,
and federal laws, regulations, and statutes begin insert related to the contract end insert .

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begin insert SEC. 2. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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