Amended in Senate May 20, 2014

Amended in Assembly March 20, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1575

Introduced by Assembly Member Pan

(Coauthor: Assembly Member Achadjian)

January 30, 2014

An act to add begin delete Section 10377 to the Public Contract Code end delete begin insert Section 19139 to the Government Code end insert , relating to begin delete public contracts. end delete begin insert personal services contracts. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1575, as amended, Pan. begin delete Public contracts for services: reports: termination of service contracts. end delete begin insert Personal services contracts: reports and termination of contracts. end insert

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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.

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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.

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

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

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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 yes end delete begin insert no end insert .

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 19139 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

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begin insert 19139. end insert   

Any personal services 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 amounts billed to the state agency.
The personal services contract may be canceled if the contractor
fails to comply with the performance criteria and other
requirements set out in the contract and if annual charges exceed
those established by the contract. The personal services contract
may be canceled at any time if the contractor fails to comply with
all applicable local, state, and federal laws, regulations, and
statutes related to the contract.

end insert

begin delete

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 amounts billed to the state agency. The service contract may
be canceled if the contractor fails to comply with the performance
criteria and other requirements set out in the contract and if annual
charges exceed those established by the contract. The contract may
be canceled at any time if the contractor fails to comply with all
applicable local, state, and federal laws, regulations, and statutes
related to the contract.

SEC. 2.  

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.

end delete