BILL ANALYSIS �
Bill No: AB
1921
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1921 Author: Holden
As Amended: April 28, 2014
Hearing Date: June 10, 2014
Consultant: Paul Donahue
SUBJECT
State personal services contracts: records; Public Records
Act
DESCRIPTION
1)This bill specifies that each personal services contract
in excess of $25,000 between a state agency and a
contractor for the performance of a personal services
contract shall provide that the state agency shall have
the right to review and to copy any records and files
related to the performance of the personal services
contract.
2)It requires these personal services contracts to indicate
that such records and files are subject to the California
Public Records Act (PRA),<1> and may be disclosed by the
state agency pursuant to the PRA.
3)The bill provides that any request for a record under the
Public Records Act pertaining to a personal services
contract as described above shall be submitted directly
to the state agency and not to the private contractor.
EXISTING LAW
The State Civil Service Act establishes standards for the
use of personal services contracts by state agencies and
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<1> Government Code � 6250 et seq.
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authorizes personal services contracts when prescribed
conditions are met.
Existing law sets forth requirements for the acquisition of
goods and services by state agencies and sets forth the
various responsibilities of the Department of General
Services and other state agencies in overseeing and
implementing state contracting procedures and policies.
The California Public Records Act (PRA) provides for public
access to information concerning the conduct of the
people's business, except for public records exempt from
disclosure by express provisions of law. The act also
provides that a state or local agency may not allow another
party to control disclosure of information that is
otherwise subject to disclosure.
BACKGROUND
The author states that AB 1921 seeks to address a
deficiency in present law, pertaining to government
agencies employing private contractors. According to the
author, the problem that occurs when government agencies
deal with private contractors is the lack of oversight on
behalf of both parties. The author and supporters believe
that this bill would provide transparency in the handling
of taxpayer money in the hands of private contractors.
The state currently has standard language in its service
contracts that requires contractors to agree to allow the
state to review and copy any records related to the
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performance of the contract.<2> According to the author,
this bill acts to codify these access requirements in the
Government Code section related to service contracts.
This bill also specifies that records related to the
performance of the contract are subject to the PRA, and may
be subject to public disclosure depending on the
requirements and exceptions stated in the PRA. The PRA
lists several exceptions to what documents must be publicly
disclosed. Specifically, in accordance to exceptions in
Chapter 3.5 of the Government Code, Inspection of Public
Records, some personal, financial, and trade secret
information is protected from disclosure.
As this bill specifies what records would be subject to the
PRA, it also denotes the process for requesting records
under the PRA. It requires that requests under PRA must be
submitted directly to the agency and not its contractor.
This requirement is designed to relieve contractors from
the burden of having to respond to PRA requests with which
they may not be familiar.
Supporters believe that AB 1921 will enforce transparency
and accountability in government contracting, and hold
private contractors accountable to California taxpayers.
PRIOR/RELATED LEGISLATION
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<2> The following is the text of the standardized contract
terms and conditions: "4. AUDIT: Contractor agrees that the
awarding department, the Department of General Services,
the Bureau of State Audits, or their designated
representative shall have the right to review and to copy
any records and supporting documentation pertaining to the
performance of this Agreement. Contractor agrees to
maintain such records for possible audit for a minimum of
three (3) years after final payment, unless a longer period
of records retention is stipulated. Contractor agrees to
allow the auditor(s) access to such records during normal
business hours and to allow interviews of any employees who
might reasonably have information related to such records.
Further, Contractor agrees to include a similar right of
the State to audit records and interview staff in any
subcontract related to performance of this Agreement. (Gov.
Code �8546.7, Pub. Contract Code �10115 et seq., CCR Title
2, Section 1896)."
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SB 975 (Lieu), 2013-2014 Session. Requires a bidder for a
personal service contract to pledge compliance, under the
penalty of perjury, with all applicable state taxes, and
all laws and regulations relating to health and safety,
labor and employment, and licensing relevant to the
bidder's employees, work-site, and bid, and contract.
(Pending in Assembly Committee on Accountability &
Administrative Review)
AB 906 (Pan), Chapter 744, Statutes of 2013. Prohibits the
state to enter into personal services contracts, without
regard to cost savings, until the state agency proposing to
execute the contract has notified all organizations that
represent state employees who perform the type of work to
be contracted. Requires DGS to establish a process to
certify that notification.
AB 740 (Blumenfield), Chapter 684, Statutes of 2011.
Requires a state agency to immediately discontinue a
contract that State Personnel Board (SPB) disapproves,
prohibits the state agency from circumventing or
disregarding the SPB's action by entering into another
contract for the same or similar services or to continue
the services that were the subject of the contract that was
disapproved, and requires a state agency to provide a copy
of the notice to SPB and the employee organization that
filed the contract challenge.
SUPPORT:
Courage Campaign
American Federation of State, County and Municipal
Employees (AFSCME)
California Labor Federation
California School Employees Association
In the Public Interest
Los Angeles Alliance for a New Economy
SEIU California
SEIU Local 1000
Working Partnerships USA
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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