AB 2557: Local agencies: contracts for special services and temporary help: performance reports.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-07-03
Current Status:
Failed
(2024-08-15: In committee: Held under submission.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill requires counties, cities, and local districts that hire private contractors to do work that is or was done in the past five years by employees represented by a union to post those contracts and related public records online and include details such as objectives, deliverables, all costs, staff and subcontractor counts, and pay rates. It also requires written notice to the exclusive employee representative (for example, a union) before starting the contracting process and at least 30 days before renewing or changing such contracts, makes contractor records subject to the Public Records Act, and excludes small contracts under $100,000 and work not usually done by public employees.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require, as of July 1, 2025, each board of supervisors that solicits for and enters into a specified contract for special services services, except as specified, to post that contract and any related documents, as specified, on its internet website. The bill would require, as of July 1, 2026, each contract, as described above, to include, among other things, the objectives, desirables, and goals of the contract. The bill would require, before beginning a procurement process to contract for functions, duties, responsibilities, or services, as specified, the board of supervisors, or its representative, to give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. The bill would also require, at least 30 days before the modification or renewal of the above-described contract, the board of supervisors, or its representative, to notify, as specified, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit semiannual performance reports, as prescribed, every 180 days, to the board of supervisors and the employee organization. The bill would require such a contract to include prescribed provisions relating to the submission of semiannual performance reports and oversight of contract compliance by the board of supervisors or its representative. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an auditor approved by the board to determine whether the performance standards are being met.This bill would require, as of July 1, 2025, each board of supervisors that solicits for and enters into a specified contract for special services to post that contract and any related documents, as specified, on its internet website. The bill would require, as of July 1, 2026, each contract, as described above, to include, among other things, the objectives, desirables, and goals of the contract. The bill would require, before beginning a procurement process to contract for functions, duties, responsibilities, or services, as specified, the board of supervisors, or its representative, to give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. The bill would also require, at least 30 days before the modification or renewal of the above-described contract, the board of supervisors, or its representative, to notify, as specified, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports on a monthly basis. help.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit semiannual performance reports, as prescribed, every 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor semiannual performance reports to evaluate the quality of services. such a contract to include prescribed provisions relating to the submission of semiannual performance reports and oversight of contract compliance by the board of supervisors or its representative. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit quarterly semiannual performance reports, as prescribed, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly semiannual performance reports to evaluate the quality of services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each contract for special services to include specific performance standards and requirements. The bill would require the board or a representative, at least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, to notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. The bill would require each person who enters into such a contract for special services with the board of supervisors to submit quarterly performance reports, as prescribed, every 90 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly performance reports to evaluate the quality of services and withhold payments to the contractor under prescribed circumstances, which circumstances the bill would deem to be a breach of contract. services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for board contracts for temporary help, with reports and monitoring on a monthly basis.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each contract for special services to include specific performance standards and requirements. The bill would require the board or a representative, at least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, to notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. The bill would require each person who enters into such a contract with the board of supervisors to submit quarterly performance reports, as prescribed, every 90 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly performance reports to evaluate the quality of services and withhold payments to the contractor under prescribed circumstances, which circumstances the bill would deem to be a breach of contract. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for board contracts for temporary help, with reports and monitoring on a monthly basis.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.
This bill would require each contract for special services to include specific performance standards and requirements. The bill would require the board or a representative, at least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, to notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process. The bill would require each person who enters into such a contract with the board of supervisors to submit quarterly performance reports, as prescribed, every 90 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly performance reports to evaluate the quality of services and withhold payments to the contractor under prescribed circumstances, which circumstances the bill would deem to be a breach of contract. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.
(2)Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill would impose requirements similar to those described in paragraph (1) for board contracts for temporary help, with reports and monitoring on a monthly basis.
(3)Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
This bill would impose requirements similar to those described in paragraph (1) for city council contracts for special services.
(4)Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
This bill would impose requirements similar to those described in paragraph (1) for legislative body contracts for special services.
(5)The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.
(6)By imposing new duties on local government agencies, the bill would create a state-mandated local program.
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.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law defines the term legislative body for purposes of laws relating to cities, counties, and other local agencies.This bill would make a nonsubstantive change to that definition.Existing law defines the term legislative body for purposes of laws relating to cities, counties, and other local agencies.
This bill would make a nonsubstantive change to that definition.
The Legislature finds and declares all of the following:
(a)Local governments are increasingly relying on private contractors to provide public services customarily performed by the civil service workforce.
(b)The delivery of quality public services and goods requires a capable and efficient workforce who receives fair compensation.
(c)Transparent contracting processes allow for thorough public scrutiny to ensure that quality services and goods are delivered to California communities.
(d)There is a statewide interest in ensuring that public funds are used effectively and ethically and that the replacement of bargaining unit work with private contractors does not undermine public employee relations.
SEC. 2.Section 31000.01 is added to the Government Code, immediately following Section 31000, to read:31000.01.(a)As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b)As of July 1, 2026, each contract with the board of supervisors pursuant to Section 31000 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1)The objectives, deliverables, and goals of the contract.
(2)A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services organized by job category.
(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)This section shall not apply to any contracts that meet both of the following criteria:
(1)A contract for an amount less than one hundred thousand dollars ($100,000).
(2)A contract to provide services for work not usually performed by public employees.
(f)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)Work not usually performed by public employees means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity.
(g)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(i)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4, to read:31000.4.5.(a)As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000.4 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b)As of July 1, 2026, each contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 for functions that are currently, or were in the prior five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1)The objectives, deliverables, and goals of the contract.
(2)A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category.
(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)This section shall not apply to any contracts that meet both of the following criteria:
(1)A contract for an amount less than one hundred thousand dollars ($100,000).
(2)A contract to provide services for work not usually performed by public employees.
(f)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)Work not usually performed by public employees means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity.
(g)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(i)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1.(a)As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 37103 for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b)As of July 1, 2026, each contract with the legislative body pursuant to Section 37103 for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1)The objectives, deliverables, and goals of the contract.
(2)A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category.
(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)This section shall not apply to any contracts that meet both of the following criteria:
(1)A contract for an amount less than one hundred thousand dollars ($100,000).
(2)A contract to provide services for work not usually performed by public employees.
(f)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)Work not usually performed by public employees means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity.
(g)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(i)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01.(a)As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 53060 for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(b)As of July 1, 2026, each contract with a legislative body pursuant to Section 53060 for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall include all of the following:
(1)The objectives, deliverables, and goals of the contract.
(2)A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(3)The number of each contractors and subcontractors employees associated with delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services, organized by job category.
(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)This section shall not apply to any contracts that meet both of the following criteria:
(1)A contract for an amount less than one hundred thousand dollars ($100,000).
(2)A contract to provide services for work not usually performed by public employees.
(f)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)Work not usually performed by public employees means a function or activity for which the employer has not had a classification within the last five years prior to the initiation of the contract whose duties include the function or activity.
(g)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(i)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 6.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)Local governments are increasingly relying on private contractors to provide public services customarily performed by the civil service workforce.
(b)The privatization of public services contributes to poverty and increasing income inequality through the decline of workers wages and benefits.(b)The delivery of quality public services and goods requires a capable and efficient workforce who receives fair compensation.
(c)Transparent contracting processes allow for thorough public scrutiny to ensure that quality services and goods are delivered to California communities.
(d)There is a statewide interest in ensuring that public funds are used effectively and ethically and that the replacement of bargaining unit work with private contractors does not undermine public employee relations.
SEC. 2.Section 31000.01 is added to the Government Code, immediately following Section 31000, to read:31000.01.(a)As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(a)Each person who enters into a(b)As of July 1, 2026, each contract with the board of supervisors pursuant to Section 31000 to perform for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the board of supervisors and the employee organization. include all of the following:
(b)The semiannual performance reports shall include all of the following:(1)A list of all contract objectives that describe the The objectives, deliverables, and goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3)A description of the contractors progress towards contract objectives identified in paragraph (1).(4)(2)A list of all financial expenditures incurred for services provided, associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services organized by job category.
(6)(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors, contractors providing services under the contract, organized by job classification.
(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the board of supervisors or its representative, as provided in this section.(2)If the board of supervisors or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The board of supervisors or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.(3)The board of supervisors or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.(d)The semiannual performance reports shall not be required for contracts between governmental entities.(e)Contract terms exceeding two years shall undergo a performance audit by an auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(f)(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(g)(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(2)(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(h)(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(j)(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4, to read:31000.4.5.(a)As of July 1, 2025, each board of supervisors that solicits for and enters into a contract under Section 31000.4 for functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(a)Each person who enters into a(b)As of July 1, 2026, each contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform for functions that are currently, or were in the prior five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the employee organization. include all of the following:
(b)The monthly performance reports shall include all of the following:(1)A list of all contract objectives that describe the The objectives, deliverables, and goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3)A description of the contractors progress towards contract objectives identified in paragraph (1).(4)(2)A list of all financial expenditures incurred for services provided, associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category.
(6)(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors, contractors providing services under the contract, organized by job classification.
(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit monthly performance reports to the board of supervisors or its representative, as provided in this section.(2)If the board of supervisors or its representative notifies the contractor that the monthly performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The board of supervisors or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.(3)The board of supervisors or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.(d)The monthly performance reports shall not be required for contracts between governmental entities.(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the board of supervisors, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(e)The contract shall provide that all records provided to the
county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(2)(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(g)The provisions of this section are severable. If any provision
of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)The Legislature finds and declares that ensuring that the
replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(i)This section shall apply on and after January 1, 2025. These
amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1.(a)As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 37103 for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(a)Each person who enters into a(b)As of July 1, 2026, each contract with the legislative body pursuant to Section 37103 to perform for functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the legislative body and the employee organization. include all of the following:
(b)The semiannual performance reports shall include all of the following:(1)A list of all contract objectives that describe the The objectives, deliverables, and goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3)A description of the contractors progress towards contract objectives identified in paragraph (1).(4)(2)A list of all financial expenditures incurred for services provided, associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)(3)The number of each contractors and subcontractors employees associated with the delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category.
(6)(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors, contractors providing services under the contract, organized by job classification.
(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the legislative body or its representative, as provided in this section.(2)If the legislative body or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The legislative body or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.(3)The legislative body or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.(d)The semiannual performance reports shall not be required for contracts between governmental entities.(e)Contract terms exceeding two years shall undergo a performance audit by an auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(f)(e)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(g)(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(2)(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(h)(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(j)(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01.(a)As of July 1, 2025, each legislative body that solicits for and enters into a contract under Section 53060 for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall post that contract and any related documents, including performance reports that may be required by the contract, that are subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1) on its internet website.
(a)Each person who enters into a(b)As of July 1, 2026, each contract with a legislative body pursuant to Section 53060 to perform for functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the legislative body and the employee organization. include all of the following:
(b)The semiannual performance reports shall include all of the following:(1)A list of all contract objectives that describe the The objectives, deliverables, and goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3)A description of the contractors progress towards contract objectives identified in paragraph (1). (4)(2)A list of all financial expenditures incurred for services provided, associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)(3)The number of each contractors and subcontractors employees associated with delivery of the contracted services, organized by job category, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services, organized by job category.
(6)(4)(A)The names of any subcontractors providing services under the contract.
(B)The hourly rates, total compensation, and pay scales of employees and independent contractors, contractors providing services under the contract, organized by job classification.
(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the legislative body or its representative, as provided in this section.(2)If the legislative body or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The legislative body or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.(3)The legislative body or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.(d)The semiannual performance reports shall not be required for contracts between governmental entities.(e)Contract terms exceeding two years shall undergo a performance audit by an auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(c)(1)Before beginning a procurement process to contract for functions, duties, responsibilities, or services that are currently performed or were in the previous five years performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall give reasonable written notice to the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(2)A notification shall explain the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications.
(3)This subdivision shall not apply in the event of an emergency.
(d)At least 30 days before the modification or renewal of a contract specified in subdivision (c), the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of the intent to modify or renew the contract.
(f)(e)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(g)(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Emergency means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
(2)(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(h)(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(j)(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 6.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)Local governments are increasingly relying on private contractors to provide public services customarily performed by the civil service workforce.
(b)The privatization of public services contributes to poverty and increasing income inequality through the decline of workers wages and benefits.
(c)Transparent contracting processes allow for thorough public scrutiny to ensure that quality services and goods are delivered to California communities.
(d)There is a statewide interest in ensuring that public funds are used effectively and ethically and that the replacement of bargaining unit work with private contractors does not undermine public employee relations.
SECTION 1.SEC. 2.Section 31000.01 is added to the Government Code, immediately following Section 31000, to read:31000.01.(a)Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the board of supervisors and the exclusive representative of the employee organization.
(b)The semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, employees associated with the delivery of the contracted services, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services organized by job category, sex, race, and ethnicity. category.
(6)(A)The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) of employees and independent contractors, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c)The board of supervisors or its representative shall monitor semiannual performance reports to evaluate the quality of services.(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the board of supervisors or its representative, as provided in this section.
(2)If the board of supervisors or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The board of supervisors or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.
(3)The board of supervisors or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.
(d)The semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors. (g)(f)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(k)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 2.SEC. 3.Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4, to read:31000.4.5.(a)Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.
(b)The monthly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, employees associated with the delivery of the contracted services, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category, sex, race, and ethnicity. category.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) of employees and independent contractors, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c)The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services.(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit monthly performance reports to the board of supervisors or its representative, as provided in this section.
(2)If the board of supervisors or its representative notifies the contractor that the monthly performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The board of supervisors or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.
(3)The board of supervisors or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.
(d)The monthly performance reports shall not be required for contracts between governmental entities.
(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.SEC. 4.Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1.(a)Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the legislative body and the exclusive representative of the employee organization.
(b)The semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, employees associated with the delivery of the contracted services, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors associated with the delivery of the contracted services, organized by job category, sex, race, and ethnicity. category.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) of employees and independent contractors, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c)The legislative body or its representative shall monitor semiannual performance reports to evaluate the quality of services.(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the legislative body or its representative, as provided in this section.
(2)If the legislative body or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The legislative body or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.
(3)The legislative body or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.
(d)The semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body. (g)(f)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(k)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.SEC. 5.Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01.(a)Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit semiannual performance reports, every 180 days, to the legislative body and the exclusive representative of the employee organization.
(b)The semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, employees associated with delivery of the contracted services, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors associated with delivery of the contracted services, organized by job category, sex, race, and ethnicity. category.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) of employees and independent contractors, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c)The legislative body or its representative shall monitor semiannual performance reports to evaluate the quality of services.(c)(1)A contract subject to this section shall include a provision that requires the contractor to submit semiannual performance reports to the legislative body or its representative, as provided in this section.
(2)If the legislative body or its representative notifies the contractor that the semiannual performance report shows that the contractor is not fulfilling the contract objectives listed in paragraphs (1) to (6), inclusive, of subdivision (b), the contractor shall be required to submit a plan to achieve substantial compliance with the contract. The legislative body or its representative may reject the plan as insufficient and explain the reasons for the rejection and ask for additional compliance plans.
(3)The legislative body or its representative shall provide a copy of any notices of underperformance and substantial compliance plans to the employee organization.
(d)The semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g)(f)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)(g)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)(i)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(k)(j)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.SEC. 6.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.
(b)The quarterly semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(c)The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.
(d)The quarterly semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.
(g)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 2.Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4. 31000.4, to read:31000.4.5.(a)Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.
(b)The monthly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(c)The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services.
(d)The monthly performance reports shall not be required for contracts between governmental entities.
(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1.(a)Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.
(b)The quarterly semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(c)The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.
(d)The quarterly semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(g)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01.(a)Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.
(b)The quarterly semiannual performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(c)The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.
(d)The quarterly semiannual performance reports shall not be required for contracts between governmental entities.
(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.
(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(g)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Each person who enters into a contract with the board of supervisors pursuant to subdivision (a) Section 31000 to perform functions that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the board of supervisors and the exclusive representative of the employee organization.
(d)(b)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)(c)The board of supervisors or its representative shall monitor quarterly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection. (f)(d)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit. report.
(h)(f)The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.
(i)(g)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit. (3)(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards. (k)(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(l)(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(m)The amendments to this section adding this subdivision(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 2.Section 31000.4 of the Government Code is amended to read:31000.4.(a)(1)The board of supervisors may contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide that temporary help by contract, rather than employing persons for that purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation.(2)Each contract for temporary help shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.(b)At least 90 days before beginning a procurement process to contract with persons for temporary help that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.(c)SEC. 2.Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4., to read:31000.4.5.(a)Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to subdivision (a) Section 31000.4 to perform functions that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.
(d)(b)The monthly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)(c)The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive monthly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.(2)(A)The contractor fails to provide the monthly reports required by this section or provides a report that is incomplete.(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection. (f)(d)The monthly performance reports shall not be required for contracts between governmental entities.
(g)(e)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)(f)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit. (3)(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.(i)(g)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(j)(h)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(k)The amendments to this section adding this subdivision(i)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 37103 of the Government Code is amended to read:37103.(a)(1)The legislative body may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.(2)The legislative body may pay compensation to these experts as it deems proper.(3)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.(c)SEC. 3.Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1.(a)Each person who enters into a contract with the legislative body pursuant to subdivision (a) Section 37103 to perform functions that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)(b)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)(c)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.(f)(d)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit. report.
(h)(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)(g)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit.(3)(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.(k)(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(l)(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(m)The amendments to this section adding this subdivision(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 53060 of the Government Code is amended to read:53060.(a)(1)The legislative body of any public or municipal corporation or district may contract with and employ any persons for the furnishing to the corporation or district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained and experienced and competent to perform the special services required.(2)The authority given to contract shall include the right of the legislative body of the corporation or district to contract for the issuance and preparation of payroll checks.(3)The legislative body of the corporation or district may pay from any available funds compensation to persons as it deems proper for the services rendered.(4)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.(c)SEC. 4.Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01.(a)Each person who enters into a contract with a legislative body pursuant to subdivision (a) Section 53060 to perform functions that are currently, or were in the prior 10 years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)(b)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)(c)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection. (f)(d)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)(e)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit. report.
(h)(f)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)(g)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit. (3)(2)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards. (k)(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(l)(j)The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(m)The amendments to this section adding this subdivision(k)This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)(1)The board of supervisors may contract for special services on behalf of the following public entities: the county, any county officer or department, or any district or court in the county. Such contracts shall be with persons specially trained, experienced, expert and competent to perform the special services.
(2)The special services shall consist of services, advice, education or training for such public entities or the employees thereof. The special services shall be in financial, economic, accounting, including the preparation and issuance of payroll checks or warrants, engineering, legal, medical, therapeutic, administrative, architectural, airport or building security matters, laundry services or linen services. They may include maintenance or custodial matters if the board finds that the site is remote from available county employee resources and that the countys economic interests are served by such a contract rather than by paying additional travel and subsistence expenses to existing county employees.
(3)The board may pay from any available funds compensation it deems proper for these special services. The board of supervisors may, by ordinance, direct the purchasing agent to enter into contracts authorized by this section within the monetary limit specified in Section 25502.5 of the Government Code.
(4)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or a representative of the board, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with the board of supervisors pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the board of supervisors and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The board of supervisors or its representative shall monitor quarterly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.
(i)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.
(j)(k)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)(l)The Legislature finds and declares that this section addresses ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(l)(m)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 2.Section 31000.4 of the Government Code is amended to read:31000.4.(a)(1)The board of supervisors may contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide that temporary help by contract, rather than employing persons for that purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation.
(2)Each contract for temporary help shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 90 days before beginning a procurement process to contract with persons for temporary help that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.
(d)The monthly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive monthly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the monthly reports required by this section or provides a report that is incomplete.
(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The monthly performance reports shall not be required for contracts between governmental entities.
(g)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.
(h)(i)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)(j)The Legislature finds and declares that this section addresses ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(j)(k)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 37103 of the Government Code is amended to read:37103.(a)(1)The legislative body may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
(2)The legislative body may pay compensation to these experts as it deems proper.
(3)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with the legislative body pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.
(j)(k)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)(l)The Legislature finds and declares that this section addresses ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(l)(m)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 53060 of the Government Code is amended to read:53060.(a)(1)The legislative body of any public or municipal corporation or district may contract with and employ any persons for the furnishing to the corporation or district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained and experienced and competent to perform the special services required.
(2)The authority given to contract shall include the right of the legislative body of the corporation or district to contract for the issuance and preparation of payroll checks.
(3)The legislative body of the corporation or district may pay from any available funds compensation to persons as it deems proper for the services rendered.
(4)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with a legislative body pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (A) organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, (C) organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)For purposes of this section, the following definitions apply:
(1)Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
(2)A plan is insufficient if service falls below the average rate of completion by the workers of the affected bargaining unit.
(3)Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
(4)A performance report is underperforming if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.
(j)(k)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)(l)The Legislature finds and declares that this section addresses ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(l)(m)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)(1)The board of supervisors may contract for special services on behalf of the following public entities: the county, any county officer or department, or any district or court in the county. Such contracts shall be with persons specially trained, experienced, expert and competent to perform the special services. The
(2)The special services shall consist of services, advice, education or training for such public entities or the employees thereof. The special services shall be in financial, economic, accounting (including accounting, including the preparation and issuance of payroll checks or warrants), warrants, engineering, legal, medical, therapeutic, administrative, architectural, airport or building security matters, laundry services or linen services. They may include maintenance or custodial matters if the board finds that the site is remote from available county employee resources and that the countys economic interests are served by such a contract rather than by paying additional travel and subsistence expenses to existing county employees. The
(3)The board may pay from any available funds such compensation as it deems proper for these special services. The board of supervisors may, by ordinance, direct the purchasing agent to enter into contracts authorized by this section within the monetary limit specified in Section 25502.5 of the Government Code.
(4)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, the board of supervisors, or a representative of the board, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with the board of supervisors pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the board of supervisors and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The board of supervisors or its representative shall monitor quarterly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.
(i)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)The Legislature finds and declares that this section addresses a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(l)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 2.Section 31000.4 of the Government Code is amended to read:31000.4.(a)(1)The board of supervisors may contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide such that temporary help by contract, rather than employing persons for such that purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation.
(2)Each contract for temporary help shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 90 days before beginning a procurement process to contract with persons for temporary help that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.
(d)The monthly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. The board shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive monthly performance reports are deemed as underperforming by a representative of the board of supervisors or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the monthly reports required by this section or provides a report that is incomplete.
(B)The board of supervisors shall withhold further payments until all complete reports are provided. The board of supervisors shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the board of supervisors, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The monthly performance reports shall not be required for contracts between governmental entities.
(g)The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(h)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)The Legislature finds and declares that this section addresses a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.
(j)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 3.Section 37103 of the Government Code is amended to read:37103.(a)(1)The legislative body may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
It(2)The legislative body may pay such compensation to these experts as it deems proper.
(3)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with the legislative body pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)The Legislature finds and declares that this section addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.
(l)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 4.Section 53060 of the Government Code is amended to read:53060.(a)(1)The legislative body of any public or municipal corporation or district may contract with and employ any persons for the furnishing to the corporation or district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained and experienced and competent to perform the special services required.
The(2)The authority herein given to contract shall include the right of the legislative body of the corporation or district to contract for the issuance and preparation of payroll checks.
The(3)The legislative body of the corporation or district may pay from any available funds such compensation to such persons as it deems proper for the services rendered.
(4)Each contract for special services shall include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
(b)At least 10 months before beginning a procurement process to contract with persons for special services that are currently, or were in the prior 10 years, performed by employees of corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, the legislative body, or its representative, shall notify, in writing, the exclusive employee representative of the workforce affected by the contract of its determination to begin that process.
(c)Each person who enters into a contract with a legislative body pursuant to subdivision (a) to perform functions that are currently, or were in the prior 10 years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly performance reports, every 90 days, to the legislative body and the exclusive representative of the employee organization.
(d)The quarterly performance reports shall include all of the following:
(1)A list of all contract objectives that describe the goals of the contract.
(2)A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
(3)A description of the contractors progress towards contract objectives identified in paragraph (1).
(4)A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
(5)The number of each contractor and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractors independent contractors by job category, sex, race, and ethnicity.
(6)(A)The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
(B)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(C)The names of any workers providing services pursuant to the contract as independent contractors.
(D)The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C), including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement, organized by job classification.
(7)Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
(e)The legislative body or its representative shall monitor quarterly performance reports to evaluate the quality of services. The legislative body shall withhold payment to the contractor under any of the following circumstances, which constitute a breach of contract:
(1)(A)Three or more consecutive quarterly performance reports are deemed as underperforming by a representative of the legislative body or a representative of the exclusive bargaining unit.
(B)If a contractor submits a plan to achieve substantial compliance with the contract and this section, the legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the plan as insufficient and explain the reasons for the rejection.
(2)(A)The contractor fails to provide the quarterly reports required by this section or provides a report that is incomplete.
(B)The legislative body shall withhold further payments until all complete reports are provided. The legislative body shall immediately resume making payments to the contractor, including all previously withheld payments unless, within a reasonable time, the legislative body, the employee organization, or assigned representatives reject the reports as incomplete and explain the reasons for the rejection.
(f)The quarterly performance reports shall not be required for contracts between governmental entities.
(g)Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report in conference with a representative of the exclusive bargaining unit.
(h)The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.
(i)The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.
(j)The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(k)The Legislature finds and declares that this section addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.
(l)The amendments to this section adding this subdivision shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
SEC. 5.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 53000 of the Government Code is amended to read:53000.As used in this chapter, legislative body means the board of supervisors in the case of a county or a city and county, the city council or the board of trustees in the case of a city, and the board of directors or other governing body in the case of a district or other public agency, unless the context otherwise requires.As used in this chapter, legislative body means the board of supervisors in the case of a county or a city and county, the city council or the board of trustees in the case of a city, and the board of directors or other governing body in the case of a district or other public agency, unless the context otherwise requires.
|
Date
|
Status
|
|---|---|
| Aug 15, 2024 | In committee: Held under submission. |
| Aug 5, 2024 | In committee: Referred to APPR suspense file. |
| Jul 3, 2024 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 3, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 3. Noes 2.) (July 3). |
| Jun 17, 2024 | Read second time and amended. Re-referred to Com. on L., P.E. & R. |
| Jun 13, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on L., P.E. & R. (Ayes 4. Noes 3.) (June 11). |
| Jun 5, 2024 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV. |
| May 29, 2024 | Referred to Coms. on L. GOV. and L., P.E. & R. |
| May 22, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 21, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 16. Page 5376.) |
| May 20, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Amend, and do pass as amended. (Ayes 11. Noes 4.) (May 16). |
| May 16, 2024 | Read second time and amended. Ordered returned to second reading. |
| May 16, 2024 | Assembly Rule 63 suspended. |
| May 8, 2024 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 29, 2024 | Re-referred to Com. on APPR. |
| Apr 25, 2024 | Read second time and amended. |
| Apr 24, 2024 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (April 23). |
| Apr 17, 2024 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 2.) (April 17). Re-referred to Com. on JUD. |
| Apr 9, 2024 | Re-referred to Com. on P.E. & R. |
| Apr 8, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E. & R. Read second time and amended. |
| Apr 1, 2024 | Re-referred to Com. on P.E. & R. |
| Mar 21, 2024 | Referred to Coms. on P.E. & R. and JUD. |
| Mar 21, 2024 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E. & R. Read second time and amended. |
| Feb 15, 2024 | From printer. May be heard in committee March 16. |
| Feb 14, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 5, 2024 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 3, 2024 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Labor, Public Employment and Retirement |
Passed |
|
| Jun 11, 2024 | Do pass as amended, but first amend, and re-refer to the Committee on [Labor, Public Employment and Retirement ] | Senate Standing Committee on Local Government |
Passed |
|
| May 21, 2024 | AB 2557 Ortega Assembly Third Reading | Assembly Floor |
Passed |
|
| May 16, 2024 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 23, 2024 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Judiciary |
Passed |
|
| Apr 17, 2024 | Do pass and be re-referred to the Committee on [Judiciary] | Assembly Standing Committee on Public Employment and Retirement |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 5 Stones Open Door | ** Against | |
| 60 Accelerator Education Partners | ** Against | |
| 805 UndocuFund | ** Against | |
| A Greater Hope | ** Against | |
| A.l. Clinton Charitable and Operating Foundations | ** Against | |
| Aaron Reed and Associates | * Support | Apr 23, 2024 |
| Abrazar, Inc. | ** Against | |
| Active Cultures | ** Against | |
| Alano Club of Redding INC. | ** Against | |
| Aldea, INC. | ** Against | |
| Alliance for Community Empowerment | ** Against | |
| Alliance for Young Women and Girls | ** Against | |
| Alpha Academy Youth Training Facility | ** Against | |
| American Council of Engineering Companies of California | ** Against | |
| American Federation of State County Municipal Employees | * Support | Jul 3, 2024 |
| American Institute Of Architects California | ** Against | |
| American Medical Response | ** Against | |
| American Public Works Association Region Viii | ** Against | |
| American Society of Civil Engineers, Region 9 | ** Against | |
| American Staffing Association | ** Against | |
| Anderson Valley Winegrowers Association | ** Against | |
| Aresis Ensemble | ** Against | |
| Arts for LA | ** Against | |
| Asociacion De Emprendedor@s | ** Against | |
| Association of California Community and Energy Services | ** Against | |
| Association of California Healthcare Districts | ** Against | |
| Association Of California School Administrators | ** Against | |
| Association Of California Water Agencies | ** Against | |
| Association Of Community Human Service Agencies | ** Against | |
| Bay Area Bioscience Education Community | ** Against | |
| Birthmom Buddies | ** Against | |
| Board of Supervisors County of Madera | ** Against | |
| Boys & Girls Club of Laguna Beach - Also Serving Saddleback Valley | ** Against | |
| Boys & Girls Club of The Foothills | ** Against | |
| Bread & Roses Presents | ** Against | |
| Building a Generation | ** Against | |
| Butte Environmental Council | ** Against | |
| Cal Poly Humboldt Centerarts | ** Against | |
| California & Nevada Civil Engineers and Land Surveyors Association, Inc. | ** Against | |
| California Alliance Of Child And Family Services | ** Against | |
| California Animal Welfare Association | ** Against | |
| California Asian Pacific Chamber Of Commerce | ** Against | |
| California Association For Local Economic Development | ** Against | |
| California Association Of Alcohol And Drug Program Executives, Inc. | ** Against | |
| California Association of County Veteran Service Officers | ** Against | |
| California Association of Joint Power Authorities | * Against | Jul 3, 2024 |
| California Association Of Nonprofits | ** Against | |
| California Association Of Public Hospitals And Health Systems | ** Against | |
| California Association of Recreation and Park Districts | ** Against | |
| California Association Of Sanitation Agencies | ** Against | |
| California Building Officials | ** Against | |
| California Chamber Of Commerce | ** Against | |
| California Coalition for Adequate School Housing | ** Against | |
| California Coalition For Rural Housing | ** Against | |
| California Contract Cities Association | ** Against | |
| California Council of Behavioral Health Agencies | * Against | Jul 3, 2024 |
| California County Superintendents | ** Against | |
| California Department of Health Services | * Support | Jun 11, 2024 |
| California Department of Health Services | * Support | Jun 11, 2024 |
| California Department of Health Services | * Support | Jun 11, 2024 |
| California Department of Health Services | * Support | Jun 11, 2024 |
| California Department of Public Health | * Support | Jun 11, 2024 |
| California Disability Services Association | ** Against | |
| California Family Life Center | ** Against | |
| California Family Resource Association | ** Against | |
| California Fire Chief's Association | ** Against | |
| California Geotechnical Engineers Association | ** Against | |
| California Geothermal Heat Pump Coalition | ** Against | |
| California Labor Federation | * Support | Jul 3, 2024 |
| California Municipal Utilities Association | ** Against | |
| California Parks and Recreation Society | ** Against | |
| California Professional Firefighters | * Support | Jul 3, 2024 |
| California Releaf | ** Against | |
| California School Boards Association | ** Against | |
| California School Employees Association | ** Support | |
| California Special Districts Association | ** Against | |
| California Staffing Professionals (Csp) | ** Against | Apr 23, 2024 |
| California State Association Of Counties | * Against | Jul 3, 2024 |
| California State Park Rangers Association | ** Against | |
| California State Sheriffs' Association | ** Against | |
| California Teachers Association | ** Support | |
| Calle 24 Latino Cultural District | ** Against | |
| CalNonprofits | ** Against | |
| Carlsbad Chamber of Commerce | ** Against | |
| Carpinteria Children's Project | ** Against | |
| Center for Family Strengthening | ** Against | |
| Center for Human Services | ** Against | |
| Center for Nonprofit Leadership of The Sierra | ** Against | |
| Center for Nonprofit Management | ** Against | |
| Central California Family Crisis Center, Inc. | ** Against | |
| Ceres Community Project | ** Against | |
| Child Abuse Prevention Center | ** Against | |
| Child Action, Inc. | ** Against | |
| Chino Hills City Of | ** Against | |
| Chino Valley Chamber of Commerce | ** Against | |
| Chrysalis | ** Against | |
| Citizens Review Panel-critical Incidents | ** Against | |
| City of Bakersfield | ** Against | |
| City of Bellflower | ** Against | |
| city of carlsbad | ** Against | |
| City of Colton | ** Against | |
| City of Corona | ** Against | |
| city of Cypress | ** Against | |
| City of Elk Grove | ** Against | |
| City of Fairfield | ** Against | |
| City of Foster City | ** Against | |
| City of Grass Valley | ** Against | |
| City of Kerman, CA | ** Against | |
| City of Lakewood CA | ** Against | |
| City Of Lomita | ** Against | |
| City of Los Alamitos | ** Against | |
| City Of Merced | ** Against | |
| City of Norwalk | ** Against | |
| City of Pico Rivera | ** Against | |
| City Of Redlands | ** Against | |
| City Of Riverside | * Support | Jun 11, 2024 |
| City of Rolling Hills Estates | ** Against | |
| City of San Jose | ** Against | |
| City of Santa Fe Springs | ** Against | |
| City of St. Helena | ** Against | |
| City of Thousand Oaks | ** Against | |
| City of Whittier | ** Against | |
| Clínica Romero | * Support | Jun 11, 2024 |
| Coalition of Adequate School Housing | ** Against | |
| Coalition of California Welfare Rights Organizations | ** Support | |
| Coastal Nonprofit Consulting | ** Against | |
| Cocokids | ** Against | |
| Colin Bailey Legal and Consulting Services | ** Against | |
| Collective Resilience | ** Against | |
| Community Build, Inc. | ** Against | |
| Community Education Partnerships | ** Against | |
| Community Partners | ** Against | |
| Community Resource Project, INC. | ** Against | |
| Community Solutions | ** Against | |
| Community Water Center | ** Against | |
| Compassion Institute | ** Against | |
| Conflict Resolution Center of Santa Cruz County | ** Against | |
| Contra Costa Chorale | ** Against | |
| Contra Costa County | ** Against | |
| Corona Chamber of Commerce | ** Against | |
| Corporation For Supportive Housing | ** Against | |
| County Behavioral Health Directors Association | * Against | Jun 12, 2024 |
| County Behavioral Health Directors Association of California | ** Against | |
| County Behavioral Health Districts Association | ** Against | |
| County Board of Supervisors | * Against | Jul 3, 2024 |
| County Employee Management Association | ** Support | |
| County Health Executives Association Of California | ** Against | |
| County of Alpine | ** Against | |
| County of Butte | ** Against | |
| County of Fresno | ** Against | |
| County of Humboldt | ** Against | |
| County of Inyo | ** Against | |
| County Of Kern | ** Against | |
| County Of Kings | ** Against | |
| County Of Los Angeles | ** Against | |
| County of Merced | ** Against | |
| County of Monterey | ** Against | |
| County Of Placer | ** Against | |
| County of Riverside | ** Against | |
| County of San Joaquin | ** Against | |
| County of Santa Clara | ** Against | |
| County of Sierra | ** Against | |
| County Of Stanislaus | ** Against | |
| County Recorders Association Of California | ** Against | |
| County Welfare Directors Association of California | ** Against | |
| Creative Alternatives | ** Against | |
| Crenshaw Health Partners | ** Against | |
| Cressgcmconsultllc | ** Against | |
| Crittenton Services for Youth and Families | ** Against | |
| Cultiva La Salud | ** Against | |
| Cupertino Chamber of Commerce | ** Against | |
| Danville Area Chamber of Commerce | ** Against | |
| Department of Mental Health | * Support | Jun 11, 2024 |
| Didi Hirsch Mental Health Services | ** Against | |
| Dorothy Glaspie Foundation INC | ** Against | |
| Downey City Of | ** Against | |
| Duc Learning Center | ** Against | |
| East Bay Sanctuary Covenant | ** Against | |
| Eastern Municipal Water District | ** Against | |
| EMS Administrators | * Against | Jun 12, 2024 |
| ERISAT-ERITREAN Satellite Television | ** Against | |
| Esquires Music Foundation | ** Against | |
| Etiwanda School District | * Support | Jun 11, 2024 |
| Exclusively First Responders | ** Against | |
| Exposure Skate | ** Against | |
| Fairfield City Of | ** Against | |
| Families in Transition of Santa Cruz County, INC. | ** Against | |
| Family Bridges, INC | ** Against | |
| Feed My Flock INC. | ** Against | |
| Fierce Advocates | ** Against | |
| First Place for Youth | ** Against | |
| Five Keys | ** Against | |
| Fontana Chamber of Commerce | ** Against | |
| Food Exploration and Discovery | ** Against | |
| Food for People | ** Against | |
| Foster City Village, INC. | ** Against | |
| Fostering Dreams Project | ** Against | |
| Free the Need | ** Against | |
| Freedom Through Education | ** Against | |
| Fresh Lifelines for Youth | ** Against | |
| Fresno County Board of Supervisors | ** Against | |
| Fullerton City Of | ** Against | |
| Galt Teen Center | ** Against | |
| Garden Grove Chamber Of Commerce | ** Against | |
| Gateways Hospital | * Support | Jun 11, 2024 |
| Gold Country Bats | ** Against | |
| Greater High Desert Chamber of Commerce | ** Against | |
| Greater Irvine Chamber of Commerce | ** Against | |
| Greater San Fernando Valley Chamber of Commerce | ** Against | |
| Green 4 Kids | ** Against | |
| Groundwork San Diego Chollas Creek | ** Against | |
| Harbor UCLA Medical Center | * Support | Jun 11, 2024 |
| Helpline Youth Counseling, INC. | ** Against | |
| Hijas Del Campo | ** Against | |
| Hillsides | ** Against | |
| Hmi | ** Against | |
| Housing California | ** Against | |
| Human Services Alliance of Contra Costa | ** Against | |
| Humanistic Alternative to Addiction Research and Treatment, INC. | ** Against | |
| Independent Transportation Network Monterey County | ** Against | |
| Ink People Center for Arts and Culture | ** Against | |
| Inland Empire Community Collaborative | ** Against | |
| Interim, INC. | ** Against | |
| Iron Sharpens Iron Nonprofit Organization | ** Against | |
| Ives Torres Foundation | ** Against | |
| Josephine S. Gumbiner Foundation | ** Against | |
| Kalaya's Destiny | ** Against | |
| Kamali'i Foster Family Agency, INC. | ** Against | |
| Kern Bridges Youth Homes | ** Against | |
| KidSTREAM Children's Museum | ** Against | |
| Koreatown Youth + Community Center | ** Against | |
| LA Cañada Flintridge Chamber of Commerce and Community Association | ** Against | |
| LA County DPSS-IHSS | * Support | Jun 11, 2024 |
| LA General Medical Center | * Support | Jun 11, 2024 |
| LA General Medical Center | * Support | Jun 11, 2024 |
| Laguna Food Pantry | ** Against | |
| Laguna Hills Chamber of Commerce | ** Against | |
| Laguna Nigel Chamber of Commerce | ** Against | |
| Lake Elsinore Valley Chamber of Commerce | ** Against | |
| Lakewood City Of | ** Against | |
| las virgenes-malibu council of governments | ** Against | |
| League Of California Cities | * Against | Jul 3, 2024 |
| Lets Stand Together | ** Against | |
| Lions Club of Benicia | ** Against | |
| Loch Lomond Glen Foundation | ** Against | |
| Los Angeles Chamber of Commerce | * Against | Jul 3, 2024 |
| Los Angeles County Department of Children and Family Services | * Support | Jun 11, 2024 |
| Los Angeles County Department of Mental Health | * Support | Jun 11, 2024 |
| Los Angeles County Department of Public Health | * Support | Jun 11, 2024 |
| Los Angeles County Probation Officers Union | ** Support | |
| Los Angeles General Medical Center | * Support | Jun 11, 2024 |
| Low Income Investment Fund | ** Against | |
| Making Hope Happen Foundation | ** Against | |
| Manos Que Sobreviven | ** Against | |
| Maternal and Child Health Access | ** Against | |
| Meals On Wheels California | ** Against | |
| Mend-Meet Each Need With Dignity | ** Against | |
| Mesa Water District | ** Against | |
| Michelle’s Place Cancer Resource Center | ** Against | |
| Mirror to Imagine Women Achieve | ** Against | |
| Mosquito And Vector Control Association Of California | ** Against | |
| Mountain Homeless Coalition | ** Against | |
| Move Santa Barbara County | ** Against | |
| Napa Chamber of Commerce | ** Against | |
| National Action Network Sacramento Chapter | ** Against | |
| National Alliance on Mental Illness | ** Against | |
| National Alliance to End Homelessness | ** Against | |
| National Society of Professional Engineers California | ** Against | |
| NCRT, INC. | ** Against | |
| New Perspectives Center for Counseling | ** Against | |
| Nonprofit Finance Fund | ** Against | |
| Nonprofit Kinect | ** Against | |
| Northern Santa Barbara County United Way | ** Against | |
| Oceanside Chamber of Commerce | ** Against | |
| Office of Samoan Affairs | ** Against | |
| Open Heart Kitchen | ** Against | |
| Orange City Of | ** Against | |
| Orange County Business Council | ** Against | |
| Orange County Employees Association | ** Support | |
| Oxnard Performing Arts Center Corporation | ** Against | |
| P2P Community Development Center | ** Against | |
| Pajaro Valley Prevention and Student Assistance, INC. | ** Against | |
| Palos Verdes Peninsula Chamber Of Commerce | ** Against | |
| Partnership for OVC-Ethiopia | ** Against | |
| Pasadena Meals on Wheels, INC | ** Against | |
| Path | ** Against | |
| Pence Gallery | ** Against | |
| Peninsula Family Service | ** Against | |
| Peninsula Youth Theatre | ** Against | |
| Placentia City Of | ** Against | |
| Pleasantview Industries, INC. | ** Against | |
| Preetirang Sanctuary | ** Against | |
| Project Return Peer Support Network | ** Against | |
| Prunedale Senior Center INC. | ** Against | |
| Public Counsel | ** Against | |
| Public Risk Innovation Solutions and Management | ** Against | |
| Raices y Carino | ** Against | |
| Rebuilding Together Peninsula | ** Against | |
| Redondo Beach Chamber of Commerce | ** Against | |
| Richmond Community Foundation | ** Against | |
| Richmond Museum Association | ** Against | |
| Richmond Museum of History and Culture | ** Against | |
| Ridgecrest Chamber of Commerce | ** Against | |
| Rising Communities | ** Against | |
| Riverside University Health System | * Support | Jun 11, 2024 |
| Rose Bowl Aquatics Center | ** Against | |
| Rural Community Assistance Corporation | ** Against | |
| Rural County Representatives of California | ** Against | |
| Sacra/profana | ** Against | |
| sacramento area creeks council | ** Against | |
| Sacramento Ballet | ** Against | |
| Sacramento; County Of | ** Against | |
| San Bernardino County | ** Against | |
| San Bernardino County Children and Family Services | * Support | Jun 11, 2024 |
| SAN BERNARDINO; COUNTY OF | ** Against | |
| San Diego Humane Society | ** Against | |
| San Francisco Study Center | ** Against | |
| San Joaquin County Board of Supervisors | ** Against | |
| San Marcos Chamber Of Commerce | ** Against | |
| San Pedro Meals on Wheels | ** Against | |
| Santa Barbara Community Housing Corporation | ** Against | |
| Santa Barbara County Immigrant Legal Defense Center | ** Against | |
| Santa Clarita Valley Chamber of Commerce | ** Against | |
| Santa Maria Valley Chamber of Commerce | ** Against | |
| Santa Ynez Valley Historical Museum | ** Against | |
| Save Elephant Hill | ** Against | |
| Sdv&cc | ** Against | |
| Seneca Family of Agencies | ** Against | |
| Seniors Council of Santa Cruz & San Benito Counties | ** Against | |
| Service Employees International Union, California | ** Support | |
| Shasta Cascade Health Centers | ** Against | |
| Shasta County Of | ** Against | |
| Side by Side | ** Against | |
| Sierra - Sacramento Valley EMS Agency | ** Against | |
| Sierra County Department of Public Works and Transportation | ** Against | |
| Siskiyou Domestic Violence & Crisis Center | ** Against | |
| SMART - Transportation Division | ** Support | |
| Social Science Services, Inc., Dba Cedar House Life Change Center | ** Against | |
| South Bay Association of Chambers of Commerce | ** Against | |
| South San Joaquin Irrigation District | ** Against | |
| Southern California Contractors Association | ** Against | |
| Southside Unlimited | ** Against | |
| Spectrum Community Services, INC. | ** Against | |
| Sst Nonprofit Services | ** Against | |
| St. John's Community Health Clinic | * Support | Jun 11, 2024 |
| Stanford Sierra Youth and Families | ** Against | |
| Stockton East Water District | ** Against | |
| Stories From the Frontline | ** Against | |
| Students for Eco-education and Ag | ** Against | |
| Studio 395 Foundation | ** Against | |
| Tahoe Water for Fire Suppression Partnership | ** Against | |
| Tent City Barbers | ** Against | |
| Testimonial Community Love Center | ** Against | |
| The 418 Project | ** Against | |
| The Adam Leventhal Memorial School & Museum | ** Against | |
| The Alpine Mountaineer | ** Against | |
| The Can Man | ** Against | |
| The Child Abuse Prevention Center | ** Against | |
| The Diversity Center of Santa Cruz County | ** Against | |
| The Gold Miners Girl | ** Against | |
| The Mom & Dad Project | ** Against | |
| The Nonprofit Partnership | ** Against | |
| The Plus Me Project | ** Against | |
| The Source Lgbt+ Center | ** Against | |
| The Village Family Services | ** Against | |
| Town of Hillsborough | ** Against | |
| Transitions-Mental Health Association | ** Against | |
| Transportation California | ** Against | |
| Tree People | ** Against | |
| Tri County Chamber Alliance | ** Against | |
| Truckee; Town Of | ** Against | |
| Turning Point Community Programs | ** Against | |
| Tustin Area Woman's Club | ** Against | |
| Ultimate Restoration Unlimited, Uru INC. | ** Against | |
| United Way Of California | ** Against | |
| Urban Counties of California | ** Against | |
| Urban Social Services And Advocacy | ** Against | |
| Valley Fund Corporation | ** Against | |
| VALLEY INDUSTRY AND COMMERCE ASSOCIATION | ** Against | |
| Valley Teen Ranch | ** Against | |
| Victims Empowerment Support Team | ** Against | |
| Village Community Resource Center | ** Against | |
| Visalia; City of | ** Against | |
| Volunteer Center of Santa Cruz County | ** Against | |
| Watershed Research & Training Center | ** Against | |
| Watts Health Center | * Support | Jun 11, 2024 |
| Watts Health Center | * Support | Jun 11, 2024 |
| Watts Health Center | * Support | Jun 11, 2024 |
| Waymakers | ** Against | |
| West Ventura County Business Alliance | ** Against |
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anna Caballero, Chair
2023 - 2024 Regular Session
AB 2557 (Ortega) - Local agencies: contracts for special services and temporary help: performance reports
Version: July 3, 2024 | Policy Vote: L. GOV. 4-3, L.,P.E.&R. 3-2 |
Urgency: No | Mandate: Yes |
Hearing Date: August 5, 2024 | Consultant: Mark McKenzie |
Bill Summary:
AB 2557 would impose new requirements on the governing bodies of local agencies that wish to contract out for certain services, as specified, including posting contracts and related documents on the local agency’s website and providing advance notice to the public agency’s affected workforce union representative, as specified. The bill would also require public contracts for functions currently or previously performed by unionized public employees to include specified information beginning July 1, 2026.
Fiscal Impact:
- Unknown, significant ongoing local costs for local agencies (cities, counties, school districts, special districts) to compile and post contracts and related documents on public agency websites, when applicable, establish procedures and provide notice of intent to contract out for services or extend contract to affected workforce unions, and to compile and include specified information in contracts for functions currently or previously performed by unionized public employees. Local costs may be subject to state-reimbursement from the General Fund, subject to a determination by the Commission on State Mandates. See Staff Comments. (General Fund)
Background:
Existing law authorizes local agencies to contract out for certain special services or temporary labor under the following circumstances:
- A county board of supervisors may contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county, if those persons are specially trained, experienced, expert, and competent to perform those services.
- A county board of supervisors may contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Current law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
- A legislative body of a city may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
- A legislative body of a public or municipal corporation or district may contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
Generally, the decision to contract out for services is a public action. When a governing body awards a contract, it must be done at a public meeting, and the contract itself and other supporting documents are subject to release under the California Public Records Act (CPRA).
Proposed Law:
AB 2557 would impose new requirements on local agencies that intend to contract out for services that are currently, or were in the previous five years, provided by represented public employees, and revise the required contents of a contract for services, as specified. Specifically, this bill would impose the following requirements on the governing body of a local agency (county board of supervisors, city council, or public or municipal corporation or district):
- Beginning July 1, 2025, require a local agency governing body that solicits for and enters into a special services or temporary help contract, as specified, for functions that are currently, or were in the prior five years, performed by unionized employees of the public agency, to post the contract and any related documents, including any required performance reports, that are subject to the CPRA on its internet website.
- Require a local agency governing body, prior to beginning a procurement process, to give reasonable written notice, as specified, to the affected workforce’s union, that explains the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. This provision would not apply to emergency contracts.
- Require a local agency governing body to notify the affected workforce’s union, in writing, of its intent to modify or renew an existing contract at least 30 days before the contract’s modification or renewal.
- Beginning July 1, 2026, require each applicable contract with a local agency governing body for functions that are currently, or were in the prior five years, performed by the public agency’s unionized employees to include all of the following:
- The objectives, deliverables, and goals of the contract, as specified.
- A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
- The number of each contractor’s and subcontractor’s employees associated with the delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with delivery of the contracted services organized by job category.
- The names of any subcontractors providing services under the contract; and the hourly rates, total compensation, as specified, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
- Require contracts to provide that all records provided to the local agency by the contractor must be subject to the CPRA, and require contractors and all subcontractors to maintain records related to the performance of the contract that ordinarily would be maintained by the local agency performing the same functions.
- Explicitly exempt contracts that meet both of the following from the bill’s requirements:
- A contract for an amount less than $100,000.
- A contract to provide services for work not usually performed by public employees, as specified.
Related Legislation:
AB 2489 (Ward), which was held on the Assembly Appropriations Committee’s Suspense File in May of this year, would require a local government that wishes to contract for services already performed by union employees to notify the union of its intent at least 10 months before beginning the process of procuring the contract, and requires the intended contractors to show that their employees meet or exceed minimum qualifications and standards required of union employees.
Staff Comments:
As noted above, this bill would impose costly new requirements on local public agencies that wish to contract out for services or functions that are currently, or were in the prior five years, performed by unionized public employees represented by an employee organization. While these requirements would provide more transparency on how taxpayer funds are spent, local agencies would incur significant costs to do the following: (1) post contracts and any related documents that are subject to the CPRA on the public agency website; (2) provide the specified advance written notice to public agency unions prior to entering into or renewing an applicable contract; and (3) revise contracting procedures and the contents of contracts to include new information regarding the objectives, deliverables, goals, and costs associated with a contract, and detailed information regarding contractor and subcontractor employees providing services under those contracts. Staff notes that this bill would impose a higher level of service on the governing bodies of cities, counties, and public or municipal corporation or districts, including special districts and school districts (nearly 5,000 public entities in all), and would apply to thousands of public contracts for services performed by private entities, including nonprofit organizations, that provide public services. Some or all of these local costs could be subject to state-reimbursement from the General Fund, should a local agency submit a successful claim for reimbursement with the Commission on State Mandates. Staff notes that contracting for services is a discretionary action, so it is unclear whether the local costs to comply with the bill’s mandated duties are reimbursable. Ultimately, any impacts to the State General Fund would be subject to a determination by the Commission on State Mandates.
Staff notes that some smaller local agencies with limited resources do not have a public website, which would make it difficult and prohibitively expensive to develop a public agency website to allow for the posting of contract information and related documents. The Committee may wish to consider an amendment to only require the posting of specified information on a local agency’s website to the extent the agency has a public website.
-- END --
SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Lola Smallwood-Cuevas, Chair
2023 - 2024 Regular
Bill No: AB 2557 Hearing Date: July 3, 2024
Author: | Ortega | ||
Version: | June 17, 2024 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Glenn Miles | ||
SUBJECT: Local agencies: contracts for special services and temporary help: performance reports
KEY ISSUE
This bill places requirements on local governmental agencies related to contracting out services, as specified.
ANALYSIS
Existing law:
- Authorizes a county board of supervisors (CBOS) to contract for special services on behalf of the following public entities: the county, any county officer or department, or any district or court in the county. Special services or special skills contracts shall be with persons specially trained, experienced, expert and competent to perform the special services. (Government Code (GC) § 31000)
- Authorizes CBOS to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided the board determines that it is in the economic interest of the county to provide such temporary help by contract, rather than employing persons for such purpose. Use of temporary help under this section shall be limited to a period of not to exceed 90 days for any single peak load, temporary absence, or emergency situation. (GC § 31000.4)
- Authorizes a city’s legislative body (COUNCIL) to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters. (GC § 37103)
- Authorizes the legislative body of any public or municipal corporation or district (DISTRICT BOARDS) to contract with and employ any persons for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained, experienced, and competent to perform the special services required. (GC § 53060)
This bill:
- Makes the following legislative findings and declarations:
- Local governments are increasingly relying on private contractors to provide public services customarily performed by the civil service workforce.
- The delivery of quality public services and goods requires a capable and efficient workforce who receives fair compensation.
- Transparent contracting processes allow thorough public scrutiny to ensure that quality services and goods are delivered to California communities.
- There is a statewide interest in ensuring that public funds are used effectively and ethically and that the replacement of bargaining unit work with private contractors does not undermine public employee relations.
Special Services / Temporary Help Contracts
- Beginning July 1, 2025, requires CBOS, COUNCILS, or DISTRICT BOARDS that solicit for and enter into a special services or temporary help contracts, as specified, for functions that are currently, or were in the prior five years, performed by unionized employees of the respective contractee, to post the contract and any related documents, including any required performance reports, that are subject to the California Public Records Act (CPRA) on its internet website.
- Requires, beginning July 1, 2026, each contract, as specified, for functions that are currently, or were in the prior five years, performed by unionized employees of the respective contractee to include all of the following:
- The objectives, deliverables, and goals of the contract.
- A list of all financial expenditures associated with the delivery of contracted services, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
- The number of each contractor’s and subcontractor’s employees associated with the delivery of the contracted services, organized by job category, and the number of each contractor’s and subcontractor’s independent contractors associated with delivery of the contracted services organized by job category.
- The names of any subcontractors providing services under the contract; and the hourly rates, total compensation, and pay scales of employees and independent contractors providing services under the contract, organized by job classification.
- Requires the CBOS, COUNCIL, or DISTRICT BOARD to give reasonable written notice, as specified, to the affected workforce’s union, that explains the proposed contract, the justification for the contract, the expected length of the contract, and the effect on represented classifications. However, this provision shall not apply in the event of an emergency.
- Requires the CBOS, COUNCILS, or DISTRICT BOARDS to notify the affected workforce’s union, in writing, of its intent to modify or renew the contract at least 30 days before the contract’s modification or renewal.
- Requires the contract to provide that all records provided to CBOS, COUNCILS, or DISTRICT BOARDS, respectively, by the contractor shall be subject to the CPRA and requires contractors and any subcontractors to maintain records related to performance of the contract that ordinarily would be maintained by the contractee in performing the same functions.
- Defines the following terms for purposes of this provision:
- “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
- “Emergency” means a situation where immediate acquisition is necessary for the protection of the public health, welfare, or safety.
- “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
- Declares the severability of the respective provision and provides that if any provision of or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
- Makes legislative findings and declarations that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution, and therefore, applies the provision to all counties, including charter counties.
- Applies the respective provision to CBOS, COUNCILS, or DISTRICT BOARDS, respectively on and after January 1, 2025, and declares that these amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.
- Declares that if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
COMMENTS
1. Need for this bill?
According to the author:
“Civil servants (i.e., public sector workers) are rightly subject to a litany of transparency laws that include open meeting requirements and the California Public Records Act; however, existing law does not require the same transparency measures for contracted workers of local governments. This frequently leads contracted work to result in reduced service quality and opens the door for opportunities for private firms and organizations to misuse of taxpayer resources. [… ]”
“With limited oversight, this practice has disproportionate implications on vulnerable communities who rely on local governments for critical services, including foster care, homeless programs, and public safety.”
2. Proponent Arguments
According to SEIU California:
“Current law allows local governments to contract with private firms and employers to provide services that could be provided by direct employees. Contractors may offer short-term savings by hiring less qualified staff, paying lower wages, and lowering standards for working conditions. However, research on the privatization of public services over the past few decades found little to no cost savings and poorer outcomes for the public. […]”
“The practice of contracting out also reduces the number of union jobs that are available to the surrounding community. Government anti-discrimination policies enacted in the 1960s and 1970s diversified public sector workplaces, and women and people of color enjoy higher employment rates in the public sector. The unionization rate of the public sector is five times higher than the private sector, leading to better wages, working conditions, benefits, and retirement security. For example, in Los Angeles County, Black workers in the public sector earn 46% more on average than those in the private sector. Black public sector workers are also overwhelmingly more likely to own their homes and have health insurance than Black private sector workers.”
According to the California Labor Federation:
“Public sector jobs were once considered the backbone of the middle class, but decades of low funding and government austerity measures have led to the decline of the stable union jobs that once sustained communities. In efforts to cut costs, governments contract out public work to the lowest bidder and an array of unaccountable service providers. Public services, including substance abuse treatment, foster youth care, and health services, are increasingly contracted out to private entities that do not have to meet the same workforce and performance standards that public agencies do.”
“The widespread practice of contracting out public services has led to the elimination of middle-class career opportunities for residents, especially for women and BIPOC individuals. This has an impact on entire communities as lower quality private contractor jobs replace good union public sector ones. For example, a recent report found that in Los Angeles County, Black workers in the public sector earn 46% more on average than Black workers in the private sector. Black public sector workers are overwhelmingly more likely to own their homes and have health insurance compared to Black private sector workers.”
3. Opponent Arguments:
According to a coalition including the California State Association of Counties and the California Chamber of Commerce:
“California’s more than 4,800 local agencies depend on partnerships with trusted local businesses and community partners to deliver core services, especially to our most vulnerable populations. Services such as emergency response, mental health care, homeless services, forest management, foster care, animal services, 9-1-1 dispatching and much more are often provided through these partnerships. Local service providers possess unique capabilities to reach and build trust with individuals that government entities are not able to reach as effectively.”
“Local service providers and community-based organizations often deliver services more efficiently and cost-effectively than government agencies can alone. Limiting these partnerships will result in increased costs, service reductions, and the potential elimination of essential programs, leaving those who rely on these services without support.”
According to a coalition of approximately 170 nonprofit organizations, including the United Way:
“Nonprofits have historically filled service gaps because we are uniquely qualified to meet specific community needs. We are troubled by any characterization that such partnership negatively impacts service provision and do not think that reflects reality. What’s more, there are major shortages in various professions that are making it very hard for employers of all types to hire qualified people needed to provide critical services.”
“AB 2557 has the potential to dramatically impede nonprofits' ability to pursue or renew partnered efforts and to reduce the flow of public dollars to already under-resourced communities.”
4. Committee Concerns and Recommended Amendments:
The committee recognizes the proponents’ legitimate efforts in trying to ensure that public work be performed by appropriately compensated, skilled and trained public employees. The committee also acknowledges the proponents’ important insistence that the disclosure of public contracts and evaluation of contractors’ performance are necessary guardrails to protect against the waste and abuse of public dollars. Nevertheless, the committee has concerns regarding this bill’s scope and potential to impede otherwise effective methods local governments use to provide services, particularly to hard-to-reach or historically discriminated communities. Therefore, the committee recommends the following amendments to exclude from the bill’s provisions: contracts that are: 1) for amounts under $100,000; and 2) for services not usually performed by a public employee, as defined:
Amend Government Code §§ 31000.01, 310004.5, 37103.1, 53060.1, respectively with the following language:
(f) This section shall not apply to any contracts that meet both of the following criteria:
- A contract for an amount less than $100,000.
- A contract to provide services for work not usually performed by public employees.
(g)…(4)“Work not usually performed by public employees” means a function or activity for which the employer has not had a classification within the last 5 years prior to the initiation of the contract whose duties include the function or activity.
5. Double Referral:
The Senate Rules Committee referred this bill to the Senate Local Government Committee and the Senate Labor, Public Employment and Retirement Committee.
6. Prior Legislation:
AB 2561 (McKinnor, 2024) would require each local public agency that has bargaining unit vacancy rates for more than 180 days to: 1) promptly meet and confer within 21 days at the recognized union’s request, about substantive strategies to fill vacancies; and 2) hold a public hearing within 90 days, as specified. The bill also entitles the union to make a presentation at the hearing and limits the request to meet and confer on this matter to once per calendar year per bargaining unit. This bill is currently in the Senate Labor, Public Employment and Retirement Committee.
AB 2489 (Ward, 2024) would require a local government that wants to contract for special services or temporary help already performed by union employees to notify, in writing, the exclusive representative of the workforce, at least 10 months before beginning a procurement process to contract for special services that are currently, or were in the previous 10 years, performed by employees of the county, any county officer or department, or any district court in the county represented by an employee organization, of its determination to begin that process. The Assembly Appropriations Committee is currently holding the bill on suspense.
AB 1250 (Jones-Sawyer, 2017) would prohibit a county from contracting for personal services currently or customarily performed by that county’s employees unless it makes specified findings. The Senate Rules Committee held this bill in committee.
SUPPORT
American Federation of State, County and Municipal Employees (Co-sponsor)
California Labor Federation (Co-sponsor)
Service Employees International Union, California (Co-sponsor)
California Professional Firefighters
California School Employees Association
California Teachers Association
Coalition of California Welfare Rights Organizations
County Employees Management Association
Los Angeles County Probation Officers Union
Orange County Employees Association
Smart - Transportation Division
OPPOSITION
60 Accelerator Education Partners
5 Stones Open Door
805 Undocufund
A Greater Hope
A.l. Clinton Charitable and Operating Foundations
Abrazar, INC.
Active Cultures
Alano Club of Redding INC.
Aldea, INC.
Alliance for Community Empowerment
Alliance for Young Women and Girls
Alpha Academy Youth Training Facility
American Council of Engineering Companies of California
American Institute of Architects California
American Medical Response
American Public Works Association Region Viii
American Society of Civil Engineers, Region 9
American Staffing Association
Anderson Valley Winegrowers Association
Aresis Ensemble (City Garage)
Arts for LA
Asociacion De Emprendedor@s
Association of California Community and Energy Services
Association of California Healthcare Districts
Association of California School Administrators
Association of California Water Agencies
Association of Community Human Service Agencies
Bay Area Bioscience Education Community
Birthmom Buddies
Board of Supervisors County of Madera
Boys & Girls Club of Laguna Beach - Also Serving Saddleback Valley
Boys & Girls Club of The Foothills
Bread & Roses Presents
Building a Generation
Butte Environmental Council
Cal Poly Humboldt Centerarts
California & Nevada Civil Engineers and Land Surveyors Association, INC.
California Alliance of Child and Family Services
California Animal Welfare Association
California Asian Pacific Chamber of Commerce
California Association for Local Economic Development
California Association of Alcohol and Drug Program Executives, INC.
California Association of County Veteran Services Officers
California Association of Joint Powers Authorities
California Association of Nonprofits
California Association of Public Hospitals and Health Systems
California Association of Recreation and Park Districts
California Association of Sanitation Agencies
California Building Officials
California Chamber of Commerce
California Coalition for Adequate School Housing
California Coalition for Rural Housing
California Contract Cities Association
California Council of Community Behavioral Health Agencies
California County Superintendents
California Disability Services Association
California Family Life Center
California Family Resource Association
California Fire Chief's Association
California Geotechnical Engineers Association
California Geothermal Heat Pump Coalition
California Municipal Utilities Association
California Parks and Recreation Society
California Releaf
California School Boards Association
California Special Districts Association
California State Association of Counties
California State Park Rangers Association
California State Sheriffs' Association
Calle 24 Latino Cultural District
Calnonprofits
Carlsbad Chamber of Commerce
Carpinteria Children's Project
Center for Family Strengthening
Center for Human Services
Center for Nonprofit Leadership of The Sierra
Center for Nonprofit Management
Central California Family Crisis Center, INC.
Ceres Community Project
Child Abuse Prevention Center
Child Action, INC.
Chino Hills; City of
Chino Valley Chamber of Commerce
Chrysalis
Citizens Review Panel-critical Incidents
City of Bakersfield
City of Bellflower
City of Carlsbad
City of Colton
City of Corona
City of Cypress
City of Elk Grove
City of Fairfield
City of Foster City
City of Grass Valley
City of Kerman, CA
City of Lakewood CA
City of Lomita
City of Los Alamitos
City of Merced
City of Norwalk
City of Pico Rivera
City of Redlands
City of Rolling Hills Estates
City of San Jose
City of Santa Fe Springs
City of St. Helena
City of Thousand Oaks
City of Whittier
Coalition of Adequate School Housing
Coastal Nonprofit Consulting
Cocokids
Colin Bailey Legal and Consulting Services
Collective Resilience
Community Build, INC.
Community Education Partnerships
Community Partners
Community Resource Project, INC.
Community Solutions
Compassion Institute
Conflict Resolution Center of Santa Cruz County
Contra Costa Chorale
Contra Costa County
Corona Chamber of Commerce
Corporation for Supportive Housing
County Behavioral Health Directors Association of California
County Health Executives Association of California
County of Alpine
County of Butte
County of Fresno
County of Humboldt
County of Inyo
County of Kern
County of Kings
County of Los Angeles
County of Merced
County of Monterey
County of Placer
County of Riverside
County of San Joaquin
County of Santa Clara
County of Sierra
County of Stanislaus
County Recorders Association of California
County Welfare Directors Association of California
Creative Alternatives
Crenshaw Health Partners
Cressgcmconsultllc
Crittenton Services for Youth and Families
Cultiva LA Salud
Cupertino Chamber of Commerce
Danville Area Chamber of Commerce
Didi Hirsch Mental Health Services
Dorothy Glaspie Foundation INC
Downey; City of
Duc Learning Center
East Bay Sanctuary Covenant
Eastern Municipal Water District
ERISAT-ERITREAN Satellite Television
Esquires Music Foundation
Exclusively First Responders
Exposure Skate
Fairfield; City of
Families in Transition of Santa Cruz County, INC.
Family Bridges, INC
Feed My Flock INC.
Fierce Advocates
First Place for Youth
Five Keys
Fontana Chamber of Commerce
Food Exploration and Discovery
Food for People
Foster City Village, INC.
Fostering Dreams Project
Free the Need
Freedom Through Education
Fresh Lifelines for Youth (FLY)
Fresno County Board of Supervisors
Fullerton; City of
Galt Teen Center
Garden Grove Chamber of Commerce
Gold Country Bats
Greater High Desert Chamber of Commerce
Greater Irvine Chamber of Commerce
Greater San Fernando Valley Chamber of Commerce
Green 4 Kids
Groundwork San Diego Chollas Creek
Helpline Youth Counseling, INC.
Hijas Del Campo
Hillsides
Hmi
Housing California
Human Services Alliance of Contra Costa
Humanistic Alternative to Addiction Research and Treatment, INC.
Independent Transportation Network Monterey County
Ink People Center for Arts and Culture
Inland Empire Community Collaborative
Interim, INC.
Iron Sharpens Iron Nonprofit Organization
Ives Torres Foundation
Josephine S. Gumbiner Foundation
Kalaya's Destiny
Kamali'i Foster Family Agency, INC.
Kern Bridges Youth Homes
Kidstream Children's Museum
Koreatown Youth + Community Center
LA Cañada Flintridge Chamber of Commerce and Community Association
Laguna Food Pantry
Laguna Hills Chamber of Commerce
Laguna Niguel Chamber of Commerce
Lake Elsinore Valley Chamber of Commerce
Lakewood; City of
Las Virgenes-malibu Council of Governments
League of California Cities
Lets Stand Together
Lions Club of Benicia
Loch Lomond Glen Foundation
Los Angeles Area Chamber of Commerce
Low Income Investment Fund
Making Hope Happen Foundation
Manos Que Sobreviven
Maternal and Child Health Access
Meals on Wheels California
Mend-Meet Each Need With Dignity
Mesa Water District
Michelle's Place Cancer Resource Center
Mirror to Imagine Women Achieve
Mosquito and Vector Control Association of California
Mountain Homeless Coalition
Move Santa Barbara County
Napa Chamber of Commerce
National Action Network - Sacramento Chapter
National Alliance on Mental Illness
National Alliance to End Homelessness
National Society of Professional Engineers – California
NCRT, INC.
New Perspectives Center for Counseling
Nonprofit Kinect
Northern Santa Barbara County United Way
Oceanside Chamber of Commerce
Office of Samoan Affairs
Open Heart Kitchen
Orange County Business Council
Orange; City of
Oxnard Performing Arts Center Corporation (OPACC)
P2P Community Development Center
Pajaro Valley Prevention and Student Assistance, INC.
Palos Verdes Peninsula Chamber of Commerce
Partnership for OVC-Ethiopia
Pasadena Meals on Wheels, INC
Path
Pence Gallery
Peninsula Family Service
Peninsula Youth Theatre
Placentia; City of
Pleasantview Industries, INC.
Preetirang Sanctuary
Project Return Peer Support Network
Prunedale Senior Center INC.
Public Counsel
Public Risk Innovation, Solutions, and Management (PRISM)
Raices Y Carino
Rebuilding Together Peninsula
Redondo Beach Chamber of Commerce
Richmond Community Foundation
Richmond Museum Association
Richmond Museum of History and Culture
Ridgecrest Chamber of Commerce
Rising Communities
Rose Bowl Aquatics Center
Rural County Representatives of California
Sacra/profana
Sacramento Area Creeks Council
Sacramento Ballet
Sacramento; County of
San Bernardino County
San Bernardino; County of
San Diego Humane Society
San Francisco Study Center
San Joaquin County Board of Supervisors
San Marcos Chamber of Commerce
San Pedro Meals on Wheels
Santa Barbara Community Housing Corporation
Santa Barbara County Immigrant Legal Defense Center
Santa Clarita Valley Chamber of Commerce
Santa Maria Valley Chamber of Commerce
Santa Ynez Valley Historical Museum
Save Elephant Hill
Sdv&cc
Seneca Family of Agencies
Seniors Council of Santa Cruz & San Benito Counties
Shasta Cascade Health Centers
Shasta; County of
Side by Side
Sierra - Sacramento Valley EMS Agency
Sierra County Department of Public Works and Transportation
Siskiyou Domestic Violence & Crisis Center
Social Science Services, Inc., Dba Cedar House Life Change Center
South Bay Association of Chambers of Commerce
South San Joaquin Irrigation District
Southern California Contractors Association
Southside Unlimited
Spectrum Community Services, INC.
Sst Nonprofit Services
Stanford Sierra Youth and Families
Stockton East Water District
Stories From the Frontline
Students for Eco-education and Ag
Studio 395 Foundation
Tahoe Water for Fire Suppression Partnership
Tent City Barbers
Testimonial Community Love Center
The 418 Project
The Adam Leventhal Memorial School & Museum
The Alpine Mountaineer
The Can Man
The Child Abuse Prevention Center
The Diversity Center of Santa Cruz County
The Gold Miners Girl
The Mom & Dad Project
The Nonprofit Partnership
The Plus Me Project
The Source Lgbt+ Center
The Village Family Services
Town of Hillsborough
Transitions-mental Health Association (TMHA)
Transportation California
Tri County Chamber Alliance
Truckee; Town of
Turning Point Community Programs
Tustin Area Woman's Club
Ultimate Restoration Unlimited, Uru INC.
United Way of California
Urban Counties of California
Urban Social Services and Advocacy
Valley Fund Corporation
Valley Industry and Commerce Association
Valley Teen Ranch
Victims Empowerment Support Team
Village Community Resource Center
Visalia; City of
Volunteer Center of Santa Cruz County
Watershed Research & Training Center
Waymakers
West Ventura County Business Alliance
-- END --
SENATE COMMITTEE ON LOCAL GOVERNMENT
Senator María Elena Durazo, Chair
2023 - 2024 Regular
Bill No: | AB 2557 | Hearing Date: | 6/11/24 |
Author: | Ortega | Fiscal: | Yes |
Version: | 6/5/24 | Consultant: | Goldberg |
Local agencies: contracts for special services and temporary help: performance reports
Imposes a variety of reporting requirements on private companies and nonprofit entities that contract with local government entities to perform services that were, in the prior five years, performed by local government employees represented by an employee organization.
Background
Local government job vacancies. According to a UC Berkeley Labor Center report, Civil Service Vacancies in California: 2022–2023, local governments have significant numbers of vacant positions. The report noted California’s local governments employ almost 10% of the state’s workforce – more than three times the number employed in state government, which employs about 560,000 people. According to the report, as of 2022, there were about 391,000 county employees, 268,000 city employees, and 904,000 school district employees. These numbers don’t include special districts. Not surprisingly, the number of employees varies widely by the size of the governmental entity. For example, Alpine County has fewer than 100 full-time employees, while Los Angeles County has over 100,000 employees.
According to the report, local government job vacancy numbers had been slowly building for some time prior to the COVID-19 pandemic in 2020 and the subsequent recovery. The report noted several interlinking factors that contribute to the struggle to fill those vacancies, including:
- A tight labor market;
- Increased voluntary turnover;
- Changing labor force demographics (such as a shrinking and aging workforce);
- Underinvestment in local government;
- Difficulty competing with the private sector and other government agencies on earnings in the context of high costs of living in California;
- High growth in demand for workers in certain occupations (especially behavioral health and nursing); and
- A long and cumbersome hiring processes.
The report noted high job vacancies impact not only the ability of local governments to deliver public services, but also impact the workers who remain on the job and are forced to handle heavier workloads. That in turn can lead to burnout, triggering even more turnover, which further exacerbates staffing challenges.
The report concluded by suggesting several possible solutions:
- Systematically and comprehensively gathering and publishing data on vacancies;
- Setting up labor-management vacancy committees or task forces;
- Investigating compensation rates and raise pay to attract and retain employees;
- Improving other aspects of job quality and focus on retention;
- Improving pipelines into government jobs; and
- Improving hiring processes.
The Meyers-Milias-Brown Act. The Meyers-Milias-Brown Act (MMBA) of 1968 established collective bargaining for California’s municipal, county, and local special district employers and employees, meaning it generally governs the process of how local governments communicate, negotiate, and resolve disputes with their public employees and public employee organizations.
Generally speaking, the MMBA requires public employers to meet and confer in good faith with employee representatives about matters that fall within the “scope of representation,” which the MMBA defines as:
“… all matters relating to employment conditions and employer-employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment, except, however, that the scope of representation shall not include consideration of the merits, necessity, or organization of any service or activity provided by law or executive order.”
Court decisions have effectively expanded that definition to mean there is a meet and confer requirement not just on those items noted above, but also in cases where the effects of a decision – such as a decision to contract out for work – are subject to bargaining.
In other words, because contracting out work will have an effect on whether or not new employees who would be part of the affected bargaining unit will be hired to fill vacancies and/or on the wages, hours, and other conditions related to the employment of workers, the local government has a duty to meet and confer with the affected bargaining unit prior to finalizing a decision to contract out work.
What happens when a local government contracts out for work? While there are some exceptions – most notably in emergency situations – a local government’s decision to contract out work is a public one. The decision to award the contract must be done at a public meeting and the contract itself and other supporting documents are subject to release under the California Public Records Act (CPRA).
However, given there are 58 counties, 483 cities, and nearly 3,300 special districts in California, it is challenging for any interested person or entity to keep track of what may be happening in those jurisdictions relative to contracting out issues. Similarly, not every local government writes or manages its contracts the same way, responds to requests under the CPRA the same way, provides information in a way that may be useable to the requestor in the same manner, and much more.
The American Federation of State, County and Municipal Employees (AFSCME), the California Labor Federation, and the California State Council of Service Employees International Union (SEIU) want a uniform set of data from each entity that receives a contract from a local government and to receive reports from the contractors to see if they are adhering to the terms of the contract.
Proposed Law
Assembly Bill 2557 requires anyone who enters a contract with a county board of supervisors to perform certain functions that are, or in the previous five years were, performed by a county employee represented by an employee organization to submit reports every 180 days to both the board of supervisors and the employee organization. The report must include:
- A list of objectives describing the goals of the contract;
- A description of the deliverables the contractor has provided;
- A description of the contractor’s progress toward meeting the objectives above;
- A list of all financial expenditures incurred for providing the services, including, but not limited to, personnel costs, direct expenses, indirect expenses, and their corresponding deliverables;
- The number of each contractor’s and subcontractor’s employees attached to the contract, organized by job category, as well as their independent contractor’s attached to the contract also organized by job category; and
- The names of subcontractors providing services under the contract, the hourly rates, total compensation, and pay scales of the employees of the independent contractors organized by job classification.
If the board of supervisors notifies the contractor is not fulfilling the contract objectives, the contractor must submit a plan to achieve substantial compliance with the contract. The board of supervisors can reject the plan as insufficient and can ask for additional compliance plans.
The board of supervisors must provide copies of any underperformance notices and substantial compliance plans to the employee organization.
Contracts longer than two years must undergo a performance audit by an auditor selected by the board of supervisors to determine if the contract’s performance standards are being met. The audit must be conducted at least one year before the contract expires or qualifies for renewal or extension. The audit must report his or her findings to the board of supervisors in a public session and the board cannot renew or extend a contract before it receives and evaluates the audit report.
All records provided to the county by the contractor are subject to the California Public Records Act (CPRA). Contractors and subcontractors must maintain records related to the performance of the contract that ordinarily would be maintained by the county in performing the same functions.
AB 2557 affects contracts related to financial, economic, accounting (including the preparation and issuance of payroll checks or warrants), engineering, legal, medical, therapeutic, administrative, architectural, airport or building security matters, laundry services or linen services. It also covers maintenance or custodial matters if the board finds the place where the service is needed is located far from county employees and the county’s economic interests are served by such a contract rather than by paying additional travel and substantive expenses to existing county employees.
AB 2557 applies these same rules and requirements to all temporary contracts – those between 60 and 90 days long – that a county enters into with temporary help firms to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute. The board must determine it is in the economic interest of the county to provide such temporary help by contract, rather than employing persons for such purpose.
AB 2557’s provisions apply to cities that may contract out with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
AB 2557’s provisions also apply to special districts, school districts and all other public or municipal corporations that may contract out to receive special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
AB 2557 includes findings and declarations to support its purposes.
Comments
1. Purpose of the bill. According to the author: “AB 2557 ensures transparency and accountability when local governments outsource public jobs and contract with private entities for services. The bill requires that the corporations and private entities that provide services to local governments submit performance reports to the local agency they have entered into the agreement with, if they are contracted to perform functions that are currently performed by the local agency’s employees, or have been within the past five years. This allows better oversight over how taxpayer dollars are being spent and whether Californians are receiving the quality public services they pay for.”
2. Will this make contracting out more transparent or discourage it? There is little doubt that requiring any entities to provide the detailed level of information in each contract required by this bill, as well as submit semi-annual reports and be subject to audit in certain cases, will provide the public with more information on precisely how their taxpayer dollars are being spent.
At the same time, it is also certainly possible that many private entities – including many nonprofit organizations that local governments frequently partner with – may find the bill’s requirements overly burdensome and may simply choose not to bid on a contract. The end result could be fewer bidders, thus raising the contract price, or no bidders at all, which could lead a local government to reduce or eliminate services if it doesn’t have the funds or applicants necessary to fill open government positions to provide those services.
3. Why local governments contract out work. The UC Berkeley Labor Center’s report on vacancies listed seven main reasons why local governments have trouble filling open government positions: a tight labor market; increased voluntary turnover; changing labor force demographics; underinvestment in local government; difficulty competing with the private sector and other government agencies on earnings in the context of high costs of living in California; high growth in demand for workers in certain occupations (especially behavioral health and nursing); and long and cumbersome hiring processes.
One item that did not appear on that list is “cost savings.” While state government is explicitly permitted to issue personal services contracts “to achieve cost savings” if certain conditions are met, no similar authority exists for local governments. This point has been affirmed in several court decisions and decisions issued by the Public Employment Relations Board. In Costa Mesa City Employees Assn. v. City of Costa Mesa, 209 Cal.App.4th 298; 146 Cal.Rptr.3d 677; [Aug. 2012] the Court relied in part on a 1993 opinion from the California Attorney General, writing:
The Attorney General determined, “It is evident that the authority to contract as provided in both [Government Code] sections 31000 and 53060 is expressly limited to ‘special services’ in specified areas, and is further limited to contractors who are specially trained, experienced, and competent to perform such services. Nothing in [those sections] suggests that a county may contract for services without regard to the ‘special services’ limitation, solely on the basis of cost savings. We note in this regard that in the Legislature’s grant of a particular power, there is an implied negative; an implication that no other than the expressly granted power passes by the grant; that it is to be exercised only in the prescribed mode.” In light of that implication, and because the Legislature has not expressly granted counties the authority to outsource for the purpose of achieving cost savings, the Attorney General concluded a county “may not enter into a contract with persons to provide the same level of services, but at less expense, than presently performed by its civil service employees.”
The Court continued:
Of course, where the Legislature has expressed its intent to permit a local agency to contract for a specialized service and the agency is unable to provide it itself, there is no legal impediment to outsourcing for that service. (See, e.g., Service Employees Internat. Union v. Board of Trustees, supra, 47 Cal.App.4th 1661 [community college district was authorized to contract with Barnes & Noble for the operation of its campus bookstores since the district’s employees did not have the specialized training or expertise to provide the services at issue].)
Beyond the factors noted in the UC Berkeley report, many local governments state they frequently contract out work when they receive one-time funding so as to not incur ongoing expenses (such as employee salary and benefit costs) when they have no idea how they will pay for those costs once the funding runs out. Furthermore, the slow and cumbersome hiring process identified in the UC Berkeley report factors into the approach related to one-time funding as well, especially in instances when there is a deadline to spend funds and a local government doesn’t want to have time elapse while waiting to hire people.
4. Will this bill have an impact on the ability for local governments to use “trusted messengers”? The “trusted messenger” concept is one that a person is much more likely to accept help and information from someone they trust – a family member, a friend, someone who has been in circumstances similar to theirs, someone they already know in their community – than from someone they don’t know or someone who is from the government.
There are a number of state policies and statutes that encourage or require local governments to partner with local nonprofit groups, businesses, and community based organizations (CBO) – trusted messengers in their communities – to deliver services. Some examples include:
- Homelessness. The 2023-24 state budget allocated $1 billion to the Homeless Housing, Assistance and Prevention (HHAP) fund to allow local governments that receive grant funds to pay for housing, outreach at encampments, emergency shelters and more. Local officials frequently contract with nonprofit groups to deliver those services, in part because many studies have shown people are more willing to accept help from a CBO that may better understand their issues than the government.
- Juvenile Justice. The state closed down its Division of Juvenile Justice facilities as of July 1, 2023, pursuant to SB 823 (Committee on Budget & Fiscal Review) of 2020. As part of transferring responsibility for the juveniles back to the counties, the legislation required the counties to, as part of their implementation plans, to talk about whether and how the services or programs for realigned youth will be provided by nongovernmental or community-based providers
- Mental Health & Substance Abuse. The Community Assistance, Recovery, and Empowerment (CARE) Court Program was established in 2022 to provide comprehensive treatment, housing and support services to Californians with complex behavioral health care needs. One provision requires a local government to put out a request for proposal (RFP) to hire an attorney from a qualified legal services project to represent someone in the CARE Court. A public defender is permitted to be appointed if no one responds to the local government’s RFP.
- Hepatitis C Virus. Since 1998, the State Department of Public Health has been required to allocate money to local health jurisdictions to pay for monitoring, prevention, testing, and care activities for the most vulnerable and underserved people living with, or at high risk for, hepatitis C virus infection. The statute mandates that a minimum of 50% of the money allocated to local health jurisdictions be provided to, or used to support activities in partnership with, CBOs.
- Tobacco. Since 1995, local governments have been required to involve – often through contract – CBOs that have special experience and expertise in community health education against tobacco usage, including representatives of high-risk populations. The statute requires the local CBOs to assist and advise the local government in all aspects of the plan the local government is required to implement.
This bill should not directly affect the requirements in these and other laws to contract with nonprofit groups to provide trusted messenger services to communities that may have, in the past five years, been provided by a local government employee organization because the bill does not ban contracting out. However, the indirect effect of adding the additional requirements proposed by this bill may be that a nonprofit, CBO or other trusted messenger will decline to apply to do this work if they are required to adhere to the requirements of AB 2557.
5. Enforcement. While the bill imposes numerous requirements on entities that receive a contract to do work that has been performed by an employee organization in the past five years, there is no penalty imposed on an entity that does not comply with the bill’s requirements.
Prior versions of the bill required the local government to withhold payments to any contractor who failed to submit certain reports or who submitted reports deemed by the local government or by a representative of the exclusive bargaining unit as “underperforming.” Those provisions were removed in the April 25, 2024, amendments to the bill.
6. Shifting the burden & an alternate approach. Much of the contract-related information – though certainly not the bill’s newly-created performance reports – sought by this bill is a matter of public record. This fact was reiterated just last year AB 790 (Padilla), which after being signed into law clearly states:
- Any executed contract for the purchase of goods or services by a state or local agency, including the price and terms of payment, is a public record subject to disclosure;
- Any provision in a written agreement that purports to exclude a contract from disclosure by agreeing to consider it a confidential or proprietary record of the vendor is void and unenforceable as a matter of law; and
- Records that are otherwise exempt from disclosure or prohibited from disclosure pursuant to federal or state law are not required to be disclosed.
However, the fact remains that accessing these records requires employee organizations (and any interested party) to request it from the local government under the CPRA.
This bill shifts the burden from requiring the employee organizations to request the information to the private contractors, who must provide it to the local government and the employee organization. While the bill is silent on who pays for this information, it would be reasonable to assume the local government and its taxpayers would likely foot the bill for it through higher contract costs.
An alternate approach to the one in this bill the Committee may wish to consider that would still increase the level of transparency into the contracting out process without increasing the burden on private contractors and nonprofit groups would be to replace the language in the bill with language to:
- Require local governments to, prior to issuing an RFP to contract out any work, inform the affected employee organization bargaining unit. While the MMBA does require this for all contracts that fall within the “scope of representation,” it is possible some local governments do not provide the notice and meet and confer options under the MMBA because they don’t view certain contracts as fall within the “scope of representation”; and
- As it pertains to contracts and contract-related information that must be disclosed under the CPRA, create an affirmative duty for the local government to post this information for all contracts on its website, instead of effectively requiring an employee organization or any member of the public to file a CPRA request.
7. Charter cities & counties. The California Constitution allows cities and counties that adopt charters to control their own “municipal affairs.” In all other matters, charter cities and counties must follow the general, statewide laws. Because the Constitution doesn't define “municipal affairs,” the courts determine whether a topic is a municipal affair or an issue of statewide concern. AB 2557 says that its statutory provisions apply to charter cities and counties. To support this assertion, the bill includes a legislative finding that ensuring the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for the purposes of the California Constitution Article XI, Section 4, and therefore applies to all counties, including charter counties. It also includes findings and declarations that ensuring the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in the California Constitution Article XI, Section 5, and therefore applies to all cities, including charter cities.
8. Related legislation. AB 2489 (Ward) of 2024 sought to, among other provisions, require a local government wanting to contract out for certain services to notify the affected union of its intent 10 months before soliciting the contract and show the contractors employees meet or exceed the minimum qualifications required of government employees. AB 2489 was held on the Assembly Appropriations Committee’s suspense file.
AB 2561 (McKinnor) of 2024 requires local agencies to prepare certain studies and develop plans to reduce their vacancy rates when the vacancy rate exceeds 10%. AB 2561 is pending in the Senate Labor, Public Employment and Retirement Committee.
AB 1250 (Jones-Sawyer) of 2017 sought to establish a sweeping set of standards for personal service contracts by local governments. The bill was approved by the Senate Governance & Finance Committee, but was eventually referred back to and held by the Senate Rules Committee.
9. Next stop. The Senate Rules Committee has double-referred this measure, first to the Senate Local Government Committee and next to the Senate Labor, Public Employment and Retirement Committee, which is where it will go next if it is approved today.
Assembly Actions
Assembly Public Employment & Retirement Committee: 4-2
Assembly Judiciary Committee: 8-2
Assembly Appropriations Committee: 11-4
Assembly Floor: 51-16
Support and Opposition
(6/7/24)
Support: American Federation of State, County and Municipal Employees, Afl-cio (Co-Sponsor)
California Labor Federation, Afl-cio (Co-Sponsor)
California State Council of Service Employees International Union (SEIU California) (Co-Sponsor)
California Professional Firefighters
California Teachers Association
Opposition: 360 Accelerator Education Partners
5 Stones Open Door
805 Undocufund
A Greater Hope
A.l. Clinton Charitable and Operating Foundations
Abrazar, INC.
Active Cultures
Alano Club of Redding INC.
Aldea, INC.
Alliance for Community Empowerment
Alliance for Young Women and Girls
Alpha Academy Youth Training Facility
American Council of Engineering Companies, California
American Institute of Architects California
American Public Works Association Region Viii
Anderson Valley Winegrowers Association
Aresis Ensemble (city Garage)
Arts for La
Asociacion De Emprendedor@s
Associaiton of California School Administrators
Association of California Water Agencies (ACWA)
Association of Community Human Service Agencies
Bay Area Bioscience Education Community (BABEC)
Birthmom Buddies
Boys & Girls Club of Laguna Beach - Also Serving Saddleback Valley
Boys & Girls Club of The Foothills
Bread & Roses Presents
Building a Generation
Butte Environmental Council
Cal Poly Humboldt Centerarts
Calchamber
California & Nevada Civil Engineers and Land Surveyors Association, INC.
California Alliance of Child and Family Services
California Association for Local Economic Development (CALED)
California Association of Alcohol and Drug Program Executives, INC.
California Association of County Veterans Service Officers
California Association of Joint Powers Authorities (CAJPA)
California Association of Nonprofits
California Association of Public Hospitals and Health Systems
California Association of Recreational Park Districts
California Council of Community Behavioral Health Agencies
California County Superintendents
California Family Life Center
California Family Resource Association
California Fire Chief's Association
California Geotechnical Engineers Association
California Municipal Utilities Association
California Parks and Recreation Society
California Releaf
California School Boards Association
California Special Districts Association
California State Association of Counties (CSAC)
California State Sheriffs' Association
Calle 24 Latino Cultural District
Calnonprofits
Carpinteria Children's Project
Center for Family Strengthening
Center for Human Services
Center for Nonprofit Leadership of The Sierra
Center for Nonprofit Management
Central California Family Crisis Center, INC.
Ceres Community Project
Chrysalis
Citizens Review Panel-critical Incidents
City of Bakersfield
City of Colton
City of Corona
City of Foster City
City of Lomita
City of Los Alamitos
City of Merced
City of Redlands
Coalition of Adequate School Housing (CASH)
Coastal Nonprofit Consulting
Cocokids
Colin Bailey Legal and Consulting Services
Collective Resilience
Community Build, INC.
Community Education Partnerships
Community Partners
Community Solutions
Compassion Institute
Conflict Resolution Center of Santa Cruz County
Contra Costa Chorale
County Behavioral Health Directors Association of California
County Health Executives Association of California (CHEAC)
County of Alpine
County of Butte
County of Contra Costa
County of Fresno
County of Inyo
County of Kern
County of Kings
County of Los Angeles
County of Madera
County of Merced
County of Placer
County of Sacramento
County of Sierra
County of Stanislaus
County Welfare Directors Association of California
Creative Alternatives
Crenshaw Health Partners
Cressgcmconsultllc
Crittenton Services for Youth and Families
Cultiva LA Salud
Didi Hirsch Mental Health Services
Dorothy Glaspie Foundation INC
Duc Learning Center
East Bay Sanctuary Covenant
Eastern Municipal Water District
Erisat-eritrean Satellite Television
Esquires Music Foundation
Exclusively First Responders
Exposure Skate
Families in Transition of Santa Cruz County, INC.
Family Bridges, INC
Feed My Flock INC.
Fierce Advocates
First Place for Youth
Five Keys
Food Exploration and Discovery
Food for People
Foster City Village, INC.
Fostering Dreams Project
Free the Need
Freedom Through Education
Fresh Lifelines for Youth (FLY)
Galt Teen Center
Gold Country Bats
Green 4 Kids
Groundwork San Diego Chollas Creek
Helpline Youth Counseling, INC.
Hijas Del Campo
Hillsides
Hmi
Human Services Alliance of Contra Costa
Humanistic Alternative to Addiction Research and Treatment, INC.
Independent Transportation Network Monterey County
Ink People Center for Arts and Culture
Inland Empire Community Collaborative
Interim, INC.
Iron Sharpens Iron Nonprofit Organization
Ives Torres Foundation
Josephine S. Gumbiner Foundation
Kalaya's Destiny
Kamali'i Foster Family Agency, INC.
Kern Bridges Youth Homes
Kidstream Children's Museum
Koreatown Youth + Community Center
Laguna Food Pantry
League of California Cities
Lets Stand Together
Lions Club of Benicia
Loch Lomond Glen Foundation
Low Income Investment Fund
Making Hope Happen Foundation
Manos Que Sobreviven
Maternal and Child Health Access
Meals on Wheels California
Mend: Meet Each Need With Dignity
Michelle's Place Cancer Resource Center
Mirror to Image Women Achieve
Mosquito and Vector Control Association of California
Mountain Homeless Coalition
Move Santa Barbara County
Ncrt, INC.
New Perspectives Center for Counseling
Nonprofit Kinect
Northern Santa Barbara County United Way
Office of Samoan Affairs
Open Heart Kitchen
Oxnard Performing Arts Center Corporation (OPACC)
P2p Community Development Center
Pajaro Valley Prevention and Student Assistance, INC.
Partnership for Ovc-ethiopia
Pasadena Meals on Wheels, INC
Path
Pence Gallery
Peninsula Family Service
Peninsula Youth Theatre
Pleasantview Industries, INC.
Preetirang Sanctuary
Project Return Peer Support Network
Prunedale Senior Center INC.
Public Counsel
Public Risk Innovation, Solutions, and Management (PRISM)
Raices Y Carino
Rebuilding Together Peninsula
Richmond Community Foundation
Richmond Museum Associaion
Richmond Museum of History and Culture
Rising Communities
Rose Bowl Aquatics Center
Rural County Representatives of California (RCRC)
Sacra/profana
Sacramento Area Creeks Council
Sacramento Ballet
San Diego Humane Society
San Francisco Study Center
San Pedro Meals on Wheels
Santa Barbara Community Housing Corporation
Santa Barbara County Immigrant Legal Defense Center
Santa Ynez Valley Historical Museum
Save Elephant Hill
Sdv&cc
Self
Seneca Family of Agencies
Seniors Council of Santa Cruz & San Benito Counties
Shasta Cascade Health Centers
Side by Side
Sierra - Sacramento Valley EMS Agency
Sierra County Department of Public Works and Transportation
Social Science Services, Inc., Dba Cedar House Life Change Center
Southern California Contractors Association
Southside Unlimited
Spectrum Community Services, INC.
Sst Nonprofit Services
Stanford Sierra Youth and Families
Stories From the Frontline
Students for Eco-education and Ag
Studio 395 Foundation
Tahoe Water for Fire Suppression Partnership
Tent City Barbers
Testimonial Community Love Center
The 418 Project
The Adam Leventhal Memorial School & Museum
The Alpine Mountaineer
The Can Man
The Child Abuse Prevention Center
The Diversity Center of Santa Cruz County
The Gold Miners Girl
The Mom & Dad Project
The Nonprofit Partnership
The Plus Me Project
The Source Lgbt+ Center
The Village Family Services
Transitions-mental Health Association (TMHA)
Turning Point Community Programs
Tustin Area Woman's Club
Ultimate Restoration Unlimited, Uru INC.
United Ways of California
Urban Counties of California (UCC)
Urban Social Services and Advocacy
Valley Fund Corporation
Valley Teen Ranch
Victims Empowerment Support Team (VEST)
Village Community Resource Center
Volunteer Center of Santa Cruz County
Watershed Research & Training Center
Waymakers
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2557
Author:(Ortega)
As Amended Ver:May 16, 2024
Majority vote
SUMMARY
Makes changes to existing law relating to contracts by local governments (i.e., counties, cities, local public agencies, and municipal corporations) for certain services by requiring such contracts to include specific standards and requirements, among other provisions.
Major Provisions
- Relating to contracts by counties for special services:
- Require each person who enters into a special services contract with the county board of supervisors (BOS) to perform functions currently, or were in the in the prior five years, performed by employees represented by an employee organization to submit semiannual performance reports to the BOS and exclusive representative of an employee organization every 180 days.
- Require semiannual performance reports to include prescribed information (i.e., contract objectives and goals; deliverables that the contractor has provided; contractor's progress regarding contract objectives; financial expenditures for services (i.e. personnel costs direct and indirect expenses); quantitative and characteristic data regarding the contractor's and subcontractor's employees; names of subcontractors and their employees providing services under the contract; compensation and benefits provided to subcontractors and their employees; and, wages paid to employees of independent contractors).
- Require contracts exceeding two years to undergo a performance audit by an independent auditor approved by the BOS to determine whether performance standards are being met; audits to be conducted at least one year before the contract expires or qualifies for renewal; the independent auditor to publicly present findings of the audit report to BOS; the contractor to reimburse the BOS for the costs of the audit, which must not be factored into the contract costs; and prohibit the BOS from renewing or extending a contract before receiving and evaluating the audit report.
- Require contracts to be subject to disclosure under the California Public Records Act (CPRA), as provided, and contractors and subcontractors to maintain records related to performance of the contract that ordinarily would be maintained by the county or city, as applicable.
- Relating to contracts by counties with temporary help firms for temporary help to assist county agencies, departments, or offices under certain circumstances, the same above-described provisions apply, except monthly performance reports, every 30 days, must be submitted with respect to contracts with the BOS that exceed 60 days.
- Relating to contracts by cities with specially trained and experienced persons, firms, or corporations for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters, the same above-described provisions under "1)" apply, but to the legislative body of a city.
- Relating to contracts by local public or municipal corporations or districts for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters, the same described provisions under "1)", above, apply, but to the legislative body of a local public or municipal corporation or district.
- Do not require monthly or semiannual performance reports for contracts between governmental entities.
- Define the following terms for these purposes:
- "Deliverables" to mean the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
- "Total compensation" to mean the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
- Expressly state legislative findings and declarations that ensuring that the replacement of bargaining unity work with contracted employees does not undermine public employee relations is a matter of statewide concern, rather than a municipal affair. Therefore, the provisions of this proposed statute apply to all counties, cities, charter counties, and charter cities.
- Apply the above-described provisions on or after January 1, 2025, and provide that the statute must apply prospectively and not be construed, applied, or otherwise interpreted to have any effect on or application to contracts entered into before that date.
- Include a severability clause to shield otherwise valid provisions from becoming invalid in the event of a successful legal challenge to the statute.
COMMENTS
This bill does not foreclose or prevent local government authority to contract for special services and other services, as authorized under existing law. Rather, by establishing standards as prescribed, it ensures that the contracted services: a) meet the specific need for such services, b) meet the expectations of the contracting authority to provide needed services appropriately given the expenditure of taxpayer monies; and, c) raise contract, performance, and employment standards borne by the local government contracting authority and vendor to be adhered to in the interests of public transparency, scrutiny, accountability, and ensuring public safety, health, and welfare.
According to the Author
"[This bill] ensures transparency and accountability when local governments outsource public jobs and contract with private entities for services. This allows better oversight over how taxpayer dollars are being spent and whether Californians are receiving the public services they pay for."
Arguments in Support
Generally, supporters; namely, employee organizations, state that, historically, public sector work has been considered the backbone of the middle class; however, continuous decreases in funding and austerity measures have led to a decline of stable union jobs in the public sector workforce that sustain families and communities. The contracting of public employee work and jobs removes long-term career and quality of life opportunities for individuals who otherwise want to, or do, work in the public sector.
By contrast, they state, private workers are paid less and receive no, or less, benefits resulting in high turnover rates, and because private contractors are for-profit entities, they are driven by profit, which changes the way services are provided and to whom they are provided in a manner that can harm residents and communities that are most in need, but more expensive to serve. Further, to increase profit, contractors cut corners which results in lower-quality services, increased errors, and limited access that are not in the primary interests of the public.
Finally and generally, supporters state that this bill is necessary to examine whether contracts serve their intended purpose towards increased public transparency/scrutiny and accountability with taxpayer monies.
Arguments in Opposition
Generally, opponents; namely, local public agencies and others, generally express opposition to this bill for a number of reasons, including: a) the notice requirements, including their lack of consideration as to emergencies or labor disputes regarding strikes that inhibit or prevent adaptability and situational contingency plans; b) personally identifiable information being subject to CPRA disclosure and resources needs to maintain records for CPRA purposes; c) contractor compliance, withholding payment from a contractor for specified reasons; d) contractor compliance plans that involve including approval from an employee organization or its representative; thereby, placing unions in an equal decision-making manner as the local governing body; and, e) quarterly performance reports, and an audit by an independent auditor to determine whether performance standards are met (the costs of which must be paid by the contractor), are all deterrents to nonprofit providers, community-based organizations, and other private providers from engaging with local agencies that will result in increased caseloads and workloads of existing staff, and costs.
Among other things, opponents also express that local public employer-employee relations laws cover contracting of bargaining unit work, and with ongoing state efforts to engage more community partners to effectively connect with vulnerable communities to meet state policy, program, and outcomes expectations that benefit the public, this bill sets up local public agencies to fail.
Without registering a specific position on this bill (i.e., support; support, if amended; opposed; or, opposed, unless amended), generally, a number of nonprofit entities express concerns regarding this bill relating to its inconsistent approach with current federal efforts to reduce unnecessary compliance costs, remove barriers to entry, ensure assistance serves intended communities, and increase transparency to strengthen nonprofit-government partnership.
In addition to providing examples of the services and positive outcomes of those services they provide in partnering with government, among other things, they express that because government and nonprofits are interdependent, and a successful partnership is critical to meeting Californian's needs, they rely on government contracts to help achieve government policy, services, and program objectives. Because this bill imposes certain requirements, it could reinforce hiring inequities that also will create barriers for service recipients. In sum, and given these concerns, they want to work with the author and sponsors to find a cooperative path forward.
FISCAL COMMENTS
The Assembly Appropriations Committee states that this bill would result in potential costs of an unknown amount to local governments to the extent contractors pass on the costs of these requirements to local governments in the form of increased contract costs. Costs to local governments could also increase to the extent contractors no longer engage in these contracts due to the requirements of this bill and the costs to local governments to employ other individuals is higher than the costs of contracting out.
Further, if the Commission on State Mandates determines the bill's requirements to be a reimbursable state mandate, the state would need to reimburse these costs to local agencies.
VOTES
ASM PUBLIC EMPLOYMENT AND RETIREMENT: 4-2-1
YES: McKinnor, Boerner, Hart, Luz Rivas
NO: Lackey, Vince Fong
ABS, ABST OR NV: Stephanie Nguyen
ASM JUDICIARY: 8-2-2
YES: Kalra, Bauer-Kahan, Bryan, Connolly, Haney, Maienschein, McKinnor, Reyes
NO: Dixon, Sanchez
ABS, ABST OR NV: Pacheco, Waldron
ASM APPROPRIATIONS: 11-4-0
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
NO: Sanchez, Dixon, Jim Patterson, Ta
UPDATED
VERSION: May 16, 2024
CONSULTANT: Michael Bolden / P. E. & R. / (916) 319-3957 FN: 0003280
Date of Hearing: May 8, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2557
Author:(Ortega) – As Amended Ver:April 25, 2024
Policy Committee: | Public Employment and Retirement | Vote: | 4 - 2 |
Judiciary | 8 - 2 | ||
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Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill requires a contractor to fulfill certain requirements if the contractor enters into a contract with a local government to perform functions that currently are or were performed by public employees represented by an employee organization, such as submitting quarterly performance reports to the local governing body and the exclusive representative of the employee organization.
Specifically, this bill requires each entity who enters into a contract to provide special services or temporary labor with a local government to perform functions that currently are, or in the last 10 years have been, performed by public employees represented by a union, to submit quarterly performance reports every 90 days to the local governing body and the exclusive representative of the employee organization. The bill also requires contract terms exceeding two years to undergo a performance audit by an independent auditor approved by the board to determine whether performance standards are being met. The performance reports are to include specific demographic information about the contractor’s workforce, rates of compensation, and a list of the contractor’s expenditures, among other items.
FISCAL EFFECT:
Potential costs of an unknown amount to local governments to the extent contractors pass on the costs of these requirements to local governments in the form of increased contract costs. Costs to local governments could also increase to the extent contractors no longer engage in these contracts due to the requirements of this bill and the costs to local governments to employ other individuals is higher than the costs of contracting out.
If the Commission on State Mandates determines the bill’s requirements to be a reimbursable state mandate, the state would need to reimburse these costs to local agencies.
COMMENTS:
- Purpose. According to the author, this bill:
Ensures transparency and accountability when local governments outsource public jobs and contract with private entities for services. The bill requires that the corporations and private entities that provide services to local governments submit performance, workforce, and budget reports to the local agency they have entered into the agreement with, if they are contracted to perform functions that are currently performed by the local agency’s employees, or have been within the past 10 years. This allows better oversight over how taxpayer dollars are being spent and whether Californians are receiving the public services they pay for.
This bill is co-sponsored by American Federation of State, County and Municipal Employees, AFL-CIO and the California Labor Federation and supported by various labor organizations.
- Background. Current law allows local governments to contract out for provide special services or temporary labor, if certain conditions are met. These instances are as follows:
- A county board of supervisors may contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county if those persons are specially trained, experienced, expert, and competent to perform those services.
- A legislative body of a public or municipal corporation or district may contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.
- A legislative body of a city may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.
- A county board of supervisors may contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Current law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.
This bill requires, for contractors providing special services and temporary help to local governments in these instances, to fulfill certain requirements, such as submitting quarterly performance reports among other requirements.
- Opposition. This bill is opposed by a coalition of local government groups. An alliance of nonprofit groups also have raised concerns. Both groups report concerns that fewer private contractors and nonprofits will enter into contracts with local governments as a result of this bill, which they believe could affect the provision of services to residents.
- Related Legislation. AB 2489 (Ward) requires a local government that wants to contract for services already performed by union employees to notify the union of its intent at least 10 months before beginning the process of procuring the contract, and it requires the intended contractors to show that their employees meet or exceed minimum qualifications and standards required of union employees. The bill is pending in this committee.
Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081
Date of Hearing: April 23, 2024
ASSEMBLY COMMITTEE ON JUDICIARY
Ash Kalra, Chair
ABPCA Bill Id:AB 2557
Author:(Ortega) – As Amended Ver:April 8, 2024
As Proposed to be Amended
SUBJECT: Local agencies: contracts for special services and temporary help: performance reports
KEY ISSUE: Should a contractor who enters into a contract with a local government to perform functions that are currently, or in the last 10 years, performed by public union employees, be required to submit quarterly performance reports to the local governing body and the exclusive representative of the employee organization?
SYNOPSIS
This bill, similar to AB 2489, which is also before the Committee today, would impose additional requirements on entities that contract with local governments to provide special services or temporary labor, where the contracted labor force performs “functions” that currently are, or in the last 10 years were, performed by public union employees. According to the author and co-sponsors, this bill is needed to combat a trend of local governments contracting work out to private contractors to cut costs, and in the process subjecting the public to substandard services. The bill requires very contractor affected by its provisions to submit a performance report on a quarterly basis. The performance report must include specific information about the contractor’s workforce, rates of compensation, as well as the contract objectives, a description of all “deliverables” that the contract has provided, and a list of “financial expenditures,” among other things. According to the author, the bill, by requiring performance reports, will bring transparency and accountability to both local governments and private contractors.
This bill recently passed out of the Assembly Public Employment and Retirement Committee on a 4 to 2 vote. The bill is co-sponsored by organized labor groups and opposed by local government groups. An alliance of nonprofit groups has raised substantial concerns but is not yet opposing the bill. The bill in print includes a 10-month notice provision that is virtually identical to the provision in AB 2489. The author has agreed to amend the bill in Committee to remove this duplicative provision. The author has also agreed to remove a provision that would have allowed the local governing board to withhold payment if either the governing board or the public employee union deemed the contract to be underperforming after reviewing the performance report. The bill, as proposed to be amended, requires only that the contractor submit quarterly performance reports and pay for an independent auditor to monitor performance. The proposed amendments are reflected in the summary below and in the analysis.
SUMMARY: Requires a contractor who enters into a contract with a local government to perform functions that currently are, or in the last 10 years have been, performed by public employees represented by an employee organization, to submit quarterly performance reports to the local governing body and the exclusive representative of the employee organization. Specifically, this bill:
- Requires each person who enters into a contract with the governing body of a city or county to perform functions that are currently, or were in the prior 10 years, performed by employees of the city or county represented by an employee organization to submit quarterly performance reports, every 90 days, to the local governing body and the exclusive representative of the employee organization.
- Requires each person who enters into a contract with the governing body of a city or county to perform a temporary services contract, as specified, to perform functions that are currently, or were in the prior 10 years, performed by employees of the city or county represented by an employee organization, to submit quarterly performance reports, every 30 days, to the relevant agency and the exclusive representative of the employee organization.
- Requires the monthly performance reports required in 1) and 2) above to include all of the following:
- A list of all contract objectives that describe the goals of the contract.
- A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.
- A description of the contractor’s progress towards contract objectives identified in the performance report.
- A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.
- The number of each contractor and subcontractor’s employees, organized by job category, sex, race, and ethnicity, and the number of each contractor and subcontractor’s independent contractors by job category, sex, race, and ethnicity.
- The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.
- The hourly rates, total compensation, and pay scales for specified individuals, organized by job classification.
- The names of any workers providing services pursuant to the contract as independent contractors.
- Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.
- Requires the governing body or its representative to monitor quarterly performance reports to evaluate the quality of services.
- Requires that contracts exceeding two years shall undergo an audit by an independent auditor approved by the local governing body to ensure that performance standards are being met. Prohibits the local governing body from renewing or extending a contract before receiving the auditor report. Specifies that the contractor shall reimburse the local governing body for the cost of the audit, and the contractor shall not factor those costs into the contract costs.
- Defines the following terms for purposes of the above:
- “Deliverables” means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
- “Total compensation” means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
EXISTING LAW:
- Authorizes a county board of supervisors to contract for special services on behalf of the county, county officers or departments, or district or courts in the county, and requires that the contract be with persons specially trained, experienced, and have expertise and competence to perform the special services, and establishes that special services consist of services, advice, education or training for financial, economic, accounting (including the preparation and issuance of payroll checks or warrants), engineering, legal, medical, therapeutic, administrative, architectural, airport or building security matters, laundry services, or linen services, and may include maintenance or custodial matters, as prescribed, among other provisions. (Government Code Section 31000. Subsequent section numbers refer to this code unless otherwise indicated.)
- Authorizes the county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided that the board determines that is in the county’s economic interest to provide temporary help, rather than employ individuals for that purposes, and limits temporary help to 90 days or less for any single peak load, temporary absence, or emergency situation. (Section 31000.4.)
- Authorizes the legislative body of cities to contract with any specially trained and experienced person, firm or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters. (Section 37103.)
- Authorizes the legislative body of any public or municipal corporation to contract with, and employ any persons for district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained, experienced and competent to perform the special services required, among other provisions. (Section 53060.)
- Authorizes the state, county free libraries, school districts, and community college districts, respectively, to enter into personal services contracts, and establishes the conditions that must be met when procuring such contracts. (Section 19030.6.)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: According to the author, this bill “ensures transparency and accountability when local governments outsource public jobs and contract with private entities for services. The bill requires that the corporations and private entities that provide services to local governments submit performance, workforce, and budget reports to the local agency they have entered into the agreement with, if they are contracted to perform functions that are currently performed by the local agency’s employees, or have been within the past 10 years. This allows better oversight over how taxpayer dollars are being spent and whether Californians are receiving the public services they pay for.”
This bill, similar to AB 2489, which is also before the Committee today, seeks to impose additional requirements on entities that contract with local governments to provide special services or temporary labor, if the contracted labor force performs “functions” that currently are, or in the last 10 years were, performed by public union employees. According to the author and co-sponsors, this bill is needed to combat a trend of local governments contracting work out to private contracts to cut costs, and in the process they subject the public to shoddier services. Indeed, the author and sponsors raise the possibility of corruption, “with private entity executives bribing public officials to secure the contracts in the first place or using money from the contracts on lavish gifts and vacations.”
In order to provide transparency and accountability, the bill requires every contractor to submit a performance report on a quarterly basis if they perform a function that currently is, or in the last 10 years was, performed by public employees represented by a union. The performance reports must include specific demographic information about the contractor’s workforce, rates of compensation, the contract objectives, a description of all “deliverables” that the contractor has provided, and a list of the contractor’s “financial expenditures,” among other things.
Local government and nonprofit concerns. This bill is opposed by a coalition of local government groups. An alliance of nonprofit groups, while not opposing the measure at this time, have raised very substantial concerns about both this bill and AB 2489.
Many of the concerns raised by the local government groups and the nonprofits are quite similar. In general, they argue that requirements in the performance reports are burdensome, unnecessary, and duplicative, and likely will result in fewer private contractors and nonprofits entering into these contracts. According to these groups, the vital services available from these private contractors and nonprofits will not be provided to the community. Both groups also object to the assumption that government contracts with private contractors lead to lower quality services, or that they are only used in order to cut costs. Finally, both groups point out the elements in the performance reports are typically already required by the contract, which typically sets forth timelines, costs, deliverables, and the like. Both raise concerns about the requirement that contracts and performance reports will be reviewed by an independent auditor that the contractors will have to pay for. Both groups fear that the result of this bill, together with AB 2489, will impose so many burdens on private contractors and nonprofits that they will simply choose not to contract with government entities. The nonprofits, in particular, point out that their groups usually work cooperatively with local governments and public employees to provide needed services.
Indeed, while the Committee has not been provided with information from either side about the relative quality of work performed pursuant to these contracts, the local governments and nonprofits do raise legitimate questions about the need for performance reports when many of the elements within the reports likely would be included in the contract itself. These performance metrics typically are negotiated between the parties. If the private contractor failed to adequately perform the conditions of the contract, then the agreement can be enforced under standard principles of contract law or, as is often the case, by the terms of the contract itself. For example, the co-sponsors claim that oversight and performance reports are necessary “to [know] what exact services will be provided, or what a successful execution of their contract would look like.” It is difficult to imagine that a contract would not specify what services will be provided or what successful completion of the contract will look like. The author may wish to specify, as the bill moves forward, the extent to which a performance report, or specific information required to be provided within such a report, is required to be reported by the contractor if that information is provided in, or must be reported pursuant to, the original contract.
Comparison to AB 2489 and proposed amendments. The bill in print includes a 10-month notice provision that is virtually identical to the provision in AB 2489. The author has agreed to amend the bill in Committee to remove this duplicative provision from the bill. The author has also agreed to remove a provision from the bill that would have allowed the local governing board to withhold payment if either the governing board, or the public employee union, deemed the contract to be underperforming. The bill, as proposed to be amended, requires only that the contractor submit quarterly performance reports and pay for an independent auditor to monitor performance.
Proposed Author Amendments. The author wishes to take the following amendments in this Committee. The amendments listed below are listed only once, but they will appear in all four sections of the bill in print.
- Delete all of page 3 and delete lines 1-8 on page 4 (removing the 10-month notice provision.)
- On page 4, line 9, strike subdivision (c) and insert Section 31000.05.
- On page 5, delete lines 11-32 (deleting withholding payment provisions)
- On page 6, delete lines 19-20 and 25-28 (deleting definitions that are no longer relevant)
- Make the same amendments in the parallel sections and subdivisions of SEC 2-4 of the bill.
ARGUMENTS IN SUPPORT: According to AFCSME, one of the bill’s co-sponsors, “the lack of transparency and accountability around [local government contracts with private contractors] can lead to disastrous results. Local governments often contract out to the tune of tens of millions of taxpayer dollars for services related to fighting homelessness, for example, arguably the biggest issue facing cities and counties. However, without proper oversight the private entities that receive these contracts do not have to account for how the money they get will be spent, what exact services will be provided, or what a successful execution of their contract would look like. Additionally, these contracts can result in corruption, with private entity executives bribing public officials to secure the contracts in the first place or using money from the contracts on lavish gifts and vacations. Given the importance of the services that are being contracted out, it is vital that more safeguards be in place so that taxpayers can know how much of their money is being used and that local governments know the progress being made toward goals outlined in these contracts.” AB 2557, AFSCME believes, will provide this much needed transparency and address these problems.
ARGUMENTS IN OPPOSITION: A coalition of groups representing local governments, agencies, and districts, opposes this bill for a variety of reasons. They complain the bill requires a “litany of required components, including personally identifiable information for its employees and subcontractors, that is then subject to the California Public Records Act.” However, the local government group’s opposition letter pertains mostly to a provision that will be removed from the bill in this Committee: the provision that would have allowed the local government to withhold payment if either the local governing body or the employee union deemed that the contractor had “underperformed” in some way. However, the local government groups also oppose the remaining provision that would require the contract to be reviewed by an independent auditor, and that would require the contract to pay for that auditor. The local government groups fear that private contractors will simply not enter into these contracts. Moreover, the local government groups point out that local agencies are already subject to the statutory provisions of the Meyers-Milias-Brown Act (MMBA) and related provisions of state law. These laws already establish that local agencies cannot contract out bargaining unit work simply to save money and most contracting-out decisions are subject to meet-and-confer requirements. There are exceptions to the meet-and-confer requirement in cases of compelling necessity (like an emergency) or when there is an established past practice of contracting out particular work. AB 2557 does not incorporate either of these limitations.” The local government groups contend that “these issues are better addressed at the bargaining table where local conditions can be appropriately considered.”
Concerns: An alliance of several nonprofit groups, while not opposing this bill, expresses serious concerns, most of which deal with both AB 2557 as well as AB 2489, which is also before this Committee today. As noted in the AB 2489 analysis, they question the underlying premise that work performed by nonprofits under a contract with a local government provide a poorer quality of service or pose a threat to the well-being of public employees. Indeed, they argue that nonprofit organizations often work in conjunction with public employees to provide needed services, such as when food banks help to enroll people into government assistance programs.
In addition, the nonprofit alliance attests to “the myriad ways that nonprofits along with our employees are held accountable to those who contract with us to ensure we are delivering on-time, quality, and affordable programs.” The nonprofit groups claim that nearly “all contracts are made public through the city and county legislative processes.” Similar to the concerns raised by the local government groups, the nonprofit groups contend that the performance reports go beyond what is required for state governments. Moreover, both groups point out that meeting performance goals and standards is generally something that is spelled out by the contract, and that this bill – along with AB 2489 – will simply increase the costs and hurdles of contracting with state agencies to the point that nonprofits will simply not be able to enter into those contracts, despite the fact that they provide vital social services that cannot always be performed by public employees.
Nonprofits conclude that they “have historically filled service gaps because we are uniquely qualified to meet specific community needs. We are troubled by any characterization that such partnership negatively impacts service provision and do not think that reflects reality. Indeed, Californians trust nonprofits to deliver services by margins of as much as forty percentage points higher than the private sector or government.”
Finally, both the local government groups and the nonprofits raised questions with the Committee, as well as in their letters of opposition, about the potential vagueness of the word “function” in AB 2557. What does it mean to say that the work performed by the private contractor performs a function currently, or in the last ten years, performed by public union employees? Does it mean that they would perform exactly the same work, or does it mean they would perform similar work?
REGISTERED SUPPORT / OPPOSITION:
Support
American Federation of State, County and Municipal Employees
California Labor Federation
California Professional Firefighters
California State Council of Service Employees International Union (SEIU California)
Coalition of California Welfare Rights Organizations
Opposition
American Council of Engineering Companies of California
American Institute of Architects California
American Public Works Association Region Viii
American Society of Civil Engineers, Region 9
American Staffing Association
Association of California Healthcare Districts (ACHD)
California Association of Recreation & Park Districts
California Association of Sanitation Agencies
California Chamber of Commerce
California Geotechnical Engineers Association
California State Association of Counties (CSAC)
California State Park Rangers Association
County Behavioral Health Directors Association (CBHDA)
County Health Executives Association of California (CHEAC)
County Welfare Directors Association of California
League of California Cities
Rural County Representatives of California (RCRC)
Urban Counties of California (UCC)
Concerns/Other
California Association of Nonprofits
California Council of Community Behavioral Health Agencies
California ReLeaf
Center for Nonprofit Management
CocoKids
Community Water Center
Inland Empire Community Collaborative
Koreatown Youth + Community Center
Meals on Wheels California
Nonprofit Finance Fund (NFF)
PATH
Rural Community Assistance Corporation
Santa Cruz Volunteer Center
Tree People
United Ways of California
Analysis Prepared by: Tom Clark / JUD. / (916) 319-2334
Date of Hearing: April 17, 2024
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYMENT AND RETIREMENT
Tina S. McKinnor, Chair
ABPCA Bill Id:AB 2557 (
Author:Ortega) – As Amended Ver:April 8, 2024
SUBJECT: Local agencies: contracts for special services and temporary help: performance reports
SUMMARY: Makes changes to existing law relating to contracts by local governments (i.e., counties, cities, local public agencies, and municipal corporations) for certain services by requiring such contracts to include specific standards and requirements, among other provisions. Specifically, this bill:
- Relating to contracts by counties and cities for special services:
- Requires each contract for special services to include specific performance standards and requirements, including, but not limited to, objectives and deliverables.
- Requires the county board of supervisors (BOS), and legislative body of a city, or their respective representatives, as applicable, to notify in writing the exclusive representative of the workforce affected by the contract of its determination to begin a process of procurement at least 10 months prior to beginning the process to contract for services that are currently, or were in the previous 10 years, performed by civil service employees represented by an exclusive representative, as provided.
- Requires each person who enters into such contracts to submit quarterly performance reports, every 90 days, to the BOS, and legislative body of a city, as applicable, and the exclusive representative of the employee organization.
- Requires quarterly performance reports to include information, as prescribed (i.e., contract objectives and goals; deliverables that the contractor has provided; contractor’s progress regarding contract objectives; financial expenditures for services (i.e. personnel costs direct and indirect expenses); quantitative and characteristic data regarding the contractor’s and subcontractor’s employees; names of subcontractors and their employees providing services under the contract; compensation and benefits provided to subcontractors and their employees; and, and wages paid to, employees of independent contractors).
- Requires the BOS, and legislative body of a city, or their respective representatives, as applicable, to monitor quarterly performance reports to evaluate the quality of services, and withhold payment to the contractor for contractual underperformance, and failing to submit quarterly reports, or providing incomplete reports, which must constitute a breach of contract. However, if the contractor submits a plan to achieve compliance, or provides completed reports, payments (including all payments previously withheld) may be resumed, unless the plan is rejected by the BOS, legislative body of a city, or employee organization within a reasonable time.
- Does not require quarterly performance reports for contracts between governmental entities.
- Requires contracts exceeding two years to undergo a performance audit by an independent auditor approved by the BOS, or legislative body of a city, as applicable, to determine whether performance standards are met; such audits must be conducted at least one year before the contract expires, or qualifies for renewal or extension; the auditor to present findings of the audit report during public session of the local governing body, as provided; the contractor to reimburse the local governing body, as prescribed, for audit costs for which the contractor must not factor those costs into the contract; and, prohibits the local governing body, as provided, from renewing or extending the contract before receiving and evaluating the audit report in conference with an exclusive bargaining unit representative.
- Requires specified contracts to be subject to disclosure under the California Public Records Act (CPRA), as provided, and contractors and subcontractors to maintain records related to performance of the contract that ordinarily would be maintained by the county or city, as applicable.
- Relating to contracts by counties with temporary help firms, applies the same above-described provisions, except that with respect to such contracts, the BOS must, instead, notify the exclusive representative of the workforce affected by the contract at least 90 days before beginning the procurement process.
- Relating to contracts by cities for special services, including contracts for advice in financial, economic, accounting, engineering, legal, or administrative matters, applies the same provisions described under “1),” above, but as applied to the legislative body of a city, including records retention by a city.
- Relating to contracts by local public agencies or municipal corporations for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters, applies the same described provisions under “1),” above, but as applied to the legislative body of a local public agency or municipal corporation, including records retention of such entities, as prescribed.
- Defines the following terms for these purposes:
- “Deliverables” to mean the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.
- A plan is “insufficient” if service falls below the average rate of completion by workers of the affected bargaining unit.
- “Total compensation” to mean the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.
- A performance report is “underperforming” if the contractor fails to meet the expected delivery of services in a manner that would lead to an extension of the contract or at a rate below the agreed upon standards.
- Expressly states legislative findings and declarations that ensuring that the replacement of bargaining unity work with contracted employees does not undermine public employee relations is a matter of statewide concern, rather than a municipal affair. Therefore, the provisions of this proposed statute apply to all counties, cities, charter counties, and charter cities.
- Provides that the above-described provisions apply on or after January 1, 2025, and that the statute must apply prospectively and not be construed, applied, or otherwise interpreted to have any effect on or application to contracts entered into before that date.
- Includes a severability clause to shield otherwise valid provisions from becoming invalid in the event of a successful legal challenge to the statute.
EXISTING LAW:
- Authorizes a county BOS to contract for special services on behalf of the county, county officers or departments, or district courts in the county, and requires that the contract be with persons specially trained, experienced, and have expertise and competence to perform the special services, and establishes that special services consist of services, advice, education or training for financial, economic, accounting (including the preparation and issuance of payroll checks or warrants), engineering, legal, medical, therapeutic, administrative, architectural, airport or building security matters, laundry services, or linen services, and may include maintenance or custodial matters, as prescribed, among other provisions.[1]
- Authorizes the BOS to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, provided that the BOS determines that is in the county’s economic interest to provide temporary help, rather than employ individuals for that purposes, and limits temporary help to 90 days or less for any single peak load, temporary absence, or emergency situation.[2]
- Authorizes the legislative body of cities to contract with any specially trained and experienced person, firm or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.[3]
- Authorizes the legislative body of any public or municipal corporation to contract with, and employ any persons for district special services and advice in financial, economic, accounting, engineering, legal, or administrative matters if such persons are specially trained, experienced and competent to perform the special services required, among other provisions.[4]
- Authorizes the state, county free libraries, school districts, and community college districts, respectively, to enter into personal services contracts, and establishes the conditions that must be met when procuring such contracts.[5]
FISCAL EFFECT: Unknown. This bill is flagged as fiscal by Legislative Counsel.
COMMENTS:
- Dual Referral
The committee is informed that this bill also is referred to the Assembly Committee on Judiciary.
- Background: Need for the Bill
Information provided by the author states that, “[current] law allows local governments, such as cities and counties and special districts, to enter contracts with private firms and employers to provide services to residents that otherwise would have been provided by public workers. Public employers can contract out services ranging from substance abuse treatment to housing services” and “… [they] may choose to contract out to due to their failure to hire permanent public workers to fill vacancies or to access a workforce without providing benefits or meet public employee wage expectations.”
In addition, “[public] sector jobs were once considered the backbone of the middle class, but decades of low funding and government austerity measures have led to the decline of the stable union jobs that once sustained communities. In efforts to cut costs, governments contract out public work to the lowest bidder and an array of unaccountable service providers. Public services, including substance abuse treatment, foster youth care, and health services are increasingly contracted out to private entities that do not have to meet the same workforce and performance standards that public agencies do. Private contractors have a profit-motive that changes the way services are provided and to whom. Efforts to maximize profit can harm residents and communities that are the most in need but more expensive to serve. Additionally, private contractors may have workforces that are lower paid, less qualified, and with higher turnover than in the public sector, impacting the quality of services provided.
“Ultimately, local governments pay millions of taxpayer dollars to enter service contracts that not only decrease access to middle-class job opportunities, but also frequently lower the quality and accessibility of services to millions of Californians. Privatization, outsourcing, and contracting out of public goods, services, and assets essentially removes them from public, democratic control, placing them under private control by a corporation or other private entity. When public services are outsourced to private entities, taxpayers are denied the transparency and accountability measures that government entities must follow. Local governments, however, must adhere to strict transparency and open meeting requirements that allow for robust public input. Further outsourcing frequently leads to reduced service quality and the loss of stable middle-class jobs. With limited oversight, this practice has disproportionate implications on vulnerable communities who rely on local governments for critical services, including social, health, transportation, and public safety, among others.”
- Increasing Reliance by Public Employers on Contracting Out for Services
The committee is reminded of its informational hearing on May 10, 2023, titled “Strengthening California through the Public Sector and Its Workforce,” which focused on various subjects, including contracting out of public employee work.
During that hearing, the committee heard from a number of panelists, including experts from the University of California at Berkeley Labor Center, where data was provided and substantial concerns were expressed by other panelists about the ongoing and increasing reliance by public employers, including the state – as an employer, on a contingent, part-time, temporary, contracted out, or retired annuitant workforce to fill public sector vacancies, or to perform the duties of willing and capable existing and prospective public employees. These concerns also detailed how public employers are increasingly relying on these forms of employment and in a manner that has deleterious effects on wage growth, employee morale, employer-employee relations, and the need to ensure operational consistency and quality in the provision of services to the public that could be performed by permanent employees.
These concerns also detailed how public employers are increasingly relying on these forms of employment and in a manner that has deleterious effects on wage growth, employee morale, employer-employee relations, and the need to ensure operational consistency and quality in the provision of services to the public that could be performed by permanent employees.
Following the committee’s hearing last year, on April 17, 2024, the committee held another information relating to that subject titled: “Public Service Delivery and Workforce Wellbeing – Addressing the Vacancy Crisis in Local Government,” where civil service vacancies, impacts of vacancies on the civil service workforce and services, and collaborative solutions to address civil service vacancies, were discussed.
This bill represents one of those proposed solutions.
- This Bill
This bill does not foreclose local governments’ authority or ability to contract for special services and other services, as authorized under existing law. Rather, by establishing standards as prescribed, it ensures that the contracted services: (a) meet the specific need for such services, (b) meet the expectations of the contracting authority to provide needed services appropriately given the expenditure of taxpayer monies; and, (c) raise contract, performance, and employment standards borne by the local government contracting authority and vendor to be adhered to in the interests of public transparency, scrutiny, accountability, and ensuring public safety, health, and welfare.
- Conflict Notice: Information to the Author
The author is informed that the Office of Legislative Counsel has issued a conflict notice for this and Assembly Bill 2489 (Ward, 2024).
A conflict exists when two or more bills and/or constitutional amendments amend, add, repeal, or amend and renumber the same section, article, chapter, division, title, or heading. The enactment of these measures in their present form could give rise to a serious legal problem that may be avoided by appropriate amendments.
Although both bills may be intended to be cooperatively operative, to prevent this from occurring, the author is advised to address this matter with appropriate amendments in the future.
- Potential Material Typographical Errors: Deferral to the Assembly Committee on Judiciary
Although it is noted that the provisions of this bill are nearly identical as applied to counties, cities, and local public agencies and municipal corporations, respectively, it is also noted that in Section 37103 (i) of this bill, the word “county” is used relating to records ordinarily maintained pursuant to the CPRA. However, this section applies to the general powers of cities (within Title 4 of the Gov. Code – Government of Cities), not counties. In addition, the same and single word also is used in Section 53060 (i) with respect to local public agencies and municipal corporations in cities and counties.
To the extent that these may be material typographical errors, the author may wish to address these matters in consultation with the Assembly Committee on Judiciary which has jurisdiction regarding the CPRA, among other subjects.
- Statement by the Author
Among other things relating to a description of what this bill does, the author states that, “[this bill] ensures transparency and accountability when local governments outsource public jobs and contract with private entities for services. This allows better oversight over how taxpayer dollars are being spent and whether Californians are receiving the public services they pay for.”
- Comments by Supporters
Generally, supporters; namely, employee organizations, state that, historically, public sector work has been considered the backbone of the middle class; however, continuous decreases in funding and austerity measures have led to a decline of stable union jobs in the public sector workforce that sustain families and communities. The contracting of public employee work and jobs removes long-term career and quality of life opportunities for individuals who otherwise want to, or do, work in the public sector.
By contrast, they state, private workers are paid less and receive no, or less, benefits resulting in high turnover rates, and because private contractors are for-profit entities, they are driven by profit, which changes the way services are provided and to whom they are provided in a manner that can harm residents and communities that are most in need, but more expensive to serve. Further, to increase profit, contractors cut corners which results in lower-quality services, increased errors, and limited access that are not in the primary interests of the public.
Finally and generally, supporters state that this bill is necessary to examine whether contracts serve their intended purpose towards increased public transparency/scrutiny and accountability with taxpayer monies.
- Comments by Opponents
Generally, opponents; namely, local public agencies and others, generally express opposition to this bill for a number of reasons, including: (a) the notice requirements, including their lack of consideration as to emergencies or labor disputes regarding strikes that inhibit or prevent adaptability and situational contingency plans; (b) personally identifiable information being subject to CPRA disclosure and resources needs to maintain records for CPRA purposes; (c) contractor compliance, withholding payment from a contractor for specified reasons; (d) contractor compliance plans that involve including approval from an employee organization or its representative; thereby, placing unions in an equal decision-making manner as the local governing body; and, (e) quarterly performance reports, and an audit by an independent auditor to determine whether performance standards are met (the costs of which must be paid by the contractor), are all deterrents to nonprofit providers, community-based organizations, and other private providers from engaging with local agencies that will result in increased caseloads and workloads of existing staff, and costs.
Among other things, opponents also express that local public employer-employee relations laws cover contracting of bargaining unit work, and with ongoing state efforts to engage more community partners to effectively connect with vulnerable communities to meet state policy, program, and outcomes expectations that benefit the public, this bill sets up local public agencies to fail.
- Comments by Others
A number of nonprofit entities take exception with certain statements made by the author’s fact sheet regarding this bill, and express, generally, concerns regarding this bill relating to its inconsistent approach with current federal efforts to reduce unnecessary compliance costs, remove barriers to entry, ensure assistance serves intended communities, and increase transparency to strengthen nonprofit-government partnership.
In addition to providing examples of the services and positive outcomes of those services they provide in partnering with government, among other things, they express that because government and nonprofits are interdependent, and a successful partnership is critical to meeting Californian’s needs, they rely on government contracts to help achieve government policy, services, and program objectives. Because this bill imposes certain requirements, it could reinforce hiring inequities that also will create barriers for service recipients. In sum, and given these concerns, they want to work with the author and sponsors to find a cooperative path forward.
- Prior or Related Legislation
Assembly Bill 2561 (McKinnor, 2024) proposed to require a local public agency to take prescribed actions relating to vacant positions, among other provisions. This bill is currently pending in the Assembly Committee on Public Employment and Retirement.
Assembly Bill 2489 (Ward, 2024) proposes to make changes to existing law relating to contracts by local governments (i.e., counties, cities, local public agencies, and municipal corporations) for certain services by requiring the local governing body, as prescribed, to provide written notice to the exclusive representative of the workforce affected by the contract, among other provisions. This bill is currently pending in the Assembly Committee on Public Employment and Retirement.
Assembly Bill 1250 (Jones-Sawyer, 2017) proposed to establish specific standards for the use of personal service contracts by counties and cities, among other provisions. This bill was held by the Senate Committee on Rules.
Chapter 196, Statutes of 2013 (Assembly Bill 583, Gomez) requires the board of trustees, common council, or other legislative body of a city or the board of trustees of a library district in which a withdrawal from the county free library system becomes effective on or after January 1, 2012 to comply with specified requirements before entering into a contract to operate the city’s or the district’s libraries with a private contractor that will employ library staff to achieve cost savings, among other provisions.
Chapter 611, Statutes of 2011 (Assembly Bill 438, Williams) imposed specified requirements, until January 1, 2019, on a city or library district that intends to withdraw from a county free library system and operate libraries with a private contractor that will employ library staff to achieve cost savings.
Senate Bill 906 (Alarcon, 2003) proposed to establish standards for the use of personal service contracts by local government, similar to those of state government and school districts, for work currently or customarily performed by civil service employees. This bill failed passage by the Assembly.
Chapter 894, Statutes of 2002 (Senate Bill 1419, Alarcon) establishes standards for the use of personal service contracts in school and community college districts.
REGISTERED SUPPORT / OPPOSITION:
Support
American Federation of state, County and Municipal Employees, AFL-CIO (Co-sponsor)
California Labor Federation, AFL-CIO (Co-sponsor)
California State Council of the Service Employees International Union (Co-sponsor)
California Teachers Association
Coalition of California Welfare Rights Organizations
Orange County Employees Association
SMART - Transportation Division
Opposition
Association of California Healthcare Districts
California Chamber of Commerce
California Association of Recreation and Park Districts
California Association of Sanitation Agencies
California Special Districts Association
California State Association of Counties
California State Park Rangers Association
County Behavioral Health Districts Association
County Health Executives Association of California
County Welfare Directors Association of California
League of California Cities
Rural County Representatives of California
Urban Counties of California
Concerns
California Association of Nonprofits
California Council of Community Behavioral Health Agencies
California Releaf
Center for Nonprofit Management
CocoKids
Community Water Center
Inland Empire Community Collaborative
Koreatown Youth + Community Center
Nonprofit Finance Fund
PATH
Santa Cruz Volunteer Center
TreePeople
United Ways of California
Analysis Prepared by: Michael Bolden / P. E. & R. / (916) 319-3957
Section 31000 of the Government (Gov.) Code. ↑
Section 31000.4 of the Gov. Code. ↑
Section 37103 of the Gov. Code. ↑
Section 53060 of the Gov. Code. ↑
Sections 19130 et seq. of the Gov. Code. relating to the state, and Sections 19104.5 et seq., 45103.1 et seq., and 88003.1 et seq. of the Education Code related to county free libraries, school districts, and community college districts, respectively. ↑
Discussed in Hearing
3MIN
Senate Standing Committee on Appropriations
26MIN
Senate Standing Committee on Labor, Public Employment and Retirement
33MIN
Senate Standing Committee on Local Government
2MIN
Assembly Floor
15MIN
Assembly Standing Committee on Judiciary
25MIN
Assembly Standing Committee on Public Employment and Retirement
Bill Author
Bill Co-Author(s):