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AB-1574 Personal services contracts: prohibitions.(2013-2014)

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Enrolled  August 22, 2014
Passed  IN  Senate  August 18, 2014
Passed  IN  Assembly  August 20, 2014
Amended  IN  Senate  May 05, 2014


Assembly Bill
No. 1574

Introduced by Assembly Member Pan

January 30, 2014

An act to add Section 19138 to the Government Code, relating to personal services contracts.


AB 1574, Pan. Personal services contracts: prohibitions.
The California Constitution establishes that the civil service includes every officer and employee of the state, except as otherwise provided in the California Constitution, and requires civil service appointment to be made under a general system based on merit ascertained by competitive examination.
The State Civil Service Act establishes standards for the use of personal services contracts by state agencies and authorizes personal services contracts when prescribed conditions are met.
Existing law imposes various requirements with respect to contracts, including amendments, entered into by any state agency for services to be rendered to the state, whether or not the services involve the furnishing or use of equipment, materials, or supplies, or are performed by an independent contractor.
This bill would prohibit a state agency from entering into a personal services contract with specified provisions, including a contract that guarantees payment for services not provided.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


 Section 19138 is added to the Government Code, to read:

 (a) A state agency shall not enter into a personal services contract that guarantees payment for services not provided. A personal services contract for the acquisition of goods and services shall not unduly restrict a state agency from taking actions in the public interest.
(b) A personal services contract shall not do any of the following:
(1) Provide for guaranteed occupancy rates for private prisons, dormitories, or any other contracted facility.
(2) Prohibit a state agency from maintaining, improving, or building public infrastructure.
(3) Penalize a state agency if a contractor loses revenue as a result of natural or man-made emergencies, including acts of terrorism or acts of nature.
(4) Allow for an increase in fees or charges without approval by the state agency.
(5) Allow for an increase in fees or charges to be made in a nonpublic manner.