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AB-2557 Local agencies: contracts for special services and temporary help: performance reports.(2023-2024)

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Date Published: 07/03/2024 09:00 PM
AB2557:v92#DOCUMENT

Amended  IN  Senate  July 03, 2024
Amended  IN  Senate  June 17, 2024
Amended  IN  Senate  June 05, 2024
Amended  IN  Assembly  May 16, 2024
Amended  IN  Assembly  April 25, 2024
Amended  IN  Assembly  April 08, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2557

Introduced by Assembly Member Ortega

February 14, 2024

An act to add Sections 31000.01, 31000.4.5, 37103.1, and 53060.01 to the Government Code, relating to local agencies.


LEGISLATIVE COUNSEL'S DIGEST


AB 2557, as amended, Ortega. Local agencies: contracts for special services and temporary help: performance reports.
(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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.

 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 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.
(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 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 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 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 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 contractor’s and subcontractor’s employees associated with 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.
(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.