BILL NUMBER: SB 682	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 5, 2015

INTRODUCED BY   Senator Leno

                        FEBRUARY 27, 2015

   An act to add Section 71621 to the Government Code, relating to
courts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 682, as amended, Leno. Courts.
   The Trial Court Employment Protection and Governance Act
establishes a trial court employee personnel system that provides
authority to hire trial court personnel, regulates the classification
and compensation of trial court employees, labor relations, and
personnel files, and requires each trial court to establish a system
of employment selection and advancement and an employment protection
system.
   Existing law authorizes state agencies to use personal services
contracts to achieve cost savings if specified standards are
satisfied, including, among other things, the contract does not cause
the displacement of civil service employees and the contract is
awarded through a publicized, competitive bidding process. The State
Personnel Board is required to review a proposed contract upon the
request of an employee organization for compliance with those
standards.
   This bill would establish specified standards if a trial court
intends to enter  into, or renew or extend,  
into a contract for any services that are currently or
customarily performed by that trial court's employees. Among other
things, the bill would require the trial court to clearly demonstrate
that the contract will result in actual overall cost savings to the
trial court. The bill would provide that those standards do not apply
to a contract under certain circumstances, including, among others,
when the services are incidental to a contract for the purchase or
lease of real or personal property.
   This bill would require a trial court to provide a report by
February 1, 2016, to the Department of Finance, the 
chairperson   Chairperson  of the Joint Legislative
Budget Committee, and the  chairpersons  
Chairpersons  of the Senate Committee on Judiciary and the
Assembly Committee on Judiciary if the trial court entered into, or
renewed or extended, a contract between July 1, 2015, and December
31, 2015,  inclusive,  for services that were provided or
are customarily provided by its trial court employees and the
contract has a term extending beyond March 31, 2016. The bill would
require that report to provide specified information relating to
these contracts, including an analysis of whether the contract
resulted in the displacement of trial court employees.
   This bill would provide that its provisions are severable.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 71621 is added to the Government Code, to read:

   71621.  The purpose of this section is to establish standards for
when a trial court intends to enter  into, or renew or
extend,   into  a contract for any services that
are currently or have been customarily performed by that trial court'
s employees.
   (a) Contracts for services that are currently or customarily
performed by trial court employees are permissible in a trial court
when all of the following conditions are met:
   (1) The trial court clearly demonstrates that the contract will
result in actual overall cost savings to the trial court, provided
that:
   (A) In comparing costs, there shall be included the trial court's
additional costs of providing the same service as proposed by a
contractor. These additional costs shall include the salaries and
benefits of additional staff that would be needed and the costs of
additional space, equipment, and materials needed to perform the
function.
   (B) In comparing costs, there shall not be included the trial
court's indirect overhead costs unless these costs can be attributed
solely to the function in question and would not exist if that
function was not performed by the trial court. Indirect overhead
costs shall mean the pro rata share of existing administrative
salaries and benefits, rent, equipment costs, utilities, and
materials.
   (C) In comparing costs, there shall be included in the costs of a
contractor providing a service any continuing trial court costs that
would be directly associated with the contracted function. These
continuing trial court costs shall include, but not be limited to,
those for inspection, supervision, and monitoring.
   (2) Proposals to contract out work shall not be approved solely on
the basis that savings will result from lower contractor pay rates
or benefits. Contracts shall be eligible for approval if the
contractor's wages are at the industry's level and do not 
significantly  undercut trial court pay rates.
   (3) The contract does not cause the displacement of trial court
employees. The term "displacement" includes layoff, demotion, loss of
employment or employment seniority, involuntary transfer to a new
class, involuntary transfer to a new location requiring a change of
residence, and time base reductions. Displacement does not include
changes in shifts or days off, nor does it include reassignment to
other positions within the same class and general location.
   (4) The savings shall be large enough to ensure that they will not
be eliminated by private sector and trial court fluctuations that
could normally be expected during the contracting period.
   (5) The amount of savings clearly justify the size and duration of
the contracting agreement.
   (6) The contract is awarded through a publicized, competitive
bidding process.
   (7) The contract includes specific provisions pertaining to the
qualifications of the staff that will perform the work under the
contract, as well as assurance that the contractor's hiring practices
meet applicable nondiscrimination standards.
   (8) The potential for future economic risk to the trial court from
potential contractor rate increases is minimal.
   (9) The contract is with a firm. A "firm" means a corporation,
partnership, nonprofit organization, or sole proprietorship.
   (10) The potential economic advantage of contracting out is not
outweighed by the public's interest in having a particular function
performed directly by the trial court.
   (b) This section does not preclude a trial court or the Judicial
Council from adopting more restrictive rules regarding the
contracting of court services.
   (c) Contracting shall also be permissible when any of the
following conditions can be met:
   (1) The contract is for a new trial court function and the
Legislature has specifically mandated or authorized the performance
of the work by independent contractors.
   (2) The contract is between a trial court and another trial court
or local government entity for services to be performed by employees
of the other trial court or employees of the local government entity.

   (3) The services contracted for cannot be satisfactorily performed
by trial court employees, or are of such a highly specialized or
technical nature that the necessary expert knowledge, experience, and
ability cannot be obtained from the court's trial court employees.
   (4) The services are incidental to a contract for the purchase or
lease of real or personal property. Contracts described in this
paragraph, known as "service agreements," shall include, but not be
limited to, agreements to service or maintain office equipment or
computers that are leased or rented. Service agreements do not
include contracts to operate equipment or computers for purposes
other than service or maintenance.
   (5) The legislative, administrative, or legal goals and purposes
cannot be accomplished through the utilization of trial court
employees because of the need to protect against a conflict of
interest or to ensure independent and unbiased findings in cases
where there is a clear need for an independent, outside perspective.
   (6) Due to an emergency, a contract is necessary for the immediate
preservation of the public health, welfare, or safety.
   (7) The contractor will conduct training courses for which
appropriately qualified trial court employee instructors are not
available from the court, provided that permanent instructor
positions shall be filled through the process for hiring trial court
employees. 
   (8) The contractor will provide equipment, materials, facilities,
or support services that could not feasibly be provided by the trial
court in the location where the services are to be performed. This
paragraph shall not apply to services contracted in order to open
closed courthouses if those services were performed by trial court
employees before the closure or for the ongoing operation of new or
reopened courthouses.  
   (8) 
    (9)  The services are of such an urgent, temporary, or
occasional nature that the delay incumbent in their implementation
through the process for hiring trial court employees would frustrate
their very purpose. This paragraph shall not apply to the services of
official court reporters, except individual official reporters pro
tempore may be used by a trial court when the criteria of this
paragraph are met. 
   (9) 
    (10)  The contract is a personal services contract
developed pursuant to rehabilitation programs in accordance with
Sections 19403 and 19404 of the Welfare and Institutions Code,
pursuant to habilitation programs in accordance with Chapter 13
(commencing with Section 4850) of Division 4.5 of the Welfare and
Institutions Code, or pursuant to a program vendored or contracted
through a regional center or the State Department of Developmental
Services in accordance with the Lanterman Developmental Disabilities
Services Act (Division 4.5 (commencing with Section 4500) of the
Welfare and Institutions Code), and the contract will not cause an
existing trial court employee to incur a loss of his or her
employment or employment seniority; a reduction in wages, benefits,
or hours; or an involuntary transfer to a new location requiring a
change in residence. 
   (10) 
    (11)  The contract is for the services of any court
interpreter. Contracts for the services of any court interpreter, and
restrictions on contracting out interpreter services, shall be
governed by the Trial Court Interpreter Employment and Labor
Relations Act (Chapter 7.5 (commencing with Section 71800)) and any
memorandum of understanding or agreement entered into pursuant to
that act, or by the other provisions of this chapter, the Trial Court
Employment Protection and Governance Act, and any memorandum of
understanding or agreement entered into pursuant to that act, as
applicable.
  SEC. 2.  If a trial court entered into, or renewed or extended, a
contract between July 1, 2015, and December 31, 2015, inclusive, for
services that were provided or are customarily provided by its trial
court employees and that contract has a term extending beyond March
31, 2016, the trial court shall provide a report by no later than
February 1, 2016, to the Department of Finance, Chairperson of the
Joint Legislative Budget Committee and the Chairpersons of the Senate
Committee on Judiciary and Assembly Committee on Judiciary. The
report shall provide all of the following:
   (a) A copy of the contract.
   (b) An analysis of whether the contract is permissible under the
standards set forth in Section 71621 of the Government Code, as added
by Section 1 of this act.
   (c) An analysis of whether the contract resulted in the
displacement of trial court employees.
   (d) An analysis of whether the contract involves the use of
contractors to perform the type of services that were customarily
performed by trial court employees.
  SEC. 3.  The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.