Bill Text: CA AB1574 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Personal services contracts: prohibitions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2014-09-30 - Vetoed by Governor. [AB1574 Detail]

Download: California-2013-AB1574-Introduced.html

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BILL NUMBER: AB 1574	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Pan

                        JANUARY 30, 2014

   An act to add Section 10354 to the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1574, as introduced, Pan. Service contracts: payment
guarantees.
   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
contract with specified provisions, including a contract that
guarantees payment for services not provided.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 10354 is added to the Public Contract Code, to
read:
   10354.  (a) A state agency shall not enter into a contract that
guarantees payment for services not provided. A contract for the
acquisition of goods and services shall not unduly restrict a state
agency from taking actions in the public interest and shall not
unfairly place the burden of risk on taxpayers.
   (b) A contract for services 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.