SECTIONS 19130-19134

19130.  The purpose of this article is to establish standards forthe use of personal services contracts. (a) Personal services contracting is permissible to achieve costsavings when all the following conditions are met: (1) The contracting agency clearly demonstrates that the proposedcontract will result in actual overall cost savings to the state,provided that: (A) In comparing costs, there shall be included the state'sadditional cost of providing the same service as proposed by acontractor. These additional costs shall include the salaries andbenefits of additional staff that would be needed and the cost ofadditional space, equipment, and materials needed to perform thefunction. (B) In comparing costs, there shall not be included the state'sindirect overhead costs unless these costs can be attributed solelyto the function in question and would not exist if that function wasnot performed in state service. Indirect overhead costs shall meanthe 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 cost of acontractor providing a service any continuing state costs that wouldbe directly associated with the contracted function. These continuingstate costs shall include, but not be limited to, those forinspection, supervision, and monitoring. (2) Proposals to contract out work shall not be approved solely onthe basis that savings will result from lower contractor pay ratesor benefits. Proposals to contract out work shall be eligible forapproval if the contractor's wages are at the industry's level and donot significantly undercut state pay rates. (3) The contract does not cause the displacement of civil serviceemployees. The term "displacement" includes layoff, demotion,involuntary transfer to a new class, involuntary transfer to a newlocation requiring a change of residence, and time base reductions.Displacement does not include changes in shifts or days off, nor doesit include reassignment to other positions within the same class andgeneral location. (4) The contract does not adversely affect the state's affirmativeaction efforts. (5) The savings shall be large enough to ensure that they will notbe eliminated by private sector and state cost fluctuations thatcould normally be expected during the contracting period. (6) The amount of savings clearly justify the size and duration ofthe contracting agreement. (7) The contract is awarded through a publicized, competitivebidding process. (8) The contract includes specific provisions pertaining to thequalifications of the staff that will perform the work under thecontract, as well as assurance that the contractor's hiring practicesmeet applicable nondiscrimination, affirmative action standards. (9) The potential for future economic risk to the state frompotential contractor rate increases is minimal. (10) The contract is with a firm. A "firm" means a corporation,partnership, nonprofit organization, or sole proprietorship. (11) The potential economic advantage of contracting is notoutweighed by the public's interest in having a particular functionperformed directly by state government. (b) Personal services contracting also shall be permissible whenany of the following conditions can be met: (1) The functions contracted are exempted from civil service bySection 4 of Article VII of the California Constitution, whichdescribes exempt appointments. (2) The contract is for a new state function and the Legislaturehas specifically mandated or authorized the performance of the workby independent contractors. (3) The services contracted are not available within civilservice, cannot be performed satisfactorily by civil serviceemployees, or are of such a highly specialized or technical naturethat the necessary expert knowledge, experience, and ability are notavailable through the civil service system. (4) The services are incidental to a contract for the purchase orlease of real or personal property. Contracts under this criterion,known as "service agreements," shall include, but not be limited to,agreements to service or maintain office equipment or computers thatare leased or rented. (5) The legislative, administrative, or legal goals and purposescannot be accomplished through the utilization of persons selectedpursuant to the regular civil service system. Contracts arepermissible under this criterion to protect against a conflict ofinterest or to insure independent and unbiased findings in caseswhere there is a clear need for a different, outside perspective.These contracts shall include, but not be limited to, obtainingexpert witnesses in litigation. (6) The nature of the work is such that the Government Codestandards for emergency appointments apply. These contracts shallconform with Article 8 (commencing with Section 19888) of Chapter 2.5of Part 2.6. (7) State agencies need private counsel because a conflict ofinterest on the part of the Attorney General's office prevents itfrom representing the agency without compromising its position. Thesecontracts shall require the written consent of the Attorney General,pursuant to Section 11040. (8) The contractor will provide equipment, materials, facilities,or support services that could not feasibly be provided by the statein the location where the services are to be performed. (9) The contractor will conduct training courses for whichappropriately qualified civil service instructors are not available,provided that permanent instructor positions in academies or similarsettings shall be filled through civil service appointment. (10) The services are of such an urgent, temporary, or occasionalnature that the delay incumbent in their implementation under civilservice would frustrate their very purpose. (c) All persons who provide services to the state under conditionsthe board determines constitute an employment relationship shall,unless exempted from civil service by Section 4 of Article VII of theCalifornia Constitution, be retained under an appropriate civilservice appointment.19131.  Any state agency proposing to execute a contract pursuant tosubdivision (a) of Section 19130 shall notify the State PersonnelBoard of its intention. All organizations that represent stateemployees who perform the type of work to be contracted, and anyperson or organization which has filed with the board a request fornotice, shall be contacted immediately by the State Personnel Boardupon receipt of this notice so that they may be given a reasonableopportunity to comment on the proposed contract. Departments oragencies submitting proposed contracts shall retain and provide alldata and other information relevant to the contracts and necessaryfor a specific application of the standards set forth in subdivision(a) of Section 19130. Any employee organization may request, within10 days of notification, the State Personnel Board to review anycontract proposed or executed pursuant to subdivision (a) of Section19130. The review shall be conducted in accordance with subdivision(b) of Section 10337 of the Public Contract Code. Upon such arequest, the State Personnel Board shall review the contract forcompliance with the standards specified in subdivision (a) of Section19130.19132.  The State Personnel Board, at the request of an employeeorganization that represents state employees, shall review theadequacy of any proposed or executed contract which is of a typeenumerated in subdivision (b) of Section 19130. The review shall beconducted in accordance with subdivision (c) of Section 10337 of thePublic Contract Code. However, a contract that was reviewed at therequest of an employee organization when it was proposed need not bereviewed again after its execution.19133.  (a) Any state agency may enter into an agreement with anypublic or private institution of higher education in California,nonprofit campus foundation, or state higher education foundation toprovide part-time employment to students attending a public orprivate institution of higher education that contracts with the stateagency, or to students attending a public or private institutionwhich is affiliated with a nonprofit campus foundation, or a statehigher education foundation, that contracts with a state agency, inwork related to the field of study of the student. (b) Notwithstanding any other provision of law to the contrary, nostudent employed pursuant to this section shall do any of thefollowing: (1) Accrue state civil service status. (2) Be employed for more than 194 days in the 365 days followingthe initial date of employment. (3) Cause the displacement of civil service employees. (c) "Displacement," for the purposes of this section, includeslayoffs, demotions, involuntary transfers to a new class, involuntarytransfers to a new location requiring a change of residence, andtime-based reductions. "Displacement," for the purposes of thissection, shall not include changes in shifts or days off nor shall itinclude reassignment to other positions within the same class andgeneral location.19134.  (a) Personal services contracts entered into by a stateagency in accordance with Section 19130 for persons providingjanitorial and housekeeping services, custodians, food serviceworkers, laundry workers, window cleaners, and security guardservices shall include provisions for employee wages and benefitsthat are valued at least 85 percent of the state employer cost ofwages and benefits provided to state employees for performing similarduties. (b) For purposes of this section, "benefits" includes "health,dental, retirement, and vision benefits, and holiday, sick, andvacation pay." (c) (1) The Department of Personnel Administration shall establishannually the state employer wage and benefit costs for workerscovered pursuant to this section. (2) Benefit costs shall be established using rates based on singleemployee, employee plus one dependent, and employee plus two or moredependents, or the costs may be based on a blended rate, subject tothe determination of the Department of Personnel Administration. (d) In lieu of providing actual benefits, contractors may complywith this section by a cash payment to employees equal to theapplicable determination under subdivision (c). (e) Failure to provide benefits or cash-in-lieu to employees asrequired under this section shall be deemed to be a material breachfor any contract for personal services covered by this section. (f) The Department of General Services and the Department ofPersonnel Administration may adopt guidelines and regulations toimplement the requirements of this section. (g) This section applies to all contracts exceeding 90 days. (h) Holiday pay shall be provided to employees of contractorsproviding services specified in subdivision (a) on any state holidaythat the state facility in which the services are being provided isclosed. (i) This section also applies to wages and benefits of employeesof subcontractors providing services specified in subdivision (a) instate-leased facilities where the facility is at least 50,000 squarefeet in area and the state leases all of the occupied floorspace ofthe facility. (j) With the exception of subdivision (h), this section does notapply to personal services contracts for the services described insubdivision (a) performed by employees of nonprofit organizationsthat are employed in accordance with any of the following: (1) A special license issued pursuant to Section 1191.5 of theLabor Code. (2) A special certificate issued pursuant to Section 214 of Title29 of the United States Code. (3) A community rehabilitation plan described in Sections 19152and 19404 of the Welfare and Institutions Code. (4) A habilitation services program as described in Sections 19352and 19356.6 of the Welfare and Institutions Code.