AB 1250 will result in better services.
AB 1250 will result in a depletion or even elimination of vital services, particularly those for the underserved. Counties need the ability to enter into contracts so they can provide critical services.
AB 1250 will not impact contracts that counties currently have for services.
AB 1250 does impact current contracts. Any contract that is renewed or extended after January 1, 2018, is subject to a performance audit annually to provide a cost benefit analysis. The contract cannot be renewed or extended until the audit is completed and reviewed.
AB 1250 does not prevent or prohibit contracting for services.
Proponents of AB 1250 have intentionally put significant new restrictions on contracting and added a host of bureaucratic requirements that would prohibit local contracting. For instance, AB 1250:
- Requires the county to clearly demonstrate that the proposed contract will result in actual overall cost savings to the county for the duration of the entire contract as compared with the county’s actual costs of providing the same services.
- Prohibits contracts from being approved solely on the basis that savings will result from lower contractor pay rates or benefits, regardless of whether the contractor can do the same or better service at lower rates.
- Requires contractors to disclose the total compensation provided to certain officers, directors, executives or employees, raising significant privacy concerns
- AB 1250 requires contractors to disclose extensive information on a monthly basis including: the names of subcontractors; the names and hourly rates of the employees of the contractor and any subcontractors; the names of any workers providing services pursuant to the contract as independent contractors and the compensation rates for those workers; directors; executives; or employees of a company – again, raising privacy concerns.
- Requires an audit of all contractors, including nonprofits and private businesses, makes the contractor pay for the audit, but prohibits the contractor from factoring the costs of the audit into the contract costs with the county
- AB 1250’s ambiguous terms, such as ‘currently of customarily’ create a litigation risk to counties from any party that is dissatisfied with a contract. Even the included exemptions could create litigation if there is any question as to whether it applies in a particular circumstance.
AB 1250 is a narrowly crafted bill.
AB 1250 affected contracts include health care, social services, mental health and public safety services. Impacted area examples include:
- Safe havens and counseling for children who are victims of sex trafficking
- Counseling and support for victims of domestic violence
- Medical care and case management for children with special health care needs
- 9-1-1 and emergency dispatch
- Sober living and rehabilitation services whether it applies in a particular circumstance.
- Homeless outreach and case management emergency shelters, warming and cooling shelters
- Foster care and adoption services
- Behavioral health services
- Cultural competency services
- HIV counselors and outreach
- Timely emergency and disaster response
- Animal care services
- Medical care at county safety-net hospitals and clinics
- Job-training and employment support for the unemployed
- Immigration legal support services
- Health care, job training and rehabilitation for county inmates and probation
- Private ambulance services
AB 1250 is about transparency.
AB 1250 raises huge privacy issues by requiring contractors to disclose the total compensation provided to certain officers, directors, executives or employees. This represents a major concern for the privacy of private employees, especially those who work in the public safety and technology fields.
AB 1250 does not impact SB 1 transportation projects.
AB 1250 does impact SB 1 transportation projects. Transportation projects will be impacted and possibly delayed. There is a broad exemption for “public works” but this fails to consider other demands for contracted services related to SB 1 transportation projects. For example, private land acquisition of right-of-ways often relies on contracted consultants and appraisers.
AB 1250 does not impact public works and environmental services.
There is general exemption for “environmental services” when it is in connection to project development or permit processing. However, this exemption does not broadly cover all types of environmental review work or the breadth of activities that are often included in environmental consultant contracts. It also does not contemplate other environmental impact report (EIR) consulting needs, such as for general plan updates.
AB 1250 does not impact emergency services.