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De Facto Prohibition on Contracting Measure to be heard in Assembly Appropriations on May 10

May 9, 2017
AB 1250 (Jones-Sawyer) is a gut-and-amend bill that greatly restricts cities and counties’ ability to enter into contracts for essential services.
 
Opposed by the League, this measure will be heard Wednesday in the Assembly Appropriations Committee. Given the significant costs this could potentially generate as a state reimbursable mandate, the measure will likely move to the Assembly suspense file. Either it will sit for approximately two weeks and will be held on that suspense file, or it will move to the Assembly floor. Cities are encouraged to oppose this costly measure.

Each year the Appropriations committees set a threshold for the cost to implement legislation that determines whether a bill goes to suspense or directly to the floor for a vote. AB 1250 is expected to meet this threshold for suspense.
 
Background
 
Retaining maximum flexibility in contracting for services allows cities to spend limited General Fund dollars in the most efficient and financially responsible manner. Under this measure, small and medium sized cities are forced to meet a standard for contracting services that is unattainable and could invite litigation at every turn.
 
Among some of the most burdensome provisions of the measure (as amended on April 25), AB 1250 to require:
  • A city to complete full cost-benefit and environmental impact analyses prior to entering into, or renewing a contract;
  • An annual performance audit of each contract;
  • A fully searchable database that must be posted on the city's website, which must include full name and salary of each contracted employee; the total projected cost; and other provisions; and
  • Non-city employees receive an orientation, adding potentially significant cost and logistical concerns. 
Taken together, these requirements create a de facto ban on contracting services, which is why the League and over 100 cities and organizations are opposed to the measure.
 
Next Steps
 
If your city has a member on the Assembly Appropriations Committee please call and ask them to vote NO on AB 1250 and send in your city letter of opposition as soon as possible. An updated sample oppose letter is available on the League’s Action Center.
 
For more questions regarding this measure, please contact Dane Hutchings or your League regional public affairs manager.


 
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