Bill > AB566

This bill establishes new requirements for trial courts in California when they intend to contract out for services that are currently or customarily performed by their own employees. The core provisions mandate that any such contract must demonstrate actual overall cost savings compared to the court's internal costs, considering all associated expenses like additional staff, space, and equipment, while excluding certain indirect overhead costs. Contracts cannot be approved solely based on lower contractor pay rates, and they must not result in job losses, reduced wages, benefits, or involuntary transfers for existing employees. Furthermore, contracts must be awarded through a publicized, competitive bidding process, include specific staff qualifications and non-discrimination assurances, and allow for termination without penalty for material breaches. For contracts exceeding $100,000 annually, contractors must disclose past legal and administrative complaints, and the contract must include measurable performance standards and audits to verify cost savings and compliance. The bill also outlines several exceptions, such as contracts with other government entities, for highly specialized services, or in emergency situations, and it will remain in effect until January 1, 2020.