California 2023 2023-2024 Regular Session

California Assembly Bill AB2557 Amended / Bill

Filed 05/16/2024

                    Amended IN  Assembly  May 16, 2024 Amended IN  Assembly  April 25, 2024 Amended IN  Assembly  April 08, 2024 Amended IN  Assembly  March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2557Introduced by Assembly Member OrtegaFebruary 14, 2024An act to add Sections 31000.01, 31000.4.5, 37103.1, and 53060.01 to the Government Code, relating to local agencies. LEGISLATIVE COUNSEL'S DIGESTAB 2557, as amended, Ortega. Local agencies: contracts for special services and temporary help: performance reports.(1) Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit quarterly semiannual performance reports, as prescribed, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly semiannual performance reports to evaluate the quality of services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.(2) Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.(3) Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.(4) Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.(6) By imposing new duties on local government agencies, the bill would create a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 31000.01 is added to the Government Code, immediately following Section 31000. 31000, to read:31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 2. Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4. 31000.4, to read:31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 3. Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 4. Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

 Amended IN  Assembly  May 16, 2024 Amended IN  Assembly  April 25, 2024 Amended IN  Assembly  April 08, 2024 Amended IN  Assembly  March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2557Introduced by Assembly Member OrtegaFebruary 14, 2024An act to add Sections 31000.01, 31000.4.5, 37103.1, and 53060.01 to the Government Code, relating to local agencies. LEGISLATIVE COUNSEL'S DIGESTAB 2557, as amended, Ortega. Local agencies: contracts for special services and temporary help: performance reports.(1) Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit quarterly semiannual performance reports, as prescribed, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly semiannual performance reports to evaluate the quality of services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.(2) Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.(3) Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.(4) Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.(6) By imposing new duties on local government agencies, the bill would create a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Amended IN  Assembly  May 16, 2024 Amended IN  Assembly  April 25, 2024 Amended IN  Assembly  April 08, 2024 Amended IN  Assembly  March 21, 2024

Amended IN  Assembly  May 16, 2024
Amended IN  Assembly  April 25, 2024
Amended IN  Assembly  April 08, 2024
Amended IN  Assembly  March 21, 2024

 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION

 Assembly Bill 

No. 2557

Introduced by Assembly Member OrtegaFebruary 14, 2024

Introduced by Assembly Member Ortega
February 14, 2024

An act to add Sections 31000.01, 31000.4.5, 37103.1, and 53060.01 to the Government Code, relating to local agencies. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2557, as amended, Ortega. Local agencies: contracts for special services and temporary help: performance reports.

(1) Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit quarterly semiannual performance reports, as prescribed, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly semiannual performance reports to evaluate the quality of services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.(2) Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.(3) Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.(4) Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.(6) By imposing new duties on local government agencies, the bill would create a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(1) Existing law relating to the government of counties authorizes a county board of supervisors to contract for certain types of special services on behalf of the county, any county officer or department, or any district or court in the county. Existing law requires those special services contracts to be with persons who are specially trained, experienced, expert, and competent to perform those services.

This bill would require each person who enters into a specified contract for special services with the board of supervisors to submit quarterly semiannual performance reports, as prescribed, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization. The bill would require the board or its representative to monitor quarterly semiannual performance reports to evaluate the quality of services. The bill would require contract terms exceeding 2 years to undergo a performance audit, as prescribed, by an independent auditor approved by the board to determine whether the performance standards are being met.

(2) Existing law authorizes a county board of supervisors to contract with temporary help firms for temporary help to assist county agencies, departments, or offices during any peak load, temporary absence, or emergency other than a labor dispute, if the board determines that it is in the economic interest of the county to do so. Existing law limits the use of temporary help to no more than 90 days for any single peak load, temporary absence, or emergency situation.

This bill would impose requirements similar to those described in paragraph (1) for specified board contracts for temporary help, with reports and monitoring on a monthly basis.

(3) Existing law relating to the government of cities authorizes the legislative body of a city to contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters.

This bill would impose requirements similar to those described in paragraph (1) for specified city council contracts for special services.

(4) Existing law authorizes the legislative body of a public or municipal corporation or district to contract with persons performing special services in regard to financial, economic, accounting, engineering, legal, and administrative matters if those persons are specially trained and experienced and competent to perform the special services required.

This bill would impose requirements similar to those described in paragraph (1) for specified legislative body contracts for special services.

(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all counties and cities, including charter counties and charter cities.

(6) By imposing new duties on local government agencies, the bill would create a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 31000.01 is added to the Government Code, immediately following Section 31000. 31000, to read:31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 2. Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4. 31000.4, to read:31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 3. Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 4. Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 31000.01 is added to the Government Code, immediately following Section 31000. 31000, to read:31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SECTION 1. Section 31000.01 is added to the Government Code, immediately following Section 31000. 31000, to read:

### SECTION 1.

31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.



31000.01. (a) Each person who enters into a contract with the board of supervisors pursuant to Section 31000 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the county represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the board of supervisors and the exclusive representative of the employee organization.

(b) The quarterly semiannual performance reports shall include all of the following:

(1) A list of all contract objectives that describe the goals of the contract.

(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.

(3) A description of the contractors progress towards contract objectives identified in paragraph (1).

(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.

(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.

(6) (A) The names of any subcontractors providing services under the contract and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.

(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.

(C) The names of any workers providing services pursuant to the contract as independent contractors.

(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.

(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.

(c) The board of supervisors or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. 

(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.

(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the board of supervisors, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the board of supervisors. The board shall not renew or extend a contract before receiving and evaluating the audit report.

(f) The contractor shall reimburse the board of supervisors for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the board of supervisors.

(g) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.

(h) For purposes of this section, the following definitions apply:

(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. 

(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. 

(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.

(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 2. Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4. 31000.4, to read:31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 2. Section 31000.4.5 is added to the Government Code, immediately following Section 31000.4. 31000.4, to read:

### SEC. 2.

31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.(b) The monthly performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. (d) The monthly performance reports shall not be required for contracts between governmental entities.(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(f) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.



31000.4.5. (a) Each person who enters into a contract exceeding 60 days with the board of supervisors pursuant to Section 31000.4 to perform functions that are currently, or were in the prior 10 five years, performed by employees represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit monthly performance reports, every 30 days, to the funding agency and the exclusive representative of the employee organization.

(b) The monthly performance reports shall include all of the following:

(1) A list of all contract objectives that describe the goals of the contract.

(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.

(3) A description of the contractors progress towards contract objectives identified in paragraph (1).

(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.

(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.

(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.

(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.

(C) The names of any workers providing services pursuant to the contract as independent contractors.

(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.

(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.

(c) The board of supervisors or its representative shall monitor monthly performance reports to evaluate the quality of services. 

(d) The monthly performance reports shall not be required for contracts between governmental entities.

(e) The contract shall provide that all records provided to the county by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.

(f) For purposes of this section, the following definitions apply:

(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. 

(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.

(g) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(h) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all counties, including charter counties.

(i) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 3. Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 3. Section 37103.1 is added to the Government Code, immediately following Section 37103, to read:

### SEC. 3.

37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.



37103.1. (a) Each person who enters into a contract with the legislative body pursuant to Section 37103 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the city represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.

(b) The quarterly semiannual performance reports shall include all of the following:

(1) A list of all contract objectives that describe the goals of the contract.

(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.

(3) A description of the contractors progress towards contract objectives identified in paragraph (1).

(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.

(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.

(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.

(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.

(C) The names of any workers providing services pursuant to the contract as independent contractors.

(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.

(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.

(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services.

(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.

(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.

(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.

(g) The contract shall provide that all records provided to the city by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.

(h) For purposes of this section, the following definitions apply:

(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services.

(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement.

(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this section applies to all cities, including charter cities.

(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 4. Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 4. Section 53060.01 is added to the Government Code, immediately following Section 53060, to read:

### SEC. 4.

53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.(b) The quarterly semiannual performance reports shall include all of the following:(1) A list of all contract objectives that describe the goals of the contract.(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.(3) A description of the contractors progress towards contract objectives identified in paragraph (1).(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.(C) The names of any workers providing services pursuant to the contract as independent contractors.(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. (d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.(h) For purposes of this section, the following definitions apply:(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. (2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. (i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.



53060.01. (a) Each person who enters into a contract with a legislative body pursuant to Section 53060 to perform functions that are currently, or were in the prior 10 five years, performed by employees of the corporation or district represented by an employee organization, as defined in subdivision (a) of Section 3501, shall submit quarterly semiannual performance reports, every 90 180 days, to the legislative body and the exclusive representative of the employee organization.

(b) The quarterly semiannual performance reports shall include all of the following:

(1) A list of all contract objectives that describe the goals of the contract.

(2) A description of all deliverables the contractor has provided that include tangible and intangible services or goods that are measurable and produced as a result of the contract.

(3) A description of the contractors progress towards contract objectives identified in paragraph (1).

(4) A list of all financial expenditures incurred for services provided, including, but not limited to, personnel costs, direct expenses, and indirect expenses, and their corresponding deliverables.

(5) The number of each contractors and subcontractors employees, organized by job category, sex, race, and ethnicity, and the number of each contractors and subcontractors independent contractors by job category, sex, race, and ethnicity.

(6) (A) The names of any subcontractors providing services under the contract, and the names of the employees of the contractor and any subcontractors providing services pursuant to the contract.

(B) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (A) organized by job classification.

(C) The names of any workers providing services pursuant to the contract as independent contractors.

(D) The hourly rates, total compensation, and pay scales for the individuals identified in subparagraph (C) organized by job classification.

(7) Performance standard metrics for individual contractor and subcontractor employees performing work pursuant to the contract.

(c) The legislative body or its representative shall monitor quarterly semiannual performance reports to evaluate the quality of services. 

(d) The quarterly semiannual performance reports shall not be required for contracts between governmental entities.

(e) Contract terms exceeding two years shall undergo a performance audit by an independent auditor approved by the legislative body, to determine whether the performance standards are being met. Audits shall be conducted at least one year before the contract expires or qualifies for renewal or extension. The independent auditor shall present the findings of the audit report during a public session of the legislative body. The legislative body shall not renew or extend a contract before receiving and evaluating the audit report.

(f) The contractor shall reimburse the legislative body for the cost of the audit. A contractor shall not factor the costs of the audit into the contract costs with the legislative body.

(g) The contract shall provide that all records provided to the legislative body by the contractor shall be subject to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). In furtherance of this subdivision, contractors and any subcontractors shall maintain records related to performance of the contract that ordinarily would be maintained by the county in performing the same functions.

(h) For purposes of this section, the following definitions apply:

(1) Deliverables means the agreed upon services set forth in the contract, the expected rate of delivery, and the success of those services. 

(2) Total compensation means the complete payment provided to a contracted employee throughout the duration of the contract, including, but not limited to, applicable hourly pay, overtime pay, benefits, and retirement. 

(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

(j) The Legislature finds and declares that ensuring that the replacement of bargaining unit work with contracted employees does not undermine public employee relations is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution and for purposes of Section 4 of Article XI of the California Constitution. Therefore, this section applies to all cities and all counties, including charter cities and charter counties.

(k) This section shall apply on and after January 1, 2025. These amendments shall apply prospectively only and shall not be construed, applied, or otherwise interpreted to have any effect on or application to any contract entered into before January 1, 2025.

SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

### SEC. 5.