The SVO Tells Senator Jim Beall Why AB 1250 is Bad for Business

Re: AB 1250 (Jones-Sawyer) Counties and cities: contracts for personal services

Dear Senator Beall:

On behalf of The silicon valley organization (The SVO), I am writing to express our opposition of AB 1250. This measure imposes a cost to contractors for bidding on city and county contracts, and seeks to severely limit options for these agencies to determine the most appropriate solution to providing efficient and effective public service by establishing significant and costly obstacles for agencies and for vendors contracting for personal services.

AB 1250 imposes costs on contractors in order to bid on contracts with cities and counties for personal services such as legal, accounting, and waste hauling with cities and counties. The bill requires the agency to conduct a very specific and detailed cost-benefit analysis that includes, but is not limited to, impacts on the environment, impact on the ability of the agency to provide social services, and impact on local businesses in the case of reduced spending power as a result of reduced wages of the contract. The prospective contractors would be required to reimburse the agency for the cost of the analysis, thereby imposing a fee for bidding.

Furthermore, the agencies would be required to conduct a performance audit that would also be paid for by the contractor. If the onerous process for these agencies to follow when seeking to contract for personal services does not discourage the agency from attempting the process, the cost to the contractors will discourage many from engaging. 

This measure also brings up privacy concerns for our members and it is unclear why the posting of this personal information benefits the public. Under AB 1250 the contractor would be required to submit, and the local agency to post to a public and searchable website, as follows:

  • Total compensation, including salaries and benefits, the contractor provides to workers performing work similar to that to be provided under the contract.
  • Total compensation, including salaries, benefits, options, and any other form of compensation, provided to the five highest compensated officers, directors, executives, or employees of the contractor.
  • Names of all employees of the contractor and their hourly pay rates.

For these reasons and others we oppose AB 1250.