SCA 11 Allows State Agencies to Contract Out for Services

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According to Senator Huff, "If you can find a product or service in the Yellow Pages, the State of California should be using those services rather than creating new bureaucracies at taxpayer expense. It's no secret that the private sector can do anything government does and usually more efficiently, and at less cost.

"While the State Constitution does not explicitly outline a prohibition on contracting out, previous legal rulings by the State Supreme Court have held that Article VII of the Constitution limits contracting to work that cannot be performed by employees hired under civil service procedures. The lone exceptions to this rule are contracts signed for architectural and engineering services.

"My legislation changes this outdated rule and provides more clarity. It would allow the state, if prudent, to contract with outside, private firms for services that are currently provided by the government.

"SCA 11 contains many of the findings cited by the Little Hoover Commission Report: 'Too Many Agencies, Too Many Rules." The report concluded that the State of California "needs to find more cost-effective ways of doing business and it cannot be precluded from looking to the private sector for that efficiency.' The report recommends that the Constitution be amended to remove any barriers to the state to contract with private firms to do public work.

"A similar report compiled by the Reason Foundation finds that thousands of national, state and local government agencies in the United States have successfully privatized scores of services. Researchers have documented the successful privatization of airports, electric and telecommunications utilities, prisons, transportation and many other services.

"This is a key bill that is designed to help the state operate more frugally without compromising work quality. My bill will promote accountability, increase efficiency and motivate and maintain a highly skilled work force."