California League of Latin American Citizens

C.A.L.L.A.C. – Affiliated with the National League of Latin American Citizens

P.O. Box 433 Torrance CA 90508-0433 Tel: 213.787.5476

February 19, 2013 Honorable Governor Edmund G. Brown, Jr. Honorable Insurance Commissioner David Jones Honorable Board of Directors, SCIF Honorable Governor Brown, Commissioner Jones & SCIF Directors: The California League of Latin American Citizens (CALLAC) and our national affiliate, NLLAC, are extremely concerned with the propensity of California government agencies to contract work out of California, especially to so-called “Right To Work” states that choose to opt out under Section 14(b) of the National Labor Relations Act (a Taft-Hartley Act provision) to ban the union shop. One example we have long protested was the awarding of a contract to a Virginia firm by the Los Angeles Police Department for pre-employment polygraph services. The RFP requirements were so onerous that only one company bid – and it is highly likely that the RFP was tailored to insure that nobody else could bid. As is typical with these rigged bidding cases, the Virginia firm promptly subcontracted back the work to Los Angeles based polygraph examiners, some of whom were not American Polygraph Association (APA) certified, thereby insuring themselves low prices, higher profits, and substandard performance. Now we are called upon to take issue with the bidding process that appears rigged from the get-go by State Compensation Insurance Fund (SCIF) and which resulted in contracting out profits to RTW venues (Louisiana and Texas) under conditions that virtually guarantee that lower wages will be paid to California investigators, higher profits will result, and insures that the contracting firms have a built in incentive to provide inferior services to California employers and employees alike. We support the demand of the California Association of Licensed Investigators (CALI) for a thorough investigation of how this process was put in place and how those contracts were awarded. Furthermore, we believe that the practice of contracting to RTW states violates the public policy enumerated in Section 923 of the California Labor Code. Respectfully Yours, Jan B. Tucker Jan B. Tucker, State Director, CALLAC Angel G. Luevamo Angel Luevano, National Vice President, NLLAC

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