BILL NUMBER: SB 577	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 18, 2005

INTRODUCED BY   Senator Figueroa
    (   Principal   coauthors:  
Senators   Ducheny   and Murray   ) 


                        FEBRUARY 18, 2005

    An act relating to state government.   An
act to add Chapter 8.7 (commencing with Section 11830) to Part 1 of
Division 3 of Title 2 of the Government Code, relating to state
government operations. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 577, as amended, Figueroa.  State government operations:
 reform.   accountability.  
   Existing law generally sets forth the duties and responsibilities
of the head of any state agency, department, board, commission,
bureau, or program.   
   The bill would also, among other things, require all of the
following to ensure government's fiscal responsibility:   
   (1) All state agencies to participate in the CAL-Card Program for
purchases up to $5,000.   
   (2) The Franchise Tax Board and the Department of Finance to
report, by January 1, 2008, to the Legislature on the effectiveness
of "tax expenditures."  
   (3) The Controller to annually report to the Legislature the names
of the agencies, departments, or programs required to submit
internal control certification letters and year-end financial
reports, but did not submit them by the deadline.   
   (4) The Department of Finance to issue, coincident with the
release of the Governor's Budget, a long-range financial plan for the
state.   
   (5) The Department of General Services and the State Chief
Information Officer (CIO) to identify by February 1, 2006, all
development projects seeking to enhance or expand existing financial
software applications, as specified.   
   (6) The Department of Finance and the Controller to create overall
financial management standards for state government.  
   (7) The Department of Motor Vehicles to develop and administer an
amnesty program for persons that are subject to the vehicle license
fee and complete, by July 1, 2006, a definitive inventory of
state-owned vehicles to be updated annually.   
   (8) The Governor to report by February 1, 2006, to the Legislature
on the progress of consolidating federal grant-making functions and
propose a plan, by July 1, 2006, to consolidate fleet management in
the Office of Fleet Administration.   
   (9) The Department of General Services by July 1, 2006, to submit
a plan to the Legislature describing how it will ensure that the
state pays the lowest airfare.   
   (10) All state agencies to certify prior to contracting out any
state service that the service cannot be comparably performed at the
same or less cost by current state employees or programs.   

   (11) The Governor, by July 1, 2006, to create and implement a
pilot volunteer leave program for state employees.   
   (12) Every future state building to be built in accordance with
the Leadership in Energy and Environmental Design Silver Rating
standards.   
   (13) The state to consider whether all construction projects
funded with state money should use an owner controlled insurance
program to reduce costs without risking performance or completion.
 
   Existing law establishes the Milton Marks "Little Hoover"
Commission on California State Government Organization and Economy to
promote economy, efficiency, and improved service in the transaction
of the public business in the various departments, agencies, and
instrumentalities of the executive branch of the state government.
 
   This bill would declare the intent of the Legislature to enact
legislation that would reform state government operations in an
effort to improve the efficiency and accountability of government
programs.  
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  It is the intent of the Legislature to enact
legislation that would reform state government operations in an
effort to improve the efficiency and accountability of government
programs. 
  SECTION 1.   Chapter 8.7 (commencing with Section 11830) is
added to Part 1 of Division 3 of Title 2 of the   Government
Code   , to read:  
      CHAPTER 8.7.  ENSURING GOVERNMENT FISCAL RESPONSIBILITY

   11830.  (a) All state agencies shall participate in the CAL-Card
Program for purchases up to five thousand dollars ($5,000).
   (b) The Franchise Tax Board and the Department of Finance shall
report, by January 1, 2008, to the Legislature on the effectiveness
of "tax expenditures."
   (c) (1) The Department of Finance shall annually report to the
Legislature the names of the agencies, departments, or programs
required to submit internal control certification letters to the
department but did not.
   (2) The Controller's office shall annually report to the
Legislature the names of the agencies, departments, or programs
required to submit year-end financial reports, but that did not
submit them by the respective deadline.
   (d) Beginning January 1, 2007, the Department of Finance shall,
coincident with the release of the Governor's Budget, issue a
long-range financial plan for the state. The plan shall include, but
not be limited to, revenue and expenditure projections for the next
four years.
   (e) The Department of General Services and the State Chief
Information Officer shall, by February 1, 2006, identify all
development projects seeking to enhance or expand existing financial
software applications and, to the extent practicable, coordinate with
the agencies or departments seeking to acquire these applications to
ensure that they will permit managers and department and agency
heads to integrate and routinely exchange compatible financial data
with other managers and agency and department heads, and that will be
generally applicable throughout the organization of state and local
government.
   (f) The Department of Finance and the Controller shall create
overall financial management standards for state government.
   11831.  (a) The Department of Motor Vehicles shall develop and
administer an amnesty program for persons subject to the vehicle
license fees imposed pursuant to Chapter 2 (commencing with Section
10751) of Part 5 of Division 2 of the Revenue and Taxation Code for a
four-month period beginning February 1, 2006, to May 31, 2006,
inclusive, or during a timeframe ending no later than June 30, 2006.
The program shall apply to vehicle license fee liabilities due and
payable before January 1, 2006.
   (b) All state agencies shall use the State Contract and
Procurement Registration System and the Governor shall, by February
1, 2006, certify to the Legislature that all managers that might use
it have been notified of the legal requirement to do so.
   (c) The Governor shall, by February 1, 2006, report to the
Legislature on the progress of consolidation or coordination of
federal grant-making functions by a memorandum of understanding or
other means and shall report every month until the Governor certifies
that no further consolidation or coordination will achieve savings
or improve the state's chances in receiving additional federal
revenue.
   (d) All state agencies and departments shall use CalATERS by July
1, 2006, and by February 1, 2006, the Department of Finance shall
establish a system whereby support costs incurred by CalATERS will be
reimbursed based on the per reimbursement use by agencies and
departments.
   (e) The Department of General Services shall, by July 1, 2006,
submit a plan to the Legislature describing how it will ensure that
it pays the lowest airfare, including, but not limited to, ensuring
that its fares do not exceed those available on the Internet, and
utilizing special plans for business travelers.
   11832.  (a) (1) The Department of General Services, in
consultation with all state agencies owning vehicles, shall complete
a definitive inventory of state-owned vehicles by July 1, 2006, and
that inventory shall be updated annually thereafter.
   (2) The Governor shall propose a plan to consolidate fleet
management in the Office of Fleet Administration (OFA) by July 1,
2006, and shall identify and propose sanctions for his or her
appointees who oversee government agencies that fail to submit the
required fleet reports to OFA.
   (b) All state agencies shall certify prior to contracting out any
state service that the service cannot be comparably performed at the
same or less cost by current state employees or programs.
   (c) The Governor's Office on Service and Volunteerism shall
identify all funds donated directly to the state or to any
state-affiliated auxiliary foundation and shall, by ____, propose to
the Legislature amendments to Section 11005 that would make donating
to the state government easier and more efficient.
   (d) By July 1, 2006, the Governor shall create and implement a
pilot volunteer leave program for state employees.  The Governor
shall designate the agencies and departments selected for the pilot
program. By March 1, 2008, the Governor shall report to the Senate
Committee on Budget and Fiscal Review and the Assembly Committee on
Budget whether the state enjoyed any savings as a result of the pilot
project, whether it should be expanded, and, if so, suggested
legislative amendments and language for such an expansion.
   (e) By July 1, 2006, the Department of General Services shall hire
a recovery firm to audit the state's telecommunications contracts,
permitting a contingency fee contract of no more than 15 percent.
   (f) (1) The Governor shall report to the Legislature by March 1,
2006, on the status of compliance with Sections 15814.30 to 15814.35,
inclusive, requiring "life-cycle" costing of state construction
projects.
   (2) Every future state building shall be built in accordance with
the Leadership in Energy and Environmental Design Silver Rating
standards.
   (g) The state shall consider whether all construction projects
funded with state money should use an owner controlled insurance
program to reduce costs without risking performance or completion.