BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           756 (Eng)
          
          Hearing Date:  8/17/2009        Amended: 8/17/2009
          Consultant:  Bob Franzoia       Policy Vote: G O 7-4
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 756 would require a state agency to provide a  
          link to a centrally located and accessible state Internet Web  
          site that includes a list of the personal services and  
          consulting services entered into by the agency.  This bill would  
          require listings on the state's Internet Web site to include  
          specified information, and would require all new contracts to be  
          initially posted within 15 days of being signed by all parties.   
          This bill would require contractors to electronically provide  
          information to assist state agencies in the reporting of  
          information for the listings of personal services contracts.  
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Expanded state Web site$100       $100        $100      Special*
          posting of state contracts                    

          Public inquiry processing         Unknown, likely costs and  
          savings                General/
                                                                  Special*
          * Service Revolving Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  The listings shall include the following  
          information:

          (1) The name and identification number of each contractor, as  
          well as whether the contractor is a forprofit, nonprofit, small  
          business, micro-business, disabled veteran, or nonprofit  
          veteran's service agency.
          (2) The statutory basis for the authorization of each contract,  
          including, if relevant, any applicable condition permitting  
          personal services contracts provided by Section 19130 of the  
          Government Code.
          (3) The duration of each contract.










          (4) The number of amendments to each contract and the number of  
          renewals of each contract, where applicable.
          (5) Reason why low bid was not accepted.
          (6) Reason for noncompetitive bidding.
          (7) The total amount of the contract price over the duration of  
          the contract, including all known amendments to the contract,  
          the total amount paid by the state agency during the most  
          recently completed fiscal year, and the number, cost, bill rate,  
          and staffing levels associated with each type of contract  
          employee retained during the most recently completed fiscal  
          year. Staffing In time and material contracts, staffing levels  
          shall also be described or accounted for in personnel years or  
          full-time equivalent terms. In deliverables based contracts,  
          average staffing levels and bill rates shall be available and  
          reportable 90 days after the completion of the contract or after  
          one year, whichever occurs first.
          Page 2
          AB 756 (Eng)

          This bill would require all new contracts to be posted within 15  
          days of being signed by all parties and shall be updated as  
          necessary to include any information required that is not  
          available at the time of posting.  Additionally, because there  
          is no delay in the implementation date of this bill, departments  
          and agencies will be required to begin posting contract  
          information January 1, 2010.  Implementing this bill will depend  
          on the successful operation of information technology being  
          developed by the Office of the Chief Information Officer.  In  
          order to reduce potential implementation problems and to lessen  
          General Fund impacts, staff recommends this bill be amended to  
          (1) provide up to 30 days to post new contracts through January  
          1, 2012 and 15 days thereafter and (2) require special fund  
          departments and agencies, as determined by the Department of  
          General Services (DGS), in consultation with the Department of  
          Finance, to begin posting July 1, 2010 and require all other  
          departments and agencies to begin posting July 1, 2011.

          This bill would define consulting services contracts, personal  
          services contracts, time and material contracts, and  
          deliverables.

          Placing more contract information on the Web will result in more  
          persons seeking additional information or assistance with  
          questions.  The workload associated with responding to  
          questions, providing information, etc., would likely be a  
          significant cost if borne solely by DGS, which operates the  










          State Contract and Procurement Registration System, particularly  
          when many contracts will be department or agency specific  
          requiring DGS to contact that department or agency before  
          responding.  There may be savings over the present process as  
          there would be fewer more labor intensive inquiries.  In order  
          to disburse this workload staff recommends this bill be amended  
          to require contract inquires be handled by the contracting  
          department or agency and require contracting departments or  
          agencies to attach contact information, or a link to such  
          information, to each contract.  

          Staff recommends deleting the requirement that all new listing  
          shall be organized to ensure transparency as it is unclear what  
          would be required for DGS to comply with a requirement of  
          transparency.