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.