BILL ANALYSIS
Bill No: SB
719
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 719 Author: Huff
As Introduced: February 27, 2009
Hearing Date: April 14, 2009
Consultant: Chris Lindstrom
SUBJECT
State agency Internet Web sites: information.
DESCRIPTION
SB 719 requires each state department and agency to develop
and operate a searchable Internet Web site accessible by
the public that includes specified information relating to
expenditures of state funds, defined to include, among
other things, grants, contracts, subcontracts, purchase
orders, and tax refunds, rebates, and credits.
Specifically, this bill:
1)Enacts the Taxpayer Transparency Act of 2009.
2)Defines the following terms:
a) "Expenditure of state funds" means the expenditure
or transfer of any state appropriated or
nonappropriated funds in an amount in excess of one
thousand dollars ($1,000) by any department, agency,
office or entity of state government in forms
including, but not limited to:
i) Contracts.
ii) Expenditures from the reserve account
for use in the event of any revenue fluctuations.
iii) Grants.
iv) Purchase orders.
SB 719 (Huff) continued
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v) Subcontracts.
vi) Tax refunds, rebates, and credits.
b) "Expenditure of state funds" shall not include the
transfer of funds between two departments, agencies,
offices or entities of state government, or the
transfer of state or federal assistance payments to an
individual recipient or beneficiary of those
assistance payments.
c) "Searchable Internet Web site" means an Internet
Web site that allows the public to search and
aggregate information described in number 3 below and
is accessible from any department's or agency's
homepage.
3)Requires each state department and agency, with
assistance from the office of the State Chief Information
Officer, the Department of Finance, and the Governor's
office, to develop and operate a searchable Internet Web
site, no later than January 1, 2010, that is accessible
by the public at no cost, that includes all of the
following:
a) For each expenditure of state funds, information
including, but not limited to:
i) The name and principal location or
residence of each entity or other recipient of
the funds.
ii) The amount of expenditure.
iii) The type of transaction.
iv) The identity of the department,
agency, office, or other entity of state
government making the expenditure.
v) The budget program source for the
expenditure.
vi) A description of the purpose of the
expenditure.
vii) A description of any item purchased
pursuant to the expenditure.
viii) Any other information deemed relevant
by the Department of Finance, the office of the
Chief Information Officer, the Department of
General Services, and the Governor's office.
SB 719 (Huff) continued
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b) The ability of the user to view information on the
searchable Internet Web site in a format that is
searchable and that may be downloaded and managed by
the user with appropriate software.
c) The ability of users to provide input to each
respective department or agency regarding the utility
of the searchable Internet Web site and
recommendations for improvements to the searchable
Internet Web site.
4)Requires the searchable Internet Web site to include
information for the 2008-09 fiscal year no later than
January 1, 2010, and thereafter, the searchable Internet
Web site shall include information for the most recently
completed month.
5)Requires each department, agency, and entity of state
government to fully cooperate with the Department of
Finance, the office of the Chief Information Officer, the
Department of General Services, and the Governor's office
in compiling and providing all information necessary to
comply with the requirements of this section.
6)Provides that nothing in this section requires disclosure
of information deemed confidential or otherwise exempt
from disclosure under state or federal law.
EXISTING LAW
Existing law imposes specified duties on state governmental
agencies and provides for public access to government
records.
Existing law, the California State Constitution, provides
that California's citizens are entitled to a right to
privacy.
BACKGROUND
Purpose of the bill. According to the author's office, "In
July, 2007, President Obama signed Reason Foundation's Oath
of Presidential Transparency, pledging his commitment to
"open, transparent, and accountable government principles.
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Every American has the right to know how the government
spends their tax dollars, but for too long that information
has been largely hidden from public view," said then
Senator Obama.
According to the author's office, "Government transparency
is not a partisan issue. Conversely, transparency is an
essential component of democracy as it allows taxpayers to
hold public officials accountable for their actions.
Unfortunately, California lacks a comprehensive and easily
searchable mechanism for taxpayers to track state
expenditures online.
"Without a doubt, SB 719 will help reduce fraud, waste and
abuse. By providing easy online access to comprehensive
government expenditure information, California taxpayers
will be given a tool that not only holds government
accountable, but also fosters a better understanding of the
ways in which government operates."
Background. The State Constitution requires that meetings
of public bodies and writings of public officials and
agencies be open to public scrutiny. The State
Constitution also requires statutes or other types of
governmental decisions to be broadly interpreted to further
the people's right to access government information. The
State Constitution requires governmental actions that limit
the right of access to demonstrate the need for that
restriction. The State Constitution exempts some
information from disclosure, such as law enforcement
records.
California has a number of state statutes that provide for
the public's access to government information, including
documents and meetings.
1)Access to Government Documents. There are two basic laws
that provide for the public's access to government
documents:
a) The California Public Records Act establishes the
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right of every person to inspect and obtain copies of
state and local government documents. The act
requires state and local agencies to establish written
guidelines for public access to documents and to post
these guidelines at their offices.
b) The Legislative Open Records Act provides that the
public may inspect legislative records. The act also
requires legislative committees to maintain documents
related to the history of legislation.
2)Access to Government Meetings. There are two basic laws
that provide for the public's access to state government
meetings:
a) The Bagley-Keene Open Meeting Act requires that
meetings of state bodies be conducted openly and that
documents related to a subject of discussion at a
public meeting be made available for inspection.
b) The Grunsky-Burton Open Meeting Act requires that
meetings of the Legislature be open to the public and
that all persons be allowed to attend the meetings.
3)Some Information Exempt From Disclosure. While laws
provide for public access to a significant amount of
information, they also allow some information to be kept
private. Many of the exclusions are provided in the
interest of protecting the privacy of members of the
public. For instance, medical testing records are exempt
from disclosure. Other exemptions are provided for legal
and confidential matters. For instance, governments are
allowed to hold closed meetings when considering
personnel matters or conferring with legal counsel.
Legislative Trends. In 2006, Congress passed and the
President signed into law the Federal Funding
Accountability and Transparency Act. The law creates a
free, publicly searchable website for all federal contracts
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and grants. The law requires access to data on all
payments of more than $25,000, with exceptions for
classified information, federal assistance payments made to
individuals, and an exclusion for federal employees. The
website ( www.USASpending.gov ) became operative on December
13, 2007.
The federal effort inspired elected officials in states
across the country to seek passage of similar legislation
or the execution of executive orders to promote
accountability and transparency in government expenditures.
In 2007, five states (Kansas, Oklahoma, Texas, and to a
more limited extent, Minnesota and Hawaii) passed
legislation that mandates the creation of comprehensive
websites for state expenditures. In addition, a number of
states including Texas, Missouri, South Carolina, Alaska
and Louisiana have taken executive action to provide
taxpayers with an opportunity to access state expenditures.
President Obama has called for a searchable Web site to
track federal economic stimulus spending. Governor
Schwarzenegger has launched a Web site to ensure
transparency and accountability of federal economic
stimulus funding as it is received and expended by the
state.
Governor Schwarzenegger also launched a Web site
( www.reportingtransparency.ca.gov ) which makes publicly
available the Statement of Economic Interests Form 700 and
Travel Expense claims for the Governor's Office Senior
Staff and Deputies, Agency Secretaries, Agency
Undersecretaries and Department Directors.
Arguments in support. In support of the bill, California
Common Cause writes that it has long advocated for laws
that require greater and more accessible disclosure of
government information. Last year's federal government
bailout program proved once again the importance of
allowing the public access to information about government
expenditures. California Common Cause believes that by
embracing new technologies, government departments and
agencies can more easily make important financial
information available to the public. This access to
information will in turn promote greater accountability of
officials responsible for dispensing funds.
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Moreover, California Common Cause writes that sunshine
ordinances have demonstrated that public access to
government information is the best means of assuring
ethical and accountable governance. By requiring
information to be made public through online databases, SB
719 will ensure that departments' financial information is
not only available to the public but also easily
accessible. This ease of accessibility is vital in a
climate where individuals serve as watchdogs for their own
government.
In conclusion, California Common Cause believes that SB 719
will promote the kind government accountability and
openness that California desperately needs.
Staff Comments.
1)Compliance date. This bill requires each state
department and agency, with assistance from the office of
the State Chief Information Officer, the Department of
Finance, and the Governor's office, to develop and
operate a searchable Internet Web site, no later than
January 1, 2010 - the effective date of the bill if
enacted. Given the fact that some guidance will be
required to ensure that state departments and agencies do
not inadvertently release confidential information, the
author and the Committee may wish to consider pushing the
compliance date back by six months, to July 1, 2010.
2)$1,000 Expenditure threshold. The federal government's
and other state's accountability and transparency laws
have differing expenditure thresholds. Given that
California awards over $9.4 billion in state contracts,
alone, not considering other expenditures required to be
reported by the bill, it may be worthy of the author's
and Committee's consideration to increase the threshold
to a higher level, perhaps expenditures above $10,000?
PRIOR/RELATED LEGISLATION
SB 502 (Walters), 2009-2010 Legislative Session . Similar
to SB 719 (Huff) of the 2009-2010 Legislative Session. (In
Senate Governmental Organization Committee)
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AB 1194 (Strickland), 2009-2010 Legislative Session .
Similar to SB 719 (Huff) of the 2009-2010 Legislative
Session. (In Assembly Business and Professions Committee)
SB 1494 (McClintock), 2007-2008 Legislative Session .
Similar to SB 719 (Huff) of the 2009-2010 Legislative
Session. (Held in Senate Appropriations Committee)
AB 1843 (Garrick), 2007-2008 Legislative Session . Stated
that it is the intent of the Legislature to require the
Department of Finance to create, operate, and maintain a
searchable database, integrated within a statewide fiscal
information system, which provides the public with
information on how the state spends tax revenues. (Held in
Assembly Appropriations Committee)
AB 1393 (Leno), 2007-2008 Legislative Session . Would have
required by July 1, 2009, any state agency that publishes
an Internet Web site to include on its homepage specified
information that is not exempt from disclosure under the
California Public Records Act about how to contact the
agency, how to request records under the California Public
Records Act, and a form for submitting requests for records
online. This bill also would have required the Department
of Justice to convene an advisory body to consider and make
recommendations for a statutory standard governing the
posting of requests and denials, and public documents not
exempt under the California Public Records Act, on the
Internet Web sites of state agencies, and report its
findings and recommendations to the Governor and
Legislature by January 1, 2009. (Vetoed by the Governor)
AB 2927 (Leno), 2005-2006 Legislative Session . Would have
required any state agency that publishes an Internet
Website to include on the homepage of that site specified
information that is not exempt from disclosure under the
California Public Records Act about how to contact the
agency, how to request records under the act, and a form
for submitting online requests for records. This bill
would have authorized any person to bring an action to
enforce the duty of a state agency to post this information
and would provide for penalties including monetary awards
to be paid by the agency, with specified provisions to
become operative on January 1, 2008. (Vetoed by the
Governor)
SB 719 (Huff) continued
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SB 503 (Figueroa), 2005-2006 Legislative Session . Would
have required each state or local body identified in
existing law that maintains an Internet Website, to make
the written guidelines accessible from the homepage of its
Website through a link entitled "Guidelines for How to
Obtain Public Records." (Gutted and Amended in the
Assembly)
SCA 1 (Burton), Resolution Chapter 1, Statutes of 2004 .
Placed Proposition 59 on the statewide ballot, which was
subsequently approved by the voters, to confer to the
people a right of access to information concerning the
conduct of the people's business. Provides that the people
have a right of access to information concerning the
conduct of the people's business, and requires meetings of
public bodies and the writings of public officials and
agencies to be open to public scrutiny. Requires a
statute, court rule or other authority to be broadly
construed if it furthers the right of access, and narrowly
construed if it limits the right of access. Requires a
statute, court rule or other authority adopted after the
effective date of the constitutional amendment that limits
the right of access to include findings demonstrating the
interest protected, and the need for that protection.
Specifies that these provisions do not supersede or modify
the constitutionally guaranteed right to privacy, or affect
the construction of any statute, court rule or other
authority that protects that right to privacy. Specifies
that these provisions do not supersede or modify any other
provision of the state Constitution. Specifies that these
provisions do not affect the scope of permitted discovery
in judicial or administrative proceedings regarding
deliberations of the Legislature, its Members, employees,
committees and caucuses.
SCA 7 (Burton), 2001-2002 Legislative Session . Would have
amended the Declaration of Rights contained in Article 1 of
the State Constitution to provide that the people of
California have a fundamental right of access to government
information subject to certain narrow exceptions. (Held in
the Assembly)
SUPPORT: As of April 10, 2009:
California Common Cause
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OPPOSE: None on file as of April 10, 2009.
DUAL REFERRAL: Senate Rules Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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