BILL ANALYSIS Ó AB 1773 Page 1 Date of Hearing: April 9, 2014 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Jim Frazier, Chair AB 1773 (Allen) - As Amended: March 13, 2014 SUBJECT : Public contracts: courts SUMMARY : Revises reporting requirements related to contracting activities by judicial branch entities (JBEs). Specifically, this bill : 1)Clarifies that two annual reports that the Judicial Council is required to compile with information related to judicial branch contracting must be done semiannually. 2)Requires these semiannual reports to include the following additional information: a) A list of all new contracts and the complete history of contracts amended during the reporting period, including the date and duration of the amendments; and, b) Information on whether each contract was competitively bid, the justification for contracts that were not competitively bid, and whether the contract was with a disabled veteran business enterprise, or, in the case of an information technology contract, with a small business. 3)Specifies that each of the semiannual reports must be available electronically in a format that enables the data to be readily searched, sorted, extracted, organized, or filtered. EXISTING LAW : 1)Defines JBEs to mean any superior court, court of appeal, the California Supreme Court, the Habeas Corpus Resource Center, the Judicial Council, and the Administrative Office of the Courts. 2)Requires JBEs to comply with provisions of the Public Contract Code that apply to state agencies and departments related to the procurement of goods and services. AB 1773 Page 2 3)Directs the Judicial Council to report twice a year, beginning in 2012, to the Joint Legislative Budget Committee and the California State Auditor (CSA) on contracting activities by JBEs. These reports must contain specific information, including details about contracts and amendments to contracts entered into by JBEs with vendors or contractors, payments received, and the nature of the goods or services provided. FISCAL EFFECT : Unknown COMMENTS : Current law requires the Judicial Council to submit reports twice a year to the Legislature and the CSA containing specified information on contracts for the judicial branch. These reports provide a list of vendors and contractors and further identify the amount of payment(s) to the contractors and vendors, the types of goods and services provided, and the JBEs with which the contractors and vendors contracted to provide those goods and services. The reports also include a list of all contract amendments and identify the vendors and contractors, the types of goods and services provided under the contract, and the nature, duration, and cost of the amendments. According to the author, this bill is intended to create transparency in judicial branch contracting activities and ensure that contracting information is fully available and easily accessible to the public. The author states that a March 2013 report from the California State Auditor (CSA) on judicial branch procurement found that the statutorily mandated semiannual reports to the Legislature were of limited usefulness and identified various improvements that could be made to JBEs' procurement practices. Specifically, the CSA recommended that the Legislature require the Judicial Council to revise the semiannual reports to include information on new contracts and the complete history of amended contracts; information on whether or not a contract was competitively bid; information on the state's small business preference for information technology procurements; and, require the reports to be available in a user-friendly electronic format. This bill implements all of these recommendations. its most recent report to the Legislature dated February 1, 2014, the Judicial Council notes, "Because substantial additional judicial branch staff time will be utilized to upload data that is now contained in physical files and is not AB 1773 Page 3 currently in electronic format, and additional software licenses will be necessary to implement the recommended changes, the associated implementation costs will be considerable and will necessitate additional funding. If the Legislature concludes that the benefits of such additional reporting requirements outweigh the costs, and if sufficient funds are appropriated to offset the additional costs incurred so that the public's access to justice is not further impaired, the CSA's recommendations can be implemented." While this bill aims to increase judicial branch contract reporting requirements, the workload associated with implementing it could be significant. PRIOR LEGISLATION : SB 78, Chapter 10, Statutes of 2011, requires JBEs to comply with the Public Contract Code governing the procurement of goods and services by state agencies and departments. REGISTERED SUPPORT / OPPOSITION : Support American Federation of State, County and Municipal Employees, AFL-CIO California Court Reporters Association Service Employees International Union, California Opposition None on file. Analysis Prepared by : Cassie Royce / A. & A.R. / (916) 319-3600