BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 335 (Yee) - Governor's Budget: report on state agency
contracts for services.
Amended: As Introduced Policy Vote: GO 9-2
Urgency: No Mandate: No
Hearing Date: April 22, 2013
Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 335 would require the Governor to submit a
report with the proposed Budget that includes specified
information regarding current and proposed state agency
contracts for services with a value of over $5,000.
Fiscal Impact:
Unknown, likely significant costs in the aggregate for
various state agencies to compile and report specified
information to the Department of Finance (DOF) for inclusion
in the Governor's Budget (General Fund, various Special
Funds).
Significant one-time costs to DOF, likely exceeding
$500,000, to develop a dynamic and searchable
public-accessible database that contains specified
information on over 10,000 service contracts. Ongoing DOF
costs to annually compile and report contracting information
with the Governor's Budget are unknown at this time (General
Fund).
Background: Existing law requires the Governor to submit to the
Legislature within the first 10 days of each calendar year, a
proposed budget for the next fiscal year, as specified. The
Governor's proposed budget must contain itemized statements for
recommended state expenditures and estimated state revenues.
Proposed Law: SB 335 would require the Governor to submit a
report to the Legislature with the Budget that contains the
following information on current and proposed contracts for
services exceeding $5,000, organized by agency or budget
category:
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A description of the contract and services being
purchased.
The name of the agency contracting for services.
The effective date and expiration date of the contract.
Annual amounts paid under the contract, by funding
source, to the contractor in the current and past fiscal
years, as well as amounts proposed for payment to the
contractor in the Governor's Budget, and future fiscal
years.
The total projected cost of the contract, by funding
source, for all fiscal years during which the contract will
be in effect.
Whether the contract was sole source procurement.
The report would also provide the total cost of subcontracting
for services for each fund and agency or comparable budget
category, and all information must be made available to the
public on the state's website in a searchable and sortable
format.
Related Legislation: Numerous bills have been introduced over
the past 10 years that were intended to enhance reporting on
state contracting activities, none of which were ultimately
enacted. Of particular note are the following bills that were
substantially similar to this bill: SB 786 (Oropeza) 2007-08
Session; SB 1331 (Oropeza) 2007-08 Session; AB 983 (Ma) 2007-08
Session; AB 239 (Horton) 2005-06 Session; and SB 1638 (Romero)
2003-04 Session.
Staff Comments: The Department of General Services (DGS)
indicates that state agencies reported information to DGS in the
State Contract and Procurement Registration System (SCPRS) in
2011-12 regarding 10,329 service contracts valued at over
$5,000. This system does not capture any contracting
information from the state universities, the Lottery Commission,
the Public Employee Retirement System, and the State Teacher's
Retirement System. Contracting data that is reported to the
SCPRS includes department names, contractor names, contract
amounts, and contract descriptions. Staff notes that
information on proposed contracts is not reported because the
data entry happens after contracts are awarded.
Staff notes that it would not be feasible to provide all of the
information specified in the bill, particularly with respect to
proposed contracts. For instance, identification of a
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contractor and subcontractors, timelines for the contract,
funding sources for a project, and annual amounts paid would not
be known for proposed contracts included prior to the approval
of the Budget and the awarding of a contract. As such, any
reporting related to proposed contracts would be incomplete.
The Department of Finance (DOF) was unable to provide a fiscal
estimate for its costs to comply with SB 335, but state
departments will incur significant costs, likely in excess of
$500,000 annually in the aggregate, to compile and report the
required information to DOF. In addition, DOF would need to
develop and maintain a database to store information received
from departments, and these costs will likely exceed $500,000.