BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 400|
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                                 THIRD READING


          Bill No:  AB 400
          Author:   De Leon (D), et al
          Amended:  6/15/09 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  : 12-0, 6/23/09
          AYES:  Wright, Harman, Benoit, Denham, Florez, Negrete  
            McLeod, Oropeza, Padilla, Price, Wiggins, Wyland, Yee
          NO VOTE RECORDED:  Calderon

           SENATE APPROPRIATIONS COMMITTEE  :  11-0, 7/6/09
          AYES:  Kehoe, Cox, Corbett, Hancock, Leno, Price, Runner,  
            Walters, Wolk, Wyland, Yee
          NO VOTE RECORDED:  Denham, Oropeza  

          ASSEMBLY FLOOR  :  75-0, 5/14/09 - See last page for vote


           SUBJECT  :    State agencies:  FISCal funds

           SOURCE  :     Author


           DIGEST  :    This bill requires the Financial Information  
          System for California to list State General Fund and  
          federal fund expenditures in the amount of $5,000 or  
          greater on a public Web site.  

           ANALYSIS  :    Existing law imposes specified duties on state  
          governmental agencies and provides for public access to  
          government records.
          Existing law, the California State Constitution, provides  
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          that California's citizens are entitled to a right to  
          privacy.

          This bill:  

          1.Defines "General Fund and federal fund expenditures" as  
            the expenditure or transfer of funds in excess of $5,000  
            by any state department, including:  

               A.     Grants.
               B.     Contracts.
               C.     Purchase orders. 

          2.Excludes GF transfers between state departments or  
            agencies, or the transfer of state or federal assistance  
            payments to any individual recipient or beneficiary of  
            those assistance payments.

          3.Requires the following information for each GF and  
            federal fund expenditure to be listed:

               A.     The name and principal location of each entity  
                 or other recipient of the funds.
               B.     The amount of the expenditure.
               C.     The type of transaction.
               D.     The identity of the state department or agency  
                 making the expenditure.
               E.     The budget program source for the expenditure.
               F.     A brief description of the purpose for the  
                 expenditure.
               G.     A brief description of any item purchased  
                 pursuant to the expenditure.

          4.Makes related legislative findings and declarations.

           Comments
           
          According to the author's office, "AB 400 seeks to provide  
          greater transparency in the state budget process, so the  
          public can easily access and readily review how taxpayer  
          money is being spent.  Support for public programs is  
          largely predicated on the belief that tax dollars are spent  
          in a prudent and efficient manner.  Transparency in the  
          expenditure of these tax dollars is critical to returning  







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          public support and confidence in state government."

           Financial Information System for California (FISCal)  .   
          FISCal is an integrated information technology project  
          designed to create and implement a new statewide financial  
          system which will encompass the areas of budgeting,  
          accounting, procurement, cash management, financial  
          management, financial reporting, cost accounting, asset  
          management, project accounting, and human resources  
          management.  FISCal is designed to replace California's  
          aging financial management systems; FISCal will be rolled  
          out in five phases, over a multi-year period, to more than  
          a hundred departments and agencies. 

          Development of this system has been done collaboratively  
          (under FISCal), which includes the Department of Finance  
          (DOF), the State Treasurer's Office (STO), the State  
          Controller's Office (SCO), and the Department of General  
          Services (DGS).  The system is required to have an online  
          searchable database and the capability of operating a  
          coding structure which indicates the categorization of  
          expenditures and revenues.  The system and the data are  
          required to be available to both the legislative and  
          executive branches. 

          The FISCal project was proposed during the 2007-08 budget  
          process as an entirely General Fund project.  However, due  
          to a number of factors including General Fund expense, the  
          Legislature requested more information on alternative  
          funding scenarios, vendor accountability, and formalization  
          of control agency roles.  It is unclear when FISCal will  
          move forward and whether the proposed timeline will remain  
          intact. 
          
           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions                   2009-10             
           2010-11   2011-12   Fund  
          Adds requirement to FIScal                   very minor and  







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          absorbable               General
                                     by project             Special*

          * All departments will participate in a FISCal share of  
           cost, which draws on general and special funds.

           SUPPORT  :   (Verified  7/7/09)

          American Federation of State, County and Municipal  
          Employees
          California Faculty Association
          California Public Interest Research Group
          Service Employees International Union, Local 1000


           ASSEMBLY FLOOR  :  
          AYES:  Adams, Anderson, Arambula, Beall, Bill Berryhill,  
            Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuller, Furutani, Galgiani, Garrick, Gilmore, Hagman,  
            Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,  
            Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,  
            Niello, Nielsen, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Ammiano, Fuentes, Gaines, Saldana, Smyth


          TSM:nl  7/7/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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