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
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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.
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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
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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.
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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.