BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 756|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 756
Author: Eng (D) and Lieu (D), et al
Amended: 9/4/09 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-4, 7/8/09
AYES: Wright, Calderon, Florez, Negrete McLeod, Padilla,
Price, Yee
NOES: Harman, Benoit, Denham, Wyland
NO VOTE RECORDED: Oropeza, Wiggins
SENATE APPROPRIATIONS COMMITTEE : 9-4, 8/17/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,
Wyland, Yee
NOES: Cox, Denham, Runner, Walters
ASSEMBLY FLOOR : 51-27, 6/3/09 - See last page for vote
SUBJECT : Public contracts: information: Internet Web
site
SOURCE : Service Employees International Union Local
1000
DIGEST : This bill requires 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
requires listings on the state's Internet Web site to
include specified information, and requires, on and after
CONTINUED
AB 756
Page
2
January 1, 2012 a summary of a contract to be initially
posted within 15 days of being signed by all parties. This
bill requires the Director of the Department of General
Services (DGS) to maintain the Internet Web site and to
establish the publishing of the contract listing
information. This bill also authorizes DGS to use the
services of any state agency. This bill requires
contractors to electronically provide information to assist
state agencies in the reporting of information for the
listings of personal services contracts.
Senate Floor Amendments of 9/4/09 makes technical and
clarifying changes, and adds coauthors.
ANALYSIS : Existing law governing contracting between
state agencies and private contractors sets forth
requirements for the procurement of supplies, materials,
equipment, and services by state agencies and sets forth
the various responsibilities of the Department of General
Services and other state agencies in overseeing and
implementing state contracting procedures and policies.
Existing law provides that contracting is permissible to
achieve cost savings when specified conditions are met, and
all efforts are made to use civil servants to provide
services. Existing law also provides that contracting is
permissible, after all efforts are made to use civil
servants to provide services, and when specified
requirements can be met.
This bill requires a state agency, except as specified, to
provide a link to a centrally located and accessible
state-run Internet Web site that includes a list of the
personal services and consulting services contracts, as
defined, entered into by the agency. This bill requires
the listings on the state's Internet Web site to include
specified information, and requires, on and after January
1, 2012, a summary of a contract to be initially posted
within 15 working days of being signed by all parties.
This bill requires the Director of DGS to maintain the
Internet Web site and to establish the publishing of the
contract listing information. This bill also authorizes
DGS to use the services of any state agency.
AB 756
Page
3
This bill requires contractors to electronically provide
specified information to assist state agencies in the
reporting of information for the listings of personal
services and consulting services contracts.
The listings shall include the following information:
1.The name and identification number of each contractor, as
well as whether the contractor is a for-profit,
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.
8.Specifies that this bill shall not require the posting of
information in a contract, including the identity of any
undisclosed expert consultant, that is confidential
AB 756
Page
4
pursuant to a court order, the attorney client privilege,
or the attorney work product exception or information,
that, if posted, would jeopardize peace officer safety,
criminal intelligence information, ongoing investigatory
activities, or any security procedure, or any information
the disclosure of which is prohibited by law.
9.Defines "consulting services contracts," "personal
services contracts," "time and material contracts," and
"deliverables" for purposes of this bill.
Comments
According to the author's office, this bill is intended to
be implemented using technology development by DGS and the
state Chief Information Officer, which will allow all
contract reporting requirements to be fulfilled without
significant new costs to other state agencies.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/8/09)
Service Employees International Union Local 1000 (source)
American Federation of State, County, and Municipal
Employees, Local 2620
American Federation of State, County, and Municipal
Employees, State
Chapter
California Association of Professional Scientists
California Aware
California Professional Firefighters Association
Professional Engineers in California Government
OPPOSITION : (Verified 9/8/09)
Department of Finance
American Council of Engineering Companies of California
California Building Standards Commission
ARGUMENTS IN SUPPORT : According to the author's office,
this bill is intended to ensure transparency in state
contracts by requiring that information concerning
AB 756
Page
5
contractors who supply consulting or personal services be
available on-line in an easily searchable data base. This
information would be centrally located with links from the
websites of departments and agencies. The author's office
points out that expenditures and staffing levels associated
with the use of civil service workers is routinely reported
to the Legislature and is readily available to the public
through the budget process each year. The author, sponsor
and proponents believe that the same reporting requirements
should apply for personal service and consulting contracts.
Proponents contend that this bill would be consistent with
the current direction of transparency in federal government
spending. Proponents note that state worker salaries are
readily available on-line yet there is a hidden workforce
of contract employees and there is little information
available on actual contracts for these services.
Proponents point out that the Governor has issued an
Executive Order to make some of this information more
easily available; this measure seeks to expand on that
Executive Order and provide the public with more
information and data available on-line in an easily
accessible format. Proponents believe that withholding
such information precludes the public from viewing the true
administrative
ARGUMENTS IN OPPOSITION : The American Council of
Engineering Companies of California (ACEC) is opposed to
this bill on the basis that "it improperly requires state
agencies to list architectural, engineering, environmental
services and consulting services procured under the aegis
of article XXII of the California Constitution." ACEC
notes that "the California Supreme Court in Kempton v.
Department of Transportation (2007) 40 Cal.4th 1016 clearly
held that architectural and engineering services, which are
subject to article XXII, are not subject to the provisions
of personal service contracts such as those contained in
Government Code section 19130." ACEC points out that
"virtually any architectural and engineering contract must
be procured under California's Little Brooks Act (Gov. Code
Section 4525 et seq.) and must be procured on the basis of
reasonable cost. Thus, the staffing costs are negotiated
between the public agency and the contractor. The
contracting engineering firm then invoices the public
AB 756
Page
6
agency for the labor costs incurred on the project."
ACEC has suggested that the author accept an amendment
simply excluding any contracts procured under the authority
of article XXII of the California Constitution. "That
would avoid duplicative reporting but the information would
still be available and the state agencies could make that
information available to the Legislature."
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,
Fletcher, Fong, Fuentes, Furutani, Galgiani, Hall,
Hayashi, Hernandez, Hill, Huber, Huffman, Jones,
Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning,
Nava, John A. Perez, V. Manuel Perez, Portantino, Price,
Ruskin, Salas, Saldana, Skinner, Smyth, Solorio, Swanson,
Torlakson, Torres, Torrico, Bass
NOES: Adams, Anderson, Bill Berryhill, Tom Berryhill,
Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson,
Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey,
Jeffries, Knight, Logue, Miller, Nestande, Niello,
Nielsen, Silva, Audra Strickland, Tran, Villines
NO VOTE RECORDED: Block, Yamada
TSM:nl 9/8/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****