BILL ANALYSIS
AB 756
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 756 (Eng and Lieu)
As Amended September 4, 2009
Majority vote
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|ASSEMBLY: |51-27|(June 3, 2009) |SENATE: |24-14|(September 9, |
| | | | | |2009) |
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Original Committee Reference: B. & P.
SUMMARY : Requires each state agency to provide a link to a
centrally located and accessible state-run Internet Web site
that includes a list of personal and consulting services
contracts.
The Senate amendments :
1)Require a summary of contracts shall be initially posted
within 30 working days of signing. Commencing January 1,
2012, the summary shall be initially posted within 15 working
days of signing.
2)Require contract details on whether contractors operate as a
for-profit, non-profit, small business, micro business,
disabled veteran, or nonprofit veteran's service agency. Adds
license, registration, and certification numbers to the list
of options for an identifying contractor number to be
provided.
3)Require contract details on the reason why low bid was not
accepted and the reason for noncompetitive bidding, if
applicable.
4)Deletes previous contract categories and instead requires
contract listings to be organized and reported in one of the
following manners:
a) Using the maximum level of specificity available through
the United Nations Standard Products and Services Code; or,
b) Using the following broad categories:
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i) Architectural, engineering, and environmental
services and consulting services;
ii) Information technology personal services and
consulting services; and,
iii) All other contracts that include personal services
and consulting services.
5)Define "Time and material contract" to mean a contract under
which the contractor agrees to furnish and install materials
or fixtures, or both, and which sets forth separately a charge
for the materials or fixtures and a charge for their
installation or fabrication.
6)Define "Deliverables" to mean any contract, requisition or
purchasing order, excluding public works contractors which
does not specify actual cost of direct labor at specified
hourly rates or actual cost of materials. These contracts are
for products or services that must be completed and delivered
as final products under the terms of an agreement or contract.
7)Require contract staffing levels to be categorized, as
specified, in time and material contracts and deliverables
based contacts.
8)Redefine "Personal services contracts" to include public works
contracts.
9)Delete annual reporting requirements to the Department of
Finance (DOF) and the Legislature, as specified.
10)Delete reporting requirements in an electronic format similar
to the Wage and Salaries Supplemental report.
11)Exempt state agencies that are not required to report to the
State Contact and Procurement Registration System from the
contract reporting requirements outlined in this bill.
12)Remove contractor penalties for failure to abide by reporting
requirements.
13)Add reporting requirements for total contract expenditures
during the duration and recent fiscal year (FY), as specified,
commencing January 1, 2011.
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14)Revise the deadline that contractors must electronically
submit specified staffing and cost information to from the end
of each FY to 90 days after the completion of the contract or
after one year, for every personal services and consulting
services contract operative during that FY, and commences
January 1, 2011.
15)Require a summary of a contract entered into by a special
fund agency, as determined by DGS in consultation with DOF, to
be posted beginning July 1, 2010. All summaries by other
agencies shall be posted beginning July 1, 2011.
16)Require the contracting state agency to handle inquiries
about a specific contract. Each contract posted on the
Internet Web site shall include the contact information of the
contracting state agency, or a link to that information.
17)Add to the list of exemptions of certain contractor reporting
requirements, the identity of an undisclosed expert
consultant, court order, attorney work product, that if
posted, would jeopardize public safety or security.
18)Make legislative declarations and findings.
19)Make technical and clarifying amendments.
AS PASSED BY THE ASSEMBLY , this bill required state agencies to
annually prepare a report, available on each agency's Internet
Web site listing personal services and consulting services
contracts entered into in the previous FY and to electronically
submit that report to the DOF and the Legislature. This bill
also contained civil penalties for contractors who fail to meet
specified reporting requirements.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)State agencies and departments would incur unknown costs to
obtain the specified information from contractors, to verify
the accuracy of the information provided, and to compile
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information on all agency contracts for reporting to the DOF
and the Legislature. All of these costs could be absorbable
for most individual departments, but in aggregate would be
significant, particularly for the initial report and at a time
when many departments are challenged by budget limitations.
2)Adding the reporting requirement to all state consulting and
service contracts could slightly increase the cost of each
contract.
COMMENTS : This bill was substantially amended in the Senate,
and several reporting requirements and civil penalties. This
bill, as amended in the Senate is consistent with Assembly
actions. According to the author's office, these amendments
were made after consulting several agencies affected by the
provisions of this bill. In addition, the amendments add
contract reporting requirements and reporting deadlines, revise
definitions and contract categories, and exempt certain
contracts from the reporting requirements.
Analysis Prepared by : Joanna Gin / B. & P. / (916) 319-3301
FN: 0003089