BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1899 (Eng)
Hearing Date: 8/2/2010 Amended: 5/28/2010
Consultant: Bob Franzoia Policy Vote: G O 7-1
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BILL SUMMARY: AB 1899 would require the State Chief Information
Officer to create and maintain a Reporting Transparency in
Government (RTG) Internet Web site. This bill would require,
subject to specific exemptions, state agencies to post audits to
that Internet Web site. This bill would require the Department
of General Services and the State Chief Information Officer to
post specified summary data regarding contracts awarded by the
state to that Internet Web site. This bill would require the
office of the Governor to post specified financial statements
and reports to that Internet Web site. These requirements are
generally consistent with provision in two Executive Orders.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Information technology Minor, initial costs; unknown future
costs General/
hardware Special*
Additional workload to post Estimated $100 initially,
likely less ongoing General/
information Special*
* Technology Services Revolving Fund
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STAFF COMMENTS: This bill may meet the criteria for referral to
the Suspense File.
Executive Order S-08-09 required that with the assistance of the
Office of the Chief Information Officer, departments:
- On June 4, 2009, shall post to the RTG web site audits dating
back to January 1, 2008 and department web pages shall provide
easy access to audits of their operations.
- Starting June 12, 2009, financial and programmatic audits that
departments have done on their own operations and audits that
they have performed on other government entities dating back to
January 1, 2008, shall be posted to the RTG web site.
- Starting June 19, 2009, the Department of General Services and
the Office of the Chief Information Officer shall ensure that
all awarded contracts valued at $5,000 or more dating to March
2009, shall be placed on RTG web site.
Executive Order S-20-09, required that in addition to audits,
state agencies and departments shall take immediate action to
post to the RTG web site program reviews, monitoring and
accountability reports, evaluations, inspections, assessments
and studies of their operations dating back to January 1, 2008,
performed by outside entities with oversight responsibility of
their operations, or performed on their own or that they have
performed on government entities and any other non-governmental
organizations (including non-profits, community based
organizations, or private sector companies)
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AB 1899 (Eng)
that they monitor or oversee and who have received public funds.
Department web pages shall provide easy access to these
documents. Departments and agencies shall post future documents
to the RTG web site within 5 working days of finalization.
The Executive Orders were estimated to have minor, absorbable
costs. The provisions of this bill generally are similar to the
Executive Orders.
The Technology Services Revolving Fund was created to receive
all revenues from the sale of technology or technology services
to pay for the operating and other expenses of the OCIO and
costs associated with approved information technology projects,
and to establish reserves.
Staff notes Propositions 46 and 1C funds and federal funds are
made available through a competitive process based on factors
set forth in statute, and regulations or guidelines. None of
the funds are awarded through a competitive low bid process.
Information on awards may be found on the Department of Housing
and Community Development's website and the Governor's Bond
Accountability website. Staff recommends the bill be amended to
exempt those contracts awarded by a state agency that are funded
by either federal moneys or state bond moneys and where
information about the contracts is otherwise reported or posted
on a similar website as described within this bill that is
available for public use.
The value in posting the entirety of state contracts may not be
significant and could result in new information technology
hardware costs. Initially, adopting narrower requirements would
be the more cost effective approach. To that end, staff
recommends the following amendments:
Amendment 1
SECTION 1. The Legislature finds and declares all of the
following:
(e) Billions of dollars in state contracts are entered into each
year to purchase goods and services for the people of
California, and posting summary data regarding contracts on the
Internet is an effective way to help ensure that taxpayers are
getting the best value and services are being provided in an
efficient manner.
Amendment 2
SEC. 4. Section 11004.6 is added to the Government Code, to
read:
11004.6. (b) Within 15 calendar days of signing by all parties
to the contract, a state agency shall post to the state's
Reporting Transparency in Government Internet Web site any
summary data regarding contract it awarded from January 1, 2011,
and forward that is valued at five thousand dollars ($5,000) or
more.
Amendment 3
SEC. 5. Section 11004.7 is added to the Government Code, to
read:
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AB 1899 (Eng)
11004.7. The office of the Governor shall post every statement
of economic interest and travel and expense report of its staff,
agency secretaries, department heads, and any official under the
direct supervision of the Governor current senior staff and
deputies, agency secretaries, agency undersecretaries, and
department directors to the Reporting Transparency in Government
Internet Web site.
This bill is similar to AB 756 (Eng) 2009 which was vetoed with
the following message:
While I am supportive of greater transparency in government,
this legislation would be duplicative of current reporting
practices and increases workload and costs to departments at a
time when the state continues to experience a significant budget
shortfall. My Administration is currently implementing many of
the provisions of this legislation within the existing
appropriation of the Department of General Services to increase
transparency.