BILL ANALYSIS
AB 2403
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Date of Hearing: May 4, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2403 (Strickland) - As Amended: April 26, 2010
SUBJECT : State government: audits and contracts: reporting.
SUMMARY : Requires state agencies, the Department of General
Services (DGS), and the office of the State Chief Information
Officer (OCIO) to post specified audits and contracts to the
state's Reporting Transparency in Government Internet Web site
(Reporting Web site). Specifically, this bill :
1)Requires state agencies, on or before February 15, 2011, to
post to the Reporting Web site every audit of its operations
finalized from January 1, 2008, to December 31, 2010.
2)Requires state agencies to post to the Reporting Web site
within 15 calendar days every audit of its operations
finalized on and after January 1, 2011.
3)Requires DGS and OCIO to post any state contract awarded from
January 1, 2008 though December 31, 2010, valued at $5,000 or
more, to the Reporting Web site by February 15, 2011.
4)Requires a state agency to post to the Reporting Web site
within 15 calendar days of the signing of a contract valued at
$5,000 or more, and awarded on and after January 1, 2011.
5)Requires DGS and the OCIO to post the following information
for each contract entered into, renewed, or amended by any
state entity commencing January 1, 2011:
a) The name and contact information of the entity or person with
which the state proposes to contract;
b) The organizational character of the entity, whether public or
private and whether for profit or nonprofit;
c) The specific purpose or purposes of the contract;
d) The total value of the contract;
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e) The distribution of the allocated funds for each purpose
of the contract; and,
f) A list of all parties who have an interest in the entity,
including owners, board or directors and officers,
auditors, internal and external accountants, and all
managers who will receive or manage state funds.
6)Requires the office of the Governor to 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 to the Reporting Web
site.
7)Requires DGS and the OCIO to assist state agencies in
complying with the requirements of this bill.
8)States that this bill does not require the posting of
information in an audit, including the identity of any
undisclosed expert consultant, that is confidential pursuant
to a court order, attorney client privilege, or attorney work
product exception; or information that would jeopardize peace
officer safety, criminal intelligence information, ongoing
investigatory activities, any security procedure, or is
otherwise prohibited by law.
9)States that nothing in this bill should be construed to limit
the rights of the public to access information pursuant to the
California Public Records Act (CPRA). Any information
withheld from posting shall be replaced with the phrase, "CPRA
exemption claimed."
10)Defines "audit" to mean any review or evaluation performed by
a state agency on itself or by another entity, including, but
not limited to, the Bureau of State Audits, the Controller,
the Department of Finance, a federal agency with oversight
responsibility of the operations of the state agency, or any
other nongovernmental organization that monitors or oversees
the state agency and that has received public funds.
11)Makes legislative findings and declarations.
EXISTING LAW requires public records to be open to public
inspection, subject to specific exemptions.
AB 2403
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FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office,
"Currently, very important public information, such as state
contracts and audit reports are not easily accessible to the
public. The [Reporting] Web site is a centralized location that
offers easy access to the public, which enhances the
transparency and accountability of State agencies and
departments. Such transparency and accountability are necessary
for the credibility, reputation, and capacity of State agencies
to serve their function in California.
"AB 2403 codifies the Governor's executive order (s-08-09 and
s-20-09) and also requires more detailed information regarding
state contracts to be made viewable on the transparency
website?. AB 2403 is a good government measure that will expose
and prevent potential waste and abuse in state government.
Background . This bill is based upon the Governor's Executive
Order S-20-09 of 2009, which expanded the Reporting Web site to
include all program reviews, monitoring and accountability
reports, evaluations, inspections, assessments and studies of
audits conducted by agencies, departments and outside entities
dating back to January 1, 2008. Additionally, the Governor
directed all agencies and departments to provide access to these
documents by ensuring all documents are posted to the Reporting
Web site no later than five working days after completion.
Related legislation . AB 1899 (Eng) of 2010 requires state
agencies, DGS, and the OCIO to post specified audits and
contracts to the state's Reporting Web site. This bill is
currently pending the Assembly Appropriations Committee.
Previous legislation . AB 756 (Eng) of 2009 required a state
agency 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 entered into by the
agency. Additionally, the bill required the Director of DGS to
maintain the Internet Web site and to establish the publishing
of the contract listing information. The bill was vetoed by the
Governor, who stated, "While I am supportive of greater
transparency in government, this legislation would be
duplicative of current reporting practices and increases
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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 DGS to
increase transparency."
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301