BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2403
                                                                  Page  1

          Date of Hearing:   May 19, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2403 (Strickland) - As Amended:  April 26, 2010 

          Policy Committee:                              Business and  
          Professions  Vote:                            11 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill 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.  
          Specifically, this bill: 

          1)Requires each state agency, on or before February 15, 2011, to  
            post every audit of its operations that was finalized between  
            January 1, 2008, to January 31, 2010, to the state's  
            transparency website. 

          2)After January 1, 2011, each agency, within 15 days of  
            finalization, is required to post any audits. 

          3)Requires DGS and the OCIO, on or before February 15, 2011, to  
            post any contract awarded between January 1, 2008, and  
            December 31, 2010, to the transparency website. 

          4)After January 1, 2011, DGS and the OCIO are required, within  
            15 days of signing, to post any contracts with a total value  
            over $5,000. 

          5)Specifies the contract information that is required to be  
            posted on the transparency website. 

          6)Requires the governor's office to post to the transparency  
            website 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. 








                                                                  AB 2403
                                                                  Page  2


           FISCAL EFFECT  

          1)Posting all contracts dating back to January 1, 2008, would  
            require the acquisition of a new computer server costing  
            approximately $700,000 GF.

          2)Workload associated with all departments and agencies  
            gathering and posting the required contracts would cost in  
            excess of $300,000 GF.

           COMMENTS  

           1)Rationale  . This bill is intended to codify the governor's  
            executive order (S-08-09 and S-20-09) and also require more  
            detailed information regarding state contracts be made  
            viewable on the transparency website. 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."  

           2)Related Legislation  . Currently AB 1899 (Eng), codifies the  
            same governor's executive orders that this legislation seeks  
            to codify.  Specifically, the bill 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 on this committee's Suspense File.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081