BILL ANALYSIS �
AB 172
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Date of Hearing: April 5, 2011
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 172 (Eng) - As Amended: March 31, 2011
SUBJECT : Public contracts: information: Internet Web site.
SUMMARY : Requires state agencies to provide a link to a
centrally located and accessible state-run Internet Web site
(Web site) that includes a list of the personal services and
consulting services contracts, as defined, entered into by the
agency. Specifically, this bill :
1)Requires each state agency to provide a link to the Web site
that includes a listing of the personal services contracts and
consulting services contracts that it entered into during the
fiscal year.
2)Requires the director of the Department of General Services
(DGS) to maintain the Web site and establish publishing of the
contract listing information, as specified, and authorizes the
director to use the services of any state agency, as defined.
3)Specifies that contract listings 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) Covering the following broad category names:
i) Architectural, engineering, and environmental
services and consulting services;
ii) Information technology personal services and
consulting services; or,
iii) All other contracts that include personal services
and consulting services.
4)Requires the contract listings to include the following
information:
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a) The name and license, registration, certification, or
identification number of each contractor, as well as
whether the contractor is a for profit, nonprofit, small
business, microbusiness, disabled veteran, or nonprofit
veteran's service agency;
b) The statutory basis for the authorization of each
contract, including, if relevant, any applicable condition
permitting personal services contacts, as specified;
c) The duration of each contract;
d) The number of amendments to each contract and the number
of renewals of each contract, where applicable;
e) The reason why the low bid was not accepted, if
applicable;
f) The reason for noncompetitive bidding, if applicable;
g) Starting January 1, 2013:
i) The total amount of the contract allocation 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. In a
time and material contract, staffing levels shall also be
described or accounted for in personnel years or full
time equivalent terms. In deliverable based contracts,
average staffing levels and bill rates shall be listed on
the Web site described as follows:
(1) 90 days after the completion of the contract;
or,
(2) 90 days after June 30 of each year until
completion of the contract, for a contract of a term
of more than one year.
5)Requires contractors, starting January 1, 2013, to
electronically provide to state agencies all of the staffing
and cost information, as specified, in a useful and usable
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manner, 60 days after the completion of the contract, and, for
a contract of a term of more than one year, 60 days after June
30, of each year until completion of the contract. Requires
state agencies to make this information available to the
director of DGS, as specified.
6)Provides that, starting January 1, 2013, failure by
contractors to provide the above staffing and cost information
shall be deemed a material breach of contract. Doing so shall
be ineligible for any future personal services contracts and
consulting services contracts, and payments for any ongoing
contracts shall cease until the required information is
provided.
7)Provides, for contracts solicited after January 1, 2012, that
a summary of the contracts shall be posted within 30 business
days of the contract being signed by all parties between July
1, 2013, and January 1, 2014, and after January 1, 2014, the
summary of contracts shall be posted within 15 business days
of the contract being signed by all parties.
8)Requires a summary for contracts solicited after January 1,
2012, entered into by a special fund agency, as determined by
DGS in consultation with the Department of Finance, to be
posted on and after July 1, 2012.
9)Provides that this bill does not require the posting of
information in a contract, 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 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.
10)Provides that this bill shall not be construed to limit the
rights of the public to access information pursuant to the
California Public Records Act, as specified.
11)Specifies that any inquires about a specific contract be
handled by the contracting state agency, as specified.
12)Exempts state agencies that are not required to report to the
State Contract and Procurement Registration System from the
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requirements of this bill.
13)Defines the following terms:
a) "Consulting services contracts" means services that:
i) Are of an advisory nature;
ii) Provide a recommended course of action or personal
expertise;
iii) Have an end product that is basically a transmittal
of information either written or verbal and that is
related to the governmental functions of state agency
administration and management and program management or
innovation; and,
iv) Are obtained by awarding a contract, a grant, or any
other payment of funds for services of the above type.
b) "Deliverables" means any contract, requisition, or
purchasing order for products or services that must be
completed and delivered as final products under the terms
of an agreement or contract. "Deliverables" do not include
public works contracts that do not specify actual cost of
direct labor at specified hourly rates or actual cost of
materials;
c) "Personal services contracts" means any contract,
requisition, or purchase order under which labor or
personal services is a separately identifiable element;
and,
d) "Time and material contract" means 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
charge for their installation or fabrication.
14)States legislative intent.
EXISTING LAW governs contracting between state agencies and
private contractors and sets forth requirements for the
procurement of supplies, materials, equipment, and services by
state agencies.
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FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "AB 172
is intended to ensure transparency in state contracts by
requiring that information concerning contractors who supply
consulting or personal services be available online in an easily
searchable data base. This information would be centrally
located with links from the websites of departments and
agencies. Currently 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 same reporting requirements
should apply for personal service and consulting contracts.
"During these difficult economic and budgetary times California
needs to examine every opportunity to cut costs without
impacting essential public services, make better use of state
workers, reduce government growth, and find ways to save
millions of dollars without raising taxes. AB 172 will help us
meet these goals by ensuring that our state government remains
open and transparent."
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.
Support . The sponsor of this bill, the Service Employees
International Union Local 1000, writes, "Currently 36 states
allow the public online access to track how state government
spends their taxpayer dollars in order to promote transparency
and cost-savings. California transparency is inadequate and
compares poorly to other states. The United States Public
Interest Research Group graded California's level of
transparency as a D, with 28 other states scoring higher on
their level of transparency. AB 172 will ensure transparency in
state personal services contracts by requiring departments to
report monetary expenditures and associated staffing levels
related to all personal service contracts. It ensures that
future administrations must provide transparency by placing
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these requirements in law."
Previous legislation .
AB 1899 (Eng) of 2010, requires state agencies, DGS, and the
office of the State Chief Information Officer to post specified
audits and contracts to the state's Reporting Transparency in
Government Internet Web site. This bill was vetoed.
AB 756 (Eng) of 2009, 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. This bill was vetoed.
AB 2603 (Eng) of 2008, requires state agencies to annually
prepare a report listing personal services and consulting
services contracts entered into during the previous fiscal year.
This bill was held in the Senate Appropriations Committee.
SB 1331 (Oropeza) of 2008, requires the Governor to prepare and
submit to the Legislature, along with the Governor's Budget, a
report that contains information regarding current and proposed
contracts for services in the amount of $5,001 or more, as
specified. This bill was held in the Senate Rules Committee.
SB 786 (Oropeza) of 2007, requires the Governor to submit with
the Budget Act a report that contains specified information
regarding current and proposed contracts for services in the
amount of $5,001 or more, as specified. This bill was held in
the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Service Employees International Union, Local 1000 (sponsor)
American Federation of State, County and Municipal Employees,
AFL-CIO
California Labor Federation
California State Employees Association
Californians Aware
Professional Engineers in California Government
Opposition
AB 172
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None on file.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301