BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 172 (Eng)
          As Amended  May 27, 2011
          Majority vote 

           BUSINESS & PROFESSIONS       6-2APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hayashi, Allen, Butler,   |Ayes:|Fuentes, Blumenfield,     |
          |     |Eng, Hill, Ma             |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bill Berryhill, Hagman    |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Establishes the Reporting Transparency in Government 
          Internet Web site (Transparency Web site), to provide audit and 
          summary data regarding contracts valued at $5,000 or more to the 
          public.  Specifically,  this bill  :  

          1)Requires the California Technology Agency (CTA), or its 
            successor, to create and maintain a Transparency Web site, as 
            specified, which includes instructions for the public that 
            describe how a person may obtain more detailed information for 
            a contract.

          2)Exempts the State Lieutenant Governor, the Attorney General, 
            the Secretary of State, the State Treasurer or the Controller 
            (constitutional officers) from posting the required 
            information under this bill on the Transparency Web site if 
            the constitutional officer posts the required information on 
            his or her official Internet Web site.

          3)Requires a constitutional officer, if he or she determines 
            that information in a contract is exempt from disclosure 
            pursuant to the California Public Records Act (CPRA), to post 
            the following information on his or her official Internet Web 
            Site:

             a)   The contract number;








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             b)   The phrase "CPRA exemption claimed"; and,

             c)   Other identifying information sufficient to enable a 
               person to submit a request for the information pursuant to 
               the CPRA, for purposes of testing the exemption claimed for 
               the information.

          4)Requires the Secretary of CTA, when a constitutional officer 
            chooses to post the required information to his or her 
            official Internet Web site, to provide a clearly labeled link 
            to the constitutional officer's Internet Web site on the 
            Transparency Web site.

          5)Requires state agencies to post to the Transparency Web site 
            every audit of its operations finalized from January 1, 2009, 
            to December 31, 2011, by February 15, 2012.

          6)Requires state agencies to post to the Transparency Web site 
            every audit of its operations finalized from January 1, 2012, 
            and forward, within 15 calendar days of finalization.

          7)Defines "audit" to mean any review or evaluation performed by 
            a state agency on itself, or on the state agency 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 nongovernmental organization that 
            monitors or oversees the state agency and that has received 
            public funds.

          8)Requires the Department of General Services (DGS) and CTA to 
            assist state agencies with the requirements of this bill.

          9)Provides that this bill does not require the posting of 
            information contained in an audit or contract, including, but 
            not limited to:  the identity of any undisclosed expert 
            consultant, that is confidential pursuant to a court order, 
            the attorney-client privilege, or the 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.









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          10)Provides that this bill not be construed to limit the rights 
            of public access to information pursuant to the CPRA, and any 
            information withheld from posting shall be replaced with the 
            phrase, "CPRA exemption claimed."

          11)Requires DGS and CTA, by February 15, 2012, to post summary 
            data regarding any contract awarded by the state on or after 
            March 31, 2010, valued at $5,000 or more to the Transparency 
            Web site, including but not limited to:

             a)   The department name;

             b)   The contract or order number;

             c)   The total price;

             d)   The contract start and termination dates;

             e)   The supplier name;

             f)   Any special instructions;

             g)   The supplier classification codes;

             h)   The acquisition type;

             i)   The acquisition method;

             j)   The item total;

             aa)  The quantity;

             bb)  The description; and,

             cc)  The classification codes.

          12)Requires state agencies to post to the Transparency Web site 
            summary data regarding any contact it awarded from January 1, 
            2012, and forward that is valued at $5,000 or more, within 15 
            calendar days.

          13)Requires the Governor to post every statement of economic 
            interest and travel and expense report of its senior staff and 
            deputies, agency secretaries and undersecretaries, and 








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            department directors to the Transparency Web site.

          14)Makes legislative findings and declarations.

           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.

           FISCAL EFFECT  :   According to the Assembly Appropriations 
          Committee, no significant costs.

           COMMENTS  :  According to the author, "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."

          This bill is based upon the Governor's Executive Order S-20-09 
          of 2009, which expanded the Transparency 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.  

           
          Analysis Prepared by  :    Rebecca May / B.,P. & C.P. / (916) 
          319-3301 










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