BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  AB 
          172
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Bill Analysis


          AB 172  Author:  Eng
          As Amended:  May 27, 2011
          Hearing Date:  June 28, 2011
          Consultant:  Paul Donahue


           SUBJECT  :  State agencies; Internet website information

           SUMMARY  :  Establishes the Reporting Transparency in 
          Government Internet Website to provide audit and summary 
          data regarding contracts valued at $5,000 or more to the 
          public.

           Existing law  :  The Public Records Act (PRA) requires public 
          records to be open to public inspection, subject to 
          specific exemptions.

           This bill  :

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

          2) Exempts the State Lieutenant Governor, Attorney General, 
          Secretary of State, State Treasurer and Controller from 
          posting the required information on the Transparency 
          website if the constitutional officer posts the required 
          information on his or her official Internet website.

          3) Requires a constitutional officer, if he or she 
          determines that information in a contract is exempt from 
          disclosure pursuant to the PRA, to post the following 
          information on his or her official Internet website:

                a)   The contract number;





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

                c)   Other identifying information sufficient to 
               enable a person to submit a request for the 
               information pursuant to the PRA, 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 website, to provide a clearly labeled 
          link to the constitutional officer's Internet website on 
          the Transparency website.

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

          6) Requires state agencies to post to the Transparency 
          website every audit of its operations completed from 
          January 1, 2012, and thereafter, within 15 calendar days of 
          completion.

          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 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 PRA, 
          and any information withheld from posting shall be replaced 
          with the phrase, "PRA 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 website, which shall include:

                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 and method;

               i)   The item totals, including the quantity, 
               description and classification codes.
          12) Requires state agencies to post to the Transparency 
          website 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 department directors to the 
          Transparency website.

          14) Makes legislative findings and declarations.

           COMMENTS  :
          
          1)  Purpose of the bill  :  According to the author's office, 
          "AB 172 is intended to ensure transparency in state 
          contracts by requiring that information concerning 




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          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."

          2)  Background  : This bill is based upon the Governor's 
          Executive Order S-20-09 of 2009, which expanded the 
          Reporting Website 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.  

          3)  Support  :  The sponsor states that, "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 these 
          requirements in law."

          4)  Related legislation  :

          SB 252 (Vargas, 2011) requires privatization contractors, 
          as defined, to file with the contracting agency, a copy of 




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          each subcontract or amendment to a subcontract executed 
          under the privatization contract.  Requires the contracting 
          agency to maintain the subcontract or amendment to the 
          subcontract as a public record pursuant to the California 
          Public Records Act. (Pending in Assembly G.O. committee)

          AB 1899 (Eng, 2010) would have required 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 Website. 
          (Vetoed)

          AB 756 (Eng, 2009) would have required each state agency to 
          provide a link to a centrally located and accessible 
          state-run Internet website that includes a list of personal 
          and consulting services contracts.  (Vetoed)

          AB 2603 (Eng, 2008) would have required state agencies to 
          annually prepare a report listing personal services and 
          consulting services contracts entered into during the 
          previous fiscal year.  (Held in Senate Appropriations 
          Committee)

          SB 1331 (Oropeza, 2008) would have required 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 above $5000.  (Held in Senate Rules Committee)

          SB 786 (Oropeza, 2007) would have required 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.  
          (Held in Senate Appropriations Committee.

           SUPPORT:   

          American Federation of State, County and Municipal 
          Employees, AFL-CIO
          California Labor Federation, AFL-CIO
          Professional Engineers in California Government
          Service Employees International Union, Local 1000 (sponsor)

           OPPOSE:   

          None on file




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           FISCAL COMMITTEE:   Senate Appropriations Committee



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