BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 172|
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THIRD READING
Bill No: AB 172
Author: Eng (D), et al.
Amended: 9/1/11 in Senate
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 9-4, 6/28/11
AYES: Wright, Calderon, Corbett, De Le�n, Evans,
Hernandez, Padilla, Wyland, Yee
NOES: Anderson, Berryhill, Cannella, Strickland
SENATE APPROPRIATIONS COMMITTEE : 6-3, 7/11/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
ASSEMBLY FLOOR : 53-23, 6/1/11 - See last page for vote
SUBJECT : State agencies: information: Internet Web
site
SOURCE : American Federation of State, County, and
Municipal
Employees, AFL-CIO
Service Employees International Union, Local
1000
DIGEST : This bill establishes the Reporting Transparency
in Government Internet Web site to provide audit and
summary data regarding contracts valued at $5,000 or more
to the public.
CONTINUED
AB 172
Page
2
Senate Floor Amendments of 9/1/11 (1) specify that the
Reporting Transparency in Government Internet Web site
shall remain in operation only until the Financial
Information System for California is operative and
available for public use; (2) specify that the Department
of General Services and the California Technology Agency
shall post to the Internet Web site every statement of
economic interest and travel expense report for the
Governor's senior staff and deputies, and for agency
secretaries, undersecretaries, and department directors;
and (3) provide that the information required to posted to
the Internet under the terms of the bill shall be
maintained for three years or for the entire length of the
contract, as the case may be
ANALYSIS : 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.
This bill establishes the Reporting Transparency in
Government Internet 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 to create and
maintain a Reporting Transparency in Government Internet
Web site, as prescribed.
2. Requires, subject to specific exemptions, state agencies
to post specified audits to that Internet Web site for a
period of three years, and would require the Department
of General Services, the California Technology Agency,
and other state agencies to post specified summary data
regarding contracts awarded by the state to that
Internet Web site, for the length of the contract.
3. Requires the Department of General Services and the
California Technology Agency to post to the Internet Web
site, pursuant to policies and procedures developed by
the office of the Governor to post, specified financial
statements and reports to that Internet Web site, for
the entire term of the Governor for whose administration
the information has been reported.
AB 172
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3
4. Exempts certain state officers from the requirement of
posting the information to the Reporting Transparency in
Government Internet Web site, if that officer posts the
required information to his/her official Internet Web
site, as specified.
5. Specifies that the Reporting Transparency in Government
Internet Web site shall only remain in operation until
the Financial Information System for California is
operative and available for public use.
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.
Comments :
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 Web sites 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."
AB 172
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4
Prior Legislation
AB 1899 (Eng), 2009-10 Session, 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 Web site. Subsequently, this bill was vetoed by
Governor Schwarzenegger, the veto message states, "I
strongly support the goal of transparency in government and
believe that posting information online is a simple method
of achieving this goal and allowing citizens information
about how their tax dollars are spent. For that reason I
have issued executive orders directing posting of this type
of material to the Reporting Transparency in Government Web
site. As such, this bill is not necessary."
AB 756 (Eng), 2009-10 Session, would have required 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. (Vetoed)
AB 2603 (Eng), 2007-08 Session, 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), 2007-08 Session, 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), 2007-08 Session, 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.)
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
AB 172
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According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14
Fund
Summary contract dataUnknown, likely minor costs annually
General/
& information postingin to any one fund while the Reporting
Special*
Transparency in Government orders
are effective; likely minor long term
costs
*Departmental costs; similar costs to the Technology
Services Revolving Fund, a reimbursement account
SUPPORT : (Verified 9/1/11)
American Federation of State, County and Municipal
Employees,
AFL-CIO (co-source)
Service Employees International Union, Local 1000
(co-source)
Californians Aware
California Labor Federation, AFL-CIO
California State Employees Association
Professional Engineers in California Government
ARGUMENTS IN 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."
AB 172
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6
ASSEMBLY FLOOR :
AYES: Alejo, Allen, Ammiano, Atkins, Beall, Block,
Blumenfield, Bonilla, Bradford, Brownley, Buchanan,
Butler, Charles Calderon, Campos, Carter, Cedillo,
Chesbro, Davis, Dickinson, Eng, Feuer, Fletcher, Fong,
Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall,
Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman,
Lara, Bonnie Lowenthal, Ma, Mendoza, Mitchell, Monning,
Nestande, Pan, Perea, Portantino, Skinner, Solorio,
Swanson, Torres, Wieckowski, Williams, Yamada, John A.
P�rez
NOES: Achadjian, Bill Berryhill, Conway, Cook, Donnelly,
Beth Gaines, Grove, Hagman, Halderman, Harkey, Jones,
Knight, Logue, Mansoor, Miller, Morrell, Nielsen, Norby,
Olsen, Silva, Smyth, Valadao, Wagner
NO VOTE RECORDED: Garrick, Gorell, Jeffries, V. Manuel
P�rez
PQ:do 9/1/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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