BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1578
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1578 (Pan)
          As Amended  May 27, 2014
          Majority vote 

           ADMINISTRATIVE REVIEW    7-4    APPROPRIATIONS      12-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Frazier, Buchanan, Ian    |Ayes:|Gatto, Bocanegra,         |
          |     |Calderon, Cooley,         |     |Bradford,                 |
          |     |Lowenthal, Medina, Salas  |     | Ian Calderon, Campos,    |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Gorell, Hagman, Olsen,    |     |                          |
          |     |Wagner                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Requires, upon the full implementation of the  
          Financial Information System of California (FISCal) program,  
          that additional information about personal services contracts  
          that exceed $5,000, is made available to the public on the  
          FISCal Project Web site.  Specifically,  this bill  :  

          1)Requires the following information to be made available on the  
            Web site in a format that allows for searching and sorting:

             a)   The names of all subcontractors under a contract;

             b)   The annual amounts, by funding sources, paid or to be  
               paid under the contract for all fiscal years in which the  
               contract will be in effect; and 

             c)   The original amount of the contract and the total  
               projected cost of the contract or maximum cost of the  
               contract for all fiscal years in which the contract will be  
               in effect, by funding source.

          2)Requires the Department of Finance (DOF) to present contract  
            information in an annual Personal Services Contractor  
            Expenditure Budget accompanying the Governor's Budget.









                                                                  AB 1578
                                                                  Page  2


           EXISTING LAW  requires, upon the full implementation of FISCal,  
          that certain information about personal services contracts that  
          exceed $5,000 is made available to the public on the FISCal  
          Project Web site.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, incorporating additional data elements not currently  
          contemplated as part of FISCal could involve significant  
          additional one-time programming costs.  Some departments with  
          large numbers of contracts may incur significant cost to input  
          the additional data elements.  Annual costs to prepare and  
          publish the Personal Services Contractor Expenditure Budget  
          would probably not be significant

          COMMENTS  :  Current law, which was enacted by SB 335 (Yee),  
          Chapter 757, Statutes of 2013, requires upon the full  
          implementation of FISCal the public posting of certain  
          information about personal services contracts that exceed  
          $5,000.  FISCal is slated to be fully implemented by the end of  
          2017. 
          This bill requires the public posting of additional data on the  
          FISCal Web site.  Major changes from current law, under this  
          bill, require that the names of subcontractors and funding  
          sources for contracts are made publically available.  

          This bill also requires DOF to present an annual Personal  
          Services Contractor Expenditure Budget with the Governor's  
          Budget.  Current law does not require this additional reporting.  
              
           

          Analysis Prepared by  :    Scott Herbstman / A. & A.R. / (916)  
          319-3600 


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