BILL ANALYSIS �
Bill No: AB
1578
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Lou Correa, Chair
2013-2014 Regular Session
Staff Analysis
AB 1578 Author: Pan
As Amended: May 27, 2014
Hearing Date: June 24, 2014
Consultant: Paul Donahue
SUBJECT
Online database: Expenditures; Service contracts
DESCRIPTION
Requires, upon the full implementation of the Financial
Information System of California (FISCal) program, that
additional information about personal services contracts
above $5,000 is made available to the public on the FISCal
website. 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
AB 1578 (Pan) continued
Page 2
Budget.
EXISTING LAW
Requires, upon the full implementation of FISCal, that
certain information about personal services contracts that
exceed $5,000 be made available to the public on the FISCal
Project website.
BACKGROUND
Current law 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 website. 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.
PRIOR/RELATED LEGISLATION
AB 1575 (Pan), 2013-2014 Session. Requires all state
contracts for services to include quarterly performance
reports from the contractor, and allows agencies to cancel
a service contract for poor performance or illegal acts.
(On calendar today in Committee)
AB 1921 (Holden), 2013-2014 Session. Requires specified
service contracts between a state agency and a person or
company performing a governmental function to include
provisions requiring agency access to records held by the
contractor and notification that such records may be public
records. This bill also would require the contractor to
keep and maintain public records pertaining to the contract
and to provide the agency with access to such records as
provided in the California Public Records Act. (Pending in
AB 1578 (Pan) continued
Page 3
Senate Appropriations)
SB 335 (Yee), Chapter 757, Statutes of 2013. Would require
the Governor, upon implementation of the Financial
Information System for California (FISCal), to submit an
annual report to the Legislature detailing specific
information on current and proposed contracts for services
awarded by the state that are valued at $5,000 or more.
SUPPORT:
AFSCME
American Council of Engineering Companies
California Association of Professional Scientists
California Labor Federation, AFL-CIO
Courage Campaign
Professional Engineers in California Government
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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