BILL ANALYSIS �
SB 975
Page 1
SENATE THIRD READING
SB 975 (Lieu)
As Amended June 25, 2014
Majority vote
SENATE VOTE :23-10
ADMINISTRATIVE REVIEW 10-1APPROPRIATIONS 12-5
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|Ayes:|Frazier, Achadjian, |Ayes:|Gatto, Bocanegra, |
| |Buchanan | |Bradford, |
| |Ian Calderon, Cooley, | |Ian Calderon, Campos, |
| |Gorell, Lowenthal, Medina | |Eggman, Gomez, Holden, |
| |Quirk-Silva, Salas | |Pan, Quirk, |
| | | |Ridley-Thomas, Weber |
|-----+--------------------------+-----+--------------------------|
|Nays:|Mansoor |Nays:|Bigelow, Donnelly, Jones, |
| | | |Linder, Wagner |
| | | | |
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SUMMARY : Requires every bidder on a state personal services
contract to complete, under penalty of perjury, a standardized
questionnaire as to whether the bidder has ever violated state
tax law or laws and regulations related to health and safety,
labor and employment, or licensing of the contractor's
employees, worksite, bid and contract, and if so, to explain the
circumstances. Prohibits awarding a contract to a bidder who
does not complete the questionnaire.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs for the Department of General Services (DGS) to
develop the standard questionnaire would be minor and
absorbable. To the extent prospective contractors elect not to
compete for a state contract rather than take the effort to
complete a questionnaire, for which they could be subject to
perjury charges, there will be less competition on state
contracts, which tends to increase contract prices. This would
not likely occur often, but given the large volume of state
contracting, additional contract costs could be significant. In
addition, depending on the information provided by prospective
contractors as required, there could be an increase in bid
protests, which would increase contract administration costs for
DGS and state contracting agencies.
SB 975
Page 2
COMMENTS : According to the author, this bill, sponsored by the
American Federation of State, County, and Municipal Employees,
would bring transparency to the state contract bidding process
by requiring prospective contractors to disclose if they have
ever violated state laws or safety regulations. The author
states that, if taxpayers are going to trust a for-profit
company to provide vital services, the company should show it
can be trusted. The sponsor adds that it is important to know
the track records of all companies with which the state or a
local agency is contracting, to ensure that only law abiding
companies receive taxpayer dollars for public contracts.
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600
FN: 0004833