Bill Text: CA AB450 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California State University: food service contracts.

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Vetoed) 2011-10-08 - Vetoed by Governor. [AB450 Detail]

Download: California-2011-AB450-Amended.html

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BILL NUMBER: AB 450	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 13, 2011
	AMENDED IN SENATE  JUNE 28, 2011
	AMENDED IN ASSEMBLY  MAY 2, 2011

INTRODUCED BY   Assembly Member Wieckowski
   (Coauthors: Assembly Members Fuentes, Gatto, Mendoza, and
Portantino)
   (Coauthor: Senator Vargas)

                        FEBRUARY 15, 2011

   An act to amend Section 89036 of the Education Code, relating to
the California State University.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 450, as amended, Wieckowski. California State University:
audits.
   Existing law authorizes the Trustees of the California State
University to enter into agreements for the performance of acts or
for the furnishing of services, facilities, materials, goods,
supplies, or equipment, under certain conditions. The trustees are
required to prescribe policies and procedures for the acquisition of
services, facilities, materials, goods, supplies, or equipment,
subject to specified criteria.
   This bill would require the policies and procedures for the
acquisition of  food  services to ensure a service
contractor  , as defined, fully discloses to the
campus, auxiliary organization, or other unit of the California State
University all discounts, rebates, allowances, and incentives
received by the service contractor from its suppliers, as specified,
and to disclose and pay to the campus, auxiliary organization, or
other unit of the university the full amount of the discount, rebate,
or applicable credit, as specified. This bill would require the
policies and procedures for the acquisition of services be available
for review as part of any audit conducted under specified provisions.
The bill would require any necessary changes to the policies and
procedures for the acquisition of services be implemented upon the
renewal, extension, or amendment of an existing agreement or as part
of any new service agreement.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 89036 of the Education Code is amended to read:

   89036.  (a) (1) The trustees may enter into agreements with any
public or private agency, officer, person, or institution,
corporation, association, or foundation for the performance of acts
or for the furnishing of services, facilities, materials, goods,
supplies, or equipment by or for the trustees or for the joint
performance of an act or function or the joint furnishing of services
and facilities by the trustees and the other party to the agreement.

   (2) (A) Notwithstanding any other provision of law, the trustees
shall prescribe policies and procedures for the acquisition of
services, facilities, materials, goods, supplies, or equipment. The
policies and procedures of the trustees for the acquisition of
materials, goods, supplies, or equipment shall include competitive
means for obtaining best value while complying with legislative
intent regarding competitive bids or proposals as it is expressed in
Article 3 (commencing with Section 10300) of Chapter 2 of Part 2 of
Division 2 of the Public Contract Code, and may include the use of
financing arrangements.
   (B) The policies and procedures for the acquisition of  food
 services shall ensure that a service contractor fully discloses
to the California State University campus, auxiliary organization,
or other unit of the California State University all discounts,
rebates, allowances, and incentives received by the service
contractor from its suppliers. If the service contractor receives a
discount, rebate, allowance, or other incentive from any supplier,
the service contractor shall disclose and pay to the California State
University campus the full amount of the discount, rebate, or
applicable credit that is received based on the purchases made on
behalf of the California State University campus, auxiliary
organization, or other unit of the California State University.
Language stating this requirement shall be placed in agreements
covered by this section. All discounts, rebates, allowances, and
incentives shall be paid to the California State University campus,
auxiliary organization, or other unit of the California State
University during a mutually agreed upon time frame, and be available
for review as part of any audit conducted pursuant to Section 89045
or 12440.1 of the Government Code. Any changes required pursuant to
this section shall be implemented upon the renewal, extension, or
amendment of an existing agreement or as part of any new service
agreement.
   (3) The trustees may enter into agreements with the federal
government or any agency thereof in accordance with the procedures
prescribed by the federal government or agency in order to receive
the benefits of any federal statute extending benefits to the
California State University or to California State University
students, including, but not necessarily limited to, both of the
following:
   (A) Agreements with any agency of the federal government for the
education of persons in the service of the federal government.
   (B) Agreements with any agency of the federal government for the
education of veterans. These agreements shall provide for payment of
the maximum amount permitted under the act, or acts, of Congress
under which the agreement is entered into.
   (4) Notwithstanding any other provision of law, the trustees have
all power necessary to perform any acts, and comply with conditions,
required or imposed by the federal government in order to receive the
benefits. The trustees are vested with all necessary power and
authority to cooperate with any agency of the federal government in
the administration of any applicable act of Congress and rules and
regulations adopted thereunder.
   (b) Notwithstanding any other provision of law, the trustees have
all power necessary to award contracts to one or more contractors, at
any one or more campuses, for the collection of delinquent
educational loans required to be repaid under federal law.
   (c) As used in this section, the following terms have the
following meanings:
   (1) "Auxiliary organization" means those entities defined in
Section 89901.
   (2) "Rebate" includes any return of monetary value, including, but
not limited to, any volume discounts, allowances, or discount
purchase incentives. 
   (3) "Service contractor" includes a contractor providing food,
janitorial, laundry, maintenance, window cleaning, or landscape
services.