BILL NUMBER: AB 650	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2013
	AMENDED IN ASSEMBLY  MARCH 20, 2013

INTRODUCED BY   Assembly Member Nazarian

                        FEBRUARY 21, 2013

   An act to add Section 10299.1 to the Public Contract Code,
relating to state government, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 650, as amended, Nazarian. State government: general services:
 the  Natural Gas Services Program.
   Existing law authorizes the Department of General Services to
contract with suppliers to obtain materials, supplies, equipment, and
services.
   This bill would require the director to operate the Natural Gas
Services Program, pursuant to which the Director of General Services
shall make the services of the department with respect to the
acquisition of natural gas and related services available, under
agreed upon terms and conditions, to any city, county, city and
county, district,  or  other local governmental body,
 or corporation empowered to expend   and to
nonprofit hospitals   and educational institutions that
expend  public funds, and shall enter into interagency
agreements for acquisition of natural gas and related services, as
defined.
   The bill would require agencies that are in the executive branch
of state government to use the department's natural gas program for
noncore gas purchases of natural gas. The bill would authorize the
department to hire employees as required for this program. The bill
would create the Department of General Services Natural Gas Services
Program  Account which would be continuously appropriated
  Fund, and would continuously appropriate that fund
 to the department for purposes of operating the Natural Gas
Services Program.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 10299.1 is added to the Public Contract Code,
to read:
   10299.1.  (a) Notwithstanding any other law, the director shall
operate the Natural Gas Services Program to consolidate and address
the needs of multiple state agencies for the procurement of natural
gas and related services.
   (b) Procurement of natural gas and related services is vital to
public sector facilities in California and, due to the volumes and
costs involved, this section authorizes the following:
   (1)  The director shall make the services of the department with
respect to the acquisition of natural gas and related services
available, under agreed upon terms and conditions, to any city,
county, city and county, district, or other local governmental body,
 or any corporation empowered to expend   and to
any nonprofit hospital or educational institution that expends 
public funds.
   (2) The department is authorized to enter into interagency
agreements with the entities listed in paragraph (1) for the
acquisition of natural gas and related services. The department may
enter into contracts, master agreements, multiple award schedules,
cooperative agreements, agreements with entities outside the state,
and other types of agreements that leverage the state's buying power
through the use of a competitive bidding process. The state shall not
incur financial responsibility in connection with the contracting of
nonstate agencies under this section.
   (3) The department may buy, sell, exchange, transfer, or otherwise
dispose of natural gas acquired by the department pursuant to this
section, and may recover the department's acquisition and other costs
to operate the program through customer charges or fees.
   (4) The department may enter into gas purchase transactions for a
term longer than five years, if specifically approved by the
director.
   (5) The program shall adjust to changes in customer requirements
and market conditions and create and manage an ongoing pool of gas
suppliers.
   (6) The department is authorized to provide additional services to
customers related to the environmental aspects of energy use and the
requirements related to greenhouse gas regulations, renewable energy
requirements, and similar programs and requirements.
   (7) Notwithstanding any other law, the department is not required
to include in contracts or other agreements for the purchase of
natural gas and related services entered into pursuant to this
section disabled veteran business enterprise requirements, unless the
department determines that the application of those provisions is
necessary to accomplish the purposes of this section.
   (c) Agencies that are in the executive branch of the state
government shall use the department's natural gas program for noncore
gas purchases of natural gas to ensure maximum participation
resulting in the best discounts and prices for the commodity. The
Director of General Services may allow exemptions to this
requirement.
   (d) The department may hire and appoint employees as required for
this program, at salary levels determined by the director to be
competitive to attract and retain persons with the necessary
expertise and skills. Prior to hiring or appointing an employee at a
salary in excess of a salary approved by the Department of Human
Resources (CalHR), the director shall submit a proposed salary to the
Director of Finance who shall submit it to the Legislature in
accordance with the annual Budget Act.
   (e) For purposes of this section, "natural gas" includes, but is
not limited to, natural gas, methane, biomethane, compressed natural
gas, liquefied natural gas, and other energy commodity that is
similar to natural gas, and related services, including, but not
limited to, gas storage, gas transportation, and forward purchases of
natural gas.
   (f) During any period in which a Budget Act has not been approved,
the department shall continue to receive payment transfers from
agencies that are not in the executive branch of the state government
and agencies that are in the executive branch of state government
that are able to pay because they operate with funds that are
continuously appropriated.  The department is specifically
authorized to pay program vendors when the Budget Act is delayed.

   (g) The department is authorized to charge, collect, and hold
funds from a customer that voluntarily requests prepaid long-term
natural gas supplies, for a period not to exceed 20 years.
   (h) The Department of General Services Natural Gas Services
Program  Account   Fund  is hereby
established in the State Treasury  , funds from which are to
be   . Notwithstanding Section 13340 of the Government
Code, the fund is hereby  continuously appropriated to the
department without regard to fiscal year, for the purposes of
operating the Natural Gas Services Program.
   (1) All revenues payable to the department for natural gas and
related services shall be deposited in this  account
  fund  . Any payments from this  account
  fund  shall only be made for those purposes
described in and consistent with this section.
   (2) The Natural Gas Services Program's customer fee revenues
cannot be shifted or borrowed from the  account 
 fund  .
   (3) If at the end of any fiscal year, there are unexpended
revenues, those revenues shall be retained in the  account
  fund  and reserved for future Natural Gas
Services Program expenses.