BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1651 (Obernolte) - Public Utilities Commission: contracts
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|Version: June 20, 2016 |Policy Vote: E., U., & C. 9 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 1, 2016 |Consultant: Narisha Bonakdar |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1651 requires the California Public Utilities
Commission (CPUC) to monthly publish on its website information
about each contract the CPUC enters into, as well information
about every contract entered into at the direction of the CPUC.
It also requires CPUC to publish Department of General Services'
(DGS) audits of CPUC's contracting practices on the CPUC's
website.
Fiscal Impact:
Approximately $150,000 annually (Utilities Reimbursement
Account) to the CPUC.
Background:1)
CPUC Contracts. DGS has the statutory authority for the
competitive and non-competitive procurement of information
technology goods and services for the state. In most cases,
state agencies rely on the State Contracting Manual when
AB 1651 (Obernolte) Page 1 of
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soliciting and/or entering into a contract to provide services.
Under current law, DGS has the authority to delegate authority
to any state agency to acquire certain types of acquisitions.
DGS has delegated authority to the CPUC to award contracts for
information and non-information technology goods without
competitive bidding if the amount of the contract does not
exceed $25,000.
In 2000, the State Auditor determined that the CPUC has not
adequately developed or managed many of its contracts. The
State Auditor further found lack of invoice review, resulting in
potentially hundreds of thousands of improper charges. In
response to the issues raised in the report, the CPUC announced
it will now require contract mangers to use competitive bid
processes and will follow the State Contracting Manual.
Proposed Law:
This bill:
1)Requires the CPUC, at least monthly, to publish and make
available free of charge on its website the following:
Information about each contract that the CPUC enters
into.
The names, addresses, and points of contact of the
parties to the contract.
The goods and services requested, as applicable.
The contract value.
1)As of July 1, 2017, makes the preceding requirements of any
contract entered into at the direction of the CPUC.
2)Requires the CPUC to make available on its website DGS audits
of its contracting practices.
Staff
Comments:1) According to the author, one of the CPUC's core functions is
to foster a fair contracting process that ensures public
utilities are providing ratepayers with reliable service at
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reasonable rates. This bill provides the public with the
information needed to keep the CPUC accountable.
This bill is sponsored by the CPUC. According to the sponsor,
an audit to examine CPUC contracting practices was approved by
the Joint Legislative Audit Committee on January 13, 2016.
While the California State Auditor's report is still pending,
this bill will help ensure maximum transparency moving forward.
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