BILL ANALYSIS Ó AB 2746 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2746 (Obernolte) - As Amended March 28, 2016 ----------------------------------------------------------------- |Policy |Utilities and Commerce |Vote:|14 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the California Public Utilities Commission (PUC) to adopt procedures authorizing the submission of electronic signatures and documents by all parties on contracts involving the PUC. AB 2746 Page 2 FISCAL EFFECT: Assuming the PUC will use the California Civil Code definition of electronic signature, all costs are minor and absorbable. COMMENTS: Rationale. State agencies generally rely on the Department of General Services (DGS) State Contracting Manual when soliciting or entering into a contract to provide services. Statutory authority for the competitive and non-competitive procurement of information and non-information technology goods and services for state government resides within DGS. The DGS State Contracting Manual requires contracts to have original handwritten signatures. At the PUC, contracts often involve numerous signatories in a various locations. Getting handwritten signatures from all of these individuals requires contract documents to be mailed to each party. The PUC contracts with consultants to provide services for which specific expertise is required or for which staff is unavailable. The PUC has stated in internal procedure documents that it uses the state's contracting process for all contracts it develops or manages. AB 2746 Page 3 According to the author's office, this process is inefficient and difficult to track, costly, and creates opportunities for the documents to become misplaced in the process in which case the process would start over. This bill clarifies the PUC's ability to use electronic signatures and requires the PUC to adopt procedures to allow the submittal of electronic signatures and documents. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081