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