BILL NUMBER: AB 1364	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 17, 2009
	AMENDED IN ASSEMBLY  APRIL 29, 2009

INTRODUCED BY   Assembly Member Evans
   (Principal coauthor: Senator Florez)

                        FEBRUARY 27, 2009

   An act to add Section 16482 to the Government Code, relating to
public contracts, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1364, as amended, Evans. Public contracts: state bonds: grant
agreements.
   Existing law permits the modification of contracts by state
agencies in specified instances.
   This bill would provide that, notwithstanding any other provision
of law, any state agency that has entered into a grant agreement for
the expenditure of state bond funds where the state agency or grant
recipient  has   is,  or may be  ,
 unable to comply with the terms of that agreement because of
the suspension of  programs   interim funding
for projects and contracts  by the Pooled Money Investment Board
 as described in California Department of Finance Budget
Letter 08-33   on or after December 18, 2008, 
shall, with the consent of the grant recipient, have the authority to
either renegotiate  the   , modify, or
eliminate the  deadlines and timetables for and deliverables
within the grant agreement  that may not be met because of
that   in order to addres   s the 
suspension  in order to preserve the validity of the
agreement or to invalidate the grant agreement   or to
terminate the grant agreement if no grant funds have yet been
delivered thereunder. The bill would specify that it does not modify
any act under which bonds are authorized to be issued or the State
General Obligation Bond Law  .
   This bill would declare that it would take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 16482 is added to the Government Code, to read:

   16482.   Notwithstanding   (a)  
  Subject to subdivisions (b) and (c), and notwithstanding
 any other provision of law, any state agency that has entered
into a grant agreement for the expenditure of state bond funds where
the state agency or grant recipient  has   is,
 or may be  ,  unable to comply with the terms of that
agreement because of the suspension of  programs 
 interim funding for projects and contracts  by the Pooled
Money Investment Board  as described in California Department
of Finance Budget Letter 08-33   on or after December
18, 2008,  shall, with the consent of the grant recipient, have
authority to do either of the following: 
   (a) Renegotiate 
    (1)     Renegotiate, modify, or eliminate
 the deadlines and timetables for deliverables within the grant
agreement  that may not be met because of   in
order to address  the suspension  in order to preserve
the validity of the agreement  . 
   (b) Invalidate the grant agreement.  
   (2) Terminate the grant agreement if no grant funds have yet been
delivered thereunder.  
   (b) Nothing in this section shall modify any act under which bonds
are authorized to be issued or the State General Obligation Bond Law
(Chapter 4 (commencing with Section 16720) of Part 3 of Division 4
of Title 2 of the Government Code).  
   (c) The authority granted under this section is supplemental and
in addition to any other authority provided under law. Nothing in
this section, in and of itself, modifies any existing grant agreement
rights and obligations. 
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to permit state agencies to take immediate action to make
needed revisions to agreements, it is necessary for this act to take
effect immediately.