BILL NUMBER: AB 1364	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 2, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2009
	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, 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 is, or may be, unable to comply with the terms of that
agreement because of the suspension of interim funding for projects
and contracts by the Pooled Money Investment Board on or after
December 18, 2008, shall, with the consent of the grant recipient,
have the authority to either renegotiate, modify, or eliminate the
deadlines and timetables for and deliverables within the grant
agreement in order to address the suspension 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.


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

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

   16482.  (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 is, or may be, unable
to comply with the terms of that agreement because of the suspension
of interim funding for projects and contracts by the Pooled Money
Investment Board on or after December 18, 2008, shall, with the
consent of the grant recipient, have authority to do either of the
following:
   (1) Renegotiate, modify, or eliminate the deadlines and timetables
for deliverables within the grant agreement in order to address the
suspension.
   (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.