BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1364
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1364 (Evans)
          As Amended  August 17, 2009
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |76-0 |(May 28, 2009)  |SENATE: |39-0 |(September 2,  |
          |           |     |                |        |     |2009)          |
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          Original Committee Reference:   B. & P.

          SUMMARY  :  Permits a state agency that has entered into a grant  
          agreement for the expenditure of state bond funds to  
          renegotiate, modify, or eliminate the terms of that agreement  
          under certain specified circumstances.   

          The Senate amendments  :  

           1)Specify that a state agency that has entered into a grant  
            agreement for the expenditure of state bond funds and is  
            unable to comply with the terms of that agreement because of  
            the suspension of interim funding for projects by the Pooled  
            Money Investment Board on or after December 18, 2008,  has the  
            authority to:

        a)   Renegotiate, modify or eliminate the deadlines and timetables  
               for deliverables in order to address the suspension; and,

            b)   Terminate the grant agreement if no grant funds have yet  
                   been delivered thereunder.

          2)Specify that nothing in this bill shall modify any act under  
            which bonds are authorized to be issued or the State General  
            Obligation Bond Law, as specified.

          3)Specify that the authority granted under this bill is  
            supplemental and in addition to any other authority provided  
            under law, and that nothing in this bill modifies any existing  
            grant agreement rights and obligations.
           
          EXISTING LAW  permits the modification of contracts by state  
          agencies in specified instances.  

          AS PASSED BY THE ASSEMBLY  , this bill is substantially similar to  








                                                                  AB 1364
                                                                  Page  2

          the version approved by the Senate.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


           Analysis Prepared by  :    Rebecca May / B. & P. / (916) 319-3301 

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