BILL NUMBER: AB 2684	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Emmerson

                        FEBRUARY 19, 2010

   An act to amend Section  5800   5956.5 
of the Government Code, relating to  local securities.
  infrastructure financing. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2684, as amended, Emmerson.  Local securities: sales.
  Infrastructure financing: contract selection. 

   Existing law requires the governmental agency soliciting proposals
and entering into agreements with private entities for the studying,
planning, design, developing, financing, construction, maintenance,
rebuilding, improvement, repair, or operation, or any combination
thereof, by private entities for fee-producing infrastructure
projects to ensure that the contractor is selected pursuant to a
competitive negotiation process, which must use as the primary
selection criteria, the demonstrated competence and qualifications
for the studying, planning, design, developing, financing,
construction, maintenance, rebuilding, improvement, repair, or
operation, or any combination thereof, of the facility.  
   This bill would instead require the governmental agency to use as
a primary selection criterion, the demonstrated competence and
qualifications of the private entity to perform the services required
under the agreement, including prior experience in performing
similar services.  
   Existing law regulates the sale of securities by local entities,
including cities, counties, and public districts. Existing law
defines "nonprofit corporation," in this regard, as a nonprofit
corporation that proposes to aid any public body by issuing
securities to finance public projects.  
   This bill would make a nonsubstantive, technical change in these
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 5956.5 of the  
Government Code   is amended to read: 
   5956.5.  Notwithstanding Chapter 10 (commencing with Section 4525)
of Division 5, or Part 2 (commencing with Section 10100) or Part 3
(commencing with Section 20100) of Division 2 of the Public Contract
Code, the governmental agency soliciting proposals and entering into
agreements with private entities for the studying, planning, design,
developing, financing, construction, maintenance, rebuilding,
improvement, repair, or operation, or any combination thereof, by
private entities for fee-producing infrastructure projects shall
ensure that the contractor is selected pursuant to a competitive
negotiation process. Projects may be proposed by the private entity
and selected by the governmental agency at the discretion of the
governmental agency. Projects may be proposed and selected
individually or as part of a related or larger project. The
competitive negotiation process shall utilize, as  the
primary selection criteria, the demonstrated competence and
qualifications for the studying, planning, design, developing,
financing, construction, maintenance, rebuilding, improvement,
repair, or operation, or any combination thereof, of the facility
  a primary selection criterion, the demonstrated
competence and qualifications of the private entity to perform the
services required under the agreement, including prior experience in
performing similar services  . The selection criteria shall also
ensure that the facility be operated at fair and reasonable prices
to the user of the infrastructure facility services. The competitive
negotiation process shall not require competitive bidding. The
competitive negotiation process shall specifically prohibit practices
that may result in unlawful activity including, but not limited to,
rebates, kickbacks, or other unlawful consideration, and shall
specifically prohibit governmental agency employees from
participating in the selection process when those employees have a
relationship with a person or business entity seeking a contract
under this section that would subject those employees to the
prohibition of Section 87100. Other than these criteria and
applicable provisions related to providing security for  the
  any required  construction and completion of the
facility, the governmental agency soliciting proposals is not subject
to any other provisions of the Public Contract Code  or
  ,  this code  , or any other statutory
provision  that relates to public procurements. 
  SECTION 1.    Section 5800 of the Government Code
is amended to read:
   5800.  As used in this chapter, "nonprofit corporation" means any
nonprofit corporation formed under the Corporations Code, or
otherwise, which proposes to aid any public body by issuing
securities to finance one or more public projects.