BILL ANALYSIS �
AB 976
Page 1
ASSEMBLY THIRD READING
AB 976 (Hall)
As Amended April 25, 2011
Majority vote
UTILITIES & COMMERCE 12-2
APPROPRIATIONS 17-0
-----------------------------------------------------------------
|Ayes:|Bradford, Fletcher, |Ayes:|Fuentes, Harkey, |
| |Buchanan, Fong, Fuentes, | |Blumenfield, Bradford, |
| |Furutani, Achadjian, | |Charles Calderon, Campos, |
| |Roger Hern�ndez, Ma, | |Davis, Donnelly, Gatto, |
| |Nestande, Skinner, | |Hall, Hill, Lara, |
| |Swanson | |Mitchell, Nielsen, Smyth, |
| | | |Solorio, Wagner |
|-----+--------------------------+-----+--------------------------|
|Nays:|Huffman, Knight | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Prohibits consultants advising Community Choice
Aggregators (CCA) from bidding on CCA contracts. Specifically,
this bill : prohibits a CCA from purchasing electricity or energy
services from an entity that provided analysis, advice,
consulting, or other services to CCA prior to CCA notifying that
CCA service will commence.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, negligible costs for local entities to comply with
the bill's prohibition.
COMMENTS : According to the author, firms hired by local
governments to make recommendations to local governments on
forming a CCA often seek contracts to implement their project
recommendations. These firms can provide local government
information on the potential costs and benefits of forming a
CCA. The author points out that there is a conflict of interest
that generally would benefit the consulting firm and that
current law does not adequately protect the interests of the
taxpayers or ratepayers affected.
State law currently prohibits an entity who has been awarded a
consulting services contract, from a state agency, from
AB 976
Page 2
submitting a bid for, receiving an award for a contract for the
provision of services, procurement of goods or supplies, or any
other related action which is required, suggested, or otherwise
deemed appropriate in the end product of the consulting services
contract.
San Francisco Public Utilities Commission was initially opposed
to this bill but has withdrawn its opposition.
Analysis Prepared by : Susan Kateley / U. & C. / (916)
319-2083
FN: 0000731