BILL ANALYSIS �
AB 976
Page 1
GOVERNOR'S VETO
AB 976 (Hall)
As Amended August 6, 2012
2/3 vote
-----------------------------------------------------------------
|ASSEMBLY: |62-9 |(May 31, 2011) |SENATE: |27-9 |(August 22, |
| | | | | |2012) |
-----------------------------------------------------------------
-----------------------------------------------------------------
|ASSEMBLY: |64-9 |(August 27, | | | |
| | |2012) | | | |
-----------------------------------------------------------------
Original Committee Reference: U. & C.
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.
The Senate amendments make technical chances, moving the
provisions in this bill from the Government Code to the Public
Utilities Code and delete a section that stated that the
provisions in this bill are declaratory of existing law.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, minor costs to local entities for extra review of
contract bids.
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
AB 976
Page 2
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
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to this bill but has withdrawn its opposition.
GOVERNOR'S VETO MESSAGE :
"This bill prohibits any company from doing business with a
Community Choice Aggregation program if that company advised a
local government on establishing the program.
"This goes too far --local governments already have plenty of
laws on conflicts of interests and transparent decision making.
Adding the restriction in this bill would serve only to impede
efforts to establish community choice energy programs."
Analysis Prepared by: Sue Kateley / U. & C. / (916) 319-2083
FN: 0005982