BILL NUMBER: AB 1917	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 9, 2012

INTRODUCED BY   Assembly Member Dickinson

                        FEBRUARY 22, 2012

   An act to add Section 38085.5 to, and to add Article 9.5
(commencing with Section 66095) to Chapter 2 of Part 40 of Division 5
of Title 3 of, the Education Code, relating to education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1917, as amended, Dickinson. Education finance: acquisition of
food services.
   (1) Existing law establishes a system of public education in this
state, consisting of the public elementary and secondary schools and
the 3 segments of public postsecondary education, which are the
California Community Colleges, the California State University, and
the University of California. With respect to public elementary and
secondary schools, existing law authorizes school district governing
boards to establish cafeterias, which are defined as synonymous with
food  service   services  . With respect to
the public postsecondary segments, existing law authorizes them to
enter into agreements for the purchase of goods and services,
including food services.
   This bill would require school district governing boards, the
 Board of Governors of the California Community Colleges
  governing board of each community college district
 , and the Trustees of the California State University, and
would request the Regents of the University of California, to develop
and adopt policies and procedures for the acquisition of food
services to ensure  that  a service contractor fully
discloses to the school district, campus, auxiliary organization, or
other unit of the public postsecondary segment, as appropriate, all
discounts, rebates, as defined, allowances, and incentives received
by the service contractor from its suppliers, as specified, and to
disclose and pay to the school district, campus, auxiliary
organization, or other unit of the public postsecondary segment, as
appropriate, the full amount of the discount, rebate, or applicable
credit, as specified.
   The bill would require these discounts, rebates, allowances, and
incentives to be paid as agreed, and a record of these transactions
to be available for review as part of any audit conducted pursuant to
statute. The bill would require any necessary changes to the
policies and procedures for the acquisition of services  to 
be implemented upon the renewal, extension, or amendment of an
existing agreement or as part of any new service agreement.
   To the extent that this bill would impose new duties on school
districts and community college districts, it would constitute a
state-mandated local program.
   (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 38085.5 is added to the Education Code, to
read:
   38085.5.  Notwithstanding any other law, the governing board of
each school district maintaining a cafeteria shall develop and adopt
policies and procedures for the acquisition of food  service
  services  that are in accordance with both of the
following:
   (a) The policies and procedures for the acquisition of food
services shall ensure that a service contractor fully discloses to
the school district all discounts, rebates, allowances, and
incentives received by the service contractor from its suppliers. If
the service contractor receives a discount, rebate, allowance, or
other incentive from any supplier, the service contractor shall
disclose and pay to the school district the full amount of the
discount, rebate, or applicable credit that is received based on the
purchases made on behalf of the school district. Language stating
this requirement shall be placed in agreements covered by this
section.
   (b) Any discount, rebate, allowance,  and  
or  incentive shall be paid to the school district during a
mutually agreed upon  time frame   timeframe
 , and a record of these transactions shall be available for
review as part of any audit conducted pursuant to statute. Any
changes required pursuant to this section shall be implemented upon
the renewal, extension, or amendment of an existing agreement or as
part of any new service agreement.
   (c) As used in this section, "rebate" includes any return of
monetary value, including, but not necessarily limited to, a volume
discount, allowance, or discount purchase incentive.
  SEC. 2.  Article 9.5 (commencing with Section 66095) is added to
Chapter 2 of Part 40 of Division 5 of Title 3 of the Education Code,
to read:

      Article 9.5.  Policies and Procedures for Acquisition of Food
Services


   66095.  (a) Notwithstanding any other law,  the Board of
Governors of the California Community Colleges   the
governing board of each community college district  and the
Trustees of the California State University shall, and the Regents of
the University of California are requested to, develop and adopt
policies and procedures for the acquisition of food service
  services  that are in accordance with both of the
following:
   (1) The policies and procedures for the acquisition of food
services shall ensure that a service contractor fully discloses to
the campus, auxiliary organization, or other unit of the public
postsecondary segment all discounts, rebates, allowances, and
incentives received by the service contractor from its suppliers. If
the service contractor receives a discount, rebate, allowance, or
other incentive from any supplier, the service contractor shall
disclose and pay to the campus the full amount of the discount,
rebate, or applicable credit that is received based on the purchases
made on behalf of the campus, auxiliary organization, or other unit
of the public postsecondary segment. Language stating this
requirement shall be placed in agreements covered by this section.
   (2) Any discount, rebate, allowance,  and  
or  incentive shall be paid to the campus, auxiliary
organization, or other unit of the public postsecondary segment
during a mutually agreed upon  time frame  
timeframe  , and a record of these transactions shall be
available for review as part of any audit conducted pursuant to
statute. Any changes required pursuant to this section shall be
implemented upon the renewal, extension, or amendment of an existing
agreement or as part of any new service agreement.
   (b) As used in this section:
   (1) "Auxiliary organization" means an entity defined in Section
89901.
   (2) "Rebate" includes any return of monetary value, including, but
not necessarily limited to, a volume discount, allowance, or
discount purchase incentive.
  SEC. 3.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.