BILL NUMBER: AB 1917 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 25, 2012
AMENDED IN ASSEMBLY MAY 2, 2012
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 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 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, that enter
into a contract for the acquisition of food services 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 a 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
no . State-mandated local program: yes
no .
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. (a) Notwithstanding any other law,
if the governing board of each a
school district maintaining a cafeteria
enters into a contract for the acquisition of food
services, the governing board shall develop and adopt policies
and procedures for the acquisition of food services that are in
accordance with both of the following:
(a)
(1) 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)
(2) Any discount, rebate, allowance, or incentive shall
be paid to the school district during a mutually agreed upon
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 a new service agreement.
(c)
(b) 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 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 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, or incentive shall be paid to
the campus, auxiliary organization, or other unit of the public
postsecondary segment during a mutually agreed upon 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 a 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.