BILL NUMBER: AB 1917	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 6, 2012
	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 the Education Code, relating to
education finance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1917, as amended, Dickinson. Education finance: acquisition of
food services. 
   (1) Existing 
    Existing  law authorizes school district governing
boards to establish cafeterias, which are defined as synonymous with
food services.
   This bill would require  a  school district governing
 boards that enter into a contract   board,
county superintendent of schools, or governing body of a charter
school that contracts  for the acquisition of food services 
using state or federal funds  to develop and adopt policies and
procedures for the acquisition of food services to ensure that a
 service contractor   food service management
company  fully discloses to the  school district
  local educational agency  all discounts, rebates,
as defined, allowances, and incentives received by the 
service contractor   company  from its suppliers,
as specified, and to disclose and pay to the  school district
  local educational agency  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.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: 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 a school district  enters into a contract 
 , county superintendent of schools, or governing body of a
charter school contracts  for the acquisition of food services
 , the governing board   using state or federal
funds, it  shall 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 
 the food service management company  fully discloses to the
 school district   local educational agency
 all discounts, rebates, allowances, and incentives received by
the  service contractor   company  from its
suppliers. If the  service contractor   food
service management company  receives a discount, rebate,
allowance, or other incentive from any supplier, the  service
contractor   company  shall disclose and pay to
the  school district   local educational agency
 the full amount of the discount, rebate, or applicable credit
that is received based on the purchases made on behalf of the
 school district   local educational agency
 . 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  school district   local educational agency
 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, "rebate" includes any return of
monetary value, including, but not necessarily limited to, a volume
discount, allowance, or discount purchase incentive.