BILL NUMBER: SB 118	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012
	AMENDED IN SENATE  APRIL 28, 2011

INTRODUCED BY   Senator Yee

                        JANUARY 20, 2011

   An act to  amend Section 4217.16 of the Government Code
   add Section 124   27 to the Government Code
 , relating to  public contracts   state
government  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 118, as amended, Yee.  Public contracts: energy service
contracts best value.   State Controller's Office:
reimbursement for expenses.  
   Existing law establishes the State Controller's Office and
requires the Controller to, among other duties, account for scheduled
expenditures and report monthly on revenue and each department's
expenditures. Existing law provides for the means by which the
Controller is reimbursed for actual expenses incurred in the
administering or review of certain loans, assuring state general
obligation bond compliance, and other related and necessary services.
 
   This bill would require the Controller to receive reimbursement
for associated expenses incurred in the accounting of expenditures
related to the issuance and statewide accounting of revenue bonds.
The bill would authorize the State Controller's Office to recover
outstanding receivable expenses by initiating a request to transfer
funds from the responsible agency for related unpaid invoices. 

   Existing law requires public agencies to adhere to competitive
bidding requirements and procedures when entering into public works
contracts, subject to various exceptions based on the size and cost
of the project, among other factors. One exception from these bidding
requirements provides the authority for a public agency to enter
into energy service contracts and related facility ground leases, as
defined. Existing law authorizes a public agency, prior to awarding
or entering into an agreement or lease, to request proposals from
qualified persons.  
   This bill would instead require the public agency to publish a
request for information, qualification, or proposal pursuant to a
public process determined by the public agency, and would provide
that the contract be awarded based on best value.  
   By imposing new duties on local public agencies, the bill would
impose a state-mandated local program.  
   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   no  .


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

   SECTION 1.    Section 12427 is added to the 
 Government Code   , to read:  
   12427.  Each state agency shall reimburse the Controller for
associated expenses incurred in the accounting of expenditures
related to the issuance and statewide accounting of revenue bonds.
The State Controller's Office may recover outstanding receivable
expenses by initiating a request to transfer funds from the
responsible agency for related unpaid invoices.  
  SECTION 1.    Section 4217.16 of the Government
Code is amended to read:
   4217.16.  Prior to awarding or entering into an agreement or
lease, the public agency shall publish a request for information,
qualification, or proposals from qualified persons pursuant to a
public process determined by the public agency. After evaluating the
proposals, the public agency may award the contract that is of best
value on the basis of the experience of the contractor, the type of
technology employed by the contractor, the cost to the public agency,
and any other relevant considerations. The public agency may utilize
the pool of qualified energy service companies established pursuant
to Section 388 of the Public Utilities Code and the procedures
contained in that section in awarding the contract. 

  SEC. 2.    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.