California Assembly Bill AB650 Amended / Bill

 BILL NUMBER: AB 650AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 20, 2013 INTRODUCED BY Assembly Member Nazarian FEBRUARY 21, 2013  An act to amend Section 10101 of the Public Contract Code, relating to public contracts.   An act to add Section 10299.1 to the Public Contract Code, relating to state government, and making an appropriation therefor.  LEGISLATIVE COUNSEL'S DIGEST AB 650, as amended, Nazarian.  State Contract Act: exemptions.   State government: general services: the Natural Gas Services Program.   Existing law authorizes the Department of General Services to contract with suppliers to obtain materials, supplies, equipment, and services.   This bill would require the director to operate the Natural Gas Services Program, pursuant to which the Director of General Services shall make the services of the department with respect to the acquisition of natural gas and related services available, under agreed upon terms and conditions, to any city, county, city and county, district, other local governmental body, or corporation empowered to expend public funds, and shall enter into interagency agreements for acquisition of natural gas and related services, as defined.   The bill would require agencies that are in the executive branch of state government to use the department's natural gas program for noncore gas purchases of natural gas. The bill would authorize the department to hire employees as required for this program. The bill would create the Department of General Services Natural Gas Services Program Account which would be continuously appropriated to the department for purposes of operating the Natural Gas Services Program.   The State Contract Act prescribes the procedures and requirements applicable to various state agency contracts, and exempts from these procedures and requirements specified contracts for which emergency work or remedial measures are required related to the accidental or unplanned release of toxic substances.   This bill would make nonsubstantive changes to these provisions.  Vote:  majority   2/3  . Appropriation:  no   yes  . Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 10299.1 is added to the   Public Contract Code   , to read:   10299.1. (a) Notwithstanding any other law, the director shall operate the Natural Gas Services Program to consolidate and address the needs of multiple state agencies for the procurement of natural gas and related services. (b) Procurement of natural gas and related services is vital to public sector facilities in California and, due to the volumes and costs involved, this section authorizes the following: (1) The director shall make the services of the department with respect to the acquisition of natural gas and related services available, under agreed upon terms and conditions, to any city, county, city and county, district, or other local governmental body, or any corporation empowered to expend public funds. (2) The department is authorized to enter into interagency agreements with the entities listed in paragraph (1) for the acquisition of natural gas and related services. The department may enter into contracts, master agreements, multiple award schedules, cooperative agreements, agreements with entities outside the state, and other types of agreements that leverage the state's buying power through the use of a competitive bidding process. The state shall not incur financial responsibility in connection with the contracting of nonstate agencies under this section. (3) The department may buy, sell, exchange, transfer, or otherwise dispose of natural gas acquired by the department pursuant to this section, and may recover the department's acquisition and other costs to operate the program through customer charges or fees. (4) The department may enter into gas purchase transactions for a term longer than five years, if specifically approved by the director. (5) The program shall adjust to changes in customer requirements and market conditions and create and manage an ongoing pool of gas suppliers. (6) The department is authorized to provide additional services to customers related to the environmental aspects of energy use and the requirements related to greenhouse gas regulations, renewable energy requirements, and similar programs and requirements. (7) Notwithstanding any other law, the department is not required to include in contracts or other agreements for the purchase of natural gas and related services entered into pursuant to this section disabled veteran business enterprise requirements, unless the department determines that the application of those provisions is necessary to accomplish the purposes of this section. (c) Agencies that are in the executive branch of the state government shall use the department's natural gas program for noncore gas purchases of natural gas to ensure maximum participation resulting in the best discounts and prices for the commodity. The Director of General Services may allow exemptions to this requirement. (d) The department may hire and appoint employees as required for this program, at salary levels determined by the director to be competitive to attract and retain persons with the necessary expertise and skills. Prior to hiring or appointing an employee at a salary in excess of a salary approved by the Department of Human Resources (CalHR), the director shall submit a proposed salary to the Director of Finance who shall submit it to the Legislature in accordance with the annual Budget Act. (e) For purposes of this section, "natural gas" includes, but is not limited to, natural gas, methane, biomethane, compressed natural gas, liquefied natural gas, and other energy commodity that is similar to natural gas, and related services, including, but not limited to, gas storage, gas transportation, and forward purchases of natural gas. (f) During any period in which a Budget Act has not been approved, the department shall continue to receive payment transfers from agencies that are not in the executive branch of the state government and agencies that are in the executive branch of state government that are able to pay because they operate with funds that are continuously appropriated. The department is specifically authorized to pay program vendors when the Budget Act is delayed. (g) The department is authorized to charge, collect, and hold funds from a customer that voluntarily requests prepaid long-term natural gas supplies, for a period not to exceed 20 years. (h) The Department of General Services Natural Gas Services Program Account is hereby established in the State Treasury, funds from which are to be continuously appropriated to the department without regard to fiscal year, for the purposes of operating the Natural Gas Services Program. (1) All revenues payable to the department for natural gas and related services shall be deposited in this account. Any payments from this account shall only be made for those purposes described in and consistent with this section. (2) The Natural Gas Services Program's customer fee revenues cannot be shifted or borrowed from the account. (3) If at the end of any fiscal year, there are unexpended revenues, those revenues shall be retained in the account and reserved for future Natural Gas Services Program expenses.   SECTION 1.   Section 10101 of the Public Contract Code is amended to read: 10101. (a) Contracts for the purchase of supplies or materials, which are purchased pursuant to Chapter 2 (commencing with Section 10290), are not subject to this chapter, even though the seller is required to perform some incidental work or service in connection with the delivery of the material or supplies. (b) Contracts for which emergency work or remedial measures are required are not subject to this chapter if the work or remedial measures are necessary in order to immediately avert, alleviate, repair, or mitigate destruction of property caused by the accidental or unplanned release of toxic substances and are necessary in order to protect the health, safety, and welfare of the general public.