CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1271Introduced by Senator Wilk(Principal coauthor: Assembly Member Kiley)February 18, 2022 An act to add Section 10295.8 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 1271, as introduced, Wilk. Contracts for the acquisition of goods or services: extension or renewal: legislative oversight.Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law sets forth various requirements and prohibitions for those contracts. Existing law makes a willful violation of those provisions punishable as a misdemeanor.This bill would subject the approval of a renewal or extension of a no-bid contract for the acquisition of goods or services in the amount of $25,000,000 or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 10295.8 is added to the Public Contract Code, to read:10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1271Introduced by Senator Wilk(Principal coauthor: Assembly Member Kiley)February 18, 2022 An act to add Section 10295.8 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 1271, as introduced, Wilk. Contracts for the acquisition of goods or services: extension or renewal: legislative oversight.Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law sets forth various requirements and prohibitions for those contracts. Existing law makes a willful violation of those provisions punishable as a misdemeanor.This bill would subject the approval of a renewal or extension of a no-bid contract for the acquisition of goods or services in the amount of $25,000,000 or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed.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 no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1271 Introduced by Senator Wilk(Principal coauthor: Assembly Member Kiley)February 18, 2022 Introduced by Senator Wilk(Principal coauthor: Assembly Member Kiley) February 18, 2022 An act to add Section 10295.8 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 1271, as introduced, Wilk. Contracts for the acquisition of goods or services: extension or renewal: legislative oversight. Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law sets forth various requirements and prohibitions for those contracts. Existing law makes a willful violation of those provisions punishable as a misdemeanor.This bill would subject the approval of a renewal or extension of a no-bid contract for the acquisition of goods or services in the amount of $25,000,000 or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed.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 no reimbursement is required by this act for a specified reason. Existing law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing law sets forth various requirements and prohibitions for those contracts. Existing law makes a willful violation of those provisions punishable as a misdemeanor. This bill would subject the approval of a renewal or extension of a no-bid contract for the acquisition of goods or services in the amount of $25,000,000 or more, entered into on or after January 1, 2023, to the oversight of the Joint Legislative Budget Committee, as prescribed. 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 no reimbursement is required by this act for a specified reason. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 10295.8 is added to the Public Contract Code, to read:10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 10295.8 is added to the Public Contract Code, to read:10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing. SECTION 1. Section 10295.8 is added to the Public Contract Code, to read: ### SECTION 1. 10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing. 10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing. 10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows:(a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract.(b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract.(c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing. 10295.8. For a no-bid contract for the acquisition of goods or services in the amount of twenty-five million dollars ($25,000,000) or more, entered into on or after January 1, 2023, the approval of a renewal or extension of the contract shall be subject to the oversight of the Joint Legislative Budget Committee, as follows: (a) At least __ days before the contract end date, the state agency shall submit to the Joint Legislative Budget Committee information regarding the terms and conditions of the proposed extension or renewal of the contract. (b) After receiving information pursuant to subdivision (a), the Joint Legislative Budget Committee, at least 60 days before the contract end date, shall hold a hearing to review the extension or renewal of the contract. (c) A state agency shall not approve the renewal or extension of a contract subject to this section until __ days following the review hearing. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. ### SEC. 2.