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| 1 | + | Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2654Introduced by Assembly Member Vince FongFebruary 14, 2024 An act to amend Section 10120 of the Public Contract add Chapter 12 (commencing with Section 11900) to Part 1 of Division 3 of Title 2 of the Government Code, relating to public contracts. state government.LEGISLATIVE COUNSEL'S DIGESTAB 2654, as amended, Vince Fong. State Contract Act. Disbursements: fraud.Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program.This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications.Existing law, the State Contract Act, requires the Department of General Services, before entering into any contract for a project, to prepare full, complete, and accurate plans and specifications and estimates of costs, giving such directions as will enable any competent mechanic or other builder to carry them out.This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 12 (commencing with Section 11900) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 12. Fraudulent Application Disbursements11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795.SECTION 1.Section 10120 of the Public Contract Code is amended to read:10120.Before entering into any contract for a project, the department shall prepare full, complete, and accurate plans and specifications and estimates of cost, giving directions as will enable any competent mechanic or other builder to carry them out. | |
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| 3 | - | ||
| 3 | + | Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2654Introduced by Assembly Member Vince FongFebruary 14, 2024 An act to amend Section 10120 of the Public Contract add Chapter 12 (commencing with Section 11900) to Part 1 of Division 3 of Title 2 of the Government Code, relating to public contracts. state government.LEGISLATIVE COUNSEL'S DIGESTAB 2654, as amended, Vince Fong. State Contract Act. Disbursements: fraud.Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program.This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications.Existing law, the State Contract Act, requires the Department of General Services, before entering into any contract for a project, to prepare full, complete, and accurate plans and specifications and estimates of costs, giving such directions as will enable any competent mechanic or other builder to carry them out.This bill would make a nonsubstantive change to these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 21, 2024 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 18, 2024 | |
| 8 | 7 | Amended IN Assembly March 21, 2024 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 2654 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member Vince FongFebruary 14, 2024 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Assembly Member Vince Fong | |
| 19 | 18 | February 14, 2024 | |
| 20 | 19 | ||
| 21 | - | An act to add Chapter 12 (commencing with Section 11900) to Part 1 of Division 3 of Title 2 of | |
| 20 | + | An act to amend Section 10120 of the Public Contract add Chapter 12 (commencing with Section 11900) to Part 1 of Division 3 of Title 2 of the Government Code, relating to public contracts. state government. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | - | AB 2654, as amended, Vince Fong. Disbursements: fraud. | |
| 26 | + | AB 2654, as amended, Vince Fong. State Contract Act. Disbursements: fraud. | |
| 28 | 27 | ||
| 29 | - | Existing law prohibits lobbyists from engaging in various activities, as specified.This bill would prohibit lobbyists and certain public officials and employees, as specified, from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation. The bill would also make any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this bill void and unenforceable. A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating a new crime under the act, this 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 no reimbursement is required by this act for a specified reason.The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements.This bill would declare that it furthers the purposes of the act.Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program.This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications. | |
| 30 | - | ||
| 31 | - | Existing law prohibits lobbyists from engaging in various activities, as specified. | |
| 32 | - | ||
| 33 | - | This bill would prohibit lobbyists and certain public officials and employees, as specified, from entering into, or requesting that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation. The bill would also make any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this bill void and unenforceable. A violation of the Political Reform Act of 1974 is punishable as a misdemeanor. By creating a new crime under the act, this bill would impose a state-mandated local program. | |
| 34 | - | ||
| 35 | - | 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. | |
| 36 | - | ||
| 37 | - | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 38 | - | ||
| 39 | - | The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the acts purposes upon a 2/3 vote of each house of the Legislature and compliance with specified procedural requirements. | |
| 40 | - | ||
| 41 | - | This bill would declare that it furthers the purposes of the act. | |
| 28 | + | Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program.This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications.Existing law, the State Contract Act, requires the Department of General Services, before entering into any contract for a project, to prepare full, complete, and accurate plans and specifications and estimates of costs, giving such directions as will enable any competent mechanic or other builder to carry them out.This bill would make a nonsubstantive change to these provisions. | |
| 42 | 29 | ||
| 43 | 30 | Existing law establishes various programs and benefits through which state agencies disburse moneys to entities that are not state agencies, including the unemployment compensation system, the CalFresh program, and the CalWORKs program. | |
| 44 | 31 | ||
| 32 | + | This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications. | |
| 33 | + | ||
| 34 | + | Existing law, the State Contract Act, requires the Department of General Services, before entering into any contract for a project, to prepare full, complete, and accurate plans and specifications and estimates of costs, giving such directions as will enable any competent mechanic or other builder to carry them out. | |
| 45 | 35 | ||
| 46 | 36 | ||
| 47 | - | This bill would require a state agency that disburses money to an entity or an individual that is not a state agency to use best efforts and practices to reduce disbursements based on fraudulent applications, as specified. The bill would require the state agency to annually submit a report to the Legislature that includes the amount of money that was disbursed based on fraudulent applications and the state agencys efforts to reduce disbursements based on fraudulent applications. | |
| 37 | + | ||
| 38 | + | This bill would make a nonsubstantive change to these provisions. | |
| 48 | 39 | ||
| 49 | 40 | ||
| 50 | 41 | ||
| 51 | 42 | ## Digest Key | |
| 52 | 43 | ||
| 53 | 44 | ## Bill Text | |
| 54 | 45 | ||
| 55 | - | The people of the State of California do enact as follows:SECTION 1. | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. Chapter 12 (commencing with Section 11900) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 12. Fraudulent Application Disbursements11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795.SECTION 1.Section 10120 of the Public Contract Code is amended to read:10120.Before entering into any contract for a project, the department shall prepare full, complete, and accurate plans and specifications and estimates of cost, giving directions as will enable any competent mechanic or other builder to carry them out. | |
| 56 | 47 | ||
| 57 | 48 | The people of the State of California do enact as follows: | |
| 58 | 49 | ||
| 59 | 50 | ## The people of the State of California do enact as follows: | |
| 60 | 51 | ||
| 61 | - | SECTION 1. Section | |
| 52 | + | SECTION 1. Chapter 12 (commencing with Section 11900) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 12. Fraudulent Application Disbursements11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 62 | 53 | ||
| 63 | - | SECTION 1. Section | |
| 54 | + | SECTION 1. Chapter 12 (commencing with Section 11900) is added to Part 1 of Division 3 of Title 2 of the Government Code, to read: | |
| 64 | 55 | ||
| 65 | 56 | ### SECTION 1. | |
| 66 | 57 | ||
| 67 | - | ||
| 58 | + | CHAPTER 12. Fraudulent Application Disbursements11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 68 | 59 | ||
| 69 | - | ||
| 60 | + | CHAPTER 12. Fraudulent Application Disbursements11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 70 | 61 | ||
| 71 | - | 86207. (a) The following individuals shall not enter into, or request that another party enter into, a nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation.(1) A lobbyist.(2) The following individuals when acting in their official capacity:(A) A public official.(B) A Member or employee of the Legislature.(C) An employee of the office of the Governor.(b) Any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this section shall be void and unenforceable. | |
| 62 | + | CHAPTER 12. Fraudulent Application Disbursements | |
| 63 | + | ||
| 64 | + | CHAPTER 12. Fraudulent Application Disbursements | |
| 65 | + | ||
| 66 | + | 11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000.(b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made.(c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following:(A) The amount of money that was disbursed based on fraudulent applications the prior calendar year.(B) The state agencys efforts to reduce disbursements based on fraudulent applications.(2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature.(3) A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 72 | 67 | ||
| 73 | 68 | ||
| 74 | 69 | ||
| 75 | - | ||
| 70 | + | 11900. (a) For purposes of this chapter, state agency has the same meaning as defined in Section 11000. | |
| 76 | 71 | ||
| 77 | - | ( | |
| 72 | + | (b) A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made. | |
| 78 | 73 | ||
| 79 | - | ( | |
| 74 | + | (c) (1) A state agency shall annually submit a report to the Legislature that includes both of the following: | |
| 80 | 75 | ||
| 81 | - | (A) | |
| 76 | + | (A) The amount of money that was disbursed based on fraudulent applications the prior calendar year. | |
| 82 | 77 | ||
| 83 | - | (B) | |
| 78 | + | (B) The state agencys efforts to reduce disbursements based on fraudulent applications. | |
| 84 | 79 | ||
| 85 | - | ( | |
| 80 | + | (2) A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature. | |
| 86 | 81 | ||
| 87 | - | (b) Any nondisclosure agreement relating to the drafting, negotiation, discussion, or creation of legislation entered into after the effective date of this section shall be void and unenforceable. | |
| 88 | - | ||
| 89 | - | 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. | |
| 90 | - | ||
| 91 | - | 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. | |
| 92 | - | ||
| 93 | - | 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. | |
| 94 | - | ||
| 95 | - | ### SEC. 2. | |
| 96 | - | ||
| 97 | - | SEC. 3. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code. | |
| 98 | - | ||
| 99 | - | SEC. 3. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code. | |
| 100 | - | ||
| 101 | - | SEC. 3. The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code. | |
| 102 | - | ||
| 103 | - | ### SEC. 3. | |
| 82 | + | (3) A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 104 | 83 | ||
| 105 | 84 | ||
| 106 | 85 | ||
| 107 | 86 | ||
| 108 | 87 | ||
| 109 | - | ||
| 110 | - | ||
| 111 | - | (a)For purposes of this chapter, state agency has the same meaning as defined in Section 11000. | |
| 112 | - | ||
| 113 | - | ||
| 114 | - | ||
| 115 | - | (b)A state agency that disburses money to an entity or an individual that is not a state agency shall use best efforts and practices to reduce disbursements based on fraudulent applications, which may include, but are not limited to, verification of identity, employment, or eligibility prior to a disbursement being made. | |
| 116 | - | ||
| 117 | - | ||
| 118 | - | ||
| 119 | - | (c)(1)A state agency shall annually submit a report to the Legislature that includes both of the following: | |
| 120 | - | ||
| 121 | - | ||
| 122 | - | ||
| 123 | - | (A)The amount of money that was disbursed based on fraudulent applications the prior calendar year. | |
| 124 | - | ||
| 125 | - | ||
| 126 | - | ||
| 127 | - | (B)The state agencys efforts to reduce disbursements based on fraudulent applications. | |
| 128 | - | ||
| 129 | - | ||
| 130 | - | ||
| 131 | - | (2)A state agency may submit the report required by this subdivision as part of any other annual report the state agency is required to submit to the Legislature. | |
| 132 | - | ||
| 133 | - | ||
| 134 | - | ||
| 135 | - | (3)A state agency shall submit the report required by this subdivision in compliance with Section 9795. | |
| 88 | + | Before entering into any contract for a project, the department shall prepare full, complete, and accurate plans and specifications and estimates of cost, giving directions as will enable any competent mechanic or other builder to carry them out. |