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AB-1917 Education finance: acquisition of food services.(2011-2012)

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AB1917:v95#DOCUMENT

Amended  IN  Senate  August 06, 2012
Amended  IN  Assembly  May 25, 2012
Amended  IN  Assembly  May 02, 2012
Amended  IN  Assembly  April 09, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1917

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   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.