SCA 7: Legislature: Joint Legislative Budget Committee: contract renewal or extension.

Existing statutory law authorizes state agencies to enter into contracts for the acquisition of goods or services upon approval by the Department of General Services. Existing statutory law sets forth various requirements and prohibitions for those contracts.

This measure would subject the approval of a renewal or extension of a no-bid contract by a state agency for the acquisition of goods or services pursuant to law governing public contracts, 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.

Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 202122 Regular Session commencing on the seventh day of December 2020, two-thirds of the membership of each house concurring, hereby proposes to the people of the State of California, that the Constitution of the State be amended as follows:

For a no-bid contract by a state agency for the acquisition of goods or services pursuant to law governing public contracts, 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.