Budget Amendment ID: FY2012-S3-324
EDU 324
PRECLUDE FOOD SERVICE MANAGEMENT COMPANIES FROM RETAINING REBATES
Ms. Spilka and Messrs. Tarr and Kennedy moved that the proposed new text be amended by inserting, after Section 152, the following new Sections:-
“SECTION XXX. Section 15 of chapter 73 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by adding after the first paragraph the following paragraph:-
Notwithstanding any other general or special law to the contrary, neither the trustees or officers of a state university designated by them nor any official of the Commonwealth shall have authority to contract with a food service management company unless the contract provides that any rebates, discounts, allowances, volume purchase incentives or any other purchase incentives received by the food service management company as a consequence of or coincident to the contract be fully disclosed and savings passed on and credited to the college or university; whereas rebate means a deduction from an amount charged or return of a price paid, excluding only prompt payment discounts that do not exceed 2% of the invoice cost. Contracts that do not contain this language shall not be valid and the college or university shall make no payment under such contract. The Governor or their designee, the Secretary of Administration and Finance, the State Auditor and the Auditor of the state university or their designee shall have the right at reasonable times and upon reasonable notice to examine the books, records and other compilations of data of the food service management company that pertain to the performance of the provisions and requirements of all applicable contracts under this section.”
“SECTION XXX. Section 13 of chapter 75 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by adding after the first paragraph the following paragraph:
Notwithstanding any other general or special law to the contrary, neither the trustees or officers of the university designated by them nor any official of the Commonwealth shall have authority to contract with a food service management company unless it provides that any rebates, discounts, allowances, volume purchase incentive or any other purchase incentives received by the food service management company as a consequence of or coincident to the contract be fully disclosed and savings passed on and credited to the college or university; whereas rebate means a deduction from an amount charged or return of a price paid, excluding only prompt payment discounts that do not exceed 2% of the invoice cost. Contracts that do not contain this language shall not be valid and the college or university shall make no payment under such contract. The Governor or their designee, the Secretary of Administration and Finance, the State Auditor or the Auditor of the state university or their designee shall have the right at reasonable times and upon reasonable notice to examine the books, records and other compilations of data of the food service management company that pertain to the performance of the provisions and requirements of all applicable contracts under this section.”
“SECTION XXX. Section 22 of chapter 7 of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting in subsection (20) after the first sentence the following sentence:
The undersigned, if a food service management company, also certifies under the penalties of perjury that to the extent that it receives any rebates, discounts, allowances, volume purchase incentive or any other purchase incentives, direct or indirect, from any third party, as a consequence of this proposal or the contract that codifies its acceptance, that such rebate will be fully disclosed and credited to and savings passed on to the governmental body; whereas rebate means a deduction from an amount charged or return of a price paid, excluding only prompt payment discounts that do not exceed 2% of the invoice cost.”