California Revenue And Taxation Code Section 41138

(a) It is the intent of the Legislature that the reimbursement rates for 911 emergency telephone number equipment shall not exceed specified amounts negotiated with each interested supplier and approved by the department. The department shall negotiate supplier pricing to ensure cost effectiveness and the best value for the 911 emergency telephone number system. The department shall pay those bills as provided in Section 41137 only under the following conditions: (1) The department shall have received the local agency`s 911 emergency telephone number system plan by July 1 of the prior fiscal year and approved the plan by October 1 of the prior fiscal year. (2) The Legislature has appropriated in the Budget Bill an amount sufficient to pay those bills. (3) The department has reviewed and approved each line item of a request for funding to ensure the necessity of the proposed equipment or services and the eligibility for reimbursement. (4) The amounts to be paid do not exceed the pricing submitted by the supplier and approved by the department. Extraordinary circumstances may warrant spending in excess of the established rate, but shall be preapproved by the department. In determining the reimbursement rate, the department shall utilize the approved pricing submitted by the supplier providing the equipment or service. (b) Nothing in this section shall be construed to limit an agency` s ability to select a supplier or procure telecommunications equipment as long as the supplier`s pricing is preapproved by the department. Agencies shall be encouraged to procure equipment on a competitive basis. Any amount in excess of the pricing approved by the department shall not be reimbursed.