BILL NUMBER: AB 737	CHAPTERED
	BILL TEXT

	CHAPTER  183
	FILED WITH SECRETARY OF STATE  AUGUST 13, 2001
	APPROVED BY GOVERNOR  AUGUST 12, 2001
	PASSED THE SENATE  JULY 21, 2001
	PASSED THE ASSEMBLY  MAY 17, 2001

INTRODUCED BY   Assembly Members Oropeza, Chavez, Correa, and Dutra

                        FEBRUARY 22, 2001

   An act to amend Section 14838.5 of the Government Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 737, Oropeza.  Disabled veteran business enterprises.
   The Small Business Procurement and Contract Act permits a state
agency to award a contract for goods, services, or information
technology with a value of between $5,000 and $100,000 to a small
business without complying with specified competitive bidding
requirements.
   This bill would allow the award of a contract under this exemption
to a certified disabled veteran business enterprise, and would
require small businesses to be certified to contract under this
exemption.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14838.5 of the Government Code is amended to
read:
   14838.5.  (a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825) of
this code and Chapter 2 (commencing with Section 10290) and Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the
Public Contract Code, a state agency may award a contract for the
acquisition of goods, services, or information technology that has an
estimated value of greater than five thousand dollars ($5,000), but
less than one hundred thousand dollars ($100,000), to a certified
small business or disabled veteran business enterprise, as long as
the agency obtains price quotations from two or more certified small
businesses or disabled veteran business enterprises.
   (b) In carrying out subdivision (a), state agencies shall consider
a responsive offer timely received from a responsible certified
small business or disabled veteran business enterprises.
   (c) If the estimated cost to the state is less than five thousand
dollars ($5,000) for the acquisition of goods, services, or
information technology, or a greater amount as administratively
established by the director, a state agency shall obtain at least two
price quotations from responsible suppliers whenever there is reason
to believe a response from a single source is not a fair and
reasonable price.