BILL NUMBER: SB 729	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2003

INTRODUCED BY   Senator Perata

                        FEBRUARY 21, 2003

   An act to add Section 10355 to the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 729, as amended, Perata.  State contracts: bids:  metal
castings.
   Existing law establishes various procedures for the acquisition of
goods and services by state agencies.  Under existing law, a state
contract is required to be awarded to the lowest responsible bidder.

   This bill would require state agencies to give priority to the bid
for the sale of metal castings that are substantially all made in
California, as specified.   This bill would also require a
bidder, on a contract to procure for a state agency commodities or
services involving metal castings, to submit to the Procurement
Division of the Department of General Services a Material Safety Data
Sheet (MSDS) regarding the metal castings involved in the contract,
as specified. 
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California metal casters operate not only to increase the
prosperity and commerce for California's citizens but also to provide
safe workplaces with decent wages to workers and to act as
responsible stewards of the environment for neighbors and consumers
alike.
   (b) California metal casters have a long history of setting the
standard for environmental, health, and safety compliance for
businesses throughout the country and the world, and their compliance
efforts have resulted in benefits to the citizens of California.
   (c) California metal casters have operated at a competitive
disadvantage to businesses outside of the state and outside of the
United States because California metal casters are required to
produce metal castings with higher compliance operating costs.
   (d) California metal casters should not be penalized for operating
at a competitive disadvantage to out-of-state businesses.
   (e) It is the intent of  the Legislature in enacting 
this act to provide a level playing field for made in California
metal castings in the state procurement of commodities and services
related to metal castings.
  SEC. 2.  Section 10355 is added to the Public Contract Code, to
read:
   10355.  (a) Notwithstanding any other law, in the acquisition of
metal castings, each state agency shall give priority to the bid for
the sale of metal castings that are substantially all made in
California.
   (b) In preparing purchase estimates, each state agency shall first
consider if its needs can be met by commodities and services related
to metal castings that are substantially all made in California.
State agencies shall develop new products and adapt existing products
to meet the needs of producers of substantially all made in
California products and services.
   (c) The Procurement Division of the Department of General Services
shall examine all submitted purchase estimates to determine whether
substantially all made in California metal castings meet all
reasonable requirements.  If this appears to be the case, the
division shall notify the ordering  state  agency that metal
castings should be purchased from suppliers of metal castings that
are substantially all made in California.
   (d) Each state agency shall consider and give preference in the
competitive bidding process to metal castings that are substantially
all made in California.
   (e) For purposes of this section, a metal casting is substantially
all made in California if either of the following applies:
   (1) The product was last substantially transformed in California
and California manufacturing costs are at least 75 percent of total
manufacturing costs.
   (2) The product was last substantially transformed in California
and all significant parts or components of the product were last
substantially transformed in California.  
   (f) (1) A bidder on a contract to procure for a state agency
commodities or services involving metal castings shall submit to the
Procurement Division of the Department of General Services a Material
Safety Data Sheet (MSDS) regarding the metal castings that are to be
involved under the contract, that is subject to all of the
following:
   (A) The MSDS shall specifically pertain to the actual manufactured
metal castings that are to be involved under the contract.
   (B) The MSDS shall identify any substances in the metal castings,
as identified by testing at the point of manufacture, that are to be
involved under the contract that are listed as hazardous substances
pursuant to the Hazardous Substance Information and Training Act as
set forth in Chapter 2.5 (commencing with Section 6360) of Part 1 of
Division 5 of the Labor Code.
   (C) The bidder may not submit a generic MSDS for a metal type.
   (D) The bidder may not submit a MSDS for a type of metal castings
that is different from the MSDS for the type of metal castings that
are to be specifically involved under the contract.
   (2) (A) A bid on a contract to procure commodities or services
involving metal castings for a state agency shall be deemed
nonresponsive if the bidder does not submit a MSDS as specified in
this subdivision.
   (B) The Procurement Division of the Department of General Services
shall notify the applicable ordering state agency if a bid is deemed
nonresponsive pursuant to subparagraph (A).