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).