BILL NUMBER: AB 730	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 4, 2008
	AMENDED IN SENATE  JULY 7, 2008
	AMENDED IN SENATE  JULY 2, 2008
	AMENDED IN ASSEMBLY  JANUARY 24, 2008
	AMENDED IN ASSEMBLY  JANUARY 7, 2008
	AMENDED IN ASSEMBLY  DECEMBER 13, 2007

INTRODUCED BY   Assembly Member De Leon
   (Coauthors: Assembly Members Bass, Eng, Karnette, Mendoza, and
Price)

                        FEBRUARY 22, 2007

   An act to add Section 6612 to the Public Contract Code, relating
to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 730, as amended, De Leon. Public contracts: information
technology goods and services: protections against default.
   Existing law governs the procurement of materials, supplies,
equipment, and services by state and local agencies, regulates the
acquisition of information technology goods and services by the
state, and sets forth various requirements, as provided, to be
followed by a vendor in bidding for a contract for goods and services
with a state or local agency, as specified.
   This bill would require any bidder on a contract for information
technology  ,  goods or services  contract
 with a public entity to disclose any  specified 
ongoing litigation within the United States, and any  s 
 pecified  litigation in which it had been named as a party
to the lawsuit within the previous 5 years within the United States.
This bill would require any contract for information  technology
goods or services  entered into between a public entity and
vendor who has been found liable for breach of contract, as
specified, to contain taxpayer protections against default or failure
to fulfill the obligations of 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.  Section 6612 is added to the Public Contract Code, to
read:
   6612.  (a) This section shall be known and may be cited as the
Information Technology Vendor Transparency and Taxpayer Protection
Act.
   (b) For purposes of this section, "information technology"
includes, but is not limited to, all electronic technology systems
and services, automated information handling, system design and
analysis, conversion of data, computer programming, information
storage and retrieval, requisite system controls, simulation, and
electronic commerce.
   (c) Any bidder on an information technology goods or services
contract with a public entity, as defined in Section 1100, shall be
required to disclose any ongoing litigation within the United States,
and any litigation in which it had been named as a party to the
lawsuit within the previous five years within the United States. 
The disclosures required by this subdivision shall only apply to
information technology goods or services contracts involving a public
entity. 
   (d) Any contract for information technology goods or services
entered into between a public entity and a vendor, that has been
found liable by a court of competent jurisdiction within the United
States for breach of an information technology goods or services
contract awarded by a public entity, shall contain taxpayer
protections against default or failure to fulfill the obligations of
the contract.
   (e) Subdivision (d) shall only apply to vendors found liable for
breach of contract that costs more than  one  
five  million dollars  ($1,000,000)  
($5,000,000)  and the final judgment exceeded 15 percent of the
cost of that contract and only for a period of five years, beginning
from the date of the final judgment.  For purposes of this
subdivision, the vendor must have been found liable for default or
failure to fulfill the obligations of the contract with a public
entity. 
   (f) Taxpayer protections shall include at least one of the
following:
   (1) Performance security, such as a letter of credit, certificate
of deposit, or performance bond, which shall be acceptable to the
public entity.
   (2) Payment withholds of a substantial portion of the contract
price until final delivery and acceptance of the goods or services.
   (3) Liquidated damages for delayed performance of key deliverables
or defective performance.
   (g) Nothing in this section shall preempt any debarment ordinance
of any public entity.