BILL NUMBER: SB 161	CHAPTERED  10/10/07

	CHAPTER  427
	FILED WITH SECRETARY OF STATE  OCTOBER 10, 2007
	APPROVED BY GOVERNOR  OCTOBER 10, 2007
	PASSED THE SENATE  AUGUST 30, 2007
	PASSED THE ASSEMBLY  JULY 20, 2007
	AMENDED IN ASSEMBLY  JULY 3, 2007
	AMENDED IN SENATE  APRIL 30, 2007
	AMENDED IN SENATE  APRIL 10, 2007

INTRODUCED BY   Senator Margett

                        JANUARY 30, 2007

   An act to amend Sections 1601 and 10765 of the Public Contract
Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 161, Margett. Public works contracts: Internet submissions.
   Existing public contract law authorizes public entities to adopt
methods and procedures to receive bids on public works or other
contracts over the Internet, as specified.
   This bill would authorize public entities to receive supporting
materials submitted pursuant to a public works contract over the
Internet, as specified. This bill would require public entities that
receive bids and supporting materials over the Internet to provide an
electronic receipt to the contractor either by immediate
transmission or by providing access to the contractor to an
electronic file that contains the receipt, as specified.
   The California State University Contract Law requires that bids on
contracts of the university be sealed and accompanied by one of
several specified forms of bidder's security in an amount equal to
10% of the amount of the bid. That law prohibits a bid from being
considered if the bid does not contain this security.
   This bill would specify that bids made under the California State
University Contract Law may be submitted electronically as under the
other provisions of the bill, but only if the bidder submits the
required bidder's security within 24 hours after the opening of bids.




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

  SECTION 1.  Section 1601 of the Public Contract Code is amended to
read:
   1601.  (a) Any public entity may adopt methods and procedures to
do any of the following:
   (1) Receive bids on public works or other contracts over the
Internet, but only if no bid can be opened before the bid deadline
and all bids can be verified as authentic.
   (2) Receive supporting materials submitted pursuant to a public
works contract over the Internet. For purposes of this section,
"supporting materials" includes, but is not limited to, payment
requests, shop drawings, schedules, notices of claims, and certified
payrolls.
   (b) If a public entity allows or requires bids or supporting
materials to be submitted over the Internet pursuant to this section,
the public entity shall provide an electronic receipt to the
contractor showing the date and time the submission was received. The
public entity shall provide the electronic receipt to the contractor
either by immediate transmission to the contractor or by providing
the contractor access to an electronic file online that contains this
information and that can be viewed and printed by the contractor.
  SEC. 2.  Section 10765 of the Public Contract Code is amended to
read:
   10765.  (a) All bids shall be presented under sealed cover and
accompanied by one of the following forms of bidder's security: cash,
a cashier's check, certified check, or a bidder's bond executed by
an admitted surety insurer, made payable to the trustees. The
security shall be in an amount equal to at least 10 percent of the
amount bid. A bid shall not be considered unless one of the forms of
bidder's security is enclosed with it.
   (b) A bid described in subdivision (a) may be submitted
electronically in accordance with Section 1601, but only if the
bidder submits the bidder's security required by subdivision (a)
within 24 hours after the opening of bids.