BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1471|
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                                 THIRD READING


          Bill No:  AB 1471
          Author:   Eng (D)
          Amended:  7/9/09 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM  :  10-0, 7/7/09
          AYES:  Lowenthal, Huff, Ashburn, DeSaulnier, Harman,  
            Hollingsworth, Kehoe, Pavley, Simitian, Wolk
          NO VOTE RECORDED:  Oropeza

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  77-0, 5/21/09 - See last page for vote


           SUBJECT  :    Procurement: Los Angeles County Metropolitan
                      Transportation Authority

           SOURCE  :     Los Angeles County Metropolitan Transportation  
          Authority


           DIGEST  :    This bill corrects provisions governing Los  
          Angeles County Metropolitan Transportation Authority's  
          (LACMTA) procurement authority, delegates authority to  
          LACMTA's Board of Directors for specific procurement  
          activities, and authorizes LACMTA to participate in public  
          auctions, such as those conducted on the internet and with  
          public agencies.

           ANALYSIS  :    Existing law:

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                                                               AB 1471
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          1.Includes incorrect procurement language related to LACMTA  
            in sections of the Public Contract Code pertaining to the  
            Sacramento Regional Transit District and to the San Diego  
            Metropolitan Transit Development Board.

          2.Authorizes the governing board of LACMTA to delegate to  
            management bid protest hearings, certain powers related  
            to eminent domain, and the approval of contracts, except  
            for labor contracts.

          This bill:

          1.Deletes the incorrect reference to LACMTA in procurement  
            law related to the San Diego Metropolitan Transit  
            Development Board and the Sacramento Regional Transit  
            District. 

          2.Authorizes the governing board of LACMTA to delegate to  
            management, under terms established by the board, the  
            preparation of various supporting documents and findings  
            related to bid protests, hearings, actions required  
            during natural disasters, certain eminent domain  
            procedures, and related ministerial functions.

          3.Authorizes LACMTA to purchase supplies, equipment, and  
            materials by public internet auctions.

          4.Authorizes LACMTA to enter into cooperative procurement  
            agreements with a federal, state, or local public entity.  


          5.Increases the minimum bid threshold from $2,500 to $3,000  
            before triggering the requirement for LACMTA to obtain at  
            least three quotes prior to making an expenditure.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/17/09)

          Los Angeles County Metropolitan Transportation Authority  
          (source) 

           ARGUMENTS IN SUPPORT  :    According to the source, the  







                                                               AB 1471
                                                                Page  
          3

          changes are technical, aside from the authority to  
          participate in internet auctions and to engage in joint  
          procurements. The authorization to participate in internet  
          auctions is for the procurement of equipment. The  
          authorization for entering into joint procurements  
          arrangements with other public agencies is a frequent  
          practice among public transit agencies. Large joint  
          procurements typically reduce per unit costs to the  
          participating public agencies due to the economy of scale  
          enjoyed by the vendor. 


           ASSEMBLY FLOOR  :  
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Price, Ruskin, Salas, Silva, Skinner,  
            Smyth, Solorio, Audra Strickland, Swanson, Torlakson,  
            Torres, Torrico, Tran, Villines, Yamada, Bass
          NO VOTE RECORDED:  Fuentes, Nava, Saldana


          JA:nl  8/19/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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