BILL NUMBER: SB 1341	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2010

INTRODUCED BY   Senator Price

                        FEBRUARY 19, 2010

   An act to amend Section 130232 of the Public Utilities Code,
relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1341, as amended, Price. Los Angeles County Metropolitan
Transportation Authority: contracting.
   The County Transportation Commissions Act creates county
transportation commissions or authorities in Los Angeles, Orange,
Riverside, San Bernardino, and Ventura counties, with specified
powers and duties. Existing law, with respect to those agencies,
generally requires purchase of all supplies, equipment, and
materials, and the construction of all facilities and works, when the
expenditure exceeds $25,000, to be by contract let to the lowest
responsible bidder  , or, in certain cases, to the best value
proposer  . Existing law contains various alternative provisions
applicable solely to the Los Angeles County Metropolitan
Transportation Authority.
   This bill would enact additional provisions applicable to the Los
Angeles County Metropolitan Transportation Authority relative to
preferences in contracting for small business enterprises, as
defined.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  Section 130232 of the Public Utilities Code is amended
to read:
   130232.  (a) Except as provided in subdivision (f), purchase of
all supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
   (b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars ($1,000),
but not twenty-five thousand dollars ($25,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
   (c) Where the expenditure required by the bid price is less than
fifty thousand dollars ($50,000), the executive director may act for
the commission.
   (d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
   (1) Cash.
   (2) A cashier's check made payable to the commission.
   (3) A certified check made payable to the commission.
   (4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
   (e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
   (f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
   (1) The contract shall be let to the lowest  responsive and
 responsible bidder or, in the authority's discretion, to the
 responsible bidder   person  who submitted
a proposal that provides the best value to the commission on the
basis of the factors identified in the solicitation when the purchase
price of all supplies, equipment, and materials exceeds one hundred
thousand dollars ($100,000). "Best value" means the overall
combination of quality, price, and other elements of a proposal that,
when considered together, provide the greatest overall benefit in
response to requirements described in the solicitation documents. The
contract shall be let to the lowest responsive and 
responsible bidder when the purchase price of the construction of all
facilities exceeds twenty-five thousand dollars ($25,000).
   (2) The authority shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds three thousand
dollars ($3,000), but not one hundred thousand dollars ($100,000).
   (3) The authority may purchase supplies, equipment, and materials
from a public auction sale, including public auctions held via the
Internet, using the procedures established for all other participants
in the public auction.
   (4) The authority may participate in a procurement agreement
involving other public entities that is identified by a procuring
public entity or entities as a cooperative procuring agreement from
which other public entities may make purchases or enter into
contracts, and the authority may procure, and enter into contracts
for, items purchased pursuant to that procurement agreement,
notwithstanding that the authority may not be the procuring public
entity, provided the procurement agreement is awarded or entered into
by either of the following:
   (A) One or more public entities or an organization of public
entities, which may include the authority.
   (B) A federal, state, or local public entity.
   (5) (A) Notwithstanding any other provision of law requiring the
authority to award contracts to the lowest  responsive and 
responsible bidder  or best value proposer, on contracts above
one hundred thousand dollars ($100,000)  , the authority may do
any of the following in facilitating contract awards to small
businesses:
   (i) Provide for a small business preference in construction, 
design-build,  the procurement of goods, or the delivery of
services  where responsibility and quality are equal
 . The preference to a small business shall be  up
to  5 percent of the lowest  responsive and 
responsible bidder  or best value proposer  meeting
specifications  that provide for small business participation
 .
   (ii) Establish a subcontracting participation goal for small
businesses on contracts  financed with nonfederal funds  and
grant a preference  , up to a maximum  of 5 percent
 , to those bidders who meet   to the lowest
responsive and responsible bidders or best value proposers who meet
 the goal.
   (iii) Require bidders  and proposers  to make a good
faith effort, in accordance with the criteria established pursuant to
subparagraph (B), prior to the time bids  or proposals  are
opened, to comply with the goals and requirements established by the
authority relating to participation in the contract by small
businesses.
   (B) The following shall apply to bidders  and proposers 
under this paragraph:
   (i) The bidder  or proposer  attended any presolicitation
or prebid meetings that were scheduled by the authority to inform
all bidders  and proposers  of the small business enterprise
program requirements for the project for which the contract will be
awarded. The authority may waive this requirement if it determines
that the bidder  or proposer  is informed as to those
program requirements.
   (ii) The bidder  or proposer  identified and selected
specific items of the project for which the contract will be awarded
to be performed by small business enterprises to provide an
opportunity for participation by those enterprises.
   (iii) The bidder  or proposer  advertised, not less than
10 calendar days before the date the bids  or proposals  are
opened, in one or more daily or weekly newspapers, trade association
publications or trade-oriented publications, trade journals, or
other media, specified by the authority for small business
enterprises that are interested in participating in the project. This
clause applies only if the authority gave public notice of the
project not less than 15 calendar days prior to the date the bids
 or proposals  are opened.
   (iv) The bidder  or proposer  provided written notice of
his or her interest in bidding  or submitting a proposal  on
the contract to the number of small business enterprises required to
be notified by the project specifications not less than 10 calendar
days prior to the opening of bids  or proposals  . To the
extent possible, the authority shall make available to the bidder
 or proposer  not less than 15 calendar days prior to the
date the bids  or proposals  are opened a list or a source
of lists of enterprises which are certified by the authority as small
business enterprises.
   (v) The bidder  or proposer  followed up initial
solicitations of interest by contacting the enterprises to determine
with certainty whether the enterprises were interested in performing
specific items of the project.
   (vi) The bidder  or proposer  provided interested small
business enterprises with information about the plans,
specifications, and requirements for the selected subcontracting or
material supply work.
   (vii) The bidder  or proposer requested assistance from
small business community organizations; small business contractor
groups; local, state, or small business assistance offices; or other
organizations that provide assistance in the recruitment and
placement of small business enterprises, if any are available.
   (viii) The bidder    or proposer  negotiated in
good faith with the small business enterprises, and did not
unjustifiably reject as unsatisfactory bids  or proposals 
prepared by any small business enterprises, as determined by the
authority.
   (ix) Where applicable, the bidder  or proposer  advised
and made efforts to assist interested small business enterprises in
obtaining bonds, lines of credit, or insurance required by the
authority or contractor.
   (x) The bidder's  or proposer's  efforts to obtain small
business enterprise participation could reasonably be expected by the
authority to produce a level of participation sufficient to meet the
goals and requirements of the authority.
   (C) "Small business enterprise" as used in this paragraph, means a
business enterprise consistent with the following:
   (i) The business enterprise is classified as a small business
under United States Small Business Administration rules and meets the
current small business enterprise size standards found in 13 CFR
Part 121 appropriate to the type of work the enterprise seeks to
perform.
   (ii) Small business enterprise eligibility shall be denied to any
concern or group of concerns controlled by the same individual or
individuals  which   that  has average
annual gross receipts greater than  ____ million dollars
($______)   twenty-two million dollars ($22,000,000)
 over the previous three fiscal years.
   (iii) Small business enterprise eligibility shall be denied to any
concern or group of concerns owned and controlled by any person
whose combined net worth exceeds  ____ ($____)  
one million dollars ($1,000,000)  , excluding the value of the
owner's personal residence  or residences  .
   (D) The authority  shall   may  adjust
the  dollar  amounts in clauses (ii) and (iii) of
subparagraph (C) from time to time for inflation.