BILL NUMBER: SB 1341	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 11, 2010
	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 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 construction component of a
design-build team  , the procurement of goods, or the delivery
of services. The preference to a small business shall be 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 of 5 percent 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   a business enterprise that  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 that has average annual gross receipts greater than
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 may adjust the dollar amounts in clauses (ii)
and (iii) of subparagraph (C) from time to time for inflation.