BILL NUMBER: SB 1341	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 15, 2010
	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  , except as to contracts for
professional services involving private architectural, landscape
architectural, engineering, environmental, land surveying, or
construction management as defined in Sections 4525 and 4529.10 of
the Government Code,  do any of the following in facilitating
contract awards to small businesses:
   (i) Provide for a small business preference in construction, 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   bids. 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 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.